UNIT 2 , LINER SERVICE, TRAMP SERVICES, CLEARING AND FORWARDING AGENTS (C&F), SHIPPING AGENCIES

Shipping services can be primarily classified into two categories first is liner services and second is tramp services.

Liner service

  1. They have fixed / pre-determined schedule.
  2. They have fixed timetable.
  3. Fixed frequency
  4. Carries heterogeneous cargos
  5. Carries manufactured or semi-manufactured goods
  6. Fixed/Named number of ports
  7. Charges: freight rate
  8. Charge basics: per container, per ton
  9. Offering space to all.(common carriers)
  10. Vessels: containers

Tramp services

  1. No fixed or pre-determined schedule
  2. No fixed port
  3. No time table
  4. No regularity of sailing
  5. They carry homogeneous cargos eg. Liquid , grain , coal , mineral etc.
  6. Not a common carrier but I contact carrier or private carrier.
  7. Contract of carriage :charter party
  8. Charter hire basis: lump sump , weight or measurement on per day basis
  9. Changes are called : charter hire
  10. Vessel : tankers(oil) , bulk carriers

Clearing and forwarding agents (c&f)

export import procedures are very complex and time consuming therefore every exporters should avail the survice of clearing and forwarding agent who are expert and well versed with the custom and shipment process.

For smooth and fast shipment of goods, the exporter should appoint competent clearing and forwarding agent who is able to provide the following services

  1. Transportation of goods to dock and arrangement of warehousing at Port
  2. They should provide warehousing facilities before the goods are transported to the dock.
  3. booking of shipping space or air freightening and advise on relative cost of sending goods by sea and air.
  4. Arrangement of loading of goods on board
  5. equipped with information on shipping lines and freight to different destinations and various cargoes payable by exporters.
  6. Obtaining marine insurance policies
  7. Preparation and processing of shipping document, bill of loading dock receipt, export declaration certificate of origin etc.
  8. Forwarding of banking collection papers.

Desirable services

  • Storage facilities abroad at least in major international markets.
  • one of the most desirable service will be if they can trace the goods if shipment goes somewhere else form where it should go , through their international connection.

Freight brokers

Freight broker is a person who assist shipper with freight ready to haul by finding carriers who can who are qualified to haul the load.

Freight broker can run their own business or work for a company , they are responsible for arranging the transportation and tracking of load hauled by freight carriers.

They make easier for the shipper to find reliable careers.

A shipper may not have the experience or time to determine if a carrier can perform the task. So freight brokers is important.

To operate as a freight broker one must obtain licence from FMCSA.

Freight brokers help Motor careers earn more by having readily available loads to haul. availability and reliability are key components here.

Broker Salary has a national average of 42000 US dollars annually according to pay scale.

Shipping agencies

A shipping agency or shipping agent is the designated person or agency held responsible for handling shipment and cargo and the general interest of its customer at ports and harbours worldwide , On behalf of ship owners managers and charterers.

What are the responsibilities of shipping agent?

Fallowing are the responsibilities of shipping agent.

  • Ensuring a berth for incoming ship
  • Arranging for the pilots and tugs if necessary.
  • Drawing of the documents for the custom and harbour service.
  • Arranging for necessary safe fresh water provisions.
  • arranging for the necessary doctor for the crew for any medical emergencies or assistance.
  • Arranging for storage bunker if they needed.
  • Conveying instructions to and from the shipowner.
  • Organising the supply transport and handling of the goods.
  • In the case of damage to cargo or ship the shipping agent also makes necessary arrangement with the insurance company.

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