Introduction to Freight Forwarding Services International Air - PowerPoint PPT Presentation

Introduction to Freight Forwarding Services International Air Freight International Ocean Freight Customs Clearance Wharf & Container Transport Warehousing and Distribution

Introduction to Freight Forwarding and their role. 1. What are INCO Terms and how do they affect shipments. 2. Air, LCL and FCL Shipping Services - the Basics. 3. What you can expect to pay to ship goods. 4. Brief History of Ocean Freight Rates from China to Australia. 5. Co�tai�e� �eights, �oad �est�i�tio�s a�d the �e� �‘ules fo� Chai� of 6. ‘espo�si�ilit��. 7. The Role of the Australian Customs and Border Protection Service. 8. The Role of the Australian Taxation Office and GST 9. The Role of DAFF and Biosecurity Risk. 10. Customs and DAFF Documentation Requirements. 11. Critical Milestones and Early Documents. 12. Timeline for Import Processing and Milestones. 13. “hippi�g o� Pallets ��s “hippi�g Loose Cartons 14. Insurance and Packaging. 15. Q & A Time. Logistics Solutions that save you time and money.

Introduction to Freight Forwarding Services  Co-ordinate all the functions involved in a door to door movement into 1 seamless transaction.  Manage the transitions between multi-modes of transport and complete each milestones on time.  Provide Air and Ocean Freight Services  Arrange Customs Clearance and Quarantine Formalities  Provide Wharf and Container Transport Services to Door  Container Packing and Unpacking options.  Short and Long Term Storage  Warehousing and Distribution Services, including National Transport  Non Principles - Do not own ships or aircraft and offer a range of service and price point options based on Importers and Exporters Needs. Logistics Solutions that save you time and money.

First Steps  Chosen your product  Sourced a supplier  Time to negotiate price and discuss INCOTERMS. ( International Commercial Terms) Logistics Solutions that save you time and money.

INCOTERMS of Trade for International Transactions EXW – Ex Works (named place of delivery) The Seller makes the goods available at his/her premises. The buyer is then responsible for all costs through to their final Destination. FCA - Free Carrier (named place of delivery) The seller deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier. FAS – Free Alongside Ship (named port of shipment) The seller delivers when the goods are placed alongside the buyer's vessel at the named port of shipment. The buyer is then responsible for all costs through to their final Destination FOB – Free on Board (named port of shipment) The seller is responsible for all costs to load the goods onto a aircraft or vessel. The buyer is then responsible for all costs through to their final Destination . CFR – Cost and Freight (named port of destination) Seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel. Insurance for the goods is NOT included. This term is formerly known as CNF (C&F, or C+F). CIF – Cost, Insurance and Freight (named port of destination) Exactly the same as CFR except that the seller must in addition procure and pay for the insurance. Maritime transport only. CPT – Carriage Paid To (named place of destination) The seller pays for carriage. Risk transfers to buyer upon handing goods over to the first carrier at place of shipment in the country of Export. The buyer is then responsible for all costs through to their final Destination. CIP – Carriage and Insurance Paid to (named place of destination) The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier. CIP is used for Air Mode & CIF is used for Sea Mode.. DAT – Delivered at Terminal (named terminal at port or place of destination) This term means that the seller covers all the costs of transport (export fees, carriage, insurance, and destination port charges) and assumes all risk until after the goods are unloaded at the terminal.[3] “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail o r air cargo terminal.[4] The buyer covers the cost of transporting the goods from the terminal or port to final destination and pays the import duty/taxes/customs costs. DAP – Delivered at Place (named place of destination) Can be used for any transport mode, or where there is more than one transport mode. The seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving conveyance, at the named place. Duties are not paid under this term (An important difference from Delivered At Terminal DAT, where the seller is responsible for unloading.) DDU – Delivered Duty Unpaid (named place of destination) This term means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The seller pays all costs to the buyers door excluding Duties, Taxes and other Customs and DAFF Expenses. DDP – Delivered Duty Paid (named place of destination) This term means that the seller delivers the goods to the buyer to the named place of destination in the contract of sale. The seller pays all costs to the buyers door including Duties, Taxes and other Customs and DAFF Expenses. This term is often used in place of the non-Incoterm "Free In Store (FIS)".

Responsibilities of the Buyer & Seller under agreed INCOTERMS Loading on Carriage Export Carriage to Unloading of Unloading in Loading on Carriage to Import Incoterm vessel in (Sea/Air) to customs port of truck in port Insurance port of truck in port place of customs Import taxes 2014 port of port of declaration export of export import of import destination clearance export import EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer FCA Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer FAS Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer FOB Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer CPT Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer CFR Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer CIF Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer CIP Seller Seller Seller Seller Seller Seller Buyer/Seller Buyer/Seller Buyer Buyer Buyer DAT Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer DAP Seller Seller Seller Seller Seller Seller Seller Seller Seller Buyer Buyer DDP Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Logistics Solutions that save you time and money.

The purpose of INCOTERMS is to clearly define the individual responsibilities of the Buyer and the Seller. This is particularly important when referring to insurance claims for loss, damage and pilferage of goods, defining where the event occurred and who is the responsible party. Logistics Solutions that save you time and money.

CF‘ ��s FOB Te��s – Which works best ? CFR - Cost & Freight FOB – Free on Board  Seller pays all origin charges and Taxes.  Seller pays all origin charges and Taxes to the port or origin  The Seller arranges the freight to named destination port.  The Buyer is responsible for all costs to the final destination.  The goods are not insured.  The buyer uses the freight forwarder of their  The Buyer is responsible for providing a choice, retaining control over the routing and complete set of documentation for Customs destination costs. Clearance and DAFF Assessment  The freight forwarder arranges all shipping  The Buyer has no control over the vessel documentation , Customs and DAFF service and routing. compliance.  The Buyer has no control over the destination  Shipment Status and Critical Dates should be charges incurred. communicated to the Buyer Daily.  THE SELLERS JOB IS COMPLETED ONCE  YOUR FREIGHT FORWARDERS JOB IS THE SHIPMENT HAS BEEN DELIVERED COMPLETED ONCE THE GOODS ARE TO THE FORWARDER ( LCL ) or PORT DELIVERED TO YOUR DOOR. (FCL ) Logistics Solutions that save you time and money.

Air Freight  All Charges are based on a Chargeable Kilo of Freight  Volumetric Conversion for Airfreight 1m3 = 167 kilograms  A much faster form of Transport with lower damage rates : 3 – 5 working days door to door ( not the same time as the flight takes )  Expensive when compared to LCL and FCL shipments  Best suited to Manufacturing Plant Spares, Mining Equipment, Perishable Cargo, High Value Cargoes and Samples  Direct and Deferred services available at different price points. Logistics Solutions that save you time and money.