shipping & freighting

16

Upload: nation-publishing-co-limited

Post on 02-Apr-2016

223 views

Category:

Documents


1 download

DESCRIPTION

A 16-Page special on Shipping & Freighting in Barbados.

TRANSCRIPT

Page 1: Shipping & Freighting
Page 2: Shipping & Freighting

2. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

FROM THE CHAIR you’re sittingon, the raw materials used toproduce this publication you arereading; the coffee, tea or beverageyou drank this morning, the clotheson your back, to the very vehicleyou drive were all made possiblefor you to enjoy and utiilise thanksto the shipping industry.

The truth is, we live in a globalsociety where we depend heavilyon each other. This global society is supported by a global economy,and that economy would never beable to function if it were not forships and the shipping sector. Both cargo and cruise ships play a significant role in the kind oflifestyles we live and how we perform our daily tasks and roles.

Therefore, the importance of theshipping and freighting industry cannever be downplayed or overlooked.

When one considers that Barbados’food bill is in excess of awhopping $700 million andthat the fuel import bill isover $800 million, we get aclear picture of the island’soverall import bill and therole shipping plays in theprovision of food and services.

Up to 2008, the importationof merchandise was over US$1.6 billion (BDS$3.2 billion) andthat of commercial services was overUS$636 million (BDS$1.27 billion).Exports were US$359 million (BDS$718million) for merchandise and US$1.41 billion(BDS$2.82 billion) for commercial services.These figures have risen steadily overthe past six years.

The Bridgetown Port is the major port ofentry for approximately 90 per cent of the

goods used in the manufacturing and retailsectors in Barbados. A major part of itsresponsibility is dedicated to supportingbusinesses in the import/export trade via the handling of cargo within the Deep WaterHarbour, processing and storage of associated data and documentation, and statistical reporting.

The Barbados Port Inc. also provides anumber of services, including the receipt anddelivery of cargo, the utilising of a variety of

cargo handling equipment, the storage ofcargo, the packing and unpacking of

containers; the rental of cargohandling equipment and thesorting of cargo accordingto special requirements

of the consignee.In addition, the Bridgetown

Port is the home portinghub for several vesselsconducting full and partialexchanges of passengers.The Terminal OperationsDepartment provideslabour for the handling of luggage and ship stores.In this 16-Page feature we take a broad look

at the shipping andfreighting industry, both

globally and nationally.

Carmichael House, Carmichael, St. George, Barbados, W.I.Tel: (246) 426-2417 I Fax: (246) 435-1847Email: [email protected] I Website: www.mgassociates.net

Page 3: Shipping & Freighting

MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 3

MODERN CONTAINER shipping celebrates its 58th anniversary this year.Almost from the first voyage, the use of this method of transport for goodsgrew steadily and in just close to six decades, container ships now carry over65 per cent of the value of goods shipped via sea.

According to the World Shipping Council, the idea of using some type of shipping container was not completely novel. Boxessimilar to modern containers had been used for combined rail- and horse-drawn transport in England as early as 1792. History also shows that theUnited States government used small standard-sized containers during theSecond World War, which proved a means of quickly and efficientlyunloading and distributing supplies. However, in 1955, Malcom P. McLean, atrucking entrepreneur from North Carolina, in the United States, bought asteamship company with the idea of transporting entire truck trailers withtheir cargo still inside. He realised it would be much simpler and quicker tohave one container that could be lifted from a vehicle directly on to a shipwithout first having to unload its contents.

His ideas were based on the theory that efficiency could be vastlyimproved through a system of “inter-modalism”, in which the same container, with the same cargo, could be transported with minimuminterruption via different transport modes during its journey. Containerscould be moved seamlessly between ships, trucks and trains. This wouldsimplify the whole logistical process. Over the next close to 60 years, theimplementing of this idea led to a revolution in cargo transportation andinternational trade.

People have been trading with each other, even between nations and acrossoceans, for thousands of years – long before containerisation.

Think of the great seafaring peoples the Phoenicians, Egyptians, Greeks,Romans, Portuguese, Spanish, British and many more, who sailed the worldlooking for new treasures. They brought home and traded food, jewels andmaterials that their countrymen had never before seen but the process wasnever easy. The loading and unloading of individual goods in barrels, sacks and wooden crates from land transport to ship and back

again on arrival was slow and cumbersome. Nevertheless, thisprocess, referred to as break-bulk shipping, was the onlyknown way to transport goods via ship up until the secondhalf of the 20th century.

The loading and unloading of the ship was very labourintensive. A ship could easily spend more time in port than at sea while dockworkers manhandledcargo into and out of tight spaces below decks. Therewas also high risk of accident, loss and theft.

There were some basic systems in place to makethe process more efficient, such as the use of rope forbundling timber, sacks for carrying coffee beans, andpallets for stacking and transporting bags or sacks.However, industrial and technological advances,such as the spread of the railways in the 18thcentury, highlighted the inadequacies of the cargoshipping system. The transfer of cargo fromtrains to ships and vice versa became a real problem.

Before the container shipping industryemerged, boxes of various types and sizeshad often been used in transporting cargo simply because theywere the logical way to move things enmasse from one location to another.

Today, thanks to modern technologywhich also allows one to track their containerised goods and items,containerised shipping has become a much easier and faster way of moving bulk items from one location to the other in a more efficient and effective way.

HORSES arenot needed asa means forshipping. (GP)

Email: [email protected]

Page 4: Shipping & Freighting

4. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

• Ensuring a berth for the incoming ship• Arranging for the pilot and the tugs if necessary• Drawing up the documents for the customs and

harbour services• Arranging for the necessary ship fresh water

and provisions• Arranging for the necessary doctor for the crew

if there is need for medical assistance• Arranging for storage bunkers if these are needed• Arranging for the necessary repairs• Conveying instructions to and from the ship’s

owner• Organising the supply, transport and the handling

of the goods• Organising the necessary contacts with the

stevedores• Collecting freights, cargoes• Contacting shippers and the receivers of the goodsIn the case of damage to cargo or the ship, the

shipping agent also makes the necessary arrangements(at the request of the ship’s master or owner) with theinsurance company, and for nautical inspections and theservices of experts or surveyors.

THE ROLE OF A shipping agent is crucial to the operationsof any cargo vessel or cruise liner docking at any port aroundthe world.

A shipping agenct or shipping agency is the designatedperson or agency held responsible for handling shipments and cargo at ports and harbours worldwide on behalf ofshipping companies.

The appointment of an agent in every foreign port is therefore essential to ensuring that the visit to the port will go smoothly.

Prior to a ship’s arrival in port, the shipping agent’s dutiesbegin with pre-arrival planning for the ship’s port call. Thesearrangements begin when the agent notifies the port of theship’s pending arrival. Other arrangements centre on theship’s cargo manifest, with particular attention to the goodsto be offloaded during the port call if it is a cargo ship.

The ship’s agent notifies consignees of the date and timethat the ship will discharge cargo or bring cruise shippassengers, and if the shipping contract requires notice. Theship’s agent notifies or advises the captain on conditions andlocal requirements. He or she also arranges for tugs to assistwith docking and undocking.

It is also the duty of a shipping agent to advise localcustoms personnel of the arrival of freight, so the freight canclear customs with dispatch. The shipping agent also arrangesfor booked services such as longshoremen to unload cargoand for trucks to move containerised freight from the portto the next mode of transportation or the final destination.

If the ship has inspections or certifications due when theship is in port, the shipping agent notifies the local

government authority or schedules the inspection. The shipping agent also arranges any required repairs.

When the ship has cargo to be reloaded following cargodischarge, the shipping agent ensures the cargo is presentat the port and, insofar as possible, ensures it’s as described on the cargo manifest.

He or she checks the conditions of transportationspecified on the bill of lading to guarantee the cargo reachesits destination by this method of travel, and that the cargo isto travel on a particular ship. The ship’s agent also verifies thecondition of the cargo and the projected date of arrival atthe final destination.

Following the completion of cargo and port operations,the agent confers with the ship’s master to arrange fordeparture from the port.

The agent makes departure arrangements with the ship’s master to obtain pilots and exchange the results of inspections and certifications with the shipmanagement company.

Following departure, the agent collects and disburses funds due from consignees who received freight and anypenalties from the ship management company for damage or late delivery.

Page 5: Shipping & Freighting

MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 5

INTERNATIONAL LINER SHIPPING is today a sophisticated network of regularly scheduledservices that transports goods from anywhere in theworld to anywhere in the world at low cost and withgreater energy efficiency than any other form of international transportation.

According to a leading financial services company:“Advancing globalisation, more flexible tax regimesand an increasingly mobile workforce are creatingopportunities and challenges for the shippingindustry. New corporate strategies and processes arerequired to deal with an industry which is beingreshaped through market consolidation and shifts in the balance of world trade. “Sustained profitabilityin many sectors, increasingly international operationsand ever more sophisticated tax authorities areleading shipping companies to look at effective waysto align their corporate, operational and tax structures.

“Still considered the most efficient mode of transport for goods, liner shipping continues to be the preferred mode of transport for goods –from vehicles to building equipment, furniture, largeappliances and more.”

In one year, a single large container ship mightcarry over 200 000 container loads of cargo. Whileindividual ships vary in size and carrying capacity,many container ships can transport up to 8 000containers of goods and products on a single voyage.Similarly, on a single voyage, some car carrier shipscan handle 7 600 cars. It would require hundreds of freight aircraft, many miles of rail cars, and fleets of trucks to carry the goods that can fit on one largeliner ship.

Recently, two independent sources looked at theeconomic contribution of the liner shipping industryand concluded that it is indeed a global economicengine for two reasons: the significant amount theindustry contributes directly to the global economy,and the role of the industry as a facilitator of economic growth for other industries.

Liner shipping connects countries, markets,businesses and people, allowing them to buy and sellgoods on a scale not previously possible. Today, theliner shipping industry transports goods representingapproximately one-third of the total value of globaltrade. Additionally, as a major global enterprise in its own right, the international shipping industry is responsible for millions of existing jobs and plays a crucial role in stimulating new jobs. It contributeshundreds of billions of dollars to the global economyannually thereby increasing the gross domesticproduct in countries throughout the world.Moreover, as the lifeblood of global economic vitality,ocean shipping contributes significantly to international stability and security.

In 2006, former finance and economics editor forthe Economist, Marc Levinson released a bookwhich made the case that the modern globaleconomy would not exist were it not for theintroduction of the container and the liner shippingindustry that moves them. Some of his notableobservations were as follows:

• The container made shipping cheap and changedthe shape of the world economy.

• Consumers enjoy infinitely more choices thanksto the global trade the container has stimulated.

• The ready availability of inexpensive importedconsumer goods has boosted living standards aroundthe world.

• The emergence of the logistics industry has ledto the creation of new and often better-paying jobs in warehousing and transportation.

• The container not only lowered freight bills butsaved time.

LINER SHIPPING CONNECTScountries, markets,businesses and people,allowing them to buy and sellgoods on a scale notpreviously possible. (GP)

Page 6: Shipping & Freighting

6. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

THE BRIDGETOWN HARBOUR, on thenorth-western side of Carlisle Bay, wascompleted in 1961 and since then it has been substantially modernised.

The harbour can accommodate vesselswith a draught of 9.6 metres. It alsoprovides 702 metres of quay space,approximately 829 metres of breakwater,and the berthing facilities for eight vessels of which up to five may be tourist vessels.

Pilotage is compulsory for all vesselsover 1 000 tons entering the harbour. There are two tugs. Tugs are compulsory for vessels over 1 000 tons or 16.8 metresin length.

A 24-hour service is provided for marine as well as cargo handlingparticularly for container vessels.

Facilities at the harbour include acontainer park which can accommodate 3 000 containers. The port has moderncontainer handling equipment includingseven straddle carriers and one gantry crane with a lifting capacity of 40 tons.

There are plans to add a mobile crane to increase and improve the handling ofcontainers. There is also an incinerator forthe disposal of ship generated waste.

Bulk facilities are provided for sugar

– 81 248 ton – and a bulk unloading facilityfor grain – primarily wheat, corn, soya beanmeal – which is capable of receiving andstoring 2 400 tons.

Sixteen refuelling points are providedalong the berth.

In January 1994, the newly refurbishedand exclusive passenger terminal was

officially opened. There are 20 largeduty-free shops with an additional 12 smallcarts and a chattel house village for smallvendors, customs, immigration, health,security and the tourism authority officesare located in the terminal as well as anefficient and modern telephone systemwhich can link passengers to anywhere in the world.

Shallow DraughtProvision has also been made for

a coastal cruise facility and a boat park and haul-out facility at the Shallow Draught area.

An auxiliary schooner and motor vesselruns between Barbados, the Leeward Islandsand Windward Islands and Guyana. Vesselsoperate from the Shallow Draught facilitywhich is 156 metres long with an apron of 15.2 metres and a maximum draught of 6.8 metres.

In its progressive approach to theenvironmental problem facing the regionand the world in general, the port hasinstalled a Hoskinson Pyrolytic Smokelessincinerator for the handling of all garbagefrom ships in an environmentally acceptable manner.

PROVISION HAS BEEN made for a coastal cruise facility and a boatpark and haul-out facility at the Shallow Draught area. (FP)

Page 7: Shipping & Freighting

MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 7

WITH CHRISTMAS just over four months away, thePersonal Effects Shed at the Barbados Port Inc. (BPI) willmove into high gear as thousands of Barbadians visit thisfacility to clear and collect personal barrels and items.

Not everyone is aware of the process involved in collecting barrels. For instance, it is twofold, involvinginteraction with officials of the BPI and the Customs andExcise Department.

As a word of caution, individuals are reminded that thepossession of documents from the relevant shipping agentdoes not mean your barrels or personal effects are readyfor delivery. A call to the BPI should first be made to ascertain their readiness.

Below are steps provided by the BPI to help make theprocess easy and smooth: STEP 1:• PORT CUSTOMER SERVICE BOOTH – CARGO GATEPresent photo identification and fill in an application for aport pass form. This will be issued as long as your personaleffects are ready for delivery.• Only one adult will be allowed to proceed to shed 2 to clear your personal effects/barrels.STEP 2:• BOOTH (A) – CUSTOMS DOCUMENTATIONPresent your documents to the customs officer who willdetermine if your documents are in order and designateyour personal effects for examination.STEP 3:• BOOTH (B) – PORT: BARREL RETRIEVALPresent those documents at Booth (B) to a member of theBPI’s staff, who will identify the location of your barrel andissue an order of retrieval from storage. Your barrel willthen be transferred to the Customs Examination Area.STEP 4:• BOOTH (C) – CUSTOMS EXAMINATIONYou will be called to proceed to the Examination Booth,where the customs officer will conduct the inspection of your barrel or personal effects. There are two forms of customs examination for personal effects – theEnforcement Division examination and the regularexamination. These two examination processes change thefirst come, first served system, as the Enforcement Divisionexamination requires a longer time period. The customsofficer designates the type of examination for eachcustomer.STEP 5:• BOOTH (D) – CUSTOMS ASSESSMENTAfter the examination of your barrel, your stampeddocuments must be taken to the Assessment Booth at Customs Booth (D), where the relevant duties will be tallied by the attending customs officer.STEP 6:• BOOTH (E) – CUSTOMS CASHIERCustomers then proceed to the Cashier’s Booth at theCustoms Booth (E), where the assessed duties are paid.STEP 7:• BOOTH (A) – CUSTOMS DOCUMENTATIONYour documents must now be presented again to thecustoms officer at Booth (A) who will issue an “Exit Note”which denotes compliance with all regulations andcompletion of the clearance process. Your barrel is nowcleared for delivery.STEP 8:• BOOTH (F) – PORT: GATE PASSCustomers should then proceed to Booth (F) where BPIstaff will issue a gate pass to enable you and your personaleffects to exit the port through the cargo gate.

REMEMBER TO CARRY all necessary documents to acquire your goods when they arrive, soas to avoid any back and forth. (GP)

Tel: 435-2826 | 435-2827 | 435-5165Email: [email protected]: [email protected]

Web: www.calvinalkins.comWeb: [email protected]

Gladstonia Building, Fontabelle, St. Michael BB11149

Page 8: Shipping & Freighting

WHEN A BUSINESS decides to export its products it soon realises it has to dealwith the numerous barriers that have to be overcome to ship the product to thecustomer. In many cases a business will look to a freight forwarder, that canmanage these obstacles.

The services of a freight forwarder can vary between different companies butthe main function of the freight forwarder is to act as an intermediary between the client who is hiring it and various transportation services that areinvolved in getting the product overseas to the customer.

Depending on the final destination and the nature of the itemsshipped, there may be many transportation companiesinvolved in the movement of the items from the supplier tothe customer. The freight forwardermay have to deal with many export and importissues that could be involved in the movement ofthe goods.

The freight forwarder is hired to get the product to the customer by a specific date and in an undamaged state. Thefreight forwarder will provide the client insuranceservices to ensure that if the items do arrivedamaged, they will be reimbursed and not liable forthe damages.

Helping clients to package their products forexport, providing the correctlabelling and storage space areroles the freight forwarder willalso perform.

Documentation isimportant for the shipmentof an item being sentoverseas. There are anumber of documents thatthe freight forwarder needsto prepare for the shipmentthat requires specialistknowledge, including:

• The bill of lading(BOL) – The BOL is acontract between the ownerof the goods and the carrier. There aretwo types of BOL: a straight bill oflading which is non-negotiable and, anegotiable or shipper’s order bill of lading.The negotiable BOL can be bought, sold, ortraded while the goods are in transit. Thecustomer will usually need an original asproof of ownership to take possession ofthe goods.

• Commercial invoice – The invoice isthe bill for the goods from the seller to thebuyer. It can be used to determine the truevalue of goods when assessing the amount of customs duty.

• Certificate of origin (COO) – TheCOO is a signed statement which identifiesthe origin of the export item.

• Inspection certificate – This documentmay be required by the customer tocertify the goods have been inspected or tested and the quality of the goods is acceptable.

• The export licence is a governmentdocument that authorises the export ofgoods in specific quantities to a specificdestination.

Companies looking to export items can use freight forwarders to not only save time and effort but to ensure that the goods arrive at the customer’s site on time and without incident.

A freight forwarder can provide the exporter with all the necessarydocumentation as well as liaise withthe transportation companies required to get the items to the customer.

Likewise the customs broker isprimarily the agent for the importer who employs him. He is frequently theimporter’s only point of contact with theCustoms and Excise Department andadvises on the technical requirements of importing, preparing and filing entrydocuments, obtaining the necessary bonds,depositing import duties, securing releaseof the goods and arranging delivery to the importer’s premises or warehouse.

The broker often consults with the Customs Department to determine theproper rate of duty or basis ofappraisement, and on many occasions, if he is dissatisfied with either rate or value,he will pursue appropriate administrativeremedies on behalf of his importer.

8. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 8

THE FREIGHT FORWARDER mayhave to deal with many exportand import issues involved in themovement of goods. (GP)

CRANES play a major role inthe movement of goods fromone destination to a next. (GP)

DEPENDING ON the finaldestination and the nature ofthe items shipped, there may bemany transportation companiesinvolved in the movement of theitems from the supplier to thecustomer. (GP)

Page 9: Shipping & Freighting

WHEN A BUSINESS decides to export its products it soon realises it has to dealwith the numerous barriers that have to be overcome to ship the product to thecustomer. In many cases a business will look to a freight forwarder, that canmanage these obstacles.

The services of a freight forwarder can vary between different companies butthe main function of the freight forwarder is to act as an intermediary between the client who is hiring it and various transportation services that areinvolved in getting the product overseas to the customer.

Depending on the final destination and the nature of the itemsshipped, there may be many transportation companiesinvolved in the movement of the items from the supplier tothe customer. The freight forwardermay have to deal with many export and importissues that could be involved in the movement ofthe goods.

The freight forwarder is hired to get the product to the customer by a specific date and in an undamaged state. Thefreight forwarder will provide the client insuranceservices to ensure that if the items do arrivedamaged, they will be reimbursed and not liable forthe damages.

Helping clients to package their products forexport, providing the correctlabelling and storage space areroles the freight forwarder willalso perform.

Documentation isimportant for the shipmentof an item being sentoverseas. There are anumber of documents thatthe freight forwarder needsto prepare for the shipmentthat requires specialistknowledge, including:

• The bill of lading(BOL) – The BOL is acontract between the ownerof the goods and the carrier. There aretwo types of BOL: a straight bill oflading which is non-negotiable and, anegotiable or shipper’s order bill of lading.The negotiable BOL can be bought, sold, ortraded while the goods are in transit. Thecustomer will usually need an original asproof of ownership to take possession ofthe goods.

• Commercial invoice – The invoice isthe bill for the goods from the seller to thebuyer. It can be used to determine the truevalue of goods when assessing the amount of customs duty.

• Certificate of origin (COO) – TheCOO is a signed statement which identifiesthe origin of the export item.

• Inspection certificate – This documentmay be required by the customer tocertify the goods have been inspected or tested and the quality of the goods is acceptable.

• The export licence is a governmentdocument that authorises the export ofgoods in specific quantities to a specificdestination.

Companies looking to export items can use freight forwarders to not only save time and effort but to ensure that the goods arrive at the customer’s site on time and without incident.

A freight forwarder can provide the exporter with all the necessarydocumentation as well as liaise withthe transportation companies required to get the items to the customer.

Likewise the customs broker isprimarily the agent for the importer who employs him. He is frequently theimporter’s only point of contact with theCustoms and Excise Department andadvises on the technical requirements of importing, preparing and filing entrydocuments, obtaining the necessary bonds,depositing import duties, securing releaseof the goods and arranging delivery to the importer’s premises or warehouse.

The broker often consults with the Customs Department to determine theproper rate of duty or basis ofappraisement, and on many occasions, if he is dissatisfied with either rate or value,he will pursue appropriate administrativeremedies on behalf of his importer.

8. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 8

THE FREIGHT FORWARDER mayhave to deal with many exportand import issues involved in themovement of goods. (GP)

CRANES play a major role inthe movement of goods fromone destination to a next. (GP)

DEPENDING ON the finaldestination and the nature ofthe items shipped, there may bemany transportation companiesinvolved in the movement of theitems from the supplier to thecustomer. (GP)

Page 10: Shipping & Freighting

10. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

BARBADOS continues to be a popular destination,attracting more than half a million cruise shippassengers yearly.

Some 517 436 cruise passengers visited the island in 2012, with many making their way through theBridgetown Cruise Terminal.

This facility, which was officially open on January 14,1993, represents a unique structure in private and publicsector cooperation. The Government of Barbadosthrough its representative, the Barbados Port Inc., is thelargest shareholder in the company, holding 30 per centof the shares. The private companies, GoddardEnterprises Limited, Cave Shepherd and CompanyLimited, each hold 20 per cent of the shares, while theremaining 30 per cent are held by the Barbadian public,who subscribed to the public offering at the initial stageof the Bridgetown Cruise Terminal.

Bridgetown Cruise Terminal is the centre for all services provided for the use of cruise passengersand crew members visiting the island. It offers 60 000square feet of space, with 20 000 square feet allocatedto shops, the remainder comprises space for the officeof Customs, Immigration, Port Health, Plant and AnimalQuarantine, Post Office and the Barbados TourismAuthority.

With plans in the pipeline to construct a new multimillion-dollar cruise ship facility called the SugarPoint Cruise Development, Barbados is expected to bebetter positioned as a hub for cruise ship tourism.

According to Government, this project wouldfacilitate the expansion of Barbados’ home portingactivities and open additional opportunities for theprovisioning of goods and services by localmanufacturing and agro-processing businesses.

With millions of dollars in local produce being soldto cruise ships annually, Government officials hold theview that there is great potential to expand this activityto earn more.

Over the past 30-plus years, the cruise industry hasbeen one of the fastest growing areas in the leisuretravel market, with an average growth of 7.2 per centbeing recorded.

BARBADOS is attracting more visitors to its shores via cruises. (GP)

Page 11: Shipping & Freighting
Page 12: Shipping & Freighting

12. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

WITHIN THE freighting and shipping

industry are a number of terms which

are often used.

Whether you are new to the industry

or want to familiarise yourself on shipping

terminology, the words below cover the

terms you ought to know about shipping:

Adjustment – Any discrepancies

between the actual shipment and what is

stated on the bill of lading. These can result

in additional charges from freight carriers.

Agent – A person who transacts

business on behalf of another person

or company with full or limited

decision-making authority.

Axle load – Each freight shipping

transport has a weight limit. The axle load

refers to the weight limit permitted

for each axle over the nation’s highways.

Back haul – The second half of a

carrier’s round trip in which the freight

shipping cost is less than the first half. The

second half can be referred to as the back

haul rate.

Beneficial owner – This is a rail term

that refers to the actual owner of the lading

being shipped.

Bill of lading (BOL) – The bill of

lading or BOL is the contract between

shipper and carrier, broker or agent, that

binds the parties together and defines all

aspects of the freight shipping arrangement,

including what is being shipped, to whom

and more.

Blocking – Also known as bracing,

refers to wood or other supports used

to keep shipments in place on trailers or in

containers.

Blind shipment – When the shipper

and receiver are not aware of one another,

the freight shipment

is called a blind shipment. In such cases, the

bill of lading lists the party that paid for the

shipment as the shipper or receiver of the

freight shipment.

Bogie – This is a rail term that refers to

a frame with wheels on which a container is

mounted for over-the-road transport.

Brokerage licence – A broker gains

this in order to have the ability to make

land, sea and air freight shipping

arrangements.

Bulk freight – Freight that is not

contained within packages or containers

is referred to as bulk freight.

Carrier – A person or company

that transports freight for a fee.

Cartage – A trucking term that

refers to shipping freight within the same

city or area.

Chassis – A rail term that refers to

a frame with wheels and locking devices

to secure a container during shipping.

Classification – A freight classification

assigned to an article for the purpose of

applying transportation charges. This is used

for less than truckload shipments.

Common carrier – A carrier that

can be hired by anyone to transport goods.

Concealed loss – When the recipient

of a package is not able to see damage

to the item(s) until the package is

opened. The damage was not visible

at the time of delivery

Consignee – The receiver of a freight

shipment.

Consolidation – When two or more

shipments are combined to save money

on freight shipping costs.

• Continued on next page.

Page 13: Shipping & Freighting

MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 13

• From Page 12.

Container – A container looks like

a truck trailer with no wheels and is

now among the most common freight

shipping methods in the United States

and abroad. Containers are used for

intermodalshipping and come in standard

sizes to ensure they fit on standard

trucks, rail cars and container ships.

Cross-town – When a container or trailer is

delivered from one railroad as part of the shipping

route, the move is called cross-town shipping.

Cubic capacity – The total freight load capacity

of any truck, train or ship is measured in cubic feet, and

therefore the carrying capacity is known in the industry

as cubic capacity.

Customs broker – A person or company who

is licensed by the United States Treasury Department

to act on behalf of freight importers and exporters

with respect to United States Customs transactions.

Embargo – An embargo is any event that

prevents the freight from being accepted or handled.

Embargo events include floods, tornadoes or

congested highways.

Exceptions – When a problem such as shortage

or damage is noted at the time of delivery, an

exception is noted on the delivery sheet before

it is signed to designate there was a problem with

the shipment.

Gross vehicle weight – The total weight

of the transport and its cargo is called the gross

vehicle weight

Inbound freight – Shipments coming from

vendors to a storage facility.

Interchange of interline – The transfer

of freight from one carrier to another.

Intermodal transportation – When freight is

shipped using two or more modes of transportation.

This typically refers to truck-rail-truck shipments.

Nested – A term used in less than truckload

shipping in which materials are stacked so that one

item goes inside another. Nested freight reduces the

amount of space taken up by the combined freight and

makes LTL shipping more efficient as a result.

Not otherwise indicated – A general class rate

or NOI is assigned to any freight that has no rate listed

in the National Motor Freight Classification.

Tariff – A tariff establishes the cost and contract

of freight shipment for the shipper and the carrier.

Through rate – A through rate applies to the

distance between the point of origin and the delivery

destination.

Time critical – When a freight shipment delivery

is set to the earliest possible time.

Time definite – Time-definite deliveries

guarantee that the delivery will occur on a specific

day or time of day.

Transit time – The total time from pick

up to delivery.

Truckload – A truckload is defined as freight

weighing 23 000 pounds or more or that occupies half

or more than the trailer’s capacity.

Volume rate – A less than truckload term for

rates that are made subject to a minimum weight

of 7 000 pounds or more, or cubic volume exceeding

750 cubic feet.Warehousing – Warehousing refers to the

storage of goods for a specified period of time.

Page 14: Shipping & Freighting

14. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

THANKS TO THE Barbados Port Inc’s (BPI) new webportal, commercial shippers now have the ability to track their shipments in real time.

Launched last September, the new portal providesa user-friendly, in-depth look at the services andoperations of the BPI. Visitors can easily search forinformation on clearing barrels, applying for a portpass and how to be safe and secure while on site. In addition, the web portal incorporates an area forfeedback and links to the various social mediachannels that the BPI utilises.

This new service is just one of many being offeredby the BPI as part of its ongoing plans to streamline operations and ensure effective andefficient customer care service.

In addition to enabling individuals to trackincoming barrels (personal effects), commercialcustomers such as shipping agents can also tracktheir shipments online, as well as securely accessinformation specific to their needs in real time.

At present, interested agents and othercommercial users can apply for login credentials by contacting the BPI’s Management InformationSystems Department.

To complete the process, the following must be carried out:

An email should be sent to one of the followingaddresses requestingaccess:[email protected];[email protected] or [email protected].

On receiving your credentials, you can follow theinstructions provided to change your password. Thisserves to enhance the security measures already in place.

• The next step is to visitwww.barbadosport.com and look for E-Services, located on the far right within the yellownavigation bar.

• Click on Cargo and Container Tracking withinthe E-Services drop down menu. This directs yourbrowser to the services portal.

• As advised, familiarise yourself with the termsand conditions and privacy policy prior to continuing.

• Once you have clicked Container Tracking, youwill be asked to sign in using a username andpassword.

• Submitting your personal username andpassword will allow you to view all informationrelevant to you.

As a commercial user, you will see all activityrelated to your containers, including arrival times,status, updates, and when the containers leave the port.

You will also be given the option within this securearea to generate reports and view only your databaseof information.

With the introduction of the web portal, theprocess of doing business with the BPI has becomemore time-efficient, while supporting the port’s aim to find more sustainable ways of operating.

The E-Services area of the web portal is multi-purpose and has already demonstratedbenefits for both individual and commercial users.

While there will eventually be an operational costfor commercial users, this premium service is presently being offered complimentary while it is still in its introductory phase.

WITH THE ABILITY to monitor theprogress of your belongings over theInternet, it provides a great sense of ease. (GP)

[email protected]

Page 15: Shipping & Freighting

THERE IS LITTLE, if any, dispute about the fact that shipping is the most carbon-efficient mode of transportation. According to a recent report, internationalmaritime shipping accounts for 2.7 per centof annual global greenhouse gas emissions.Shipping also produces fewer exhaust gas emissions – including nitrogen oxides,hydrocarbons, particulates, carbon monoxide and sulfur dioxide – than air or road transport.Here are some other facts:

• A ton of goods can be shipped adistance of 1 598 miles – from Miami toBarbados – while generating fewer carbondioxide emissions than are generated whentransporting the same cargo inland using a truck.

• Similarly, a ton of goods can be movedfrom the port of Ho Chi Minh City, Vietnam,to Tianjin, China, a distance of 3 327kilometres (2 067 miles), generating fewercarbon dioxide emissions than would begenerated if the same goods were truckedfrom Wuhan in Central China to Tianjin, adistance of just 988 kilometres (614 miles).

• The wine industry recently found that a bottle of French wine served in a New Yorkrestaurant had a lower carbon transportationfootprint than a bottle of California wineserved in that restaurant.

• A White Paper released for theTransport Intelligence Europe Conferencestated that researchers conducting anevaluation for the World Economic Forumfound that the entire container voyage fromChina to Europe is equalled in carbon dioxideemissions by about 200 kilometres of long-haul trucking in Europe.

• There has been a substantial reduction in marine pollution over the last 15 years,especially with regard to the amount of oilspilled into the sea, despite a massive increasein world seaborne trade.

The size and global nature of the shipping industry makes it important for the industry to continuously work toreduce its environmental impact, and there is evidence that the industry has madesignificant progress.

A study conducted eight years ago foundthat the fuel efficiency of container ships (4 500 TEU capacity) improved 35 per centbetween 1985 and 2008. Comparisonbetween a modern 12 000 TEU ship built in 2007 and a 1 500 TEU container in 1976 showed the carbon efficiency on a per-mile cargo volume basis had improvedby 75 per cent.

Facts made possible by the WorldShipping Council.

MIDWEEK NATION SPECIAL. WEDNESDAY, AUGUST 6, 2014. 15

Freight Forwarding / Customs Clearance / Cargo InsurancePick-Up & Door Deliveries / Ocean Freight / Warehousing Cargo Consolidation & Deconsolidation / Expedited Air Shipping

crowley.com/barbados

Crowley is Your One-Stop Shipping Solution From Miami and Puerto Rico to BarbadosWhether you’re shopping at retailers – online or in person – or ordering

inventory from your trusted suppliers, count on Crowley to deliver for you.

No matter what you have to ship, big or small, all it takes is one call to get

your shipment moving.

We ship barrels, boxes of all sizes, palletized cargo, furniture, appliances,

building materials and more, up to full containerloads.

For exceptional service, competitive pricing and a hassle-free experience, including easy payment by credit card, contact Crowley today.

Miami: 305-842-2649Puerto Rico: 787-945-7095Barbados: 246-436-6094

Page 16: Shipping & Freighting

16. WEDNESDAY, AUGUST 6, 2014. MIDWEEK NATION SPECIAL

SAFETY at sea is crucial to reducingaccidents when using the sea either forbusiness or pleasure.

Shipping superintendent at the Ministry of International Transport, Walter Best,recently explained that the InternationalRegulations for the Prevention of Collisionsat Sea outlined seven basic guidelines to ensure the safety of people using the seaeither for business, pleasure or generally.

Below are the guidelines:• When at sea, people should pay attention tothe general direction in which boats aregoing to determine if they might collide. Bestsaid: “If you cannot determine if it is safe, justassume that there might be a collision.” • When two boats are on the same tack, orsame general direction and continued sailingmay lead to a possible collision, the windwardboat should keep clear of the leeward boat.

• When two boats are on the opposite tacksor opposite directions and continued sailingmay lead to a possible collision, the boat on the port tack (left) should keep clear of the one on starboard tack (right).• When one boat is overtaking another, thefaster boat must keep clear of the one being overtaken.• Powerboats should give way to boatsdriven by wind (by sail), or manual force(oars). The latter should give way to vesselsout of control, those with limited control,and all fishing boats.• The boat that has the priority for continuedsailing should keep its course and speed, butbe prepared to give way to avoid collisionwith another boat if it does not alter its course in time.• If in doubt, always be the first to give wayfor the sake of safety.

EXERCISING CAUTION when at the sea is imperative, no matter whatthe purpose of the visit. (FP)

www.seafrt.com

Printed and Published by THE NATION PUBLISHING CO. LTD, Nation House, Fontabelle, St Michael, Barbados. Telephone (246) 430-5400