Chapter 5:

FREIGHT FORWARDING
OPERATIONS-
PROCEDURE &
DOCUMENTATION
 AGENDA

01 Freight forwarding 02 Documentations related to

Freight forwarding
operations
operations
 TARGET

1. Understanding of definition and classification of Freight

forwarding
2. Sea freight forwarding operation
3. Import Export forwarding operation process at the terminal
4. All documents related to Freight Forwarding operation

3
5.1. Freight forwarding operations
5.1.1. Freight forwarding definition

The freight forwarder is the party who ensures that internationally traded goods move from point of
origin to point of destination to arrive:
✓ at the right place
✓ at the right time
✓ in good condition
✓ at the most economical cost

 Fast time delivery

Requirement  Good quality in freight forwarding.
 Low delivery cost
5.1. Freight forwarding operations
5.1.2. Freight forwarding classification

Modes of
transport

Inland waterway Multimodal

Seafreight Airfreight Railfreight Roadfreight
freight freight
forwarding forwarding forwarding forwarding
forwarding forwarding

Operation Characteristics
range

International Domestic Private Professional

freight freight freight freight
forwarding forwarding forwarding forwarding
5.1. Freight forwarding operations
5.1.3. Freight forwarding operation
- Freight forwarding operation includes all professional activities which happen before, during and after
the transportation process, performed by the seller or the buyer in order to deliver the goods or service(s) to
the receiver(s).
5.1.3.1 – Seafreight forwarding operation process:
Export Sales contract

Payment confirmation

Good preparation

Related documents preparation

Export license applying

Export customs procedures

Export document arrangement & send to importer

5.1. Freight forwarding operations
5.1.3. Freight forwarding operation
5.1.3.2 – Import-Export forwarding operation process at the terminal

❖ Goods preparation for transportation & delivery to buyer/receiver.

Before ❖ Inland transportation (Terminal – Warehouse / Warehouse – Terminal)

➢ Loading / Unloading / Warehousing

➢ Customs procedures for export / import.
➢ Goods delivery to the terminal / the carrier / the importer.
At the ➢ Goods receipt from the terminal /the carrier / the exporter.
terminal
➢ All related documents arrangement
➢ Following & monitoring the transportation process.
➢ Following transshipment process at transit port (if any)

After ✓ Payment arrangement for all costs, charges & solving any arising issues (if any).
5.1. Freight forwarding operations
5.1.3. Freight forwarding operation
5.1.3.2 – Import-Export forwarding operation process at the terminal
 Export forwarding process (for export goods storage at the terminal):

After delivery goods to the terminal

Keep tracking
Receive Bill Make payment
Buy Insurance for the
of Lading Inform the for all costs &
for the shipped transportation
from the buyer about charges to the
goods (if process &
carrier / agent this delivery. terminal &
necessary) solve problem
of the carrier. related parties.
(if any)
5.1. Freight forwarding operations
5.1.3. Freight forwarding operation
5.1.3.2 – Import-Export forwarding operation process at the terminal
 Import forwarding process (for import goods storage at the terminal):

Preparation for goods receipt

1 2 3 4 5
Contact with the
Contact with the
Receive Arrival Preparation Making Import terminal for
carrier / agent of
Notice from the for payment & customs unloading/
the carrier for the
carrier receive related clearance for warehousing/
exact ETA of the
(shipping line) documents the shipment. forwarding
vessel.
services
5.1. Freight forwarding operations
5.1.3. Freight forwarding operation
5.1.3.2 – Import-Export forwarding operation process at the terminal

Unloading goods from vessel

1 2 3 4
Basing on the Tally
+ Proceed to unload the Sheet, R.O.R.O.C. will
- Cargo Manifest & + P.I.C of the terminal
goods from vessel. be made by the
Stowage Plan will be & P.I.C of the vessel
+ During the unloading terminal when
provided to the will check if any loss
process, both sides will unloading process
terminal before or damage happened
check & make Tally finished with
unloading. before unloading.
Sheet. confirmation from both
sides.
5.1. Freight forwarding operations
5.1.3. Freight forwarding operation
5.1.3.2 – Import-Export forwarding operation process at the terminal

Delivery goods to the importer

1 2 3 4
After receving
The importer After getting D/O With “Goods
Notice of
then settles all & receipts from delivery note”,
Arrival, the
charges arising (2), the importer the importer can
importer will
for unloading, can be able to get receive the goods
exchange B/L to
warehousing at “Goods delivery & arrange import
D/O: Delivery
the terminal. => note” from the customs
Order for goods
Get the receipts. terminal. clearance.
receipt.
5.2. Documentations related to Freight forwarding operations

Main documentations

✓ Booking note ✓ Certificate of Origin

✓ EIR: Equipment Interchange Receipt ✓ Certificate of Inspection
✓ Drop-off confirmation: Phiếu hạ bãi chờ xuất tàu ✓ Fumi/ Health Certificate
✓ Bill of lading ✓ Cargo Manifest
✓ Stowage plan: Sơ đồ xếp hàng ✓ Arrival Notice
✓ Packing list ✓ Delivery Order
✓ Commercial Invoice
✓ Pro-forma Invoice
5.2. Documentations related to Freight forwarding operations
5.2.1. Commercial Invoice

Commercial Invoice must be issued by

the benificary of a letter of credit
addressed to the applicant/ importer of
the goods. Include detail of goods,
description, stating prices, term,…
5.2. Documentations related to Freight forwarding operations
5.2.2. Pro-Forma Invoice

▪ This is a price quotation by the seller/exporter to a potential buyer/importer, it gives the details of goods and
other terms and conditions of sale of the goods.
▪ The pro-forma invoice can serve various purposes for the buyer/ importer, that is, to apply for import
license, and can be used to tender for an export contract and so on.
▪ If the buyer/importer accepts the quotation, he will place a firm order and it will be temporarily considered
as a “sale contract”. A commercial invoice will be sent later.
▪ Pro-Forma Invoice is not used for payment purposes.
 5.2. Documentations related to Freight forwarding operations
5.2.3. Packing list
➢ A packing list is a document used in
international trade. It provides the exporter,
international freight forwarder, and ultimate
consignee with information about the shipment,
including how it's packed, the dimensions and
weight of each package, and the marks and
numbers that are noted on the outside of the
boxes.
➢ It is often required by the customs authorities to
facilitate spot checks or thorough investigation.
It does not necessarily give details of the cost or
the price of the goods.
5.2. Documentations related to Freight forwarding operations
5.2.4. Certificate of origin

❖ This is a signed declaration stating the

country of origin of goods & the signature
and seal or stamp of certifying authority.
C/O is required for various purposes:
customs, assessing import duty.
❖ C/O has to be authenticated by a Chamber
of Commerce of exporter’s country or as
required by Letter of Credit.
5.2. Documentations related to Freight forwarding operations
5.2.5. Certificate of inspection

▪ A certificate of inspection is issued by an

approved inspecting organization after
inspection or examination of goods.
▪ It is used to ensure that the goods to be
shipped are of the required standard and
quality.
5.2. Documentations related to Freight forwarding operations

5.2.6. Health Certificate

▪ This certificate is applied for: livestock/

domestics animals/ agricultural products
are being exported.
5.2. Documentations related to Freight forwarding operations
5.2.7. Equipment Interchange Receipt (Phiếu giao nhận container)

▪ EIR is a receipt issued by the

terminal or depot to shipper(s) after
picking up empty container & taking
it out of terminal / depot.

▪ EIR mentions current condition of

the empty container at the time of
picking up: Good, bad, punctured,
torn, deformed, scratched, etc.
5.2. Documentations related to Freight forwarding operations
5.2.8. Drop off confirmation (Phiếu hạ bãi chờ xuất)
5.2. Documentations related to Freight forwarding operations
5.2.9. VAT Invoice

VAT Invoice issued by the terminal to

the customer after finishing drop- off
procedure at the nominated terminal/
port.
 5.2. Documentations related to Freight forwarding operations
5.2.10. Stowage plan (Sơ đồ xếp hàng)
A stowage plan for container ship is a plan and method to determine the correct stowage position of containers
as per the prepared cargo plan & maintain the stable balance for the vessel.

5.2.11. Cargo Manifest

▪ A Cargo Manifest lists the goods carried in a means of transport to the different ports of discharge, it is made by
the shipping line or agent of the shipping line at port of loading, based on Shipped on Board B/L.
5.2. Documentations related to Freight forwarding operations
5.2.12. Arrival Notice

▪ Arrival Notice is a notice from a shipping line or

agent of a carrier issued to the customer (Freight
Forwarding / Logistics company) about the arrival
schedule of a vessel.

▪ It is also considered as a goods receipt notice.

5.2. Documentations related to Freight forwarding operations
5.2.13. Delivery Order (D/O)

▪ D/O is an order issued by a carrier (shipping line) or agent of

a carrier to request the terminal/port to release the goods to
the customer/importer.

▪ D/O will be issued after the customer presents a valid Bill of

Lading as well as settles payment for all relevant charges of
the goods.