Shipping and forwarding.

Being an island Great Britain is more dependent than are most countries on transport by sea. Although air transport is increasing and is undoubt­edly the best method for carrying certain types of goods, its limitations are obvious.

Large amounts of merchandise are transported to the Continent by rail and lorry. There are special ferries which can carry a whole train or several loaded lorries, so that cargo does not have to be loaded, unloaded and reloaded at ports. Special wagons, both open and closed, are used on tram-ferry services, and these include refrigerated wagons for perishable goods and tanks for liquids being transported in bulk.

In recent years this type of transport has greatly encouraged the use of containers, which are mentioned in Chapter 6. Container services pro­vide speedy, safe, and relatively inexpensive door-to-door deliveries, and are becoming more and more popular with exporters and importers alike.

Transport by ferry is possible only between Britain and certain other European countries, so most goods, unless they are light enough to be carried economically by air, have to go by ship.

Carriage by sea can be a complicated business, since the exporter and the importer both have to observe a variety of rules and regulations which have been made over the years. These involve a great deal of paperwork which can be studied in detail in any of the available books on modem commercial practice: this chapter will explain only what it is necessary to mention in correspondence.

A lot of the letter writing concerning transport is between firms in the same country: for example, sellers make arrangements with forwarding agents or ship owners, while buyers frequently have to contact agents or carriers in their own country when goods are to be collected from a harbour, airport or railway station.

The seller or buyer—according to which party is responsible under the terms of payment for transport arrangements—has to know how much it will cost to have his goods delivered. If he is concerned with regular shipments between two specific ports, he will know the normal freight rates and will be kept informed of changes, but in other cases he will have to make enquiries, as in letters 1 and 2:

[1] Dear Sirs

Please quote us your freight rate for cased cycles for shipment from London to Valetta, and let us know when you will be sailing to Malta during the next three months.

Yours faithfully

[2] Dear Sirs

We are about to make up an order for a customer in Beirut for 3 cases textile machinery parts and in accordance with the terms of the letter of credit the consignment has to be shipped by 15 January at the latest

Please inform us whether your S. S. Morning Star will be able to meet our requirements, and kindly quote us a rate for the voyage. We are looking forward to hearing from you.

Yours faithfully

A sailing card issued by a shipping line gives particulars of loading and sailing dates of a cargo vessel sailing. When sailings are infrequent, space has to be reserved in advance.

[3] Reply from shipowners to letter no. 1

Dear Sirs

We have received your enquiry of 4 December, and can inform you that our current freight rate for cased cycles, London-Valetta, is £... per metric tonne or 10 cubic metres, at steamer's option.'

We sail once a week, and as Malta is our first port of call the voyage takes about six days. We enclose our sailing card for M. V. Morecombe, which loads at the West India Docks, and our shipping instructions form. We would appreciate it if you would kindly complete and return the latter as soon as possible.

Yours faithfully

[4] Reply from agents to letter no. 2

Dear Sirs

In reply to your letter of 12 December, we are pleased to inform you that the S. S. Morning Star of the Blue Crescent Line will be receiving cargo from 12 to 18 January inclusive, and is expected to commence loading on 14th. We see no reason why your goods should not be on board by this date, but suggest that the three cases should be delivered to the ship on the opening date.

Details of the Blue Crescent Line's rates are enclosed. We look forward to assisting you.

Yours faithfully

Enclosure

This picture shows a sailing card issued by a shipping line, giving particulars of loading and sailing dates of a cargo vessel sailing between Britain and South America. When sailings are infrequent, space has to be reserved in advance.

If the consignor finds the rates acceptable, he will send an advice note to the shipowners or agents.

[5] Shipping instructions sent to shipping company

Dear Sirs

Thank you for your letter of 5 December. We have noted that your M.V. Morecombe is receiving cargo for Malta on the 10th of this month, and are making arrangements for our cycles to be delivered to the West India Docks.

We are enclosing your shipping instructions form, duly completed.

Yours faithfully

When arrangements have been made for shipping the goods, the sen­ders will write to the buyers to inform them that the merchandise is on the way. This communication is known as an advice of despatch, and normally the information is typed on a printed form. Sometimes, however, a letter is written instead, and occasionally a form is sent together with a covering note.

The bill of lading (generally abbreviated in correspondence to B/L) is a very important shipping document. Firstly, it is a receipt from the ship­owners, giving details of the shipment in question and the conditions under which they accept it: so ft is evidence of a contract. Secondly, the B/L is the legal title to the consignment, and can be used to transfer the right of ownership to the goods.

The B/L is known as shipped, or shipped on board, when the goods have been loaded onto the vessel named on it. Shipped bills are usually required in transactions involving payment through a bank. The term clean B/L means that the shipowners have examined the cargo and accepted it for delivery in 'the like good order and condition'. If the goods do not correspond to the description of them on the bill, it is known as dirty, unclean, foul, or claused (because a clause has been added to it by the shipowners, specifying the discrepancy).

The invoice is the account of what the buyers have purchased and what they have to pay. The final account, made out when the goods have been despatched, is usually called the commercial invoice. When there is no bill of lading, as in transport by road or rail, the invoice is used when payment is made through a bank.

AIR TRANSPORT

The document used for transport by air is called an air waybill. It is like a B/L in some ways, but is not a document of title: in other words, it cannot be used to pass on the right of ownership to the goods. Airlines them­selves complete the waybills on the basis of information provided by consignors.

In the example letters given so far we have dealt with shipment by sea. In the following lists there are phrases and sentences which can be used in correspondence relating to other methods of transport.

GENERAL TRANSPORT

Enquiries for freight rates and loading dates

1. Please quote your inclusive rates on the following (cargo) (consignment)...

2. Please let us know the present freight rates for...

3. Please let us know on which day the ship closes for cargo.

4. We shall be glad to know (your lowest rates for large shipments) (your group age rates ^for small consignments).

5. We are prepared to pay the G.V. rate by train-ferry if absolutely necessary, to avoid delay.

6. F.O.B. charges are to our a/c; all other charges (will be paid by the consignee) (are to be debited to the consignee).

7. Shipped, dean Bs/L, in a set of 3, are to be made out to order and are required by 25 October for delivery to the... Bank, under the terms of a letter of credit.

8. In view of the fragile nature of the goods we require them to be forwarded by air, and we would therefore be glad to know the lowest rates.

Replies to enquiries for freight rates

9. Our rates are subject to alteration without previous notice, exceptthe case of special contract.

10. We can offer you a substantial rebate for regular shipments.

11. We thank you for your enquiry of 8 November and attach our quotation for the packing as required. As you know, freight will depend on the size and weight of the (cases) (packages).

12. We enclose our shipping instructions form and will be glad if you will fill this in and return it to us, together with a copy of the invoice, for customs clearance abroad; we will then undertake all formalities on your behalf, in accordance with our usual conditions.

Sellers' or agents' enquiry for shipping instructions

13. The goods of your order no.... are packed and ready for despatch, and we would be pleased if you would fill up, sign and return the attached instructions form as soon as possible.

14. Please let us know whether you wish to have the goods sent bye train-ferry or by ship to Rouen and thence by lighter. The Paris/London Line will have a vessel sailing from the Port of London on...

Shipping instructions sent

15. Instructions have been given to the manufacturers to forward to you by rail, carriage paid, the following consignment:

16. We enclose commercial invoice in triplicate; also certificate of origin.

17. We have consigned to the Superintendent, Nine Elms Goods station, London, to your order, by lorry (van), the following goods:

18. We thank you for your letter of October 20th and we no return your shipping instructions form duly completed, with 2 copies of commercial invoice attached. The certificate of origin is printed on the back of the invoice and has been filled in.

19. The tractors are to be delivered F.A.S. by lighter to S.S. Orient, Port of London.

20. As the cargo is to be transhipped at... we shall require through Bs/L.

21. To avoid undue risk of breakage we should like to have the carboys sent by train-ferry.

22. All charges are payable by us and the Bs/L are to be marked 'freight prepaid'.

Shipping agents acknowledge shipping instructions

23. Your instructions have been noted and we will collect the consignment for despatch by the next available opportunity overland.

24. A waybill, giving full particulars, will be sent to you as soon as the consignment is ready for despatch by British Airways.

25. We have delivered to... agents for the... Line, the goods of your order no.... according to the enclosed copy invoice. We are advised that a vessel will sail on Wednesday so that the consignment should reach you within a week from that day.

[6] Agents inform consignee of arrival of ship and goods

As brokers for the Jacobsdattir Line, we are writing to inform you that the following goods are arriving for your account on the M.V. Montefiore, due at Liverpool on 6 February. In order to have the consignment cleared at Customs, we would be obliged if you would let us have the bill of lading, duly endorsed, together with a letter to H.M. Customs authorising us to act on your behalf. At the same time please let us have the address to which you would like us to deliver the cases.

[7]

We have received your letter of 1 February and the bill of lading relating to the consign­ment on board the M.V. Montefiore, which is due on 6 February. When the goods arrive we will do what is necessary to have them dealt with promptly and delivered to your Manchester premises. We note that the letter addressed to H.M. Customs is to follow.

Shipping and forwarding agents and export packers offer their services

26. We collect your goods to be packed, by any method required for transport by sea, air, rail or road. We arrange shipments to any part of the world and will undertake all formalities on your behalf, clearing all documents and obtaining bills of lading.

27. We have connections throughout the world and as a result of our wide experience we can advise you on suitable packing and method of transport for any country to which you wish to export.

28. Our plant is equipped to handle any type of bulky product, and we provide all the necessary internal fitments, bracing members and cushioning to avoid shock.

29. You can save both time and money by letting us handle all shipping and Customs formalities for you.

30. Our enclosed brochure will give you details of the varied services we can render and we are able to offer special reductions for large shipments. On the other hand we can quote very favourable group age rates.

TRANSHIPMENT

[8] Letter to a forwarding agency concerning transhipment

Messrs. Paulino of Milan have informed us that you are their correspondent at Piraeus.

We are going to have to ship the goods listed below, which are currently in transit at Piraeus, from there to Bern in Switzerland. Messrs. Paulino have told us that the shipping documents for this transaction are to be prepared at your end, and we would be grateful if you would kindly let us know what you can do to get them ready for shipment, and what you need from us.

Please note that our agents in Athens are J. Dianedes & Co.; and that the bank handling the documents is the office of the National Bank of Greece in Plato St., Athens. We look forward to hearing from you very soon on this subject, and thank you in advance for your co-operation.

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