Basics of Shipping

We all hear about shipping everywhere.. Just what is SHIPPING.. Well the dictionary meaning is shipping [shípping] noun = act of transporting goods: the act or business of transporting goods

Who are the people that are generally involved in shipping..??

Well, they are :

• Shipper
• Consignee
• Notify Party
• Shipping Line
• Clearing Agent
• Forwarding Agent
• Haulier
• Port Authority
• Customs Authority

What is their role..??

Shipper – the company or person whose name is reflected in the shipper column in the bill of lading – in other words the “seller” of the cargo..

Consignee – the company or person whose name is reflected in the consignee column in the bill of lading – in other words the “buyer” of the cargo..

Notify Party – the company or person whose name is reflected in the notify column in the bill of lading – may or may not be the same person as the “buyer” – normally the notify party is the person who receives the notice of arrival from the shipping line.. In some of the cases the clearing agent for the consignee is shown as the notify party..

Shipping Line – the company that actually carries the cargo from Point A to Point B.. They may or may not own the ships that the cargo is carried on..

Clearing Agent – the company that is authorised to process documents and cargo with customs on behalf of the client.. The company has to be registered with the customs authorities in order for them to do this..

Forwarding Agent – the company that handles all shipping movements for a client.. The forwarding agent generally negotiates rates with the shipping lines, nominates which shipping line to use for the carriage.. They may or may not do the customs clearing as well and sometimes nominate a clearing agent of their choice..

Haulier – the company that takes care of the transportation – either rail or road for the shipper, consignee or shipping line to move the cargo from Point A to Point B..

Port Authority – the company that operates the harbour where the ships belonging to the shipping lines berth.. Usually it’s a government entity but in some countries it also could be a private entity or a parastatal..

Customs Authority – the government entity that regulates tariffs and decides which cargo is allowed into the country and which ones are not and sets the duty payable on the cargoes..