Shipping Process – the beginning

Where does all this shipping process begin..?? Well, its pretty much like a normal purchase.. You go to a store, find something that you like, ask the clerk to pack it and you take it or you ask to “ship” it.. Its something like that.. Markets are identified in many ways through trade fairs, exhibitions, road shows, advertising etc..

The seller and the buyer meet and come together to an agreement on prices or terms of shipment.. They then discuss on how the shipment will proceed.. In general if the shipper and consignee know each other and have a mutual trust on receiving the monies, the transaction is done COD.. The most common mode of transactions are the ones covered under an L/C (Letter of Credit)..

The shipper (seller) then either appoints a Forwarding Agent who generally negotiates freight rates with the shipping lines on his behalf or the shipper takes that responsibility himself if he is well versed with the market.. The shipper might also appoint a Customs Clearing agent to handle his customs documentation or this might also be done by the Forwarding Agent..

The forwarder or shipper then nominate a carrier to carry the cargo from A to B.. Once the cargo reaches its destination, the consignee (buyer) follows a similar process to that followed by the shipper in appointing his own Forwarding and/or Clearing agent and clears the cargo..