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Security Notice

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Freight Forwarding — Domain Specialist

Document Flow (Ocean Import — Standard)

Booking Confirmation → Shipping Instructions → Bill of Lading (BL) →
Arrival Notice (AN) → Delivery Order (DO) → Customs Entry →
Freight Release → Terminal Release → Delivery

Key Documents

DocumentAbbreviationWho IssuesPurpose
Master Bill of LadingMBLCarrier (steamship line)Contract of carriage, receipt of goods
House Bill of LadingHBLFreight forwarder (NVOCC)Forwarder's contract with shipper
Arrival NoticeANCarrier/agentNotifies consignee of cargo arrival + charges
Delivery OrderDOCarrier/agentAuthorization to release cargo
Commercial InvoiceCISeller/exporterValue of goods for customs
Packing ListPLShipperDetailed contents per container
Customs EntryCE / EntryCustoms brokerDeclaration to CBP (US) or SAT (MX)
ISF (10+2)ISFImporter/brokerSecurity filing, 24hr before loading
Telex ReleaseTLRCarrierElectronic release (no original BL needed)
Certificate of OriginCOChamber of commerceCountry of manufacture

Party Roles

RoleCW AddressTypeDescription
Shipper/ExporterSHPSends the goods
ConsigneeCEDReceives the goods (importer)
Notify PartyNFYGets notified of arrival
Freight ForwarderArranges transport (NVOCC if issuing HBL)
Customs BrokerCHAFiles customs entries
Carrier (SSL)CARSteamship line operating the vessel
TerminalPort facility handling cargo
Trucker/DrayageTRKMoves container from port to warehouse
CFS OperatorLess-than-container (LCL) deconsolidation

Incoterms 2020

TermRisk TransferFreight Paid ByInsuranceCommon Use
FOBShip's rail at origin portBuyerBuyerMost ocean freight
CIFShip's rail at origin portSeller to dest portSellerCommon in Asia exports
CFRShip's rail at origin portSeller to dest portBuyerLike CIF without insurance
EXWSeller's premisesBuyerBuyerBuyer controls everything
DDPDelivered to buyer's doorSellerSellerSeller handles all
DAPDelivered at place (unloaded)SellerBuyerDoor delivery, no customs
FCACarrier at named placeBuyerBuyerMultimodal, inland pickup

WSI common: FOB (most ocean), CIF (some Asia), DDP (value-add for key accounts)

Container Types

CodeNameInternal (L x W x H)Max CargoCommon Use
20GP20' Standard5.9m x 2.35m x 2.39m~28 MT / 33 CBMGeneral cargo
40GP40' Standard12.03m x 2.35m x 2.39m~26 MT / 67 CBMGeneral cargo
40HC40' High Cube12.03m x 2.35m x 2.69m~26 MT / 76 CBMMost common import
20RF20' ReeferInsulated, temp -30 to +30~21 MTPerishables
40RF40' ReeferInsulated, temp -30 to +30~26 MTPerishables
20OT20' Open TopNo roof~28 MTOversized cargo
40FR40' Flat RackNo walls/roof~40 MTMachinery, vehicles

1 TEU = 1 twenty-foot equivalent unit. 1 x 40' = 2 TEU.

Container Number Format

{OWNER CODE}{EQUIPMENT CATEGORY}{SERIAL NUMBER}{CHECK DIGIT}

  • Example: MSCU U 123456 7
  • Owner code = 3 alpha (carrier prefix, see ocean-tracking.md)
  • Category: U = freight container, J = detachable equipment, Z = trailer/chassis
  • Serial: 6 digits
  • Check digit: 1 digit (ISO 6346 algorithm)

Ocean Freight Charges

ChargeCodeWho PaysDescription
Ocean FreightOFRPer IncotermBase rate origin → destination
THC (Terminal Handling)THCBoth endsTerminal lift-on/lift-off
BAF (Bunker Adjustment)BAFPer IncotermFuel surcharge
PSS (Peak Season Surcharge)PSSShipper/buyerHigh-demand periods
Documentation FeeDOCForwarderBL preparation
AMS/ISF FilingAMSImporterUS security filing
Customs BrokerageBRKImporterEntry filing fee
DrayageDRYImporterTruck port → warehouse
Chassis FeeCHSImporterContainer chassis rental
DemurrageDEMImporterContainer at terminal past free time
DetentionDETImporterContainer out of terminal past free time
Per DiemPERImporterChassis rental past free time
StorageSTRImporterCargo at terminal past free time

Key distinction: Demurrage = container still at port. Detention = container already picked up but not returned. Per Diem = chassis not returned.

Shipment Lifecycle (Ocean Import to US)

1. Booking confirmed (carrier assigns space)
2. Cargo loaded at origin, container sealed
3. BL issued (MBL by carrier, HBL by forwarder)
4. ISF filed (10+2, 24hr before vessel loading)
5. Vessel departs origin port (ETD)
6. In transit (vessel tracking via carrier API)
7. Vessel arrives destination port (ETA/ATA)
8. Arrival Notice issued to consignee
9. Customs entry filed (CBP for US)
10. Customs cleared (may exam — CET/VACIS/tailgate)
11. Freight released (carrier releases after payment)
12. Terminal release (port releases container)
13. Drayage — trucker picks up container
14. Delivery to consignee warehouse
15. Container returned empty to terminal
16. Invoice/settlement

CBP Exam Types (US Customs)

TypeDescriptionDelay
CET (Contraband Enforcement Team)Intensive physical exam5-10 days
VACIS / NII (Non-Intrusive Inspection)X-ray scan1-3 days
TailgateQuick physical check1-2 days
Document ReviewNo physical exam, just docsHours

WSI-Relevant Trade Lanes

OriginDestinationKey CargoVolume
China (Shanghai, Ningbo, Yantian)LA/LGBTires, auto parts, consumer goodsHighest
Taiwan (Kaohsiung)LA/LGBAuto parts (Koyorad, Tireco)High
Korea (Busan)LA/LGBAuto parts, electronicsMedium
Japan (Yokohama)LA/LGBAuto partsMedium
Mexico (Manzanillo, Lazaro Cardenas)Cross-border, CHAROS opsGrowing

Freight Rate Context (WSI, 2025 data)

  • China → AZ rates trending down: $5.8K → $4.6K per container (George Damwijk leads)
  • Key accounts: Tireco (18K TEU LY), Koyorad (908), Liberty Paper (825)

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