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com

LOGISTICS COURSE

Study Guide

2020
 GESTIÓN HUMANA
ABOUT US
MISION
Somos una empresa Colombo Americana especializada en proveer servicios de soporte
operacional a distancia (Nearshoring) a empresas del sector de logística y transporte, soportado
con sistemas de tecnología de comunicación eficientes, equipos de trabajo competentes y
experimentados, y procesos caracterizados, que permiten la continuidad operativa de nuestros
clientes y la satisfacción de las partes interesadas.

VISION
Para el año 2025, seremos líderes a nivel Nacional en el modelo de servicios Nearshoring, a
través de tecnología innovadora y la implementación de procesos estandarizados y lecciones
aprendidas, que aseguren calidad y la fidelización de nuestros clientes.

HISTORIA

PERFILES Y SOLUCIONES LOGÍSTICAS S.A.S surge en febrero 05 de 2012 en la ciudad de

Cartagena. Su razón social inicia bajo un concepto orientado a la logística de transporte de carga
internacional. Derivado del esfuerzo de nuestro CEO, Roberto Cadena y de sus socios nace la
idea de extender la operación en Colombia.

El 30 de septiembre de 2014, con aproximadamente unos 30 funcionarios se dio apertura a la

sede de Barranquilla debido a distintas oportunidades de crecimiento económico, multilingüismo
y estratégico para la inversión extranjera. A mediados de 2016, Perfiles y Soluciones Logísticas
consolidó alianzas con distintas compañías de transporte internacional lo que dio a un incremento
del reclutamiento de personal y alcanzar una operación de aproximadamente 250 empleados
para poder brindar apoyo a las operaciones a distancia de nuestros clientes.

Para 2019, se proyectó la expansión de nuestra línea de negocio al interior del país. Actualmente
contamos con 3 sedes, Cartagena, Bogotá y Barranquilla, con más de 1000 colaboradores.

VALORES ORGANIZACIONALES
Nuestra compañía desea resaltar los siguientes valores organizacionales como
claves para el crecimiento integral de nuestras Operaciones:

• Compromiso
• Honestidad
• Responsabilidad
• Calidad
• Respeto
• Confianza

Barranquilla | Bogotá | Cartagena

PRINCIPALES OBLIGACIONES DEL TRABAJADOR
1. Realizar personalmente la labor en los términos estipulados; observar los preceptos de este
reglamento y acatar y cumplir las órdenes e instrucciones, que de manera particular le imparta la
empresa o sus representantes, según el orden jerárquico establecido.

2. Conservar y restituir en buen estado, salvo deterioro natural, los instrumentos y útiles que les
hayan facilitado y las materias primas sobrantes.

3. Manejar un nivel de comunicaciones y relaciones interpersonales con superiores y

compañeros de respeto.

4. Comunicar oportunamente a la empresa las observaciones que estimen conducentes a evitarle

daño y perjuicios.

5. Prestar la colaboración posible en caso de siniestro o riesgo inminentes, que afecten o

amenacen las personas o las cosas de la empresa.

6. Observar las medidas preventivas higiénicas prescritas por el médico de la empresa o por las
autoridades del ramo y observar con suma diligencia y cuidados las instrucciones y órdenes
preventivas de accidentes o de enfermedades profesionales.

7. Reportar accidentes de trabajo de acuerdo con el procedimiento estipulado.

8. Reportar ausentismos e incapacidades, licencia de paternidad, maternidad, calamidad, luto

dentro de los plazos establecidos por la empresa o la ley.

9. Realizar la debida custodia de los bienes asignados a su cargo.

10. Reportar a quien corresponda posibles actos que pueden constituir una falta y/o
irregularidades de colaboradores a su cargo o compañeros de trabajo.

11. Registrar en las oficinas de la empresa su domicilio y dirección y dar aviso oportuno de
cualquier cambio que ocurra (C.S.T, art.58).

12. Comprobar ante la empresa, dentro de un término no mayor a tres (3) días hábiles, la grave
calamidad doméstica sufrida, que justifique plenamente su ausencia al trabajo.

PRINCIPALES PROHIBICIONES INTERNAS

1. Sustraer de las instalaciones o establecimiento los útiles de trabajo, las materias primas,
documentos, información o productos elaborados sin permiso de la empresa, salvo autorización
expresa.

2. Consumir en el lugar de trabajo licor, narcóticos o cual quier sustancia, que produzca
alteraciones en la conducta, o presentarse al trabajo en estado de embriaguez o bajo efectos de
estas mismas sustancias.

3. Conservar armas de cualquier clase en el sitio de trabajo.

4. Faltar al trabajo sin justa causa de impedimento o sin permiso de la empresa, excepto en los
casos de huelga, en los cuales deben abandonar el lugar de trabajo.

Barranquilla | Bogotá | Cartagena

5. Disminuir intencionalmente el ritmo de ejecución del trabajo, suspender labores, promover
suspensiones.

6. Hacer colectas, ventas, rifas o suscripciones o cualquier otra clase de propaganda en los
lugares de trabajo.

7. Usar los útiles o herramientas suministradas por la empresa en objetivos distintos del trabajo
contratado.

8. Distraer las actividades de la empresa durante horas de trabajo, con juegos, burlas o lecturas
extrañas a las labores o en cualquier otra forma.

9. Ejecutar cualquier acto que ponga en peligro su seguridad, la de sus compañeros de trabajo,
la de sus superiores, o la de terceras personas, edificios, maquinarias, vehículos y demás
elementos de la empresa, Introducir sustancias o elementos peligrosos a los locales de esta.

10. No utilizar los elementos de protección que ella le suministre para la realización de los
trabajos y contravenir cualquier otra regla de seguridad o de prudencia.

11. Confiar a otro trabajador la ejecución del trabajo asignado sin permiso expreso de la empresa
o del jefe inmediato.

12. Cambiar turnos de trabajo sin autorización de la empresa.

13. Abandonar o ausentarse, aún por leve tiempo el sitio de trabajo sin permiso del superior, sin
que haya fuerza mayor o motivo justificado.

14. Ocuparse en asuntos distintos a sus labores durante las horas de trabajo, sin previo permiso
del superior respectivo, tales como juegos de internet y/o de celular, Facebook, YouTube, correo
o trabajos que no son propios de la labor desarrollada en la empresa. (Ejemplo los juegos por
internet, chat de Facebook, etc.).

15. Utilizar los canales de información utilizados por la empresa tales como chats, correos
internos, Google hangouts, en actividades diferentes a las que se encuentran destinadas o en su
defecto utilizarlos para expresarse en forma irrespetuosa y malintencionada contra los clientes,
contra los superiores o contra sus compañeros de trabajo.

16. Dormir durante el horario laboral en el trabajo.

17. Empezar o terminar el trabajo en horas distintas de las reglamentarias sin causa justificada,
sin previo aviso o sin permiso de la empresa.

18. Retirar de los archivos o dar a conocer documentos, físico o electrónico, o cualquier
información privada y/o confidencial, que sean propios de los clientes y/o de la empresa sin
autorización escrita de los superiores de la compañía.

19. Comunicar a terceros sin autorización escrita de la empresa, las informaciones que tenga su
trabajo, especialmente sobre las cosas que sean de naturaleza reservada o cuya divulgación
pueda ocasionar perjuicios a la empresa y/o clientes.
20. Incitar al personal de trabajadores al desconocimiento de órdenes legales impartidas por los
superiores de la empresa.

Barranquilla | Bogotá | Cartagena

21. Esconder trabajos defectuosos o no informar de ellos inmediatamente a sus superiores o
rendir información, declaración o dictámenes falsos, que atente contra los intereses de la
empresa y/o de los clientes de la compañía, que causen trastornos en sus actividades.

22. Pelear o provocar riñas o discusiones, amenazar, intimidar, coaccionar o inferir a sus
superiores y/o compañeros de trabajo dentro o fuera del trabajo.

23. Dar informaciones falsas, con el objeto de obtener la liquidación parcial de su cesantía o la
realización de las operaciones de crédito autorizadas por esas entidades o dar una destinación
distinta a la señalada en la solicitud, o en otro documento extendido con el mismo fin.

24. Queda totalmente prohibido la comunicación con los clientes de la compañía, para solicitud
de permisos o licencias, bonos, salarios, bonificaciones, auxilios monetarios, primas, vacaciones
y otras, de cualquier índole que no sean inherentes a la operación de la compañía.

25.Trabajar en horas laborales por cuenta propia en el mismo oficio o en otro diferentes para el
cual fue contratado por la empresa, cuando esto genere con su actuar perjuicios a la empresa.

26. Ejercer presiones, amenazas, conductas que atenten contra la dignidad y respeto de las
personas.

Barranquilla | Bogotá | Cartagena

AVISOS ADMINISTRATIVOS

Orden y aseo en la oficina: Este factor habla por nosotros en el trabajo, ya que
cada puesto debe permanecer en todo momento aseados y ordenados evitando
ocupar demasiado espacio y visibilidad de los escritorios, tratando de no tener
portacomidas u otros utensilios de cocina que puedan manchar la superficie.

Cafetería: Tengan siempre presente que, al finalizar su jornada laboral, deben

llevarse los utensilios donde guarda su comida, pocillos y demás elementos que
utilizan diariamente para uso de consumo personal. Además, es importante tener en
cuenta que los elementos eléctricos deben ser manejados con precaución cuando
sean utilizados, así como dejar guardado en la nevera comida por varios días.

Papelería e insumos oficina: Estos elementos deben ser solicitados a los

supervisores o su Manager directo, los cuales deben enviar un correo a los
Coordinadores Administrativos para que realicen la gestión de compra. Una vez sean
adquiridos, se les entregará el pedido junto a un acta de entrega, la cual debe ser
debidamente firmada por el supervisor.

✓ Tener presente moderar el tono de voz, ya que alguno de sus compañeros podría
encontrarse en comunicación con un cliente o en reunión.

✓ Especial atención y sobre todo consideración con el equipo que día a día contribuye a
mantener el espacio limpio y agradable para el buen uso de nuestra oficina, hacemos
énfasis en limpiar nuestros propios derrames de cualquier sustancia líquida o sólida, y en
pasar por un lado de la oficina cuando la estén aseando.

✓ Es de suma importancia que contribuyamos en mantener los baños limpios, es muy

agradable poder hacer uso de ellos en óptimas condiciones.

✓ Tener presente que las puertas de la oficina permanezcan cerradas en todo momento,
salvo alguna excepción o indicación, al mantener las puertas cerradas no solo cuidamos
que algún desconocido pueda entrar y realizar cualquier acto indebido si no que
bloqueamos los olores provenientes del pasillo o la cafetería.

Barranquilla | Bogotá | Cartagena

 PHASE 1
GENERAL
KNOWLEDGE

Barranquilla | Bogotá | Cartagena

INTRODUCTION TO USA
USA Map and states abbreviations.

Barranquilla | Bogotá | Cartagena

Zip Codes

A ZIP code is a five-digit number representing a specific location in the United States. The
extended ZIP + 4 code adds a hyphen and four additional digits for an even more precise location.
Here is how it works:

• The first digit represents the state. Numbers increase as you move west. Several states
share each digit — 2, for example, represents the District of Columbia, Maryland, North
Carolina, South Carolina, Virginia, and West Virginia.
• The second and third digits represent regions within the state — the first three digits create
the Sectional Center Facility (SCF) code. SCFs are the regional headquarters for mail
sorting and distribution.
• The fourth and fifth digits represent more specific areas, like post offices and postal
delivery zones within a city or town.
• ZIP + 4 has four extra digits that identify a specific segment of the five-digit delivery area
— like a city block, office building, or individual high-volume mail receiver.

Barranquilla | Bogotá | Cartagena

Handy text terms
✓ 2moro – Tomorrow ✓ LU Loading Up
✓ 2nite – Tonight ✓ L8R – Later
✓ 2B - To Be ✓ LOL – Laughing Out Loud
✓ AFK – Away from Keyboard ✓ M/O - Miles Out
✓ ASAP - As Soon As Possible ✓ MT - Empty
✓ APPT - Appointment ✓ OMG – Oh My God
✓ BRB – Be Right Back ✓ OTD - On Time Delivery
✓ BTW – By the Way ✓ OFD - Out for Delivery
✓ B4N – Bye for Now ✓ OL - Online
✓ CST – Central Standard Time ✓ OLT - Online Tracking
✓ DEL - Delivery ✓ OS&D - Overage, Shortage and Damages.
✓ DR - Driver ✓ PU - Pickup
✓ DP - Dispatch ✓ PST – Pacific Standard Time
✓ DNC - Do Not Call ✓ POV – Point of View
✓ EST – Eastern Standard Time ✓ SHPR - Shipper
✓ FCFS -First Come First Served ✓ RCVR - Receiver
✓ FYI - For Your Information ✓ UL - Unloading
✓ GR8 – Great ✓ THX / TX / TKS – Thanks
✓ G2G - Good to Go ✓ TY - Thank You
✓ LnR - Loaded and Rolling ✓ TTYL – Talk to You Later
✓ WTN / WTNG – Waiting
USA Time zones

Note: For those states that have multiple time zones, make sure to confirm the time using
the city’s zip code.

Barranquilla | Bogotá | Cartagena

HOW DOES THIS INDUSTRY WORK?
This industry has multiple parties involved, and each one of them has an important role to
accomplish the main goal of the process, which is customer satisfaction, let’s take a look!

Customer: Must provide clear information about the shipment and will be the one paying for
everything that happens when moving good from point A to point B.

Freight Broker/ 3PL: Bridge between Customer and Carriers, each one of them has different
management of their tasks, industries, and knowledge.

Freight Broker: Work with Private Carriers and Full Truck Load (FTL) Industry. They negotiate
rates, trying to get the best one for the customer and them, they settle this by a rate agreement.

3PL: Work with Common Carriers and LTL Industry. They have annual contracts with the carriers
with discounts and the rates are already set.

Carrier: Company or individual in charge of transporting the goods. We can find Private Carriers,
Common Carriers, or Owner Operators.

Shipper: This is the place where the goods are going to be picked up, they oversee the loading
and properly packed the goods. (Audits are done in the shipper if it is a 3PL). When the carrier
arrives at the shipper, they must have the Bill of Lading (BOL) with the load details.

Consignee: This is the destination of the goods, they oversee the unloading of the goods and
verify there is no overages, shortages, or damages (OS&D) and sign the Proof of Delivery (POD)

Barranquilla | Bogotá | Cartagena

MODES OF TRANSPORTATION

Most of Lean Staffing Solutions’ customers are Logistics and Transportation companies that
offer domestic transportation throughout the US. Due to its nature, ROAD service is ideal for these
types of services. Regardless, let’s go over the modes of transportation and the advantages and
disadvantages we can identify for all of them.

Barranquilla | Bogotá | Cartagena

Ocean transportation

Sea transportation is used by businesses for the delivery of goods from distant suppliers.
Most sea transportation is conducted in containers that vary in size. Goods can be
grouped into a container (LCL) or fill a container (FCL). Sea tankers are used for bulk
shipments of loose goods such as oil, grain, and coal.

Sea transportation is slow compared to most versions of land or air transport, but it is less
expensive than those modes of transportation and is useful for transporting non -
perishable goods in large quantities.

Advantages
• Ideal for transporting heavy and bulky goods
• Suitable for products with long lead times

Disadvantages
• Longer lead/delivery times
• Bad weather
• Difficult to monitor the exact location of goods in transit
• Customs and Excise restrictions

Barranquilla | Bogotá | Cartagena

Air Transportation
The aircraft is the fastest method of transportation. Aviation can quickly transport people
and limited amounts of cargo over a longer distance. Yet, the biggest disadvantages are
high costs and energy use.

Time has become especially important with regards to principles such as postponement
and just-in-time within the value chain, resulting in a high willingness to pay for quick
delivery of key components or items of high value-to-weight ratio. In addition to mail,
common items sent by air include electronics and fashion clothing.

This mode can be used for Express Shipping and Overnight Shipping since it can cover
long distances in a short time. However, airlines have several dimensions and product
restrictions to take into consideration.

Advantages
• Express Shipping and Overnight Shipping service.
• Fast delivery, usually between 24 and 48 hours.
• Reduced lead time on the supplier.
• Improved service levels.

Disadvantages
• Subject to flight delays and/or cancellations.
• Airport restrictions.
• Air Freight rates are usually way more expensive due to the costs per cubic feet
regulated for an aircraft.
• Airlines have several dimensions and product restrictions to have in consideration:
each pallet cannot weigh more than 2,200 LBS, cannot measure more than 119
inches length, and 70 inches high.
• Boxes weighing more than 50 LBS, must be palletized.

Barranquilla | Bogotá | Cartagena

Rail Transportation

Operating across nearly 140,000 miles, U.S. freight railroads manage a complex
nationwide rail system efficiently, reliably, and affordably. As a result, the U.S. is home to
the most efficient and cost-effective rail system in the world. Shipping by rail is generally
more economical and better for the environment. Plus, it's an especially effective option if
truckload capacity is tight. However, transit time in Rail Service is longer than OTR (Over
the Road) and it can experience delays easily.

Several types of cargo are not suited for containerization or bulk; these are transported in
special cars custom-designed for the cargo such as:

• Automobiles are driven on or off carriers and are stacked in open or closed auto
racks.
• Steel plates are transported in modified gondolas called coil cars.
• Goods that require certain temperatures during transportation can be transported
in refrigerator cars (or reefers - US) or refrigerated vans (UIC), but refrigerated
containers are becoming more dominant.
• Center beam flat cars are used to carry lumber and other building supplies.
• Extra heavy and oversized loads are carried in Schnabel cars.

Advantages
• Capacity.
• Cost-effective VS transit time.
• Safe mode of transportation.

Disadvantages
• Subject to unforeseen delays.
• Transit time is subject to the operator's timetable.

Barranquilla | Bogotá | Cartagena

Road Transportation

Road transport by truck is often the initial and final stage of freight transport, providing
door-to-door transportation. The nature of road transportation of goods depends, apart
from the degree of development of the local infrastructure, on the distance the goods are
transported by road, the weight and volume of the individual shipment and the type of
goods transported. For short distances and light shipments, a van or pickup truck may be
used. For large shipments, even if less than a full truckload, a truck is more appropriate.

To avoid accidents caused by fatigue, truckers must keep to strict rules for drivetime and
required rest periods (known in the U.S. as hours of service, and DOT break).
Tachographs record the times the vehicle is in motion and stopped. Some companies use
two drivers per truck to ensure uninterrupted transportation, with one driver resting or
sleeping in a bunk in the back of the cab while the other is driving, this is called a Team
Driver system.

Advantages
• Cost-effective & Fast delivery
• Ideal for short distances in domestic destinations.
• Ideal for transporting perishables (ex: fruit and vegetables)
• Easy to monitor the location of goods.
• Easy to communicate with the driver.
• Ideal for the handling of small packages and courier services with expedited
delivery.

Disadvantages
• Transport subject to traffic delays due to mechanical breakdown, extreme weather,
or unexpected events.
• Goods are exposed to damage due to excessive trans-loading, mishandling, road,
or truck conditions.
• Driving regulations can affect regular transit time.

Barranquilla | Bogotá | Cartagena

WHAT CANNOT BE SHIPPED?
Restrictions vary between carriers, but they usually refuse to move:

• Radioactive material
• Items of which their value exceeds $100,000
• Infectious substances
• Explosives, guns or ammunition
• Medical marijuana
• Coin or currency
• Jewelry/Precious stones
• Tobacco or tobacco-related items

WHAT CAN BE SHIPPED?

• Machines or Machinery parts

• Electronic Components
• Lumber
• Construction Materials
• Tools
• Foodstuff
• Textiles
• Chemicals
• Non-perishable food.
• Produce fruits and vegetables.

Barranquilla | Bogotá | Cartagena

PACKAGING TYPES
Pallets:
Pallet or Skid (PLT) is a portable platform for handling, storing, or moving materials and
packages (as in warehouses, factories, or vehicles). Palletization increases cargo
handling efficiency.

Standard pallets
Dimensions: 1,000 mm x 1,200 mm (40 × 48 inches)
The maximum weight capacity per standard pallet is 2500 lbs.

Barranquilla | Bogotá | Cartagena

Standard Pallet Load

1. Single Pallet for weigh-out products

Dimensions:

Maximum recommended product height 55 inches plus pallet height 6 inches.

Advantage
• Good for heavyweight products
• Maximum weight per pallet is 2500 lbs.
• Maximum density for storage

Disadvantage
• Cannot double stack

Barranquilla | Bogotá | Cartagena

2. Double Stacked Pallets

Dimensions:

Maximum product height 48 inches plus 6 inches height per pallet.

Advantage
• Pallets can be double stacked
• Maximum weight per pallet is 2500 lbs.
• Good stability for dense product

Disadvantage
• Cost of an additional pallet

Barranquilla | Bogotá | Cartagena

3. Single Pallet with High Load

Dimensions:

Maximum product height 103 inches plus 6 inches height per pallet.

Advantage
• Excellent cube utilization
• Maximum weight per pallet is 2500 lbs.
• Good for lightweight, cube-intensive product

Disadvantage
• May not fit in marine containers if transferred from road trailers.

Barranquilla | Bogotá | Cartagena

 Crates (CRT): any completely enclosed boxlike packing
or shipping case made of solid wood.

Cartons and Boxes (CTN): Any of various containers made from

cardboard or coated paper.

Totes: Plastic containers used to transport liquids.

Drums

Pails: Plastic container for small

quantities of liquid.

Barranquilla | Bogotá | Cartagena

EQUIPMENT
DRY VAN
A van can refer to a box-shaped trailer or semi-trailer used to carry goods from Origin to
Destination. Dry vans are the most common type of freight trailers hauled by commercial
trucking companies.

The 53-foot trailer is the largest available for use with a semi-truck. If the cargo load is not
big enough to warrant this size, the trailers are also available in 28’, 45’ and 48’ foot sizes.
Choosing the right size load for cargo is an important part of managing shipping costs.

Additional questions about the size and cargo capacity of any given semi-truck can be
acquired by contacting the trailer provider, as this information will slightly vary.

Air ride suspension is preferable in many cases and sometimes mandated. Anything
fragile or vulnerable to shock or sudden movements will like to require an air ride in
addition to other precautions. Some good examples are:

- Precision calibration equipment

- Liquid containers
- Glass products or materials

53’ foot trailer

A typical 53’ foot trailer that is 9’ feet high and 8’ feet wide contains 3,816 cubic feet of
space. However, because of the irregular shape of many items being shipped, a trailer is
often not filled. Air pockets are located in various locations throughout the trailer.

This trailer can fit a maximum of 30 pallets on the floor of the trailer. To pack a trailer with
30 pallets, industry-standard pallets of 40” inches by 48” inches must be packed into two
rows with the wide sides facing the front and back of the trailer.

Barranquilla | Bogotá | Cartagena

48’ foot trailer:

A 48’ foot trailer can

hold 28 standard
pallets at a time.
Standard pallets are
generally 48” inches
wide by 40” inches
long, so a 48-foot
trailer that is 99 inches
wide can be loaded 14
pallets deep and two
pallets wide.

Barranquilla | Bogotá | Cartagena

REEFER TRAILER

A refrigerated van is a cooled box designed to carry perishable goods at specific

temperatures. They are fitted with cooling mechanisms to maintain the quality of the goods
inside them. Refrigerated vans are also called reefers or reefer containers that control
ripening during transit. Refrigerated goods are defined as perishable food products
requiring a controlled environment while in transit. The primary refrigerated trades are
meat, fish, fruits, vegetables, and dairy
products.

Barranquilla | Bogotá | Cartagena

FLATBED AND FLAT EQUIPMENT
All flat trucks share the commonality of a level platform lacking walls and roofing. The only
typical variety is the option between the options of a rigid body and those with detachable,
articulated cargo components. The obvious advantage is the freedom of proportion; any
sized object with basilar dimensions not much larger than the area of the flatbed could
feasibly be loaded. The loading of the truck itself is also generally an easier task since it could
potentially be performed with a crane. Of course, the drawback of this design is that the
shipment must be able to protect itself from the environment.

Flatbed shipping is also not without its limitations, namely its legal restrictions. Once the
shipment has grown past the size of the truck, it is constrained by the size of the road the
truck travels on. The safe area is generally considered to be 8’6” i n width and
height. Anything past these dimensions will almost definitely fall into the domain of over-
dimensional loads, or what is commonly known as “Wide loads” or sometimes Heavy Hauls.
For this reason, it is particularly important to be very specific in communicating the exact
dimensions of the shipment to the potential logistics company. They know precisely what
their equipment can and cannot legally handle. The specificity of the proportions remains
critical even when there is room to spare, since that room may be filled by a partial load from
a different customer. Once the truck arrives, the sender is always liable for ensuring the
cargo equal to or smaller than the appropriated space that was agreed upon when the
contract was made. Overages will most often result in expensive fees and delays.

One of the most common flatbeds used, it’s the Removable Gooseneck (RGN) that is a
lowboy that can be removed from the head of the truck mostly used for hauling heavy
machinery and oversized cargo ( First image next page)

Barranquilla | Bogotá | Cartagena

Barranquilla | Bogotá | Cartagena
CONESTOGA
Trailer able to shrink the rooftop all the way back to the front of the truck. Most used for Fast
load and unload with oversized freight that needs protection.

Standards Common Lengths: 48-53

feet
Capacity Max Weight: 30,000 lbs.
Width: 102’ ‘Height:
102’’
Available Options: Spread Axle trailer that
can have a driver team.

Barranquilla | Bogotá | Cartagena

CURTAIN SIDE
Side access of the load due to a removable curtain. It gives the protection of dry van with the
convenience of a flatbed for building materials, industrial and general cargo

Standards Common Lengths: 26-53 feet

Capacity Max Weight: 44,000 lbs.
Width: 9‘Height: 9’

PUP TRAILER

Common lengths: 28 feet

Width: 96-102 inches

Height: 12.5 - 13.5 feet

Door type: Swing Door/Roller

door (varies by carrier)

Capacity

Max Weight @ 28 ft length:

22,000 lbs.

Max Pallets @ 28 ft: 14 Pallets

Barranquilla | Bogotá | Cartagena

STRAIGHT TRUCKS

Enclosed Straight Van: For larger

Sprinter Van: For small cargo or packages, cartons, bundles, and
courier service. *Not dock height. crates.

Flatbed Straight Truck: machines,

Single Axle Van: For small to medium- building supplies, metals, and
size packages/cartons. construction equipment.

ROAD WEIGHT AND SIZE LIMITATIONS.

The regulations are not limiting how much freight can go on a trailer, but the total weight of the
vehicle and the axle weights.

Axle 1- --------------- 12,000 LBS Max

Axles 2,3 ------------- 34,000 LBS Max
Axles 4,5 ------------- 34,000 LBS Max
Axles 1,2,3 ----------- 46,000 LBS Max
Axles 2,3,4,5 -------- 68,000 LBS Max
Axles 1,2,3,4,5 ------ 80,000 LBS Max

• Gross Weight: The maximum allowable total gross weight for trucks on U.S. Interstates is
80,000 lbs., including tractor weight, chassis and container weight, cargo weight, etc. Off-
interstate limits are typically lower. Please refer to the American Trucking Association's
"Summary of Size and Weight Limits"
(http://freightagents.net/resources/RoadlimitationsUSA.html).

• Axle Weight: Allowable gross weight on a single or set of axles is regulated by individual
states. States typically allow 34,000 lbs. per tandem axle and 20,000 lbs. per single axle.
Please refer to the American Trucking Association's "Summary of Size and Weight Limits".

Note: Over 50% of all U.S. citations issued are for axle weight violations, usually the result of uneven
distribution of the load inside the container.

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DRIVERS AND DRIVING REGULATIONS (HOS)

14-HOURS DRIVING 11-HOUR DRIVING LIMIT 60-HOUR/7-DAY AND 70-

WINDOW LIMIT (30-MINUTE BREAK) HOUR/8-DAY DUTY
LIMIT

General After being off duty for 10+ During the 11-hour driving limit, the During the previous 7 days/8
Rule hours, driving permitted up to driver cannot drive over 8 hours days driver cannot be on duty
11 hours during a 14-hour without at least a 30-minute break. more than 60 hours/70 hours
window. total

Specifics A 14-hour on-duty window 30-minute break counts against the If trucking company does not
begins when any kind of work 14-hour on-duty window limit. operate every day of the week,
starts. the driver must follow a 60-
hours/7-day rule.

A 14-hour on-duty window If the trucking company

doesn’t stop by break, nap, or operates every day of the
lunch. week, driver may follow a 70-
hours/8-day rule.

Driver can do other work after RESTART: Driver can restart

the 11 hours of driving (but the on-duty clock by taking off
cannot drive) up until 14 hours. 34 consecutive hours
(including sleeper berth). After
34 hours, weekly on-duty
hours restart at ZERO.

Exceptions 30-minute break not required if

short-haul (if driving within 115.08
roadmap miles from normal work
reporting location) and if released
after 12 hours.

30-minute break not required if:

non-CDL drivers operate in 172.6
roadmap miles from reporting
location.

Examples Driver had 10 continuous Driver begins work at 0600 am and

hours off and came to work at driving at 0700 am. Driver takes a
0600: am. Driver could drive break at 0200 pm after driving 7
any 11-hour period until 0800 hours. Driver may drive another 4
pm and then would need 10 hours, until 0630 pm. At 06:30 pm,
consecutive hours off duty to driver must stop driving and cannot
reset the 14-hour window. drive again without 10 consecutive
hours off.

Drive for 8 hours, take a 30-minute

break, and then drive another 3
hours for a total of 11 hours.

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OTR MODALITIES
In the US, the movement of goods by truck offers shippers infinite flexibility due at a relatively low
cost. Truck transportation can move large items faster than rail as the shipment does not depend
on the railroad's timetable.

OTR
Over the Road

FTL LTL
Full truck loaded Less than truck loaded

PARTIAL VOLUME
Up to 2 customers more than 6 plts or
Up to 26/30 ft
5000 lbs

Less than 4 plt

10 ft or 4000
Up to 44000 lbs lbs

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TL: “Truck Load” or “Full Truck Load”:

Standard Service
• BUSINESS to BUSINESS
• DOCK to DOCK
• Transit times are often accurate.
• Allow pickup and delivery appointments.
• 2 free hours for loading/unloading.

It is the best way to transport freight if you have a large shipment (usually around 16 pallets or
more). It is a considerably faster way to transport your freight, compared to LTL shipping, as you
will save time by not having the driver stop for multiple pickups or having to load and unload freight
throughout the trip. With this in mind, truckload is generally more expensive than shipping your
freight LTL.

You can also use this modality if you have a delicate shipment that you are not comfortable having
the truck space shared with multiple other shipments. In this case, we will call it a DEDICATED
SERVICE. This also applies if there is a time-sensitive freight: FTL freight is sent directly to its
destination (vs. routing through a hub system), which results in shorter transit time.

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LTL: “Less Than Truckload”

Standard Service:
• BUSINESS to BUSINESS
• DOCK to DOCK
• Transit times are estimated.
• 2hrs window for pickup is a MUST.

LTL carriers generally utilize van trailers that are covered or enclosed trailers. There are a few
refrigerated LTL carriers who utilize temperature-controlled trailers, but Reefer Orders are mostly
for FTL since finding more products to be moved with the same temperature can be tough.

o May not take more than 10FT of the trailer or exceed the CFT (Cubic Feet) limits
depending on each carrier.

o Weight may not be greater than 3,500 LBS per piece. The only YRC can handle
pieces weighing up to 6,000 LBS.

o If the total weight exceeds 10FT or 4,000 LBS total, your shipment can be quoted
as VOLUME. However, keep in mind limits may vary from one carrier to another.

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PARTIAL/VOLUME SHIPPING:
Partial Truck can be thought of as the next step up from LTL freight. Partial truckloads fall
between LTL and full truckload, typically involving shipments over 5,000 pounds or 6 or more
pallets.

BENEFITS OF PARTIAL TRUCKLOAD SHIPPING

• One truck: Partial truckload shipping allows your freight to stay on one truck for the
duration of transit. When only one truck is involved, the freight is loaded and unloaded one
time, which means less handling and faster transit times than LTL.

• No freight class is required: Freight class is not required for partial truckload shipping,
which can help you avoid extra charges associated with freight reclassification if you
happen to get it wrong.

• Less freight handling: When freight is handled less, the chance for damage is reduced.
Partial truckload can be ideal for shipments susceptible to damage during loading and
unloading.

Source: www.freightquote.com

PARTIAL

• Private Carriers
• Rates based on distance and quantity.
• Rate Agreement or Rate Confirmation.
• One quote can be applied to several orders.
• Usually faster than LTL and VOLUME, however, it might require flexibility for PU and DEL.

VOLUME

• Common Carriers
• Although sometimes referred to as partial truckload, volume LTL has distinct size
requirements and does need product crated or on pallets, not a requirement for partial TL
shipments.
• QUOTE# needed.
• Annual contracts with discounts.
• Short Exp. Date
• One quote can only be applied to one shipment.
• Not good for time-sensitive orders.

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“To give an example, a 10,000-pound LTL shipment (seven pallets, class 70) moving from
Chicago to Los Angeles can cost between $2,000 and $4,000 on a top-tier LTL carrier (but may
be subject to linear foot provisions, leading to additional charges) and between $2,700 and $3,200
as a full truckload (depending on service requirements and capacity). However, that same
shipment as a partial truckload costs between $900 and $1,050—a substantial savings
opportunity for shipments that meet the criteria of a partial truckload.”
Source: http://www.inboundlogistics.com/cms/article/benefits-of-partial-truckload-shipping/

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MAIN DOCUMENTS
WHAT IS A BOL?

The bill of lading is a required document to move a freight shipment. The bill of lading (BOL) works
as a receipt of freight services, a contract between a freight carrier and shipper, and a document
of title. The bill of lading is a legally binding document providing the driver and the carrier all the
details needed to process the freight shipment and invoice it correctly.

When you book a shipment with us, the freight bill of lading is automatically generated based on
the shipment details entered during the quoting and booking process. The bill of lading should be
provided to the carrier on pickup. A copy of it should also be attached to the packaged freight.

WHAT DOES IT CONTAIN?

- Names and addresses: The full names and address of both the shipper and receiver
(consignee) should be legible and easy to locate on the document.

- Purchase orders or special reference numbers: These numbers may be important to your
business or a necessary reference for freight to be released for pickup or accepted at delivery.

- Special instructions: Here is where you will note instructions for the carrier that are not extra
service requests like liftgate or delivery notification.

- Date: This is the pickup day, and it may be needed as a reference to track your freight or when
you reconcile shipping invoices.

- Description of items: Shippers should note the number of shipping units, the dimensions, and
weight, as well as information about the material and its makeup.

- Packaging type: Note whether you are using cartons, crates, pallets, and/or drums when
shipping.
- NMFC freight class: Freight classes can impact the cost of your shipment. Freight shipments
are broken down into 18 classes based on weight, dimensions, density, storage capability, ease
of handling, value, and liability.

- DOT hazardous material designation: Hazardous shipments must be cited, and special rules
and requirements apply when shipping.

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Barranquilla | Bogotá | Cartagena
WHAT IS A POD?
The delivery receipt copy of a freight bill indicating the name of the person who signed for a
package with the date and time of delivery, confirming the product was received in perfect
conditions and complete.

The POD will also show if there were any Shortages, Overages, or Damages. (OS&D): (OS&D)
are discrepancies between the bill of lading and the freight on hand. Most of these discrepancies
are noted at delivery, pickup, or interchange. Overage is when freight on hand is not shown on
the BOL. Short is when freight shown on the BOL is not on hand. Damaged means that there is
damage to the freight

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CARRIER’S LIABILITY AND FREIGHT INSURANCE.
As defined by The Law Dictionary, A common carrier is liable for all shipment loss, damage, and
delay except for that caused by an act of God, the act of a public enemy, the act of a public
authority, the act of the shipper, and the goods' inherent nature.

Every freight shipment is covered by some form of liability coverage, determined by the carrier.
The amount of coverage is based on the commodity type or freight class of the goods being
shipped and covers up to a certain dollar amount per pound of freight

After filing a claim, If the carrier accepts the evidence provided by the shipping customer, then
they will pay for the cost of repair (if applicable) or manufacturing cost, not the retail sell price

Freight insurance is a good way to protect your customers and your business from loss or damage
to your freight while in transit. There is an extra charge of course, and it is typically based on the
declared value of the goods being shipped. Most freight insurance plans are provided by third-
party insurers.
CARRIER LIABILITY VS FREIGHT INSURANCE IN THE CLAIM PROCESS

If your freight is only covered by carrier liability coverage:

▪ Your claim must be filed within 9 months of delivery

▪ The delivery receipt must include notice of damage
▪ Proof of value and proof of loss is required
▪ The carrier has 30 days to acknowledge your claim and must respond within 120 days
▪ Carrier negligence must be proven

If your shipment is covered by freight insurance:

▪ Proof of value and proof of loss is required

▪ Claims are typically paid within 30 days
▪ You are not required to prove carrier negligence
Source: http://blog.partnership.com/post/2017/06/02/carrier-liability-vs-freight-insurance-what-s-the-difference.aspx

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 FREIGHT DEPARTMENTS

SALES QUOTING DISPATCH CUSTOMER ACCT

SERVICE

•Attract •Get rates for •Contact • Track and •Accounts

customer the shipper and Trace payble and
•Service customer receiver • Follow up receivables
portafolio •Identify the •Issue BOL PU and DEL •POD
•Retain best •Schedule • In transit Retrieval
current modality PU's Updates
customer •Set PU/DEL • Claims
Appt • OS&D

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 PHASE 2
FULL TRUCKLOAD

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Barranquilla | Bogotá | Cartagena
What is the FTL industry?

The Full Truck Load industry (FTL or TL) is a service offered to ideally transport large shipments
or high risk and delicate freight, or those who we may consider as a time-sensitive shipment that
accomplishes with the characteristics of this industry.

BENEFITS OF TRUCKLOAD SHIPPING.

• Faster transit times: Goods that are shipped via full truckload generally arrive at their
destination quicker than goods that are shipped via LTL’s hub-and-spoke model.

• Less chance of damage: Full truckload shipments are generally less susceptible to
damages as they are handled less times than LTL shipments.

• Rates: If shipments are large enough to require the entire use of a trailer’s space, it could
be more cost-effective than booking multiple LTL shipments.

• Tracking: You may have access to the driver’s contact information, allowing you to easily
follow up and get updates directly from him.

TRUCKLOAD SHIPPING BEST PRACTICES.

• Be informed: Shippers should research to understand the supply and demand for
truckload equipment and how it impacts rates.

• Be consistent: Shipping the same amount of freight, on a regular schedule, to the same
locations, could help you to secure consistent capacity.

• Be flexible: Shippers that plan and leave time for their shipments to fit a carrier’s schedule
could realize cost savings.

• Be efficient: Packaging shipments so they are loaded and unloaded easily will improve
efficiency and productivity.

Source: www.freightquote.com

Let’s get started!

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Truckload Equipment Types
The term “equipment” means “what kind of truck” in the shipping industry. Similar to the air travel
industry, these different pieces of equipment are used for different types of freight shipments.
Apart from their uses, their costs are also different. Let’s start with the most common piece of
equipment, the DRY VAN.

A dry van is your normal, 53 ft. or 48 ft. semi-truck. It is enclosed, not heated, or cooled, and has
swing doors in the back for loading and unloading freight. If you have ever driven on an interstate,
you are familiar with this sort of equipment. A dry van can transport any freight that fits inside the
trailer (standard dimensions are 102 in. wide and 110 in. high), or 26-28 standard-sized pallets.
The typical maximum weight these trailers can scale is 45,000 lbs., but this will vary from carrier
to carrier depending on preferences and trailer type.

If you are looking to move bigger equipment that won’t fit inside a dry van, you’re looking for a
FLATBED TRAILER. This equipment is primarily used for large equipment that needs to be
sideloaded. The trailers most used are 48 ft. in length, with a maximum weight limit of 48,000 lbs.
Keep in mind that flatbeds and dry vans do not offer the services of a liftgate. Another important
aspect to consider when it comes to shipping on flatbed trailers is the security of the freight once
it’s on the trailer. Apart from being subject to the elements, you will need to make sure your freight
is properly secured to the deck. Carriers often offer straps and tarps to ensure that your freight is
as secure and safe as possible.

The third type of equipment available for a full truckload shipment is a STEP-DECK TRAILER.
This equipment is very similar to a flatbed truck in that it has no roof or sides, however, a portion
of the trailer deck is lower. This is in place primarily to increase the legal height the freight can
occupy. For a standard flatbed trailer, the maximum height is 8.5 ft. while a step-deck allows a
maximum legal height of 10 ft. Keep in mind this drop- deck limits the length of the trailer in a way
a flatbed does not. There are also several variations of this type of trailer that can accommodate
commodity heights up to 13 ft., but as with most specialized pieces of equipment, availability can
be limited.

The final piece of equipment we will discuss is a refrigerated truck, also known as a REEFER
truck. This is for shipments that are temperature controlled whether it be for freezing or heating
purposes. This type of equipment is found nationwide in both 53 ft. and 48 ft. lengths. Although a
common piece of equipment, they can often be difficult to source as demand shifts throughout
the year, moving the equipment into different markets, and limiting availability. The typical
temperature range in these trailers is from -10 degrees Fahrenheit to 75 degrees Fahrenheit.
Pricing will typically be more expensive than a dry van as you are also paying for the fuel to run
the motor on the trailer, which regulates the temperature.

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Carrier vs. Broker
These terms are not synonymous, but they do complement each other. Together they act as the
building blocks of the freight shipping industry. Let’s start with the carriers.

The aptly named FREIGHT CARRIER is a company that owns and operates a fleet of trucks that
move freight from point A to point B. They are the foundation of the freight industry, and vary in
size and scope, from small local carriers with a limited number of trucks that service niche
geographical areas, to national carriers with hundreds of trucks at their disposal and hubs across
the country.

Next, we have the DISPATCHERS, the men, and women who designate where and when their
drivers need to pick up and deliver freight. These dispatchers are in constant contact with their
drivers, confirming pickups and deliveries are completed and scheduled correctly.

There is also a CUSTOMER SERVICE DEPARTMENT, made up of representatives who handle

most of the incoming pickup requests as well as tracking any shipments that are currently in
transit. Carrier customer service teams are capable of assisting customers in several ways and
are often the first responders for any issues that might occur.

As we’ll discuss later, sometimes freight can be damaged, lost, or delivered short, and most
carriers have an OS&D department. OS&D stands for Overages, Shortages, and Damages, and
they’ll be the one to handle any issues of damage or loss with your shipments.

We’ll discuss freight carriers in more detail as we make our way through this material, but let’s
switch sides and take a look at freight brokers, specifically what they are and what they do.
Brokers act as coordinators for your freight shipping, and though they won’t be driving the trucks,
a good freight broker will be every bit as “in the loop” as the dispatchers, drivers, and dockworkers.

A FREIGHT BROKER is a third-party company that acts as a bridge between freight carriers and
freight customers. The biggest misconception for a freight beginner is that these two (Brokers and
Carriers) are the same. They are not. A simple way that I like to think of it is this: If the freight
industry is a giant machine, the freight carriers are the moving parts, and the freight brokers are
the oil that makes sure everything runs smoothly.

It’s important to understand the term “third party” when dealing with a freight broker. While a
freight carrier will physically be handling your freight on its shipping path, most of the time a freight
broker will never actually see your freight (outside of an occasional picture). While there will
always be geographic proximity between carrier and customer, a broker works remotely through
a transportation management system that we’ll discuss in greater detail later in this book.

As with any industry, there are varying levels of service delivered by freight brokers depending on
the company, reputation, culture, etc. The first purpose of the freight broker industry is associated
with lower shipping rates from the carriers due to volume. This service is offered by all freight
brokers, and for some will serve as their primary and sole service. But how does the freight broker
get better rates than a customer going directly to the carrier? The simple answer is volume/bulk.
A freight broker will have multiple customers that ship under their account and this number can
stretch from hundreds to thousands of customers. With freight brokers bringing all this business
to the carriers, they are in a higher position of power than your average shipper. This power

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enables them to negotiate lower rates and contracts that are unavailable to the typical consumer.
The freight broker can then pass these lowered shipping rates to their customers. This is the most
basic service offered by a freight broker: cheaper shipping rates.

The second service that a good freight broker should provide is customer service. While some
freight brokers are content to only offer their customers lowered shipping rates, other freight
brokers (the good ones) consider the “cheaper rates” part of their service the necessary, but
ultimately less-important, facet of their business. The primary goal of a good freight broker is to
develop a strong customer/ broker relationship. Many of these freight brokers consider
themselves “full service,” in that they will handle all aspects of their customer’s shipments. That
can include scheduling pickups, dealing with delivery issues, claim issues, damage issues, or a
host of other situations. This sort of service provides a sense of comfort and convenience for
many customers. A good freight broker is a true shipping professional, and these freight
professionals know the ins and outs of a complex shipping world, so their customers do not have
to.

In conclusion, carriers and brokers are not interchangeable, though they work closely together in
the freight industry. A freight carrier is physically responsible for moving shipments from point A
to point B. A freight carrier is a company that owns trucks, employs drivers, and charges for their
service of picking up and delivering freight. On the other hand, a freight broker is a third-party
company that offers lower shipping rates to customers. A good freight broker also offers an array
of customer services and is always working to develop meaningful and helpful customer
relationships to handle all aspects of their customer’s shipments.

Parties Involved

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 Types of Carriers
Private Carrier

•They select their customers and are not obligated to serve all public.
•The are able to negotiate their rates based on miles, weight, season and other factors.
•Rate agreement is signed once agreed upon rate.
•Normally prefer FTL, but can also offer Partials.
•They work with brokers
•Private companies, based in one or a couple of states, limited coverage in the country.

Owner Operator

•Owner-Operators are those individuals that own and operate their own trucking business. They
may lease on to a carrier or they may operate under their own authority.

Documents needed
WHAT IS A RATE AGREEMENT?
A rate confirmation is a legally binding document that is given to a carrier by a freight broker that
lists all pertinent information related to a load that you will be hauling on their behalf. It is the
first, and most important step of the load booking process

It is a legally binding document providing the driver and the carrier all the details needed to
process the freight shipment and invoice it correctly

It contains:
• The Broker’s name and contact information
• A unique load number and reference numbers
• The shipper’s complete information, date, and time
• The consignee’s complete information, delivery date, and time
• A general description of the cargo
• A negotiated rate that you will haul the load for
• If there are multiple pickup or delivery locations, they should each be listed on the
document.
• Any additional instructions, fees, or accessorial.

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Barranquilla | Bogotá | Cartagena
PURCHASE ORDER
Purchase order (PO) is an order request that is a legally binding document sent from a buyer to
a seller. This document contains details about the item type, quantities, and agreed-upon prices
for products or services. Buyers also use purchase orders to ensure the products that arrive are
indeed the products they ordered.

The purchase order includes:

• A PO number
• A shipping date
• Billing address
• Shipping address
• The requested items
• Quantities and price

PACKING LIST / PACKING SLIP

A packing slip is a shipping document that comes with an order, usually inside an attached
shipping pouch or inside the package itself. Sometimes referred to as a shi pping list, waybill,
packing list, bill of the parcel, or unpacking note, a packing slip provides buyers with product
details that ensure the product is indeed what they ordered. Packing slips are only required if
products are being shipped and received for sale.

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 SCALE TICKET
A printed weight ticket from a scale certified or
inspected by a government authority such as the
Dept. of Agriculture, indicating the date weighed,
the weight of the shipment, and the vehicle ID of
the unit being weighed.

Note: remember de road weight limitations

ESCORT SERVICE RECEIPT

T.W.I.C. “Transportation Worker Identification Credential" This is issued by the US Federal

Government, TSA Transportation Security Administration. The TWIC card is a "biometric" ID card
that costs money to obtain, involves going through a security check, has a biometric chip and
photo identification, and lasts up to 5 years. In certain US ports, since the last part of 2008, this
is required of all drivers delivering cargo "directly" to the sea-port. In case the driver does not have
a TWIC Card he will need to pay for the escort service and get a receipt as proof.

LUMPER RECEIPT
A lumper charge is a fee charged to the carrier when a shipper or consignee utilizes third-party
workers to help load or unload the trailer contents. Lumpers are often used at food warehousing
companies and grocery distributors. These fees are often reimbursable to the driver by the shipper
or the freight broker.

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Truckload Quotes
Let’s begin with the foundation of truckload shipping and introduce a few terms that we’ll visit
again. Unlike LTL shipments, there is not a system or set of parameters that can be applied to
“standardize” truckload shipping. This lack of system lends to a more fluid shipping industry than
that of the LTL variety and allows for more negotiation between broker, carrier, and driver. Instead
of abstractly trying to explain the details of a truckload shipment.

The first step in acquiring a full truckload quote is assembling information, some of which is
information also needed for a typical LTL shipment. For an accurate truckload quote he will need:

• Origin and destination zip codes, as well as the estimated date of pickup.
• Total piece count and weight including dimensions of the pieces and if they are
stackable.
• Commodity being shipped including the freight value. Unlike LTL, a freight class is
not used in full truckload shipping, and pricing is subjective and dependent on
value and insurance.
• Equipment being used for shipment. If you’re unsure of the equipment needed,
speak with your Truckload representative for advice.

Once all the information has been compiled, it’s time to take it to the freight broker. From there,
they will post the load on a series of Internet LOAD BOARDS. Carriers monitor these load boards
across the country. A good broker will also reach out to their network of trucking carriers and
operators as more options allow for better pricing and service. Price negotiations will commence
between the broker/shipper and the carrier, and depending on availability of drivers, freight size,
distance, and local freight market, a price will be agreed upon.

Full truckload price negotiation and carrier vetting are the primary reason we suggest using a
qualified freight broker when it comes to shipping full truckload freight. To get the cheapest rates
from the carrier, certain information is needed that can only be provided by a freight professional.
Also, freight professionals have the experience and tools to properly vet and secure the carrier.
Making sure the carrier has the proper registrations, operating authorities, and insurance are
critical in this process. If your freight moves with a carrier who does not have these things in place
then you, your freight, and fellow motorists are at risk.

Unlike LTL shipping, a full truckload shipment will remain on the same trailer for the entirety of its
transit. This differs wildly from standard LTL shipments, where terminals are used to move the
freight from shipper to consignee. With a truckload shipment, once loaded, the freight will not be
unloaded until its final destination. Even if the transit time is more than one day (Which in the case
of Joe is true, it takes more than one day to get from Florida to California) the freight will remain
on the same trailer.

When it comes to protecting your full truckload freight, the process is similar to LTL shipping.
Carriers will be required to carry a certain amount of insurance (usually around
$100,000) and then if damage does occur the carrier will be responsible for covering any issues.
You can also buy third party insurance, just as in LTL, and the third party will pay out the claim
and be compensated from the carrier.

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Brokerage for TL
Brokerage or brokerage service is the arranging of transportation or the physical
movement of a motor vehicle or property.

Who is the Broker? Broker means a person who, for compensation, arranges, or offers
to arrange, the transportation of property by an authorized motor carrier. In simple words,
freight brokers match cargoes with carriers who will physically move it.

Keys to be a good broker

In case you are a broker, you must have these

characteristics if you want to succeed and
accomplish the expectations of the customer
and ensure your personal and professional
growth.

How to determine the rate?

If you want to determine the rate for a TL shipment you must consider the Line Haul Ratel, which
are a function of the distance and the weight/volume of the cargo; and the Fuel Surcharges (FSC)
which is a portion of the rate to account for the cost of fuel. This FSC fluctuates based on the
national average cost of fuel for that week.

Fuel
Line haul Rate
Surcharges

Difference between own assets and brokered assets.

Own Assets: A company that owns the trucks and act as a carrier, having availability and capacity
to offer to their customers.

Brokered Assets: Whenever a broker needs to find capacity with companies who own trucks
(broker does not own trucks), he can look for private carriers willing to take the orders.

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What is the preparation for this process?

As the broker you must have the following information:

7. SHRP and RCVR operations hours
1. Origin and Destination Zip Codes and requirements (appts, drop trailer,
2. Type of load (F/P), live load, after-hours docks), total
3. Linear footage (if partial) millage,
4. Total weight or weight per piece 8. Sense of how much are we willing to
5. Additional services pay (total or per mile) forecasting
6. Nature of the load and special capacity and availability of the load
requirements such as hazmat, food- 9. Day of the week shipping, especially
grade handling. in short runs.

Remember: Be knowledgeable!

This requires to understand the market behavior and be aware of any special events that are
affecting pricing nationwide such as oil price, weather conditions, offer and demand, season, the
concentration of capacity (knowing every area and equipment concentration)

• Availability during Produce Season is tight.

• Hurricanes, snowstorms, and blizzards can affect pickups or deliveries, causing delays.
• Regions of the country with low capacity and business.

You are ready to negotiate!

Gathering all the facts on steps 1 and 2 and using your software you will determine what is going
to be your initial offer for the freight. Understanding in which scenario you are biting on (broker
calling a carrier to offer a load, or carrier calling brokers to request load) to optimize prices.

• If a broker calls a carrier to offer a load: Carrier will consider if the load is a short or long
run and when it's convenient to pick it up (over the weekend will be more expensive due
to layover), or if he can easily find back-hauls (if he knows in the area is easy to find a load
and go back to his base, prices should be lower. If the area is tough and it will be hard to
find backhauls, he will usually charge a round trip). Brokers should portrait the information
of the load to make it more attractive, things such as hours of operations, weight, and
receiving methods (FCFS is usually preferred).

• If carrier calls a broker to request a load: Carrier is an urge to get the load either because
he wants to get to his home base area (backhaul) or he wants to complete a trip to run
directly to that specific area (partial loads). In these cases, prices are going to be better
because the broker can work with the need of the carrier to get the load instead of the
broker offering the load.

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 Make sure to make a load more attractive

A. Long runs mean more miles and more money.

B. Lower weight means faster runs and less likely for a truck to worn out.
C. Short runs mean less money but more frequency and more availability.
D. Metro areas imply difficult access resulting in extra services.
E. Time Sensitive orders will always involve more money.

Safety, carrier’s approval, and liability

As a broker you must have this information before booking your load:

A. Time the carrier has been in business or age of DOT expedited: we are not able to work
with the carrier with less than 1-year operating.

B. Motor Carrier # (MC#): verify in your system if it is an approved carrier already, otherwise
we will need carrier packet for completion.

C. Point of contact which should be the dispatcher in all cases including phone number and
email address (mandatory to be able to send Rate Confirmation and Pickup information)

D. Carrier packet: W9, certificate of liability, ICC Authority, Etc.

You should never forget to contemplate the following before booking and approving a carrier:

• Company's reputation and years of operations.

• Overall safety rate available in one of the DOT's approved safety carrier's website which
describes safety score, driving hours, scheduled maintenance, and frequency.

• Compliance with the minimum required insurance liability of $100.000 per incident.

Scenarios to avoid if you are a broker

Miss-informing the Sending the rate

Not having a 2nd dispatcher or confirmation
option missing contact without setting up
information. the carrier first

Providing
Delaying rate inaccurate
confirmation and
information for
instructions. pickup or delivery.

Once the load has been booked, and the rate agreement has been done, it is time to dispatch.

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Dispatching the freight
The dispatcher will be the one in charge of assigning the driver to the shipment that was booked,
making sure that he can accomplish the customer requirements regarding the times and dates
requested,

FTL loads offer a considerably more simplified dispatching process. However, any delays or
setbacks in the delivery process for FTL shipments can carry more serious ramifications, given
that buyers have spent a premium for fast and efficient delivery of what are sometimes highly
time-sensitive or high-risk loads.

The trucking industry relies on safe drivers to complete deliveries, and they're typically thought of
as the foundation of the system, but they're not the only employees responsible for its success.
Dispatchers play an essential role as well and they are in high demand.

Truck Dispatcher Duties & Responsibilities

Truck dispatchers have numerous other responsibilities as well. They can vary slightly from
company to company.

• Keep records, monitoring drivers' daily logs for errors or violations, and monitoring their
working hours and equipment availability.
• Keep tabs on the weather at all drivers' locations to be able to flag potential issues,
typically with the aid of numerous computer programs.
• Serve as a reliable point of contact to balance drivers' health and safety with customer
requirements.
• Coordinate and manage the most efficient loads to remain cost-effective as a company,
combining shipments based on their routes and timeline to minimize how many trucks and
drivers are out.
• Determine the best delivery methods and negotiate rates directly with vendors and
customers and get the necessary documents and permits that drivers will need when
shipping chemicals or livestock.

Truck Dispatcher Skills & Competencies

A certain skill set can make the difference between success and failure.

• Computer skills: You should be proficient with computer technology, able to learn
company-specific programs, and access GPS monitoring programs.
• Analytical thinking: This can help you assess situations like unanticipated road closures.
Should you reschedule or send the driver on an alternate route?
• Language skills: You should be fluent in English and knowing a second language as well
can be very advantageous in case you are dealing with non-American drivers
• Interpersonal skills: You'll be working with drivers, customers, and vendors, not all of
whom will necessarily have the same goals in mind

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How to properly set an appointment
The logistics industry is all about attention to detail, the reason why as part of it we need to be
aware of the customer needs and their requirements, most of them will have a ready time for the
product a deadline to receive it, that is why it is important, mostly in the FTL industry to make sure
that the times are accomplished to fulfill our clients and build stronger relationships with them.

What is an appointment?
To be organized is a key for the logistics industry, that is why it is so relevant to identify if for out
shipment we have the arrangement to arrive at a time and place for the Pickup or Delivery.
Regardless, not all of the time you will have a strict appointment and you will need to identify it
to ensure the success of the shipment.

Appointment:
Some facilities will have specific time and hours for picking up the freight or deliver the
goods.

First Come First Serve (FCFS)

Depending on the facilities they will have a window time to Pick up or deliver the freight,
but they will work depending on the time that they arrive, meaning that if you arrive first,
you will be loaded or unloaded first.

Information for the PU and DEL

For scheduling an appointment is important to always keep in mind the information provided by
the customer, where he must specify the locations, addresses, zip codes, contact information,
and shipping hours if possible, as well as the commodity, quantity, and dimensions of the freight.

Tendered load (EDI):

Mostly the information aforementioned is transferred through EDI and it is shown as a
tendered, meaning that, the Electronic Data Interchange will provide on your TMS the
information and will advise that it must need to be set an appointment on that load.

References numbers
Customers have different needs, and every single of them is different, as well as the multiple
trucking companies or carriers, regardless, they all share the same thought: organization is key
to a successful business. Having said this, for them is important to identify the shipments and
freight they are moving, as well as make sure all the parties involved are aware of it, that is why
as a track & trace agent you must always have references numbers for your load such as:

• Shipment ID • PU / DEL References

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How the Pickup Process is done?
Before scheduling the pickup is important to identify besides if it is an appointment or FCFS
facility, how the process will be once the driver arrives because it can be a Preloaded trailer or a
Live Load

Preloaded Trailer Live load

Trailer is loaded prior the driver arrives at The driver must be present during the
the facility so he can bobtail and start rolling loading process.
immediately

How the Delivery Process is done?

Before scheduling the delivery is important to identify besides if it is an appointment or FCFS
facility, how the process will be once the driver arrives because it can be a drop trailer or a Live
Unload

Drop Trailer Live Unload

Trailer is left at the facility once the driver The driver must be present during the
arrives, so the warehouse will unload the unloading process.
product and emptied the trailer without the
driver being present.

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Key points when setting an appoint for FTL

Window time Transit time

The time where the driver is allowed to PU This is the time that driver will have to go
or DEL the freight according to the facilities from the shipper's location to the receivers,
availability it will depend on the miles, it is important to
know that commonly 500 miles will mean 1
day in transit.

How can you request an appointment?

To properly set an appointment you will need to identify if the facilities will schedule it on a
website, over the phone, or by email and you should never forget to include or mention the
relevant information about the shipment, ensuring to provide dates, times and the references
numbers requested.

Website

Email

Over the phone

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How does tracking work?
What is Tracking?
Tracking is precise and continuous follow up of your shipment Making sure you are obtaining the
appropriate update that will help you meet the customer’s need, using technology, and
communication as your biggest asset for reporting.

What a Track & Trace agent does?

Is about having a sense of urgency when reporting, making sure that everything that was planned
to move the cargo is being executed

Service errors:
• Bouncing: When the driver won’t make the appointment and you have to reassign a new
one.
• Late pickups: The driver won’t make the pickup appointment. It will affect your credibility
with the customer
• Late Deliveries: The driver won’t make the delivery appointment. Plan by making sure to
leave a window for unforeseen delays to make sure you can meet the appointment.
• Rolling loads: When for some reason the driver won’t be able to meet the appointment
and now is subject to the facilities’ availability.
• Wrong equipment dispatched: Asking what equipment is necessary and making sure it
matches the customer’s needs.
• Missing information: Providing incomplete updates because you don’t have all the
relevant information needed from the carrier (e.g. point of contact with the dispatcher,
driver’s name).
• Waste of time: Not providing follow up or tracking information. If you are tracking and
then reporting incorrectly.

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Information you should always know as Track & Trace Agent

Shipper & Receiver Information

•Who to contact to confirm pickup and delivery appointments
Carrier Contact Information
•Point of contact with the driver
Shipping and Receiving Hours of Appointments
•To coordinate driving times for the driver
ETA for Pick up or Delivery
•Track drivers location to ensure he will make the appointment
Pickup or Deliveries Reference Numbers
•Important when you are calling a facility to get infomration about your
appointment

Parties Involved
• Customer.
• Sales Representative.
• Track & Trace Agent.
• Carrier Representative.
• Carrier.

Load Statuses
• Open: Load is in the system available to be assigned to a broker.
• Reserved: Broker assigned. Negotiation starts.
• Covered: Rate agreement, carrier assigned.
• Dispatched: This is when you come in. The driver is assigned and will be in transit to
the shipper’s location.
• At Pickup: Arrived at the facility, dock assigned.
• Loaded: Confirm the truck is loaded and sealed and has a padlock added.
• In transit: Going from shippers’ location to destination
• At Consignee: Arrived at the destination.
• Delivered: Unloaded. POD signed.
• Tord: Truck ordered, not used.
• Hold: Unforeseen delay

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Different ways to track a shipment

• Over the phone • Email Update

The most common and quick way to track. Some carriers do not provide updates on
Track & trace agent must contact the the phone (Do not call carriers) that is why
dispatcher or the driver and get an update Track & Trace agent must send an email to
on the location of the load, in and out times, the person in charge on carriers end to
or any other, depending on the status upload the situation of the load.

However, it may vary depending on the status of the shipment:

Unassigned driver:
• Call the driver 15 minutes after the load was booked to confirm if he aware: Booked at
10:45, then make a follow-up call at 11:00.

Assigned to Dispatch: Dispatching driver

• Driver must be empty and ready to pick up our load
• Always get additional info on ETA, this will help determine at what time you should make
your next follow up call: If the driver arrived at the destination and he hasn’t been
assigned to a dock yet, follow up in 15 minutes to confirm if he was checked in yet.
• Drivers must be dispatched 2 hours before the appointment, or we will live bounce the
load: if the pickup appointment is at 17:00, the follow-up call should be at 15:00.

Picked up:
• After loaded, confirm ETA for delivery (notate if the driver will be late). Call 1-2 hours
before the pickup time.

In Transit/Loading begins:
• Check if the driver was assigned to a dock.
• Set 90 minutes follow up call after the appointment time to avoid detention.
• If not loaded after 90minutes, create an incident, and set a follow-up call 1 hour after.

In Transit - OTR
• It could be a multiple-day transit and you should follow up at regular intervals with the
driver or with the TMS for your updates. Ask for an ETA on the delivery. Make a final call
at least 1 hour before the delivery to confirm he will meet the appointment.

Tracking of deliveries
• If the delivery appointment is after 9 am call 2 hours before the appointment. If the
appointment is before 9:00 then call 30 minutes before. Once the truck is unloaded, ask
for the In and Out times.
Once delivered, always request paperwork.

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 What needs to be in your report?

WHAT
WHO WHERE
did you talk to? is the current status of
is the driver right now?
the driver?

WHEN
Any additional
is the driver arriving infomration confirmed
to his next location on the call

If you know what questions to ask, you will be able to manage the conversation and only focus
on what you need and avoid assessorial. Asking the right questions and knowing in advance
what to ask next is what you need to do.

Have empathy
Drivers & Dispatchers can be rather blunt or rude, so that is why every time you make a call try
to gather as much information as possible, be ready before making the call. This will help avoid
rudeness in unpleasant conversations. You must be polite; they might have just been having a
bad day and we have all been there sometimes.

Constant Flow Communication

Whether a load is going smoothly or having issues, it is always better to be up to date with all
the shipments. “No news is good news” does not apply to the transportation business. You
must inform your customer about any events, and not the other way around!

Final tips

PROVIDE
ASK PROPPER ACCURATE REACH DRIVERS ALWAYS DOUBLE
QUESTIONS DIRECTLY CHECK
INFORMATION

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ADDITIONAL CHARGES AND SERVICES:
Truck Ordered, Not Used (T.O.N.U):
It’s a cancellation fee. This
occurs when canceling a truck that was com
mitted to the order already. The truck is
heading back empty from the shipper’s
facility.

Detention: Extra fee paid to the carrier when

the driver is being detained at the shipper o
consignee’s facility after the 2 free hours:

1. Loading / Unloading.
2. Rate varies from Carrier to Carrier.

Lumper: Is a person who helps the trucking

company to load/Unload freight.

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 Layover: It is an extra charge /
Compensation issued to drivers when they
spend a predefined amount of time not
moving. Applies when the driver has to stay
Escort: Applies if the driver does not have a for long periods or overnight at the facility.
TWIC card, he will be escorted into the
receiver’s facility, incurring in additional
charges.

Driver Assist: The driver assists in

Loading/Unloading process the truck.

Driver Unload: The driver must unload the

entire content of the truck by himself, and for
that, he receive an extra payment.
Fuel Advance: Helps carrier cover fuel costs
Team Drivers: A team of two drivers who
by providing a percentage of the line haul
ride together and drive the same truck in
upon pickup.
shifts.

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Hazmat Service: It’s an extra charge for
moving hazmat materials such as explosive,
flammable, poisonous, or otherwise
potentially dangerous cargo.

Comcheck: This is a form of payment most

frequently used by freight brokers to pay
contract carriers.

Drop Trailer: The carrier drops off a trailer at

the customer’s location for loading or
unloading without the driver being present.

Pallet Exchange: The Shipper and/or

Receiver requires the truck to bring in as
many pallets as they are shipping/receiving
of the same quality that they use to exchange
with them to keep their pallet inventory
stable.

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 PHASE 3
LESS THAN
TRUCKLOAD

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What is the LTL industry?
Less than truckload (LTL) It is a modality used for shipments that do not require a full 48- or 53-
foot trailer. The LTL carriers offer customers a more cost-effective method of shipping goods than
the FTL operator since carriers move goods from many different customers on one truck. When
sharing a truck with multiple customers, your freight has a higher risk of being damaged and your
freight will most likely be loaded and unloaded multiple times before arriving at its final destination
since cargo will jump from one terminal to another.

Rates for LTL freight are determined by class, weight, origin, and destination (in the transportation
industry this is commonly referred to as the “lane”), and any additional services required to meet
the shipper’s and consignee’s needs. Carriers will offer shippers and brokers discounts for freight
that they are wanting to secure for business. The amount of discount is previously negotiated with
the carrier.

BENEFITS OF LTL SHIPPING

• Reduces costs: When booking an LTL shipment, you only pay for the portion of the trailer
used. The rest of the cost is covered by the other occupants of the trailer’s space.
• Increases security: Most LTL shipments are packaged onto pallets before being loaded
onto a truck. One well-packaged pallet has a better chance of remaining secure than
shipments with multiple smaller handling units.
• Additional service options: When shipping via LTL, you gain access to special services
like liftgates and inside pickup and delivery.
• Tracking: LTL carriers offer tracking capabilities through the bill of lading number, PRO
number, PO number, shipment reference number and pick up date range, to name a few.

Types of carriers
Common Carrier

•Public companies, They are obligated to serve general public.

•They have annual contracts with great discounts.
•Normally prefer LTL and Volume modalities.
•They deal with 3PL companies.
•Commonly known in the industry, bigger coverage in the country,

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LTL HUB SYSTEM

- LTL hub system uses Terminals to serve specific areas: every pickup or delivery taking place
within this area is coordinated by this terminal, which we can call local terminal.

- Deliveries usually take place in the morning. Trucks leave their terminals full of product to deliver.

- Once the trucks are empty (1200-1400), they are ready to start picking up new shipments.

- When they are done with their pickups, trucks head back to the local terminal so the new
shipments can be routed toward their destination.

- Terminal transfers usually take place at night.

- Shipments will be transloaded from terminal to terminal until they reach the one that serves the
area where its consignee is located.

Don’t be discouraged if at first, this seems like a lot. With a little practice, freight can be easily
understood and can help grow your business by leaps and bounds when managed properly. Now
that we’ve covered the basics of LTL shipping, let’s move on to LTL freight quotes.

Let’s get started!

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LTL Freight Class & NMFC
How do the class and NMFC affect your LTL shipments? To begin, every single shipment will
have a freight class – a number between 50 and 500 designated by The National Motor Freight
Classification System. This number determines an item’s “transportability,” and is generated using
four factors: DENSITY, STOWABILITY, HANDLING, and LIABILITY. Each item will also have
an NMFC NUMBER. This number will be put on the shipment’s BOL for carrier invoice issues, as
well as cost and quoting.

An item’s density is also known as the pounds per cubic foot. Using the commodity’s weight and
dimensions, coupled with a simple math equation, you can find an item’s density rating or number.
This number is important for a variety of reasons. For some items, their freight class is dependent
upon this density rating. It’s a general rule of thumb that the lower the density of an item, the
higher the freight class. The higher the freight class, the higher the shipping cost. So, the lower
the density the higher the cost of shipping, and vice versa (Higher density = lower class = lower
shipping cost).

An item’s stowability is determined by its ability to be stowed or transported in relation to other

pieces of freight on the truck. Unlike density, there is no number-based scale to determine the
item’s stowability, and this element of freight class is somewhat subjective.

The third factor in determining freight class is the item’s handling. Similar to stowability, there is
no scale to determine this per commodity. Items that are fragile or have larger than normal
dimensions are often at higher risk to the carriers, so their level of handling will ultimately lead to
higher freight classes.

The fourth and final factor in determining an item’s freight class is the liability associated with the
item and considers the probability of the freight shipment being damaged, stolen, or damaging
other adjacent freight. So how do you make sure you are shipping your items at the correct
class?

The best way to handle a question of class is to bring it to your freight broker. This is exactly the
sort of complicated issue that brokers are made for, and you can be confident they will confirm
you’re shipping at the correct class, thereby avoiding any possibility of a re-class (We’ll get more
into re-classes later). If you do not have a freight broker, then your best bet is to reach out directly
to the carrier. Most carriers have classing agents that can help you decide the relevant freight
class for your shipment.

With so many items to ship there is bound to be some overlap and confusion for finding the correct
class, not to mention people will often lie on their freight classes to achieve lower rates. Please
do not do this. The carriers will catch on quickly, and you will end up paying for it in the end. This
means that the most important part of freight class to remember is that the higher the class, the
higher the cost. We will finish with a simple example of how freight class affects LTL pricing:

Say you are moving a pallet of steel bars. These bars will be heavy but will not take up too much
space on the truck; therefore, they have a high-density rating (the item is very dense). They are
not fragile or breakable. They are on a standard, packaged pallet that can be easily handled and
transported from one terminal to the next. They are not particularly expensive. This item will likely
have a freight class of around 50, the lowest freight class, and ultimately the cheapest.

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On the other hand, let’s say that you need to move a ten-foot-long fiberglass kayak. The kayak is
light and only weighs around 100 lbs. Using the weight and dimensions of the freight we find that
the density of the item is very low. The length of the freight is also a problem, as it doesn’t fit well
in trucks that are built to handle standard pallets. The packaging of the freight is non-existent and
there is no simple way to move the freight from truck to truck as it makes its way through transit.
The liability of the item comes into play because though it’s fragile, it is very expensive, so the
carrier will have to assume major costs if something happens and a damage claim is filed. All of
these factors add up to a higher classed item, possibly as high as 400. The difference between
an item classed at 50 and one classed at 400 can be hundreds of dollars. As you can see, the
freight class is very important when it comes to LTL shipping.

As with the entire shipping industry, the best way to avoid issues is to have the correct information
and lots of it. Make sure you are using the right class and stick with it. Know your freight
commodity, dimensions, packaging, value, and weight. This information will help you wade
through the muddy waters of freight classification.

Commodities could have:

• SET CLASS: class will always be the same regardless of its quantity, weight, value, or
density.

• CLASS BASED ON DENSITY: The density of a substance is the relationship between

the mass of the substance and how much space it takes up (volume).

D= W/V
V= LxWxH / 1728

• RELEASE VALUE CLASS: which is value per pound, even though this is not how the
product would be sold in the market.

WHAT IS F.A.K.?
FAK (Freight All Kinds) is a pricing mechanism that groups multiple classes of freight into a single
class. It allows a much easier rating and reduces reclassification and billing errors for companies
that ship a wide range of products.

For example, you ship 2 different products on the same pallet to your customers. The product
mix is equally in class 50 and class 85. Negotiating a FAK 60 for everything would be acceptable
in this situation. You would pay higher for class 50 and get a discounted rate (85->60). This would
be a fair tradeoff and welcomed by most carriers. This is a simplified example but imagine if you
are shipping thousands of different items. Looking up freight class each time and praying that you
get it right gets increasingly difficult. Remembering 2 classes, perhaps one for the heavier items
and one for the lighter presents an enormous time saving as well as a reduction in billing errors.

The FAK proved to be very effective in its original design. However, some shippers figured out
how to exploit the FAK to move their poorly operating freight at the same cost as very profitable
freight. Carriers' profits and operating ratios (O/R’s) took significant hits since they were now
exposed to a volatile mix of products. Carriers also noticed that a new phenomenon was taking
place in which they were getting mostly freight on the higher end of the FAK spectrum and the
good profitable freight suddenly disappeared.

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A FAK is a good solution for a company A FAK is not a good solution for a
if: company if:

1. You ship many different items 1. You ship a few items

2. You ship a wide variety of items 2. Your freight is justifiably a high class

3. Your freight looks and feels like a lower

class

Linear Footage and Pallet Spot

For the LTL industry, it is really important to identify
how much space each customer is taking from the
truck because based on the annual contracts with the
common carriers they must determine if the shipment
will be considered as LTL or Volume, or if the load is
overlength. For them to do so, they must do a
mathematical calculation based on the customer's
information. They will follow the steps listed below:

1. Receive dimensions from the customer

2. Identify dimensions of the trailer
3. Are goods stackable? Can we rotate the
pallets?
4. Organize the pallets trying to take less space
as possible
5. Calculate how much space we took and how
much is left
6. Add the length of the packages on the trailer
7. Divide total length into 12
8. Determine the space that you took in feet

LTL Packaging
The packaging is an integral part of the freight industry, we’ll go over some of the different
packaging standards observed by carriers in the LTL shipping industry, as well as some hints and
tips to keep your freight safe during transit. The most common type of freight is a palletized
shipment. Pallets come in all sizes, but standard pallet is usually about four feet by four
feet (Length x Width) or 48” x 48”. A pallet makes it easy to secure your freight and works best
for LTL shipping because it’s simple to move a pallet with a forklift or a pallet jack.

A forklift works great with pallets, so if you’re looking for the best possible packaging for your LTL
freight, a pallet is a way to go. It’s important, no matter its value, that the freight is properly secured
to the pallet. This can be done using industrial saran wrap to make sure the freight will not fall off

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the pallet during transit. It's also important to securely package the individual pieces together, as
you don’t want them separating during transit. Separated freight results in freight being lost and
shipments delivering short.

Though pallets are the preferred packaging for LTL freight shipping, they are not the only way
freight is secured. Another common way to package freight is known as “crati ng.” Crating provides
an extra level of protection for your freight, as it is fully enclosed. It’s preferred to palletize the
crate to make it easier for the carriers to move the freight from dock to dock, but it’s not necessary.
Occasionally, carriers will permit shippers to move separate boxes (sometimes as many as five)
as part of a single shipment, but we do not suggest it. Boxes may become separated during the
transit process, resulting in lost freight. With so many moving parts, it’s easier and simpler to make
sure your boxes are consolidated to avoid losses.

Documents Needed
PURCHASE ORDER
Purchase order (PO) is an order request that is a legally binding document sent from a buyer to
a seller. This document contains details about the item type, quantities, and agreed-upon prices
for products or services. Buyers also use purchase orders to ensure the products that arrive are
indeed the products they ordered.

The purchase order includes:

• A PO number
• A shipping date
• Billing address
• Shipping address
• The requested items
• Quantities and price

PACKING LIST / PACKING SLIP

A packing slip is a shipping document that comes with an
order, usually inside an attached shipping pouch or inside
the package itself. Sometimes referred to as a shipping list,
waybill, packing list, bill of the parcel, or unpacking note, a
packing slip provides buyers with product details that
ensure the product is indeed what they ordered. Packing
slips are only required if products are being shipped and
received for sale.

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INSPECTION CERTIFICATE
This document will help to determine if there are discrepancies with the information during the
shipment, focusing on the class.

WEIGHT CERTIFICATE

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LTL Freight Quotes
There are two types of LTL quotes that are available, and how much freight you plan to ship will
determine which one you need. Remember this disclaimer though: A “shipment” is the packaged
freight going from Point A to Point B. So, if you have freight heading to two separate consignee
locations, even if the shipper location is the same, they will be considered two separate LTL
shipments. With that covered, let’s start with your standard LTL quote.

There are four pieces of information that you must-have for a standard LTL quote:

• Origin and Destination Zip Codes • Commodity

• Quantity • Class (for LTL shipments only)
• Weight • Additional Services
• Dimensions

The origin zip code is the zip code where the freight will be picked up. Note that this is not the
origin terminal zip code, or the city, or even the manufacturer zip code. This is the actual zip code
for the address where the freight will be loaded on to the truck. The destination zip code is the
opposite of the origin zip, in that it is the zip code where the freight will be delivered. Once again,
this is the actual delivery address location, not the city or terminal zip code. As most cities have
more than one zip code, it is important to get the correct zip codes. Part of the pricing for LTL
shipments come from the distance the freight will travel.

The third part of a standard LTL quote is the total weight, dimensions, and quantity of the
shipment. This weight includes any packaging or palletizing that is needed to make the freight
ready to ship. Make sure that your weights are exact, as carriers will use industrial shipping scales
to make sure the weight claimed on the BOL matches the actual weight of the shipment. If it does
not, you will be charged for the difference. This is called a REWEIGHT.

Keep in mind, a standard LTL quote is only valid if your freight will be taking up 12 feet or less of
linear truck space, as well as 7,000 lbs. or less. Twelve feet safely stores up to six standard pallets
(48x40x48 inches, Length x Width x Height). But what if your shipment takes up more room than
just twelve feet of space? Or what if your shipment weighs over 7,000lbs? That brings us to our
second type of LTL quote: VOLUME QUOTES. A volume quote is used when the freight is too
large or too heavy for a standard LTL quote. To get an accurate volume quote, you’ll need the
standard four pieces of information needed for any LTL shipping quote: origin zip code,
destination zip code, total weight, and class. Besides, you’ll need:

• Total piece count • Dimensions of the pieces • Commodity

Once you have gathered your information, it’s a matter of reaching out to the carrier’s volume
department to receive a quote number that correlates with your volume quote. Once you have
your quote, simply put your quote number where it will be prominently visible on the BOL (usually
in the “Special Instructions” section of the bill of lading). The rest of the process is similar to a
standard LTL shipment. The shipment will be moved from terminal to terminal until it reaches its
final destination. When dealing with volume quotes, remember their purpose is to save you
money. Similar to the old “buy in bulk” adage, the quotes you receive on a volume quote will be
cheaper than if you ran the quote using general LTL rules. That being said, you must include the
volume quote number on the BOL used at pickup. Without it, your volume quote will not apply,
and you will end up paying much more than you anticipated for the shipment.

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LTL Dispatch process
Upon customer’s approval, the dispatcher adds the shipment in the system and creates the BOL
using all information and adding all the references provided by the customer. As well, will retrieve
the BOL from the system and proceeds to send it via email or fax to the shipper. In many cases,
this BOL is sent to the customer instead of the shipper. The customer must ensure this BOL is
ultimately forwarded to the shipper. Besides this, the dispatcher will print the BOL once the pickup
is scheduled with the carrier and makes sure the PU# provided by the carrier is added on the BOL
for pickup tracking purposes. Finally, the dispatcher schedules the pickup with the carrier selected
by the customer and will contact mainly the origin terminal to complete this task.

Remember, a printed BOL must contain:

1. Shipper’s window time in which freight is ready to be picked up by the carrier and their
closing time.
2. Respective references that the customer instructed to add on the BOL.
3. Highlighted references that carrier must consider at the time of pickup for the driver to
mention when collecting the freight at the shipper’s location.
4. Name of the payer of the shipment and email addresses which should be included when
sending notification emails.
5. Highlighted accessorial or additional services required to complete pickup, if applicable.
6. According to freight’s weight and dimensions, it must be specified the type of equipment
needed for pickup (swing door trailer, 53 ft. trailer, small truck, etc.)

You should never forget that you may have 2 different PU#, the carrier’s and the shipper’s but
they are not the same, This number is very crucial to be shared with the carrier and to stress the
driver he must provide it at shipper’s location, otherwise, the freight may not be released.

Carrier's PU#

•For a carrier, the PU# is the reference which usually corresponds to a consecutive
number they assign as a confirmation that a shipment pickup has been
scheduled. This number must be given to us when contacting the terminal to schedule
pickups and it must be consigned on the load in the system and the printed BOL in
order to apply tracking to a pickup.
Shipper's PU#

•For a shipper, a pickup number is a reference that may be helpful to identify the
shipment when the carrier’s driver arrives to pick up certain freight. This reference
could be a purchase order (PO) number, a customer number, a company name, a Bill
of Lading number, or a phrase that identifies that shipment. This reference can be any
combination of letters and numbers up to 35 characters

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LTL Tracking
One of the most important parts of LTL shipping is the network of carrier terminals. These
terminals can range in size, but they all act as departure and arrival points for LTL freight. Unlike
truckload shipping, LTL freight is not picked up and delivered on the same truck. Instead, LTL
freight is transferred from truck to truck at different terminals until the freight arrives at the
destination terminal. From there, it will be loaded onto a final truck and delivered to the consignee.

To get a better understanding of what we are discussing, let’s “trace,” or track, a typical LTL
shipment: A pickup is scheduled through carrier dispatch or customer service. This pickup is
usually done by phone, but some carriers use emails as well. This request will let the carrier know
where to pick up, what to pick up (commodity), how much they’ll be picking up (pallet/piece count
& weight) and what time the freight will be available for pickup (All carriers require a two hour-
window and at least a two-hour cushion when scheduling pickups). The pickup location is known
as the SHIPPER.

For this example, let’s say the shipper is in Austin, Texas and the delivery will be in Miami, Florida.
When the freight is picked up and loaded into the back of the truck, the driver will stamp the freight
with a PRO NUMBER - a shipment’s identification and tracking number. The driver will then make
his way to his next pickup. Pickup routes are determined by carrier dispatchers and consider the
quantity and weight of shipments, as well as geographical locations. It’s common practice for
deliveries to be completed in the mornings, while pickups are usually taken care of in the
afternoon. After the driver has completed all his scheduled pickups or his truck is full, he then
heads back to the ORIGIN TERMINAL. The carrier’s second shift dock crew will remove the
freight from the truck, scan the PRO Numbers into the carrier system for tracking purposes, and
from there will begin to load the freight back on to trucks heading out of the terminal the next
morning.

In our example we had freight picked up in Austin heading to Miami. Therefore, the freight will be
loaded on to a truck headed east. The night crew also takes all the freight coming from elsewhere
that needs to be delivered in Austin and loads it on to a truck for delivery the next morning. Morning
comes and the carrier trucks, full of freight to deliver, head out on their routes. They’ll off-load all
freight in the mornings until their trucks are empty, and from there they will begin the process
again with more pickups. The shipment heading out of Austin will be on a truck heading
eastbound, for a stop at the next terminal in Baton Rouge or maybe New Orleans. The freight will
be unloaded, the PRO will be scanned into the carrier system for tracking purposes, and the
freight will be reloaded on to the correct truck, and then will ship out for the next terminal, probably
Atlanta. From Atlanta, the freight will move to Orlando and then down to Miami, following the same
steps listed above at each terminal location. Once it finally reaches its destination terminal, the
freight will go out on a truck in the morning and be delivered to its final destination, known as the
CONSIGNEE.

Shipper ➔ Origin Terminal ➔ In Transit ➔ Destination Terminal ➔ Consignee

This is the life of a typical LTL shipment. As you can see, it’s a lot of moving parts with lots of
hands-on the freight. It’s important to keep this in mind as you package your freight for transit
(we’ll take more about this later), as the freight will be moved off and on trucks by forklifts as it
makes its way to its final destination.

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LTL Claims and Insurance
It is in the best interest of everyone in the shipping industry (customer, carrier, broker) that freight
is picked up and delivered as quickly and safely as possible. However, sometimes mistakes do
happen. We will discuss what happens if your freight is damaged or lost, and how to best avoid
such issues.

Let's begin with the concept of freight insurance. As you ship your LTL freight, you’ll need to
protect it from the possibility of damage as best you can, however, if an item does get damaged
in transit, you’ll want to get paid for that damage. There are two types of insurance you can get
for your freight: carrier insurance or third-party insurance.

Carrier insurance is the insurance covered internally by the carriers for the freight that they
transport. Coverage is based on commodity, value, freight class, size, weight, and distance
traveled. Before we get any further with carrier insurance, let’s say outright that carrier insurance
coverage has its fair share of limitations. Each carrier’s coverage differs, but overall, they rarely
pay out even half of what the claims will sometimes amount to.

Now, before we go bashing on freight carriers and their insurance limitations, let’s consider a few
things. First, insurance is a notoriously fickle and subjective business across the board. Whether
it be car insurance, home insurance, or life insurance – payouts can be tough. Secondly, the
freight industry is a slick one with lots of moving parts. When you’re dealing with freight
transportation and shipping, the damage is part of the game regardless of carrier. It’s not
sustainable for a carrier to pay out every damage claim in full for every shipment that they move.
They would be out of business. All of this is not to say that carriers don’t pay out for damage or
loss claims, it’s only that the process is easier and smoother using a third-party insurer.

Third-party insurance is offered through any good freight broker, and the premium (though it
varies based on coverage amount) is often inexpensive, sometimes as low as
$40 for up to $10,000 of coverage. When getting third party insurance you’ll also have an
insurance certificate, physical proof that your freight is covered. But how does this third-party
insurance work and why is it better? Well, for one thing, you’ll get paid. If your freight’s value can
be proved using a commercial invoice, the third party will pay out your claim without too many
questions. Of course, there are deductibles to take into account, but a third-party insurer will go
directly to the freight carrier, essentially bypassing you. Apart from being convenient, claims are
often paid faster using third party insurance. Like any insurance, the claims process can be tricky,
but there are a few things to keep in mind as you file a claim for damaged or lost freight:

ALWAYS NOTATE DAMAGE – It’s very important to always notate damage on the delivery
receipt if there’s even a hint of damage to your shipment. This POD (Proof of Delivery) will be
key when you file a claim through the carrier for damage. Without any damage notated on the
POD, the chance of a claim being paid out shrinks from about
80% to less than 10%. The POD will be the most important aspect of the claims process, and just
like other aspects of the freight industry, the more notes and the more information available, the
smoother the process.

TAKE PICTURES ASAP – Even if you notate on the POD that the freight is damaged, take
pictures immediately to document the damage. These pictures will be used later in the claims
process to prove the carrier damaged the shipment.

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HAVE DOCUMENTATION READY – For a claim to be paid out (lost or damaged), you’ll need
some form of commercial invoice to prove the value of the freight you’re claiming. Along with the
signed POD, pictures, and claim forms, these documents will be the reason your claim does or
does not get paid out.

BE PATIENT – Like any sort of insurance situation, claims can take a while to get paid out. A
good rule of thumb is to allow 60-90 days once the claim has been filed before expecting any sort
of payment. It’s also important to remember that the carrier will be the one paying out the claim
(directly or through a third party), not the freight broker.

LTL Billing and Auditing

First off, the freight billing structure will be different if you’re going directly to the
carrier than if you’re working through a freight broker. If you’re going carrier direct, this means you
have an account with the carrier, and they’ll send you the invoices for your freight shipping. You’ll
pay them directly, and any sort of invoice discrepancies will have to be settled individually between
customer and carrier. Usually, it takes the carrier between one and two weeks to send out their
invoices after the freight has delivered. Each carrier will have a different set of standards when it
comes to billing - there is no industry standard - so if you do go carrier correct, you’ll have to
coordinate the details with the carrier billing department.

If you’re using a freight broker, you won’t be seeing any invoices directly from the carrier. Instead,
you’ll receive your bills from the freight broker. With the carrier invoicing the broker direct, a quality
freight broker will first audit the charges. What do I mean, “audit,” the charges? When a freight
broker audits charges, they go through every invoice and additional charge and confirm the
legitimacy of the charge before passing the charges on to the customer.

So, what are these “additional charges” we keep referring to? Well, the two most common invoice
charges we see are the RECLASS and the REWEIGH. True to their names, these are assessed
when a shipping item is either reclassed to a higher class (a more expensive class) or an item is
reweighed to a higher weight (a more expensive weight). To process these additional charges,
the carrier will have to produce W&I (Weight and Inspection) CERTIFICATES that provide proof
for the additional charges. If a reclass is a density-based discrepancy, the carrier will provide
updated freight dimensions and/or updated weights confirmed by a registered and official scale.
If the item is being reclassed due to item description, then it’s up to your freight broker to explain
and fight the charges for the correct class on the item. If your freight has been reweighed, the
carrier will need to provide official documentation of the reweigh including the name of the person
who weighed the item, the old and new weights, and the location and identification of the official
scale used.

Your freight broker will have sufficient knowledge of the carrier invoice system to help wade
through the mud and get you the correct rates. Though reclasses and reweighs are the most
common invoice issues we see, other accessorial are applied after the freight has been delivered
and with the addition of these services, the price of your freight shipment will increase. This
includes (but is not limited to) liftgate charges, limited access pickup or delivery, inside delivery
or pickup, and residential pickup or delivery.

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ADDITIONAL CHARGES AND SERVICES:
Expedited Service: The process of
shipping at a faster rate than normal. It Notify Consignee: Inform the consignee's
usually includes team drivers, overnight, shipment will be delivered on a certain day.
and/or air services. (Guaranteed and time-
critical). Delivery Appointment: Require calling
before delivery and/or to set an appointment
for freight to be delivered.

Residential PU/DEL: Additional service to

perform Pickups/Deliveries in residential
areas. As LTL shipping uses dry vans and
Inside PU/DEL: It’s an additional charge to
larger trucks, sometimes it can be difficult to
pick up or delivery inside the
maneuver residential streets.
shipper/receiver facility. Example:
Warehouse, buildings, hotel, etc.

Liftgate PU/DEL: A power-operated tailgate

capable of lifting pallets from street level to
the level of the floor of the trailer. Used in
Limited Access PU/DEL: Extra charge to
locations where there is no dock for
pick up or deliver to non-commercial
loading/unloading, and often found on LTL
facilities: hotels, churches, schools,
truck fleets.
universities, prisons, amusement parks,
military bases, museums, hospitals, etc.

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 Tradeshow PU/DEL: Pick up or deliver a
product to an event, such as congress or
convention. These pickups/Del are
Sort & Segregate: Upon delivery, the scheduled in advance and they normally
receiver will break down the contents of the have preferred carriers to do this.
pallet to sort and count the product.

Dry Run Fee: A penalty that a customer

Expedited Service: The process of shipping
must pay after several unsuccessful
at a faster rate than normal. It usually
attempts of pickup from a carrier.
includes team drivers, overnight, and/or air
services. (Guaranteed and time-critical).
Excessive Length Fee: Length of the
freight shipment exceeds a certain limit the
carrier designates.

Single Shipment Fee: Additional fee for

picking up 1 shipment which weighs 500
LBS or less and no other shipments from
that customer on this pick-up.

Bonded or Inbond: Freight that will not be

released by Customs until duty or taxes are
paid by the customer.

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C.O.D: Stands for Cash on Delivery. The
carrier cannot deliver the goods unless White-Glove Service: Services offered in
payment is collected at the time of delivery. transportation management that go beyond
This money is collected on behalf of the the standard expectations for delivery
shipper.

Transit Time:
Re-Delivery Fee: It is a fee charged when - Standard
the carrier attempts to deliver the freight but - Guaranteed Service
is not able to do it successfully. - Time Critical

Re-Consignment Fee: When a receiver’s

address is changed, and the shipment was
already picked up and on its way.

Blind Shipment: It's when one or more

parties to a shipment don't know who the
shipper is, receiver, or both.

Hazmat Service: It’s an extra charge for - Blind Shipping Label

moving hazmat materials such as explosive, - Double-Blind
flammable, poisonous, or otherwise
potentially dangerous cargo.

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 PHASE 4
FREIGHT
FORWARDING

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 INTERNATIONAL TRADE
International trade is the exchange of capital, goods, and services across international borders or
territories. It is the exchange of goods and services among nations of the world.

Trading globally allows consumers and countries to be exposed to goods and services not
available in their own countries. Almost every kind of product can be found in the international
market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies, and water. Services are
also traded: tourism, banking, consulting, and transportation.

A product that is sold to the global market is an export, and a product that is bought from the
global market is an import. Imports and exports are accounted for in a country's current account
in the balance of payments.

• An import is a goo • An export means sending goods

d brought into a jurisdiction, esp or services produced in one
ecially across a national border, fro country to another country. The
m an external source.The party brin seller of such goods and service
ging in the good is called an impor s is referred to as an exporter; t
ter. he foreign buyer is referred to a
EXPORTS
IMPORTS

• An import in the receiving country s an importer. Importation and

is an export from the sending count exportation are the defining
ry. Importation and exportation are financial transactions of
the defining financial transactions o international trade.
f international trade.

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PARTIES INVOLVED IN INTERNATIONAL TRADE

• Manufacturer / Producers
• Distributor/ Dealer
• Seller / Vendor / Supplier
• Buyer / Purchaser
• Shipper
• Consignee
• Customs brokers
• Freight Brokers / Freight Forwarders
• Carriers (Truck companies, Shipping lines, and Airlines)
• Insurance companies
• Government and trade organizations

Let’s review some of them!

Shipper VS Seller
The “shipper” is a person, company, or entity that is shown in all the shipping documents (bill of
lading, commercial invoice, packing list) as the party responsible for procuring and/or placing the
order for shipment and maybe also for arranging the freight payment, etc. On the other hand, a
“seller” is a party that makes or offers a sale to an actual or potential buyer (also called a “vendor”).

The main difference between the terms “shipper” and “seller” is that while “shipper” is the term
used in the “contract of carriage”, the term “seller” is used in the “sale contract”.

Consignee VS Buyer
In a contract of carriage, the consignee is the entity who is financially responsible for the receipt
of a shipment. Generally, but not always, the consignee is the same as the receiver. On the other
hand, the “buyer” is the party that acquires or agrees to acquire, ownership (in case of goods) in
exchange for money or other consideration under a contract of sale (also called a “purchaser”).

The main difference between the terms “consignee” and “buyer” is that while “consignee” is the
term used in “contract of carriage”, the term “buyer” is used in the “sale contract”.

Carrier
The freight carrier is a company or a person who handles your shipment directly. The shipments
are done through air, road, sea, or rail. Some carriers provide multi-modal service. They own the
means of transportation such as trucks, airplanes, and ships.

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 Broker
In general, a broker is an individual or firm that serves as a trusted agent or intermediary in
commercial negotiations and transactions.

A freight broker is an individual or company that serves as a liaison between another individual
or company that needs shipping services and an authorized motor carrier. Though a freight broker
plays an important role in the movement of cargo, the broker does not function as a shipper or a
carrier.

Customs Broker
Customs brokers are private individuals, partnerships, associations, or corporations licensed,
regulated, and empowered by Customs and Border Protection (CBP) to assist importers and
exporters in meeting Federal requirements governing imports and exports.

Customs broker is a profession where the expertise includes tariff and customs laws, rules , and
regulations for the clearance of imported or exported goods or merchandise from a customs
authority. The preparation of import or export documents includes computation and payment of
duties, taxes, and other charges accruing thereon.

U.S. Customs and Border Protection (CBP)

With more than 60,000 employees, U.S. Customs and Border Protection, CBP, is one of the
world's largest law enforcement organizations and is charged with keeping terrorists and their
weapons out of the U.S. while facilitating lawful international travel and trade.

As the United States’ first unified border entity, CBP takes a comprehensive approach to border
management and control, combining customs, immigration, border security, and agricultural
protection into one coordinated and supportive activity.

The men and women of CBP are responsible for enforcing hundreds of U.S. laws and regulations.
On a typical day, CBP welcomes nearly one million visitors, screens more than 67,000 cargo
containers, arrests more than 1,100 individuals, and seizes nearly 6 tons of illicit drugs. Annually,
CBP facilitates an average of more than $3 trillion in legitimate trade while enforcing U.S. trade
laws.

Now that we´ve reviewed some of the most important parties involved in international
trade, it is time to learn about the incoterms

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INCOTERMS
The International Chamber of Commerce has published new Incoterms® 2020 that have come
into effect from the 1st of January 2020. The ICC originally published Incoterms® in 1936 and
has continually made updates to reflect the changes to the Global Trade environment. It’s
important that all parties involved in trade clearly understand the changes and how they apply to
global supply chains.

Put simply, Incoterms® are the selling terms that the buyer and seller of goods both agree to
during international transactions. These rules are accepted by governments and legal authorities
around the world. Understanding Incoterms® is a vital part of International Trade because they
clearly state which tasks, costs, and risks are associated with the buyer and the seller.

The Incoterm® states when the seller’s costs and risks are transferred onto the buyer. It’s also
important to understand that not all rules apply in all cases.

The Incoterms are accepted by governments, legal authorities, and practitioners worldwide for
the interpretation of most used terms in international transactions or procurement processes.
They are intended to reduce or remove altogether uncertainties arising from different
interpretations of the rules in different countries. As such, they are regularly incorporated into
sales contracts worldwide.

These are the Incoterms

EXW – Ex-Works or Ex-Warehouse

• Ex-works is when the seller places the goods at the disposal of the buyer at the seller’s
premises or another named place (i.e., works, factory, warehouse, etc.).
• The seller does not need to load the goods on any collecting vehicle. Nor does it need to
clear them for export, where such clearance is applicable.

FCA – Free Carrier

• The seller delivers the goods to the carrier or another person nominated by the buyer at
the seller’s premises or another named place.
• The parties are well advised to specify as explicitly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.

FAS – Free Alongside Ship

• The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a
barge) nominated by the buyer at the named port of shipment.
• The risk of loss of or damage to the goods passes when the products are alongside the
ship. The buyer bears all costs from that moment onwards.

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FOB – Free on Board
• The seller delivers the goods on board the vessel nominated by the buyer at the named
port of shipment or procures the goods already so delivered.
• The risk of loss of or damage to the goods passes when the products are on board the
vessel. The buyer bears all costs from that moment onwards.

CFR – Cost and Freight

• The seller delivers the goods on board the vessel or procures the goods already so
delivered.
• The risk of loss of or damage to the goods passes when the products are on board the
vessel.
• The seller must contract for and pay the costs and freight necessary to bring the goods to
the named port of destination.

CIF – Cost, Insurance and Freight

• The seller delivers the goods on board the vessel or procures the goods already so
delivered. The risk of loss of or damage to the goods passes when the products are on
the ship.
• The seller must contract for and pay the costs and freight necessary to bring the goods to
the named port of destination.
• The seller also contracts for insurance cover against the buyer’s risk of loss of or damage
to the goods during the carriage.
• The buyer should note that under CIF the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need
either to agree as much expressly with the seller or to make its extra insurance
arrangements.

CPT – Carriage Paid To

• The seller delivers the goods to the carrier or another person nominated by the seller at
an agreed place (if any such site is agreed between parties).
• The seller must contract for and pay the costs of carriage necessary to bring the goods to
the named place of destination.

CIP – Carriage and Insurance Paid To

• The seller has the same responsibilities as CPT, but they also contract for insurance cover
against the buyer’s risk of loss of or damage to the goods during the carriage.
• The buyer should note that under CIP the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection, it will need
either to agree as much expressly with the seller or to make its extra insurance
arrangements.

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DAP – Delivered at Place
• The seller delivers when the goods are placed at the disposal of the buyer on the arriving
means of transport ready for unloading at the named place of destination.
• The seller bears all risks involved in bringing the goods to the named place.

DPU – Delivered at Place Unloaded (replaces Incoterm® 2010 DAT)

• DPU replaces the former Incoterm® DAT (Delivered at Terminal). The seller delivers
when the goods, once unloaded are placed at the disposal of the buyer at a named place
of destination.
• The seller bears all risks involved in bringing the goods to and unloading them at the
named place of destination.

DDP – Delivered Duty Paid

• The seller delivers the goods when the goods are placed at the disposal of the buyer,
cleared for import on the arriving means of transport ready for unloading at the named
place of destination.
• The seller bears all the costs and risks involved in bringing the goods to the place of
destination. They must clear the products not only for export but also for import, to pay
any duty for both export and import and to carry out all customs formalities.

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FREIGHT FORWARDER
What is a Freight Forwarder?
• A freight forwarder is a company that arranges your importing and exporting of goods,
specializing in arranging storage and shipping of merchandise on behalf of its shippers.
• It usually provides a full range of services including, but not limited to tracking inland
transportation, preparation of shipping and export documents, warehousing, booking
cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing
of insurance claims.
• A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating
common carrier (NVOCC), is a person or company that organizes shipments for
individuals or corporations to get goods from the manufacturer or producer to a market,
customer or final point of distribution.
• Usually, ship under their bills of lading or air waybills (called house bill of lading or house
air waybill) and their agents or associates at the destination (overseas freight forwarders)
provide document delivery, deconsolidation, and freight collection services.

What does a freight forwarder do?

• A forwarder does not move the goods but acts as an expert in the logistics network.
• A freight forwarding service utilizes established relationships with carriers, from air
freighters and trucking companies to rail freighters and ocean liners, to negotiate the best
possible price to move shippers’ goods along the most economical route by working out
various bids and choosing the one that best balances speed, cost, and reliability.
• Freight forwarders handle the considerable logistics of shipping goods from one
international destination to another, a task that would otherwise be a formidable burden
for their client.

Elements considered by freight forwarding companies before shipment

• Gas/ Oil Charges • Service type
• Distance • Tolls
• Goods value • Transport chain
• Handling costs • Volume
• Package type • Weight

Why should I use a Freight Forwarder?

It can save you untold time and potential headaches while providing reliable transportation of
products at competitive rates and also It’s an asset to almost any company dealing in international
transportation of goods, and is especially helpful when in-house resources are not versed in
international shipping procedures.

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 Advantages
A Freight Forwarder handles the following documents/procedures commonly used in
importing/exporting:

• Insurance certificate • Dangerous Goods Shipper’s

• Certificate of origin Declaration: packed, labeled and
• Dealing with a Non-Vessel declared according to regulations.
• Operating Common Carrier • Dock receipt and warehouse receipt
• Consular invoice: language
• House and Master Waybills
• SED: Shipper's export declaration.
• Inspection certification Export statistics
• Destination control statement • Cargo Releases
• Commercial Invoices: Customs duties.
• Packing List: Box, drum, carton, crate, etc.

Immediate Role

A freight forwarding company is hired by importers and exporters to expedite their cargo supply
chain. Because of this, they are called shipment “expeditors”.

They act as an organizer of the following supply chain processes:

• Export and import handling
• Customs clearing
• Air and Ocean transport and delivery

Freight Forwarder VS Custom Broker

Forwarders take care of the inter-country movement of cargo - from one country in the world to
another (through sea or air) by acting as the middlemen between the shipping lines/airlines and
the importer/exporter. Logistics wise, forwarders will talk to shipping liners and airlines to book
space, to receive and load cargo. They will also coordinate with partner agents in other countries.
They might also link up with trucking firms for inland haulage and talk to customs brokers (a
separate team in their firm or a different broker appointed by the importer/exporter) for
documentation and cargo handover.

Customs brokers act as agents of importers/exporters to use their expertise in the smooth
clearance of cargo at the customs - export, and import. Clearance is a very technical and highly
regulated activity, and hence importers/exporters like to let the experts handle it. Customs brokers
also do not need much working capital to set-up, but their manpower requirements are higher
since brokers need their people to be present at docks, customs offices as well as back in the
shop. There are firms which offer both services. But mostly, these firms will have separate teams
handling these two activities.

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The main difference between forwarders and brokers is that a broker never takes possession of
items being shipped. By contrast, the forwarder takes possession of the items being shipped,
arranges smaller shipments, and negotiates for the transportation of the consolidated shipments.

Freight Forwarder VS Consolidator

There are firms which offer both services. But mostly, these firms will have separate teams
handling these two activities. The main difference between forwarders and consolidators is that
the freight consolidator, consolidator or groupage operator is an individual or firm who accepts
less than container load (LCL) shipments from individual shippers and then combines them for
delivery to the carrier in full container load (FCL) shipment, uses their vessel or rents space on
independent vessels.

QUOTING
This will be validated against the carrier’s capacity of covering routes and trade lanes, commodity
types, weight, dimensions, and revenue criteria of carriers in regards to profit, before confirmation
to complete the quoting process.

Negotiating Air / Ocean line pricing

• The law of supply and demand dictates that the higher the demand for freight space results
in a higher rate. In both Ocean and Air most of the freight forwarding companies are ruled
by “The fastest and cheapest wins” principle

Booking your cargo

This will be validated against the carrier’s space capacity, weather, commodity, airports /seaports,
and revenue management criteria, before confirmation to complete the booking process.
After the freight forwarding company settles the price for your cargo, they will now prepare the
sea/airline booking for the shipment ensuring your space is reserved on their Plane/ vessel. This
confirmation will contain the following data:

• Assigned Vessel (Master) • Type of goods

• Flight / Voyage date and number • Incoterms
• Booking number • Issuing agent and its contact details
• Origin and final destination • Volume, weight and dimensions of
shipment
• Eventual assignment to customer or
agent’s allotment

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SHIPPING CONTAINER
A shipping container is a container with strength suitable to withstand shipment, storage, and
handling. In the context of the international shipping trade, "container" or "shipping container" is
virtually synonymous with "intermodal freight container," a container designed to be moved from
one mode of transport to another without unloading and reloading

Types of Containers
Because there are so many commodities that can be shipped, there are different types of
containers that adapt to each customer's needs.

Dry storage container

The most commonly used shipping containers: come in various
dimensions standardized by ISO. They are used for shipping dry materials
and come in sizes 10ft, 20ft, and 40ft.

Flat Rack Container

With collapsible sides, these are simple storage shipping containers
where the sides can be folded to make a flat rack for shipping a wide
variety of goods.

Open Top Container

With collapsible sides, these are simple storage shipping containers
where the sides can be folded to make a flat rack for shipping a wide
variety of goods.

Tunnel Container
Container storage units provided with doors on both ends of the
container. They are extremely helpful in the quick loading and unloading
of materials.

Open Side Storage Container

These storage units are provided with doors that can change into
completely open sides providing a much wider room for loading of
materials

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 Double Door Container
They are a kind of storage unit that comes equipped with double doors,
making wider room for the loading and unloading of materials.
Construction materials include steel and iron in standardized sizes of
20ft and 40ft.

Refrigerated ISO Container

These are temperature regulated shipping containers that always have
a carefully controlled low temperature. They are exclusively used for the
shipment of perishable substances, such as fruits and vegetables, over
long distances.

Insulated or Thermal Containers

These are shipping storage containers that come with a regulated
temperature control allowing them to maintain a higher temperature. The
choice of material is so done to allow them a long life without being
damaged by constant exposure to high temperatures. They are most
suitable for the long-distance transportation of products (foods,
pharmaceuticals, organs, blood, biologic materials, and chemicals).

Tanks
Container storage units used mostly for the transportation of liquid
materials; they are used by a huge proportion of the entire shipping
industry. They are mostly made of strong steel or other anti-corrosive
materials providing them with long life and protection to the materials.

Cargo Storage Roll Container

A foldable container, this is one of the specialized container units made
to transport sets or stacks of materials. They are made of thick and
strong wire mesh along with rollers that allows their easy movement

Half Height Containers

Made mostly of steel, these containers are half the height of full-sized
containers. Used especially for goods that need easy loading and
unloading much like coal, stones, etc.

Car Carriers
Car carriers are container storage units made especially for the shipment
of cars over long distances. They come with collapsible sides that help
a car fit snugly inside the containers without the risk of being damaged
or moving from the spot.

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 Intermediate Bulk Shift Container
They are designed to handle large amounts of materials and made for
shipping materials to a destination where they can be further packed
and sent off to the final spot.

Drums
As the name suggests, they are circular shipping containers made from
a choice of materials like steel, lightweight metals, fiber, hard plastic,
etc. They are most suitable for the bulk transport of liquid materials. They
are smaller in size but due to their shape, they may need extra space.

Special Purpose Containers

Not ordinary containers, these are the container unit’s custom made
for specialized purposes. Mostly, they are used for high profile
services like the shipment of weapons. As such, their construction and
material composition depend on the special purpose they need to
cater to. In most cases, security remains the top priority.

Swap Bodies
They are a special kind of container used mostly in Europe. Not
made according to the ISO standards, they are not standardized
shipping container units but extremely useful all the same. They
are provided with a strong bottom and a convertible top making
them suitable for shipping many types of products.

Containers Specs
These are the most known dimensions for each container

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Containers Equipment
The following are the most known equipment for containers at seaports or transportation

Container Chassis
A container chassis is a special type of truck undercarriage or
chassis referring to the skeleton structure, which is a part of the
semi-trailer, designed and developed specifically to transport
containers. (ex: triaxle chassis, heavy haul chassis, spread axle
chassis.)

Vessel Container Crane

A container crane (also container handling gantry crane or ship-
to-shore crane) is a type of large dockside gantry crane found at
container terminals for the loading and unloading of intermodal
containers from container ships.

Rubber Tyred Gantry

A rubber tyred gantry crane (RTG crane) is a mobile gantry crane
used in intermodal operations of ground or stack containers.
RTGs typically straddle multiple lanes, with one lane reserved for
container transfers.

Side Lifter
The side lifter loads and unloads containers via a pair of hydraulic-powered cranes mounted at
each end of the vehicle chassis. The cranes are designed to lift containers; from the ground, from
other vehicles including rolling stock, from railway wagons, and directly from stacks on docks or
aboard container ships.

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DRAYAGE
Drayage means transporting goods, a short distance, via ground freight or the charge for such
transport. In freight forwarding, drayage is typically used to describe the trucking service from an
ocean port to a rail ramp, warehouse, or other destination. It is one of the most important, yet
fraught, parts of the supply chain beginning with Customs clearance and extending through
delivery and return of the ocean container.

Export Process

Import Process

Reminder: TWIC Card provided by TSA is the main requirement to enter a seaport

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 Round trip / One Way
ADDITIONAL SERVICES Applies when quoting and depends on what
the customer asks for, whether or not the
AND FEES container is going to be brought back to the
port or will stay at their location.

Drop and pick / Live unload

Drop and pick is when the carrier drops the Chassis Split Fee
container in the client’s warehouse and waits
When the chassis has to be returned to a
for them to advise when it is ready for pick
different location from the container. It is
up. On the other hand, live to unload is when
quoted just in case it applies.
the carrier waits for the client to load/unload
the container until the operation is done. This
depends on customer instructions. Overweight Container
The max weight will depend on each
Gate to Gate terminal and type of container. Some of
them around 20’ will only haul up to 44k lbs.
Traffic Mitigation Fee and others around 40’ can do around 58k
lbs.
Ports charge a traffic mitigation fee on
daytime traffic, with the revenues used to
Yard Storage
partially compensate terminals for operating
night and weekend gates. It also provides a When a container is in the carrier’s yard
financial incentive to move cargo during less- waiting to be delivered according to the
congested times. The TMF is charged for customer’s instructions. Charges for this will
non-exempt containers moving during peak be per day.
hours (Monday through Friday, 3 a.m. to 6
p.m.)
Reposition Charge
Stop Off Fee It is when you have to move a chassis from
When the driver has to stop for a special the rail to depot or vice versa. Depots
request (usually to pick up/deliver a small generally don't keep chassis’; they are
portion of the freight, to do exams or scales) stored at the rail.
on his way to the delivery location.

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 Bill of entry
PAPERWORK Bill of Entry is a legal document filed with the
Customs department by an Importer or his
customs broker. Any goods moved into a
Trouble Ticket country need to be approved by customs
A ticket issued at the time of entry of a carrier officials of each country to move to the
into the port for a variety of reasons that may importer’s location. The importer or his agent
hinder or delay the transaction in picking must complete the necessary import
up or dropping off the container they are clearance procedures by filing a bill of entry
there to handle. with other required import documents. Based
Among a variety of causes, transaction on filing said bill of entry, the goods are
problems happen commonly when truckers examined and assessed by the proper
arrive to pick up import containers that are on customs officer to pass out.
hold or when trucks deliver export containers
with incorrect booking number information.
Commercial Invoice
Delivery Order A commercial invoice form is used for all
A document from a consignee, an owner, or shipments containing non-documents. The
freight carrier agent which orders the release commercial invoice is the primary document
of the transportation of cargo to another used for importation control, valuation, and
party. Usually, the written order permits the duty determination. This document identifies
direct delivery of goods to a warehouseman, the products being shipped.
carrier, or another person.
According to the Uniform Commercial Code
(UCC), a delivery order refers to an "order
given by an owner of goods to a person
in possession of them (the carrier or
warehouseman) directing that person to
deliver the goods to a person named in
the order."

IGM – Import General Manifest

Import General Manifest is a document filed
by the carrier of goods with the Customs
Department containing the details of goods
arrived at a customs location. Filing of Import
General Manifest is mandatory, insisted by
the government of each country.

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PREPARING THE SHIPMENT
Once the goods are ready for carriage, the freight forwarding company will now order the transport
of the goods. Otherwise, it can be temporarily stored at the warehouse while awaiting shipment.

Ready for Carriage Checklist

• Correctly packing and labeling the cargo
• Customs clearing the goods for export/import (if
required)
• Preparing the goods for import handling and
clearance (if required) at destination

Gross, Net and Tare Weight

It is important to know these types of weight of the shipment to identify the needs that it may
have.
• Gross Weight is the total weight of a shipment of goods, including their packaging such
as crates, pallets, etc.
• Net Weight is the weight, or mass, of the goods themselves without any packaging.
• Tare weight is the weight of packaging or a container without the goods.

INTERNATIONAL NUMBERS & DEVICES

H.S. CODE
The Harmonized Commodity Description and Coding System, also known as the Harmonized
System (HS) of tariff nomenclature is an internationally standardized system of names and
numbers to classify traded products.

The HS is organized logically by economic activity or component material. For example, animals
and animal products are found in one section of the HS, while machinery and mechanical
appliances are found in another. The HS is organized into 21 sections, which are subdivided into
96 chapters. The 96 HS chapters are further subdivided into approximately 5,000 headings and
subheadings.

The HS code consists of 6-digits. The first two digits designate the HS Chapter. The second two
digits designate the HS heading. The third two digits designate the HS subheading. HS code
1006.30, for example, indicates Chapter 10 (Cereals), Heading 06 (Rice), and Subheading 30
(Semi-milled or wholly milled rice, whether polished or glazed).

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SCHEDULE B
Export codes, also known as Schedule B numbers, are administered by the U.S. Census Bureau.
All import and export codes used by the United States are based on the Harmonized System
(HS). The HS assigns 6-digit codes for general categories. This 6-digit code is known as the
Harmonized System number.

EEI (SED)
The Electronic Export Identifier, or EEI, is the replacement for the no-longer-accepted manual
filing process known as the shipper's export declaration or SED form. The U.S. Bureau of Census
replaced the forms with this electronic process through its AES Direct website.

The EEI must be filed with shipments from the U.S., Puerto Rico or the U.S. Virgin Islands to
foreign destinations; between the U.S. and Puerto Rico; and from the U.S. or Puerto Rico to the
U.S. Virgin Islands, if any of the following applies:

• Shipment of merchandise under the same Schedule B commodity number is valued at

more than US$2,500 and is sent from the same exporter to the same recipient on the
same day. (Note: Shipments to Canada from the U.S. are exempt from this requirement.)
the process through its AES Direct website
• The shipment contains merchandise, regardless of value, that requires an export license
or permit.
• The merchandise is subject to the International Traffic in Arms Regulations (ITAR),
regardless of value.
• The shipment, regardless of value, is being sent to Cuba, Iran, North Korea, Sudan , or
Syria.
• The shipment contains rough diamonds, regardless of value (HTS 7102.10, 7102.21, and
7102.31).
• The EEI is not required for shipments from the U.S. to Canada unless the merchandise is
subject to ITAR, requires an export license or permit, or is rough diamonds.
• An EEI is not required for shipments to other U.S. territories (American Samoa,
Commonwealth of the Northern Mariana Islands, Guam, Howland Islands, and Wake
Island) or from the U.S. Virgin Islands to the U.S. or Puerto Rico.

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DEALING WITH THE CARRIER
AIR CARRIERS
Airline carriers have a different process when accepting cargo for air freight, most of which are
due to the additional security they need to perform to ensure you are not loading dangerous goods
into their craft. That is why It would be difficult to get your cargo space on the plane on your own.

Negotiating Air Line Pricing

An air freight forwarding company that has regular transactions with an airline company has more
chances of getting a space on board with better deals. This one of the reasons why it's always
best to choose a freight forwarding company with established relationships with carriers

AIR TRANSPORTATION PAPERWORK

The House Air Waybill

To ensure all the different customers of the freight forwarding company are pro perly
tracked, freight forwarding companies create a House Air Waybill (HAWB) for each
shipment. It becomes the shipment contract between the end-customer and the forwarder.

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OCEAN CARRIERS
Ocean carriers Mostly known as Steamship lines and/or Vessel owners have different processes
when accepting cargo for sea/ocean freight, most of which are due to the additional security they
need to perform to ensure you are not loading dangerous goods int o their vessel and to ensure
the safety of life at sea (SOLAS) while in transit. It would be difficult to get your cargo space on
the vessel on your own.

Full Container Load (FCL)

Full Container Load (FCL). Full Container Load means that all goods in the container are listed
on a single Bill of Lading, and as such are owned by a single party. It does not matter how full the
container is. Payment is made based on a full container.

A standard (twenty or forty-foot) container that is loaded and unloaded under the risk and account
of the shipper or consignee. In general, a full container load attracts lower freight rates than an
equivalent weight of loose (break bulk) cargo.

Less than Container Load (LCL)

Under a Less than Container Load cargo, wherein a shipper does not have enough goods to
accommodate in one full container, he books cargo with a consolidator to consolidate his goods
along with goods of other shippers. This type of shipment is called LCL shipment. The said
consolidator arranges a fully loaded container (FCL) and consoles the shipments of other shippers
and delivers each shipment to the final destination by separating each shipment at the final
destination.

Steamship lines / Ocean shipping lines

A Shipping Line is a company that operates the ships that carry the
containers (owned or leased) and cargo from load port to discharge port.

Example: Hapag Lloyd, Maersk, China Shipping. Some of the shipping

lines have container services covering most ports of the world, and,
commonly, they might run into a situation whereby they have a shortage
of containers at certain locations or they might have a requirement of
certain types of containers (Flat Racks, Open Tops, etc.) at certain
locations

Marine Shipping Agencies

A shipping agency or shipping agent is the designated person or agency by
a Shipping line to represent their company and services and is held
responsible for handling shipments and cargo on their behalf

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NEGOTIATING OCEAN LINE PRICING
An ocean freight forwarding company that has regular transactions with shipping companies both
Steamship lines (SSL) or vessel owners has more chances of getting a space on board with better
deals. Thus, one of the reasons why it's always best to choose a freight forwarding company with
established relationships with carriers

SAFETY OF LIFE AT SEA (SOLAS)

The SOLAS VGM regulation specifically prohibits a packed container from being loaded on-board
a vessel if it does not have a VGM (Verified gross mass). Certain terminal operators have
stipulated that they may not accept a container into the terminal unless the VGM has been
provided. It is therefore extremely important for the Shipper to provide the VGM at the earliest
possible stage of the documentation process to ensure acceptance at the terminal and available
to load to the intended vessel.

The VGM is the certified Gross Cargo Mass (including the weight of all packing material) plus
container tare mass. VGM is required before loading a packed container to a vessel. Cargo will
not be loaded onto a vessel unless a certified VGM is provided.

OCEAN TRANSPORTATION PAPERWORK

The Master Bill of Lading

The Master Bill of Lading (MBL)
is a document created by
shipping lines companies or
vessel owners to forwarders or
customers. An MBL works as a
legal document for carriage
contracts and it summarizes the
contents of a shipment including
the bill of lading numbers
assigned to the various items
within the shipment, as well as a
description of the freight under
each bill of lading. The document
also includes the terms for
transporting the freight and the
name and address of the
consignor, or the shipper, and the
consignee, the person who
possesses the goods.

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 The House Bill of Lading
The House Bill of Lading (HBL) is a
document created by an Ocean
Transport Intermediary (OTI) such as a
freight forwarder or non-vessel operating
company (NVOCC). The document is an
acknowledgment of the receipt of goods
that are to be shipped. It is issued to the
supplier once the cargo has been
received and may be used instead of a
Master Bill of Lading (MBL). HBL includes
the name and address of the shipper,
who delivers the shipment to the freight
forwarder, and the consignee, who the
freight forwarder delivers the shipment to.
The document also includes specific
information about the items shipped and
the value of the shipping contract.

Original Bill of Lading

An Original Bill of Lading is produced and
provided to the shipper. The shipper will
either send the Original Bill of Lading to
the importer or usually hold it until
payment has been made to them. Upon
the shipper’s authorization to release
goods, the Original Bill of Lading can be
sent to the importer in which they can
surrender to the freight forwarding
company to secure the release of the sea
freight shipment.

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 Releasing Ocean Cargo
This type of release is easier but also riskier
than the OBL (Original bill of lading)
difference is that if the original is made, you
will need to have it in hand to be able to
release the merchandise, so there will be a
shipping cost of international
documentation, which can normally be
negotiated between both parties. However,
if it is the Telex Release you are using
depending on the shipping line can be an
internal email requesting the release or a
screenshot from the SSL system or a
document showing the telex release
confirmation.

Seaway Bill – Not Negotiable

Also known as “Express Release”, a
Sea Waybill is used when the shipper
decides to release ownership of the
cargo immediately. This means that the
goods can be delivered to the person
identified in the document, and they will
simply have to verify their identity and in
some cases depending on the shipping
line present a document named
“Seaway bill” to claim the freight. It is
important to mention that a Sea Waybill
only plays an evidential function and
does not give the title to the goods (non-
negotiable).

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PORT RESTRICTIONS

LFD LAST FREE DAY

Terminals charge demurrage fees if your cargo isn’t picked up within a certain number of "free"
days. To avoid demurrage fees, your cargo must be picked up by the Last Free Day.

DEMURRAGE
Import Container: Demurrage fees are charged when import containers are still full and under
the control of the shipping line. In this situation, the container has not yet been picked up by the
consignee, and the free time for pick up set by the ocean line has expired for the container.

Export Container: Demurrage charges occur after the loaded export container has been returned
to the possession of the steamship line but cannot be shipped out due to non-carrier related errors
once the allotted free time has expired.

DETENTION
Import Container: Detention/Per Diem is charged when import containers have been picked up,
but the container is still in the possession of the consignee and has not been returned within the
allotted time.

Export Container: Detention/Per Diem is charged for export containers in which the empty
container has been picked up for loading, and the loaded container is returned to the steamship
line after the allotted free time.

FDA & FDA RELEASE

FDA (Food and Drugs Administration) regulated products imported into the U.S. must comply with
the same FDA laws and regulations that apply to domestic products. Entries are submitted to U.S.
Customs and Border Protection (CBP) which then refers entries of FDA regulated products to
FDA for review.

Products considered higher-risk and entry submissions with incomplete or inaccurate information
are flagged for manual review by FDA to determine the admissibility of the product. FDA’s
screening tool uses various sources of information to assess risk; for example, a firm’s previous
compliance history or known compliance problems with a certain product.

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CONCLUSION
We have covered everything from brokers and carriers to claims and insurance and even billing
practices. We have talked about the many differences between Less-Than-Truckload freight and
Truckload freight, and when it is best to use both. We have touched on transportation
management systems, quotes, freight class, and even reefer trucks.

Also, we have seen in general the most important subjects in the freight forwarding industry, from
identifying the different types of carriers, the paperwork of those, the negotiation process, and the
additional services they could have.

You will find attached a Glossary of the many terms we have referenced in this book, along with
some frequently asked questions that we have compiled over the years.

We hope this book has introduced you to freight shipping in a way that is fun and easy to
understand, and that you’ll be able to look back as needed on the information and instructions it
provides.

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