Bill of Lading (B/L)

The Bill of Lading (B/L) or bill of lading is an official shipping document that basically indicates the owner of a sea cargo. The Bill of Lading states what the cargo consists of, from and to which port it is being shipped, and who the shipper and consignee are. These transport arrangements are also known as bills of lading. The person who holds the B/L can dispose of the cargo.

A B/L can be referred to as 'transferable', meaning that ownership of the goods can be transferred from one party to another until delivery. In addition to the original Bill of Lading, Waybills are also used. Here, only a copy of the Bill of Lading is sufficient to take delivery of the cargo. Through B/L tracking, the status of a sea freight shipment can be traced.

Further, there are the House B/L this is provided by a forwarder to the shipper. And Master B/L (MBL) is used which is provided by the shipping company to the shipper.

Cargodoor

A shipbroker is a ship charterer who organises transport contracts between the shipowner and the shipper (provider of the cargo), a mediator between shipowner and shipper. As a representative of one or more shipping companies, the ship broker ensures that ships are assigned berths and that ships are chartered and unloaded according to schedule. A ship broker is also called ship's agent or ship's broker. In sea freight, a ship broker is an important pawn.

Demurrage

Demurrage is the English name for demurrage and is used in sea freight. This is the compensation paid to the shipping company for a delay for which it is not responsible and which lasts longer than the agreed laytime. Either the container stands longer at a shipowner's terminal because it cannot yet be loaded for export or, in the case of imports, has not yet been collected from the terminal.

In a charter, a laytime is agreed for loading and unloading. For example, an x number of days at the port of Rotterdam. In case this period is exceeded beyond the responsibility of the shipowner, it is demurrage. Depending on the agreement between shipowner and client, the shipowner is entitled to compensation for costs in the form of demurrage.

The difference between demurrage and detention
The terms demurrage and detention are often used interchangeably. Detention refers to compensation resulting from longer than agreed use of equipment such as a shipping container. In other words, the container is made available later than the agreed period (free time). The free time, which is often negotiable, is usually longer for detention than for demurrage as space at terminals is limited and expensive. Shipping companies therefore have an interest in getting containers off the terminal as soon as possible. Therefore, demurrage costs also tend to be higher than detention costs.

The costs for demurrage and detention are determined by the shipping company itself. The person who books the sea freight is liable to the shipping company for demurrage and detention as the contractual counterparty.

Main causes of demurrage and detention
The causes of demurrage and detention charges arising are diverse. The most common causes are:

1) Delay due to incorrect documents

2) Delay due to late receipt of documents

3) Delay due to loss of documents

4) Delay due to customs clearance or inspection of cargo

5) Delay release of transport at destination

6) Delay due to unreachability of consignee

NVOCC

NVOCC is a term used in ocean freight and stands for: Non-Vessel-Operating Common Carrier. An NVOCC is a sea freight forwarder that does not have its own transport units (ships) and therefore uses third-party ships. However, the NVOCC does provide its own transport document for a sea freight shipment ('Bill of Lading') and thus assumes the responsibility of the ocean carrier. An NVOCC does the same thing as a sea freight forwarder/groupeur; both put together FCLs. While they are no different from each other in this, they are completely different from each other in a legal sense. An NVOCC, despite not having its own means of transport (ships), expressly acts as a carrier with the liability befitting a carrier. And this is much greater than that of a freight forwarder.

ISF

ISF stands for Importer Security Filing and applies to ocean freight to the United States. ISF, also known as 10+2, is a regulation that obliges importing parties in the United States to declare (or have declared) general specifications of the goods to be imported to US customs. Depending on the agreed incoterm, the (Dutch/Belgian) exporter or the importer in the United States is obliged to deliver this information to the US customs authorities no later than 24 hours before loading the goods on board the ship.

This information includes the name and address of the manufacturer, exporter, seller and buyer, delivery address in the United States, location where the container is consolidated, country of origin of the goods and the statistical number. Needless to say, Rotra is happy to assist you with this: rtm.export@rotra.nl

What is AMS Filing?
AMS stands for Automated Manifest System and applies to ocean freight and air freight to the United States and Mexico. Because of the need to reduce security risks, US Customs must know what is loaded on board 24 hours before the ship leaves the port of loading. This filing applies to goods with final destinations America or Mexico and also applies to goods that are transhipped in these two countries.

For Dutch and Belgian exporting parties to the United States, this means that they are required to declare what they are going to export to the United States well before the ship leaves the loading port. Shipping companies thus use so-called AMS closures for this purpose. If shippers do not submit their B/L instruction in time for AMS closure, the containers will not be loaded on board.