• Cargo Definitions

    Here is the dictionary for words that relate to cargo, shipping, forwarding, container, air carriers, and others.

    What are Destination Charges in the Freight Forwarding and Shipping Industry?

    When it comes to destination charges and other components of freight forwarding and shipping invoices we understand that many questions arise. Why does the setup of invoices vary so drastically between different Indonesian freight forwarding companies? Why are there different charges and costs with different freight forwarders? Are destination charges negotiable? And how much are actual destination charges?

    Read on to learn about destination charges in the freight forwarding industry, what they mean and why they seem to vary between different freight forwarders in Indonesia.

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    Goods Export Declaration Document (PEB)

    Export Declaration of GoodsExport Declaration of Goods (PEB) is a document that must be made by the exporter when going to export goods, it is based on Regulation of the Minister of Finance no. 155 / PMK.04 / 2008 concerning Customs Notices. The philosophy of this document is that any goods left or entered from or into the territory of the Indonesian republic shall be notified to the state in this case “represented” by Customs.

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    Certificate of Origin (CoO)

    Coo Form AA certificate of origin (often abbreviated to C/O or CoO) is a document used in international trade. In a printed form or as an electronic document, it is completed by the exporter and certified by a recognized issuing body, attesting that the goods in a particular export shipment have been produced, manufactured or processed in a particular country. A “Certificate of Origin” is also called a “Form A”

    Historical background

    The first certificate of origin was issued by the Marseille Province Chamber of Commerce at the end of the 19th century. The formalization in the role of chambers of commerce as issuing agencies for certificates of origin (CO) can be traced back to the 1923 Geneva Convention relating to the Simplification of Customs Formalities (Article 11) and has been reinforced with the updated Kyoto Convention.

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    Customs Broking

    Customs broking or customs brokerage is a profession that involves the “clearing” of goods through customs barriers for importers and exporters (usually businesses). This involves the preparation of documents and/or electronic submissions, the calculation and payment of taxes, duties and excises, and facilitating communication between government authorities and importers and exporters.

    Custom brokers may be employed by or affiliated with freight forwarders, independent businesses, or shipping lines, importers, exporters, trade authorities, and customs brokerage firms.

    Job Description

    Customs brokers help importers and exporters understand and meet the rules and regulations put in place by the federal government with regard to the trade industry. They educate clients about customs regulations, international tariffs, shipping restrictions, and insurance requirements.

    Other duties often include guiding goods through customs, preparing and submitting documents, determining tariff and duty payments, tracking shipments, and using the tariff coding system to classify shipments. Customs brokers might work as independent contractors and at airports, as well as within transportation, freight, and other companies that transport products internationally.

    The Secret to Understanding the Freight Rate Sheet – Abbreviations

    Accessorial Charges – Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, destination/delivery.

    Aden War Risk Surcharge – A surcharge on goods transiting the Gulf of Aden used to compensate shippers for additional costs including crew risk compensation, cancellation of economical speed, and redeployment of vessels.

    Ad Valorem – A term from Latin meaning, “according to value.” An import duty applied as a percentage of the cargo’s dutiable value.
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    Security Surcharge

    All shipments are subject to Security handling and a commensurate Security surcharge. It is important to meet government regulated Transportation Security Administration (TSA) requirements as to who has authorized access to aircraft and cargo at an active airport operation. It is also important to ensure that your very important shipment is Secure at all times from the elements of theft, damage or other unknown, unauthorized persons.

    You may be aware that couriers have been operating in accordance with Part 108 of the Airline Security Regulations since mid-2009. Amongst other measures, it involves a screening and handling process that all cargo must undergo with each and every airline before carriage of such goods can take place. Implementing and maintaining the required security measures that this additional regulation demanded, resulted in huge financial injections in the courier and freight industries globally. A security surcharge was introduced in the industry to offset these costs.

    Fuel Surcharge

    A fuel surcharge is a fee charged to you by trucking companies or air line to cover the fluctuating cost of fuel. Fuel surcharge is figured is to take the current average fuel price. A fuel surcharge is a way of adjusting the amount paid to move freight by taking into account significant variation in fuel prices, it is a method for sharing or transferring risk. Most carriers and shippers participate in a fuel program of some kind.

    Bulk Cargo

    Bulk cargo is commodity cargo that is transported unpackaged in large quantities. It refers to material in either liquid or granular, particulate form, as a mass of relatively small solids, such as petroleum/crude oil, grain, coal, or gravel. This cargo is usually dropped or poured, with a spout or shovel bucket, into a bulk carrier ship’s hold, railroad car/railway wagon, or tanker truck/trailer/semi-trailer body. Smaller quantities (still considered “bulk”) can be boxed (or drummed) and palletised. Bulk cargo is classified as liquid or dry.

    Shipping Glossary

    The Shipping glossary gives you a good overview of all the terminology used in the logistics world. Read through the different terms and ensure you understand the lingo. We are here to help with any questions.

    air cargo: Freight that is moved by air transportation.

    air carrier: An enterprise that offers transportation service via air.

    business logistics: The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.
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    What Is a Bill of Lading?

    A bill of lading is a shipping document used as a contract to show the final destination of where your goods are being shipped to. When booking a vehicle shipment you will be required to produce the following vehicle details:

    • Registration number for the vehicle
    • Vin/chassis number
    • Year of manufacture
    • Colour
    • Dimensions of the vehicle to include the approximate weight and cube
    • The condition of the vehicle including any scratches and/or dents
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