Shipping cost is the freight cost for transporting the goods of the order from Country of Origin to Destination Country. Shipping cost can refer to ocean freight or air freight, FCL (Full Container Load) or LCL (Less than Container Load).
Once production of the order is finished or closed to finishing, Salesperson will send a task to Purchasing person to check and update shipping cost based on order requirements (type of shipment, type of container, container size, etc.).
For the shipping documents detailed information refer to Shipping Documents Reference.
Container types:
Normal temperature container: container without temperature control, suitable for most of the goods that don't have temperature-sensitive storage requirements, or for sensitive products during winter time.
Refrigerated Container (container with controlled temperature): container with built-in temperature control. This type of container requires to have power (be plugged in) at all the times, suitable for temperature-sensitive products during hot seasons. Refrigerated Container is often referred to as ‘RF container’ or ‘Reefer container’. The costs related to handling an RF container are higher than normal container, and the filling volume is lower than normal container due to insulation inside the walls.
Normal container sizes:
20 feet container, often referred to as ‘20GP’, ‘20FT’. Overall length: 20 feet. Filling Volume: 26-28CBM (actual filling volume is ~31CBM, but in reality 31CBM can fit into 20GP container only when all shippers are the same size).
40 feet container, often referred to as ‘40GP’, ‘40FT’. Overall length: 40 feet. Filling Volume: 56CBM (actually filling volume is ~58-60CBM, but in reality ~58-60CBM can fit into 40GP container only when all shippers are the same size).
40HQ container, often referred to as ‘40HC', ‘40 high cube’. Overall length: same as 40GP, but height is bigger than 40GP, therefore making 40HQ have higher filling volume. Filling Volume: 68CBM.
45HQ container: the most rare container size, not available for many destinations. Overall length: 45 feet. Filling Volume: 78CBM.
RF container sizes:
20RF
40RF
Updating shipping cost
After production is finished or finishing soon, Salesperson will send a task to Purchasing person to check and update shipping cost based on 20GP/40GP/etc. container, and specified Port of Discharge.
Purchasing person needs to then check Shipping Instructions document saved in the following server folder: Z:\Shared drives\AdvaCare Purchase India Control\AdvaCare Purchasing\Orders\’Open Orders XXXX’\’0000 - CLIENT - Country – Sales’\SHIPPING DOCUMENTS\CLIENT SHIPPING INSTRUCTIONS – 0000 AdvaCare SHIPPING INSTRUCTIONS
After all details are clarified, send the following information to the Freight Forwarder:
Port of Loading + Port of Discharge;
Container Type (if RF container is required);
Container Size;
Original BL or Telex BL (usually it is Telex BL for all India shipments);
Any other special requirements from the Customer, such as using specific shipping line (Carrier, for example, CMA), additional documents (such as COO), temperature of RF container, etc.;
ECTN required or not;
Switch BL required or not.
Follow up with the Freight Forwarder until the shipping cost is received, clarify available ETD and validity of the costs.
Send a task to Salesperson to inform of all the received information.
Freight Forwarder might provide all the shipment related charges, including so called ‘local charges’ which refer to the costs of handling the goods before they are loaded on board of the vessel. However, if AdvaCare has FOB terms with the Vendors, that means that Vendors are responsible to cover all the local charges. So Freight Forwarder will need to issue separate invoices to the Vendors to cover those costs after shipment departs.
With FOB terms, AdvaCare is responsible to cover the following costs: ocean freight/air freight cost, ECTN cost, Telex BL cost (if required), Switch BL cost, any special requirement cost. Handling, THC, etc. (usually quoted in local currency) should be covered by Vendor.