Mediterranean Shipping Company CHSAir vs. Ocean Presentation

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Air freight

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Who moves my freight?NVO‘s and Indirect Air Carriers

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NVO‘s and IAC‘s = Cost EfficienciesPeace of Mind

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NVOCC’s make TEU commitments to the steamship lines in exchange for favorable pricing.

IAC’s make volume commitments to the airlines in exchange for favorable pricing.

Discounts are then passed along to the ultimate shippers.

Value added services such as freight forwarding, customs clearance are offered; giving clients a central point of contact handling their cargo efficiently, safely and cost effectively.

Utilizing a forwarder’s NVO or IAC services gives the client peace of mind that their shipment was moved in compliance with applicable international law.

By adding an NVO or IAC to the supply chain, logistics managers are working to insure that their shipment not only moves in the most cost-effective way, they also prevent delays at destination.

Many smaller companies do not have the leverage to gain concessions from steamship lines or airlines on their pricing; nor can they absorb the administrative burden of compliance with international law.

Float or Fly – How do I know?

Factors to consider:

Value of the goods

Cost of the transportation

Transit time

Destination

What type of Cargo flies?

Critical Parts

Small Samples

Delicate Freight

Project Cargo

What type of Cargo floats?

Raw Materials

Inventory Back-Fill

Bulky Items

Over-dimensional cargo

Air Freight is different

Freight arrives in days

instead of weeks

Less free time at destination

– typically 24 to 48 hours

File can be closed in the

same week it is opened

Air Freight is the same

Master bills of lading (MAWB)

Airline still must file MAWB in

AMS

Recap

To recap, air freight is both similar to and very

different from ocean freight. Before moving on,

are there are any questions that you would like to

have addressed based on what has presented thus

far?

Logistics and Beyond - Theory

EXPORT FROM U.S

Air or ocean – cargo delivered to port or

airport of departure.

Documents turned over to broker/forwarder.

Compliance transmissions made – AES, MBL,

HBL’s.

Shipping docs sent to destination for

clearance.

Cargo arrives; clearance is made; charges are

satisfied; transportation is arranged; freight

delivers.

EASY, HUH?

Logistics and Beyond - Reality

Shipment booked; transportation arranged.

Truck arrives; warehouse has no documents; hasn’t

been paid; and refuses to load freight until they

are paid.

Multiple phone calls between the forwarder,

supplier, seller ensue and cargo is finally loaded.

Cargo arrives; no documents with driver, cargo is

refused.

Multiple phone calls ensue and documents are

provided; cargo is accepted.

Cargo finally sails 2 vessels after the original

projected sailing date.

Import Logistics - Theory

How do companies get their goods into the

country and what happens once it

arrives?

• Cargo is picked up; documents are

sent forward; cargo arrives at

destination.

• Cargo arrives and clearance is made

with proper authorities.

• Charges are satisfied; inland

transportation is arranged; cargo is

delivered to the consignee.

EASY, HUH?

Import Logistics - Reality

Arrival notice matches no documents on file in the CHB office.

Emails are sent to the shipper, the steamship line, potential customers based

on the cargo description, and the overseas office.

2 days before LFD, docs arrive; cargo needs US Customs and 3 other agencies

clearance before the cargo can be released.

Cargo finally clears; inland transport is arranged and shipment is filed until

the claim is received.

Logistics Comedy Hour

Folding Chair Paint mishap

Alabama-Auburn – Roll Tide

Snapple and Ramadan

H/H Goods and a car

Air vs. Ocean Wrap Up

Import, export, air or ocean, one thing is

certain: Murphy’s Law was written by

someone in logistics.

Each mode has a cut-off. Lock-out = air;

ocean = cut-off.

Documentation and compliance

requirements

Import free time

AMS Transmissions

Paperwork must be accurate, complete and

timely.

Thank you!

Thank you for allowing me to join you today and give a little overview of how the

processes work outside of your roles. I hope the information was useful.

Despite what anyone tells you on the phone, remember this: If it isn’t a human

heart, lung, liver, or kidney moving for organ transplant; no one is going to die

over it. Try to have fun when possible.