What is the Work Flow of a Shipping Company?

Definition/Meaning 

As 90% of the world's international trade is done through the ocean, the importance of shipping agent is very important in the process of sending goods and consignments from one country to another via ocean route. They are responsible for handling shipments at harbors worldwide.  

Before understanding the workflow of a shipping company lets first understand what are the shipping company and its agents. To start with we can say a shipping company is an individual or company who acts as an agent between business owners and port authorities. These companies work on behalf of exporter or importer as the case may be. They provide services for cargo handling, ship owning, etc. 

The Process 

 
It is commonly believed that the shipping process starts from the uploading of goods on the ship and ends on the unloading of consignments on the destination port. Rather the process of shipping starts from the time when the importer feels the need for the particular need and enquires for the exporters worldwide who can fulfill the need. 

There is a particular flow of the process that needs to be followed by the shipping companies in order to ensure timely delivery of goods and consignment.

 

• Uploading: Generally, goods are transported to the origin port using trucks and packed in designated sizes. These packed containers are uploaded on the ships when the ship is ready for the voyage. Along with the goods/consignments, the required documents such as the bill of lading, origin certificate, etc are also shipped from the origin port to destination port. 

• Export Custom: Before the goods are loaded on the ship or vessel and shipped, all the goods to be exported are custom cleared and only after payment of required export duty, these goods can cross the borders of the country. After payment of export duty, Bill of lading is handed over to the shipping agent.

• The Journey: Generally the whole journey of the consignment is completed in a single vessel but sometimes due to international rules and some technical difficulties, it may lead to the transfer of goods from one ship to another ship. When goods are transferred, the above bill of lading is also handed over.

• Import Custom: Once goods reach the destination port, these goods are unloaded by paying freight and demurrages. For clearance of goods, customs duty needs to be paid first by the individual or his agent.

• Handling Goods at Destination: From the time the goods are unloaded to the time goods are taken home or exported to some other place, these goods need to be kept safe in custom warehouses for which extra charges are paid. 

All the steps should be completed in a proper synchronized manner to ensure a cost-effective service. 

Conclusion 

As there is a number of participants and agents involved in the international shipping process involved in it. Most of the businessmen and exporters find it to be very cumbersome and time-consuming. This problem can be tackled by employing a shipping company for handling consignments from its origin to the destination for handling all the custom clearances and documentation part.
These shipping companies make the process very easy and cost-efficient for the businessman worldwide. They have a predetermined supply chain of people who are expert in handling daily cargo in international trade.

What Makes Warehousing An Essential Part Of Supply Chain?

As the name suggests Supply Chain is a term used to define a series of various interlinked activities which starts with raw material procurement and ends with the delivery of desired/ produced goods to the end user.

Generally, there is a time gap between order procurement and order fulfillment. In this meantime, the goods are stored safely in a place called Warehouse. So, warehousing or storage refers to preserving the goods in safe custody until they are dispatched. All the elements of Supply Chain Management or SCM works cohesively to maintain an uninterrupted flow of goods from its source to the final destination.
 

Warehousing is not a new concept in business, it has sustained decades of usefulness. If we talk about today, warehousing cannot be just referred to as storage of goods rather it is a whole group of activities responsible for the safe custody of goods resulting in timely fulfillment of orders. 

All the activities in warehousing help in optimizing the process of the supply chain. By reading below the mentioned points you will clearly know the important role played by warehousing in supply chain management:

Seamless Production: For an uninterrupted production and flow of goods is essential for producers to maintain a stock of raw material ready for production. Warehousing bridges this gap by providing an on-time supply of the required quantity is that the production doesn't stop. 

Fulfilling Periodical Demands: There are many businesses such as clothing business which has a seasonal demand. The woolen clothes production is completed in summers to fulfill the demand but these produced clothes need to kept safe somewhere and that place is a warehouse.

Benefits of Bulk Production: By investing a little in warehousing facilities a businessman can take advantage of large scale productions. These goods produced in large quantities can be stored in these warehouses and can be sold as per the needs of the market.

Fast delivery: By having warehouses in nearby locations. Order procurement becomes easy and safe. Perishable goods such as fruits, vegetables, and almonds need proper cold storage. These warehouses are created nearby the store for quick order fulfillment.

Custom Clearance: When goods are imported or exported to a foreign country, it needs to be custom cleared before it is handed over to the importer. Till the time goods are custom cleared, these goods need some safe storage. These type of warehouses are called bonded warehouses which are created by government nearby custom ports.

Conclusion

All the elements of Supply Chain are definitely an integral part of smooth working. A business can choose between various warehouse options available as per the needs. A smart business should use warehousing services strategically in its supply chain for creating time utility. If you own a large business it is better to own a personal warehouse but if you have a small business, it is better to rent out some space. You can choose from various service providers, providing services of renting a warehouse at very low costs.

Why Choose Sea Routes Services while Shipping?

Transportation is considered as one of the biggest constraints in the successful running of a business. After the cost of the product, the next big factor is the transportation cost which affects the overall profitability of the products and services. 

Business exporters and importers cannot afford to own their transportation methods hence, it is better to have some experienced service provider to do the job.   

For shipping to and from foreign countries like Afghanistan, it is a well-known fact that using sea route for shipping is much more cost effective than using air freight. Especially when you are transporting through India or Pakistan, the ocean route takes much time but is a cheaper source of finance. This is the reason why maximum foreign business is done via sea routes. 

 

There are many sea freight services Afghanistan and service providers who can provide easy shipments and transportation. The key advantages of choosing these service providers are listed below. 

Key Advantages 

Cost Effective

For all the business owners, achieving low-cost transportation is one of the biggest tasks in the supply chain. For saving those extra bucks it is always advisable to choose sea freight services Afghanistan for delivery. If any entrepreneur chooses air freight, it is definitely going to affect the cost budget in an adverse manner. The transport medium should be utilized and monitored closely. Sea freight services Afghanistan provides a flexible and economical solution through bulk shipping. Unless and until the product is required on an urgent basis it is advisable to utilize sea freight services in Afghanistan to gain the maximum advantage of these service providers. 

No Limitation on Dimensions 

While shipping through land and air routes, its been regularly witnessed that dimensions and weight of the containers have generally brought hindrances in shipping. On the other hand, there are no restrictions on the size and weight of goods on containers to be shipped. Sea freight services Afghanistan offers flexibility in choosing the size and weight of the containers and goods to be shipped.  

Delayed Payments 

Shipping through sea routes will definitely take some more time than any other routes. In the mean time, it can be easier for the businessman to arrange some funds for payments. Also, there are some sea freight services Afghanistan who provides financial assistance for payments. 

Go-Green method 

The whole world is aware of the bad impact on the environment made by industries and their harmful by-products. Using sea freight services Afghanistan helps in this initiative to save our environment from more damage. Air route and land route transportation are often more harmful to the environment. The ships in the sea route have huge capacities and can carry heavy goods effectively and efficiently.