What happens after a sea freight shipment docks?

In international logistics sea freight shipments are shipped on container vessels and are either consolidated shipments or single loads. A consolidated shipment (a shipment in a container with multiple consignees) is called a less than container load, or LCL, shipment. A single shipment that uses the entire container for a single consignee is called a full container load, of FCL, shipment.

Once a sea freight container arrives its desired destination port, a series of logistical and administrative processes begin. These steps are essential for ensuring the container's contents are properly handled, cleared through customs and eventually delivered to the consignee.

Here's a brief overview of what typically happens:

Docking: The ship carrying the container docks at the designated terminal within the destination port.

Unloading: Container cranes unload the containers from the ship onto the port's quay. This process is typically managed by the port authority or terminal operators.

Documentation Submission: The shipping agent or freight forwarder submits all necessary documentation to customs authorities. This includes the Bill of Lading, packing list, commercial invoice, and any other required documents.

Inspection: Customs authorities may decide to inspect the container, especially if it is flagged for random checks, contains restricted goods, or there are discrepancies in the documentation. Inspections can be physical (opening the container) or through scanning technology.

Duties and Taxes: Customs duties, VAT, and any other applicable taxes must be paid before the container can be released. This is typically handled by the importer and / or their intermediary / agent.

Customs Release: Once the container is cleared by customs, it receives a release order. This means it is authorised to leave the port and can be moved to the next stage of the logistics process.

Transfer to Storage or Direct Delivery: Depending on the logistics arrangement, the container is either moved to a temporary storage area within the port or directly loaded onto a lorry or train for delivery to its final destination. Extended storage can lead to detention fees (storage fees).

Devanning (LCL): If the container is an LCL shipment (contains goods for multiple consignees), it is often moved to a devanning warehouse, or container freight station (CFS), where the contents are sorted and separated based on their final delivery. FCL shipments can also be devanned at a CFS (or intermediary warehouse after clearance) if the consignee does not wish to devan the container themselves at their premises.

Delivery Scheduling: Once devanned, individual shipments are scheduled for onward delivery via various modes of transportation.

Transport to Final Destination: The container (or its contents) is transported to the final destination, which could be a distribution center, warehouse, or directly to the consignee’s location.

Unloading and Return of Container (FCL): Once at the destination, the FCL container is unloaded. The empty container is then either returned to the port for reuse or returned to the shipping line’s designated depot.

Container Return: Empty containers must be returned to the shipping line or a designated depot by a specified deadline to avoid demurrage charges (fees for late return).

Documentation: The final documentation copies, including proof of delivery, customs clearance documentation, and any other relevant paperwork, is completed and submitted to the relevant parties.

Record Keeping: Both the shipper and receiver keep records of the entire process for future reference, compliance and auditing purposes as required.

Freight and Handling Charges: Payment for the freight charges, port handling fees and any additional services like devanning or warehousing are settled between the various parties involved.

Each of these steps are essential in ensuring that the entire supply chain process operates smoothly, from the moment the container arrives at the port until the goods reach their final destination.

Is there another part of the process I should highlight? Let me know in the comments below.