Essential Sea Freight Shipping Documents You Need to Know

Ocean freight shipping, or sea freight, is one of the most commonly used shipping methods in international trade. The process involves various procedures and requires important documents to ensure smooth delivery and compliance with international and national regulations. Here is a complete guide to the documents required in sea freight and their functions.

1. Bill of Lading (B/L)

The Bill of Lading is a very important document in sea freight, issued by the carrier to the shipper. This document serves as:

• Proof of delivery of goods.
• Receipt of goods.
• Document of ownership of the goods.

The Bill of Lading contains detailed information about the goods being shipped, such as description, quantity, and destination. The B/L also serves as a contract between the shipper and the carrier, and is required to claim the goods at the port of destination.

2. Commercial Invoice

A commercial invoice is an invoice issued by a seller to a buyer, which contains details of the goods shipped, the price, and payment terms. The main functions of this document are:

• Used by customs in the destination country to determine the value of goods and the amount of customs duties to be paid.
• Used by banks to process payments in international transactions.

Commercial Invoices are very important to ensure that the value of the goods shipped is recorded correctly and in accordance with international trade regulations.

Illustration of logistics item list invoice.

3. Packing List

Packing List is a document that details the contents of each container or package being shipped. This document includes information about the quantity, weight, and dimensions of each item, as well as the way it is packed and any special markers. Packing List functions include:

• Assist the process of checking and counting goods at the port.
• Make it easier for customs to carry out inspections.
• Ensure that the consignee receives all items shipped in accordance with the order.

4. Certificate of Origin

Certificate of Origin is a document that states the country of origin of the goods being shipped. This document is often required by customs in the destination country to:

• Determine the rate of import duty.
• Verify that goods qualify for free trade or certain tariff preferences.

A Certificate of Origin is usually issued by the chamber of commerce or competent authority in the country of origin of the goods. This document is important to avoid trade barriers and ensure compliance with international trade regulations.

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5. Shipping Instruction

A Shipping Instruction is a document provided by the shipper to the carrier or forwarder, containing detailed instructions on how the goods should be shipped. This document includes information such as:

• Details about the shipper and consignee.
• The type of shipping service desired (e.g. Full Container Load/FCL or Less than Container Load/LCL).
• Special shipping instructions such as special treatment of certain goods.

The Shipping Instruction is essential to ensure that the carrier or forwarder fully understands how the goods should be shipped, including any conditions that must be observed during the shipping process.

6. Delivery Order

A Delivery Order is a document issued by the carrier or the carrier's agent to the consignee, allowing them to pick up the goods from the port or warehouse of destination. This document serves as:

• Proof that the goods have arrived at the port of destination.
• Permission for the consignee to pick up the goods that have been delivered.

Delivery Orders are usually only issued after all shipping and administrative costs have been paid by the consignee.

7. Air Waybill (AWB) dan House Air Waybill (HAWB)

Air Waybill (AWB) is an air transportation document that serves as proof of delivery of goods by air. The main functions of the AWB are:

• As a receipt of goods by the carrier.
• Transportation contract between the shipper and the carrier.

House Air Waybill (HAWB) is an AWB issued by the freight forwarder to the shipper, functions similar to the AWB, but is used in freight shipments coordinated by the forwarder for shipments with combined cargo.

8. House Bill of Lading (HBL)

House Bill of Lading (HBL) is an ocean transportation document issued by the freight forwarder to the shipper. It functions similarly to a Bill of Lading (B/L) but is issued by the forwarder for shipments coordinated by them. The HBL includes:

• Shipper and consignee details.
• Description of the goods being shipped and the destination of the shipment.

The HBL is especially important in shipments that involve multiple parties or when goods are shipped as part of a combined cargo.

Illustrative Insurance Certificate for protection and safety during shipment.

9. Insurance Certificate

The Insurance Certificate proves that the goods being shipped are insured. This insurance provides protection against the risk of damage or loss during shipment. This document is required to:

• Ensure the financial security of the shipper and consignee.
• Ensure that losses that may occur during shipment can be compensated.

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10. Export/Import License

An Export/Import License indicates that the shipper or consignee is licensed to export or import the goods. This document is required to:

• Ensure that the parties involved in the shipment comply with export and import regulations in the country of origin and destination.
• Avoid legal issues that may arise from violations of international trade regulations.

Understanding and properly preparing these documents is an important step to a smooth shipment of goods by sea. Shippers must ensure that all documents are complete and in line with requirements to avoid problems during the shipping process, as well as to ensure that goods can reach their destination safely and on schedule.

By complying with regulations and fulfilling all document requirements, the process of shipping goods by sea freight will become more efficient, safe and reliable. Up-to-date and valid information regarding these documents can be obtained from port authorities, shipping companies, and international trade institutions.

At forwarder.ai, all documents required for freight forwarding are digitally recorded, making the document management process easier and more efficient. You no longer need to manually manage various documents such as Bill of Lading, Commercial Invoice, or Packing List, as our team will take care of all the documents required by the fleet and shipment from start to finish. All you need to do is fill out a simple form through our application, and all your shipping document needs will be handled professionally.

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