Knowledge Module 1 Learner Guide

SAQA 96368 Knowledge Module 1

Open top

Tank

Container shipping is different from conventional shipping because it uses 'containers' of
various standard sizes - 20 foot (6.09 m), 40 foot (12.18 m) , 45 foot (13.7 m), 48 foot (14.6
m), and 53 foot (16.15 m) - to load, transport, and unload goods. As a result, containers can
be moved seamlessly between ships, trucks, and trains. The two most important, and most
commonly used sizes today, are the 20-foot and 40-foot lengths. The 20-foot container,
referred to as a Twenty-foot Equivalent Unit (TEU) became the industry standard reference
so now cargo volume and vessel capacity are commonly measured in TEU.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 400
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

The 40-foot length container - literally 2 TEU - became known as the Forty-foot Equivalent
Unit (FEU) and is the most frequently used container today.

The container sizes need to be standardised so that the containers can be most efficiently
stacked - literally, one on top of the other - and so that ships, trains, trucks, and cranes at the
ports can be specially fitted or built to a single size specification. This standardisation now
applies across the global industry, thanks to the work of the International Organisation for
Standardisation (ISO) that in 1961, set standard sizes for all containers.

Containers are generally constructed of aluminium or steel with each container size and type
built according to the same ISO specifications, regardless of where the container is
manufactured.

Shipping containers are available in a variety of types in addition to the standard dry cargo
container often referred to as "special" equipment. These special containers include open
end, open side, open top, half-height, flat rack, refrigerated (known as "reefer"), liquid bulk
(tank), and modular all built to same exterior lengths and widths as the standard dry cargo
containers. Containers in the global container fleet equate to more than 34 million TEU.

Open tops are used for easy loading of cargo such as logs, machinery, and odd sized goods.
Flat racks can be used for boats, vehicles, machinery, or industrial equipment.

Open sides may be used for vegetables such as onions and potatoes. Tank containers
transport many types of liquids such as chemicals, wine, and vegetable oil.

Every container has its own unique unit number, often called a box number that can be used
by ship captains, crews, coastguards, dock supervisors, customs officers, and warehouse
managers to identify who owns the container, who is using the container to ship goods and
even track the container's whereabouts anywhere in the world.

Proper loading or "stuffing" of containers is very important to the safety and stability of the
containers and the ships, trucks and trains that transport the containers and a number of
efforts have been undertaken to improve the safe handling of containers. Additionally, the
IMO has published the CTU code and the CTU Code Informative Material as two individual
circulars. Additional information about the background and development of the CTU Code is
available on the UNECE website.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 401
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Chapter 12 | Transport and accompanying documents [KM-01-

KT12]
The Topic Elements to be covered in the chapter referenced above include:

Topic Topic Element/Heading Knowledge Theory
12.1 Forms and uses of waybills KT1201
12.2 Uses of bills of lading manifest KT1202

By the end of this chapter, you should be able to demonstrate an understanding of the
following Internal Assessment Criteria or Learning Outcomes relevant to this topic:

No. Learning Outcome IAC
1 Identify and explain uses of waybills, bills of lading and IAC1201
manifests

Topic 12.1: Forms and uses of waybills [KT1201]

Documentary requirements 153

Documentary requirements for transport often stem from International Conventions and
Agreements, such as those from UNECE that relate to facilitation of transport when crossing
borders.

Documentary requirements deal with issues such as:

• Ownership of the goods, especially when this changes during transport; a particular
case is the negotiable bill of lading, which UNECE Recommendation No.12 suggests in
favour of the use of a non-negotiable sea waybill.

• Proof that required permits and certificates have been obtained for the goods, their
packaging, or for the means of transport or transport routes.

• Prescriptions to follow certain procedures, rules, routes, facilities and stops.

153 http://tfig.unece.org/contents/documentary-requirements.htm

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 402
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

• Documentation about the cargo (such as bill of lading, airway bill, rail or road
consignment note), which needs to accompany the goods during transport, as well as
the conditions for supplying these documents electronically.

• The conditions and liabilities under which the transport contract operates, in
particular the much-used Incoterms of the International Chamber of Commerce.

• Documentation to be supplied to the authorities, which includes declarations and
permits, but also accompanying documents such as a commercial invoice supplied
with a Customs declaration.

These documentary requirements influence document exchanges throughout the transport
chain and its management. Certain paper documents, especially waybills, may be required to
accompany the goods physically. These and other documents can be exchanged electronically
in advance of the physical arrival of the goods, allowing preparation to be done at an early
stage.

Even when paper documents have to accompany goods, exchanging them electronically will
allow a smooth passage through the procedures at arrival and will facilitate trade processes.
If documents only arrive with the goods or even later, this delays transport of the goods and
their delivery to the consignee.

Documentary requirements at the end of the transport chain (such as accompanying
documentation for Customs) may have to be gathered at the start of transport and passed
between all parties along the transport movement.

Waybills

A Waybill must be completed for every shipment as it helps to ensure timely, accurate and
secure delivery.

Why is Waybill Necessary?

• It tells the logistics service provider where your shipment is going, what service you
require and how you intend to pay.

• It tells you the terms and conditions upon which we provide our service. Please read
these carefully as they limit and, in some cases, exclude our liability.

• It gives you proof of consignment; with a unique number you can use on our web site
to track your shipment.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 403
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

• It tells Customs what is in your shipment, so that it gets cleared quickly and speeds
through to its final destination without delay. 154

FIATA Documents and Forms 155

From a global perspective, FIATA has created several documents and forms to establish a
standard use by freight forwarders worldwide. The documents are easily distinguishable as
each has a distinctive colour and carries the FIATA logo. FIATA documents have a recognised
tradition and trust. They contribute to the facilitation of international exchanges are valuable
instruments in the service of world trade.

• FIATA Forwarders Certificate of Receipt (FCR)

• FIATA Forwarders Certificate of Transport (FCT)

• FIATA Warehouse Receipt (FWR)

• Negotiable FIATA Multimodal Transport Bill of Lading (FBL)

• Non-negotiable FIATA Multimodal Transport Waybill (FWB)

• FIATA Shippers Declaration for the Transport of Dangerous Goods (SDT)

• FIATA Shippers Intermodal Weight Certificate (SIC)

• FIATA Forwarding Instructions (FFI)

Knowledge of FIATA documents and forms is essential for every freight forwarder around the
world, just as the promotion of uniform standards for freight forwarders documents and
forms is one of the most important objectives of FIATA.

More than 50 years ago it was felt that a certain degree of harmonisation and guidance in
freight forwarding documents and forms was desirable and for this reason FIATA created:

▪ 1955 the FIATA FCR - FIATA Forwarders Certificate of Receipt (green)
▪ 1959 the FIATA FCT - FIATA Forwarders Certificate of Transport (yellow)
▪ 1970 the FBL - FIATA Negotiable Combined Transport Bill of Lading (blue)
▪ 1975 the FWR - FIATA Warehouse Receipt (orange)
▪ 1984 the FFI - FIATA Forwarding Instructions (white)
▪ 1984 the FIATA SDT - Shippers Declaration for the Transport of Dangerous Goods

(white/red)

154

https: //www.dhl.co.za/en/expre ss/shipping/shipping_ advice /waybi ll_ guide .ht ml# : ~ : t e xt= It%20give s%20yo
u%20proof%20of,be%20used%20past%20that%20date .
155 https://fiata.com/resources/documents-and-forms.html

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 404
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

▪ 1992 the amended FBL - Negotiable FIATA Multimodal Transport Bill of Lading (blue),
replacing the FIATA Combined Transport Bill of Lading

▪ 1996 the FWB - Non-negotiable FIATA Multimodal Transport Waybill (white/blue)
▪ 1997 the FIATA SIC - Shippers Intermodal Weight Certification (white/green)
▪ 2005 the revised FIATA SDT - Shippers Declaration for the Transport of Dangerous

Goods (white/red)

as uniform standard documents and forms with distinctive colours.

This document is provided as part of your reference material. Please ensure that you have
access to it. 156

Topic 12.2: Uses of bills of lading and manifests [KT1202]

Bills of lading have been referred to extensively in this module. However, as require by the
curriculum in this section, we will discuss them again for revision purposes and from a
different perspective.

What Is a Bill of Lading?

A bill of lading (BL or BoL) is a legal document issued by a carrier to a shipper that details the
type, quantity and destination of the goods being carried. A bill of lading also serves as
a shipment receipt when the carrier delivers the goods at a predetermined destination. This
document must accompany the shipped products, no matter the form of transportation,
and must be signed by an authorised representative from the carrier, shipper, and receiver.

As an example, a logistics company intends to transport, via sea, petroleum from a port in
Nigeria to a port in Mozambique. A bill of lading with serve as the transport document and
the contract of carriage.

156 https://fiata.com/fileadmin/user_upload/documents/Diverses/FIA TA_Documents_and_Forms.pdf

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 405
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 406
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Key Points

• A bill of lading is a legal document issued by a carrier to a shipper that details the type,
quantity, and destination of the goods being carried.

• A bill of lading is a document of title, a receipt for shipped goods, and a contract
between a carrier and shipper.

• This document must accompany the shipped goods and must be signed by an
authorised representative from the carrier, shipper, and receiver.

• If managed and reviewed properly, a bill of lading can help prevent asset theft.

The bill of lading is therefore a legally binding document that provides the carrier andshipper
with all of the necessary details to accurately process a shipment. It has three main functions.
First, it is a document of title to the goods described in the bill of lading. Secondly, it is a
receipt for the shipped products. Finally, the bill of lading represents the agreed terms and
conditions for the transportation of the goods. 157

Manifest 158

A manifest is a compilation of information about the goods carried on a means of transport
(ship, airplane, truck, rail wagon and barge), together with the information about the means
of transport, such as its identification, characteristics, and route. A manifest as a paper
document is a cover page with information on the means of transport and aggregated data
on the goods transported, followed by the individual bills of lading of the consignments.

157 https://www.investopedia.com/terms/b/billoflading.asp
158 http://tfig.unece.org/contents/manifest.htm

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 407
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Purpose of the cargo manifest

A manifest can be exchanged for commercial purposes, for example the freight manifest
exchanged between two liner agents in the departure and the arrival ports.

The manifest can also be prepared for regulatory purposes, specifically the customs manifest
which needs to be sent to customs when arriving in the first port in a country. The difference
in information on the customs manifest and the freight manifest is usually marginal, but the
legal status of the two documents is completely different.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 408
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Facilitation through electronic exchange

A cargo manifest can be a huge compilation of paper documents and is either transported on
the means itself of transport or sent separately (by courier). Late arrival of the paper manifest
can considerably slow down the timely reporting to customs and hence delay the loading and
unloading of the goods.

Exchanging the manifest and bills of lading electronically allows sending the information
about the goods well in advance, even if paper documents are still accompanying the goods.
These advantages become even more important with the present security requirements,
where authorities wish to possess detailed cargo information enough in advance for proper
risk assessment. It has hence become common practice to exchange information about
individual consignments as early as possible.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 409
Training Authority (TETA). v 2021

SAQA 96368 Knowledge Module 1

Bibliography

Karla C. Shippey, J. (2009). International Contracts. Petaluma: World Trade PRess.

Learning materials developed by Global Maritime Learning Solutions (Pty) Ltd for the Transport Education 410
Training Authority (TETA). v 2021