The Origin Process: Ensuring The Safe Arrival Of Your Goods

2023-01-31

Origin Process: Ensuring the safe passage of your goods

At JIKEship, we want to provide our customers with the best possible service - minimizing their costs and risks and creating a hassle-free environment for them to ship their goods around the world. Doing so has never been more important than at "origin". The early stages of the journey are driven by a number of important processes that are critical to ensuring the safe passage of cargo and customer peace of mind.

We spoke with JIKEship's Global Head of Customer Service to find out what the origin process entails. She described what the potential risks are and how we manage them at JIKEship.

Understanding the origin process

The origin process depends on the international commercial terms or Incoterms agreed between the supplier and the buyer - this can vary and affect the responsibilities we take on during the shipment. One of the most common terms we encounter is "free on board" (FOB). In this case, for example, the process begins when a buyer or supplier logs into the JIKEship platform and makes a booking. Depending on who initiated the booking, the other party then confirms the booking - indicating that both parties have agreed to what is expected.

Once things are confirmed, both parties receive a confirmation letter with detailed information about the vessel, voyage, estimated port of loading departure (ETD), estimated time of arrival at the port of discharge (ETA), and other necessary information. For buyers, this means they can plan the arrival of their cargo and start tracking the journey on JIKEship. Next, it is important to upload all the necessary shipping instructions, load the container and clear it through customs. Most of this is handled by the supplier, but we will keep you informed of any changes and notify the buyer.

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Once the container has been loaded and the vessel has left, the supplier's responsibility ends under FOB incoterm. Therefore, it is important that we ensure that everything is loaded correctly and that all parties are aware of any changes to the schedule.

Finally, we will review the bill of lading (BL), which is an important document that allows the release of the goods to the consignee - so it is also important that the bill of lading is accurate. In addition to the B/L, there are also customs documents such as commercial invoices and packing lists that are required for import procedures.

origin process

What are the risks associated with the origin process?

There are many issues that can arise when preparing goods for export. The following are some typical problems that can happen to any supplier anywhere.

  • Space shortage - With all the giant cargo ships and freighters out there, it's hard to imagine a space shortage when trying to secure a small 20-foot container. But it's happened before and it's sure to happen again - so it's important for our customers to anticipate busy times like Christmas or New Years.
  • Container roll - There are many reasons why your container may not be loaded as planned. Some of these are beyond your control, such as carrier capacity issues. Other reasons may include delivery trucks breaking down and your container being late at the loading port, or your carrier not clearing customs by the carrier's deadline.
  • Interim Fees - In addition to the local fees that apply to each shipment, suppliers should be very aware of additional costs during the export process, such as demurrage and detention fees, customs declaration amendments, late filing penalties or other modifications.¬†These costs can run into thousands of dollars, which is why it is so important to get the origin process right.

How do we hedge these risks?

At JIKEship, we do a lot to mitigate and avoid these risks for our clients. We have nearly a decade of experience in the freight forwarding industry. We have the advantage of this knowledge and expertise and can often resolve many issues before they reach our customers. In addition, we actively work with our suppliers to closely monitor progress through our 7 key milestones. the JIKEship platform is constantly evolving and updating to ensure an increasingly seamless experience and integrated portal for our customers.

The origination process is intricate and attention to detail is key. One of the best pieces of advice I can give is to make sure you book in advance - at least five days before the "shipment ready date". With a good forecast, this should be easy and it gives us time to do the best job for you. Beyond that, please remember that we are always here to help you and if you have any questions, queries or comments during the process, please feel free to contact us! If you've never booked through us before, get in touch and we'll show you how to make the whole process smoother!

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