IF1u—Overview of International Air and Ocean Forwarding (U.S.)

Subscriber price: $258.00, Non-subscriber price: $335.00
Estimated total study time: 22 hours 7 minutes

This course provides an overview of the services provided by international freight forwarders, with focus on air and ocean cargo transportation. It is intended for:

Exporter personnel wishing to learn about the services and operational procedures of international forwarders in the U.S.
Personnel newly employed by U.S. forwarders in non-operational job assignments (e.g., accounting, HR, IT and other business support positions) to gain quick awareness of company services, customers and regulatory environment.

See also course IB1u—Overview of U.S. Customs Brokerage: Import Process, Operations and Relationships.

For entry-level forwarder personnel hired or transferred into operational positions, more in-depth training is needed. Refer to other operationally oriented courses in the GISTnet Course Catalog.

Introduction to Freight Forwarding and Cargo Transportation

This first lesson sets up our topic by focusing on the responsibilities and multi-modal knowledge a freight forwarder (also known as a transportation intermediary) should have to properly serve his/her customer, the shipper.

(Estimated study time: 1 hour 5 minutes)

Introduction
Our Professional Mandate
- Our Focus: Customer Need Determines Transportation Solution
- Competitive Advantage
- Performance vs. Cost
Our Work and Learning Challenges
Basic Freight Forwarder Functions and Opportunities
- Traditional Single Mode Expertise
- Delivery Terms (Trade Terms) Determine Extent of Through Transportation

Freight Forwarder Functions and Opportunities (U.S.)

(Estimated study time: 1 hour 6 minutes)

Introduction
Freight Forwarder Functions and Opportunities
- Traditional Single Mode Expertise
- Through Intermodal Surface Transportation
  - (U.S.) Through Intermodal Surface Transportation
    - Government Regulation—Current Trends
  - U.S. Regulations
- Through Airfreight Transportation
- Delivery Terms (Trade Terms) Determine Extent of Through Transportation
- Multimodal Expertise Now an Imperative

Basic Cargo Transportation Concepts

(Estimated study time: 44 minutes)

Introduction
Cargo Transportation—Basic Concepts and Issues
- Physical Movement—Visualize What Will Happen
- Cargo Security/Safety
- Predictable Destination (Delivery Point)
- Predictable Departure and Arrival Times
- Predictable Cost or Alternative Cost
- Making it Happen: Transportation Modes, Carriers and Expertise
What is a Cargo Transportation Carrier?

Modes of Cargo Transportation: Vessel

(Estimated study time: 2 hours 8 minutes)

Inland Waterway and Intra-Coastal (Short-Sea) Transportation
- History
- Advantages of Inland Waterway and Inter-Coastal (Short Sea) Transportation
- Disadvantages/Limitations of Inland Waterway Transportation
Deep Sea (Ocean) Transportation and Shipping
- History
- Advantages of Deep Sea Transportation
- Disadvantages/Limitations of Deep Sea Transportation
- New Options in Ocean Cargo Transportation

Modes of Cargo Transportation: Rail and Truck

(Estimated study time: 1 hour 14 minutes)

Rail Transportation
- History
- Advantages of Rail Transportation
- Disadvantages/Limitations of Rail Transportation
Truck Transportation (Motor Carriers)
- History
- Advantages of Truck Transportation
- Disadvantages/Limitations of Truck Transportation

Modes of Cargo Transportation: Air; Cost Comparisons Between Modes

(Estimated study time: 1 hour 1 minute)

Air Cargo Transportation
- History
- Advantages of Airfreight
- Disadvantages/Limitations of Airfreight
Other Mode Carriers
Cost Comparison of Cargo Transportation Modes

Cargo Transportation Trends

(Estimated study time: 46 minutes)

Introduction
Cargo Transportation Trends as Part of Broader Logistics Services
- History of Multimodal Indirect Carriers (Consolidators & Door-to-Door)
- The Single Source "Door-to-Door" Logistics
  - Recent Industry Trends—Forwarders Extending Scope of Services
  - Current Logistics Services in Response to Shipper (Customer) Preferences
  - Seamless Logistics and Information Systems

Direct vs. Indirect Carriage; Carrier-to-Carrier Contracting

(Estimated study time: 57 minutes)

Introduction
Direct vs. Indirect Carriage
- General
- Direct Carriage
- Indirect Carriage
- Indirect Carrier Terms and Conditions; Carrier Liability
  - Minimum Standards for Carrier Financial Responsibility
    - FMC Financial Requirement for Ocean Forwarders and NVOs
    - Requirements for Truck Carriers and Property Brokers
- Direct and Indirect Carriage Combinations
Carrier-to-Carrier Arrangements
- Co-Loading
- Substituted Service
- Cargo Pooling/Joint Services
- Sub-Contracting of Conveyances/Conveyance Operators

Cargo Transportation Carrier Tariffs

This lesson covers the generic features, distinct sections and typical content of cargo transportation tariffs.

(Estimated study time: 49 minutes)

Introduction
Carrier Tariffs—General
- Tariffs & Common Carriage
- Tariff Format—General
- Table of Contents
- Rules Section
- Commodity/Class Index
- Rate Section(s)
Shared Tariff Arrangements
- Joint Tariff Filing
- Participation in the Tariff of Another Carrier
- Adoption by Reference
- Limitations of Shared Tariff Arrangements

How Freight Charges ("Freight Rates") are Determined; Factors that Influence Rates

(Estimated study time: 1 hour 4 minutes)

Introduction
Cargo Metrics and Conversion Factors
- General—Weight and Cube
- Measuring Cargo
- Conversion Factors between Metric and English
Transportation Mode
- Water Mode
- Rail Mode
- Truck Mode
- Air Mode
Geographical Routes/Routing Options
Commodity

Cargo Suitable for Air Shipment

(Estimated study time: 1 hour 7 minutes)

Introduction
Why Ship by Air?
- Air Cargo Benefits
- Air Cargo Limitations
- Value-added and Integrated Air Shipment Services
Types of Cargo Suitable for Air Shipment
- Small Packages—The Earliest Commercial Air Cargo
- General Cargo
- Air Shipment Operational Characteristics and Limitations
  - General—Air Shipments Primarily Limited by Size and Weight
  - Points of Service vs. Aircraft Size
  - Air Cargo Containerization
  - Charter Aircraft Options to Meet Various Needs
    - General—Air Charters Expand Air Transportation Options
    - Shipment Urgency
    - Locations Not Served by Scheduled Airlines
    - Shipments Requiring Extra High Security
    - Large Regular Cargo Flows
    - Peak Season or Backlogged Transportation
    - Outsized or Very Heavy Cargo Items

Shipments that Justify Air Shipment

(Estimated study time: 40 minutes)

Introduction
Shipments that Justify Air Transportation
- General—Cost-Justifying Air Shipment
- High Urgency Shipments that Require the Shortest Available Transit Time
- High Security Shipments
- Small Shipments
- Remote/Isolated Locations
- Tools of the Trade; Personal Effects
- Entertainment & Athletic Group Equipment
- Fairs/Exhibitions/Artwork
- Live Animals
- Human Remains

Air Cargo that Requires Special Handling and/or May Be Restricted

(Estimated study time: 43 minutes)

General—Shipper Responsibilities for Cargo Requiring Special Handling
Cargo Temperature Sensitivity and Control
- Temperature Ranges during Air and Ground Transportation
- Protecting Products Sensitive to Temperature Extremes
- Air Shipment of Products that Require Temperature Control

Air Forwarder Consolidation Co-Loading

(Estimated study time: 55 minutes)

Introduction
Air Cargo Consolidation & Co-Loading Process Overview
Air Cargo Consolidation Gateway and Re-Consolidation Network Overview

Air Forwarder Services Overview

(Estimated study time: 1 hour 11 minutes)

Airfreight Forwarder Services—Overview
- What Is an Air Forwarder?
- Air Forwarding—a Knowledge-based Business
- The Air Forwarding Process
  - Process Overview
  - The Key Players
- Introduction to Technical Terminology

Forwarding as Part of Supply Chain Logistics

(Estimated study time: 40 minutes)

Introduction
Extended Logistics Services
- What is "Logistics"?
- Cargo Assembly
- Warehousing & Distribution
- Dedicated & Implanted Services
- End-to-End Supply Chain Management
Forwarder Relationship with Other Transport Service Providers—General

Forwarder Networks & Other Relationships

(Estimated study time: 1 hour 3 minutes)

Air Forwarder Operational Networks—Offices & Agents
- Operational Requirements at Origin and Destination Airports
- Competitive Concerns When Using Agents—Sales Neutrality, Cooperation
Cargo Insurance
- Relationship with Insurance Broker
- Insuring International Air Shipments
- "Insuring" Domestic Air Shipments
Customs Brokers
Other Mode Forwarders/Logistics Services
Government Regulation of Air Forwarders

Origin Station Tasks Sometimes Required; Origin Station Job Titles

(Estimated study time: 1 hour 0 minutes)

SOMETIMES-Required Origin Station Clerical & Communications Tasks
- Cargo Consolidation
- For International shipments
- Additional Services at Shipper's Request
Origin Station Clerical Job Descriptions/Titles

Destination Agent Functions; Air Forwarder Management

(Estimated study time: 45 minutes)

Functions of Air Forwarder Destination Agent
- Cargo Consolidation "Breakbulk"
- Cargo Assembly Breakout
- Shipment Delivery
- Customs Clearance for International Free Domicile Shipment
- Mutual Sales
Air Forwarder Management Functions
- General—Functions of Management

Air Forwarder Management, cont.

(Estimated study time: 45 minutes)

Company-Wide Responsibilities
- General Management
- Management Structure
- Sales & Marketing Management
- Specialized (Staff) Functions/Managers
Station/Branch/Terminal Management
- Tasks Performed
- Typical Job Titles
Department and Work Group Supervision
- Tasks Performed
- Typical Job Titles

Introduction to Ocean Forwarder Services

(Estimated study time: 55 minutes)

Our Professional Mandate
- Our Focus: Customer Need Determines Transportation Solution
- Competitive Advantage
- Performance vs. Cost
Ocean Forwarder Process Overview
- Process Flowchart
- A Generic Depiction of "Good Practice"
- Flowchart Organization & Notes
  - The "Overview" vs. Breakout Flowcharts
  - Organization, Redundancy and Repeated Steps
    - General
    - Flowcharting: Functional vs. Associative Sequence
    - Recurring vs. New/Special Shipments
    - Un-Planned Requirements; Shipments Underway
  - Communications
    - Selection of Communication Mode
    - Initial vs. Confirming Communication
  - Devil in the Detail

Introduction to NVOCC Services

(Estimated study time: 1 hour 31 minutes)

Competition between VOCCs and NVOCCs
- General
- Basic Competitive Advantages, VOCCs vs. NVOCCs
- Historic VOCC Resistance to Service Contracts with NVOCCs (U.S.)
- The Competitive Impact of Service Contracts
- Current VOCC vs. NVO Marketplace Conditions
NVO Services Overview
- Scope of NVOCC Services
- Historical Background
- NVO "Sell Rates" (Revenue); Freight Rate Influences
- Rate Offers & Quotations
- Regulation & Tariff Publication
  - U.S. NVOCC Service Arrangements (NSAs)
  - NVOCC Negotiated Rate Arrangement (NRA)
Shipping Non-Containerized Cargo as an NVOCC
Overview of Co-Loading Relationships & Process
- U.S. FMC Regulation of Co-Loading