The Role of Arrival Notice and the Flow of Cargo Pickup

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Hello, it’s IINO.

In this video, I would like to explain about Arrival Notice, a document that appears when importing cargo. This is a very important document, that is required when you pick up the cargo.

I will explain the role of the Arrival Notice and the process of picking up the cargo.

What Arrival Notice Is

Arrival Notice is issued by the shipping company before the cargo arrives in the importing country.

It is often abbreviated as “A/N”.

Once the importer receives Arrival Notice, it can proceed with preparations to pick up the shipment.

Basically, the forwarder will perform the pickup operation on behalf of the importer.

The forwarder must handle this pick-up process quickly and without mistakes, so that the cargo can be delivered to the importer as soon as possible.

If you do not understand the contents of Arrival Notice well, you may end up causing trouble in the process of picking up the cargo.

Role of Arrival Notice

The three main roles of Arrival Notice are as follows;

1. Billing statements from shipping companies
2. Notification of arrival schedule and delivery address
3. Confirmation of free time

The forwarder confirms the above three points and prepares to pick up the shipment.

I will explain each of them in detail.

Billing Statement

First, I will explain its role as a billing statement.

The statement is often found at the bottom of the Arrival Notice along with the ocean freight charges.

Major expense items are as follows:

・Ocean Freight（O/F）
・Terminal Handling Charge（THC）
・Delivery Order Fee（D/O fee）
・Documentation Fee（Doc Fee)
・Bunker Adjustment Factor（BAF）
・Currency Adjustment Factor（CAF）

Ocean Freight is listed in Incoterms, where the importer bears the ocean costs, such as EXW, FAS, FCA, and FOB, or where the importer pays as a matter of custom.

THC, container handling charge, is that includes unloading, and work in bonded areas. If the cargo is LCL, there will be an additional CFS Charge.

D/O Fee is the fee for having the shipping company issue D/O required for picking up the imported cargo.

Doc Fee is the one, for having the shipping company issue B/L and other shipping documents.

In addition, there are surcharges, such as BAFand CAF, that vary depending on fuel and exchange rates.

In most cases, the shipping company will notify you in advance of such surcharges. If they are included in the cost without notice, you should check with the shipping company to make sure.

Notification of Arrival Schedule

Next, I will explain its role as a notification of port arrival information.

If you have received Arrival Notice, it means that the cargo ship will arrive at the port in the near future. You should check the destination, CY or CFS, to ensure prompt pick-up operation.

In large ports, such as the Port of Tokyo and Osaka, there are several bonded areas. Thus, there is a possibility that you may accidentally tell the shipping company a different delivery destination.

It causes not only inconvenience to the delivery company on the way to the destination. It also adds to the delivery fee for the detour and in the worst case, you may not be able to pick it up on the same day.

Confirmation of Free Time

Finally, let’s talk about checking free time.

Free time refers to the period of time during which imported cargo can be stored free of charge in the bonded area of the port.

Generally, the free storage period for containers is around one week, but each shipping company has a different period, so be sure to check.

Once Free Time is over, demurrage, excess storage fee, will be charged.

Flow After Issuing Arrival Notice

Now, I will explain the process after Arrival Notice is issued.

Arrival Notice will be notified to the company, such as buyer, forwarder and others, listed in the Notify Party section of B/L.

In some cases, the notifying party is the importer, but in this video, we will focus on the forwarder.

Shipping Information from Forwarder to Importer

Arrival Notice will be sent to the forwarder by e-mail or fax.

They would confirm the arrival schedule and delivery address and notify the importer them. In the case of urgent, the importer is waiting to be informed of the arrival, so be sure to contact them promptly.

Settle the Remittance to Shipping Company

The forwarder will check the billing information and pay the shipping company.

The point to be noted here is whether or not “ocean freight” is mentioned.

In rare cases, ocean freight may be listed as an expense item, even though it is Freight Prepaid. In such a case, contact the shipping company and ask them to correct it or pay it once and offset it on the next transfer.

Payment Method

Payment methods are also listed on Arrival Notice. Most of the payments are made by wire transfer to a designated account, but card payments have also been introduced recently.

Submit Original B/L

In the case of original B/L, it must also be submitted to the shipping company.

Since the original B/L also serves as securities and is difficult to handle, SEA WAYBILL may be used.

Issue D/O

When the shipping company confirms the payment, they will issue D/O.

D/O is an abbreviation for Delivery Order which is a document issued by the shipping company to the CY or CFS operator. It is a necessary document when you pick up cargo in bonded area of CY or CFS.

Import Permit, Delivery

The forwarder will receive the import permit from customs and pass D/O to the shipping company.

The shipping company will then pick up the cargo in the bonded area and deliver it to the destination specified by the importer.

The above is the process of picking up cargo using Arrival Notice. It is not difficult as long as you understand what you need to keep in mind.

Summary

Finally, I would like to conclude this explanation by reviewing the three roles of Arrival Notice and the point to be noted.

-Role
1. Billing statements from shipping companies
2. Notification of arrival schedule and delivery destination
3. Confirmation of free time

-Point to be noted
– Who responsible for payment of ocean freight

How was it? In this video, I introduced the role of Arrival Notice and the process of cargo release.

Arrival Notice is an important document issued by the shipping company on the import side. When you receive it, make sure to process it as soon as possible.

If this video is helpful to you, please subscribe to my channel and give it a thumbs up.

I’ll see you in the next video! Thank you very much!

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