How do imported
goods reach stores in your neighborhood? Follow the international supply
chain from start to finish.
The factory
manufactures products for the importer/shipper in a timely manner
and to the specifications outlined in a 
letter
of credit and/or purchase order.
The factory may make bookings directly with steamship operators
and handle coordination of in-country transportation including local
trucking/rail or may be responsible for working directly with a local
freight forwarder regarding documentation and coordination of in-country
transportation.
The freight forwarder
is responsible for assembling the document packet, which includes paperwork
coming from the 
importer/shipper
or the factory. These documents include the invoice,
packing list and specialty documents
like visas. These documents are forwarded to various parties,
including, local customs authorities, local bnks, the importer/shipper
and/or the importer's customs broker. The forwarder is often
also responsible for booking in-country transportation as well
as ocean carriage from steamship operators, and may arrange to
have empty containers dispatched from the steamship operator to
the factory. Freight forwarders also prepare an original
bill of lading (OBL), which is sent to the steamship operator
to issue. If a consolidation is involved, there are two OBLs,
the one issued by the consolidator (called the Non-Vessel Operating Common
Carrier [NVOCC] in the U.S) does not contain as much information
as either the purchase order or letter
of credit. Importers/shippers often do not want a full
description of cargo, because of possible theft of high-value items or
industrial secrets; also, OBLs are written to conform to 
steamship
operators' tariff descriptions, which can be vague. In some cases,
products move from factories to a warehouse where they are consolidated.
A consolidator receives freight and handles bookings with local
and ocean transportation providers and is responsible for producing the
document packet and its own OBL. NVOCCs
operate as consolidators and so ship cargo under their own rate structure
negotiated with steamship operators. They prepare master and house
bills of lading. The master
bill
of lading is sent to the steamship operator for issuance, while
the house bill
of lading is issued directly to the shipper/importer.
NVOCCs information on a master bill of lading
does not provide the name of the importer/shipper, because by law,
the NVOCC acts as the shipper in this context.
Steamship operators
are responsible for vessel availability, and either provide or contract
with terminal operators to provide landside operations at origin
and destination ports. Steamship Operators use OBL
information from local 
freight
forwarders, consolidators, or NVOCCs to produce ship
manifests which are then filed with
the U.S. Customs Service. Customs brokers are the importer/shipper's
agent and assemble documentation from many sources plus interface with
Customs and other federal agencies such as Agriculture, FDA, CPSC,
Fish and Wildlife. The broker will file the
import entry and arrange for the payment of duties. Brokers
may also direct and arrange for local truck and rail transportation,
if the importer/shipper so desires. Brokers receive information
from the steamship operator, Customs and the terminal operator
regarding the clearance of cargo and its availability for pickup.
The U.S. Customs
Service is responsible for enforcement and collection of duties. Customs
uses risk assessment techniques to decide whether containers will be held
for inspection or released. Currently, Customs uses a 20-year old
computer system that is clearly antiquated. A new system that will greatly
enhance Customs' ability to assess risks is currently being built, but
will take several more years to complete. Customs receives electronic
manifest information from ocean carriers using its current
system. Customs also receives import
entries, many of them in electronic form from importers
or their customs brokers. Import entries
include a great deal more information than ship
manifests. While many import entries
are filed completely electronically, some are not, especially those involving
unique shipments. Customs will match manifests with entries. In
many cases, shipments are pre-cleared
by Customs prior to arrival. Customs communicates with brokers,
terminals operators and steamship operators as to whether cargo
is released, or held for inspection.
Some U.S. ports
are administered by local government authorities and others are private.
The port authorities are not responsible for providing shore-side
operations. They are much more like landlords that provide land for a
wide variety of activities, including cargo loading and unloading. Shoreside
facilities are provided by either the steamship operator or through
contractual arrangements with terminal operators. In turn, terminal
operators collectively bargain with longshore unions to provide
labor to unload ships, move containers to on-dock rail facilities or onto
wheeled truck chassis that are picked up by local truckers. Waterfront
employers do not directly hire their longshore labor. The workforce
is dispatched by union halls and a single union will provide day labor
to multiple employers in a given port.
Rail
Lines, trucking companies, and third party logistics providers
are responsible for interface with customs brokers, steamship
operators, warehouse facilities or de-consolidators,
and also interface with local trucking companies for local distribution.
They handle the transportation of cargo from the port to warehouses and,
ultimately to the factories, warehouses and stores across the nation
that are operated by importers/shippers.
