Difference between bulk and break bulk cargo

-          Difference between Bulk and Break Bulk cargo

Break Bulk Cargo is cargo that is unitized and is loaded individually. Please note that the break bulk cargo is packaged (bags, boxes, barrels etc.) but is not containerized. This was the most common cargo type to be transported until the introduction of container shipping.

Bulk cargo is loose cargo such as grain, iron ore. Bulk Cargo is not unitized is unpackaged and is not containerized. Bulk cargo is transported in cargo holds via bulk carriers.

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API integration in Logistics

Are you a shipper that is constantly juggling multiple programs to fulfil an order? From label generation to booking a pickup. Or perhaps your orders get lost due to not having proper address validation? The solution is to integrate via API, with your favourite logistics provider.

API integration in Logistics is bringing carriers functionality to an enterprise application or a website. A business can greatly benefit from integrating. A great level of efficiency is achieved through synchronization and connectivity between a shipper and a carrier. Let’s take a look at a few examples below:

Website address validation API

Address validation API allows a merchant to integrate address validation functionality, of a carrier, into a web or non-web based platform. When a buyer places an order and enters a delivery address, that address will be compared to the available addresses on a carrier’s database. In an instance where a miss-match is found, the API will return alternatives and possible entries. This is a great little way to make sure information added by your customer is correct and eliminates a possibility of a miss-delivery due to an incorrect address. Please note not all carriers provide this API, those who do: not all have address validation on a street level. Most validate on State to postcode level.

Shipping API

This API may differ from carrier to carrier. Shipping API usually provides you with functions of label generation, forecasting of data and booking of a pickup. This is a great way to eliminate double entry and improve efficiency.

Tracking

Allows a merchant or a buyer to track a shipment using a tracking reference number from a merchant’s website.

Rates

As the name suggests, this API can be integrated to give you a rate on a particular shipment without the need of contacting the carrier or going onto the carrier’s website.

Conclusion

There are many APIs to choose from, each one is used to streamline processes related to shipping. Shippers small or big should find an API that they could benefit from. So contact your logistics provider for the API docs and get your business on the first step towards efficiency. 

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Letter of Credit LOC - commercial letter of credit

A "commercial letter" of credit is a payment mechanism that is used to eliminate risks in the international trade. Please note the emphasis on the payment mechanism.  A letter of credit guarantees the supplier of goods that he will receive a payment in exchange for documents specified on a letter of credit.  It is a handy tool when taking into account the uncertainty of the international trade such as: different laws, distance, no personal knowledge of the parties involved. A letter of credit also protects the buyer, making sure the seller won’t receive his or her payment until the goods are shipped.

To better understand this complex process we have created a visual map below:

We will assume a few things, the paying bank is the advising bank and Incoterms are FOB

Now each step in detail:

1.)    A sales contract is concluded between a buyer and a seller. A sale contract can be a Performa Invoice, a formal agreement , purchase order.

2.) The buyer applies for a letter of credit

3.) The buyer's bank reviews the application, and requests the buyer to make a deposit.

4.) The buyer's bank forwards the LOC to the seller's bank(advising bank).

5.) Seller's bank reviews the LOC

6.) The seller's bank provides LOC to the shipper(seller)

7.) The seller reviews the LOC, if there are no objections, the goods are tendered to a carrier.

Now at this stage the goods might also need to be inspected if mentioned on a LOC.

8.)Upon receipt, a carrier issues a Bill of landing(BOL) to a shipper.

9.)The seller passes the documents to the seller's bank.

10.) Seller's bank reviews the documents, if everything is ok, releases the funds(in this example, the advising bank is the paying bank)

11.)The advising bank recuperate the costs from the issuing bank and submits the shipping documents to the buyers bank.

12.)The issuing bank forwards the documents to the buyer, so he can take possession of his goods.


Few things to note:

• A stand by LOC = something went wrong, A stand by LOC will be used to recuperate the costs by the seller.

• A commercial LOC = a primary method of payment

• LOC is not part of the sales agreement, it is a separate document issued by a bank.

• Beneficiary - the seller or ultimate recipient of funds

• Bank as an official figure can guarantee a payment. Seller would more likely to trust an official figure to issue a letter of credit.

• Usually used for transactions of $20,000 or over.

   

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