How to Ship Bulk Cargo by Sea: From Cargo to Delivery
Moving a bulk cargo by sea involves more than finding a ship. This guide follows the cargo from the warehouse or the mine to the discharging port.
Prepare the cargo and the paperwork
Know the exact quantity and the quality of the cargo, and arrange for an independent inspection if the contract asks for it. Prepare the documents the buyer and the authorities need: the commercial invoice, the packing or weight list, the certificate of origin, and for food cargoes a phytosanitary or health certificate. Many countries also ask for a fumigation certificate for grain and other agricultural cargo.
Find and charter the ship
Choose the ship type and the size for your cargo and ports, and charter the ship. Agree the laycan, the loading and discharging rates, the terms for delay and who pays for what. For grain and fertilizer, check the cleanliness requirements of the holds.
Hold inspection
Before loading, the holds are cleaned and inspected. A surveyor checks that the holds are clean, dry and free of smell and residues from the previous cargo. If the hold fails the inspection the ship has to clean again, and this can cost time. This is an important step for food and feed cargoes.
Loading
When the ship is ready it gives the notice of readiness, and the laytime starts to count. The cargo is loaded by shore conveyors, grabs, hoppers or the ship cranes. A draft survey measures the weight loaded by looking at how deep the ship sits in the water. The surveyor and the master compare the figures with the cargo documents. Weather can stop loading, especially for cargoes that must stay dry.
Bill of lading and documents
The master signs the bill of lading. It is the receipt for the cargo, the evidence of the contract of carriage and the document that gives the right to take the cargo at the destination. The details must match the cargo that was loaded. The documents are sent to the buyer or the bank, in line with the sales contract and the payment method, for example a letter of credit.
The voyage and discharge
During the voyage the ship follows the agreed route, and the charterer can follow the position. At the discharging port the ship gives the notice of readiness again, and the cargo is discharged and weighed. Any shortage or damage is checked against the documents. After discharge the freight and any delay payments are settled under the demurrage and despatch terms.
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