Valenciaport Foundation

  • Initiative 6.1: Electronic procedures related to container consolidated cargoes at Valenciaport

    • Pilot action proposed:

     Procedures related to container consolidated cargoes

    • Stakeholders involved:

    Port Authority of Valencia
    Non-vessel operating common carriers (NVOCCs)

    • Subject matter: What?  

    The action is aimed at creating a procedure to manage maritime departures for container goods consolidation covered by different Customs documents.
    The objective is to cover by means a consolidation message of container goods the lack of information in Customs documents prior to their consolidation (mainly the number of container in box 31 of the SAD) which hampers the right processing of these departures by electronic systems. In this way, the NVOCC would be able associate a particular container to the loaded SADs in the container.
    This would continue with the development of the goods exit procedures through the implementation of automatic paperless export clearance system to include the container in the messages of traceability between the Customs and ports.

    • Purpose: Why?  

    The consolidation of cargo is normally carried out by freight forwarders operators or specialists in this field that offer neutral services to all freight forwarders denominated non-vessel operating common carriers (NVOCCs). The NVOCC acts as an ocean carrier where the container is the means of transport instead of the vessel.
    The NVOCC offers their services to freight forwarders in a similar way as an ocean carrier does. The NVOCC uses its warehouse premises to consolidate the cargo from different customers.  Apart from the logistic operation of stuffing goods in the warehouse other processes related to Customs/inspection may be performed.  The warehouse must be compliant with Customs restrictions in terms of security and processes are also audited. For that reason many NOVCCs are AEOs as this way the number of physical inspections is reduced. However, this can cause problems in terms of security and processes guarantees.
    A lack of standardisation of the electronic procedures in this sector has been detected. Moreover, tracing shipments is more complicated and difficult due to the non existence of a container number. It has also been realized that further promotion of the possibilities to send LCL (Less Container Load) shipments via maritime is needed as there is a gap of knowledge and more regulated education in the sector can further promote the development of the intra-European consolidation business.
    The benefits to be obtained from this initiative are the contribution to consolidated traffic growth by acting on several points: enhancing the publication of their offer of regular services, automating documentation processes and administrative procedures to reduce costs and time and increasing reliability of service by providing higher traceability. 

    • Location: Where?  

    Port of Valencia

    • Sequence: When?  

    Prototyping: 2013
    Piloting: 2013-2014

    • People: Who?  

    Port Authority of Valencia
    Non-vessel operating common carriers (NVOCCs)

    • Method: How?

    The method is based on relate the loaded SADs and its associated consignments with a specific container number by an electronic document.
    The proposed solution includes the following functionalities:
    - A module for submission of consolidation warehouse working orders via EDI. The communication and integration with the consolidation warehouse plays an important role to organise and improve the overall process. The smooth integration of the working orders allows the linkage between “consignments and container”. The multiple LCL bookings will be automatically linked inside a single container, which will be associated to the FCL Booking.
    - Introduction of track & trace capabilities for consolidated cargo: The track & trace of the shipment will be managed taking into account consolidation/deconsolidation operations in an intermediary warehouse. The goal of this pilot will be to achieve a complete trace of the unique consignment across the supply chain. The unique identification of the consignment, the use of multiple references, and the consolidation/deconsolidation in different containers are some of the challenges that will be faced in this pilot. The track & trace information will be delivered by the PCS as the result of the previous message interchanges.
    - Customs Automation: Customs procedures in consolidated cargo represent a high volume of administrative tasks for the NVOCC. Different aspects should be analysed to present an option that allows the automation of the process. Import, export or transit operations require to follow different processes and documentation where the origin of the goods, the value and the AEO distinction are factors that should be taken into consideration. The automation and integration with Port Community System will contribute to speed up the process and reduce these administrative tasks.

    • Cost: How much?  

    In evaluation