Shipping Guide

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Shipping and Incoterms
Practice Guide

UNDP Practice SerieS

Shipping and Incoterms
Practice Guide

Graphic Design, Layout and Print Production: Phoenix Design Aid A/S, Denmark. ISO 9001/ISO 14001/OHSAS 18001 certified. Printed on: This publication is printed on certified environmentally approved paper with vegetable-based inks. The printed matter is recyclable.

introduction 1 Shipping 1 2

Section 1 of these guidelines is intended for persons dealing with purchasing and shipping, but it is recommended that persons at the receiving end also read it to be more familiar with how shipping operates, its terminology and documentation.

Chapter 1: Importance of Transportation and Summary Chapter 2: Methods of Dispatch Chapter 3: Selection of Method of Dispatch Chapter 4: Packing – Markings – Addresses Chapter 5: Parties Involved in the Chain of Transport Events Chapter 6: Shipping Documents Chapter 7: Forwarding Arrangements Chapter 8: Shipping Instructions Chapter 9: Distribution of Shipping Documentation Chapter 10: Insurance Coverage Chapter 11: Insurance Claim

2 2 7 8 10 11 14 15 16 18 21

2 receiving


Section 2 will explain the steps to be taken for the withdrawal of supplies upon their arrival, and especially what to do when the consignment is not in good order.

Chapter 1: Retrieval Chapter 2: Receipt and Inspection Chapter 3: Reporting and Claims Chapter 4: Feedback and Cooperation Chapter 5 Examples of Claim Letters

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3 terms and glossary
Section 3 introduces Incoterms, UNCITRAL and contains a glossary of the most common terms used in the shipping world.

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Chapter 1: Incoterms Chapter 2: Uncitral Chapter 3: Glossary UNDP Practice Series, Shipping and Incoterms, November 2008 This Practice Guide is protected by international copyright laws. The prior written consent of UNDP Procurement Support Office is required for the reproduction (in any form) of the whole or any part of this Guide. For further information please contact: UNDP Procurement Support Office (PSO), Bureau of Management. E-mail: Website:

ShiPPing and incOterMS / Practice guide


This practice guide is designed for those working in UNDP who are interested in gaining an overview of appropriate shipping arrangements, documentation and Incoterms. Additionally, those working in functions that include close interaction with the procurement or logistics function, such as programme staff who would like a closer understanding of shipping activities, would find this practice guide relevant. Among the topics covered are the principles of effective shipping arrangements, methods of mitigating risks and an overview of the options available for optimizing the organization’s logistical activities and the capability to plan, implement and evaluate a transportation exercise appropriate to the value/risk of the goods being transported.

About this Guide
This guide offers an overview of the different modes of shipment available to determine the appropriate logistical arrangements for a range of requirements; • Gives an introduction of a broad understanding of the need for insurance and the types of coverage available; • Explains the pros and cons of different Incoterms and the appropriate use of Incoterms; • Discusses loss prevention, means and actions to put in place to minimize or prevent loss and effective packing and marking; • Describes customs procedures; • Discusses the choice of appropriate shipping methods depending on various factors, including, cost, frequency / regularity, reliability and speed required; and • Explains the functions of shipping documents, including Air Waybill (AWB) and Bill of Lading (B/L).

ShiPPing and incOterMS // Prac tice guide ShiPPing and incOterMS Practice



In Short….
Purchasing and shipping are “service units” whose efforts must be...
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