What is a Shipping Mark and What are its Requirements and Functions?

 

What is a Shipping Mark and What are its Requirements and Functions?

In international trade and logistics, we often hear the term "shipping mark." Let's explore what a shipping mark is and its significance in the shipping process.


Definition of Shipping Mark

A shipping mark, also known as a "mark," is a transportation packaging mark used in international trade to identify cargo and prevent shipment errors. It typically includes model numbers, graphics, or abbreviations of the consignee’s name.

Components of Shipping Mark

Shipping marks are divided into two parts: the main mark and the side mark.

  • Main Mark (front mark): This usually includes the customer’s name abbreviation or symbol, order number, destination port, package number and total quantity, and production batch number.
  • Side Mark (side mark): This includes details like item name, quantity, gross weight, and outer box dimensions.

Functions of Shipping Marks

At the Port of Shipment

  • Customs and Documentation: When providing customs declaration documents and confirming the bill of lading, it is essential to ensure that the shipping mark on the documents matches the actual shipping mark on the cargo. Any discrepancies may lead to reduced customs inspection efficiency and could affect the normal shipment of goods.

At the Destination Port

  • Cargo Sorting: The destination port agents use the shipping marks on the final bill of lading to sort and distribute the cargo. If the marks on the documents do not match the actual cargo, it could delay the distribution to the correct consignees, affecting the delivery time for customers who have applied for HDS (House Delivery Service).

Importance of Shipping Marks for Different Stakeholders

  1. For Consignees:

    • Shipping marks contain product-related information, making it easier to identify the contents without opening the box. This facilitates quick entry into the distribution process. Consignees typically refer to the side mark.
  2. For Shippers:

    • Shipping marks aid in managing, counting, and calculating cargo. They help in arranging transportation and prevent shipment mix-ups or errors.
  3. For Carriers:

    • Shipping marks assist in checking and verifying cargo from warehouse entry to shipping, transit, and multimodal transport until reaching the destination port. They are especially important for consolidating less-than-container load (LCL) shipments.
  4. For Customs and Inspection Authorities:

    • Shipping marks help in supervising and inspecting import and export cargoes, facilitating batch inspections and clearances.

Use of "N/M" in Place of Shipping Marks

Sometimes "N/M" is used in place of a shipping mark. "N/M" stands for "No Marks," "None of Marks," "Not Mentioned," or "Neutral Marks." The commonly accepted spelling is "No Marks," indicating the absence of a shipping mark. However, the specific usage can vary based on company practices and customer agreements.

Impact of Incorrect Shipping Marks

  1. Customs Clearance Delays:

    • Incorrect shipping marks can complicate cargo information verification, prolonging customs clearance times and potentially leading to penalties.
  2. Transportation Confusion:

    • Errors in shipping marks can cause cargo to be misrouted to the wrong destination or consignee.
  3. Economic Losses:

    • Delays, misdelivery, or loss of cargo due to incorrect shipping marks can result in financial losses and damage to the company’s reputation.
  4. Legal Liability:

    • In extreme cases, incorrect shipping marks might involve fraudulent activities, such as backdating bills of lading, leading to legal consequences and severe negative impacts on the company.

Conclusion

The accuracy of shipping marks is crucial for the smooth execution of international trade. Companies must recognize the importance of shipping marks and adhere strictly to international trade and transportation standards and norms when creating them. Ensuring the accuracy and clarity of shipping mark information can help avoid various problems caused by errors. Additionally, companies should maintain effective communication with freight forwarders, carriers, and customs authorities to ensure the consistency and correctness of shipping marks, ensuring the safe and timely arrival of goods at their destination.