LTL Shipping and Payment for Merchandise.

Many times cargo is shipped on a letter of credit...

Freight carriers are experts in handling special LTL shipping needs. These shipments may be strictly domestic moves, or they could be an export shipment which has been shipped by another mode to the United States. Many times cargo is shipped on a letter of credit. Very often the shipments arrive in port close to the latest day for shipment. Shipments have to be delivered so those customers do not have discrepancies on their letters of credit. A letter of credit is a document which has been issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank or an agency in which the bank has made arrangements.
 
A letter of credit provides detailed instructions as to the handling of the shipment. The letter informs the exporter which port the LTL freight can be delivered, the port of discharge, mode of transport, and all required documents. All of these instructions must be carefully followed. Letters of credit may also require other documentations such as an ocean bill of lading or LTL shipping bill of lading, commercial invoices, packing lists, and drafts. The required documentation will vary depending on the country of destination, as will the terms of the letter.

After the proper documentation has been prepared, the cargo is shipped. The exporter presents the required documents for the U.S. bank and the overseas bank to complete the processing of the documentation. Once this has been accomplished, then the exporter can receive payment for the cargo. Once the consignee receives the documents from the overseas bank, then they can finalize the customs clearance and receive the cargo.



 

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