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Elements and Performance Criteria

  1. Examine an international freight forwarding sales contract
  2. Examine an international freight forwarding service contract
  3. Manage risk in international freight forwarding
  4. Assist in organising insurance requirements for international freight forwarding
  5. Manage legal liability in an international freight forwarding project

Required Skills

REQUIRED KNOWLEDGE AND SKILLS

This describes the essential knowledge and skills and their level required for this unit

Required knowledge

Legal principles and liabilities in international freight transport

Relevant security safety and environmental procedures regulations and conventions including those applicable to the importing exporting and transiting of goods

Procedures and protocols for the provision of international freight forwarding services including those applicable to the importing exporting and transiting of goods

Ways of managing legal liability in international freight transport

Basic principles that govern the discipline of law

Law of Contracts as it applies to international freight transport

Definitions purpose and use of Incoterms and Combiterms

Processes for ensuring compliance with legal requirements

Conventions in international freight transport

Standard trading conditions in international freight transport

Principles of risk management as it applies to international freight forwarding

Ways of managing risk in international freight transport

Ways of managing contingencies in international freight transport including consideration of alternative transport options and anticipation of the unexpected

General elements and principles of insurance policy in international freight transport

Procedures and policies for organising and managing insurance requirements for various types of international freight forwarding projects

Types of liability insurance their purpose and processes for their organisation including an understanding of the liability of different parties involved in international freight transport

Types of transport insurance coverage their purpose and processes and documentation for their organisation

The use of the general average in insurance policy and practice

Duties of the freight forwarder in the event of damage to goods in transit

Processes for making insurance claims

Sources of information and documentation needed when providing freight forwarding services

Principles and techniques of closedloop communication in which checks are made to confirm that messages and responses being given or received are unambiguous and are correctly and clearly understood

Typical problems that can occur when organising transport or liability insurance and related appropriate action that can be taken to prevent or resolve them

Understanding of the principles of quality assurance and customer service standards policies and procedures as they apply in the international freight forwarding industry

Required skills

Communicate effectively with others when reviewing international freight forwarding contracts insurance risk and legal liability including unambiguous closedloop communication in which checks are made to confirm that messages and responses are correctly and clearly understood particularly in situations where communication is with a person for whom English is not the native language

Read and interpret instructions procedures and other information relevant to sales contracts insurance risk and legal liability

Interpret and follow operational instructions and prioritise work

Complete documentation related to contracts insurance risk and legal liability including data entry to a computer system

Operate information and communication technology to required protocol

Work collaboratively with others when reviewing international freight forwarding contracts insurance risk and legal liability

Adapt appropriately to cultural differences in the workplace including modes of behaviour and interactions with others

Promptly report andor rectify any identified problems that may arise when reviewing international freight forwarding contracts insurance risk and legal liability in accordance with regulatory requirements and workplace procedures

Implement contingency plans for unanticipated situations that may occur when reviewing international freight forwarding contracts insurance risk and legal liability

Monitor work activities in terms of planned schedule

Apply relevant codes of practice and legislative requirements

Modify activities depending on differing operational contingencies risk situations and environments

Work systematically with required attention to detail without injury to self or others or damage to goods or equipment

Operate and adapt to differences in equipment in accordance with standard operating procedures

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required knowledge and skills the range statement and the assessment guidelines for this Training Package

Critical aspects for assessment and evidence required to demonstrate competency in this unit

The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of

examining an international freight forwarding sales contract

examining an international freight forwarding service contract

managing risk in an international freight forwarding project

assisting in organising transport insurance requirements

confirming or organising liability insurance requirements

making a claim on a transport or liability insurance policy

Context of and specific resources for assessment

Performance is demonstrated consistently over a period of time and in a suitable range of contexts

Resources for assessment include

a range of relevant exercises case studies andor other simulated practical and knowledge assessment andor

access to an appropriate range of relevant operational situations in the workplace

In both real and simulated environments access is required to

relevant and appropriate materials and equipment and

applicable documentation including workplace procedures regulations codes of practice and operation manuals

Method of assessment

Assessment of this unit must be undertaken by a registered training organisation

As a minimum assessment of knowledge must be conducted through appropriate writtenoral tests

Practical assessment must occur

through activities in an appropriately simulated environment at the registered training organisation andor

in an appropriate range of situations in the workplace


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance.

International freight forwarding includes services related to:

the importing of goods

the exporting of goods

the transiting of goods

Provisions and stipulations that should be in a sales contract include:

detailed description of the goods

precise quantity of the goods and tolerances where appropriate

exact price of the goods

final date for shipment with schedules for continuing contracts

the seller's delivery point

transport mode

discharge port, airport or transport terminal and the final destination

the correct Incoterm for the transaction

special packaging, load restraint and stowing requirements for the cargo

documents required and responsibility for their preparation and provision

Force Majeure clause

arbitration clause

law and jurisdiction clause

payment terms

buyer requires pre-shipment inspection of the cargo by surveyors

Supporting documents to a service contract may include but are not limited to:

Shipper's Letter of Instruction (SLI)

invoice

insurance certificate

regulatory requirements (including permit issuing requirements) in both importing and exporting countries

Risks that may occur during international freight forwarding activities include but are not limited to:

damage to the cargo

transport accident

breaches of security

theft and fraud

terrorism

revolution

war

political instability

strikes

lockouts

work slowdowns

natural disasters

climate

port congestion

overbooked carrier

Ways of controlling risks that may occur during an international freight forwarding project include but are not limited to:

keeping up to date with geopolitical and industrial developments

ensuring there are no regulatory restrictions or prohibitions on the export, import or transit of the cargo

monitoring weather conditions

being aware of the impact of impending or current natural disasters on freight transport routes

making provision for suitable alternative routes

ensuring packaging, packing and stowage is appropriate for the mode(s) of transport

ensuring that security arrangements are adequate

ensuring that insurance cover is sufficient for the risks involved

Types of cargo insurance policies may include:

single shipment policy

annual policy

open policy

Sources of information required to perform international freight forwarding functions may include:

websites of key international and Australian organisations such as FIATA, IMO, ICAO, IATA, CASA, AMSA, Australian Customs and Border Protection Service, AQIS, government agencies responsible for transport security etc.

key reference publications such as Incoterms, FIATA forms and documents, ICC publications, and other manuals, texts and handbooks on freight forwarding, international trade and related topics etc.

Parameters of freight forwarding services relevant to customer requirements may include:

standard procedures for the international forwarding of freight

type of transport modes

various consignment methods

relevant legislative requirements

required import/export documentation and requirements

transport security requirements

insurance requirements

service costs

payment requirements and procedures

fiduciary and legal responsibilities of either party

Consultative processes may involve:

customers

international and domestic agents and suppliers,

insurance brokers

representatives of insurance companies

relevant regulatory authorities and institutions

other employees and supervisors

management

freight forwarding specialists

other professional or technical staff

Depending on the type of organisation concerned and the local terminology used, workplace procedures may include:

company procedures

enterprise procedures

organisational procedures

established procedures

Communications systems may involve:

face-to-face conversation

telephone including fixed, mobile and IP phones

fax

email

electronic data transfer of information (EDI)

mail

Information/documents may include but are not limited to:

Australian and international regulations, conventions and codes of practice for the international forwarding of freight

summaries and definitions of Incoterms and Combiterms

customers' instructions and transport requirements

workplace standard operating procedures and policies

sales contracts

standard FIATA forms and documentation such as:

a Negotiable Multimodal Transport Bill of Lading (FB/L)

a Non-negotiable Multimodal Transport Waybill (FWB)

a Forwarders Certificate of Receipt (FCR)

a Forwarders Certificate of Transport (FCT)

a Forwarders Warehouse Receipt (FWR)

a Forwarders Forwarding Instructions (FFI)

a Shippers Declaration for the Transport of Dangerous Goods (SDT)

a Shippers Intermodal Weight Certification (SIWC)

an Original Bill of Lading (OB/L)

a Master Air Waybill (MAWB)

a House Bill of Lading (HBL)

a House Air Waybill (HAWB)

Multimodal Transport Bill of Lading (MTB/L)

insurance policies

insurance certificates

insurance claim forms

cargo manifests

pre-advice and pre-alert documents

suppliers advice for the handling, transport and storage of goods and materials

operations manuals, job specifications and procedures and induction documentation

freight forwarding competency standards and training materials

Australian and international standards, criteria and certification requirements

data obtained through communications technology equipment and oral, aural or signed communications

freight forwarder company's quality assurance standards and procedures

emergency procedures

Applicable regulations and legislation may include:

Australian and international regulations, conventions and codes of practice for the international forwarding of freight

relevant regulations for the import and export of cargo

Australian and international standards and certification requirements

relevant regulations pertaining to international trading and financial transactions

relevant Australian and international transport security and safety legislation

relevant Australian and international environmental protection legislation