0% found this document useful (0 votes)
16 views43 pages

LSM240036 SELVA Intern Report

The document is a summer internship report by Selvamuthu A, submitted to Bharathidasan University for an MBA in Logistics and Supply Chain Management. It details the internship experience at St. John Freight Systems, focusing on clearance, forwarding, import/export documentation, and NVOCC services, highlighting the learning outcomes and practical skills gained. The report includes an overview of the logistics industry, company profile, services offered, and key processes involved in international shipping.

Uploaded by

selvamuthu20200
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
16 views43 pages

LSM240036 SELVA Intern Report

The document is a summer internship report by Selvamuthu A, submitted to Bharathidasan University for an MBA in Logistics and Supply Chain Management. It details the internship experience at St. John Freight Systems, focusing on clearance, forwarding, import/export documentation, and NVOCC services, highlighting the learning outcomes and practical skills gained. The report includes an overview of the logistics industry, company profile, services offered, and key processes involved in international shipping.

Uploaded by

selvamuthu20200
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SUMMER INTERNSHIP ON CLEARANCE AND FORWARDING, IMPORT

AND EXPORT DOCUMENTATION AND NVOCC SERVICES AT ST. JOHN


FREIGHT SYSTEM, TUTICORIN

Summer Internship Report Submitted to Bharathidasan


University
In partial fulfillment of the requirements

For the Award of the degree of

Master of Business Administration


In LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Submitted
by
SELVAMUTHU A
(LSM24MBA0036)

BHARATHIDASAN SCHOOL OF MANAGEMENT


BHARATHIDASAN UNIVERSITY
TIRUCHIRAPPALLI - 620 024
JULY 2025
BHARATHIDASAN SCHOOL OF MANAGEMENT
BHARATHIDASAN UNIVERSITY
TIRUCHIRAPPALLI - 620024

Dr. M. BABU

Director i/c

CERTIFICATE

This is to certify that Mr. SELVAMUTHU A (LSM24MBA0036), first year MBA


(2024– 2025), is a Bonafide student of this Department and this Internship Report
entitled “SUMMER INTERNSHIP ON CLEARANCE AND FORWARDING,
IMPORT AND EXPORT DOCUMENTATION AND NVOCC SERVICES AT
ST. JOHN FREIGHT SYSTEM, TUTICORIN.” has been prepared by him for MBA
Degree Examination during the year 2024- 2025.

Place: Tiruchirappalli Signature of the Director

Date:

External Examiner
Mr. SELVAMUTHY A

LSM24MBA0036

DECLARATION

I hereby declare that the work contained in this Summer Internship programme

is original and has been done by myself under the general supervision of my Industry

in writing the report for the Master of Business Administration (MBA) Specialization

in Logistics and Supply Chain Management Degree Examination of Bharathidasan

University.

Place: Tiruchirappalli Signature of the Candidate

Date: (SELVAMUTHU A)
ACKNOWLEDGEMENT

I would like to sincerely thank and owe my gratitude to our Director i/c Dr.
M. BABU for giving me an opportunity to do this Internship project for our internal
evaluation.

However, my most sincere thanks to Mr. Thomas G., Group Head-HR, (St.
John Freight Systems Limited) and my regards to all the employees of the Import
Documentation Department who provided me with all the information throughout the
internship training.

I want to thank those people whom whenever I asked for the help they have
given me their valuable time.

I also thank my friend to assist me by providing the ideas, documents and


possible guidelines for completing this report in full fledge. So it is worthwhile to show
my gratitude to them for their unconditional assistance.
EXECUTIVE SUMMARY

This report outlines the experiences and learning outcomes gained during
my internship at St. John Freight Systems Ltd., a leading logistics and freight
forwarding company. The internship provided me with valuable exposure to real-
time logistics operations, supply chain procedures, and international shipping
practices.

During the training, I developed a solid understanding of core areas such as


export and import procedures, freight forwarding, customs documentation,
CFS/ICD operations, and the role of NVOCCs in global trade. I also had the
opportunity to work with logistics professionals and observe how coordination
between departments ensures efficient cargo movement and regulatory compliance.

The internship helped bridge the gap between academic knowledge and
industry practice. It enhanced my practical skills, improved my familiarity with
shipping documents, and deepened my understanding of end-to-end logistics
management. This experience has laid a strong foundation for my future career in
the logistics and supply chain domain.
S.NO. CONTENT PAGE

NO.
Chapter – I
1.1 Introduction 1
1.2 Industrial profile 1
1.3 Company overview 1
1.4 Service offered by the company 4
1.5 Objectives of the report 5
Chapter - II
2.1 Organization chart - Tuticorin 6
2.2 Organization flow – sea Export of St. John freight system ltd. 7
2.3 Organization flow – sea Import of St. John freight system ltd. 8
Chapter – III
3.1 About sea freight 9 - 11
3.2 Customs clearance 11-13
3.3 NVOCC Operation 13 – 14
3.4 Key terminologies in freight forwarding 14 – 15
3.5 Incoterms 15 – 17
3.6 Letter of credit 17 – 18
3.7 CFS – Container freight station 18
3.8 ICD – Inland container Deport 19
3.9 Sample of Documents 19 – 24
Chapter - IV
4.1 SWOT Analysis 25 – 26
Chapter - V
5.1 Major learning outcomes 27
5.2 Real – time exposure at ICD and CFS 28
5.3 Conclusion 28
5.4 Workdone 29 - 33
5.5 Photos 33 - 35
CHAPTER – I

1.1 Introduction

This report is a reflection of the internship experience completed at St. John


Freight Systems Ltd., a leading logistics and freight forwarding company with a strong
presence in both domestic and international markets. The internship was carried out at
two strategic branches — Tuticorin and Coimbatore — from June 3 to July 12, as part
of the academic curriculum for the Master of Business Administration program.

St. John Freight System Ltd. is a comprehensive logistics solutions provider


specializing in freight forwarding, customs clearance, warehousing, transportation, and
project cargo handling. With its headquarters in Tuticorin (Thoothukudi), India, the
company has expanded its presence with offices and operations across major ports and
cities in India and abroad.

1.2 Industry Profile

The logistics and freight forwarding industry plays a critical role in global trade
by enabling the efficient movement of goods across borders. It includes services such
as transportation, warehousing, documentation, customs clearance, and supply chain
management. With globalization and the rapid expansion of international trade, the
industry has evolved from traditional shipping to complex multimodal logistics
solutions, driven by digital tools and global connectivity.

India, being one of the world's fastest-growing economies, has seen robust
growth in its logistics sector, supported by government initiatives like "Make in India"
and investments in infrastructure development. Companies like St. John Freight
Systems have contributed significantly by providing integrated logistics solutions and
maintaining high service standards.

1.3 Company Overview

St. John Freight Systems Ltd., founded in 1979 in Tuticorin, Tamil Nadu, has
grown into one of India’s leading third-party logistics (3PL) providers. With over 58
offices spanning 20+ countries and a workforce of more than 1,400 professionals, it
offers comprehensive logistics services including ocean and air freight forwarding,
customs broking, NVOCC operations, container yard management, CFS/ICD

1
operations, stevedoring, and feeder vessel services. The company operates a robust
network across major Indian ports and commercial centres like Chennai, Mumbai, and
Coimbatore, backed by overseas offices in key markets such as Singapore, the UAE,
and Germany.

In recent years, St. John has taken bold steps towards modernizing its operations
and enhancing sustainability. Highlights include the installation of a 172.5 kWp rooftop
solar power plant at the Tuticorin ICD—projected to generate over 198,000 kWh
annually, contributing significantly to ESG goals while reducing energy costs.

St. John has been recognized with prestigious industry awards, reflecting its
dedication to quality and innovation. And the company was honoured as “Customs
Broker of the Year – Tuticorin Region” at the 16th South East Cargo & Logistics
Awards, held on July 9, 2025, celebrating its outstanding service in customs brokerage.
These recent recognitions highlight St. John’s position as a forward-thinking and
reliable logistics partner.

The above image shows St. John Freight Systems Ltd. being awarded the
prestigious “Customs Broker of the Year – Tuticorin Region” at the 16th South East
Cargo & Logistics Awards 2025, held in Chennai on 9th July 2025. This award
highlights the company's excellence in customs clearance services and its strong
operational presence in the Tuticorin region. The recognition reflects the company's
commitment to compliance, service reliability, and efficiency in freight documentation
and customs procedures.

2
1.3.1 Vision of the Company

“To be a global leader in freight and logistics by delivering consistent value through
innovative and customer-focused solutions.”

1.3.2 Mission of the Company

• To provide reliable, cost-effective, and comprehensive freight and logistics


services.
• To build long-term relationships with clients by ensuring transparency,
accountability, and service excellence.
• To constantly innovate and adapt to changing global trade dynamics.

1.3.4 Company Logo

1.3.5 Presence in India


The Company established its first office at Tuticorin in 1989 and subsequently in
Chennai and in Kochin within a span of two years. In 1993, it opened its branch offices in 12
locations and by 2010 it expanded its footprint to additional 24 locations with 35 offices across
India. In 2012, it added few more offices in Jaipur, Ludhiana, Amritsar and Kanpur.

3
The main purpose for operating from various locations across India is to provide cost
effective, speedy and reliable services to the customers.

1.4 Services Offered by the Company

St. John Freight Systems provides a comprehensive range of logistics and freight
services, including:

➢ Freight Forwarding (Air & Ocean)


➢ Custom Broking (CHA)
➢ NVOCC (Non-Vessel Operating Common Carrier)
➢ Feeder Operations
➢ Container Freight Station (CFS)
➢ Inland Container Depot (ICD)
➢ Warehousing and Distribution
➢ Chartering and Vessel Agency
➢ Stevedoring and Terminal Operations
➢ Fumigation Services

4
1.5 Objectives of the Report

➢ To gain a comprehensive understanding of the import and export process.:


I aimed to learn the complete workflow of how goods are imported and
exported, including the procedures, regulations, and coordination involved in
international trade.
➢ To acquire knowledge about the documentation process involved in
logistics.: One of my goals was to understand the various types of documents
required for international shipping, such as the Bill of Lading, Commercial
Invoice, Packing List, and Shipping Instructions, and how they are prepared and
processed.
➢ To understand the customs clearance procedures and formalities.: I
intended to learn how customs clearance is carried out, the documentation
required, and the role of freight forwarders in ensuring compliance with customs
regulations.
➢ To explore the functions and responsibilities of NVOCC (Non-Vessel
Operating Common Carrier) services.: My objective was to understand how
NVOCCs operate, manage cargo space, and coordinate with shipping lines,
especially in cases where they do not own vessels.
➢ To gain real-time exposure to the functioning of Inland Container Depots
(ICD) and Container Freight Stations (CFS).:I wanted to observe and
understand how ICDs and CFSs operate in practice, including cargo movement,
storage, inspection, and container handling, especially within the operational
environment at Tuticorin.

5
CHAPTER 2

2.1 Organization Chart – Tuticorin

6
2.2 Organizational flow – Sea Export process at St. John freight System ltd.

Sales and Marketing


Custmoer/exporte(Exporter
department (Receive
enquiry to freight
booking & confirm container
forwarder)
space)

Customs Broker
Documentation (Prepare (File Shipping Bill with
Shipping Bill and Invoice and
customs portal)
Packing list etc)

Operation Department (Plan CFS Team(Cargo received,


container movement with inspected, stuffed into
CFS/ICD for stuffinf) container)

Customs officials at Transportation


CFS(Examination, approval, team(Container moved to
and LEO copy issuance) port terminal

Documentation
Port operation / Shipping
Department(Issues Bill of
line(Container gated in,
Lading and send it to the
loaded onto vessel)
customer)

7
2.3 Organizational flow – Sea Import process at St. John freight System ltd.

Sales & Customer Service


Documentation Department
Team
Consignee / Importer (Collects required
(Receives pre-alert / Arrival
documents – Bill of Lading,
Notice from overseas agent
Invoice, Packing List, etc.)
or shipping line)

Customs Department CFS Operations – Tuticorin


Customs Broker (CHA)
(Government) (Container arrives at CFS,
(Files Bill of Entry with moved for de-stuffing or
(Assessment of Duty,
Indian Customs through direct delivery)
Examination of cargo,
ICEGATE)
Clearance approval)

Survey Team & Yard


Accounts & Billing
Supervisors Transport Department
Department
(Physical inspection, tallying, (Coordinates final delivery
(Generates D.O., collects
container movement, to consignee location)
charges from importer)
damage check)

8
CHAPTER 3

WORKING PROCEDURE

3.1 About Sea Freight

Sea freight is the process of transporting goods by ship over oceans and seas. It
is one of the most common and cost-effective methods used for moving large amounts
of cargo, especially when time is not a critical factor. Sea freight is often used for heavy,
bulky, or large shipments, such as machinery, vehicles, building materials, or large
quantities of consumer goods. Since ships can carry a lot more than airplanes or trucks,
this method is ideal for international trade between countries that are far apart and have
access to seaports.

The sea freight process starts when the shipper arranges transport with a
shipping company or freight forwarder. Goods are packed into containers, large metal
boxes that protect the items during the long sea journey. These containers are then taken
to the port, where they are loaded onto cargo ships. Before leaving the country, the
shipment must go through export customs clearance. Once the ship reaches its
destination port, the cargo is unloaded and goes through import customs clearance.
After that, the goods are transported to the destination by truck or train.

Sea freight offers several benefits. It is much cheaper than air freight, especially
for large or heavy items. It also allows for the shipment of goods in bulk, making it
efficient for international businesses. However, it is slower than air transport, with
shipping times ranging from a few days to several weeks, depending on the distance
and route. Also, schedules can be affected by weather or port delays. Despite these
drawbacks, sea freight remains a vital part of global trade, moving millions of tons of
cargo around the world every day.

3.1.1 Sea Freight Export Process

➢ Customer Enquiry
➢ Quotation Provided (freight charges, shipping schedule, transit time)
➢ Shipment Confirmation by Customer
➢ Cargo Packing and Preparation by Shipper
➢ Documentation Preparation
➢ Container Booking with Shipping Line

9
➢ Container Stuffing and Pickup (shipper’s premises or CFS)
➢ Cargo moving to CFS
➢ Export Customs Clearance (documents submitted to customs authorities)
➢ Container Loading on Vessel & Departure
➢ Transit to Destination Port 12. Arrival at Destination Port
➢ Import Customs Clearance (documents submitted to customs authorities)
➢ Delivery to Consignee / Destination

3.1.2 Key documents involved in international Sea Freight Export Process

➢ Commercial invoice
➢ Packing list
➢ Shipping Bill / Bill of Export - Mandatory customs export declaration for all
exports.
➢ Bill of Lading (B/L) - Mandatory Sea cargo receipt from the carrier for all
exports
➢ House Bill of Lading (HBL) - Used when an NVOCC issues the B/L on behalf
of the carrier (common for exports).
➢ Material Safety Data Sheet – For DG goods declarations, material declarations
(BIS Electronics, FSSAI - Perishables, Fumigation - wood)
➢ OOC – Declares that all inspections are cleared, charges have been paid.
➢ Export General Manifest (EGM) - Cargo manifest filed by the shipping line
for all export containers/goods.
➢ EIR copy – Gate pass to permit the truck inside the port.

3.1.3 Sea Freight Import Process

➢ Customer Enquiry
➢ Quotation Provided (includes sea freight charges, transit time, and handling
fees)
➢ Shipment Confirmation by Importer
➢ Supplier Books Space with Shipping Line
➢ Shipping Documents Sent to Importer
➢ Export Customs Clearance (documents submitted, duties/taxes assessed)
➢ Arrival at Destination Port
➢ Import Customs Clearance (documents submitted, duties/taxes assessed)

10
➢ Payment of Customs Duties and Taxes
➢ Container Pickup from Port or CFS (Container Freight Station)
➢ Delivery to Importer’s Warehouse / Destination

3.1.4 Documents Required for Import

➢ Bill of Lading (B/L) - Mandatory Sea cargo receipt from the carrier (master or
house B/L) for all imports.
➢ Bill of Entry - Filed with customs for all imports (sea or air) – required for sea
import clearance.
➢ Import General Manifest (IGM) - Cargo manifest filed by the shipping line to
Indian Customs for all imported containers/goods.
➢ Material Safety Data Sheet – For DG goods declarations, material declarations
(BIS- Electronics, FSSAI – Perishables, Fumigation - wood)
➢ OOC – Declares that all inspections are cleared, charges have been paid.
➢ Delivery Order (DO) - Issued by the carrier to the consignee/CHA to release
imported

3.2 Customs Clearance

Customs clearance is the process that goods go through when they are imported
into or exported out of a country. Every country has its own rules about what can enter
or leave, and customs clearance ensures that shipments follow these rules. When goods
arrive at a border, either by air, sea, or land, they must be approved by the customs
authority of that country before they can move forward. This process involves checking
the cargo, reviewing important documents, and making sure that all necessary taxes and
duties (import/export fees) are paid. To complete customs clearance, the shipper or a
customs agent (also called a broker) must submit key paperwork. This usually includes
an invoice (showing what the goods are and how much they cost), a packing list, a bill
of lading or air waybill (transport document), and sometimes special certificates (like
for food, medicine, or electronics). Customs officials will review these documents to
confirm that the goods match the description and are allowed into the country. If
everything is correct and the required duties and taxes are paid, the goods are cleared
and can continue to their destination. If there are problems, like missing paperwork,
incorrect information, or banned items, the shipment may be delayed or even rejected.
Customs clearance is a very important part of international shipping. It helps protect a

11
country’s economy, people, and environment by controlling what comes in and goes
out. While it can seem complex, many companies use customs brokers to handle it
smoothly and ensure their goods arrive without trouble.

3.2.1 Customs Clearance Export Process

➢ Order Received & Shipment Prepared The seller (exporter) prepares the goods
and gets them ready for shipping.
➢ Booking with Freight Forwarder or Carrier The exporter arranges transport with
a shipping company or freight forwarder.
➢ Documentation Prepared Important export documents are created, including:
➢ Goods Moved to Port or Airport The packed goods are transported from the
warehouse to the port or airport.
➢ Customs Declaration Filed The exporter or customs broker submits an
electronic customs declaration to the export customs authority, along with the
documents.
➢ Customs Review & Inspection (if required) Customs officers review the
declaration. Sometimes, they may inspect the cargo to verify contents.
➢ Payment of Duties or Fees (if applicable) For some goods or countries, export
duties or taxes may apply and must be paid.
➢ Customs Clearance Granted Once customs is satisfied, they issue a “Let Export
Order” or clearance approval.
➢ Goods Loaded onto Carrier The cargo is loaded onto the ship or airplane for
international transport.
➢ Departure & Export Completed The goods leave the country, and export is
officially completed.

3.2.2 Customs Clearance Import Process

➢ Documents Sent by Exporter The exporter provides the importer or customs


broker with key documents
➢ Arrival of Goods at Port or Airport The shipment arrives in the importing
country.
➢ Filing of Import Declaration The importer or customs broker submits an import
declaration to customs, using the documents provided.

12
➢ Customs Review Customs officials review the declaration and the documents to
verify that everything is accurate and legal.
➢ Cargo Inspection (if required) In some cases, customs may physically inspect
the cargo to confirm the contents match the declaration.
➢ Duties, Taxes & Fees Paid The importer must pay applicable customs duties,
import taxes (like VAT or GST), and any handling fees
➢ Customs Clearance Granted If all requirements are met, customs issue a
clearance or release order for the goods.
➢ Goods Released from Customs The goods are now cleared and can be picked
up from the port or airport.
➢ Final Delivery to the Importer’s Location The goods are transported (by truck
or other means) to the importer’s warehouse or business.

3.3 NVOCC OPERATION

A Non-Vessel Operating Common Carrier (NVOCC) is a company that acts


as a carrier to shippers, but does not own or operate ocean vessels. Instead, an
NVOCC purchases space from shipping lines (vessel operators) and sells that space to
exporters or importers, often consolidating shipments from multiple clients. It issues
its own House Bill of Lading (HBL) and assumes responsibility for the cargo, even
though the physical transport is handled by the actual shipping line.

3.3.1 NVOCC Export operation

➢ Receive booking confirmation from Forwarder / Shipper.


➢ Issue Container Release Order to CY as per vessel schedule.
➢ Book slot with Vessel Operator.
➢ Process EIR (Equipment Interchange Receipt) via CHA.
➢ Receive shipping instructions from the booking party.
➢ Apply for EIR through CHA.
➢ Prepare draft Bill of Lading (B/L).
➢ Release final Bill of Lading.
➢ Prepare EGM (Export General Manifest) for Vessel Operator.
➢ Raise invoice for freight and applicable local charges.
➢ Forward pre-alert details to the Agent.
➢ Receive Terminal Discharge Report from the terminal.

13
➢ Conduct Outstanding (O.S.) review and follow up for payment.

3.3.2 NVOCC Import operation

➢ Receive pre-alert details from the Agent.


➢ Send Cargo Arrival Notice to the Consignee.
➢ Prepare IGM (Import General Manifest).
➢ File vessel application (by us for empties / by CFS/ICD for laden containers).
➢ Before vessel berthing, send draft invoice to Consignee / CHA.
➢ Send Terminal Discharge Report (TDR) to Agent.
➢ Before issuing Delivery Order (DO), ensure collection of payment, bond,
holding cheque, etc.
➢ Issue Delivery Order to Customer.
➢ Calculate ground rent/detention, if applicable, and raise final invoice.
➢ Return cancelled bond and holding cheque after settling any outstanding dues

3.4 Key terminologies in freight forwarding

Consolidation &Co-loading: Consolidation means combining many small shipments


from different customers into one big shipment. This helps save space, reduce shipping
costs, and improve efficiency. The combined shipment is sent together to the same
destination or a central location, where it is then separated and delivered to each
customer.

Co-loading is when two or more freight forwarders share space in the same shipment
(like in a container or on a truck). They each place their customers’ goods together to
make better use of space and lower transportation costs. It’s a way for smaller shipments
to travel more affordably.

Stevedoring: Stevedoring is the process of loading and unloading cargo from ships at
a port. The people who do this work are called stevedores or dock workers. They use
special equipment like cranes and forklifts to move heavy goods safely and quickly.
Stevedoring is an important part of port operations because it helps keep ships on
schedule and cargo moving smoothly.

Container Yard: A container yard is a designated area within a port or terminal where
shipping containers are stored temporarily before being loaded onto or after being

14
unloaded from ships, trucks, or trains. It serves as a critical hub for organizing, sorting,
and managing containerized cargo efficiently.

Demurrage: A penalty charged by port or terminal when cargo or container stay in


port/terminal/CFS

Detention: It is the penalty charge for the shipping line or NVOCCs. If the container
is not returned within the allowed free days the shipping line charges it.

Onboard: It means the cargo loaded onto the vessel to export or import

Transhipment: It is the process of unloading goods at intermediate port and reloading


them onto the mother vessel

Vessel voyage: A unique specific reference number for ship trip (e.g. MSC HAMBURG
V.056E)

Gross weight: It is the total weight of the cargo including its packing and container.

Gross weight = Net weight + Packing weight + Container weight

Net weight: It is the actual weight of the cargo excluding any packing or container

3.5 INCOTERMS

Incoterms (International Commercial Terms), published by the International


Chamber of Commerce (ICC). These are standardized trade terms that define the roles,
responsibilities, and risks between the buyer and seller in an international transaction.

EXW (Ex Works)

o Seller: Makes goods available at their place (factory/warehouse).

o Buyer: Handles everything else (loading, transport, export/import, insurance).

FCA (Free Carrier)

o Seller: Delivers goods to a named place or carrier (can be a port, terminal, or


freight forwarder).

o Buyer: Takes over from there (shipping, import).

15
CPT (Carriage Paid To)

o Seller: Pays for transport to a named destination.

o Buyer: Handles insurance and risk after goods are handed to the carrier.

CIP (Carriage and Insurance Paid To)

o Like CPT, but the seller also pays for insurance.

o Seller pays more, but buyer still assumes risk early.

DAP (Delivered at Place)

o Seller: Delivers goods to the buyer’s location (not unloaded).

o Buyer: Pays import duties and unloads.

DPU (Delivered at Place Unloaded)

o Seller: Delivers and unloads goods at a named place.

o Buyer: Handles import clearance.

DDP (Delivered Duty Paid)

o Seller: Handles everything, including import duties.

o Buyer: Just receives goods.

FAS (Free Alongside Ship)

o Seller: Places goods next to the ship (e.g., dockside).

o Buyer: Loads them on the ship and handles the rest.

FOB (Free On Board)

o Seller: Loads goods onto the ship.

o Buyer: Takes it from there (freight, insurance, import).

CFR (Cost and Freight)

o Seller: Pays for transport to the destination port.

o Buyer: Assumes risk after goods are on the ship.

16
CIF (Cost, Insurance and Freight)

o Like CFR, but the seller also pays insurance.

o Most common for sea shipments

3.6 Letter of Credit (L/C) in International Trade

A Letter of Credit is a guarantee issued by a bank on behalf of the buyer


(importer) to ensure that the seller (exporter) receives payment once all the terms and
conditions stated in the LC are fulfilled. It acts as a risk mitigation tool for both parties,
especially when the buyer and seller are in different countries and may not have an
established relationship.

The LC is governed by international rules under the UCP 600 (Uniform Customs and
Practice for Documentary Credits) published by the International Chamber of
Commerce (ICC).

17
3.7 CFS

3.7.1 CFS (Container Freight Station)

A Container Freight Station (CFS) is a facility located near a seaport where


goods are packed into containers before being shipped or unpacked after arriving. It is
used to organize, sort, and prepare cargo for loading onto ships or for delivery after
unloading. CFS also helps with checking documents and handling customs procedures
for cargo near the port.

18
3.7.2 CFS Export Process

➢ Cargo Received at CFS The exporter sends goods to the CFS for shipment.
➢ Stuffing of Cargo into Containers Goods from multiple exporters are loaded
(stuffed) into one container.
➢ Customs Inspection & Clearance Customs officers check documents and may
inspect goods.
➢ Container Sealed and Moved After clearance, the container is sealed and moved
to the port.
➢ Container Loaded onto Vessel At the port, the container is loaded onto the ship
for export.

3.7.3 CFS Import Process

➢ Container Arrives at Port The imported container is unloaded from the ship.
➢ Container Moved to CFS The container is taken to a nearby CFS.
➢ Customs Clearance The importer submits documents and pays duties/taxes.
➢ Cargo De-stuffed Goods are removed from the container and separated.
➢ Delivery to Importer Cleared goods are delivered to the importer.

3.8 ICD (Inland Container Depot)

An Inland Container Depot (ICD) is a facility located away from the port,
usually in an inland city. It functions like a small port where containers are received,
stored, and cleared by customs. ICD (Inland Container Depot) An Inland Container
Depot (ICD) is a facility located away from the port, usually in an inland city. It
functions like a small port where containers are received, stored, and cleared by
customs.

3.9 Sample of the documents

As part of my internship training at St. John Freight Systems Ltd., I was given
the opportunity to study and analyze real-world export documentation.

19
Invoice

20
Packing List

21
Bill Of Entry

22
Bill Of Lading

23
Check List

24
CHAPTER 4

4.1 SWOT Analysis of St. John Freight Systems Ltd.

During the course of my internship at St. John Freight Systems Ltd., I had the
opportunity to observe the company’s operations, systems, customer engagement, and
logistics infrastructure closely. Based on my observations, discussions with employees,
and analysis of documentation and workflow, I have developed the following SWOT
(Strengths, Weaknesses, Opportunities, and Threats) analysis. This chapter reflects my
analytical understanding of the company from a strategic business perspective.

4.1.1 Strengths

Wide Global and Domestic Network: St. John Freight Systems has over 58 offices
across 20 countries, making it one of the most well-connected logistics companies in
India. This extensive network helps the company offer seamless freight solutions

Integrated Logistics Services: The company provides end-to-end services including


freight forwarding, NVOCC, CFS/ICD operations, customs brokerage, warehousing,
trucking, and chartering, which adds tremendous value for customers.

Strong Industry Experience: Established in 1979, St. John has over four decades of
experience in logistics, which enhances customer trust and operational confidence.

25
4.1.2 Weaknesses

Staff Specialization Gap: During my internship, I observed that some operational


departments rely on multitasking staff instead of deploying specialists, which could
affect efficiency during high-volume periods.

Manual Processes in Some Areas: Certain processes like documentation checks and
stuffing monitoring still rely on manual intervention, which can increase the risk of
human error

4.1.3 Opportunities

Green Logistics and Sustainable Practices: The company’s solar-powered ICD


initiative in Tuticorin shows its potential to become a leader in eco-friendly logistics
solutions.

Growing Demand for Integrated 3PL Services: With global businesses seeking cost
effective supply chains, St. John can package its services as full-solution logistics to
large-scale exporters and importers.

Award-Winning Operations: The company has won multiple recognitions including


the CII SCALE Award 2024 and the "Customs Broker of the Year – Tuticorin Region"
award, reflecting its excellence in service quality.

4.1.4 Threats

Intense Market Competition: The logistics industry is highly competitive, with


pressure from multinational players like DHL, Maersk, and DB Schenker, as well as
regional players like Sanco Trans, Triway CFS, Seahorse Group, and PSA SICAL
operating in Tuticorin. This increases competition for both pricing and service quality.

Port Congestion and Operational Delays (Tuticorin Specific): Tuticorin Port often
faces congestion and infrastructure limitations, which can delay cargo handling and
increase turnaround times.

Fluctuating Fuel and Freight Rates: Unpredictable shipping rates and surging fuel
prices can directly impact cost margins and profitability.

26
CHAPTER V

5.1 Major Learning Outcomes

Upon completing my internship at St. John Freight System Ltd., Tuticorin, I was
able to achieve significant learning outcomes that enhanced both my theoretical
understanding and practical skills in the logistics and freight forwarding domain. The
key outcomes of my internship experience are as follows:

Developed a clear understanding of the import and export procedures.

I gained practical knowledge of how goods are moved across international


borders, including booking shipments, coordinating with clients and shipping lines, and
managing timelines and documentation related to both import and export processes.

Acquired hands-on experience with logistics documentation.

I became proficient in handling essential documents such as the Bill of Lading,


Commercial Invoice, Packing List, and Shipping Instructions. I understood their
purpose, how they are generated, and their importance in ensuring smooth cargo
movement and regulatory compliance.

Understood the customs clearance process and its practical application.

I observed the complete customs clearance cycle, from document preparation


and submission to coordination with customs officials. I learned how freight forwarders
assist in clearing shipments efficiently and in compliance with national and
international regulations.

Gained exposure to NVOCC operations and services.

I understood how NVOCCs function within the supply chain, including


managing space on vessels, issuing House Bills of Lading, and coordinating shipments
without owning ships. This helped me appreciate their role in optimizing freight
forwarding solutions.

Bridged the gap between academic learning and industry practices.

Through active participation and observation, I was able to connect classroom


concepts with real-world operations, thereby strengthening my overall understanding
of the logistics and supply chain industry.

27
5.2 Real-Time Exposure at ICD and CFS – Tuticorin Branch

During my time in Tuticorin, I visited the CFS and ICD, where I observed real-
time cargo handling processes such as container stuffing and de-stuffing, customs
inspection, container yard operations.

5.3 Conclusion

My internship at St. John Freight System Ltd., Tuticorin was a highly valuable
and enriching experience that significantly contributed to my academic and
professional development. It provided me with a real-world understanding of how the
logistics and freight forwarding industry functions on a day-to-day basis. I was able to
observe and participate in key operations such as import and export processes,
documentation handling, customs clearance procedures, and NVOCC services.
Additionally, the opportunity to visit and gain firsthand exposure to Inland Container
Depots (ICDs) and Container Freight Stations (CFSs) allowed me to witness the critical
backend infrastructure that supports international trade.

The guidance and support I received from the team at St. John Freight System
Ltd. made a lasting impact, and I am confident that the knowledge and skills I acquired
during this internship will be instrumental as I move forward in my career in the
logistics and supply chain industry.

28
5.4 Workdone

29
30
31
32
5.5 Photos

ST. JOHN FREIGHT SYSTEM TUTICORIN

33
ICD TUTICORIN(Where I observed container storing away from Port area)

34
CFS TUTICORIN(Where I Observed Container Stuffing And De-Stuffing And Cargo
Inspection And Clearance Operation)

35

You might also like