Anura Fish Exporters: Live Crab Export Project from Sri Lanka to UK

This project comprehensively details the export of 907.185kg of live crabs from Batticaloa, Sri Lanka, to Billingsgate Market, London, UK, for Anura Fish Exporters (Pvt) Ltd. The project outlines step-by-step procedures, emphasizing air freight due to time sensitivity and the need for live delivery. It justifies the chosen steps, including crab handling, storage, packing, and air freight selection, while addressing risks like mortality and documentation requirements. The project includes detailed costing, Incoterms (DDP), labeling, and payment methods via Letter of Credit. It also covers necessary documents for both export from Sri Lanka and import to the UK, volumetric weight calculations, and a discussion on potential risks for the exporter. Relevant documentation, including the Lacey Act compliance and Srilankan Airlines' services are also included.

Contents
Task One..................................................................................................................................................3
All Procedures and steps for an Export of live crabs................................................................................4
Storage of Live crabs................................................................................................................................4
Packing crabs...........................................................................................................................................4
Why use air freight..................................................................................................................................6
Documents and approval needed for exports crabs from Srilanka..........................................................7
Documents needed for Import crabs to United Kingdom........................................................................7
Calculation of Volumetric Weight on Srilanka Airlines Cargo..................................................................8
Srilankan Airlines Route Map..................................................................................................................8
Srilankan Airlines Flight Schedules and Timing........................................................................................8
Costing.....................................................................................................................................................9
Delivered duty paid (DDP) Incoterms 2010..........................................................................................9
DDP Seller pays for:...............................................................................................................................10
DDP Buyer pays for:...............................................................................................................................10
Labeling / Marking.................................................................................................................................11
Carrier Acceptance by Air Mode............................................................................................................11
Payments for Seafood Shipments via Air mode.....................................................................................11
For the Exporter/Seller..........................................................................................................................12
For The Importer/Buyer.........................................................................................................................12
Risks that the exporter will face............................................................................................................13
Task 02,..................................................................................................................................................14
Packaging...............................................................................................................................................15
Labeling.................................................................................................................................................16
Preparing export declarations...............................................................................................................18
Preparing delivery orders or dock receipts............................................................................................19
The Costing............................................................................................................................................19
Ocean Freight charges LCL.....................................................................................................................19
Ocean Freight charges FCL.....................................................................................................................20
Air freight charges.................................................................................................................................20
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Document need in MARINE transport...................................................................................................21
Document need in AIR transport...........................................................................................................21
Transportation insurance......................................................................................................................22
Limitation of Liability.............................................................................................................................22
Incoterms EX- Works (Exw)....................................................................................................................23
References.............................................................................................................................................24
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Task One
A commercial fisher has tasked you with transporting 907.185kg of Live Crabs from Batticaloa,
Sri Lanka to Bilingsgate Market, London.
- Explain step-by-step how you intend to do this.
- Justify your decision to take each of the steps you propose.
- Outline the risks the exporter will be taking.
- Offer costings
- Include relevant documents or explanations of these documents in an appendix.
Details:
• Commodity: Live Crabs (Fresh Lagoon Crabs)
• Pickup point: Batticaloa, Sri Lanka
• Shipper: Anura Fish Exporters (Pvt) Ltd. - Batticaloa, Sri Lanka
• Consignee in UK: Fresh Fish Inc. Bilingsgate Market, London, UK
• Incoterm: DDP - Fresh Fish Inc. Bilingsgate Market, London, UK (Delivered Duty Paid)
• Cargo Gross weight: 907.185 Kg (including the weight of the cartons)
• Cargo Dimensions: Master carton size 40" x 35" x 35" --- 60 Nos of Master Cartons
• Payment Terms: Letter of credit (L/C)
• Origin Airport: Colombo (CMB) - Sri Lanka *if by Air
• Origin Sea Port: Colombo, Sri Lanka *if by Sea
• Destination Airport: Heathrow (LHR) - United Kingdom *if by Air
• Destination Sea Port: Felixtowe - UK *if by Sea
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All Procedures and steps for an Export of live crabs
Key information on the handling, sorting and storage of live crabs for harvesters before transport.
 Confirm legal size, sex and not berried as per state/territory regulations for export and
inspection.
 Tie crab’s claws hard against the body to restrict movement as soon as possible. This minimizes
crab stress, aggression and damage to other crabs and handlers.
 Apply care when legs are caught in basket. Pulling on legs can cause bleeding which increases
likelihood of death. Remove weak, slow or bleeding crabs. These may be revived using a
recovery procedure.
 Put 5 to 7 crabs in one eskies/boxes and fill it with ¼ of salt water.
Storage of Live crabs
Temperature variation is a principal cause of mortality in the live transport of crabs and the Importance
of maintaining low water temperatures at about 8 degree C cannot be stressed too highly. The main
benefits are that at low temperatures crabs are less active. As such they produce less metabolic wastes
and require less oxygen to breathe, so putting a reduced demand on the water in which they are
travelling.
 Avoid exposure to sunlight and breeze.
 Transport vehicle cargo area should be cooled at 18ºC to 25ºC.
Packing crabs
 Cool crabs to 18-25°C if possible prior to packaging. Provide air holes in eskies/boxes (2 in winter
or dry season, 4 in summer or wet season). If refrigerated transport is less than 15°C, reduce the
number of air holes.
 Discard weak crabs - badly damaged, very slow or frothing crabs should be killed or removed
because these crabs will not survive further transportation.
 Live crabs can be packed in layers separated by moistened material such as wood shavings,
newspapers or burlap. A layer of moistened materials can be placed on top. The box should
have ventilation holes on the top edge. Crabs should not be packed as high as the ventilation
holes.
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When packing the live crabs ;The first pair of largest legs with pincers(chelate legs) of each crab should
be firmly tied up to the body by nylon thread to avoid damages .fight and movement of cannibalism
among the crabs , while packing to the box place some wet seaweeds in between and add a small
quantity of sea water (1/4 of the box)to the packed layers of crabs to enhance moist and cool condition
during the transport for place to destination, the best method of transporting live tied-up crabs are
washed with fresh sea water and packed on either in bamboo basket or in perforated Styrofoam boxes
for export purpose.
 Live Product
 Fragile
 This Way Up
 Keep Cool but NOT Refrigerated
 Provide traceability of product – state of origin at least
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Why use air freight
When we consider the shipment of live crabs it only stay alive for maximum of 4 to 5 days; so the
shipment of live crabs cannot be done via sea freight because of the fact that even the fastest ocean
service from Colombo to port of Southampton is about 18 days. And also considering about live crabs
the standard containers are air tight and there will be no ventilation for the crabs. Since we are dealing
with live crabs sea freight is not an option. So considering these facts the only option to transport the
live crabs is by using air freight.
Air cargo is often utilized for high value and low capacity shipments. The customary procedure of air
cargo dispatch is to consign a consignment enclosed by an air waybill to a cargo air carrier.
Airfreight is quicker and has higher security than ocean freight; therefore the premium rate usually is
lower. Worldwide airports can be reached in one day or during a few hours by airfreight, so reducing the
risks of thievery and harm to the products. Delivery to bound areas might take many weeks to arrive by
ocean freight. Time sensitive products such as live Crab (According to scenario) perishables often rely on
air cargo.
When we take the above scenario of transporting live crabs from Colombo (CMB) - Sri Lanka to the
Consignee in, London (LHR), United Kingdom. Sri Lankan Airlines (UL) prime services should be used,
since it provides a direct transport to the Final destination London (LHR) and also because of the fact
that we should deliver live crabs not dead ones, where other standard general cargo services use transit,
and may be delay in shipping, which ultimately result in delivering dead crabs.
The Srilankan airline provides extra special care to Perishables such as fish, meat, dairy, fruit and
vegetables. Specially maintained temperatures and storage facilities handled by professionally trained
staff ensure perishables come in peak condition.
Documents and approval needed for exports crabs from Srilanka
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 Sri Lanka National Plan of Action to Prevent, Deter and Eliminate IUU Fishing (SLNPOA-IUU)
contains measures that are being implemented and those proposed to be adopted for
implementation to combat IUU fishing activities conducted by local fishing in Sri Lanka waters,
and waters of national jurisdictions of other coastal States and high-seas Sri Lanka waters. It has
been prepared in accordance with the guidelines stipulated in the International Plan of Action to
Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing (IPOA-IUU) and
exporting live aquatics.
 Fisheries of Sri Lanka are governed by Fisheries and Aquatic Resources Act, No. 2 of 1996 as
amended by Acts No. 4 of 2000, 4 of 2004 and 22 of 2006 (FARA), provisions of which are
administered by the Department of Fisheries and Aquatic Resources (DFAR). FARA does not
include provisions to implement measures on illegal fishing of aquatics and exporting services.
 There for the relevant document should be submitted to provide the approval of local
government to catch aquatics and to export them to market.
Documents needed for Import crabs to United Kingdom
 Import license is requires when importing live aquatics (crab, fish lobster etc.) because of
negative list.
 A CARICOM Area Invoice (this is provided by the supplier and is necessary for any goods entering
the CARICOM region).
 The supplier’s invoice. A copy of the Airway Bill (for items transported by air) or Bill of Lading
(for items transported by sea).
 Import license for those items that are on the negative. information on obtaining an import
license, should be registered to the relevant fishery department
 A declaration on the C75 or C76 form (used only when there is an ongoing demand-supply
relationship between the importer and the supplier) signed by the importer. A certificate of
origin (provided by the supplier).
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Uniform resource locator for Inspection on volumetric weight
http://www.srilankancargo.com/tools/volumetric-weight.
Srilankan Airlines Route Map.
Srilankan Airlines Flight Schedules and Timing
(Both Departure and Arrival)
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Calculation of Volumetric Weight on Srilanka Airlines Cargo
(C1024 for live crab ,fish and stock)
1 / Commodity - C1024
Dimensions in inches (40 x 35 x 35) 60 cartons(ctns)
to centimeters (101.6 x 88.9 x 88.9)
101.6 x 88.9 x 88.9 x 60 ctns
-------------------------------- = 6882.56 kilograms
7000

Costing
 Transport charges from Batticaloa to Airport -
 Export custom documentation -
 Handling charges -
 Export corantime clearance -
 Prime service charges -
 Import custom clearance -
 Import corantime charges -
 VAT or possible taxes -
 Transport charges from Heathrow to Billingsgate Market -
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Delivered duty paid (DDP) Incoterms 2010
Delivered duty paid means that the seller delivers the goods to the buyer, cleared for import, and
not unloaded from any arriving means of transport at the named place of destination. The seller has
to bear all the costs and risks involved in bringing the goods thereto including, where applicable any
duty (which term includes the responsibility for and the risk of the carrying out of customs
formalities and the payment of formalities, customs duties, taxes and other charges) for import in
the country of destination.
However, if the parties wish to exclude from the seller's obligations some of the costs payable upon
import of the goods (such as value-added tax : VAT), this should be made clear by adding explicit
wording to this effect in the contract of sale of the Incoterms 2010 rules).
DDP Seller pays for:
 Packing suitable for air transport
 Loading charges
 Delivery to terminal
 Customs clearance for export
 Export taxes and duties
 Loading on aircraft
 Freight charges
 Terminal charges airport arrival
 Demurrage storage charges on airport due to customs clearance.
 Customs clearance for import
 Import taxes and duties
 Delivery to final destination
 Insurance
DDP Buyer pays for:
 Unloading at destination
Sellers Risk and Cost
Buyers Risk and Cost
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Labeling / Marking
All containers of seafood being shipped interstate must be marked according to the 1988 Lacey Act.
A Fish/Wildlife Sticker may be used by the shipper to provide required information. The following six
items to be prominently displayed on each shipment:
 Name and address of shipper and consignee, or passenger.
 24-hour phone number of the consignee or passenger.
 Commodity note as Fish or Wildlife.
 Specifies species name: such as live Crab
 Number of each species or the weight of each type species.
 Each container must be marked Live, Fresh or Frozen.
Carrier Acceptance by Air Mode
Compliance with the Lacey Act and its packaging requirements are mandatory where the
containers must be free of leaks and odors, random "tip tests" shall be conducted, with the
option of refusing an entire shipment should there be an excessive number of cartons leaking of
Indelible inks and waterproof labels must be used. Sequential numbering of multiple packages is
recommended (1 of 4, 2 of 4, 3 of 4, etc.).
Payments for Seafood Shipments via Air mode
Most Airlines does not accept COD (Cash on Delivery) payments because of Noncommercial
perishable goods must be prepaid. So airway bills like Letter of credit are being used, these Air
Waybills are never negotiable. They are always straight consignments even if “TO ORDER” is typed
in the Consignee block. Not being a title document, but merely a receipt for shipment, the
importing buyer can pick up the merchandise at the airport simply by providing proper identification
to the carrier.
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(Q)When a letter of credit is used, how does the exporter prevent the buyer from getting
the merchandise without paying for it?
Answer: The Air Waybill consignee should be listed as the buyer’s bank. The bank will
transfer the goods to the buyer through an “Air Release”, but only after the buyer has paid or
obligated himself to pay for the merchandise. Air Waybills only be consigned to the order of the
buyer’s bank with that bank’s permission.
The fact is that Letter of Credit can be a very useful financial tool for both the buyer/importer and the
seller/exporter. While Letters of Credit are particularly well suited for high transactions,
For the Exporter/Seller
 Upon presentation of the specified documents (in strict conformance) the Seller/Exporter is
guaranteed payment (the exception is if the Issuing Bank folds)
 Eliminates risk of the buyer canceling the order and therefore reduces production risk
 Makes it easier for the Seller/Exporter to secure order/production financing-pre-export
financing
 Easier to secure receivable financing (in case where the L/C is not payable At Sight)
 Buyer cannot refuse payment by raising a complaint about the goods. Any complaints must be
settled between the Buyer and Seller outside of the L/C.
For The Importer/Buyer
 In most cases the Importer/Buyer avoids partial pre-payments or deposits
 Helps reduce the risk of non-performance of the Exporter/Seller. If the Exporter/Seller doesn’t
ship the goods they don’t get paid.
 Certainty that payment will only be make to the Exporter/Seller upon presentation of
documents in strict compliance with the L/C evidencing the shipment of goods.
 Documents are received quickly, expediting customs clearance and ultimate delivery
 Makes structuring an advantageous payment schedule easy
 Importer/Buyer will receive timely delivery or the goods because the L/C terms dictate latest
acceptable shipment date.
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