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  • What Is Freight Forwarding? A Complete Definition and Explanation

What Is Freight Forwarding? A Complete Definition and Explanation

In export and import operations, transshipment is the process of moving goods or containers from one storage location to another within the port area. This process is carried out to reduce yard congestion, ensure the smooth flow of loading and unloading operations, or move goods to the next handling point.

The overbrengen process often involves several parties, including importers, freight forwarders, terminal operators, Temporary Storage Facility (TPS) operators, trucking companies, and Customs. This is because the goods being moved are still under customs supervision, so every step of the process must follow applicable procedures, record-keeping requirements, and regulations.

✦ Key Takeaways
    • “Overbrengen” refers to the transfer of containers between storage locations within a port area
    • The goal is to reduce congestion and ensure the smooth flow of loading and unloading operations.
    • Overbrengen involves importers, freight forwarders, TPS, trucking companies, and Customs.
    • Oaktree helps centrally manage documents, costs, and shipment status.

Explanation of What “Overbrengen” Is

Overbrengen is the process of moving goods or containers from one storage location to another within the port’s operational area. Therefore, overbrengen differs from regular shipping. Overbrengen is part of cargo management at the port, whereas regular shipping aims to deliver goods to the final recipient.

This process is subject to the regulations on unloading, storage, and supervision of imported goods as stipulated in PMK No. 108/PMK.04/2020, as well as the provisions regarding customs zones and Temporary Storage Facilities in PMK No. 109/PMK.04/2020. Therefore, the transfer of goods must follow applicable customs procedures and port operational regulations.

Purpose of Overbrengen at the Port

The “Overbrengen” service is provided to support the smooth flow of goods and port operations. Some of its objectives include:

1. Reducing congestion in container yards

Container storage yards have limited capacity. Transferring containers to other TPSs can free up space for containers that have just been unloaded from ships.

2. Ensuring the smooth flow of loading and unloading

Uncontrolled container stacking can disrupt loading and unloading activities. Transshipment helps terminals organize container placement so that operations can continue smoothly.

3. Moving Goods to the Next Handling Location

Certain cargo or containers may need to be moved to a TPS that has the appropriate inspection, storage, or handling facilities.

4. Supporting the monitoring of imported goods

The overbrengen process ensures that the movement of goods is properly documented. Information such as container numbers, vehicle numbers, origin TPS, destination TPS, and the time of transfer must be managed correctly.

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When Is “Overbrengen” Performed?

Overbrengen must not be carried out arbitrarily because the goods or containers are still under customs supervision. This process is only carried out based on operational needs and in accordance with applicable procedures.

Transfer is generally carried out when:

  • Storage yard capacity begins to run low.
  • There is a container backlog at the terminal.
  • The customs clearance process for the goods has not been completed.
  • Import documents are incomplete.
  • Goods require special inspection or handling.
  • Containers need to be moved to another Temporary Storage Area (TPS).
  • The terminal must ensure the smooth operation of loading and unloading activities.

The transfer must be accompanied by documentation and approval from the relevant parties. The regulations may vary from port to port, depending on the policies of the terminal and the local Customs office.

How Does the Overbrengen Process Work?

The overbrengen procedure may vary from port to port. However, the process generally involves the following steps.

1. Identifying the containers

The terminal or relevant parties determine which containers need to be transferred. This determination may take into account the status of the goods, the duration of storage, and on-site conditions.

2. Submission and verification of data

The responsible party prepares the transfer data. This data may include:

  • Container number
  • Bill of Lading number
  • Vessel name
  • Importer’s name
  • Origin and destination TPS
  • Vehicle data
  • Reason for Transfer

The actual requirements must be adjusted in accordance with the regulations of the relevant port and Customs office.

3. Transfer Approval

Goods cannot be moved freely because they are still under customs supervision. The transfer is carried out after the necessary administrative processes and approvals have been completed.

4. Container Transportation

Containers are transported from the origin TPS to the destination TPS using designated vehicles.

5. Registration at the Destination TPS

Upon arrival, the containers are recorded and placed at the destination TPS. The goods remain under supervision until customs obligations and the release process are completed.

Who Is Involved in the Overbrengen Process?

The overbrengen process involves several parties because the transfer of goods relates to operations, transportation, documentation, and customs.

Parties that may be involved include:

  • The importer, as the owner or party responsible for the goods
  • Freight forwarder, as the manager of the shipping process and logistics coordination
  • Customs Broker (PPJK), as the party assisting with customs clearance
  • Customs, as the party providing customs services and oversight
  • Terminal operators, as the managers of the initial container storage location
  • TPS operator, as the manager of the goods storage location
  • Trucking companies, as the parties that transport containers
  • Shipping companies, as the parties that provide and manage containers

Poor coordination among these parties can lead to delays, documentation errors, and additional costs.

Conclusion

Transshipment is the process of moving goods or containers from one storage location to another within a port’s operational environment. This process is carried out to reduce congestion, ensure smooth loading and unloading, support monitoring, or move goods to the next handling location.

Overbrengen involves many parties and a significant amount of data. Freight forwarding companies must accurately manage information regarding containers, documents, vehicles, vendors, costs, and shipment status.

That’s why Oaktree is here as freight forwarding software that helps companies manage operational activities, shipment documents, vendor costs, and financial information all within a single system. With more centralized data, teams can reduce recording errors and improve coordination throughout the shipping process.

Want to learn how Oaktree can help with freight forwarding operations management? Contact the Oaktree team to schedule a system demo.