A container number, also known as container identification number, is a reference number assigned to a freight container for legal and commercial purposes.
Container seal number is an identification number of a container seal. Each container seal has an individual identification number.
Both container numbers and seal numbers are important international transportation security and safety measures and monitored closely by customs offices during the import and import stages.
On this post, I will identify the main differences between a container number and a container seal number.
Differences Between Container Number and Seal Number:
Easy to Locate / Hard to Locate:
Container number is printed on three spots of each freight container: one on the doors end, one on the side wall and one on the top of the container.
It is very easy to locate a container number.
On the other hand, a seal number is affixed to each container seal, which is a small item.
It is not easy to locate a seal number comparing to a container number.
Tracking a shipment:
It is possible to track a shipment by a container number. On the other hand you can not track a shipment by a seal number.
Customs and Border Protection departments of countries have one basic goal.
Allowing the clean cargo pass through the customs, while detecting and preventing the entrance of illegal cargo such as narcotics, guns, some types of chemicals etc.
To achieve this objective, each party in international logistics have to follow certain security rules. Sealing freight containers with proper seals is one of these security measures.
It is compulsory for every shipping container to have at least one seal before a shipping line allows the container to be shipped.(1)
Seal number is an identification number of a container seal. Each container seal has an individual identification number.
Container Seal Documentation Process
Under Full Container Loads(FCL), it is shippers responsibility to inform the seal number along with other relevant information stated in the shipping instructions to the carrier, after securely stuffing and sealing the container.
Under Less Container Loads (LCL), it is the freight forwarder who stuffs and seals the container, not the shipper. As a result under LCL shipments, the freight forwarder must inform the seal number to the carrier.
In either way, the seal number must be properly documented.
Example:
G2382564 is a seal number that belongs to CMA CMG container liner group (APL) that is used to seal a 40HC container with container number APHU7124611.
A container number, also known as container identification number, is a reference number assigned to a freight container for legal and commercial purposes.
Container number, which is one of the container markings, is printed on three spots of each freight container: one on the doors end, one on the side wall and one on the top of the container.
Containers are the main Cargo Transport Units (CTU) in international transportation.
They are mainly used to carry almost all types of manufacturing goods.
Some container types are also suitable for commodity transportation such as bulk containers and tank containers.
Because hundreds of thousands of containers are in circulation each day between the borders of the nations, it is very important to label each of them by an internationally accepted organization with an internationally recognized identification system.
Container numbers are assigned by The Bureau International des Containers, which was founded in 1933 as a neutral, non-profit, international organization whose mission is to promote the safe, secure and sustainable expansion of containerization and intermodal transportation.
BIC (The Bureau International des Containers) uses the ISO 6346 standard when assigning reference numbers to the shipping containers.
Understanding the Container Identification Number Structure:
Container Identification Number:BIC Code (Owner prefix) + Equipment Identifier + Serial Number + Check Digit
The identification system provides uniform international identification of containers, in documentation and in communication associated with the movement of containers from door to door. It consists of:
The Owner Prefix (BIC code): Three capital letters of the Latin alphabet to indicate the owner or principal operator of the container,
The Equipment Category Identifier: One capital letter as follows:
U for all freight containers,
J for detachable freight container-related equipment,
Z for trailers and chassis,
The Serial Number: Six Arabic numerals, left at owner‘s or operator‘s option,
The Check Digit: One Arabic numeral providing a means of validating the recording and transmission accuracies of the owner code and serial number. (1)
Examples:
Example 1:) MSKU 907032-3 is a container identification number referencing a Maersk Line container.
MSKU is a BIC code which belongs to Maersk Line. Serial number of the container is 907032 and the check digit is 3.
Example 2:) MRKU 953040-6 is a container identification number referencing a Maersk Line container.
MRKU is a BIC code which belongs to Maersk Line. Serial number of the container is 953040 and the check digit is 6.
Example 3:) MEDU 870768-8 is a container identification number referencing a MSC container – Mediterranean Shipping Company.
MEDU is a BIC code which belongs to MSC. Serial number of the container is 870768 and the check digit is 8.
Containers are the main Cargo Transport Units (CTU) in international transportation. They increase efficiency and decrease costs in all stages of the transportation.
Containers used in international transportation must carry standard markings in order to:
easy container and cargo tracking
increase border protection measures and prevent illegal cargo traffic
increase efficiency at port operations etc.
On this post I explain container markings and how to read numbers, symbols and warning plates on a freight container.
Container Identification Number: Container identification numbers are assigned by The Bureau International des Containers, which was founded in 1933 as a neutral, non-profit, international organization whose mission is to promote the safe, secure and sustainable expansion of containerization and intermodal transportation.
Container Identification Number: BIC Code(Owner prefix) + Equipment Identifier + Serial Number + Check Digit
The identification system provides uniform international identification of containers, in documentation and in communication associated with the movement of containers from door to door. It consists of:
The owner prefix (BIC code): three capital letters of the Latin alphabet to indicate the owner or principal operator of the container,
The equipment category identifier: one capital letter as follows:
U for all freight containers,
J for detachable freight container-related equipment,
Z for trailers and chassis,
The serial number: six Arabic numerals, left at owner‘s or operator‘s option,
The check digit: one Arabic numeral providing a means of validating the recording and transmission accuracies of the owner code and serial number.(1)
Size and Type Code: Each container has a standard size and type code assigned by BIC institution. Some examples are given below:
45G1: 40′ High Cube Dry Container
22G1: 20′ Dry Container
42G1: 40′ Dry Container
22R1: 20′ Reefer Container
42R1: 40′ Reefer Container
45R1: 40′ Reefer High Cube Container
Maximum Gross Weight: This is the maximum weight that the container can carry including tare weight.
Tare Weight: Tare weight is the weight of empty container.
Maximum Payload: Maximum amount of weight that the container can carry. This is a calculation based information. Most of the containers can not be loaded to the maximum payload because of the transportation weight limitations. Exporters must consult with their freight forwarders before shipment.
Capacity: Volume capacity of the container.
Height Warning: Is another compulsory transportation safety information.
Manufacturer’s Logo: Shows the manufacturer of the container.
Owner’s Logo: Shows the owner of the container.
Repair Recommendation: A container has to be operated either under an ACEP or a PES (Periodic Examination Scheme) from day 1. The first inspections isn’t required until 5 years, but it must have a scheme in place in order to be operated. Without a valid ACEP sticker or Next Examination Date (under the PES), the container should not be loaded on board a ship.(2)
Side, Top and Front End Markings:
On side, top and fronts ends containers carry only Container Identification Number and Size and Type Code markings.
Packages, which are subject to international transportation, must be spotted and recognized at a distance with ease.
Exporters and carriers add some sort of identification marks on to the packages in order to make sure that they are handled correctly and efficiently during the whole transportation process.
The marking, also known as “Shipping Marks”, serve two main purposes: first, as identification marks for the carriers and all those engaged in the carriage and handling while in transit, and second, for the consignee to identify the corresponding order and activity to ensure correct delivery. (1)
On this post, I will explain the shipping marks and how they are used in letters of credit payments.
What is Shipping Marks? / How to Define Shipping Marks in International Freight Transportation?
Shipping marks can be defined as a symbol, word or number that is attached on to the each package unit for easy identification and handling of the cargo.
Shipping marks are vital parts of the international freight transportation.
Why Shipping Marks are Important in International Freight Transportation?
Thanks to the rapid advances in logistics technology, the global freight transportation infrastructure could handle enormous volumes of cargo annually.
In 2008, more than $16 trillion of exported freight was transported worldwide.
Maritime vessels, airplanes, trucks, and trains transported these goods from production centers to consumption markets. (Source: Freight Transportation on: Global Highlights 2010, Page:4, Bureau of Transportation Statistics)
All operations in international freight transportation must be completed smoothly from beginning to end.
Domestic transportation and custom operations in exporting country, international cargo transportation between exporting country and importing country, custom operations and domestic transportation in importing country should be handled as fast as possible to prevent any delays and occurrences of extra costs to the exporters and importers.
In order to prevent wrong delivery, accidents, losses, customs penalties or damage resulting from improper storage or incorrect handling, each package unit must be marked with the required shipping marks correctly and completely.
Figure 1. Shipping Marks: Each package unit must be marked with the required shipping marks correctly and completely. Above graphic explains the usage of the shipping marks in an international freight transportation starting from the smallest package unit to the biggest package unit.
Shipping Marks Examples:
Example 1: Dispatching Food Sample from Italy to USA
An Italian food manufacturing company needs to send two pieces of 5kg Tin Fresh Pizza Sauce to an importer located in New York, United States.
Italian Food Company places two 5kg tins of Fresh Pizza Sauces in to a cardboard box. The dispatch will be made via express courier service.
Shipping Marks Attached on to the 5kg Tin Packages: Description of goods, lot numbers, production date, expiry date, net weight.
Shipping Marks Attached on to the Cardboard Box: Description of goods, origin of goods, handling information, inner package type and quantity, net weight. gross weight, consignee details.
Example 2: Dispatching 1 Container of Textiles from Morocco to France
A Moroccan textile manufacturing company wants to export one container of men’s’ underwear to an importer located in Paris, France.
Packing of the container will be as follows: 10 pcs of men’s underwear put into a carton box, then 70 cartons put on to a wooden pallet. 40ft container loaded with 21 pcs of 100cmx120cm pallets.
Shipping Marks Attached on to the Transparent Plastic Bags: Description of goods, lot numbers, production date, production material, label, origin of goods, washing directions etc…
Shipping Marks Attached on to the Carton Boxes: Description of goods, origin of goods, inner package type and quantity, net weight, gross weight, consignee details etc…
Shipping Marks Attached on to the Wooden Pallets: ISPM15 mark, pallet label etc…
Shipping Marks Related to the Container: Container size, container type, and container number, seal number, etc…
Which Documents Should Show Shipping Marks?
Almost all export documents could show shipping marks in a different scale.
Some documents may cover almost all of the shipping marks that is related to the shipment, whereas some documents may reference to one or two shipping marks.
The packing list should cover as much shipping marks as possible. In addition to the packing list; the bill of lading and commercial invoice should cover the related shipping marks.
Which Documents Should Not Show Shipping Marks?
Bill of exchange (draft) should not cover any shipping marks on it, except the letter of credit number.
Bill of exchange is a negotiable instrument and the format of the bill of exchange regulated by the local law.
Any unrelated reference in the bill of exchange may make the document void in terms of respected local law. As a result exporters must refrain to add any shipping marks on to the bill of exchange.
How Shipping Marks Are Used in Letters of Credit?
Shipping marks can be mentioned in MT700 Swift messages in two ways:
Shipping marks mentioned under field 46-A Documents Required
Shipping marks mentioned under field 47-A Additional Conditions
Shipping Marks Mentioned Under Field 46-A: Documents Required
Examples:
Beneficiary’s certificate stating that all cases are marked by black ink as follows: name and address of applicant, purchase order number, letter of credit number.
Beneficiary’s certificate one original stating that shipment details including date and place of loading, name, age, nationality, IMO number of the vessel, value of the goods, gross and net weights of the goods and the reference no. of the l/c have been sent to our bank’s fax no:+33 222 600 50 10 within 2 days after shipment date for information purposes.(fax report and shipment details have been attached to this doc.)
Shipping Marks Mentioned Under Field 47-A: Additional Conditions
Shipping documents must show the name and address of the buyer and the letter of credit number, packages must be marked with shipping marks and buyer’s reference. Beneficiary’s certificate stating the above has been complied with must be presented.
The letter of credit number, Form “M” number and BA no must be mentioned on all shipping documents relating to this letter of credit.
What Does The Letter of Credit Rules State in Regards to The Shipping Marks?
Current letter of credit rules are silent in regards to shipping marks.
We can find related explanations in ISBP 745 between articles A32 to A34 under the heading of “Shipping Marks”.
ISBP 745 article A32 states that “When a credit specifies the details of a shipping mark, documents mentioning the shipping mark are to show those details. The data in a shipping mark indicated on a document need not be in the same sequence as those shown in the credit or in any other stipulated document.”
ISBP 745 article A33 explains that “A shipping mark indicated on a document may show data in excess of what would normally be considered a “shipping mark”, or which is specified in the credit as a “shipping mark”, by the addition of information such as, but not limited to, the type of goods, warnings concerning the handling of fragile goods or net and gross weight of the goods.”
ISBP 745 article A34 states that;
a. Transport documents covering containerized goods often only show a container number, with or without a seal number, under the heading “Shipping mark” or similar. Other documents that show a more detailed marking will not be in conflict for that reason.
b. The fact that some documents show additional information as mentioned in paragraphs A33) and A34) (a), while others do not, will not be regarded as a conflict of data under UCP 600 sub‐article 14 (d).
Suggestions For The Exporters Who Must Deal With The Shipping Marks:
Shipping marks are a very loose term. As a result any symbol, word or number can be considered as a shipping mark in export and import transactions.
All shipping documents could contain one or more shipping marks except the bill of exchange. Only letter of credit number can be written on in the face of the bill of exchange. Each packing unit may contain different types of shipping marks. Shipping marks used for the carton boxes may differ from the shipping marks of the container.
If you are dealing with a letter of credit, you must make sure that you can supply the required documents as per letter of credit terms and conditions including shipping marks. Remember some documents will be created by official institutions according to inflexible bureaucratic methods. You may not be able to put a shipping mark on one of these documents.
Container number is a unique reference number assigned to a freight container so that the container can be traced and tracked by the government authorities, carriers, shippers and freight forwarders throughout its journey.
Determining the correct container number which belongs to a specific shipment is very important to the custom authorities and other governmental institutions.
As a result a container number will be mentioned on several documents including commercial invoice, consular invoice, bill of lading, packing list, health certificate and other shipping documents.(1)
In a commercial letter of credit transaction the container number indicated on the packing list and bill of lading must not conflict with each other.
The mention of a wrong container number on the packing list, which is inconsistent with the container number indicated on the bill of lading, is a reason for a valid discrepancy and rejection of the presentation.
According to the latest version of letter of credit rules a data in a document must not conflict with, data in that document, any other stipulated document or the credit.
As a result every container number indicated on each document must be identical to one another.
If the issuing bank finds out that the container number indicated on the packing list and bill of lading do not match, then the issuing bank will raise a discrepancy, which is known as packing list and bill of lading show different container number discrepancy.
Discrepancy Example: Container Number on the Packing List is not in Accordance with the Container Number on the Bill Of Lading
A letter of credit has been issued in SWIFT format, subject to UCP latest version, with the following details:
Letter of Credit Conditions
Field 45A: Description of Goods and or Services: 20 mtons of Pure Polyester Powder Coating. Delivery Terms: CIF Port Metro Vancouver, Canada Incoterms 2010.
Field 46A: Documents Required:
Signed commercial invoice in triplicate issued by the beneficiary
Certificate of origin issued by a local chamber of commerce or any official trade organization confirming that goods are new brand and first hand and originated in China plus 3 copies.
Packing list in triplicate indicating quantity and gross weight, net weight, vessel name and container number.
Full set clean on board port-to-port marine bill of lading marked freight prepaid issued or endorsed to the issuing bank’s order in 3 originals and 3 non-negotiable copies.
The beneficiary presented a Packing List as shown on the below picture.
Packing List
Discrepancy : Packing list states “Container Number: MSCU 120870-8”. On the other hand bill of lading states “Container Number: CMAC 400300-6”. Packing list and bill of lading are indicating different container numbers.
Reason for Discrepancy: The mention of wrong container number on the packing list which is inconsistent with the container number indicated on the bill of lading is a reason for discrepancy and rejection of the presentation.
