Consignment: bill of lading CMR and Incoterms

Consignment is the warehouse's last contact with the goods — and the place where errors become most expensive because from here the goods are out of your hands. Good consignment is three things: the goods are packed and marked correctly the papers match the contents and responsibility is clearly placed. The first two are craftsmanship; the third is law which warehouse workers encounter through bills of lading and delivery clauses.

§Packing slip and freight bill — two different documents

The packing slip is the trade document: it tells the receiver what the shipment contains — item numbers, quantities, and order reference — so the receiving check can verify the delivery against the order. The freight bill is the transport document: an agreement and receipt between sender and carrier, describing the goods (number of packages, weight, marking), pickup and delivery address, and any instructions. The driver's signature at pickup confirms that the goods were received in the stated condition and quantity — therefore the number of packages on the freight bill must always match what is actually loaded.

§CMR: the international road freight bill

For international road transport, CMR Convention applies which in Denmark has been implemented by CMR law. It prescribes a CMR consignment note which is issued in three original copies: one to the sender one that follows the goods to the recipient and one to the carrier. CMR rules also set the carrier's responsibility for loss and damage as well as deadlines for complaints. For the warehouse, this especially means one thing: never sign off cleanly for damaged goods. If the recipient sees visible damage upon delivery a written reservation must be made on the consignment note immediately — otherwise the possibility of compensation is greatly weakened.

§Incoterms 2020: who does what, who pays, who bears the risk

Incoterms are the International Chamber of Commerce (ICC) standard clauses for delivery conditions — the current version, Incoterms 2020, contains 11 clauses. Each clause distributes three things between seller and buyer: the tasks (who books and pays for transport), the costs and the transfer of risk. For the warehouse worker, the clause directly determines whether your ramp should just prepare the goods or whether your company also bears responsibility all the way to the customer's gate.

For sea transport there are also the classic clauses FAS, FOB, CFR and CIF, which should only be used when the goods actually sail as conventional sea freight. The point for the warehouse is not to know all 11 by heart, but to know that the clause on the order determines who books the transport and when the risk changes hands — and therefore also how thorough the documentation of dispatch time and condition must be.

§Marking and final checks

Before the end of 2020

• 01Følgeseddel = handlens indhold; fragtbrev = transportens aftale og kvittering
• 02CMR waybill in three originals for international road transport
• 03NEVER sign off cleanly for visibly damaged goods — take written reservation
• 04The Incoterms 2020 clause determines tasks, costs and risk transfer
• 05SSCC pallet label and correct hazardous goods marking before the gate closes

“The goods may be perfectly packaged — but if the paper is wrong, the delivery is too.”

— Forwarders and customs agents