Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

TLIL5063A Mapping and Delivery Guide
Review contracts, insurance, risk and liability in the international freight forwarding context

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency TLIL5063A - Review contracts, insurance, risk and liability in the international freight forwarding context
Description This unit involves the skills and knowledge required to review contracts, insurance, risk and liability in the international freight forwarding context. This includes examining an international freight forwarding sales contract; examining an international freight forwarding service contract; managing risk in international freight forwarding; assisting in organising transport insurance requirements; confirming or organising liability insurance requirements; assisting a customer to make a claim on a transport insurance policy; and making a claim on a liability insurance policy. International freight forwarding covers the importing, exporting and transiting of freight. There are no specific licensing or certification requirements applicable to this unit.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit was developed for persons involved in reviewing contracts, insurance, risk and liability as part of advanced international freight forwarding functions.Typically these individuals must demonstrate the ability to work independently or as part of a team under direct and/or indirect supervision, perform detailed analyses, use discretion and judgement, and take responsibility for the quality of their outputs.All activities are carried out in accordance with relevant organisational policy and procedures, as well as national and global codes of practice and regulations applicable to international freight forwarding.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites Not Applicable
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Examine an international freight forwarding sales contract
  • The sales contact (or evidence of the sales contract) is reviewed and the relevant Incoterm and other factors relevant to the forwarder are confirmed and used as the basis for the apportionment of costs throughout the forwarding activities
  • The sales contract is used to determine project deadlines as well as the respective responsibilities, rights and liabilities between the buyer and seller in any given transaction
       
Element: Examine an international freight forwarding service contract
  • The service contract and supporting documents are reviewed and confirmed
  • The service contract and supporting documents are interpreted and the required action is taken
       
Element: Manage risk in international freight forwarding
  • The risks associated with a planned international freight forwarding activity are assessed using appropriate risk analysis techniques
  • Suitable strategies for controlling the identified risks are established in consultation with the customer
  • Risk factors are identified and monitored throughout the freight forwarding project
  • Alternative routing and other risk control measures are implemented where justified in the event of critical contingencies that arise before or during the freight transport
  • Checks are made that all conventions for international freight transport are fulfilled
       
Element: Assist in organising insurance requirements for international freight forwarding
  • Insurance requirements for the international freight transport are evaluated as per standard procedures taking into account the critical risk factors in the project
  • Assistance is provided in organising an appropriate policy providing the required cover for the project where required
  • In the event of loss or damage, assistance is provided to the customer to make a claim on the insurance as per the policy requirements and standard procedures
  • All documentation to support an insurance claim is lodged with the insurer as per policy requirements
       
Element: Manage legal liability in an international freight forwarding project
  • Risks of legal liabilities towards customers and third parties as a direct result of an internal mistake or negligence on the part of the forwarder are evaluated using appropriate risk analysis techniques
  • Appropriate liability insurance is confirmed or organised that provides the required cover for the risks involved
  • In the event of loss or damage directly attributable to a forwarder's mistake or an act of negligence, a claim is made on the insurance as per the policy requirements and standard procedures
  • All documentation to support an insurance claim is lodged with the insurer as per policy requirements
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of:

examining an international freight forwarding sales contract

examining an international freight forwarding service contract

managing risk in an international freight forwarding project

assisting in organising transport insurance requirements

confirming or organising liability insurance requirements

making a claim on a transport or liability insurance policy

Context of and specific resources for assessment

Performance is demonstrated consistently over a period of time and in a suitable range of contexts

Resources for assessment include:

a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or

access to an appropriate range of relevant operational situations in the workplace

In both real and simulated environments, access is required to:

relevant and appropriate materials and equipment, and

applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

Method of assessment

Assessment of this unit must be undertaken by a registered training organisation

As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests

Practical assessment must occur:

through activities in an appropriately simulated environment at the registered training organisation, and/or

in an appropriate range of situations in the workplace

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

REQUIRED KNOWLEDGE AND SKILLS

This describes the essential knowledge and skills and their level required for this unit.

Required knowledge:

Legal principles and liabilities in international freight transport

Relevant security, safety and environmental procedures, regulations and conventions (including those applicable to the importing, exporting and transiting of goods)

Procedures and protocols for the provision of international freight forwarding services (including those applicable to the importing, exporting and transiting of goods)

Ways of managing legal liability in international freight transport

Basic principles that govern the discipline of law

Law of Contracts as it applies to international freight transport

Definitions, purpose and use of Incoterms and Combiterms

Processes for ensuring compliance with legal requirements

Conventions in international freight transport

Standard trading conditions in international freight transport

Principles of risk management as it applies to international freight forwarding

Ways of managing risk in international freight transport

Ways of managing contingencies in international freight transport including consideration of alternative transport options and anticipation of the 'unexpected'

General elements and principles of insurance policy in international freight transport

Procedures and policies for organising and managing insurance requirements for various types of international freight forwarding projects

Types of liability insurance - their purpose and processes for their organisation, including an understanding of the liability of different parties involved in international freight transport

Types of transport insurance coverage - their purpose and processes and documentation for their organisation

The use of the 'general average' in insurance policy and practice

Duties of the freight forwarder in the event of damage to goods in transit

Processes for making insurance claims

Sources of information and documentation needed when providing freight forwarding services

Principles and techniques of closed-loop communication in which checks are made to confirm that messages and responses being given or received are unambiguous and are correctly and clearly understood

Typical problems that can occur when organising transport or liability insurance, and related appropriate action that can be taken to prevent or resolve them

Understanding of the principles of quality assurance and customer service standards, policies and procedures as they apply in the international freight forwarding industry

Required skills:

Communicate effectively with others when reviewing international freight forwarding contracts, insurance, risk and legal liability, including unambiguous closed-loop communication in which checks are made to confirm that messages and responses are correctly and clearly understood (particularly in situations where communication is with a person for whom English is not the native language)

Read and interpret instructions, procedures, and other information relevant to sales contracts, insurance, risk and legal liability

Interpret and follow operational instructions and prioritise work

Complete documentation related to contracts, insurance, risk and legal liability, including data entry to a computer system

Operate information and communication technology to required protocol

Work collaboratively with others when reviewing international freight forwarding contracts, insurance, risk and legal liability

Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interactions with others

Promptly report and/or rectify any identified problems that may arise when reviewing international freight forwarding contracts, insurance, risk and legal liability in accordance with regulatory requirements and workplace procedures

Implement contingency plans for unanticipated situations that may occur when reviewing international freight forwarding contracts, insurance, risk and legal liability

Monitor work activities in terms of planned schedule

Apply relevant codes of practice and legislative requirements

Modify activities depending on differing operational contingencies, risk situations and environments

Work systematically with required attention to detail without injury to self or others, or damage to goods or equipment

Operate and adapt to differences in equipment in accordance with standard operating procedures

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance.

International freight forwarding includes services related to:

the importing of goods

the exporting of goods

the transiting of goods

Provisions and stipulations that should be in a sales contract include:

detailed description of the goods

precise quantity of the goods and tolerances where appropriate

exact price of the goods

final date for shipment with schedules for continuing contracts

the seller's delivery point

transport mode

discharge port, airport or transport terminal and the final destination

the correct Incoterm for the transaction

special packaging, load restraint and stowing requirements for the cargo

documents required and responsibility for their preparation and provision

Force Majeure clause

arbitration clause

law and jurisdiction clause

payment terms

buyer requires pre-shipment inspection of the cargo by surveyors

Supporting documents to a service contract may include but are not limited to:

Shipper's Letter of Instruction (SLI)

invoice

insurance certificate

regulatory requirements (including permit issuing requirements) in both importing and exporting countries

Risks that may occur during international freight forwarding activities include but are not limited to:

damage to the cargo

transport accident

breaches of security

theft and fraud

terrorism

revolution

war

political instability

strikes

lockouts

work slowdowns

natural disasters

climate

port congestion

overbooked carrier

Ways of controlling risks that may occur during an international freight forwarding project include but are not limited to:

keeping up to date with geopolitical and industrial developments

ensuring there are no regulatory restrictions or prohibitions on the export, import or transit of the cargo

monitoring weather conditions

being aware of the impact of impending or current natural disasters on freight transport routes

making provision for suitable alternative routes

ensuring packaging, packing and stowage is appropriate for the mode(s) of transport

ensuring that security arrangements are adequate

ensuring that insurance cover is sufficient for the risks involved

Types of cargo insurance policies may include:

single shipment policy

annual policy

open policy

Sources of information required to perform international freight forwarding functions may include:

websites of key international and Australian organisations such as FIATA, IMO, ICAO, IATA, CASA, AMSA, Australian Customs and Border Protection Service, AQIS, government agencies responsible for transport security etc.

key reference publications such as Incoterms, FIATA forms and documents, ICC publications, and other manuals, texts and handbooks on freight forwarding, international trade and related topics etc.

Parameters of freight forwarding services relevant to customer requirements may include:

standard procedures for the international forwarding of freight

type of transport modes

various consignment methods

relevant legislative requirements

required import/export documentation and requirements

transport security requirements

insurance requirements

service costs

payment requirements and procedures

fiduciary and legal responsibilities of either party

Consultative processes may involve:

customers

international and domestic agents and suppliers,

insurance brokers

representatives of insurance companies

relevant regulatory authorities and institutions

other employees and supervisors

management

freight forwarding specialists

other professional or technical staff

Depending on the type of organisation concerned and the local terminology used, workplace procedures may include:

company procedures

enterprise procedures

organisational procedures

established procedures

Communications systems may involve:

face-to-face conversation

telephone including fixed, mobile and IP phones

fax

email

electronic data transfer of information (EDI)

mail

Information/documents may include but are not limited to:

Australian and international regulations, conventions and codes of practice for the international forwarding of freight

summaries and definitions of Incoterms and Combiterms

customers' instructions and transport requirements

workplace standard operating procedures and policies

sales contracts

standard FIATA forms and documentation such as:

a Negotiable Multimodal Transport Bill of Lading (FB/L)

a Non-negotiable Multimodal Transport Waybill (FWB)

a Forwarders Certificate of Receipt (FCR)

a Forwarders Certificate of Transport (FCT)

a Forwarders Warehouse Receipt (FWR)

a Forwarders Forwarding Instructions (FFI)

a Shippers Declaration for the Transport of Dangerous Goods (SDT)

a Shippers Intermodal Weight Certification (SIWC)

an Original Bill of Lading (OB/L)

a Master Air Waybill (MAWB)

a House Bill of Lading (HBL)

a House Air Waybill (HAWB)

Multimodal Transport Bill of Lading (MTB/L)

insurance policies

insurance certificates

insurance claim forms

cargo manifests

pre-advice and pre-alert documents

suppliers advice for the handling, transport and storage of goods and materials

operations manuals, job specifications and procedures and induction documentation

freight forwarding competency standards and training materials

Australian and international standards, criteria and certification requirements

data obtained through communications technology equipment and oral, aural or signed communications

freight forwarder company's quality assurance standards and procedures

emergency procedures

Applicable regulations and legislation may include:

Australian and international regulations, conventions and codes of practice for the international forwarding of freight

relevant regulations for the import and export of cargo

Australian and international standards and certification requirements

relevant regulations pertaining to international trading and financial transactions

relevant Australian and international transport security and safety legislation

relevant Australian and international environmental protection legislation

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
The sales contact (or evidence of the sales contract) is reviewed and the relevant Incoterm and other factors relevant to the forwarder are confirmed and used as the basis for the apportionment of costs throughout the forwarding activities 
The sales contract is used to determine project deadlines as well as the respective responsibilities, rights and liabilities between the buyer and seller in any given transaction 
The service contract and supporting documents are reviewed and confirmed 
The service contract and supporting documents are interpreted and the required action is taken 
The risks associated with a planned international freight forwarding activity are assessed using appropriate risk analysis techniques 
Suitable strategies for controlling the identified risks are established in consultation with the customer 
Risk factors are identified and monitored throughout the freight forwarding project 
Alternative routing and other risk control measures are implemented where justified in the event of critical contingencies that arise before or during the freight transport 
Checks are made that all conventions for international freight transport are fulfilled 
Insurance requirements for the international freight transport are evaluated as per standard procedures taking into account the critical risk factors in the project 
Assistance is provided in organising an appropriate policy providing the required cover for the project where required 
In the event of loss or damage, assistance is provided to the customer to make a claim on the insurance as per the policy requirements and standard procedures 
All documentation to support an insurance claim is lodged with the insurer as per policy requirements 
Risks of legal liabilities towards customers and third parties as a direct result of an internal mistake or negligence on the part of the forwarder are evaluated using appropriate risk analysis techniques 
Appropriate liability insurance is confirmed or organised that provides the required cover for the risks involved 
In the event of loss or damage directly attributable to a forwarder's mistake or an act of negligence, a claim is made on the insurance as per the policy requirements and standard procedures 
All documentation to support an insurance claim is lodged with the insurer as per policy requirements 

Forms

Assessment Cover Sheet

TLIL5063A - Review contracts, insurance, risk and liability in the international freight forwarding context
Assessment task 1: [title]

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I declare that the assessment tasks submitted for this unit are my own work.

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Result: Competent Not yet competent

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Assessment Record Sheet

TLIL5063A - Review contracts, insurance, risk and liability in the international freight forwarding context

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Assessment task 1: [title] Result: Competent Not yet competent

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