international transport ppt summary

7/28/2019 International Transport PPT Summary

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INTERNATIONAL TRANSPORTS AND FORWARDING

Lecture notes

CEZAR COJOCARIU, Ph.D

Transport (largo sensu) = economic branch; its main function is the movement of goods andtravelers in space; it materializes the connections among all the other economic

branches, it connects all the administrative areas, cities, towns of a state territory as well asthose among different countries using, besides the infrastructure, terrestrial, maritime and air means of

transport and also cables and pipelines systems

Transport (stricto sensu) = economic process that realizes the physical movement of the goods fromthe production place to the consumption area

Economical aspects: Production place is not the same (geographically) with the consumption place Resources are never equally distributed over territories It diminishes economical isolation It helps the goods and services exchange (nationally and internationally) It helps to balance (territorially) the demand and offer, nationally and internationally, with its result, the price

stabilization

It optimizes the location of production entities in connection with the territories where resources (raw materials)come from.

In modern times transport must be regarded as a dynamic, coherent system, made out of specific technicalmeans (mean of transport), communication channels (infrastructure), skilled personnel, related services

technologiessystem that ensures the transfer of goods from production, via the flow of goods, to consumption

Particularities of international transport: This is the service that materializes the international trade of a country with its other partners It continues the internal production process into the world economic circuit => a part of the internal product it is

materialized on foreign markets

The transport costs and expenses are directly participating in establishing the international prices of goods International transport + marketing => logistics = the aggregate of processes, activities necessary to technically,

commercially and legally convey the goods (resource phase / manufactured product phase) on the whole chain

from the producer to the end user

The demand of international transport services is directly influenced by the weight / measurement of the exportand import goods


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The demand of international transport services is not flexible in relation with the transport services priceevolution => if worldwide, the price of transport services goes up faster than the price of the goods,

the increases in the transport price will be supported by those countries whose imports and exports are

not flexible

The demand of international transport services is distinct by mode of transport, based on goods nature The demand of international transport services is always changing, covering the dynamics and trends of the

commercial flows

The price of transport services (long term) is increasing continuouslyROAD TRANSPORT

Definition: subsystem belonging to international transport that ensures the space displacement of goods fromproduction to consumption, using road vehicles

Motor vehicle = self-propelling road carriage, trucks, tractors Towed vehicle = trailer Truck = tractor + trailer (chassis) Characteristics: Great mobility (trucks do not depend on specialized infrastructure items, versus rail transport) Ensure door-to-door delivery (additional transshipment and handling operations and, consequently charges are

avoided)

High technical and commercial speed Could perform consecutive deliveries in accordance with a fixed schedule => lower inventory, decrease of

excessive storage, diminished risk of goods damage

Trucks can easily change routes Road transport requires less specific investments Transport capacitylower than rail and maritime transport Specific costs per ton/kmhigher than those for other means of transport Maximum efficiency for short and medium distances Tendency to increase the power and loading capacity of road vehicles Greater specialization of vehicles based on the nature of the transported goods Higher ecological awareness and concern to build fuel efficient vehicles / environmentally friendly


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Elements: The road Road infrastructure = all the interconnected public roads covering the territory of a country; national road

infrastructures are connected among themselves

Road classification:. Public roads: Public interest (highways, motorways, national roads) Local interest (county roads, village roads, street network)2. Exploitation roads (farming, foresting, etc) The vehicle (truck) Homologation of vehiclesNational Vehicle Register Vehicle registration The driver Road freight commercial vehicles types: The actual trend is to adapt the commercial vehicle to the defining cargo features (Annex 1)

P&O Ferrymasters Trailer Prelata

(Annex 2)

P&O Ferrymasters Mega-Trailer

P&O Ferrymasters Trailer FRIGO

P&O FerrymastersAtelaj cu container

open-side pentru transport multimodal

International rules, regulations, conventions / institutions 1948GenevaI.R.U. (International Road Transport Union)

=> Road liberties of Geneva

Elaboration C.M.R. document (International Road Transport Contract) in accordance with Geneva International

Road Cargo Transport Convention (Annex 3)

A.D.R. Convention (concerning transportation of hazardous cargoes)

Transfrigroute EuropeInternational Association for perishable goods road transport


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1959GenevaT.I.R.Customs convention concerning goods carriage by road under T.I.R. Carnet (Annex 4Annex 5) (it gives the road carriers customs advantages that facilitate the international transit of goods loaded

on trucks under customs seals via border points)

The vehicle (truck) moving under a T.I.R. Carnet is not physically controlled by the customs inspectors when

transiting border points (there is only a documentary control) => reduced transport time, reduced transport

handling charges, reduces damage risk for goods

The T.I.R. Carnet exempts road carriers from depositing customs warrantiesin transit via different countries

The T.I.R. Carnet is issued for only one voyage (trip)

The number of T.I.R. Carnet volets (pages) is bigger with 2 (two) than the number of transit border points

It is compulsory to insert in the T.I.R. Carnet the itinerary of the truck; the driver / truck must cross all the

border points mentioned in the itinerary

The T.I.R. Carnet takes over entirely the data concerning shipper, consignee, cargo, as mentioned in the C.M.R.

documents

The T.I.R. Carnet is issued by I.R.U. Geneva and is distributed to the member countries of the T.I.R. Customs

Convention care of national warrant T.I.R. associations (in Romania: ARTRI and UNTRR)

Once the EU commercial space enlarged in 2004 and 2007 with the new members, the importance and usage of

the T.I.R. Carnet went down; still it is often used for transports originating from EU to ex-USSR space, Asia

and Middle East (and backwards)

The International Road Carriage Contract: The C.M.R. letter = the contract

It has 3 originals, all signed / stamped by both the carrier and the shipper

The first original is remitted to the shipperafter actual stuffing of the cargo into the trucks

The second original travels to the destination together with the vehicle / cargo

Third original travels with the driver to the final destination and must be signed / stamped by the consignee

(receiver)

Provisions, clauses and elements of the C.M.R. document:Serial number of the C.M.R. document

Date and place the C.M.R. document is issued

Shipper (sender)full style

Consignee (receiver)full style

Carrierfull style


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Successive carriersif needed

The vehicle: type, tonnage, plates number, crew

Date and place of loading

Destinationplace the cargo is required to be delivered

Annex documents (certificate of origin, quality certificate, conformity certificate, packing lists, commercialinvoices, etc)

Commercial denomination of goods and package

In case hazardous cargo is carriedgoods denomination as per A.D.R. code, goods classification as per A.D.R.

code

Number of collis, marks and numbers, quantity

Gross weight

Measurement

Shippers (senders) instructions customs and official formalities

Freight paid to

Amounts: freight, reductions / growths, dues, fees, others, total amount

Cash on delivery

The provision stating the carriage is under C.M.R. Convention regime and no other regulation prevails

Shippers (senders) signature and stamp

Carriers signature and stamp

Consignees (receivers) signature and stamp

Carriers remarks / observations

Under certain circumstances the C.M.R. document

could also contain provisions such as:

Transshipment forbidden

Declared value of goods

Shippers (senders) instructions for the carrier with respect to cargo insurance

The term the carriage must be performed within


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If the C.M.R. contract (document) has no remarks / reserves inserted by the carrier, it is presumed that thegoods and package were in good condition at the time they were loaded on board the truck => the carrier is

responsible for any / all damage to the goods / package during the carriage

The alteration of C.M.R. contract:Can be done by either the shipper (sender) or the consignee (receiver)who has the right to dispose of the

cargo in accordance with the delivery terms as mentioned in the commercial contract

It might consist of:

To stop the transport To change the destination (delivery place) To change the consignee (receiver) Obstacles in carriage and release of goods Road carrier liability For total / partial loss, for damagebetween the moment the cargo is taken over by the carrier and the moment

the cargo is released to the consignee (receiver)

For delays in delivery / release of cargo* Limits of liability

* Exoneration

* The carrier compensates the shipper (sender) or the consignee (receive) for the total or partial loss with a

maximum amount that matches the loss cargo value; furthermore the carrier reimburses the shipper / consigneewith the freight (cost of haulage) and any other amounts prepaid, connected with the freight

* Maximum quantum of compensation SDR 8.33/1 kg gross weight of lost cargo

Prices in international road carriage; factors that determine the level of prices (freight):Commercial flows

Availability of specialized tonnage (transport capacity)

Distance

Cargo (goods) category / features

Existence of return cargo

Specific costs: fuel, maintenance, depreciation, lease, wages, road dues, etc

AIR TRANSPORT


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Definition: international air transport means the physical displacement of goods between two specialized airterminals (airports) from two different states using a specific mean of transportairplane

Characteristics: Usually the air transport is a part of an inter-modal (combined) transport => part of the so called door-to-door

shipments

It is the fastest modality to transport goods => it makes possible the international trade with perishable goodswhich, due to their characteristics, could had been sold only in the proximity of the

production area (fresh flowers, fresh fruits, fresh vegetables, newspapers, one-day-old-poultry)

It is highly efficient for medium and long range (long rage > 10000 km, short range ~ 3500 km) It is the most costly modality of transport (air carriers could obtain maximum price by committing to time limits

in performing the transport)

The airplane versatility => airplanes could be converted to perform cargo transport, passenger transport, mixttransport, postal transport, fast courier transport

High flight frequency Fixed timetable Usage of airborne containers => smaller package costs Smaller damage / loss risks => smaller insurance costs Current trends: The increase of the technical and commercial speed (~960 km/h) The increase of the loading capacity (Boeing 747 Jumbo, ~115t) The increase of the operational capacity of the air terminals New technologiesIT controlled procedures for loading, discharging and transshipment operations, usage of

track-and-trace systems

Transition from the paper transport documents (AWB) to electronic format transport documents (e-AWB)Antonov An-225Mriya

General characteristics

Crew: 6

Length: 84 m (275 ft 7 in)

Wingspan: 88.4 m (290 ft 0 in)


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Height: 18.1 m (59 ft 5 in)

Wing area: 905 m2 (9,740 sq ft)

Aspect ratio: 8.6

Empty weight: 285,000 kg (628,317 lb)

Max takeoff weight: 640,000 kg (1,410,958 lb)

Fuel capacity: 300000 kg

Cargo holdvolume 1,300m3, length 43.35m, width 6.4m, height 4.4m

Powerplant: 6 ZMKB Progress D-18 turbofans, 229.5 kN (51,600 lbf) thrust each

747 Dreamlifter

Airborne trafficusage modalities: Liner services:

Fixed routepublished information

Fixed timetablepublished information

Liners tariffspublished information

Charter services: spot transactions Registration of civil airplanes (aircrafts)Ministry of TransportsUnique Register of Civil Aircrafts Air terminals: Aerodrome = a certain ground limited surface which comprises flight strips, air traffic installations, buildings

all used for maneuvers, take-offs and landings of the aircrafts

Airport = aerodrome which is opened for commercial operations Air-station = part of an airport, specialized in either cargo traffic or passenger traffic

* Cargo air-station comprises customs supervised warehouses (bonded warehouses), loading / discharging

ramps, handling / sorting equipment, etc

International air transport conventions and organizations: I.C.A.O = International Civil Air Organization, founded in 1944 during the Chicago Conference

Its aim is the worldwide development of civil aviation, the fight against unreasonable competition, the

assurance of equal rights and treatment for all member states

I.A.T.A. = International Air Transport Associationfounded in 1945 in Havana / CubaMembers: international airline companies


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Goals:

Promotion of safe, scheduled and economic air traffic Cooperation among all members, cooperation with other international bodies (ICAO, FIATA, CEE/ONU)

IATAThree components = 3 Traffic Conferences (one for each of the 3 traffic areas)

Area 1 = North America, South America

Area 2 = Europe, European Russia, Africa, Middle East including Iran Area 3 = Asia, Australia, New Zealand, and Pacific Ocean Islands

* Traffic Conferences take decisions with respect to transport tariffs that must be used, shipping conditions, etc

(TACT = The Air Cargo Tariff and Rules)

Air Waybill = AWBThe standard form of the International Air Carriage Contract was created by the IATA

specialized commission, based on the 1929 Warsaw Convention, Hague Protocol (1955, 1970), and Montreal

Convention (1999)

F.I.A.T.A. =Federation Internationale des Associations de Transitaires et Assimiles (International Federationof Fowarders Organizations), founded in 1926, in Wien

Represents the freight forwarding organizations interests in cooperation with other international organizations

and government bodies

Standardizes the international shipping orders and transport documents

Together with I.A.TA. has developed a common form for electronic data interchange (EDI) in order to

implement the e-AWB system

International Air Transport Contract Air Waybill = International Air Transport Contract (Annex 6) It is issued in 3 originals based on the Shippers Letter of Instructions

First originalfor carrieris signed by the shipper (sender)

Second originalfor consigneeis signed both by the shipper and the carrier, travels together with the cargo

Third originalfor shipperis signed by the carrier immediately after the cargo is taken over for transportation

The AWB set includes the delivery receipt, copies for customs, for the airport of destination, for the carrier andits agents

Provisions, clauses and elements of the Air Waybill (Annex 7): Serial number of the AWB Shipper (sender)full style


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Consignee (receiver)full style Carrier or its agentfull style Airport of departure Airport of destination Flight details Consecutive carriersif this is the case one should mention on the AWB what flight sector is assigned to each

carrier

Provision that indicates the fact that the carriage is only subject to the conditions stipulated in the WarsawConvention and its latter amendments (mentioned on the reverse)

Instructions with regard to the cargo handling Customs regime of the cargo Description of cargo (commercial denomination, weight, dimensions and measurements, number of

collis, class tariff as per TACT, chargeable weight)

Airfreight rate Other taxes, fees, dues Currency Optional information: declared value of goodsfor carriage and customs formalities The total amount of airfreight and of all additional taxes, fees, dues, and the paying party (in accordance with

the delivery terms)

Place and date of issue The general transport conditions of the air carriage, as defined by I.A.T.A. are inserted on the reverse of the

AWB

The alteration of the Air Waybill (AWB) The shipper (sender) has the right to dispose of the cargo (he can stop the cargo in the airport of departure, in an

airport of call, or in the airport of destination or he can change the receiver or he can requests the cargo to be

returned)provided that such a step should not create any prejudice to the carrier or to other shippers and based

on the coverage of the extra-costs

Air carrier liability is limited to maximum SDR 19/kg gross weight of damaged or lost cargo (according to1999 Montreal Convention)

Elements of influence for airfreight:


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Gross weight Measurement Distance Transport area (Traffic Conference) Package of cargo (loose carton or palletized) Transport regime (liner or charter) Fuel consumption / price Level of airport taxes, dues, fees Airfreight payment terms: It is done in accordance with the delivery terms, as mentioned in the commercial contract:

Charges prepaid

Charges collect

Cash on delivery (C.O.D.)it implies not only the collection of airfreight, but as well, the collection of goods

value

Consolidated air carriage: Consolidated air shipments is a classic method used by the forwarding companies (3PL operators) by which the

transport demand for cargo parties with the same destination are syndicated with the purpose of efficient usage

of the transport capacity and consistent decrease of transport costs

House Air Waybill (HAWB) = internal transport document based on the shipping instructions of each shipment

(shipper, consignee, etc as per the commercial contract)

Master Air Waybill (MAWB) = transport document which comprises all the shipment with the same destination

and which bears the shipper as the forwarding company that consolidates all the cargo shipments and as

consignee it bears the forwarding company which is deconsolidating the shipments in the airport of destination

The shipper and the consignee could be identical in the case of global operators

Consolidated manifest = the specification of all shipments consolidated under the MAWB

Express Courier Service (Fast Courier Service) Airfreight service for consolidated shipments offered by logistics integrators The rendered services are only door-to-door type; the transit times are impressively short (e.g.: 10AM

delivery)

It is always based on inter-modal transportation (road / airborne / road)


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* Deck line

* Reserve buoyancy (total reserve of buoyancy, low buoyancy, stability reserve, etc)

* Trim (draft difference, trim difference, longitudinal trim)

* List

* Band (banding)

* Draft (water draught)

Superstructure (erection): full superstructure, closed bridge house, bridge work, weather tight superstructure

* Forecastle

* Aftercastle

. Machines (engines)propel the shipb. Navigation equipment

Specialized equipment (communication, GPS, etc)

Rudder (helm): middle rudder, rudder propeller, trimming plane, etc

Mooring equipment (anchor equipment)

Rescue equipment (long rage life saving)

Loading / discharging equipment: winches, loading masts (twin mast, spare mast, foremast, aftermast, etc),

derricks (discharge boom, loading boom, etc), guy derricks, hooks

International load waterlines of the vessels Maximum draft (draft keel) Freeboard mark (load-line mark) Plimsoll disk Summer load line

Freeboard

Ships class. Registers of shipping Registers of shipping classify ships (vessels) in accordance with international conventions provisions and, as

well, with national legislations; they issue class certificates for every ship

Lloyds Register of Shipping

Germanischer Lloyd


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American Bureau of Shipping

Nippon Kaiji Kyokai

Le Bureau Veritas

Registrul Naval Roman

Ships Tonnage

Register ton = conventional unit that expresses de measurement of the closed spaces of the vessel (de nationalshipping register measures the ships tonnage, based on the national legislation rules) => the shipping register

issues the ships tonnage certificate

Gross register ton It measures all closed spaces of the vessel 1 gross register ton = 2.83 cbm (100 cubic feet) Net register ton It measures only the closed spaces of the vessel that produce freight (holds, cargo tanks, fore-peak, after-peak,

shelter deck)

Port fees, channel fees are calculated based on the gross and net register tonnage of the vessel Displacement tonnage = the weight of the water displaced by the vessel at the given draft

* Light displacementempty ship

* Full load displacementvessel armed and loaded at full capacity

Deadweight tonnage (displacement) = the ships capacity to carry a certain quantity of cargo measured inweight units (1 long ton = 1016.5 kg)

* The deadweight tonnage includes, besides the cargos weight, the weight of the bunker and provisions (water

and food supply), materials, ballast water

* Deadweight cargo capacity = the difference between the gross displacement and the net one

Cargo cubic capacity = the measurement of the closed spaces of the vessel that could carry cargo* It is used for cargo with big volume and low weight

* It is differently calculated for bulk cargo and for packed one (bulk CCC 8-10% > packed CCC)

Ships classification. a. Tankersused for liquid cargo transport

Oil tankers


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Liquid food tankers

Liquid chemicals tankers

Gas tankers (liquid gas tankers)

* Single deckers

* Big / very big transport capacity

* Very big pumping capacity per hour

* Auxiliary cooling installations

* Ullage (the supplementary capacity of the tank in case the liquid products loaded in the tank are dilating)

. b. Dry cargo vesselsBulk carriers

* Specialized vessels for the transport of mass cargo (ores, coal, coke, bauxite, cereals, bulk sugar, bulkconcrete, bulk fertilizers, etc)

* Bulk ore carriersingle decker vessels

self-trimming holds

. c. Combined carriersvessels that could transport simultaneously bulk and liquid cargoOre-Oil vessels (O.O.)

Ore-Bulk-Oil vessels (O.B.O.)

* Self-trimming holds

* Port tanks and starboard tanks

* Pumping installations and loading / discharging equipment

1. d. Special vessels

Reefer vessels

Trawlers

Container vessels

* LO-LO type vessels (Lift on / Lift off)

LASH vessels (LASH = Lighter Aboard Ship)

* Used for intermodal (sea / river) transport

. e. Auxiliary vessels


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Tug boats / tow boats

Dredge boats

Bunker ships

Ice breaker

2.

Loading / discharging criteria

RO-RO type vessels (Roll on / Roll off)

* RO-RO trailer ship

* RO-RO container ship

. LO-LO type vessels (Lift on / Lift off)* Cell container ship

. LASH type vessels (Lighter Aboard Ship)* Barge-carrying ship

. Ferry type vessels ( RO-RO system)* Wagon-carrying ship (ferryboat)

Commercial ships registration; convenience flags Registration of commercial vessels is done by the Register of Shipping of each country which issues the

Certificate of Registration

From the legal standpoint, a vessel sailing in freewaters is considered to be a territorial extension of the countrywhose flag the ship is hoisted

Unregistered vessel = pirate vessel Convenience flags = fiscal paradises (Liberia, Panama, Cyprus, Honduras, Somalia, Costa Rica, etc) Maritime routes Cabotage (coast navigation) routes - between two ports on the same coast:

Home trade (Constanta / Mangalia)

International cabotage (Constanta / Varna)

Short sea trade (ports located in the same seaMidia / Constanta)

Long sea trade (ports located in different seas, same countryCharleston / Los Angeles)

International sea routes


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International ocean routes International navigation channels:

Suez

Panama

Corint

Kiel

Commercial ports Sea ports

= the main element of the maritime transport infrastructure

= economic entity with complex commercial and transport functions (loading, discharging, warehousing,

processing, customs operations, administrative activities, ecologic activities, etc);

they are located in natural / artificial protected area that could ensure sailing, arrival, manoeuvre of ships under

stolid navigation security conditions

General portsone could operate any type of ship and any kind of cargo (Hong Kong, Singapore, Rotterdam,

Hamburg, New York, Los Angeles, Kobe, Yokohama, Shanghai, etc)

Specialized portsthey operate only certain types of vessels and only certain kind of cargo (Abadan, Basrah

oil tankers; Vitoria, Lulea, Narvik, Vizagapatnamcoal; Baton Rouge, Vancouver, Bahia Blancacereals, etc)

Components of the port:

Water area (inside the port)

Roadstead (roads)the water area situated in front of the port entrance

Hydrotechnical constructions: piers, quays, berths, dams

Mooring equipment and installations, utilities devices, loading / discharging equipment

* Specialized berths / piers

Navigation alternatives. Tramp navigation It does not have a certain, pre-established route It does not have a pre-established schedule Usually it transports break-bulk cargo Usually there is a single charterer


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Each voyage of a tramp vessel is done under one Charter Party (usually) A ship owner could perform tramp navigation using one single vessel => one could find both small ship owners

and big shipping lines

Freight = seaborne freight (charter money / carriage duty)b. Liner navigation Fixed routepublished (other by leaflets or on websites) Fixed schedulepublished (other by leaflets or on websites) More than one charterer Cargo in relatively small but consecutive parties First come / first served principle is always applied

Sea freight = tariffs (published by either leaflets or websites)

Each cargo party is transported under one maritime transport contract = Bill of Lading Usually the loading and discharging operations are done under Liner Terms clause The ship owner has the right of substitution of the liner vessel with an equivalent one The chartering contracts. For tramp navigationCharter Party contracts

b. For liner navigationBill of Lading contracts. Charter Party (Annex 8.18.12) Voyage Charter Party = the contract between the ship owner and the charterer in which the ship owner

undertakes to carry a certain quantity of cargo from the port of loading to the port of discharge in exchange of a

price called freight (sea freight, charter money)

This contract is valid for one voyage (trip) only

Clauses

* Name and characteristics of the vessel

* Full style of contracting parties

* Clause Substitute it stipulates the ship owner right to replace the nominated vessel with an equivalent one

M/S to be nominated

Substitute


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* Navigability of the vessel

* Position of the vessel (it refers to the position of the vessel at the time the Ch/P is signed

* Description of cargo: commercial denomination, weight, volume, pieces, break-bulk / package, etc. (it is

compulsory to mention the measuring unit: long metric ton, short metric ton, cbm)

On-deck cargo

* Dunnage and separation materials

* Port of loading (the Range clause)

* Port of discharge (the Range clause)

* Transmission of orders (the charterer nominates the loading / discharging ports within a certain period of

time)

Geographical rotation clause (the ship must operate in consecutive ports according to its normal

geographical route)

* Safe berth / safe port clause )the port must be a secure one as for the physical-geographical conditions,

operation equipment, social and political conditions, sanitary conditions, etc.)

* As nearly as she can safely get clause

* Always afloat clause

* Always afloat or safely aground clause

* At all times of the tide always afloat clause

* Ready beth clause

* Maximum draft clause

* Lighterage clause (the usage of lighters in order to decrease the ships draft)

* War risk clause

* Freight; payment of freight

* Loading and discharging expenses

* Lay time

* Demurrage (superdemurrage)

* Dispatch money

* Paramount clause (the ship owners rights and immunities)


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. Time Charter Party = maritime transport contract under which the charterer hires the vessel and the crew for acertain period of time (usually for a medium or long term)

The ship owner gives the vessel, the crew and the master to be used by the charterer in exchange of a

price called Hire (Freight => Hire)

Clauses

* The vessel: name, flag, ship owner, gross register tonnage / net register tonnage, cubic capacity, cargo cubiccapacity, engines power, speed, specific fuel (bunker) consumption, in every way fitted for ordinary cargo

service subclause

* Payment of hire (the hire is usually paid in equal installments per period of time); the ship owners right to

withdraw the vessel from the contract unless the hire is duly paid

* Validity period of the Ch/P and the delivery of the vessel to the ship owner => the validity period of the Ch/P

is usually mentioned about

* The charterers right to deliver orders (the geographic limits of the voyages are usually the geographic limits

within which the vessel is insured)

* Clause operational costs structure (the ship owner covers all the costs to maintain the vessel under

navigability status: crews wages, masters wage, food and water supply, other supplies, insurance costs; the

charterer covers all the expenses for bunker, port dues,

fees, pilot fees, channel fees, tug / tow fees, consulate taxes, and all the loading / discharging / operation

costs of the vessel)

* Risk clause: if the cargo or the ship are damagedthe expenses are for the charterer account

. Charter Party by Demise (Bareboat Charter) = the charterer obtains from the ship owner the possession, the use,and the complete control of the hired vessel for a certain period of time in exchange of a price called Hire

* Inside the validity period of the bareboat Ch/P the charterer becomes a tenant ship owner and

undertakes entirely the responsibility to use and sail the ship in good conditions

* The charterer covers entirely the expenses for usage of the vessels (wages, bunker, supplies, docking,

drydocking, repairs, dues, fees, duties, taxes, etc)

* The ship owner covers only the insurance costs concerning the usual (average) risks at sea

* The hire (calculated based on the deadweight tonnage of the vesselX USD / calendar / month / 1 t.d.w) is

paid in advance by the charterer for the next month

* Bareboat Ch/P are usually signed between a ship owner with excess tonnage and another ship owner who

needs to increase his tonnage to cover the demand

. Bill of Lading (Annex 9)


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For tramp navigation, the Bill of Lading (B/L) is a receipt signed by the ship owner / master / its agent, releasedto the sender (Shipper) which proves that the cargo presented by the Shipper was loaded on board the vessel for

a certain destination (On Board B/L) or, the cargo has been taken over by the ship owner for transportation

(Received for Shipment B/L)

For liner navigation the Bill of Lading has two main functions:. Maritime transport contract

b. Title of ownership for the cargo (which gives the B/L the quality of being a negotiable bank document)Clauses:

* Serial number of the B/L

* The number of originals (usually 3/3)

* Shipper (sender)

* Consignee (receiver)

* Notify party (it could be the receiver or his agent)

* Port of Loading

* Port of Discharge

* Vessels name / voyage number

* Description of cargo (commercial denomination of the cargo, package, number of collis / cases / crates /

drums, weight, measurement, marks and numbers)

* Clean On Board clause / Foul B/L

* Received for Shipment

* The clause concerning the freight and other taxes / fees / dues

* Commercial documents that travel together with the cargo (commercial invoice, certificate of origin, quality

certificate, certificate of compliance, etc)

* Place and date of B/L issuance

* Masters signature (the master or the ship owners agent)

Types of Bill of Lading

Straight Bill of Lading Bill of Lading to Bearer (Blank B/L) / To Order Bill of Lading => endorsement procedure Through Bill of Lading / Combined Bill of Ladingusually, it covers a combined (intermodal) transport or a

maritime transport performed by two or more successive carriers (ship owners) => the ship owner who signs a


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Through B/L is responsible for the cargo from the place of receipt until the final destination (the place the cargo

is delivered), so he is responsible not only for maritime but as well for inland transport

Delivery order Bill of Ladingused by merchants (shippers who sell by retail)* The back of the Bill of Lading contains the general transport conditions (sometimes the same as Ch/P)

* Bill of Lading setusually it consists of 3 originals and 7 copies

* Negotiable Bill of Lading

RIVER TRANSPORT

Definition: The transport of cargo on internal river flows with specific means of transportation called barges orlighters gathered in convoys; the ship owner undertakes to carry the cargo from the port of loading to the port of

discharge, as per shippers instructions, in exchange of a price called river freight

The convoy propulsion is done by auxiliary ships (tugboats or towboats)

Self-propelled barges are also used

Characteristics: Together with the maritime transport, it is the cheapest mode of transport River transport ways: Rivers Large rivers River channels River Letter of Transport (River Waybill): It is issued based on the loading order given by the shipper Causes:

Serial number of the river waybill

Shipper

Consignee

Big transport capacity Technical and commercial speedrelatively small Usually used for transportation of bulk cargo with low or average unit value (sand / stones / limestone / marble,

cereals, chemical fertilizers, ores, coal, etc)

Smaller investment costs are required for the infrastructure and its maintenance


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New geographical areas are involved in the commodities circulation It cannot be used under certain weather conditions (drought, frost)

Port of loading

Port of discharge

Serial number of the barge

Serial number of the convoy

Voyage number

Description of cargo: commercial denomination of the cargo, quantity (packageif any), weight, measurement

The freight clausethe freight is paid either by the shipper (sender) when the cargo is actually loaded on board

the barge or by the consignee (receiver) when the discharge of the cargo from the barge is actually finished

The loading / discharging of the cargo on / off the barge is done with the carriers operation equipment (or its

agent) and is paid either by the shipper or the consignee as per the delivery term mentioned in the commercial

contract

Lay time clause

Demurrage clause

Dispatch money clause

Ship owners (carriers) liability to transport the cargo to its destination within the agreed period of time very

important, as river transport is usually only one stretch of a combined (intermodal) transport operation

It differs with the distance, season (summer / winter) and the way of transportupstream or downstreamThe Bratislava Convention (1955-1980) => unique tariffs for cargo transport on the river Danube

RAIL TRANSPORT

Definition: The physical displacement of goods in space, done by rail operators using rail vehicles on the railinfrastructure

The rail operator undertakes to carry a certain cargo from the designated loading railway station to thedestination railway station, within an agreed period of time, in exchange of a price called rail tariff (rail freight)

Rail operators: Public rail operators (national rail authority / enterprise) Private rail operators Rail vehicle = compound mean of transportation: Traction unit = locomotive (Diesel or electric traction)


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Rail unit = wagon / platform (flat wagon)A+B = rolling stock

* Types of wagons:

According to the construction features (Annex 10):

2 axle wagons

3 axle wagons 4 axle wagons Technological / special wagons (with more than 4 axle) Closed (covered) wagons (G,H)basically used to transport sensitive cargo or high value cargo Open wagons (E)they usually transport metal products, wooden products, timber, lumber Platform / flat wagons (R)containers (20, 40), metal constructions, pipes, vehicles Tank wagons (Z)liquid cargo

According to ownership:

Public wagons (owned by the public rail authority => C.F.R., DB, OBB, S.N.C.F., etc) Private wagonsowned by private rail operators or by certain users (Petromidia, Oltchim, Renault /

Automobile Dacia, etc)

Actual tendencyincreased specialization of wagons in accordance with commodities features

Wagons identity:

The wagons serial number is composed of 12 digits, each of them having a certain meaning (Annex 11) Rail infrastructure = an ensemble consisting of all the necessary elements to perform the circulation of the

rolling stock in order to have the rail cargo safely transported, in accordance with the specific rail technologies

and regulations:

Rail lines open for public transportation

Technological works: bridges, tunnels, viaducts, etc

Biotechnical worksfor protection and consolidation (protection plantations)

Operation and safety rail circulation instalations

Marshalling yards

Electrical installations (power generators and transformers)


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Telecommunication systems

Buildings

* The technical parameters of the national rail infrastructures must be compatible to one another and must

conform with the national and international rail regulations

) The rail lines = the rolling way for the trains* Rail gauge = the distance between the internal sides of the rail line:

Normal European rail gauge (Romania and most of the European countries)1435 mm Large rail gauge: Portugal, Spain, Finland USA rail gauge: 1675 mm Ex- USSR rail gauge: 1524 mm Narrow gaugetechnological transport (obsolete) => mocanita

* Rail lines:

Main lines Secondary lines Factory lines

* The logistic necessity of double rail lines

Rail transport features:

Great diversity of goods (bulk cargo, liquid cargo, finished goods, industrial cargo, agricultural cargo) Cargo partiessmaller than those transported by sea but much bigger than those transported by truck For door-to-door shipments the rail transport could be a part of an intermodal transport (truck / rail / truck; truck

/ rail / sea / truck)

Strong efficiency for medium and long distances Permanent transport (the transport process is regular, is not interrupted)

* The RO / LA transport system = trucks are loaded on rail platforms => combined (intermodal) transport /

modern transport technologies

Great safety standard Technical and commercial speedsmaller than the truck speed but faster than the one for the sea transport The rail freight is higher than the sea and river freight but smaller than the road freight


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General traffic rules for international rail transport: C.O.T.I.F. = the Convention concerning international rail transportthe members are all the European

countries and Turkey, Syria, Iran and Irak

C.I.M. = the uniform rules concerning the international rail transport contract The international rail transport contract (Annex 12) = Rail Waybill The contract starts being enforced the moment the sender (shipper) delivered the cargo to the delivery rail

station and that one has stamped the C.I.M rail waybill

It implies the joint liability of the rail authorityowner of the delivery rail station, the transit rail authoritiesand, as well, the rail authority which owns the destination railway station

The C.I.M. rail waybill is issued together with a stamp vouchera document in which all the rail authoritiesthat participate in performing the transport are inserting the transport tariffs and the accessory fees they are due

to get;

=> The price of the rail transport is cashed entirely by the loading rail authority; it then distributespro-rata therail freight to all other rail authorities

C.I.M. rail waybillthe elements:Sender (shipper)full style, and his signature

Loading railway station

Receiver (consignee)full style,

Destination railway station

Place and date of issuance of the C.I.M rail waybill

Identity (serial) number of wagon

Commercial denomination of the cargo

Package and number of collis

Weight

Optional remarks:

* Fees / dues / taxes for the senders (shippers) account

* Applicable transport tariffs (they must be identical with those mentioned in the stamp voucher)

* Cash on delivery amounts

* Customs / administrative formalities

The C.I.M. rail waybill set:


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1st

sheet = the Original of the C.I.M. rail waybillit travels together with the cargo and it is handed over to the

receiver (consignee) together with the cargo

2nd

sheet = Invoice, it stays with the loading railway station and it is used for the distribution of the rail freight

among the rail authorities that participate in performing the transport

3rd

sheet = Arrival note / Customs, it travels together with the cargo until the destination railway station and it

stays with it as a confirmation the cargo was duly delivered

4th

sheet = Duplicate, it stays with the sender (shipper) to prove the cargo was duly taken over for transportation

by the loading railway station

4th

A sheet = additional sheet for the sender, it travels together with the cargo until the border of the exporting

country

5th

sheet = Duplicate Invoice, it travels with the cargo and it stops at the border railway station of the exporting

country

5th

A sheet = the copy of the C.I.M. rail waybill, it stays at the loading railway station

The C.I.M. rail waybill (the international rail transport contract) can be altered only by the sender (shipper)through the loading railway station

In case a transport has a destination served by railway stations, the sender is obliged to indicate on the C.I.M.rail waybill the exact denomination of the chosen destination railway station

Post parcels are not admitted for rail traffic Certain cargo are not admitted for rail traffic The transport of Hazardous / Dangerous goods: Classes of hazardous goods Special tariffs Block trains = trains that travel based on a fixed route and a fixed schedule

* Usually they have one or a few senders (shippers)

* Better commercial speed

* Very goods reliability

The price of the rail transport comprises:* The effective price of transport (from the loading railway station to the destination / discharging railway

station)

* Accessory costs:

Lay time cost => demurrage


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Marshalling costs (loading railway station / loading placefactory / loading railway station and destinationrailway station / discharging placefactory, warehouse / destination railway station)

Weighing the wagons (if requested by the sender / receiver) Transshipment / transposing Senders / Receivers notification Washing of the wagons Guarding the wagons The S.M.G.S. rail waybill = international rail transport contract formused in the ex-members of the

C.A.E.R.Treaty (Mutual Economic Aid Council)

Presently it is used in the ex-USSR countries plus Vietnam, Mongolia, North Koreea and China The S.M.G.S. rail waybill is quite similar with the C.I.M. rail waybill

* The elements and the data inserted in the S.M.G.S. rail waybill are similar with those inserted in the C.I.M.

rail waybill; the differences consist of applicable law, liabilities, procedures;

A rail transport that starts in an European country and finishes in a country member of the S.M.G.S. Conventionneeds:

To exchange the documents set (the C.I.M. rail waybill set is exchanged with the S.M.G.S. rail waybill set in

the border railway station which is the entrance on the ex-USSR territory

Transshipment / transposing of the cargo / wagons on axles with ex-USSR rail gauge

Presently the Economic European Commission through C.T.T. (Comite international des transports ferroviaires)is working to create a common rail waybill (railway contract) for both C.I.M. and S.M.G.S. countries (Annex

13)

European rail transport corridors Eurasia rail transport corridors Eurasian rail transport axes (Annex 13)

CONTAINER TRANSPORT

Modern transport modality Container (transcontainer)

= mean of transport

= package for the cargo

The container appears as a military mean of transport between the two World Wars


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Commercial usagestarting with the 60s In the beginning the container dimensions were not standard; there were 5(5 feet), 10, 20 containers At the end of the 60s two main types of containers:) 20 container

* Un foot = 0.3048 m

* Standard dimensions:

L = 5.95 m

l = 2.35 m

H = 2.39 m

Tare ~ 1900 kg2200 kg

Loading capacity ~ 18000 kg23000 kg

1/20 = 1 TEU (twenty-foot equivalent unit)

) 40 container* Standard dimensions:

L = 11.92 m

l = 2.35 m

H = 2.39 m

Tare ~ 4000 kg4600 kg

Loading capacity ~ 28000 kg32000 kg

1/40 = 1 FEU (forty-foot equivalent unit)

Definition: Container = metal structure with a metal floor, metal walls, metal roof and metal door, all ofstandard dimensions, able to transport different kinds of goods with maximum safety

Nota bene: The container does not have its own propelling system;

=> It needs a propelling vehicle

=> It needs an infrastructure (terminals, container terminals) for loading / discharging on / from the propelling

vehicle

=> It needs warehousing facilities (logistics container terminals) to accommodate the empty containers

=> It needs specialized loading / discharging equipment to load / discharge full / empty containers on / from the

propelling vehicle


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The container, empty or stuffed with cargo can be transported by truck (semi-trailer truck, platform for 1/20, or2/20, or 1/40), rail platform (4 axles), river barge or ocean vessel (RO / RO type, Ferry type, or cellular vessel)

* Containers used for air transport have different construction characteristics (Annex 14):

Container AKE (code IATA: LD-3)Tare: 82 kg

L = 1.93 m

l = 1.45 m

H = 1.55 m

Usable volume = 4.3 cbm

Loading capacity ~ 1500 kg

Container AMU (code IATA: LD-39)Tare: 290 kg

L = 4.62 m

l = 2.39 m

H = 1.42 m

Usable volume = 15.77 cbm

Loading capacity ~ 5000 kg

and others Container classification (Annex 15.1-15.2):) According to the nature of cargo Dry Van containers (D/V) Tank containersb)

According to the construction characteristics

Open Top containers (O/T) Open Side containers (O/S) Flat Rack containers (F/R) High Cube containers (Hi/Cu) Reefer containers


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) According to the ownership: Carriers containers (ship owners, rail authorities, private rail operators) Containers belonging to Leasing Companies => inter-change system => logistics type facilities Shippers containersd) Until around 1990 the containers used for rail traffic were basically not accepted for maritime traffic; lately allstandard containers could be used for rail, road and maritime transport) The containerthe ideal vehicle for intermodal (combined) transport

=> International forwarding and international transport documentsstandard for intermodal container transport

(F.I.A.T.A. Bill of Lading, Through Bill of Lading)

Actual trends: The increase of the loading capacity (weight) for both 20 and 40 containers The increase of the container dimensions (45 containers, High Cube containers) The necessity of intermodal connectivity among container terminals (for truck, rail and sea container transport) The necessity of dimension interconnectivity between the container and its propelling vehicles (containers

should accommodate dimension wise on any / all means of transport)

Container monitoring system by GPS (track-and-trace system) connected with RFID (Radio FrequencyIdentification) technology

Modern management and security technologies in combined container traffic The increase of the operational capacity (per hour) of the loading / discharging equipment (transstainers, gantry

cranes, etc)

FCL containers (Full Container Load)one shipper / one consignee LCL containers (Less than Container Load) => consolidated shipments (truck / sea / air)

INTERNATIONAL FORWARDING

Definition: International forwarding is the activity of a company (forwarding company, forwarding agent)usually located between the exporter and the carrier and / or the carrier and the importer

* Such a company correlates transport services with other related services with the goal of physical

displacement of the cargo from the exporter to the importer with lowest costs, in the shortest time, and with

maximum security

In the modern era, the forwarding activity was totally separated from the transport itself (as a consequence ofthe international labour division)


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In the actual context (cooperation, concentration, globalization) the border between the two activities becamefairly flexible

* The big carriers developed international forwarding divisions or even daughter companies only for

international forwarding

* As well the big international forwarders developed transport divisions or daughter companies, usually

specialized on certain transport modalities

Nota bene: The forwarder (international forwarding companies) = The Architect of the International Transports

Functions: Economic, technical, legal, consultancy for concluding international commercial contracts Lining up the cargo / the mean of transport with the time, security, cost, price requirements Choosing the optimal route / means of transport Know-how concerning packaging, palletizing, stuffing / unstuffing the cargo on / from the mean of transport Consultancy for the conclusion of the transport contract between the exporter / importer and the carrier / carriers

/ related service providers

* The entire take over of the transport contract / contracts by the forwarding company (contract of mandate

between the shipper / consignee and the forwarding agent as authorized agent)

Customs operations / formalities Warehousing / stocking / supply chain distribution Consolidated shipments Issuance of transport and forwarding documents

* FCR (Forwarding Agents Certificate of Receipt) Annex 16

* FCT (Forwarding Agents Certificate of Transport) Annex 17

* FBL (FIATA Combined Bill of Lading) Annex 18

* FWR (FIATA Warehouse Receipt) Annex 19

* ATA Carnet

Monitoring cargo parties during the transport and notifying the client (track-and-trace systems) International fairs and exhibitions samples / products => transport, customs clearance, bonded warehouse, other

related services

Studies concerning modern transport technologies, transport / logistics efficiency, transport market evolution,etc


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Key global players: DB Schenker, Kuehne & Nagel, Panalpina, DHL, TNT, Fedex, UPS

* Concentration / globalizationDeutsche Post buys and puts together Danzas AG and Nedlloyd Logistics;

then Deutsche Post buys DHL and puts it together with the result of the Danzas AG / Nedlloyd merger => DHL

= international forwarding company (3PLthird party logistics provider) belonging to Deutsche Post

International rules and regulations F.I.A.T.A. =Federation Internationale des Associations de Transitaires et Assimiles (International Federation

of Fowarders Organizations), founded in 1926, in Wien

Represents the freight forwarding organizations interests in cooperation with other international organizations

and government bodies

Standardizes the international shipping orders and transport documents

Logistics operators (logistics services providers) = international forwarding company which also deals withrelated domains of import / export operations, upstream and downstream (supply chain and demand chain)

References

Managing transport operations, Gubbins, J Edmund, Editura Kogan Page Limited, 2003 http://www.iru.org/ http://www.icao.int/ http://www.iata.org/Pages/default.aspx http://www.fiata.com/ http://www.lr.org/Default.aspx https://www.bimco.org/ http://www.cit-rail.org/en/

international transport ppt summary

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