International Cargo Transport

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1 International Cargo Transport Essentials of a Transport System International Freight Business Process Containerization Bill of Lading Multi-modalism

2 Essentials of a Transport System

3 The Role of a Transport System Transport allows articles or materials to be conveyed from areas of low utility to areas of high utility and thereby adds value to the product. Modes, cost and efficiency play a major role in the transport infrastructure. Three Elements of a Transport System Way Route Vehicle (including Motive Power Unit) Terminal

4 Shipper, Forwarder and NVOCC NVOCC Non Vessel Operating Common Carrier A licensed carrier that provides transportation, issues its own house BL, but does not operate the vessels by which real transport is provided. Freight Forwarder An agent that arranges space for shipments via common carriers on behalf of shippers, prepares and processes the documentation and perform related activities pertaining to those shipments. Shipper Forwarder NVOCC Actual Carrier

5 Freight Business Process Freight Ocean Freight Route of Cargo Consignment Port of Destination Date of Shipment Nature of Cargo and Special Treatment Demand Inland Freight (in RMB) Inland Haulage Container Stuffing Customs Declaration Inspection and Quarantine Inquiry and Order Space Booking and CLP Customs Declaration Confirming BL

6 Space Booking Get the Booking Receipt Voyage Name of Vessel BL No. Container Load Get the Container Load Plan Door CFS CY Inquiry and Order Space Booking and CLP Customs Declaration Confirming BL

7 Containerization Container Built to standardized dimensions, and can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another without being opened. Containerization is a method of distributing merchandise in a unitized form thereby permitting an inter-modal system to be evolved providing a possible combination of rail, road, canal and maritime transport.

8 Containerization Features of Containerization Low risk of cargo damage and pilferage Much improved utilization and more productive Faster Transit and increased service efficiency Less packing needs for containerized consignments A capital-intensive transport network brings competitive freight rates Greatly facilitated the development of small or bulk consignments Provision of through rate Provision of through documentation, involving a common code of liability for the through transit Accelerated growth with muti-modalism and logistics together

9 Most Common Size of Container 1 20'GP (1TEU) 20' 8' 8'6 / 28-29CBM / 17.5MT 1 40'GP 40' 8' 8'6 / 57-59CBM / 22.0MT 1 40' HQ 40' 8' 9'6 / 66-68CBM / 22.0MT 1 45' HQ 45' 8' 9'6 / 86CBM / 29.0MT

10 Container Load and Delivery Container Terminal Container Yard (CY) A handling and buffering storage of loaded and empty containers for their shipments or discharges. Container Freight Station (CFS) Provides warehousing, consolidation and unstuffing services for LCL cargo in connecting with container yard.

11 Container Load Plan Shipper CY LCL CFS LCL CFS CY Consignee

12 Bills of Lading Receipt for goods shipped on board Evidence of the terms of transport Document of title to the goods Inquiry and Order Evidence of Contract Space Booking and CLP Receipt for shipped Document of Title Customs Declaration Maritime Transit Confirming BL

13 Bills of Lading On Board UCP600: 20 a) A bill of lading, however named, must appear to indicate that the goods have been shipped on board a named vessel at the port of loading stated in the credit by...an on board notation indicating the date on which the goods have been shipped on board. The date of issuance of the bill of lading will be deemed to be the date of shipment unless the bill of lading contains an on board notation indicating the date of shipment, in which case the date stated in the on board notation will be deemed to be the date of shipment.

14 Clean By issuing clean bills, the ship-owner admits his full liability of cargo. Claused Bills of Lading UCP600: 27 Termed as unclean, foul or claused including inadequate packaging, unprotected machinery, second-hand cases, wet or stained cartons, damaged crates, cartons missing A bank will only accept a clean transport document. A clean transport document is one bearing no clause or notation expressly declaring a defective condition of the goods or their packaging. The word clean need not appear on a transport document, even if a credit has a requirement for that transport document to be clean on board.

15 Interpretations of Terms of Period UCP600: 3 Unless required to be used in a document, words such as prompt, immediately or as soon as possible will be disregarded. The expression on or about or similar will be interpreted as a stipulation that an event is to occur during a period of five calendar days before until five calendar days after the specified date, both start and end dates included. The words to, until, till, from and between when used to determine a period of shipment include the date or dates mentioned, and the words before and after exclude the date mentioned. The words from and after when used to determine a maturity date exclude the date mentioned. The terms first half and second half of a month shall be construed respectively as the 1st to the 15th and the 16th to the last day of the month, all dates inclusive. The terms beginning, middle and end of a month shall be construed respectively as the 1st to the 10th, the 11th to the 20th and the 21st to the last day of the month, all dates inclusive.

16 Transhipment UCP600: 20 c) A bill of lading may indicate that the goods will or may be transhipped provided that the entire carriage is covered by one and the same bill of lading. A bill of lading indicating that transhipment will or may take place is acceptable, even if the credit prohibits transhipment, if the goods have been shipped in a container, trailer or LASH barge as evidenced by the bill of lading.

17 Partial Shipments or Drawings UCP600: 31 a) Partial drawings or shipments are allowed. b) A presentation consisting of more than one set of transport documents evidencing shipment commencing on the same means of conveyance and for the same journey, provided they indicate the same destination, will not be regarded as covering a partial shipment, even if they indicate different dates of shipment or different ports of loading, places of taking in charge or dispatch. UCP600: 32 If a drawing or shipment by installments within given periods is stipulated in the credit and any installment is not drawn or shipped within the period allowed for that installment, the credit ceases to be available for that and any subsequent installment.

18 Full Set Originals and N/N Copies Bills of lading are made out in sets generally it is 2 or 3 one of which will probably be forwarded immediately, and another by a later mail in case the first is lost or delayed, together with a number of non-negotiable copies for office and filing use.

19 Property Controlling of Goods Is it possible to deliver the goods without documents? Is it possible to release the documents without payment?

20 Forwarder Nominated by the Buyer House BL A document issued by the freight forwarder (Should be NVOCC) for receipt of goods, which ensures the same liability as by the ship under the related Master BL. House BL should not be used for delivery goods from the ship. Shipper Forwarder Ship Customs Agent Consignee Inquiry and Order Booking the Vessel Transit Delivery against House BL House BL against Payment Container Load Shipped on Board Delivery against Master BL Get House BL Get Master BL

21 Negotiable Bills of Lading Order BL Where the consignee is shown as being To Order or with a named person qualified by the words To the order of or similar. Negotiable and can be used to transfer title by endorsement (or passage of a blank endorsed bill). Non-negotiable Bills of Lading Straight BL Where the consignee is clearly nominated by name without any qualification ( To the order of or similar). Not negotiable and cannot be used to transfer or endorse.

22 Sea Waybill Main Features of Sea Waybill A personal contract between the carrier and shipper to which the consignee never becomes a party. A non-negotiable document consigned to a named consignee and not requiring production to obtain possession of the goods at destination. Widely used especially between established and close traders who have been trading for many times and wish to take full advantage of EDI benefits.

23 Telex Release Why do they apply for Telex Release? What s the risk in Telex Release? Shipper Applying for Telex Release Issuing A Letter of Indemnity Carrier Faxing the Copy and Code Holding the Originals Consignee Taking Delivery without Originals

24 Multi-modalism Criteria for Multi-modalism A door-to-door or warehouse-to-warehouse service; Two or more forms of transport; A CTO/MTO is primarily liable throughout carriage; A through document issued by CTO/MTO; Offering through rates for the dedicated services.

25 More Specific Definition of Multi-modalism Combined Transport Multi-modalism Transport Modes Issuer of Transport Documents Involving decentralized operation in one transport mode First Carrier; Maybe CTO Two or more transport modes CTO/MTO Responsibilities for Transport Freight Rate Divisional responsibilities; Through responsibility if there is an existed CTO Combination of sectional charges Through responsibility Through rate

26 Features of Multi-modalism A scheduled, dedicated and competitive service. Operating under NVOCC arrangements. Better asset-utilization of multi-modal infrastructure. ICDs, dry ports, free zones and multi-modal networks. Always providing logistics departments. An ideal environment for electronic business, logistics and creative technologies.