LEESSON 6 THE TRANSPORT prof. Adele Limodio

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1 Means of Transport Goods have to be transported from the place from the place where they are produced to the place where they will be sold. When deciding which means of transport to use, a number of factors must be taken into consideration: - The type, value and dimension of the goods; - The distance to be covered - The cost of the means of transport - How urgently the goods are needed - The security of the transport When goods need to be transported over long distances it is likely that intermodal carriage is used. This involves the use of different means of transport, for example a truck to transport the goods from the factory to the port of departure, a ship to transport the goods overseas and another truck to transport the goods from the port of arrival to the final destination. Bigger companies usually have their own distribution networks, while smaller businesses employ forwarding agents. Forwarding agents are experts in the transportation of goods who take care of all stages of shipment, from packing the goods to dealing with all necessary documentation. These services can be paid for either the importer or the exporter. Depending on the arrangements they have agreed upon. ROAD TRANSPORT Road transport is the principal form of inland transport. Most businesses decide to use this form because it is relatively cheap and fast, although bad weather and traffic congestion may result in delay in delivering the goods. The main advantages of road transport are its flexibility and its door-to-door service. Any destination can be reached and goods can be transported from the departure to the arrival point using only one means of transport. This reduces the number of loading and unloading operations and therefore the risks of damage and theft. There are obviously limitations as to the type and dimensions of the cargoes and the distance to be covered: transport by road is particularly suitable for short and medium distances. The main document used in road transport is the International road consignment note or waybill. Like all transport documents, the international road consignment note serves as both a receipt for the consignment of goods and a contract of carriage between the sender, the consignor, and the carrier. It contains the name and address of the consignor, the description of the goods, the date and the place of departure and the mode of payment for carriage. EXEMPLE OF ICN Esemplare per il Mittente-Exemplaire de l'expediteur-copy for sender Mittente (nome, domicilio, paese) Lettera di vettura internazionale Questo trasporto è sottoposto, 1 Expediteur (nom, adresse, pays) Lettre de voiture internacionale nonostante tutte le clausole contrarie, International consignment Sender (name, addresse, country) note alla Convenzione del Trasp. Stradale Destinatario (nome, domicilio, paese) Ce transport est soumis à la Convention relative au contrat de transport International de marchandises par route. Trasportatore (nome, domicilio, paese) 2 Destinataire (nom, adresse, pays) 16 Transporteur (nom, adresse, pays) Consignee (name, address, country) Carrier (name, address, country) This carriage is subject to the Convention on the Contract for the Inter. Carriage of goods by road.

2 Luogo di presa in consegna delle merci 3 Lieu pour la livraison de la marchandise Place of delivery of the goods Trasportatore successivo (nome, domicilio, paese) 17 Transporteurs succesives (nom, address, pays) Successive carriers (name, address, country) Luogo di destinazione delle merci 4 Lieu de la prise en charge de la marchandise Place of taking over the goods Riserve ed osservazioni del corriere 18 Réserves ed observations du transporteur Carrer's reservations and observations Documenti allegati Documents annexille Documents attached Contrassegni e numeri Numero dei colli 6 Marques et numéros 7 Nombre des colls Marks and number Number of packages Tipo di imballaggio 8 Mode d'emballage Method of packing Descrizione delle merci 9 Nature de la marchandise Nature of the goods Numero statistico Peso Lordo Kg. Volume m3 10 N statistique 11 Poids brut Kg. 12 Cubage m3 Gross Weight N statistic Kg. Volume in m3 Classe Cifre Class Number Istruzioni del mittente 13 Instructions de l'expediteur Sender's instructions Lettere Letter F Convenzioni particolari 19 Conventions particulières Special agreement Tipo di pagamento Contante: 14 Presentactions d'affranchasement Supplementi: Instructions as to payment carriage Supplem. charges: Porto franco Spese accessorie: Porto non franco Stabilito in: 21 Estabé à le Established in o n il Pagare per: Venditore Valuta Destinatario 20 To be paid by: Senders Currancy Consignee Prezzo del trasporto: Carriage charges: Descuentos: Deductions: Other charges: TOTAL 15 Rimborso / Remboursement / Cash on delivery Goods received Ricevuta della Merce / Marcharndises recues /

3 Luogo Lieu Place il le on Firma e Timbro del Mittente Firma e Timbro del Trasportatore Firma e Timbro del Destinatario Signature et timbre de l'expéditeur Signature et timbre du transporteur Signature et timbre du destinataire Signature and stamp of the sender Signature and stamp of the carrier Signature and stamp of the consignee RAIL TRANSPORT Rail transport is particularly suitable for the delivery of large consignment over long distances, as it is relatively cheap and fast. It is not affected by bad weather or traffic. However there are also a number of disadvantages, it cannot offer completeness of services as it requires the use of the other means of transport between the station and the departure and destination points. Goods have to be loaded and unloaded repeatedly and this increase the risk of damage and theft of goods. Another risk is its lack of flexibility as to time and routes. The main document used in rail transport is the rail consignment note. It contains: the name and address of the consignor and the consignee, the description of the goods, the date and stations of departure and arrival, the carriage charges. SEA TRANSPORT Transport by sea is still very popular in spite of the fact that it is much slower when compared to other means of transport. Ships can transport cargoes of very large dimensions and are particularly suitable for hazardous goods. The introduction of container ships has simplified loading and unloading operations and reduces costs. Sea transport requires additional transportation to and from the ports of departure and arrival with consequent risks of damage and additional costs. Shippers can choose between two types of ships: - Conference liners, which are owned by shipping companies which have agreed to apply the same freight rates; - Non conference liners, which are owned by shipping companies which operate in competition with one another. Their freight rates are usually lower than the rates applied by conference liner, but the service offered is not reliable. The contract between a ship-owner and a consignor is called charter party. There are two types of charter party: a time charted where a ship is hired for a fixed period of time and a voyage charter where a ship is hired for a specific voyage. The document used in sea transport is the Bill of Lading. As sea transport always requires intermodal carriage, it is possible to use a combined bill of lading which covers both sea and road transport. The document serves as: - a contract of carriage - a receipt of the goods - a deed of the title, as it establishes who is the owner of the goods.

4 What is a Bill of Lading? A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination. Among other items of information, a bill of lading contains (1) consignor's and consignee's name, (2) names of the ports of departure and destination, (3) name of the vessel, (4) dates of departure and arrival, (5) itemized list of goods being transported with number of packages and kind of packaging, (6) marks and numbers on the packages, (7) weight and/or volume of the cargo, (8) freight rate and amount. It serves as a proof of ownership (title) of the cargo, and may be issued either in a negotiable or nonnegotiable form. In negotiable form, it is commonly used in letter of credit transactions, and may be bought, sold, or traded; or used as security for borrowing money. A bill of lading is required in all claims for

5 compensation for any damage, delay, or loss; and for the resolution of disputes regarding ownership of the cargo. AIR TRANSPORT The great advantage of air transport is its speed. The cost of air freight may seem expensive compared to other forms of transport, but it may be competitive if we consider that a lot of time is saved and fewer expenses are required both for packing and insurance. Most air companies have a network of cargo airports and employ a large staff of cargo specialists. They can also provide a reliable dorro-to-door service. The document representing the air transport contract is the air waybill or air consignment note.