Transportation and Shipping

Transportation and Shipping
Road, rail and air transportation
Road transport

cheaper and more direct than rail
Increased capacity for lorry to carry goods (containers), faster service (motoways), accessibility abroad with ferries offering rolling-on and rolling-off facilities
Rail transport
Faster than road ( necessary when transporting perishable goods)
Can haul bulk commodities (oil, grain, coal) in greater volume than road transporters
Link between road and rail through companies such as Freightliners – transhipment
Tends to be comparatively more expensive than road haulage
Air transport
Necessary for goods lose value overtime and deteriorate
Use for speed, particularly over long distances
Insurance tends to be cheaper as consignments spend less time in transit
With bulk consignments, air is much more expensive
The main document – Air Waybill, which consists of 12 copies distributed to the airline, exporter, importer, and custom
AWB is only a receipt and cannot be transferred to another person
Documentation
Consignment notes are used in road and rail transportation
Consignment notes and AWB are not documents of title, and not negotiable
Consignment notes and waybills are obtained by the consignor filling out an instruction for despatch form and paying the freight charges. The charges are calculated in size, weight or value and risk
Correspondence in transport
Between the seller and freight firm

Between the seller and forwarding agents

The customer are kept informed by advice note – details of packing and when goods will arrive
Shipping
Types of vessels
Passenger liner
Passenger cargo vessels
Tramps
Tankers
Container vessels
Roll-on roll-off ferries
Barge and lighter
Note
SS – Steam Ship

MV – Motor Vessel

MS – Motor Ship
Shipping organizations
The Shipping Conference

The Baltic exchange
Shipping documentation
A freight account is an invoice sent by the shipping company to the exporter stating their charges.
A shipping note advises the Superintendent that the goods are to be shipped.
A dock receipt will be returned to the consignor confirming that the goods are stored and awaiting shipment.
A mate’s receipt may be sent acknowledging that the goods have been loaded.
ETA
Bill of ladding
The most important document in shipping as it is a document of title
“full set” – 3 originals
“to order” are written – a negotiable document
“endorse in blank” or “blank endorsement” – no restriction on ownership
A shipped b/l or shipped on board – goods have been loaded on to the ship
“clean” – goods were taken on board in good condition
“dirty/claused” – found something wrong with the consignment
“freight prepaid”
“freight collected”
Shipping liabilities
The Hague Rules govern liability for loss and damage to cargo carried by sea under a b/l and state that the carrier will not responsible under the following conditions:
Acts of war, riots. Civil disturbance
Force majoeure
Negligence
Inherence vice
The Hamburg Rules have extended the shipping companies’ liability for damage or delay to ‘ goods in their charge’ unless they can proof thaey took all measure to avoid the problem
To be safe, co. insures the consignment under all risk cover and war
Forwarding agents
Forwarding agents are used by exporters to arrange both import and export shipments.
The service includes: collecting consignment, arranging shipment, packing and handling all doc., incl. making out b/l, obtaining insurance, sending commercial invoice, paying the shipping co. for their client, informing the importer’s forwarding agents that the shipment is on its way by sending advice note, send the goods on to him or arrange for them to be stored until collected.
Many forwarding agents act as clearing agents – ensure the goods are cleared through the custom and are sent to the importer
Container services
Containers are large steel boxes, 20 to 40 feet in length, can hold most cargoes including liquids and are transported by lorries or trains to port where they are loaded on to container vessels.
Containers are safe because of their sealing
Containers are versatile, loading top, front or side and can cut a ship laytime (waiting time) down by 60-70%

Advantages of container services
The containers can be loaded and locked at the factory premises or at nearby container bases making pilferage impossible.
There is no risk of goods getting lost or mislaid in transit.
Handling is greatly reduced, with lower cost and less risk of damage.
Reducing loading and unloading time
Temperature-controlled container are available
Documentation for exporting goods by container
Bill of lading: clean shipped on board bill

Combined transport bill of lading

Non-negotiable waybills
Documentation for importing goods by container
Freight invoice
Arrival notification form
Custom clearance form
Certificate of origin
Commercial invoice
Import licence
Health certificate
Bill of lading or waybill
Out of charge note
Chartering ships
Voyage charter charges are calculated on the tonnage value of cargo.
Time charter charges are calculated on the tonnage of the ship plus running costs of the vessel, excluding wages.
Mixed charter are combined both time and voyage charters. The contract singed by both parties is known as charter party