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1、Chapter FiveChapter FiveCargo Cargo TransportationTransportation1語言資格考試PPTLearning objectives lAfter learning this chapter you will be able tounderstand the importance of ocean transportation and how liner freight is obtained know other modes of transportation in terms of their features, suitability

2、 and freight calculationbe aware of the importance of ocean bill of lading and its different typesdescribe a range of other transportation documents stipulate delivery clause in a sales contract 2語言資格考試PPT5.1 Ocean Transportationl Liner transportation l Charter transportation3語言資格考試PPT5.1.1 Liner tr

3、ansportation l Liner: definition a vessel with regular sailings and arrivals sailing on a fixed (regular) sailing route calling at fixed (regular) base ports adopting a comparatively fixed timetable charges at comparatively fixed freight rates freight inclusive of loading & unloading costl Liner

4、: types conference liners non-conference liners 4語言資格考試PPT5.1.1 Liner transportation l Liner Freight = basic freight rate + surcharges and additionall Calculation formula of liner freight Total Freight = Total Quantity Basic Freight Rate (1+ Surcharge /Additional Rates) Basic Freight Rate: quoted by

5、 the carrier5語言資格考試PPT5.1.1 Liner transportation 6語言資格考試PPT5.1.1 Liner transportation l Surcharges Bunker Surcharge (bunker adjustment factor/BAF) Currency Surcharge (currency adjustment factor/CAF) Port Congestion Surcharge Transshipment Surcharge Port Surcharge 7語言資格考試PPT5.1.1 Liner transportation

6、 l Additional Heavy lift additional e.g. for cargo over 5 MT per unit Lengthy cargo additional e.g. for cargo over 9m per unit Bulky cargo additional e.g. for cargo over 6cbm per unit 8語言資格考試PPT5.1.1 Liner transportation l Freight calculation: Illustration Suppose: Company A exports 1000 cases of Co

7、mmodity Y to London. The volume per case is 40cm x 30cm x 20cm, and the gross weight is 30kg per case. For Commodity Y, the freight rate basis is W/M, and the Freight Tariff (China London) is USD230, with a 10% port surcharge. How much is the total freight? 9語言資格考試PPT5.1.1 Liner transportation l Sol

8、ution: W: 30kg = 0.03 M/T M: 0.4 x 0.3 x 0.2 = 0.024 m3 W M, “W” is the freight basis for the calculation of freight Total Freight= Total Quantity Basic Freight Rate (1+ Surcharge/Additional Rates) = 1000 cases 0.03 M/T USD230 ( 1 +10%) = USD 7590 Answer: The total freight cost is USD7590.10語言資格考試PP

9、T5.1.2 Charter transportationl Characteristics No fixed routes No fixed timetables Freight charged on the volume of cargo Suitable for cargo of a complete shipload (e.g. bulk cargo)l Types voyage charter: hired based on a particular voyage time charter: the hire of a ship for a period of time bare b

10、oat charter: the hire of the vessel itself11語言資格考試PPT5.1.2 Charter transportationlCharter party the contract between the ship-owner (carrier) and the charterer (shipper) Contentslthe contract partieslthe ship conditions: e.g. the ships name, age, nationality, tonnage lvoyage: e.g. ports of shipment

11、& destinationlcharter freight ldivision of loading & unloading costllay days, demurrage & dispatchlfreight payment termsl.12語言資格考試PPT5.1.2 Charter transportationl Specifying loading & unloading costFour methods: I. & O. or Liner Terms/Gross Terms: In and Out F.I. :Free In F.O.: F

12、ree Out F.I.O.: Free In and Out Or F.I.O.S.T.: Free In and Out, Stowed and Trimmed13語言資格考試PPT5.1.2 Charter transportationl Lay time also called lay day, is the period of time allowed to the charterer for the loading or unloading of goods without additional charge l Methods of stipulation Days or run

13、ning days or consecutive days Weather working days of 24 hours A weather working day of 24 consecutive hours .14語言資格考試PPT5.1.2 Charter transportationl Demurrage the amount of money paid as a penalty at an agreed rate by the charterer to compensate the ship-owner for his losses in case the charterer

14、fails to have loading and unloading completed within the lay timel Dispatch the amount of money paid as a bonus by the ship-owner to the charterer if they get loading and unloading done ahead of schedule. normally dispatch money = the demurrage15語言資格考試PPT5.2 Other modes of transportationl Air Transp

15、ortationl Rail Transportation & Road Transportation l International Multimodal Transportationl Container Transportation 16語言資格考試PPT5.2.1 Air Transportationl Types of air transportation scheduled airlines chartered carriers consolidated consignment air express17語言資格考試PPT5.2.1 Air Transportationl

16、Air transportation freight rate general cargo rates minimum charges class rates special commodity rates 18語言資格考試PPT5.2.1 Air Transportationl General cargo rates W: by weight (usu.1 kg as the unit) M: by measurement (usu. 6000 cm3 =1kg) W/M: by weight or by measurement, subject to the higher the heav

17、ier, the cheaper (unit freight)l e.g. 45kg draws a linel minimum freight 19語言資格考試PPT5.2.1 Air Transportationl Air freight: illustration Company A wants to send one consignment to Sydney, Australia. The goods are packed in 50 cartons, each weighing 15kgs, with measurement as 50 x 40 x 30cm. The air f

18、reight rate is quoted at USD2.00/KG (W/M). How much would the total air freight cost? 20語言資格考試PPT5.2.1 Air Transportationl Solution W: 15 kg M: (50 x 40 x 30) /6000 = 10kg W M, so W will be adopted for the calculation of air freight Total air freight =Total Quantity Basic Freight Rate = 50 cartons15

19、kg USD2.00 = USD1500 Answer: the total air freight cost is USD1500.21語言資格考試PPT5.2.2 Rail Transportation & Road Transportation l Rail transportation from a dispatching station to a destination station large capacity relatively high speed punctual and economical less prone to bad weather, but conf

20、ined to railroads, therefore less flexible22語言資格考試PPT5.2.2 Rail Transportation & Road Transportation l Road transportation from an inland point to the sea port, airport and railway station high flexibility and distributive ability facilitating door-to-door service ideal for cargoes in small quan

21、tities, but limited in capacity vulnerable to high risk of pilferage and damage in transit relatively higher operation cost23語言資格考試PPT5.2.3 International Multimodal Transportation l only one multi-modal transportation operatorl only one carriage contractl one freight rate for the whole journey l hig

22、h operating efficiencyl low operating cost l short time period for cargo movementl more and more popular in shipping practice24語言資格考試PPT5.2.4 Container Transportation l Definition a method of distributing merchandise in a unitized form adopting an inter-modal system providing a possible combination

23、of sea, road and other modes of transportationl Features variety in service involving one operator low risk of damage and pilferage substantial cost savings 25語言資格考試PPT5.2.4 Container Transportation l Types of containers dry cargo container refrigerated/reefer container tanker container car containe

24、rl Sizes of containers ISO/TC104 (13 sizes of 13 series) Standard sizes (most popular)l FEU 8 x 8 x 40 l TEU 8 x 8 x 20 26語言資格考試PPT5.2.4 Container Transportation l Types of serviceAccording to place of shipment and destination CY to CY (Container Yard to Container Yard) CFS to CFS (Container Freight

25、 Station to Container Freight Station) DR to DR (Door to Door) DR to CFS (Door to Container Freight Station) CFS to DR (Container Freight Station to door)27語言資格考試PPT5.2.4 Container Transportation According to the capacity needed FCL l for goods of full container loadl freight based on container capa

26、city LCLl for cargo in small quantity (less than a container load)l Carriers consolidating goods of different shippers to be delivered to the same destination28語言資格考試PPT5.2.4 Container Transportation Container freight FCL: determined mainly by l the capacity of the container l the place of shipment

27、l Destination LCL: similar to those of the ocean liner service l W, M or W/M l the distance of voyagel surcharges and additional if applicable29語言資格考試PPT5.3 Transportation documentsl Bill of lading (B/L) Definitionl a document issued by an ocean carrier to a shipper with whom the carrier has entered

28、 into a contract for the carriage of goods. Functionl a receipt of cargo l an evidence of contract of carriage l a document title to the goods30語言資格考試PPT5.3 Transportation documentslContents on the face l Information concerning contracted parties, full particulars of the cargo, terms of carriage con

29、tract on the back l the general terms and conditions31語言資格考試PPTTypes of Bill of Ladinglaccording to whether the goods have been loaded on board the carrying vessel shipped B/L l Issued after goods shipped on board the vessell Indicating date of shipment and name of the vessel received for Shipment B

30、/LlGoods being received but not yet loaded lDifficult to anticipate date of arrival, so not favorable by buyerlWays of becoming Shipped B/LExchange for a Shipped B/L after goods are shipped on board Wording such as “Goods shipped on board S/S Red Star on May 10, 2011” added and signed by the carrier

31、 or the agent on the received B/L32語言資格考試PPTTypes of Bill of Ladingl according to the condition of the exterior packing of the received cargo clean B/L lProof that goods have been “shipped in apparent good order and condition” or “clean on board” or the likelFavored by buyers and banks for financial

32、 settlement unclean B/LlMarked as “unclean”, “foul” etc.e.g. 2 cases missing, 3 cartons wet, 1 case broken, cases inadequately packedlUsually unacceptable to buyers and banks33語言資格考試PPTTypes of Bill of Ladingl according to the address of the consignee straight B/LlMade out to a designated consigneel

33、Only the named consignee is entitled to the cargolNot transferable open B/LlNo name of a definite consigneelThe consignee box left blank or open, or bearing the wording “To bearer” lCan be transferred without endorsementlHigh risk unfavorable in international trade34語言資格考試PPTTypes of Bill of Lading

34、Order B/L l Made out to the order of a named personl No definite consignee, “To order” “To order of the shipper” or “To order of the consignee” insteadl Negotiable and transferable,but need endorsement Special endorsement: signature of the endorser and name of the endorsee Blank endorsement: signatu

35、re of the endorser but no name of the endorsee l Widely used in international trade35語言資格考試PPTTypes of Bill of Ladingl according to whether transshipment is involved in transit direct B/L lport of shipment port of destinationlPreferred by the buyer transshipment B/L lport of shipment intermediate po

36、rt port of destinationlInvolving additional charges, longer time and higher risks in transit, therefore unfavorable to the buyerlAcceptable only when there is no direct service36語言資格考試PPTTypes of Bill of Ladingl according to the perplexity or simplicity of the content long form B/L l detailed shippi

37、ng contract clause printed on both the face and the back Short form B/L l simplified and abbreviated l no detailed shipping contract clause esp. on the backl not suitable for evidence of contract of carriage37語言資格考試PPTTypes of Bill of Ladingl according to the payment condition of freight freight pre

38、paid B/L lIssued only after freight having been paid lNormally suitable for Sales Contracts on trade terms (e.g. CFR/CIF ) where the seller is obliged to arrange contract of carriage and pay the freight. freight to be collected B/L lWording such as “Freight payable at destination” or “Freight to col

39、lect at destination” is indicatedlNormally suitable for Sales Contracts (e.g. FOB) where contract of carriage is arranged by the seller on behalf of the buyer 38語言資格考試PPTTypes of Bill of Ladingl according to the validity original B/L lValid only after being singed by the shipping company or its agen

40、tlShowing “Original” and the number of the signed originals lNormally made out in a set of three originalslAn evidence showing the ownership of goodslPresented for taking the delivery of the goods at destination, one is used, the others becomes void automatically Copy B/LlBearing “Copy” “Duplicate”

41、or “Non-negotiable” lNormally only used for reference or for recordslmade out in several to be a full set of together with the originals39語言資格考試PPTTypes of Bill of Ladingl Stale B/L presented later than the latest presentation date specified in the L/C or presented later than the goods arrival at th

42、e destination UCP 600: the B/L shall be presented within 21 days after issuance, unless otherwise stipulated in the credit necessary to add a clause that a “Stale B/L is acceptable” in the contract for short voyages40語言資格考試PPTTypes of Bill of Ladingl Anti-dated B/L the shipment date shown on the bil

43、l being earlier than the actual one issued at the request of the shipper to meet the time of shipment stipulated in the credit for the avoidance of a non-payment constitute a fraud 41語言資格考試PPTTypes of Bill of Ladingl Advanced B/L issued before actual loading of the goods is completed or even before

44、the commencement of the actual loading operation issued when the time of shipment stipulated in the L/C is almost due but the actual loading of the goods is not yet completed or the goods are not ready for shipment. issued at the request of the seller for the avoidance of a non-payment constitute a

45、fraud 42語言資格考試PPTTypes of Bill of Ladingl On deck B/L indicating that the goods are stowed and shipped on deck carrier being responsible for the damage & losses usu. unacceptable to buyer and bank unless the credit stipulates otherwise special arrangement for insurance is needed if applicable43語

46、言資格考試PPT5.3 Transportation documentsl Other types of transportation documents Sea Waybill Air Waybill Consignment Note (Rail Waybill) Road Consignment Note Multimodal Transportation Document (MTD) 44語言資格考試PPT5.4 Shipment clause in the sales contractltime of shipment vs. time of delivery for shipment

47、 contracts time of shipment = time of delivery for all arrival contracts time of shipment time of delivery45語言資格考試PPT5.4 Shipment clause in contractl Stipulating methods specifying a fixed period of time or a deadlinel Shipment is to be made during January/February/March 2011l Shipment not later tha

48、n 31st July, 2011 setting a time period upon receipt of paymentl Shipment is to be made within 30 days after receipt of the L/C. The relevant L/C must reach the seller not later than 30th June, 2011.46語言資格考試PPT5.4 Shipment clause in contractl Issues concerning time of shipment Sufficiency in terms o

49、f l availability of goodsl availability of shipping space l Payment Normally L/C should arrive at least 15 days before the time of shipment to allow time for examining and modifying L/C Flexibility: avoid “shipment on May 15th” Clarityl avoid wording like “Immediate shipment”, “Prompt shipment”, “Sh

50、ipment as soon as possible” etc. 47語言資格考試PPT5.4 Shipment clause in contractl Issues concerning port of shipment and destination: close to the origin of the goods considering port facilities, regulations, specific transportation conditions, charges and possible sanctions. definite and specific being

51、aware of different ports in the same name48語言資格考試PPT5.4 Shipment clause in contractlPartial Shipment the commodities under a contract are to be shipped in more than one lotlReasons for partial shipment the lack of means of conveyance shipping space unavailable the limitation of loading or unloading facilities at the port of shipment or destination the restriction of market capacity production ability 49語言資格考試PPT5.4 Shipment clause in contrac

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