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1、Chapter 4 International Cargo Transportation,4.1 Modes of Transportation （运输方式）,4.2 The Shipment Clause （装运条款）,4.3 The Shipping Document （装运单据）,4.1 Modes of Transportation,When a company is to select modes of transportation, generally speaking, the important factors he has to consider are time and c
2、ost. The major modes are ocean transport, land transport, air transport, pipelines and land bridge transport.,Although there are many methods of transportation in international trade, ocean transportation is still the most important mode at present. It accounts for 80% of international transport. It
3、 is not confined by roads and railways, and it is considered a cheap mode of transport for delivering large quantities of goods over long distances. But ocean transport is slow, vulnerable to bad weather and less punctual if compared with road or air transport.,1. Ocean transport,According to the ki
4、nd of cargo they carry, the ships used in ocean transport are briefly classified into oil tankers and dry cargo ships. Dry cargo ships include General Cargo Vessel, Bulk Vessel, Ore Carrier, Timber Carrier，Refrigerated Vessel, Container Ship, Roll-on/Roll-off ship, etc. Tankers include Oil Tanker an
5、d Liquefied Gas Carrier.,1. Ocean transport,As far as ocean transportation is concerned, goods transport is mostly done by liners or tramps. Liner transport （班轮运输） Liner, a short form of Regular Shipping Liner, is a vessel with regular sailings and arrivals on a stated schedule between specific port
6、s. Liner transportation has the standard of calculating freight, the liners freight tariff, the basic rate, and the surcharge or additional and the special discount for freight and so on.,1. Ocean transport （海洋运输）,The liner has a regular line, port, timetable and comparatively fixed freight. The shi
7、p-owner usually leases part of shipping space instead of the whole ship. Liner freight covers loading and unloading charges. The rights and obligations of the carrier and the consignor are based on the B/L drawn by the shipping company.,(1) The main features of liner transport,According to gross wei
8、ght of the cargo: Weight Ton (WT). Cargoes that are charged by WT are marked “W” after the name of article in the tariff.,(2) Freight on liners,According to gross weight or measurement, i.e., choosing the higher rate between the two, which is indicated by “W/M” in the tariff.,According to the measur
9、ements: Measurement Ton (MT). A measurement ton is either one cubic meter or 40 cubic feet, which is indicated by “M” in the tariff.,According to the value of the cargo: Cargoes that are charged in this way are indicated by A. V (Ad Valorem) in the liner freight tariff, such goods as gold, silver, c
10、ostly fur and medicine, precision machines, ivory and stone carvings, valuable paintings and all kinds of valuable arts and crafts,(2) Freight on liners,According to gross weight or measurement or A.V., i.e., choosing the highest rate of the three, which is indicated by W/M or A.V.,According to unit
11、, such as motorcars, trucks, live animals, etc.,As agreed by the parties concerned.,Payment of various surcharge or additional fees, such as Bunker adjustment factor (BAF), Heavy Lift Additional, Over Length Additional, Tank Cleaning Charge, Port Congestion Surcharge, etc.,(3) surcharge or additiona
12、l fees,Total freight=Basic Freight + Additional Freight The formula of calculating the liner freight is: F=Fb+S=fQ+f (S1+S2+Sn) Q=fQ (1+S1+S2+Sn) Fb_basic freight S_surcharges f_the rate of the basic freight Q_freight ton S_the rate of the Surcharge,(4) Calculation of liner freight,A set of instrume
13、nts are to be exported from Dalian to London, gross weight is 10 metric tons, US$200 per Freight Ton, calculating on WT. Port Surcharge is US$20 per Freight Ton and 30% Heavy Lift Additional is charged for the set. Please calculate the liner freight. Solution: The basic freight： 20010 = $2000 Additi
14、onal fees： 200030%+2010$800 Total freight： 2000+800=$2800,(4) Calculation of liner freight,Example 1,One company in China exported the goods of Diesel Engines. Total gross weight is 5.65M/TS, and measurement is 10.676 cubic meters. The goods are transported from Qinghuangdao to Sudan by s.s Dongfeng
15、 and transshipped in Hong Kong. Please calculate the liner freight.,(4) Calculation of liner freight,Example 2,Other information:,The diesel engines: Class 10, standard: W/M; Freight from Qingdao to Hongkong $22; Freight from Hongkong to Honghai $95; transshipment surcharge in Hongkong $13; port con
16、gestion surcharge in Sudan 10%.,Solution: 10.676 cubic meters 5.65 M/TS Total freight =Basic freight + additional fees =(22+13+95+9510%)10.676 =$1489.3,Shipping Conference Freight Tariff Liners Company Freight Tariff Cargo Owners Freight Tariff Freight Tariff of Both Parties,(5) Liners freight tarif
17、f,I Voyage charter transport,II Time charter transport,III Bareboat charter (or demise charter),A tramp is a freight-carrying vessel which has no regular route or schedule of sailings but trading in all parts of the world in search of cargo, primarily bulk shipments. Tramps usually refer to charter
18、transportation, which can be classified into:,Tramps (charter transport),A voyage charter is the hire of a ship for a particular voyage. It includes: single voyage charter return voyage charter successive voyage charter.,I Voyage charter transport,Time charter means the charterer rents the ship for
19、a certain period; the time may be from a few months to a few years. During the period of chartering, the ship is managed, deployed and used by the charterer, who has to bear all expenses, including the loading and unloading expenses and vessel insurance premium etc., at the same time to maintain the
20、 ships seaworthiness.,II Time charter transport,Bareboat charter is also called demise charter, which is similar to time charter. But there are some differences. Unlike the time charter, under the bareboat charter, the ship-owner only provides his charterer with a bare boat during the period of char
21、tering, while the charterer shall employ the crew by himself.,III Bareboat charter (or demise charter),A charter party is a contract signed between the ship owner and the charterer，it includes voyage charter party and time charter party. It involves the name of both parties and the vessel, flag, the
22、 cargo to be carried, the time of the charter, freight, loading and unloading charges, demurrage and the dispatch money, etc. It is especially important to stipulate who will bear the loading and unloading charges in the charter party.,Charter Party（租船合同）,(1) Liner terms: The freight includes loadin
23、g and unloading charges. The ship-owner shall be responsible for loading and unloading. (2) Free out: The freight includes loading charges. The ship-owner is responsible for loading. (3) Free in: The freight includes unloading charges. The ship-owner is responsible for unloading. (4) Free in and out
24、: The ship-owner is neither responsible for loading nor for unloading.,There are four ways to stipulate the loading and unloading charges:,(1)Land transport (2)Air transport (3)Pipelines (4)Land Bridge Transport (5)Container transport,2. Other modes transportation (其它运输方式),Land transport includes ro
25、ad transport and railway transport. Compared with railway transport, road transportation is flexible, cheap and speedy. Motor vehicles can go anywhere a road exists, while railway transport is limited to places on the line of the route; Motor vehicles can go into the warehouse or factory for loading
26、 the goods and take them straight to the unloading point, while the goods transported by rail have to be collected by road from the sender, unloaded at the station and reload on to railway trucks;,（1）Land transport,The roads are provided for all road users and all that is required is the capital cos
27、t of a vehicle and payment of its running costs, while railways have to construct their own permanent way; Roads are faster than railways for short journeys, while railways are good for the transport of large quantities of heavy goods and faster than road transport over long journeys. Road transport
28、 has some disadvantages. For example, if the vehicle cannot be fully used, the cost of using it per mile may be higher. A return load is necessary if the cost per mile is to be minimized; road transport is restricted by traffic congestion and bad weather, while railway transport is not restricted by
29、 these factors.,（1）Land transport,Air transport (or Airfreight) is a quick means of transportation. It is not restricted by the ground conditions. When speed is taken into consideration, this mode will be the most effective and swiftest delivery. Some valuable goods like furs, silks, art goods, fres
30、h flowers and fashionable or seasonable articles that have a short selling life are usually transported by air. Airfreight rates are based on actual weight for heavy cargo or measurement for large volume cargo and not affected by the value of the goods. High-speed means shorter periods of insurance
31、cover are required than for sea transport, therefore insurance charges are relatively cheaper.,（2） Air transport,Pipelines are special form of transportation mainly used to move gasoline, crude oil, and natural gas. Now it can move different petroleum products through a pipeline at the same time. So
32、me solids have also been moved by pipeline. For example, the Cleveland Electric Company uses a great deal of coal, when the coal was ground into a powder that was mixed with water to form a slush, the slush was hydraulically moved through the pipeline from west Virginia to Cleveland, where it was dr
33、ied and burned.,(3) Pipelines,Land Bridge Transport can connect the ocean transport on the two sides of the land by the railways or roads which run across the continent. The mode uses the container as a medium. The two main land bridges in the world: Siberian land bridge and American land bridges.,（
34、4） Land Bridge Transport,In international cargo transport, container transport is a modern form of distributing merchandise in container and it is suitable for ocean, rail and multi-modal transport. Goods transported by container include FCL (Full Container Load) and LCL (Less than Container Load).,
35、（5）Container transport,(1) Rates can be generally formulated based on container capacity and the origin and destination of the merchandise. This is irrespective of the commodity inside the container. (2) Another kind of rate will embrace the inland transport cost, applying to full container load (FC
36、L). (3) A further type of container rate is based on the commodity inside the container. Hence the rate will vary with the commodity in the container. (4) A consignment comprising various LCL cargos is assembled and loaded into a container, with each individual LCL attracting a separate rate.,As for
37、 the calculation of container freight, there are several options:,International multi-modal transport is a brand new mode of transport. It involves at least two modes of transport，such as LandSea, LandAir, Sea-Air and TAT(Train-Air-truck) etc., on the basis of a multi-modal transport contract, namel
38、y MT contract.,（6）International Multimodal Transport,Transport documents, i.e., combined transport documents shall cover the whole journey; It includes two or more different modes of successive transportation; It shall be international transportation; The multimodal transport operator shall be respo
39、nsible for the whole journey; The whole journey shall use a single factor rate.,The basic conditions of international multimodel transport：,In international trade, most of the goods are carried by sea. Shipment clause of a sales contract includes: 1. Time of Shipment（装运时间） 2. Port of Shipment and Po
40、rt of Destination（装运港和目的港） 3.Time of loading and unloading （装卸时间） 4.Partial Shipment and Transshipment（分批装运和转运）,4.2 The Shipment Clause（装运条款）,Ways of stipulating the time of shipment (1) Stipulate the definite or fixed date. (2) Stipulate a fixed period of time. (3) Stipulate shipment is to be made
41、some days or months after receipt of the L/C.,1. Time of Shipment（装运时间）,According to the relevant stipulations of Uniform Customs and Practice for Documentary Credit 600, Expressions such as “prompt“, “immediately“, “as soon as possible“ and the like should not be used. If they are used, banks will
42、disregard them. Since there are no definite explanations to these expressions, confusion or dispute may occur.,1. Time of Shipment（装运时间）,Generally speaking, there are three ways of setting port of shipment and destination. (1) One port of shipment and one port of destination are set. (2) Two or more
43、 ports of shipment and destination are stipulated in the contract. (3) Optional ports are set. At the time of negotiation, if the port of shipment or destination is hard to decide, optional ports can be used. For example, CFR London, optional Hamburg/ Rotterdam.,2. Port of Shipment and Port of Desti
44、nation （装运港和目的港）,When deciding the port of destination or unloading port, we should pay more attention to the following points： (1) Do not choose a port in a country with which our government doesnt permit to do business. (2) The stipulation on the port of destination should be definite and clear. W
45、ed better not use ambiguous terms, such as European Main Ports, African Main Ports.,2. Port of Shipment and Port of Destination （装运港和目的港）,(3) If the goods have to be transferred, we should stipulate, transshipment allowed in the contract. (4) The port of destination shall be the one at which the ves
46、sel may safely arrive and be always afloat. (5) We usually do not accept an inland city as a place of destination.,2. Port of Shipment and Port of Destination （装运港和目的港）,In international trade, most of bulk commodities are shipped by charter. Under voyage charter, the time of loading and unloading ag
47、reed upon between the ship-owner and charterer is termed “lay days”. When the ship owner is free in and out, lay days are usually set down. If the charterer fails to load or unload the goods on time, he will be punished by paying certain amount of money called demurrage to the ship-owner, because th
48、e ship owner suffers losses resulting from delay in sailing.,3.Time of loading and unloading （装卸时间）,But if the charterer advances loading or unloading, the ship owner will give him money award called dispatch money. Usually dispatch money is half of demurrage.,3.Time of loading and unloading （装卸时间）,
49、There are two ways of fixing the lay days: One is to fix a period of many days, for instance, 12 days to load, and the other is to fix loading rate, for instance, to load 1000m/ts per day.,(1)Days or running days (Consecutive days) This refers to a calendar day of 24 consecutive hours, usually from midnight to midnight.,3.Time of loading and unloading （装卸时间）,As to the calculation of a day there are three methods:,(2)Weather working days of 24 hours This refers to