Unit 6

TRANSPORTATION
 1. Kinds of packing
• Carton
• Bale
• Container
• Drum
• Crate
• Case
• Barrel
• Sack
 2. Kinds of goods
• Gearboxes
• Meat
• Tyres
• Crockery
• Cement
• Wine
• Flowers
 3. Common symbols in transport

• Fragile
 3. Common symbols in transport

• Keep Dry
 3. Common symbols in transport

• This Side Up
3. Common symbols in transport

• Heavy
3. Common symbols in transport

• Do Not Freeze
3. Common symbols in transport

• Do Not Stack
 3. Common symbols in transport

• Explosives
• Symbol (exploding bomb): black on orange bottom, the
number "1" in the bottom corner.
3. Common symbols in transport

• Flammable liquids
• Symbol (Flames: black or white on red)
the number "3" in the bottom corner.
3. Common symbols in transport

• Flammable solids
• Symbol (flames): black on white background with seven
vertical red stripes, the number "4" in the bottom corner.
 3. Common symbols in transport

• Substances liable to spontaneous combustion

• Symbol (flames): black on white and red background, the
number "4" in the bottom corner.
 3. Common symbols in transport

• Oxidizing substances
• Symbol (flames above a circle): black on yellow
background, the number"5.1" in the bottom corner.
• Toxic substances
• Symbol (skull with crossing bones): black on white background, the number "6" in the
bottom corner.
 4. Road transportation
• Types of lorry
-Pick-up lorry
-Freight car
-Dumper truck
-Articulated lorry
-Tip-car
 4. Road transportation

- 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
 4. Road transportation
• Goods transported by road
-Building materials
-Wood products and furniture
-Metal products
-Machinery and equipment
 4. Road transportation
• Advantages of road transportation
-Low freight rates
-Continuous operations on 24-hour basis
-No transhipment – door-to-door delivery
-Flexibility in regular or special deliveries
 4. Road transportation
• Disadvantages of road transportation
-Low capacity of load
-Restrictions on weight and size
-Delays due to bad weather
-Often return empty to point of departure
-Security problem
 5. Rail transportation
• Types of rail transport
-Trains
-Trolleys
-Trams
-Hopper wagon
 5. Rail transportation
• Goods transported by rail
-Bulk liquids
-Dry cargo
-Coal
 5. Rail transportation
• 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
 5. Rail transportation
• Advantages of rail transportation
-Rarely affected by weather conditions
-Quicker and cheaper for distances over 200 km
 5. Rail transportation
• Disadvantages of rail transportation
-Transhipment to other forms of transport
essential
-Inflexible timetabling
 6. Sea transportation
• Types of sea transport
-Freighter
-VLCC
-RoRo ferry
-Boats
-Ships
-Canoes
-Submarines
 Note
• SS – Steam Ship

• MV – Motor Vessel

• MS – Motor Ship
 Shipping documentation
Shipping Documents: Transport Document,
Insurance Certificate, Official or Legal Documents
• Transport Documents: Bill of Lading (ocean or multi-
modal or Charter party
• Insurance documents: Insurance policy or Certificate
• Official Documents: License, Embassy legalization,
Origin Certificate, Inspection Cert , Phyto-sanitary
Certificate
 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
• NOR
 Bill of ladding
A steamship company document that includes
a contract for delivery of the merchandise,
convey title to the goods, and is a receipt for
the merchandise. It indicates details of
weight, freight costs, and size of cargo.
 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”
 B/L
“full set on board ocean bills of lading to order
shipper, blank endorsed”
 Average
In marine insurance, in the case of a partial loss, or
emergency repairs to the vessel, average may be
declared. This covers situations, where, for
example, a ship in a storm might have to jettison
certain cargo to protect the ship and the remaining
cargo.
“General average” requires all parties concerned in
the venture (Hull/Cargo/Freight/Bunkers) to
contribute to compensate the losses caused to
those whose cargo has been lost or damaged.
'Particular Average' is levied on a group of cargo
owners and not all of the cargo owners.
 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
 6. Sea transportation
• Goods transported by sea
-Bulk goods
-Scrap metal
 6. Sea transportation
• Advantages of sea transportation
-Very high capacity of load
-Low freight rates
-World-wide transport operations
-Continuous operations on 24-hour basis
 6. Sea transportation
• Disadvantages of sea transportation
-Transhipment to other forms of transport essential
-Inflexible timetabling
-Delays due to bad weather
-High capacity means disproportionate increase in
transit time
-Heavier packaging
-Slow speeds
-Low speed over long distances
- Less frequent services
7. Air transportation
 7. Air transportation
• Types of air transport
-Seaplanes
-Passenger jets
-Helicopters
-Airships
-Hot-balloons
 7. Air transportation
• Goods transported by air
-Platinum
-Medical supplies
-Fashion goods
-Fresh flowers
 7. Air transportation
• 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
 7. Air transportation
• Advantages of air transportation
-High travelling speed
-High speed delivery
-Cheap insurance because goods are at risk for
shorter periods
-World-wide transport operations
 7. Air transportation
• Disadvantages of air transportation
-Transhipment to other forms of transport
essential
-Restrictions on weight and size
-Inflexible timetabling
-Delays due to bad weather
-Operating and maintenance costs are high
-High freight rates
 8. Factors to consider when choosing
modes of transport
• Nature of the goods
-Dimensions
-Weight
-Value
-Fragility
-Perishability
 8. Factors to consider when choosing
modes of transport
• The time factor: Fast transport
-Reduce distribution cost
-Reduce cost of finance tied up in transit
-Require less insurance cover
-Means earlier use/ resale of goods
8. Factors to consider when choosing modes of
transport
• Freight rates
-Sea freight rates
-Air freight rates
 Group E – Departure
• EXW – Ex Works (named place): the seller
makes the goods available at his premises.
• the buyer is responsible for all charges
 Group F – Main carriage unpaid
• FCA – Free Carrier (named place)
• FAS – Free Alongside Ship (named loading
port)
• FOB – Free On Board (named loading port)
 Group C – Main carriage paid
• CFR – Cost and Freight (named destination
port)
• CIF – Cost, Insurance and Freight (named
destination port)
• CPT – Carriage Paid To (named place of
destination)
• CIP – Carriage and Insurance Paid to (named
place of destination)
 Group D – Arrival
• DAF – Delivered At Frontier (named place)
• DES – Delivered Ex Ship (named port)
• DEQ – Delivered Ex Quay (named port)
• DDU – Delivered Duty Unpaid (named
destination place)
• DDP – Delivered Duty Paid (named
destination place)