Transportation and Shipping Letter

I.

Road, Rail, and Air transport The three main methods of transporting goods, a part from shipping which we will deal with in a separate section are read, rail and air. A. Characteristic Road transport is cheaper and more direct than rail, the advantages include door- to door service quick loading and unloading in container, and the use of roll on roll off (ro-ro) facilities on ferry crossings, when the truck can drive onto and off the ferry or a semi trailer can be driven onto a ferry by one truck and riven off at the destination dock by another. Rail transport tends to be more economical than road transport for BULK CONSIGNMENTS (e.g. oil, grain and coal). Thee are often links between road and rail carriers, e.g. many of the European services which use the Channel Tunnel. Air transport: some goods lose value or deteriorate over a short period of time, e.g. newpapers and flowers. For this kind of consigment air transport is used for speed, particulary over long distances. Insurance tends to be cheaper as consignments spend less time it transit. However, in the case of bulk consignments, air can be much more expensive than other forms of transsport as charges are by weight (airfreight tonnes) or volume, whichever is the greater cost.

B. Documentation Road transport : a road consignment note (CMR) is the main document used in road transport. It is issued by the carrier and is the CONSIGNORS (person sending the goods) RECEIPT. It usually states that the goods are in good condition when the carrier receives them, but if there is something wrong with them, there may be a clause which states what this is. There are three original copies. Rail transport is covered by a RAIL CONSIGNMENT NOTE (CIM). Like a CMR, it is a receipt and not a document of title.

Air transport: the main document used in air transport is the AIR WAYBILL, which consists of twelve copies one is sent to the airline, one to the consignot and one to the consignee, each being accepted as originals. The other copies are sent to customers and handling. Unlike the bill of landing (page 198), the air waybill of receipt and cannot be transferred to another person. It acknowledges that the goods were received in apparent good order. C. General Consignment notes and air waybills are obtained from the freight company by the consignor (sender) filling out an instructions for despatch form and paying the freight charges. Charges are calculate by size (volume), weight, or value and sometimes also risk. Most foreign companies are private carriers, and are responsible for taking proper care of the goods getting them to their destinatio on time. Correspondence in transport is generally between consignors and freight companies, or consignors and forwading agents, who send goods on behalf of consignor. Customers are kept infrmed about consigents y means of advice notes, which can be sent by email or mail.

D. Example of the letter

In this example Mr cliff of homemakers the furniture manufacture we meet in earlier units, ask for a quotation to deliver to customer, R. Hughes and son Telephone+:4 4 @) 2920 4972l crr lw Fax: +44(0\2920 49937 FACSIMILE MESSAGE To Cartiers Ltd Fax 02920498315 From R. Cliff Date 10 November 20Subject Quotation for Swansea delivery Pages 1 Please vote for collection from the above address and delivery to: R. Hughes & Son Ltd, 21 Mead Road, Swansea. 6 divans and mattresses , 700cmx 480cm 7 book case assembly kits packed in strong card board boxes, each measuring 14 m3 4 coffee-table assembly kits, packed in strong card board boxes, each measuring 10 m3 4 arm chairs 320x190x 260cm

The divans and armchairs are fully protected against knocks and scratches by polythene and corrugated paper wrapping, and the invoiced value of the consignment is f 4,660.50. I would appreciate a prompt reply, as delivery must be made before the end of next week. Yours faithfully Richard Cliff Director

Example II CARTNERS LTD 516-519 CATHAYS PARK.CARDTFF CF1 9UJ Telephone+ 44 @)2929 82159/7 I / 9 Facsimile +44 @)2920 4983t5 To : R. Cliff Fax: 29 20 49937 From: H.Weldon(Ms) Subject: Quotation for Swansea delivery Date: 10 November 20Page(s): 2 Dear Mr Cliff In reply to the fax you sent today, we can quote t272.20 for picking up and Delivering your consignment to the consignee's premises This includes loading and unloading, plus insurance, and is valid with immediate effect until 14 December 20-, If you would like to go ahead, please complete the Despatch Note with this fax, and let us know two days before you want the delivery to be made. Our driver will hand you a receipt when he collects the consignment.If you have any queries, please do not hesitate to contact me. H. Welldon H.Weldon(Ms)

II.

SHIPPING
A. TYPES OF VESSEL

A variety of vessels are used to transport goods:

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Bulk carriers transport bulk consignments such as grain, wheat, and ores. Tankers Transport liquid bulk Consignments usually oil Container vessel have special lifting gear and storage space for the containers (1arge steel boxes) that they transport. Passengers vessel cargoes concentrate on Cargoes but also carry passengers. They offer more facilities for loading and unloading than passenger liners. Passenger liners follow schedule routes and Concentrate on passenger services but can also carry cargo. Roll-on-roll-off( Ro-Ro)ferries are vessels Constructed with large doors at each end so that cars and trucks can drive on at one port and off at another without having to unload and reload their cargo.

Lighters are used for taking goods from a port out to a ship, or vice versa.They can also do the same work as a barge.

Barges are large flat-bottomed boats which are used to transport goods inland along rivers and canals

B. THE SHIPPING ORGANIZATIONS

The Shipping Conference The Shipping Conference is an international organization of ship owners who meet periodically to set prices for transporting good or passengers. There are several advantages for their customers. The costs of shipping are stead they do not fluctuate over a short period, and universal, the same price is quoted by all members. Also vessels registered with the Shipping Conference keep to scheduled routes, so booking can be made sometime in advance. Customers can claim discount by shipping in bulk or regular shipment. The kind of ship, like tramp, not registered with the shipping conference. They travel on unscheduled routes, picking up and delivering cargo. The airline industry has with name International Air Transport Association (IATA)

The Baltic Exchange The Baltic exchange function as a freight market which offer facilities for exporter to carter ship and aircraft through shipbrokers work on a commission and specialists with a knowledge of the movement of ships and aircraft and the most competitive rates available at any one time. Ship listed on the Baltic exchange do not run on scheduled routes and freight charges vary from company depending on supply and demand. Telephone, fax, or cable are used for speedy communication between hirers and brokers, and brokers and owners and letters to confirm transaction.

C. SHIPPING DOCUMENTATION -

Freight account A freight account is an invoice sent by the shipping company to exporter stating their charges.

Standard shipping note A standard shipping notes is a document completed by the exporter. It is sent to the forwarding agent, an Inland Clearance Depot or the docks. It is

used as a delivery note or receipt and gives information about the goods. When the goods are delivered to the docks the driver hands over copies to the shipping company. One copy goes with the goods to the consignee, two are for customs, one remains at the dock office of the carrier, and one is used by the shipping company to prepare the bill of lading. Bill of Lading Bill of lading is the most important document in shipping and describe s the consignment, its destination and who is it for. It can be a document of title, it gives ownership of the goods to the person named on it. Bill of lading can be made out singly or in signed sets of two, three, or more original copies with further signed copies kept for record. A shipped bill of lading is sign when the goods have been loaded onto the ship. Bill of lading are marked clean to indicate that the consignment was taken on board in good condition. Letter of indemnity Letter of indemnity is used if the bill of lading is lost or missing. The importer gives details of consignment on company headed paper, and confirms that they wiII be responsible for the debts to the carrier against their assets Packing list This gives details of the consignment. Banks use them in letter of credit transactions and the customs some countries insist on them. D. SHIPPING LIABILITIES The Hamburg Rules of 1978 extend the shipping companies'liability for damage or delay to goods in their charge,unless they can prove they took aII measures to avoid problems. To be safe, most companies insure their consignment under all risks (ar) cover, which protects them against most contingencies but special war insuranceis necessary for particularly dangerous zones. E.FORWARDING AGENTS Forwarding agents are used to arrange both import and export shipments. In the case of export shipments, their services include collecting the consignment, arranging shipment and, if required, packing and handling, also all documentation, includlng making out the bill of lading, obtaining insurance sending commercial

invoices and paying the shipping company for their clients. They are involved in the logistics of transportation, finding the most effective and economical route. They also inform the importer's forwarding agent that the shipment is on its way by sending an advice note. The importer's forwarding agent, in turn, informs the client, sends the goods on, or arrangesf or them to be stored until collected. Many forwarding agents in importing countries also act as Clearing agents, ensuring that the goods are Cleared through customs and sent to the importer Because forwarding agents handle large numbers of shipments, they can use consolidation and collect consignments for the same destination and get competitive group page rates for sending several consignments in one shipment.

III. CONTAINER SERVICE A. Containers Containers are large metal boxes with two basic lengths of 20ft (6.rm) and 40ft (12.2m). They are 8ft (2.4m) wide and 8ft 6in (2.6m) high. The cubic capacity of a 20ft container is 33.3m3 and of a 40ft container, 66.9m3.A zoft container can carry 20 tons and a 40ft one 26 tons. They can be loaded from the top, front, or side Special equipment is needed to move them. There are various types of container for carrying individual items, bulk goods such as grain or sugar, or liquids such as oil and chemicals. Containers for carrying perishable goods are refrigerated. Container stowage is rated in units called Tue, with a 20ft container equal to 1 tue and a 40ft one equal to 2 tue. Containers may be filled as a FULL C ONTAINER LOAD (FCL), which is charged at a'box' rate no matter what its weight or volume. However, shippers or forwarding agents can load smaller consignments from different exporters into a single container. This is known as CONSOLIDATION or GROUPAGE, and each consignmen its charged as a LESS THAN FULL CONTAINER LOAD (LCL). Most ports have facilities for loading

and unloading containers. Once a container leaves the ship, it is sent by rail and or road to the consignee. Container bases for imports are known as CONTAINER FREIGHT STATIONS( CFS). B. Documentation - For exporting goods The usual documentation for goods to be exported by container is a CONTAINER WAYBILL. This is not a document of title,but can be used to transfer the goods from one method of transport to another, e.g truck to ship, and ship to train. However, container shipments can also be covered by a multimodal bill of lading. Goods covered by these documents are collected at inland clearance depots( icds) and then sent on to their flnal destination. A bill of lading can be used as it is in ordinary shipments, with the usual conditions applying, e.g for a clean shipped bill, naming the port of acceptance(where the goods have been loaded) and port of delivery (where the goods will be unloaded) the shipping company only accepts responsibility for the goods while on board ship. But if a combined transport bill is used, the place of acceptance and place of delivery may be covered which means the shipping company accepts door-to door responsibility. NON- NEGOTIABLE WAYBILLS are also used, but unless instructed, banks will not accept them as evidence of shipment, and they are not documents of title which can be transferred. Although waybills do not have ciauses relating to responsibility printed on the back of them, as blils of lading do, container companies will accept the usual liabilities as applying to a waybill.
- For importing goods

A freight account is needed if the sea-freight is to be paid in the UK, and this is accompanied by an arrival notification form, which advises the importers that their goods are due On claiming the goods, the customer has to show a customs clearance form, which allows the goods to be taxed, copies of the certificated forigin, and if necessary a COMMERCIAL INVOICE, an import licence and a health certificate for food or animal imports. The bill of lading or waybill also has to be produced to prove ownership of the goods, or if 1ost a letter of indemnity. Customs issue an our of charge note once the goods have been cleared by them.

This procedure is used for all forms of importation, not only those in which containers are used. The amount of documentation required is one of the reasons why clearing agents are employed by either exporters to get their goods accepted quickly in a foreign country or importers, to clear their goods in their own country.
IV.

POINTS TO REMEMBER Road rail, and air transport

1. In road, rail, and air transport the choice of method depends on whether the main

consideration is speed direct delivery or economy These considerations obviously relate to the type of consignment involved.
2. The consignment note is the main form of documentation used in road and rail

transport, and the air waybill in the case of air transport. They are receipts not documents of title. And therefore not negotiable. Shipping
1. There are various types of vessel available to Carry different goods, e.g. bulk

carriers, tankers, and container vessels.

2. Shipping companies can either belong to.The

Shipping Conference, an

international organization which sets prices for transporting good so passenger so, get ships on Baltic Exchange, where ships and air craft can be chartered through brokers.
3. The bill of lading is the main form of documentation used in shipping. It can be a

document of title. It may be clean or claused, terms used to indicate whether the goods were in perfect condition when taken on board or if there was something wrong with them. Container services A convenient method of transporting many types of consignment is containers (large metal boxes) which are taken to the docks and then loaded on to container vessels. Small consignments from different exporters can be loaded into a single container. For documentation, container companies usually use either container waybills or multimodal bills of Iading.