Delivery of Goods

1
Chapter 4

• Delivery of Goods

2

• Delivery Conditions
• Delivery Vs. Shipment
• Partial shipments transshipment
• Shipment Clause
• Transportation Modes
• Ocean transport
• Rail transport
• Road transport
• Air transport
• Container transport
• Multi-modal transport land-bridge transport

3

• Delivery of the goods refers to the act of the
  seller transferring the title of the goods to the
  buyer in accordance with the stipulations in the
  contract.
• Shipment means the loading of goods.

4

• Delivery conditions include
• the time of delivery, and in some cases
• including the time of loading and unloading
  operations,
• the port of shipment,
• the port of destination,
• partial shipments and transshipment, etc.

5

• Time of Delivery
• The time of delivery refers to the time limit
  during which the seller shall deliver the goods
  to the buyer at the agreed place by the agreed
  methods.
• Ways of delivery
• ? Physical delivery or actual delivery the
  seller delivers the goods into the actual
  possession of the buyer, for example, delivery of
  the goods under EXW and DES trade terms.

6

• ? Constructive delivery or symbolic delivery
  after the seller loads the goods on board the
  vessel and presents the whole qualified documents
  which include certificates of title to the goods,
  the seller is said to have finished delivery of
  the goods. It is unnecessary for the seller to
  guarantee the goods to be received by the buyer
  actually. In the actual delivery contract, there
  are two different time limits, one is the time of
  shipment, the other is the time of delivery. In
  the contract under F and C group trade terms, the
  time of shipment and the time of delivery belong
  to the same concept while in the contract under D
  terms , they are different.

7

• Delivery vs. Shipment
• Under FOB, CFR, CIF and FCA, CPT, CIP
• Delivery Shipment

8

• UCP500 Article 46. a.
• Unless otherwise stipulated in the Credit, the
  expression "shipment" used in stipulating an
  earliest and/or a latest date for shipment will
  be understood to include expressions such as,
  "loading on board," "dispatch," "accepted for
  carriage," "date of post receipt," "date of pick-
  up," and the like, and in the case of a credit
  calling for a multi-modal transport document the
  expression "taking in charge."

9

• Delivery in a certain month
• Delivery in several months
• Delivery at the end of a certain month, or before
  a certain date
• Delivery within xx days after receipt of L/C
• Others

10

• Delivery in a certain month
• Shipment during March 20
• Shipment during June 20
• Delivery in several months
• Shipment during Feb./Mar. 20
• Shipment during Feb./Mar./Apr. 20

11

• Delivery at the end of a certain month, or before
  a certain date
• Shipment at or before the end of May 20
• Shipment not later than the end of June 20
• Delivery within xx days after receipt of L/C
• Shipment within 45 days after receipt of L/C

12

• Others
• Shipment on certain date
• e.g. Shipment on 5th March
• Prompt shipment/ Immediate shipment/ Shipment as
  soon as possible
• Shipment under certain situations
• e.g. subject to shipping space available
• subject to approval of export license

13

• Place of Delivery
• Place of delivery refers to the prescribed place
  where the goods are to be delivered to the buyer
  or the carrier.
• A Port of shipment
• B Port of destination

14

• Partial shipments Transshipment
• In case of an export covering a large amount of
  goods, it is necessary to make shipment in
  several lots by several carriers sailing on
  different dates. This is done because of
• the limitation of shipping space available,
• poor unloading facilities at the port of
  destination,
• dull market season, or
• possible delay in the process of manufacturing
  the goods, etc.
• And this is allowable only if the clause Partial
  shipment to be allowed is agreed upon in the
  sales contract. If partial shipment is not
  allowed, the clause No partial shipment or the
  like should be given in the contract.

15

• Transshipment in maritime transport is the
  movement of goods in transit from one carrier to
  another at the ports of transshipment before the
  goods reach the port of destination.
  Transshipment is necessary when
• ships going directly to the port of destination
  are not available, or
• the port of destination does not lie along the
  sailing route of the liner,
• transshipment is allowed when the sales
  contract has a clause like transshipment to be
  allowed.

16

• Shipment Clause
• Shipment during Oct./Nov./Dec.20---, with partial
  shipments and transshipment allowed.
• Shipment during Jan./Feb.20---in two about equal
  lots.
• Shipment during Jan./Feb.20---in two equal
  monthly lots( in two equal monthly shipments),
  transshipment to be allowed.

17

• During Mar./Apr. in two shipments, transshipment
  is prohibited.
• During Mar./Apr. in two equal monthly shipments,
  to be transshipped at Hong Kong.
• Shipment during May from London to Shanghai. The
  sellers shall advise the Buyers 45 days before
  the month of shipment of the time the goods will
  be ready for shipment. Partial shipments and
  transshipment allowed.

18

• Modes of Transportation
• Ocean Transport (Sea Transport)
• Ocean Transport is the most widely used mode
  of transportation in international trade, with
  advantages of easy passage, large capacity and
  low cost. However, it is slow, vulnerable to bad
  weather and less punctual if compared with road
  or air transport.

19

• Kinds of vessels
• General cargo vessels ???
• Oil tankers
• Container vessels
• Oil/Bulk/Ore (OBO) vessels
• Ro/Ro vessels ???
• LASH (Lighter Aboard Ship)???
• Refrigerated ship ???
• Timber ship ???

20

• Liner transport
• and charter transport
• According to the ways of operation, ocean
  transport can be divided into liner transport and
  charter transport. Comparatively speaking, liner
  transport prove to be more economical of
  international cargo distribution.

21

• A liner is a vessel that operates over a regular
  route, stops at fixed ports according to an
  advised schedule.
• Its freight is relatively fixed with loading
  and unloading charges included. Its suitable for
  cargo of small quantity.

22

• The main features of liners are usually concluded
  by 41
• 4 FIXED fixed line, fixed ports, fixed sailing
  schedule and comparatively fixed freight
• 1 RESPONSIBLE The carrier is responsible for
  loading and unloading operations, i.e. , gross
  terms.

23

• A tramp is a freight-carrying vessel which has no
  regular route or schedule of sailings. It is
  first in one trade and then in another, always
  seeking those ports where there is a demand at
  the moment for shipping space.

24

• The shipper charters the ship from the ship owner
  and uses it to carry the goods. It falls into 3
  kinds
• Voyage charter/ Trip charter
• Time charter
• Bare boat charter/ Demise charter

25

• Voyage charter It includes single trip charter,
  return trip charter and consecutive voyages.
  According to the route stipulating in the charter
  party , the ship owner is responsible for
  delivering the goods to the port of destination
  and for managing the ship as well as bearing all
  expenses.
• Voyage charter is used the most frequently, it is
  suitable for big lot of bulk goods, such as ore,
  grants, oil and chemical materials.

26

• Time charter The charter party charters the ship
  for a period of time during which the ship is
  deployed and managed by the charter party. A
  series of work, such as loading, unloading,
  stowing and trimming and the so-caused fuel
  expenses, etc., should be borne by the charter
  party. The ship owner should bear the wages and
  board expenses of the crew and be responsible for
  seaworthiness during the period of chartering and
  the so-caused expenses and the vessel insurance
  premium.

27

• Demise charter Demise charter is also called
  bare boat charter, which belongs to time charter,
  but there are some differences as to time
  charter, during the period of chartering, the
  ship owner provides the charter party with crew,
  while as to bare boat charter, the ship owner
  only provides the charter party with a bare boat,
  the charter party should employ the crew himself.

28

• Freight
• Liner Freight
• Voyage Charter Freight
• Time Charter Rent

29

• Liner Freight
• Bulk transport
• ? includes the freight in the sea and loading
  and unloading fees.
• ? is calculated according to liners freight
  tariff.
• Container transport

30

• The basic standards for calculating freight are
  stipulated as follows
• ? According to gross weight, i.e.,
• weight ton, which is indicated by W in the
  tariff.
• ? According to volume, i.e., measurement ton,
  which is indicated by M in the tariff.
• ? ? are two forms of freight ton.

31

• ? According to value of the cargo, i.e., a
  certain percentage of FOB price which is
  indicated by A.V. (Ad Valorem) in the liner
  freight tariff.
• ? According to gross weight or volume, i.e.,
  choosing the higher rate between the two, which
  is indicated by W/M in the tariff.

32

• ? According to gross weight or volume or A.V.,
  i.e., choosing the highest rate of the three,
  which is indicated by W/M or A.V.
• ? According to gross weight or volume, and then
  plus a certain percentage of A.V., which is
  indicated by W/M plus A.V.

33

• ? According to the number of the cargo. E.g.,
  per head for big animals, per unit for
  automobiles.
• ? According to the temporary agreement entered
  into between the ship owner and the consignor,
  open rate sometimes is decided temporarily.
• In practice, W, M and W/M are frequently
  used for usual cargoes, while A.V. is used more
  for valuable goods.

34

• The main surcharges in liner freight includes
• Bunker adjustment factor (BAF)
• Heavy lift additional
• Long length surcharge
• Direct additional
• Transshipment surcharge
• Port surcharge
• Port congestion surcharge
• Optional fees
• Alternation of destination surcharge
• Deviation surcharge.

35

• In addition to the above-mentioned surcharges,
  ice surcharge, cleaning tank surcharge, currency
  adjustment factor, fumigation surcharge etc. are
  sometimes included.

36

• Example
• A company exports 15 cartons of diesel
  engines, the total gross weight is 5.65 M/T, and
  total volume is 10.676 m3, the lot is shipped
  from Qingdao to Sultan port, transported in H.K..
  How much is the freight?

37

• In Goods Levels, diesel engines are in level 10,
  and should be calculated with W/M
• According to the liner freight tariff,
  the freight is USD 22 per freight ton from
  Qingdao to H.K.. The transport fees in H.K. are
  USD 13.
• According to the liner freight
  tariff, the freight is USD 95 per freight ton
  from H.K. to Sultan.

38

• Finally, it is found that Port Congestion
  Surcharge would be collected in Sultan port, and
  the rate is 10.
• As measure ton for the lot is 10.676
  freight ton, while weight ton is 5.65 freight
  ton, the former one is bigger and should be
  selected.

39

• The freight per freight ton should be
• USD (22139595x10)USD 139.5
• The total freight
• USD 139.5 X10.676USD 1489.302

40

• Voyage Charter Freight
• ? according to rate of freight
• Freight per unit
• Intaken quantity or delivered quantity
• ? lump-sum freight

41

• The freight may be stipulated in the charter
  party as follows
• ?Freight can be paid in advance
• ?Freight can be paid after the goods have been
  arrived at the port of destination
• ?Part of freight is paid in advance, the rest
  of which is paid after the goods have arrived at
  the port of destination.

42

• Before the charter pays off freight and other
  charges, the ship owner is entitled to refuse to
  deliver the goods, this kind of right is called
  lien.

43

• There are 4 methods to be used to stipulated the
  expenses of loading unloading
• ? gross terms/ liner terms/ berth terms
• The ship owner bears gross terms
• ? free out, F. O. The ship owner is free
• ? free in, F. I. The ship owner is free
• ? free in and out, F.I.O.

44

• ? free in and out, F.I.O. The ship owner is free
  in and out.
• When adopting this method , the interested
  parties should indicate who will bear the
  expenses of stowing and trimming. If they agree
  that the charter party shall be responsible for
  them, the interested parties shall stipulate
  ship owner is free in and out, stowed, trimmed(
  F.I.O.S.T).

45

• The main terms in the charter party include the
  interested parties, name of the ship, description
  and quantity of the shipments, time of
  chartering, freight, loading and unloading
  expenses, time limit of loading and unloading,
  demurrage and dispatch money.

46

• The time of loading and unloading will affect the
  turn-over rate of the ship, and thus, will affect
  the interest of the ship owner. Therefore it is
  the main clause specified in the charter party.

47

• Demurrage (???)
• During the time limit of loading and unloading,
  in case the charter party does not finish the
  work of loading and unloading, in order to
  compensate the ship owner for his losses, the
  charter party should pay certain amount of fine
  for the exceeding time, this is the so-called
  demurrage.

48

• dispatch money (???)
• During the time limit of loading and unloading,
  in case the carrier finishes the work of loading
  and unloading ahead of schedule, then the ship
  owner shall pay certain amount of bonus to the
  charter party, this is called the dispatch money.

49

• dispatch money demurrage x ½

50

• Shipping Documents
• Shipping documents indicate that the goods
  have been loaded on board the vessel or have been
  delivered into the custody of the carrier. In
  constructive delivery, shipping documents are the
  main function for the seller to prove that he has
  fulfilled the duty of delivery, as well as for
  the buyer to pay the purchase price.

51

• Ocean Bill of lading
• the document for sea transport is called B/L,
  which is a receipt from the shipping company,
  giving details of a particular shipment.
• The B/L drawn by the shipping company is the
  shipping contract between the carrier and the
  consignor. The rights and obligations of the
  carrier and the consignor are based on the B/L
  drawn by the shipping company.
• Bill of lading, means a document which evidences
  a contract of carriage by sea and the taking over
  or loading of the goods by the carrier, and by
  which the carrier undertakes to deliver the goods
  against surrender of the document. A provision in
  the document that the goods are to be delivered
  to the order of the document. A provision in the
  document that the goods are to be delivered to
  the order of a named person, or to order, or to
  bearer, constitutes such an undertaking. (Hamburg
  Rules)

52

• Roles of B/L
• ?receipt for goods (????)
• ?document of title (????)
• ?evidence of the contract of carriage
• (??????)

53

• receipt for goods
• B/L is issued by the ship owner or his agent
  evidencing the receipt of the goods mentioned in
  B/L.

54

• document of title
• Any lawful holder of B/L may take the delivery
  of the goods from the shipping company against
  B/L, or transfer the title to the goods by
  transferring the B/L from the bank before the
  arrival of the shipment.

55

• evidence of the contract of carriage
• The rights and obligations of the two parties
  are listed on the B/L.

56

• Kinds of B/L
• ? According to whether the goods have been loaded
  on board the vessel, the B/L is divided into
• Shipped B/L (also called on board B/L) and
• Received for shipment B/L (????).
• An on board B/L evidences that the
  goods have been loaded on board a certain
  steamer. In general trade practices, only the
  shipped on board B/L is accepted by banks for
  payment under a letter of credit. The seller is
  responsible to offer on board B/L.

57

• A received for shipment B/L is the evidence given
  by the ship owner to indicate that the goods have
  been received for shipment but have not been
  actually loaded on a particular ship yet.
• It is therefore uncertain whether the goods
  would be shipped or loaded on board a vessel
  within a short period of time.

58

• ? According to whether there are notes on the
  bill of loading, it falls into two kinds clean
  B/L(????) and unclean B/L(?????).
• A clean B/L shows that the goods have been
  shipped on board a vessel in apparent good order
  or condition.
• Unclean B/L are generally marked insufficiently
  packed, carton old and stained, packed in
  damaged condition etc.

59

• A clean B/L is issued to the shipper when the
  goods do not have any exterior defects at the
  port of shipment. Actually on every B/L, there
  are words shipped in apparent good order and
  condition. The carrier will not modify this
  statement if the goods are in good order,
  therefore making the bill of lading clean. The
  carrier undertakes full liability for the goods
  and will carry and deliver them in the same good
  order as he received them. The carrier will be
  liable if the goods are found damaged.

60

• Not all bills of lading which are noted are
  unclean bills of lading. The following kinds are
  not regarded as unclean bills of lading.
• ?The notes do not indicate clearly that the goods
  or packing are unsatisfactory , e.g., old
  packing or old carton etc.
• ?The purpose of the note is to emphasize that the
  carrier shall not be responsible for the risks
  resulting from the quality of the goods or
  packing.

61

• ? According to whether the B/L is transferable,
  it is divided into 3 kinds
• straight B/L (????),
• bearer B/L (?????),
• order B/L (????).

62

• A straight B/L is made out so that only the named
  consignee at the destination is entitled to take
  delivery of the goods under the bill.
• The consignee is designated the shipper. The
  carrier has to hand over the cargo to the named
  consignee, not to any third party in possession
  of the bill. This kind bill of lading is not
  transferable. The shipper cannot pass the bill to
  a third party by endorsement. So the bill is of
  very restricted application. When the goods are
  shipped on a non-commercial basis, such as
  samples or exhibits, or extremely valuable goods,
  a straight bill of lading is generally issued.

63

• A bearer B/L is also called open B/L or blank
  bill of lading. It refers to the bill in which
  the name of a definite consignee is not
  mentioned. There usually appear in the box of
  consignee words like to bearer and the holder
  of the B/L can take delivery of the goods against
  the surrender of B/L.
• Open B/L is rarely used in international trade

64

• An order bill of lading indicates that the bill
  is made out to the order of any person named in
  such a bill. This kind of bill may be transferred
  after endorsement. When the bill is made out to
  order of shipper it is necessary for the shipper
  to endorse the bill either in blank or in full,
  to the consignee to whom he wishes the delivery
  of the goods is to be made. If the shipper does
  not endorse such a bill, he reserves the right to
  dispose of the goods to himself. Often used in
  trade.

65
Case Risk by 1/3 Blank B/L

• A foreign trade corporation A applied to Bank B
  for the issuance of a Credit in favor of C, which
  stipulated that 1/3 original bill of lading made
  out to order should be posted by C himself to the
  Applicant within two days after the cargo is
  loaded. Beneficiary C acted in accordance with
  that and presented the other two copies of the
  original bill of lading together with other
  documents under the Credit for negotiation. The
  Issuing bank made payment as the documents and
  the Credit were consistent with each other, and
  later found, when requesting the payment from
  Corp.A, that A had disappeared after picking up
  the goods with the 1/3 original bill of lading.

66

• ? According to the modes of transport, it can be
  divided into
• direct B/L (????),
• transshipment B/L (????),
• through bill of lading (????).

67

• Direct B/L
• is evidence that the goods are shipped and
  carried by the steamer and transported from the
  port of loading direct to the port of destination
  without transshipment during the voyage. The
  buyer usually prefers such a B/L, because the
  possible cargo damage or losses is usually caused
  by transshipment.

68

• Transshipment B/L
• is a document showing that when there is no
  direct service between two ports, the goods are
  transited by another steamer during the voyage,
  generally at the port of transshipment mentioned
  in the B/L , to the port of destination where an
  ocean-going liner does not call during its
  voyage.

69

• Through bill of lading
• is issued when the entire voyage involves more
  than one carrier. The first carrier issues the
  bill and collects the freight for the entire
  voyage, and arranges transshipment and forwarding
  of the goods at the intermediate port. The
  shipper prefers this kind of B/L because of the
  trouble having been saved to deal with other
  carriers by himself.

70

• ? According to modes of operation and
  transportation, it can be divided into
• liner B/L (????),
• charter party B/L (????)
• ? According to the validity, it can be divided
  into
• original B/L (????)
• copy B/L (????) only for reference

71

• ? According to the time for payment of freight,
  it can be divided into
• Freight prepaid B/L (????) means that all the
  freight is paid by the consignor when the B/L is
  issued by the carrier.
• Freight to be collected B/L (????) refers to the
  B/L on which freight payable at destination is
  indicated.

72

• ? According to the contents of the B/L, it can be
  divided into Long Form B/L and short form B/L.
• A Long Form B/L (????) refers to the bill of
  lading on the back of which all the detailed
  terms and conditions about the rights and
  obligations of the carrier and the consignor are
  listed as an integral part of the bill.
• A short form B/L (????) is a document which omits
  the terms and conditions on the back of the B/L.

73

• Other types of B/L
• Stale B/L (????) A stale bill of lading is a
  bill when it is presented to the consignee or
  bank later than a specified time after issuance.
  In order to safeguard the interests of its
  principal, the bank usually refuses to accept a
  stale B/L, because the delay in the presentation
  of the B/L might lead to additional costs, such
  as warehousing expenses etc.

74

• On Deck B/L (????). An on deck bill is issued
  when the goods are stowed on deck. Some cargoes,
  such as inflammable goods, explosive goods and
  poisonous goods, cargoes in large volume or of
  backward sizes, live cattle, plants, etc, must be
  loaded on deck.

75

• Groupage B/L(????) and House B/L (???????) The
  forwarding agent(?????) usually groups together
  particular compatible goods of consignees
  situated usually in the same area, and dispatches
  them as one consignment. After taking over the
  consignment, the ship-owner will issue a groupage
  B/L to the forwarding agent. And then several
  house B/L are issued by the forwarding agent to
  the individual consignors. At the destination,
  the forwarding agents representative or another
  agent will break bulk(????) the consignment and
  distribute the goods, to their representative
  consignees on their production of the house B/L.

76
Case

• The British seller Glass Fibres and Equipments
  Ltd. signed a contract with the Peruvian buyer
  for equipment of glass fibres factories. The
  Peruvian Bcomo Continental S.A. issued a credit,
  of which the latest date for shipment Dec. 15,
  1976, and Royal Bank of Canada added its
  confirmation to the credit on the beneficiarys
  request. The vessel American Accord arrived at
  the port of shipment on Dec.16. The broker in
  charge of shipment modified the issuing date of
  the bill of lading to Dec.15 so that the date
  could comply with the shipping date stipulated in
  the credit. He also marked the B/L as on Board.

77

• The buyer found the vessel arriving at the port
  on deferred date and gave notice to the issuing
  bank that the on Board notation of the offered
  shipping document might not comply with the terms
  of the credit. The issuing bank contacted the
  confirming bank and by this reason, Royal bank of
  Canada rejected the documents against which the
  seller requested payment. Then, the seller lodged
  a complaint to court.

78

• Contents of B/L
• Every liner company in the world has its own B/L
  form and clauses, but the basic contents are
  stipulated according to the International
  Convention for the Unification of Certain Rules
  of Law Relating to Bill of Lading.
  (????????????????(Hague Rules)(????)

79

• On the face of the B/L, the following particulars
  are to be noted
• Consignor / Consignee / Party to be notified /
  Name of the vessel /Ships nationality / Voyage /
  Port of shipment and port of destination /
  Freight
• Number of the copies of the B/L, date, signature
  of the ship-owner or his agent or capital of the
  steamer.

80

• Main particulars regarding the goods loaded on
  the steamer
• description, marks, number of package, weight
  or measurement.
• Declaration shall be made that the goods have
  been loaded on board in apparent good order and
  should be discharged at the port of destination
  or the port as near as the vessel may safely get
  and be always afloat.

81

• After one of the original B/L(????) has
  accomplished the formality of taking delivery ,
  the others stand null and void.
• The consignor, consignee and bearer declare that
  they accept and agree the B/L and its
  stipulations and exclusion clauses printed,
  written or typed on the back of the B/L.

82

• Clauses on the back of the B/L
• Obligations and responsibility of the carrier
• Exceptions
• Claim and action clauses
• Duty and obligation of the consignor
• Transportation clauses for special goods
• Other clauses.

83

• Railway Transport
• Railway transport does not tend to be effected
  by weather conditions , so it is available for
  transportation for almost the whole year. Rail
  way transport is fast, delivery quantity is
  large. It can guarantee the successive transport
  of the goods. Risks of damage to the goods are
  comparatively small.

84

• According to the stipulations of the
  International Union of Railways (????), the
  International Railway Cargo Through Transport
  Agreement and the International Convention
  Concerning the Carriage of Goods by Rail, the
  goods belong to the export country may be
  transported directly to the place of destination
  as long as the carrier issues a railway bill of
  lading at the place of dispatch.

85

• The main transport documents are the railway bill
  (????) and its duplicate. The railway bill is the
  transportation contract and binding upon the
  consignee, the consignor and the railway
  department. The railway bill together with the
  goods is transported from the place of dispatch
  to the place of destination and then is delivered
  to the consignee after he has paid off the
  freight and other charges. The consignor may make
  exchange settlement with the bank against the
  duplicate of railway bill.

86

• Air Transport
• Air transport is fast and safe, the risk of or
  damage to the goods is reduced to the lowest
  degree. It is not restricted by ground
  conditions. It is especially suitable for
  transporting fresh, live, perishable, seasonable
  goods and samples .

87

• The airway bill (????) is a document supplied by
  the carrier to the consignor. It is a transport
  contract signed between the consignor and the
  carrier. After the goods have arrived at the
  place of destination, the consignee may take
  delivery of the goods against the advice of
  arrival given by the carrier. The consignor fills
  in this document in triplicate, and one of these
  copies shall be sent with the goods.

88

• Air transport services are divided into four
  categories
• ? Airliner transport (scheduled airlines)(??)
  operates on a scheduled service, over a fixed
  airline and between fixed airports.
• ? Chartered carriers (??)
• are the hire of an aircraft by a shippers to
  deliver cargoes. They are ideal for carrying
  cargoes of large quantities or carrying cargoes
  of different shippers to the same destination.

89

• ? Consolidated consignments (consolidation
  transport)(????)
• mean that a number of individual shipments into
  one consignment and dispatches them on one air
  waybill. A consolidated shipment made by several
  shipments can be dispatched to one common
  destination. Many shippers prefer this kind of
  shipment as the freight rate is lower than that
  of a scheduled airline.
• ? Air express service ( desk to desk service)
• (??????)

90
Case

• An export company received an L/C issued by an
  English bank, requiring them to export a cargo
  lot by air to the London airport. The negotiation
  bank accepted the documents after examination and
  asked the reimbursement from the issuing bank.
  Half month later, they received a cable from the
  issuing bank, saying that they refused to make
  payment. The reason for the refusal was that
  there was no shipped typeface in the Air
  waybill. The issuing bank also pointed out,
  according to the statements made by the buyer,
  the goods had not reached the airport. Please
  tell the whereabouts of the goods.

91

• The negotiating bank consulted with the export
  company after receiving the cable. Both them
  thought that the refusal of payment was
  groundless. The negotiating bank cabled back
  the Air waybill submitted by the beneficiary
  conformed to the requirement of L/C, and the
  payment should be made immediately. As for the
  goods, you can consult the local airline agency.

92

• Parcel post transport
• Parcel post transport is relatively a simple
  method of transportation, the seller fulfills the
  duty of delivery only if he delivers the parcel
  to the post office, pays off the postage, and
  gets the receipt. It includes two kinds regular
  mail/surface parcel post and air mail.

93

• Road transport
• The road vehicle, used between countries by
  roads, is a low capacity but very
  versatile(???)unit of transport, very flexible in
  its operation. It has a high distributive ability
  of offering a door-to-door service. Road
  transport is ideal for general merchandise and
  selective bulk cargoes in small quantities.

94

• Inland waterway transport
• The inland waterway system is usually linked to
  the seaport and thereby acts as a distributor and
  feeder (??)to the shipping services. In some
  countries, especially underdeveloped countries,
  inland waterways a major form of distribution as
  the road and rail systems are unable to cope or
  nonexistent in many areas.

95

• Container transport
• Containers are constructed of metal and of
  standard lengths, mostly ranging from twenty to
  forty feet. The use of containers provides a
  highly efficient form for transport by road, by
  rail and air.

96

• Features of container transport
• It offers a door to door service under FCL / FCL
  (????), door to container freight station (CFS)
  service under FCL/LCL(????), CFS to CFS service
  under LCL / LCL(????), or CFS to door service
  under LCL / FCL(????).
• FCL full container load
• LCL less than container load
• CFS container freight station ??????

97

• Quickly
• It can handled quickly and easily by
  standardized equipment and can thus saves labor
  and loading and unloading charges.
• low risk
• The low risk of cargo damage and pilferage
  enables more favorable cargo premiums to
  obtained, compared with break-bulk cargo
  shipments.

98

• Less packing
• is required for containerized consignments.
• Faster transit
• coupled with more reliable maritime schedules,
  and ultimately increased service frequency,
  produces savings in warehouse accommodation
  needs, lessen risks of obsolescent stock and
  speed up capital turnover.
• Container transport falls into two kinds
• Full container load (FCL)
• Less than container load (LCL)

99
Modes of Transportation

• Process of Container Transport
• Port to port
• consignor

Port of shipment CY/CFS
Ocean transport
Port of destination CY/CFS
Container yard(?????)
consignee
CFS(??????)
100
Modes of Transportation

• Door to door
• Warehouse of factory
• of the consignor

????
Inland transport
Port of shipment CY
Ocean transport
Port of destination CY
Warehouse or factory of the consignee
Inland transport
Carrier takes delivery of the container at inland
depot consignor
Inland transport
Port of shipment CY/CFS
Inland depot
Port of destination CY/CFS
???? Ocean transport
Inland transport
Inland depot
consignee
101

• Land Bridge Transport
• Land bridge transport is a mode of transport that
  connects the ocean transport on the two sides of
  the land by the railway which runs across the
  continent.
• Land bridge transport uses the container as a
  medium, so it has all advantage of container
  transport.

102

• There are two main land bridges in the world
• American land bridge
• New European Asian land bridge.
• The advantages of land bridge transport are
  obvious
• Make exchange settlement earlier. As soon as the
  container is delivered, the seller may make
  exchange settlement against combined transport
  documents
• The formality is simple. All that the consignor
  should do is to apply for consignment and the
  general carrier will be responsible for arranging
  and transporting the goods from the place of
  delivery to the place of destination.

103

• International Multi-modal Transport
• International multi-modal transport
  (international combined transport) means the
  carriage of cargo by at least two modes of
  transport on the basis of a multi-modal transport
  contract from a place at which the cargos are
  collected in one country to a place designated
  for delivery in another country. Although
  different modes of transport are combined, only
  one multi-modal transport operator is responsible
  for taking the cargo from the consignor and
  delivering them to the consignee. Multi-modal
  transport document is the only one document used.

104

• The basic conditions of international multi-modal
  transport are
• 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 multi-modal transport operator
  (MTO)(???????)shall be responsible for the whole
  journey
• The whole journey shall use a single factor
  rate.(???????)