Transportation

1、International Trade Practice JUNE, 2014Chapter FiveCargo TransportationInduction Case A Chinese company exported 1,000 cartons of A Chinese company exported 1,000 cartons of goods to an Australian company from Guangzhou goods to an Australian company from Guangzhou to Sidney. The ship company issued

2、 a clean to Sidney. The ship company issued a clean shipped B/L. When the Australian company took shipped B/L. When the Australian company took delivery of the goods, they found that 1) 15 delivery of the goods, they found that 1) 15 cartons were missing;2) 10 cartons were badly cartons were missing

3、;2) 10 cartons were badly damaged and 50% of the goods inside are lost; damaged and 50% of the goods inside are lost; 3) 30 cartons were in good condition, but the 3) 30 cartons were in good condition, but the goods inside were not enough as stipulated.goods inside were not enough as stipulated. Que

4、stionQuestion Who is responsible for the above-mentioned Who is responsible for the above-mentioned incidents, shipper or carrier? Why?incidents, shipper or carrier? Why?5.1 Ocean TransportationLiner transportation 班輪運(yùn)輸班輪運(yùn)輸Charter transportation 租船運(yùn)輸租船運(yùn)輸5.1.1 Liner transportation Liner: definitiona

5、vessel with regular sailings and arrivalssailing on a fixed (regular) sailing routecalling at fixed (regular) base portsadopting a comparatively fixed timetable charges at comparatively fixed freight ratesfreight inclusive of loading & unloading costLiner: types conference liners 工會(huì)定期船工會(huì)定期船non-confe

6、rence liners 非工會(huì)定期船非工會(huì)定期船5.1.1 Liner transportation Liner Freight = basic freight rate + surcharges and additionalCalculation formula of liner freightTotal Freight = Total Quantity Basic Freight Rate (1+ Surcharge /Additional Rates) Basic Freight Rate: quoted by the carrier5.1.1 Liner transportation

7、 A.V. 從價(jià)運(yùn)費(fèi)5.1.1 Liner transportation Surcharges 附加費(fèi)附加費(fèi)Bunker Surcharge (bunker adjustment factor/BAF) 燃油附加費(fèi)燃油附加費(fèi) Currency Surcharge (currency adjustment factor/CAF) 貨幣貶值附加費(fèi)貨幣貶值附加費(fèi)Port Congestion Surcharge 港口擁擠附加費(fèi)港口擁擠附加費(fèi)Transshipment Surcharge 轉(zhuǎn)船附加費(fèi)轉(zhuǎn)船附加費(fèi)Port Surcharge 港口附加費(fèi)港口附加費(fèi)Deviation Surcharge 繞道

8、附加費(fèi)繞道附加費(fèi)5.1.1 Liner transportation Additionals 附屬費(fèi)附屬費(fèi)Heavy lift additional 超重附屬費(fèi)超重附屬費(fèi) e.g. for cargo over 5 MT per unitLengthy cargo additional 超長(zhǎng)附屬費(fèi)超長(zhǎng)附屬費(fèi) e.g. for cargo over 9m per unitBulky cargo additional 超大附屬費(fèi)超大附屬費(fèi) e.g. for cargo over 6cbm per unitAdditional on direct 直航附屬費(fèi)直航附屬費(fèi)Additional on op

9、tional discharge port 選擇港選擇港附屬費(fèi)附屬費(fèi)Additional for alternation of destination 變更變更卸港附屬費(fèi)卸港附屬費(fèi)5.1.1 Liner transportation Freight calculation: IllustrationSuppose: Company A exports 1000 cases of Commodity Y to London. The volume per case is 40cm x 30cm x 20cm, and the gross weight is 30kg per case. For

10、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? 5.1.1 Liner transportation Solution:W: 30kg = 0.03 M/TM: 0.4 x 0.3 x 0.2 = 0.024 m3W M, “W” is the freight basis for the calculation of freightTotal

11、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 USD7590.5.1.2 Charter transportation租船運(yùn)輸CharacteristicsNo fixed routes No fixed timetables Freight charged on the volume of cargoSuitable for

12、 cargo of a complete shipload (e.g. bulk cargo)Typesvoyage charter程租船程租船: hired based on a particular voyage time charter 期租船期租船: the hire of a ship for a period of time bare boat charter 光船租船光船租船: the hire of the vessel itself5.1.2 Charter transportationCharter partythe contract between the ship-ow

13、ner (carrier承運(yùn)人承運(yùn)人) and the charterer (shipper發(fā)運(yùn)人發(fā)運(yùn)人)Contentsthe contract partiesthe ship conditions: e.g. the ships name, age, nationality, tonnage voyage: e.g. ports of shipment & destinationcharter freight division of loading & unloading costlay days 裝卸日期裝卸日期demurrage 滯期費(fèi)滯期費(fèi) & dispatch 速遣費(fèi)速遣費(fèi)frei

14、ght payment terms.5.1.2 Charter transportationSpecifying loading & unloading costFour methods:I. & O. or Liner Terms/Gross Terms: In and Out 班輪條件班輪條件 （船方負(fù)責(zé)裝卸費(fèi)）（船方負(fù)責(zé)裝卸費(fèi)）F.I. :Free In 船方管卸不管裝船方管卸不管裝F.O.: Free Out 船方管裝不管卸船方管裝不管卸F.I.O.: Free In and Out 船方不管裝卸船方不管裝卸Or F.I.O.S.T.: 理艙平艙條件理艙平艙條件 Free In and

15、 Out, Stowed and Trimmed5.1.2 Charter transportationLay time 裝卸時(shí)間裝卸時(shí)間also called lay day, is the period of time allowed to the charterer for the loading or unloading of goods without additional charge Methods of stipulationDays or running days or consecutive days作業(yè)日作業(yè)日Weather working 晴天工作日晴天工作日days

16、of 24 hoursA weather working day of 24 consecutive hours.5.1.2 Charter transportationDemurrage 滯留費(fèi)滯留費(fèi)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 fails to have loading and unloading completed within the lay

17、 timeDispatch 速遣費(fèi)速遣費(fèi)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 demurrage5.2 Other modes of transportationAir TransportationRail Transportation & Road Transportation International Multi

18、modal TransportationContainer Transportation 5.2.1 Air TransportationTypes of air transportation scheduled airlines 班機(jī)運(yùn)輸班機(jī)運(yùn)輸chartered carriers 包機(jī)運(yùn)輸包機(jī)運(yùn)輸 consolidated consignment 集中運(yùn)輸集中運(yùn)輸air express 航空急件運(yùn)輸航空急件運(yùn)輸5.2.1 Air TransportationAir transportation freight rategeneral cargo ratesminimum chargescl

19、ass ratesspecial commodity rates 5.2.1 Air TransportationGeneral cargo ratesW: 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 higherthe heavier, the cheaper (unit freight) e.g. 45kg draws a line minimum freight5.2.1 Air Transpor

20、tationAir freight: illustrationCompany 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 freight rate is quoted at USD2.00/KG (W/M). How much would the total air freight cost? 5.2.1 Air Transport

21、ationSolutionW: 15 kg M: (50 x 40 x 30) /6000 = 10kgW M, so W will be adopted for the calculation of air freight Total air freight =Total Quantity Basic Freight Rate = 50 cartons15kg USD2.00 = USD1500 Answer: the total air freight cost is USD1500.5.2.2 Rail Transportation & Road Transportation Rail

22、transportation from a dispatching station to a destination stationlarge capacity relatively high speed punctual and economicalless prone to bad weather, butconfined to railroads, therefore less flexible5.2.2 Rail Transportation & Road Transportation Road transportation from an inland point to the se

23、a port, airport and railway station high flexibility and distributive ability facilitating door-to-door service ideal for cargoes in small quantities, butlimited in capacity vulnerable to high risk of pilferage 盜竊盜竊 and damage in transit relatively higher operation cost5.2.3 International Multimodal

24、 Transportation 國(guó)際多式聯(lián)運(yùn)only one multi-modal transportation operatoronly one carriage contractone freight rate for the whole journey high operating efficiencylow operating cost short time period for cargo movementmore and more popular in shipping practice5.2.4 Container Transportation Definitiona meth

25、od of distributing merchandise in a unitized form adopting an inter-modal systemproviding a possible combination of sea, road and other modes of transportationFeaturesvariety in serviceinvolving one operator low risk of damage and pilferagesubstantial cost savings 5.2.4 Container Transportation Type

26、s of containersdry cargo container 干貨集裝箱干貨集裝箱refrigerated/reefer container 冷凍集裝箱冷凍集裝箱tanker container 罐式集裝箱罐式集裝箱car container Sizes of containersStandard sizes (most popular) FEU 8 x 8 x 40 TEU 8 x 8 x 20 5.2.4 Container Transportation Types of serviceAccording to place of shipment and destinationCY

27、 to CY (Container Yard to Container Yard) 場(chǎng)到場(chǎng)場(chǎng)到場(chǎng) （港口集裝箱堆場(chǎng)）（港口集裝箱堆場(chǎng)）CFS to CFS 站到站站到站 （集裝箱貨運(yùn)站）（集裝箱貨運(yùn)站） (Container Freight Station to Container Freight Station) DR to DR (Door to Door) 門到門門到門 DR to CFS (Door to Container Freight Station) 門到站門到站CFS to DR (Container Freight Station to door) 站到門站到門5.2.4

28、Container Transportation According to the capacity neededFCL for goods of full container load freight based on container capacityLCL for cargo in small quantity (less than a container load) Carriers consolidating goods of different shippers to be delivered to the same destination5.2.4 Container Tran

29、sportation Container freightFCL: determined mainly by the capacity of the container the place of shipment DestinationLCL: similar to those of the ocean liner service W, M or W/M the distance of voyage surcharges and additional if applicable5.3 Transportation documentsBill of lading (B/L) 海運(yùn)提單海運(yùn)提單Def

30、inition a document issued by an ocean carrier to a shipper with whom the carrier has entered into a contract for the carriage of goods. Function a receipt of cargo an evidence of contract of carriage a document title to the goods5.3 Transportation documentsContents on the face Information concerning

31、 contracted parties, full particulars of the cargo, terms of carriage contract on the back the general terms and conditions5.3 Transportation documentsTypes of Bill of Ladingaccording to whether the goods have been loaded on board the carrying vesselshipped B/L 已裝船提單已裝船提單 Issued after goods shipped

32、on board the vessel Indicating date of shipment and name of the vessel Types of Bill of Ladingaccording to whether the goods have been loaded on board the carrying vesselreceived for Shipment B/L 備運(yùn)提單備運(yùn)提單 Goods being received but not yet loaded Difficult to anticipate date of arrival, so not favorab

33、le by buyer Ways of becoming Shipped B/L Exchange 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 or the agent on the received B/LTypes of Bill of Ladingaccording to the condition of the exterior

34、 packing of the received cargo clean B/L 清潔提單清潔提單Proof that goods have been “shipped in apparent good order and condition” or “clean on board” or the likeFavored by buyers and banks for financial settlementunclean B/L 不清潔提單不清潔提單Marked as “unclean”, “foul” etc.e.g. 2 cases missing, 3 cartons wet, 1 c

35、ase broken, cases inadequately packedUsually unacceptable to buyers and banksCase 3 Chinese trading Company A concluded a sales Chinese trading Company A concluded a sales contract with a Holland trading Company B, contract with a Holland trading Company B, selling a batch of Chinese porcelain. The

36、selling a batch of Chinese porcelain. The contract was based on CFR Rotterdam. Company A contract was based on CFR Rotterdam. Company A delivered the goods in compliance with the delivered the goods in compliance with the contract and obtained a clean on board Bill of contract and obtained a clean o

37、n board Bill of Lading. However, next day Company A found that Lading. However, next day Company A found that shipping advice was not dispatched to Company shipping advice was not dispatched to Company B. Meanwhile, Chinese porcelain got lost B. Meanwhile, Chinese porcelain got lost because of rough

38、 sea. because of rough sea. QuestionQuestion Who is responsible for the loss? Why?Who is responsible for the loss? Why?Case 6 A Chinese company exported 1,000 cartons of A Chinese company exported 1,000 cartons of goods to an Australian company from Guangzhou goods to an Australian company from Guan

39、gzhou to Sidney. The ship company issued a clean to Sidney. The ship company issued a clean shipped B/L. When the Australian company took shipped B/L. When the Australian company took delivery of the goods, they found that 1) 15 delivery of the goods, they found that 1) 15 cartons were missing;2) 10

40、 cartons were badly cartons were missing;2) 10 cartons were badly damaged and 50% of the goods inside are damaged and 50% of the goods inside are lost;3) 30 cartons were in good condition, but lost;3) 30 cartons were in good condition, but the goods inside were not enough as the goods inside were no

41、t enough as stipulated.stipulated. QuestionQuestion Who is responsible for the above-mentioned Who is responsible for the above-mentioned incidents, shipper or carrier? Why?incidents, shipper or carrier? Why?Types of Bill of Ladingaccording to the address of the consigneestraight B/L 記名提單記名提單 Made o

42、ut to a designated consignee Only the named consignee is entitled to the cargo Not transferablebearer B/L 不記名提單不記名提單 No name of a definite consignee The consignee box left blank or open, or bearing the wording “To bearer” Can be transferred without endorsement High risk unfavorable in international

43、tradeTypes of Bill of LadingOrder B/L 指示提單指示提單Made out to the order of a named personNo definite consignee, “To order” “To order of the shipper” or “To order of the consignee” insteadNegotiable and transferable，but need endorsement Special endorsement記名背書記名背書: signature of the endorser and name of t

44、he endorsee Blank endorsement空白背書空白背書: signature of the endorser but no name of the endorsee Widely used in international tradeTypes of Bill of Ladingaccording to whether transshipment is involved in transit direct B/L 直達(dá)提單直達(dá)提單 port of shipment port of destination Preferred by the buyertransshipment

45、 B/L 轉(zhuǎn)船提單轉(zhuǎn)船提單 port of shipment intermediate port port of destination Involving additional charges, longer time and higher risks in transit, therefore unfavorable to the buyer Acceptable only when there is no direct serviceTypes of Bill of Ladingaccording to the perplexity or simplicity of the conten

46、tlong form B/L 全式提單全式提單 detailed shipping contract clause printed on both the face and the backShort form B/L 略式提單略式提單 simplified and abbreviated no detailed shipping contract clause esp. on the back not suitable for evidence of contract of carriageTypes of Bill of Ladingaccording to the payment con

47、dition of freightfreight prepaid B/L 運(yùn)費(fèi)預(yù)付提單運(yùn)費(fèi)預(yù)付提單Issued only after freight having been paid Normally 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 運(yùn)費(fèi)到付提單運(yùn)費(fèi)到付提單Wording such as “Fr

48、eight payable at destination” or “Freight to collect at destination” is indicatedNormally suitable for Sales Contracts (e.g. FOB) where contract of carriage is arranged by the seller on behalf of the buyer Case 7 A Chinese company exported 500M/T of aluminum A Chinese company exported 500M/T of alum

49、inum ingot to a Japanese company which resold the ingot to a Japanese company which resold the goods to an Australian company. The trade term goods to an Australian company. The trade term was FOB Qingdao, the port of destination is was FOB Qingdao, the port of destination is Sidney. The Japanese co

50、mpany opened the L/C Sidney. The Japanese company opened the L/C which provided that the B/L was to be made which provided that the B/L was to be made out to indicate “Freight prepaid”. out to indicate “Freight prepaid”. DiscussionDiscussion .1. Why Japanese party asks us to indicate .1. Why Japanes

51、e party asks us to indicate “Freight prepaid” in the bill of lading?“Freight prepaid” in the bill of lading? 2.How can the Chinese company protect its own 2.How can the Chinese company protect its own interests?interests?Types of Bill of Ladingaccording to the validityoriginal B/L 正本提單正本提單 Valid onl

52、y after being signed by the shipping company or its agent Showing “Original” and the number of the signed originals Normally made out in a set of three originals An evidence showing the ownership of goods Presented for taking the delivery of the goods at destination, one is used, the others becomes

53、void automaticallyTypes of Bill of Ladingaccording to the validityCopy B/L 副本提單副本提單 Bearing “Copy” “Duplicate” or “Non-negotiable” Normally only used for reference or for records made out in several to be a full set of together with the originalsTypes of Bill of LadingStale B/L 過(guò)期提單過(guò)期提單presented lat

54、er than the latest presentation date specified in the L/C or presented later than the goods arrival at the destinationUCP 600: the B/L shall be presented within 21 days after issuance, unless otherwise stipulated in the creditnecessary to add a clause that a “Stale B/L is acceptable” in the contract

55、 for short voyagesTypes of Bill of LadingAnti-dated B/L 倒簽提單倒簽提單the shipment date shown on the bill being earlier than the actual oneissued at the request of the shipper to meet the time of shipment stipulated in the creditfor the avoidance of a non-paymentconstitute a fraud Case 2Chinese company A

56、concluded a sales contract with a foreign Chinese company A concluded a sales contract with a foreign Company B, selling 2,000 ton goods. The contract was based on CIF Company B, selling 2,000 ton goods. The contract was based on CIF Antwerp USD 3,450 M/T. The time of shipment was in December. The A

57、ntwerp USD 3,450 M/T. The time of shipment was in December. The L/C showed that the latest date of shipment was 31st, December L/C showed that the latest date of shipment was 31st, December 2002. However, the ship arrived at the port of shipment on 13th, 2002. However, the ship arrived at the port o

58、f shipment on 13th, Feb., 2003 and the date of shipment was on 18th, Jan 2003. Feb., 2003 and the date of shipment was on 18th, Jan 2003. Company A asked the shipping company to issue the Ante-date Bill Company A asked the shipping company to issue the Ante-date Bill of Lading and the date of the B/

59、L was 31st December 2002. After of Lading and the date of the B/L was 31st December 2002. After shipment, company A presented the documents to bank, it got the shipment, company A presented the documents to bank, it got the payment.payment.On April 2003, the ship arrived at the Antwerp port. Company

60、 B On April 2003, the ship arrived at the Antwerp port. Company B thought that the ship should not arrive at Antwerp so late. So thought that the ship should not arrive at Antwerp so late. So Company B consulted the dairy of shipping and found the actual Company B consulted the dairy of shipping and