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Chapter 4 Delivery of Goods. Delivery Conditions Delivery Vs. Shipment Partial shipments & transshipment Shipment Clause Transportation Modes Ocean transport.

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Presentation on theme: "Chapter 4 Delivery of Goods. Delivery Conditions Delivery Vs. Shipment Partial shipments & transshipment Shipment Clause Transportation Modes Ocean transport."— Presentation transcript:

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 ① 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 ② 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 杂货船 Oil tankers Container vessels Oil/Bulk/Ore (OBO) vessels Ro/Ro vessels 滚装船 LASH (Lighter Aboard Ship) 载驳船 Refrigerated ship 冷藏船 Timber ship 木材船

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. It ’ s suitable for cargo of small quantity.

22 The main features of liners are usually concluded by “ 4+1 ” : 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 ① includes the freight in the sea and loading and unloading fees. ② is calculated according to liner ’ s freight tariff. Container transport

30 The basic standards for calculating freight are stipulated as follows: ① According to gross weight, i.e., weight ton, which is indicated by “ W ” in the tariff. ② According to volume, i.e., measurement ton, which is indicated by “ M ” in the tariff. ① & ② are two forms of freight ton.

31 ③ 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. ④ 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 ⑤ 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. ” ⑥ 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 ⑦ According to the number of the cargo. E.g., “ per head ” for big animals, “ per unit ” for automobiles. ⑧ 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 m 3, 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 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 ( x10%)=USD The total freight: USD X10.676=USD

40 Voyage Charter Freight ① according to rate of freight Freight per unit Intaken quantity or delivered quantity ② 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: ① gross terms/ liner terms/ berth terms: The ship owner bears gross terms; ② free out, F. O.: The ship owner is free; ③ free in, F. I.: The ship owner is free; ④ free in and out, F.I.O.

44 ④ 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 ( 滞期费 ) 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 ( 速遣费 ) 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 ( 货物收据 ) ▲ document of title ( 物权凭证 ) ▲ evidence of the contract of carriage ( 运输合同证明 )

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 ① 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 (备运提单). 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 ② According to whether there are notes on the bill of loading, it falls into two kinds: clean B/L ( 清洁提单 ) and unclean B/L ( 不清洁提单 ). 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 ③ According to whether the B/L is transferable, it is divided into 3 kinds: straight B/L (记名提单), bearer B/L (不记名提单), order B/L (指示提单).

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 ④ According to the modes of transport, it can be divided into direct B/L ( 直达提单 ), transshipment B/L ( 转船提单 ), through bill of lading ( 联运提单 ).

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 ⑤ According to modes of operation and transportation, it can be divided into liner B/L ( 班轮提单 ), & charter party B/L ( 租船提单 ) ⑥ According to the validity, it can be divided into original B/L ( 正本提单 ) & copy B/L ( 副本提单 ): only for reference

71 ⑦ According to the time for payment of freight, it can be divided into Freight prepaid B/L ( 预付提单 ) 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 ( 到付提单 ) refers to the B/L on which “ freight payable at destination ” is indicated.

72 ⑧ 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 ( 繁式提单 ) 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 ( 简式提单 ) 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 ( 过期提单 ) : 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 ( 甲板提单 ). 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( 成组提单 ) and House B/L (运输代 理行提单) : The forwarding agent (运输代理行) 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 agent ’ s representative or another agent will break bulk (开始卸货) 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 beneficiary ’ s 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. (《统 一提单的若干法律规则的国际公约》 (Hague Rules) (海牙规则)

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 /Ship ’ s 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 (正本提单) 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 ( 国际货约 ), 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 ( 铁路运单 ) 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 ( 航空运单 ) 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: ① Airliner transport (scheduled airlines) (班机) operates on a scheduled service, over a fixed airline and between fixed airports. ② Chartered carriers (包机) 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 ③ Consolidated consignments (consolidation transport) (集中托运) 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. ④ Air express service ( desk to desk service) (航空急件传送)

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 (功 能多) 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 ( 支线) 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 ( 整装整拆 ), door to container freight station (CFS) service under FCL/LCL( 整装拼 拆 ), CFS to CFS service under LCL / LCL( 拼装 拼拆 ), or CFS to door service under LCL / FCL( 拼装整拆 ). FCL: full container load LCL: less than container load CFS: container freight station 集装箱货运站

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 consignee Container yard( 集装箱堆场) CFS( 集装箱货运站)

100 Modes of Transportation Door to door Warehouse of factory of the consignor Inland transportPort of shipment CY Ocean transport ﹌﹌﹌﹌ Port of destination CY Inland transport Warehouse or factory of the consignee Carrier takes delivery of the container at inland depot consignor Inland depot Inland transport Port of shipment CY/CFS ﹌﹌﹌﹌ Ocean transport Port of destination CY/CFS Inland transport Inland depotconsignee

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)( 多式联运 经营人 )shall be responsible for the whole journey; The whole journey shall use a single factor rate.( 单一 的运费费率 )

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