Unit 6 Cargo Transportation,Introduction,2. Information,4. Reading Practice,3. Language Tips,1.Unit Points,5. Exercises & Keys,1.Unit Points,Contents,Objectives,Preview Case,1,2,3,Objectives, The basics of containerization, The transport clause in the sales contract, The different modes of transportation, The basics of ocean shipping,After reading this unit, you will understand, The function, type and contents of bill of lading,Preview Case,A Shandong exporter received an L/C from its British buyer, saying “200 M/T of Groundnut Kernels from Qingdao to London before April 1st, 2004. Partial shipments prohibited”. On March 15th, just before shipment, an amendment to the L/C reached the exporter. It read “Shipment changed to 100 M/T of groundnut Kernels from Qingdao to London and 100 M/T of Groundnut Kernels from Qingdao to Liverpool” instead of original stipulation. The exporter immediately begged the carriers favor and shipped 100 M/T on Vessel WANGJIANG to London on March 31st, and another 100 M/T on Vessel RICKMERS to Liverpool on April 1st. On April 15th, the opening bank refused the export documents, claiming 1) partial shipments were prohibited, and 2) the second shipment was late.,Contents,6.1 Modes of Transport,6.2 Maritime Transport,6.3 Ocean Bill of lading,6.4 Containerization,6.5 Transport Clause in a Sales Contract,6.1 Modes of Transport,Ocean freight is good for large items, bulk commodities and items that do not require fast delivery. However, there are minimum weight requirements for ocean freight which may be three to four times greater than for air freight. See Section 6.2 for more details. Road freight is commonly used in cross-border deliveries, for example, in the delivery of export goods between mainland European countries and between North American countries. Generally, a transit distance up to 1,000 kilometers using road freight is competitive compared with rail and air freight. Rail freight is popular in multi-modal transport and transshipment. It is widely used in land bridges. Rail carsrail wagonsare available to accommodate many kinds of cargo. In a COFC (container on flat car) service, for example using 50 flat cars each with a 60-ton capacity, the combined flat cars may carry loads weighing up to 3,000 metric tons, which is far more than a truck or an airplane can carry. Hence, rail freight is often used in the overland movement of ocean freight containers and bulk cargo, such as between the East and West Coast ports of the U.S. and/or Canada. Air freight is usually used for high value but low volume cargo because it is perceived as expensive when compared with land and ocean freight. However, air freight has its advantages. Most air cargoes are carried on passenger airliners. About 80% to 90% of air cargoes are transported by IATA (International Air Transport Association) members. IATA standardized the rules and regulations for air carriers throughout the world. When airlines or air cargo companies or their agents issue an air waybill (AWB), it is often a straight waybill. The buyer is named the consignee on the waybill and he/she can claim the consignment from the carrier by simply showing proof of identity.,Students Task Log on to http:/www1.shippingchina.com to find out the sailing routes and shipping companies which can carry the goods from your city to Tokyo, Los Angeles, Hamburg and Johannesburg.,6.2 Maritime Transport,Space Booking Process,4. S/O, Customs declaration form,6.2.3 Charter Shipping,6.3 Ocean Bill of Lading,A bill of lading is issued by a carrier to a shipper (exporter/seller/consignor), signed by the master, agent or owner of a vessel, evidencing: receipt for the goods; contract for carriage; document of title to the goods.,6.3.1 Contents,6.3.2 Types,6.3.1 Contents,The carrier issues the B/L according to the information in a dock receipt, or in some cases according to a completed working copy of the B/L supplied by the customs broker. The B/L will indicate that the goods have been loaded on board or have been shipped on a named vessel, and it will be signed or authenticated by the carrier or the master, or the agent on behalf of the carrier or the master.,The bill of lading shall be filled according to the sales contract and the letter of credit under L/C payment. The letter of credit usually contains specific requirements on the bill of lading. The following are examples of B/L clauses in the letter of credit: “Full set clean on board B/L consigned to the order of T.Garanti Bankasi A.S. notify applicant full name and address, marked freight collect.” “Marine/ocean bill of lading 3/3 originals and 2 non-negotiable copies for goods consigned to applicant notify same evidencing freight prepaid.” “Full set of 3/3 clean on board ocean bills of lading made out to order of Bankok Bank Public Company Limited, Bankok marked freight payable at destination and notify applicant and indicating this L/C number.”,Que