Mode of Transport

By sea:
A major chunk of goods traded internationally are transported by ocean going vessels. Oldest form of transportation in international trade. Rules/Regulations/Guidelines were evolved trough centuries. Some of the Institutions concerned: International Maritime Organization United Nations Confederation for Trade and Development etc.

Some of the rules governing carriage of goods by sea Hague rules (1924) Hague visby rules (1968) Hamburg rules (UN-1978) Some of the terms frequented in shipping: Carrier- Owner or Operator of vessel(ship/boat/container) providing transportation. This is also used to denote a vessel. Shipping agent- Agent acting on the carriers behalf at a Port of call. Conference- An affiliation (association)of ship owners operating over the same route(s) who agree to charge uniform rates and to other terms of carriage. Cotd.

Container- A large rectangular box of a strong structure that can withstand continuous rough handling from ship to shore and back. Opening is provided to allow cargo to be loaded and stacked. Standard sizes are 8 feet square and 20/40 feet long. FCL- Full Container Load. LCL- Less than Container Load. Container ship- A vessel designed to carry standard international containers enabling efficient loading/unloading and transportation to and from the vessel. Contd.

Feeder service- Smaller vessels transporting cargo (consignment) to/from regional ports to a central hub port and vice versa. Bill of lading- A document by which the Master or an authorised person acknowledges having received certain specific goods in good condition and binds himself to deliver them to the consignee at the Port of destination in the same condition on receipt of the stipulated freight , unless the perils of the sea/ natural calamities/ enemies/ fire etc. prevents him in doing so.

Master(Captain)- Highest officer aboard (on the)ship responsible for overseeing all the operations, keeping records, handling accounting and book keeping, taking command of the vessel in inclement(bad) weather/in crowded or narrow waters/approaching Ports etc. Also handles communication, receives and implements instructions from home office. Manifest- A document containing a full list of the ships cargo extracted from bill of ladings.

Commercial terms: CIF:- Cost,Insurance,Freight included in the price specified. C&F:- Cost and Freight covered in the price specified. C&I:-Cost and Insurance are covered. FOB:-Free On Board FAS:- Free Along Side

Operators Carrier: Owns or Operate vessels in specified route(s). Decide and publish freight rates for different routes. Publish other terms of shipping mostly in conformity with international regulations and guidelines. Ultimately responsible for the ship, its cargo and the employees. Shipping Agents: Represents the carrier in the assigned area.

Freight consolidator:
Freight consolidator is a person or a firm who takes less than container load/small volume shipments and combines or consolidate them into full container load/large volume shipment and deliver to carrier for shipment. They buy shipping space in bulk in vessels in a special arrangement for one voyage or for a particular route and resell the same to individual shippers in small lots. They are also sometimes referred to as Non Vessel Operating Common Carrier(NVOCC).

Freight forwarder:
Freight forwarder is one who renders cargo delivery services. International Freight forwarding involves taking goods from the exporters premises (or the port of origin) and delivering the same to the port of destination (or importers premises). They may also offer other logistical services like Insurance agency, export packing, trucking etc.

By air
Airfreight offers quicker transportation for perishable as well as non-perishable, urgent/valuable cargo It is estimated that about 35% by value of goods traded internationally are transported by Air. Most of these cargo are transported by Freighter crafts even though some perishable/other cargo are accommodated in Passenger crafts.

Some of the Institutions guiding the business are:International Air Transport Association(IATA), which is a Trade body having about 93% representation of scheduled International Air traffic. International Civil Aviation Organisation(ICAO),which is a UN body who codifies the principles and techniques of International air navigation.

Some of the terms frequented:

Air Waybill(AWB)-Accompanying document of an air shipment made either directly by the Air line or its appointed agent showing all details pertaining to a specific shipment.

Master Air Waybill- Document issued by the Carrier or Carriers Agent covering a consolidation and being issued to the Break-bulk agent or a Consignee at final destination. Contd.

Forwarding agents Certificate of Receipt (FCR)Forwarding agents confirmation to customer that he has taken over the shipment and will definitely deliver it to the consignee as stated in the shipping order. House Air Waybill (HAWB)-Document covering each individual shipment of a consolidation showing all details pertaining to the air carriage of a consignment. It is issued by the Consolidator / Forwarding agent.

Commercial terms mentioned under sea freight are equally applicable in the case of airfreight also. Agencies such as Carrier, Agent, Consolidator, Forwarder also operate in the case of airfreight, except that the Carrier operate Air crafts instead of ocean vessels. The agent represents the Air craft company or a Charter operator.

By road/rail
Surface transport by road/rail is employed to export/import goods to neighboring countries or where such mode is found advantageous over ocean transport. Multimodal Transport

If circumstances so warrants, two or more modes of transport are employed to export/import a consignment. In such circumstances, a Multimodal Transport Operator takes care of the responsibility for arranging the various modes of transport.