Logistic Review

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AIR FRIEGHT:
- General Cargo Rate (GCR): the normal rate applied for
normal general cargo carried between two airport.
- GCR- N (normal): for goods with quantity < 45kg
- GCR- Q (quantity) for goods with quantity ≥ 45kg
(45kg, 45-100, 100-250, 250- 500, 500- 1000, >1000)
- Minimum rate: the rate to guarantee profit for airlines
- Special Commodity rate (SCR): the rate applied for special
commodities in a certain routes.
- Class Rate/ Commodity Box Rate (CBR): freight rate
classified by commodity (live animals: 150% GCR, high value
commodities: 200% GCR, books, journals, magazines,
luggage, mortal remains/ ashes: 50% GCR)
- Freight All Kinds (FAK): single freight that is charged
irrespective of the commodity
- ULD rate: the rate that is charged when the goods are
consolidated in unit load devices
- Delayed shipment charge
- Fast shipment charge: the rate applied for cargo sending
within 3 hours
- Unified Cargo rate: single freight that is charges irrespective
of the section
- Group rate: the rate that is applied for forwarders or airlines’
agents, who usually send goods in containers, pallets or
other transport articles

- Subscribed rate: the rate that is charged when charter an
entire aircraft to carry the goods
AIRWAY BILL

:

1. Def: the document of transport issued by air carrier to
consigner when cargo is received for shipment.
2. Function:
- Contract of carriage btw consigner and carrier
- Receipt of cargo of carriers
- Document of tittle
- Invoice
- Custom clearance
- Guide line for employee
- Document of issurance
3. Types of AWB
- Master AWB: issued by the airways ( hãng hàng không) to
forwarders ( người gom hàng) when they consign the airways a
consignment of many owners.
- Airline AWB: issued by the airways, recorded with the
indentification symbol (biểu tượng nhận dạng) of the carrier, used
when airways considered as carrier.
- Neutral AWB: are exclusively printed and obtained through IATA
verification and clearance. Once the cargo agent or shipper
obtains the assigned Air Waybill number provided by the airline or
the IATA air cargo agent that is entitled to issue House Air Waybill,

the NAWBs are approved for computer printers and have the
same validity as Master Air Waybills or House Air Waybills.
- House AWB: issued by a freight forwarder on receipt of goods
from shipper agreeing to deliver goods at destination.
LOGISTIC:
1. Logistics: is the process of planning, implementing and
controlling the efficient and effective flow and storage of goods,
services and related information from point of origin to point of
consumption for the purpose of conforming to consumer
requirements.
2. The overall goal of logistics is to achieve a targeted level of
consumer service at the lowest possible cost
3. Features of logistics:
4. Roles of logistics:
5. The aim of logistics:
- Provide the right product
- In the right condition
- In the right quantity
- At the right place
- At the right time
CONTAINER
1. Def: is a basic tool,[1][2] consisting of any device creating a
partially or fully enclosed space that can be used to contain,
store, and transport objects or materials.
2. Features:

- Containers are strong enough for repeated use
- They are designed to facilitate the transport of goods from one
mode to another, for example from road or rail to sea, without
intermediate reloading.
- They are designed for easy packing and have unpacking fittings
that allow easy handling and transfer from one transport mode to
another.
- Capacity is not less than 1 m3
3. Classification: sách trang 240
CONTAINER FREIGHT
1. Container box rate (CBR): A freight rate classified by
commodity and offered per container.
2. Freight all kinds (FAK): all different kinds of goods packed in a
container are charged the similar freight level whether high value
or low value.
3. Time-volume Contract rate (TVC): A preferred freight for
owners of the goods who consign large volume container in a
certain time.The larger volume of container is, the lower the
freight is.
4. TEU (Twenty-foot equivalent Unit): is an inexact unit of cargo
capacity often used to describe the capacity of container
ships and container terminals. The TEU freight is subject to
Container supplier: as Carrier’s owned container (COC), the
freight would be higher than the freight of Container supplied by
shipper (SOC).

!!: When using container and applying FOB, CFR, CIF  Place of
transferring risk is not suitable (on board, not at CY/CFS),
Shipping documents are not suitable (Bank not accept to make
payment)  When using container, we should apply FCA,CPT,CIP
DELIVERY METHODS OF CONTAINER
FCL/FCL:
- The cargoes is large, require more than 1 container. The
carrier receive full container from shipper or consigner at the
port of loading and delivery to the consignee at the port of
destination
- Process:
+ The consigner send a full container which is sealed to
carrier at the container yard (CY), at the port of loading.
+ The carrier, at his own cost, load the container into the
ship and transport to port of destination.
+ The carrier, at his own cost, unload the container out of
the ship and transfer it to the CY.
+ The carrier deliver container in sealed condition to the
consignee at the CY at the port of destination.
LCL/LCL:
- The cargo is small, cannot put into 1 container, the carrier
receive the cargo from many consigners and transport to
different consignee in correspondence with consigners.
- Process:
+ Consigner place the cargo to the carrier at the container
freight station (CFS) at the port of loading.
+ Carrier , at his own cost, pack the cargo into one container
and lead sealing pliers.
+ Carrier, at his own cost, load sealed container on the ship
and transport to port of destination.

+ Carrier, at his own cost, unload the container from the
ship, transfer to CFS.
+ Carrier, at his own cost, unpack the cargo out of the
container, and deliver to each consignee at CFS.
LCL/FCL: SERVERAL CONSIGNER, 1 CONSIGNEE
- Many consigners want to ship goods to one consignee at one
place of destination.
- Process:
+ The consigner deliver the goods to carrier or consolidator
at specified CFS and receive House B/L or Order B/L stating
“part of container”
+ After custom inspection, carrier or consolidator pack the
goods into container at CFS.
+ Carrier load container on the ship and transport to place of
destination.
+ Carrier unload container out of the ship and transfer to CY
or CFS at port of destination, then deliver to consignee.
FCL/LCL: 1 CONSIGNER, SERVERAL CONSIGNEE ( ngược lại
vs LCL/FCL)
BILL OF LADING
1. Def: is a document issued by a carrier which details
a shipment of merchandise and gives title of that shipment to a
specified party.
2. Function:
- Receipt of cargo: evidence receipt of cargo for shipment
- Document of tittle: Cargos are transferred to B/L holder => give
the holder the rights to claim the goods or transfer it to sb else.
- Evidence of contract of carriage: set out the rights and liabilities
of the party to the contract.

3.Main types of B/L:
- Order B/L: specifies the name of the shipper and carrier but
state that consignee is “to order”, allowing sale of the goods and
endorsement during the voyage but B/L must be presented to
collect.
- Straight B/L: specifies the name of the shipper, carrier and
consignee but is intended to require production of the B/L to allow
collection.
- Seawaybill: specifies the name of the shipper, carrier, and
consignee but presentation not required to collect goods.
4. Classification:
a) Already loaded or not:
- Shipped on board B/L: issued by carrier or carrier representation
when cargoes have been already onboard.
- Received for shipment B/L: issued by carrier when the carrier
receive cargoes to load on specified ship, which means the
cargoes have not been onboard yet.
b) Comment, judgement on B/L:
- Clean B/L: B/L without any terms which state expressly that
there are defective goods or package.
- Unclean B/L: B/L on which bad comments or judgements of
goods or package are stated .
c) Transporting route:
- Direct B/L: is used when you know the same vessel that picked
up the cargo will deliver it to its final destination.

- Through B/L: allows for the shipping carrier to pass the cargo
through several different modes of transportation and/or several
different distribution centers.
- Multimodal transport B/L: This is a type of Through Bill of Lading
that involves a minimum of two different modes of transport, land
or ocean.

TRANSPORTATION
1. Definition: Any movement of goods or people from place to
place but for earning profit.
2. Characteristic:
-Transportation is the industry of material production
+ Tools of production: car, vessel, aircraft, train…
+ Labor of production: driver, people working in the train…
+ Subject matter of production goods or people
+ Product: Movement from place to place
- Transportation is the forth production industry
+ 1st  Industrial
+ 2nd  Agricultural
+ 3rd  Mining
- Transportation is the industry of special material production:
+ Place of production: not fixed
+ Process of production: the process of changing the place,
not the physically changing the raw materials.

+ Product of production: invisible
+ Storage of product: N/A, capacity of transportation.
??: Why transportation is considered as the forth industry of
production while haircut is not?
B/c transportation affect all other industries (larger scale than
haircut)
3. Incoterms:
Incoterms also determine the liabilities and obligations of the
parties, including who has to arrange for transport if goods need
to be moved.
??: Which terms the seller have to hire the means of transport?
CFR, CIF,DES,DEQ
??: Which terms the buyer have to hire the means of transport?
FOB, FAS
??: Which terms are suitable for sea transport?
FAS, FOB, CFR, CIF, DES, DEQ
??: Which terms are suitable for multi modal transport ?
EXW, FCA,CPT,CIP,DAF,DDU,DDP
??: Which terms are suitable for sea and inland waterway
transport?
 FAS, FOB, CFR, CIF, DES, DEQ
??: Which terms are suitable for non-sea and inland waterway
transport ?


??: Which terms are suitable for container?
FCA, CPT, CIP
4. Right of transport:
- Sign contract of carriage directly
- Arrange the process of transport
??: Why the seller/buyer would prefer to have the right of
transport?
Because
• Gaining initiative in carriage of goods, negotiation and
signing contracts
• Utilizing national merchant fleets and other transportation
means
• Improving the national balance of payment
• Promoting the development of other sectors: freight
forwarding, broker, consolidation…
5. Facilities – Technique of sea transport:
 Merchant vessels
Specifications
- Ship’s name
- Port of Registry: A vessel’s home port, port of registry,
or hailing port, is its port of origin as shown on its
registration documents and lettered on the stern of the
ship's hull
- Flag:
– Conventional flag

– Flag of convenience: vessel belongs to one nation but
hang the flag of another country
• Ship owner
+ Actual shipowner
+ Norminal shipowner
• Draught ( mớn nước): distance from the bottom of the ship
to the level of water on the ship side( water line: indicating
how high the water has reached on the side of the ship)
+Light Draught : the smallest distance from the bottom
of the ship to the level of the water when the ship is carrying
no cargo.
+Loaded Draught: the largest distance from the bottom
of the ship to the level of the water when the ship the fully
loaded in summer time
+Plimsoll Mark( load line): Mark painted on both sides
of the merchant ships to indicate the maximum point they
are allowed to sink to when loaded, depending on the
specific gravity of water which varies according to season
and place.
 Dimensions of ship
+ Length overall ( chiều dài): is the maximum length of
a vessel's hull (thân tàu) measured parallel to the
waterline.
+ Length between perpendicular: LBP refers to the
length of a vessel along the waterline from the forward
surface of the stem (mũi tàu) , to the after surface of
the sternpost (sống đuôi tàu)
+ Beam( chiều rộng): The beam of a ship is its width at
the widest point as measured at the ship's
nominal waterline. The beam is a bearing projected at
right-angles from the fore and aft line, outwards from
the widest part of ship.

 Displacement (trọng lượng của tàu): is the weight of water
that a ship displaces when it is floating, which in turn is the
weight of a ship (and its contents)
+ D = M / 35 (c.ft) (M: thể tích của khối nước mà tàu
chiếm chỗ)
+ Light displacement ( trọng lượng tàu không chở
hàng): Hull, engine and equipment, facilities, crew members.
+ Heavy displacement ( trọng lượng tàu khi chở hàng):
LD + Food and fuel+cargo.
 Carring capacity ( trọng tải của tàu – long ton)
+ Deadweight capacity ( trọng tải toàn phần của tàu):
The difference between light displacement and heavy
displacement. A measure of the ship's total carrying
capacity.
+ Deadweight cargo capacity ( trọng tải tịnh của tàu):
The weight remaining after deducting fuel, water,
stores, dunnage and such other items necessary for
use on a voyage from the deadweight of the vessel.
 Register Tonnage ( dung tích đăng kí của tàu)
+ Gross register tonnage (dung tích đăng kí toàn phần):
is the volume of space within the hull and enclosed
space above the deck of a merchant ship which are
available for cargo, stores, fuel, passengers and crew.
+ Net register tonnage ( dung tích đăng kí tịnh): is the
volume of cargo the vessel can carry—that is, the gross
register tonnage less the volume of spaces that do not
hold cargo. It represents the volume of the ship
available for transporting freight or passengers.
 Cargo space ( dung tích chứa hàng của tàu):
+ Bale space (=length*width*height): The space
available for cargo measured in cubic feet to the inside
of the cargo battens( ván lót) , on the frames ( sườn),

and to the underside of the beams.( sườn ngang của
sàn tàu).
+ Grain space ( 105-110% BS): The maximum space
available for cargo measured in cubic feet, the
measurement being taken to the inside of the shell
plating of the ship or to the outside of the frames and
to the top of the beam or underside of the deck plating.
 Coefficiency of Loading - CL (hệ số xếp hàng của tàu):
propotional relationship between cargo space (m3/Cf) and
DWCC (long ton).
 Stowage Factor – SF ( hệ số xếp hàng của hàng hóa):
relationship btw the volume and displacement of cargo.
+ SF < 40 C.ft  Deadweight cargo
+ SF > 40 C.ft  Measurement cargo
+ SF > 70 C.ft  bulk cargo
+ SF < CL : not take advantage of register tonnage
+ SF > CL : not take advantage of carrying capacity
MULTIMODAL TRANSPORT
1. Def:
- Multimodal transport is the articulation between different modes
of transport, in order to more rapidly and effectively transfer
operations of materials and goods.
- Multimodal transport operator means any person who on his
own behalf or through another person acting on his behalf
concludes a multimodal transport contract and who assumes
responsibility for the performance of the contract.
2. Feature


The carriage of goods by two or more modes of transport,
under one contract

• One document and one responsible party (MTO) for the
entire carriage who might subcontract the performance of
some
• The terms "combined transport" and "intermodal transport"
are often used to describe the carriage of goods by two or
more modes of transport.
3. Rules related to multimodal transport:
- United Nation Convention on the International Multimodal
Transport of Goods, 10980
- UNCTAD/ICC Rules for Multimodal Transport Documents
(1/1/1992).
FIXTURE NOTE
1. Vessel: M/V PACIFIC, DWT 16 579T, OM 9,07 SSW
LOA/BM : 144,7/22,3 MTR, PANAMA FLAG
Draught of 14,87m
2. LAYCAN : 26th APRIL – 6th MAY 2008
3. LOADING/ DISCHARGING PORT:
Loading: 1-2 SB

1SP QUATAR

Discharging: 1-2 SB

1SP HCM

(SB: safe birth, SP: safe port)
4.FREIGHT: USD 80 PMT FIOST BSS 1/1

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