Chapter 2 transportation modalities multimodal

HO CHI MINH CITY UNIVERSITY OF TRANSPORT TRANSPORTATION MODALITIES PRESENTED BY: BICH HOAI, MSc Contents • Air • Road • Rail • Sea • Waterway • Multimodal transport Transportation in Global trade Introduction • Global shipment execution is complex • Involves multiple carriers from different modes • Many border crossings and long distance shipments • Flawless transportation execution requires: • Internal expertise and attention to detail • Strong relationships with capable service providers Overview of Global Freight Flows • Global freight: two primary service options • Direct service • Direct origin-destination (one country to another country shipment), no interim stops-offs • Typically between bordering countries • Single mode of transport, typically motor carrier • Indirect service • Typically, shipment requires multiple modes, i.e multimodal/ intermodal transportation • Multiple interim stops required to transfer freight between carriers or modes Fig Overview of Global Freight Flows Multimodal/ Intermodal Transportation • Definition: Two or more modes used to move shipment from origindestination • Facilitates global trade by combining inherent advantages of each mode • Greater accessibility is created for ocean or air line haul transport by combining with truck or rail • Overall cost efficiency can be achieved without sacrificing service quality or accessibility • Flexibility to suit the shipment situation Overview of Global Freight Flows Multimodal Transportation • Model combination options – most frequently used combinations are: Pick up Main carriage Delivery Truck Air Truck Truck or rail Ocean Truck or rail Truck Rail Truck • Carrier, rather than shipper typically makes determination of which combination to use Overview of Global Freight Flows Multimodal Transportation • Primary freight types • Containerized freight • Freight loaded into/onto a container or pallet that is shipped to destination with no interim handling of freight • Containers are efficient way to handle and ship freight • Standard height and width specifications • Ships and landside loading/unloading facilities designed to efficiently handle and store standard sized containers • Common container lengths: 20’, 40’, 45’ Overview of Global Freight Flows Multimodal Transportation • Containerized freight (continued) • Container capacity expressed in twenty-foot equivalent units (TEU) • TEU is a measure of containerized cargo capacity equal to one standard 20 ft (length) by ft width container • ISO teu = 20’*8’* 8’6” • Accounts for 90% of non-bulk cargo worldwide • Continued growth due to: • Application of info systems to track containers • Development of intermodal terminals for efficient transfers of containers between modes • New generation of ships, railcars and trucks specifically designed for containerized freight Containers What is it? Standardised transportation unit Large rectangular box Characteristics: • Strong enough to be packed / repacked many times • Designed to allow goods to be carried by several modes of transport without unpacking and repacking • Fitted with devices to allow easy handling • Designed to be packed and unpacked easily Intermodal Transport Developments: Inland Terminals Rotterdam Tancang Cat Lai Barge Terminal Intermodal Transport Developments: Inland Terminals Water-land Terminal Amsterdam www.waterlandterminal.nl Intermodal Transport Developments: Inland Terminals Water-land Terminal Amsterdam Intermodal Transport Developments: River Shuttle, Germany Concept: • service 4x per week between Rhine terminals • push vessel + barges x 800 pallets • storage levels • barcode managed handling (300 pall./hour) Handling system: • the pallets are loaded in cages • a barcode control station checks identity, size and weight • buffer systems secure continuous handling • satellites move pallets into flow racks Multimodal Transport Contents Comparison of Transport Modalities Multimodal Transport Combinations Developments in Multimodal Transport Multi Modal Transport Operators Multimodal Transport Operators Freight Forwarder: Different Roles Classic Transport: Shipper Trucker Forwarder Warehouse Airline Railway Shipowner Forwarder acts as intermediate Multimodal Transport: MTO Shipper Trucker Warehouse Airline Railway Shipowner MTO acts as carrier MTO acts as a Carrier • Issue Bills of Lading as Contract of Carriage • Take the responsibility to carry goods from point A to B (can be : Port-Port or Point-Point, also Multi Modal) Port – Port shipment Point – Point shipment MTO acts as a Carrier Possession of equipment Possession of ships Market share Main activities Example companies Non Carrier MTO (NC-MTO): without own equipment Non Vessel Owning MTO (NVO-MTO) or Non Vessel Operating Common Carrier (NVOCC): without own ships 40 % Forwarder Ship’s Agent Trucker Integrator Railway Terminal Operator Kühne & Nagel PAN Agencies …… Federal Express CSX Port of Seattle Carrier MTO (C-MTO): has own equipment Vessel Owning MTO (VO-MTO): has own ships 60 % Conference Carrier Non Conf Carrier Inland Water Carrier Hapag Lloyd Evergreen Lines …… MTO acts as a Carrier Shipper MM Transport Contract VO-MTO CIM Contract Container Handling Agreement Connecting Carrier Agreement Trucking Contract Storage Contract Railway operator Terminal operator 2nd Sea Carrier Trucking company Public Warehouse MTO and Liability Regarding the legal and liability situation we must differentiate between an internal and external part • Internal part: rules the legal relationship of an MTO with different transport operators (carriers) • External part: concerns the relation with the owner of the goods (shipper) MTO and Liability Internal part: mainly by rules per module: • Air traffic: Warsaw convention • Sea traffic: Hague and Hague–Visby rules / Hamburg rules • Road traffic: CMR • Rail traffic: COTIF / SMGS External part: two main streams: • Network-solution: respecting the rules and laws already developed for the modalities applied The liability depends on the mode where the damage occurred • Uniform-solution: the MTO contract is an own contract, independent from uni-modal agreements There is one uniform liability, independent from where damage occurred MTO and Liability Legal framework for International Multimodal transport • The UN Conventions on the International Multimodal Transport of Goods (MT-convention) signed in Geneva, 24 May 1980 The MT-Convention is not in force yet! • UNCTAD/ICC Rules for Multimodal Transport Documents MTO and Liability Source: http://www.aktiv-assekuranz.de) MTO and Liability Insurance • Hull insurance • Cargo Insurance Policies • P & I Clubs THANK YOU 66 ... from1996 20 Container type 21 Volume Outlook in Main Trade Lanes, 20 17 Estimate & Growth Forecast 20 17 /20 in % 22 Multimodal Transport & Containers Contents Comparison of Transport Modalities Multimodal. .. landlocked countries Multimodal Transport & Containers Contents Comparison of Transport Modalities Multimodal Transport Combinations Developments in Multimodal Transport MultiModal Transport... over a distance less than 50km Multimodal Transport & Containers Contents Comparison of Transport Modalities Multimodal Transport Combinations Developments in Multimodal Transport Multi Modal