Chapter 3 transport operation

HO CHI MINH CITY UNIVERSITY OF TRANSPORT Chapter 3: Transport operation PRESENTED BY: BICH HOAI, MSc Contents • International trade • Outsourcing and self-operation • Cost and pricing issue • Transportation of OOG Aspects of International Trade Parties and Tasks Agent Aspects of International Trade Parties and Tasks Types of Agents on the Trading of Goods: • Factors, persons in possession of goods belonging to their Principal to be sold for the benefit of the Principal; • Brokers, namely persons who conduct negotiations on behalf of Buyers and Sellers; • Commission Agents, namely persons who enter into contracts with third parties in their own name, although they not so as agents; • Confirming Houses, namely persons who take on the role of an agent for an overseas buyer who is interested in buying goods from a seller in the country; • Del Credere Agents, namely persons who take on additional risks Aspects of International Trade Parties and Tasks Roles of an Agent on the Trading of Goods • • • • • • • • • • • to market a particular product; to penetrate a market known especially to the Agent; to secure sub-agents to sell the product; to elicit information relevant to the Principal’s business; to represent the Principal; to secure credit on behalf of the Principal; to procure certain goods or services for the Principal; to procure freight space; to procure finance from banks and lenders; to secure insurance for the goods; to secure legal advice in a foreign country Aspects of International Trade Parties and Tasks Types of Agents on the Carriage of Cargo: • Loading Brokers, who conduct loading operations; • Forwarding Agents, whose duties are determined by the contract Their role and duties are open to agreement INTERRELATION BETWEEN INTERNATIONAL TRADE AND FORWARDING ACTIVITIES Legal position of the Freight Forwarder Two different legal positions of a freight forwarder are possible: • Acting as an Intermediary organizing the transport and ancillary services and choosing the carriers and service providers in its own name for and on account of the customer (= traditional freight forwarder) or • Acting as Principal by undertaking in its own name and on its own account to secure the movement of goods from A to B for a customer but then entering into a series of contracts with performing carriers to fulfil the head contract INTERRELATION BETWEEN INTERNATIONAL TRADE AND FORWARDING ACTIVITIES Classic Transport: Shipper Forwarder Trucker Warehouse Airline Railway Ship-owner Forwarder acts as intermediate Multimodal Transport: Shipper MTO Trucker Warehouse Airline Railway Shipowner MTO acts as carrier Incoterms WHAT ARE INCOTERMS? INCOTERMS 2000: There are thirteen (13) terms of delivery The latest edition of these terms is the INCOTERMS 2010, 11 Rules Coming up INCOTERMS 2020 10 DEFINITION OF OVERSIZE AND OVERWEIGHT CARGO IN SEA AND LAND TRANSPORTATION • Normal standard containerized cargoes: ISO 668:1995(E) Container 20′ (20’DC) DIM Outside Inner VGM Inch Container (40’DC) Metric Inch Container (40’HC) Metric Inch Metric L 19′ 10,5″ 6,058 m 40′ 12,192 m 40′ 12,192 m W 8′ 2,438 m 8′ 2,438 m 8′ 2,438 m H 8’6″ 2,591 m 8’6″ 2,591 m 9’6″ 2,896 m L 5,867 m 11,998 m 11,998 m W 2,330 m 2,330 m 2,330 m H 2,350 m 2,350 m 2,655 m 52,900 lb 24,000 kg 67,200 lb 30,480 kg 67,200 lb 03 30,480 kg DEFINITION OF OVERSIZE AND OVERWEIGHT CARGOS IN SEA AND LAND TRANSPORTATION • Over size cargo? • Over weight cargo? • Over size and Over weight in sea and land transportation? 03 DEFINITION OF OVERSIZE AND OVERWEIGHT CARGO IN SEA AND LAND TRANSPORTATION • Road transport: • Non- removable cargo (except Container: 4.35m) • Over sized: Outer Dim- 20m* 2.5m * 4.2m (actual cargo dim: 12m* 2.5m *2,7m) • Over weight: Gross mass 32t (Actual: 20 tons) (Article 12 of Circular 07/2010 / TT-BGTVT of Feb 11, 2010 of the Ministry of Transport) • IWT: • Non- removable cargo • Over sized: 12m* 4m*3.5m 60 OVER SIZE CARGOS DIM: LxWxH: 14.25m x 3.3mx 3.0m G.W:18 tons DIM: LxWxH: 62m x 1.2m x 0.5m G.W: tons 03 OVER SIZED AND OVER WEIGHT CARGOS DIM: • LxWxH: 10mx3mx4.5m • G.W: 120 tons (Topside) - DIM: Lx W xH: 40mx30mx40m G.W: 1,500 tons 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS Technical proposal LOGISTICS SOLUTION Commercial proposal 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS 1/ Technical proposal: 1.1 Commodity details: + Which project; + Type of commodity; + Size; + G.W; + Volume; + Quantity; + Routine; + Time of execution… 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS 1/ Technical proposal: 1.2 Road/routine survey: + Routine; + Obstacles; + Road permit; 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS • 1/ Technical proposal 1.3 Technical offer: + Feasible routine; + Volume of facility and equipment to be used; + Labor to handle; + The transportation permits; + Applied Standard; + The duration to be taken; -> The most effective technical solution to be advised 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS 2/ Commercial proposal: + Pricing; + Selling rate; + Economic effect; + Contingency; + Term and condition; + Valid time; -> Save cost; -> Maximize the value to client; 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS Example: Inquiry 1: • Pick up address: SPCT, ETA 20 May 2019 • Delivery address: Bosch Long Thanh • Cargo: machinery 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS Proposal: • • • • Pick up address: SPCT, ETA May 2019 Delivery address: Bosch Long Thanh Cargo: machinery Technical - Road survey: ready SOW: Trucking - Trailers: low bed trailers Number: Road permit: yes Safety rules: OHSAS 18001-2007 Insurance: third party provided by transporter - Labor to handle: - Duration: day Commercial - Selling rate: 1,500, ex VAT, free on truck - Economic effect: included - Contingency: no need - Term and condition: as per the contract/PO - Valid time: May 2019 03 02 KEY FACTORS TO HANDLE THE OVER SIZE/OVER WEIGHT CARGOS IN PROJECT LOGISTICS 03 REMARKS AND SPECIAL RECOMMENDATION CHECK LIST: Input data; Survey data; Solution on technical side; Reasonable commercial package; Permit; Valid time; Safety and security; Insurance; Contingency; 10 Schedule of the projects; 11 IT application for supervision; 12 Maintain and repair; 13 Record data; 02 THANK YOU 72 ... any channels B/L 1 03 VND 750 3. 2 B/L Fee for Manual SI B/L 1 03 VND 950 3. 3 Late SI Submission B/L 1 03 VND 645 3. 4 B/L Re-issuance B/L 1 03 VND 750 3. 5 Seal Fee B/L 1 03 VND 180 3. 6 Amendment of... (CMS) Cont 1 03 VND 700 Container Imbalance Charge (CIC) Teu 1 03 VND 3. 1 discharged @ HoChiMinh/VungTau Port Teu 1 03 VND 1,125 3. 2 discharged @ HaiPhong Port Area Teu 1 03 VND 2,150 3. 3 discharged... service vs Self- operation Selection For- hire carrier: (outsource transportation ) Privately controlled transportation : - Cost and service trade off - Cheaper operation cost - Modes of transport comparison