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Unit TRANSPORTATION Kinds of packing • • • • • • • • Carton Bale Container Drum Crate Case Barrel Sack Kinds of goods • • • • • • • Gearboxes Meat Tyres Crockery Cement Wine Flowers Common symbols in transport • Fragile Common symbols in transport • Keep Dry Common symbols in transport • This Side Up Common symbols in transport • Heavy Common symbols in transport • Do Not Freeze Common symbols in transport • Do Not Stack Common symbols in transport • Explosives • Symbol (exploding bomb): black on orange bottom, the number "1" in the bottom corner Sea transportation • Disadvantages of sea transportation -Transhipment to other forms of transport essential -Inflexible timetabling -Delays due to bad weather -High capacity means disproportionate increase in transit time -Heavier packaging -Slow speeds -Low speed over long distances - Less frequent services Air transportation Air transportation • Types of air transport -Seaplanes -Passenger jets -Helicopters -Airships -Hot-balloons Air transportation • Goods transported by air -Platinum -Medical supplies -Fashion goods -Fresh flowers Air transportation • Necessary for goods lose value overtime and deteriorate • Use for speed, particularly over long distances • Insurance tends to be cheaper as consignments spend less time in transit • With bulk consignments, air is much more expensive • The main document – Air Waybill, which consists of 12 copies distributed to the airline, exporter, importer, and custom • AWB is only a receipt and cannot be transferred to another person Air transportation • Advantages of air transportation -High travelling speed -High speed delivery -Cheap insurance because goods are at risk for shorter periods -World-wide transport operations Air transportation • Disadvantages of air transportation -Transhipment to other forms of transport essential -Restrictions on weight and size -Inflexible timetabling -Delays due to bad weather -Operating and maintenance costs are high -High freight rates Factors to consider when choosing modes of transport • Nature of the goods -Dimensions -Weight -Value -Fragility -Perishability Factors to consider when choosing modes of transport • The time factor: Fast transport -Reduce distribution cost -Reduce cost of finance tied up in transit -Require less insurance cover -Means earlier use/ resale of goods Factors to consider when choosing modes of transport • Freight rates -Sea freight rates -Air freight rates Group E – Departure • EXW – Ex Works (named place): the seller makes the goods available at his premises • the buyer is responsible for all charges Group F – Main carriage unpaid • FCA – Free Carrier (named place) • FAS – Free Alongside Ship (named loading port) • FOB – Free On Board (named loading port) Group C – Main carriage paid • CFR – Cost and Freight (named destination port) • CIF – Cost, Insurance and Freight (named destination port) • CPT – Carriage Paid To (named place of destination) • CIP – Carriage and Insurance Paid to (named place of destination) Group D – Arrival • • • • DAF – Delivered At Frontier (named place) DES – Delivered Ex Ship (named port) DEQ – Delivered Ex Quay (named port) DDU – Delivered Duty Unpaid (named destination place) • DDP – Delivered Duty Paid (named destination place) ... Rail transportation • Advantages of rail transportation -Rarely affected by weather conditions -Quicker and cheaper for distances over 200 km Rail transportation • Disadvantages of rail transportation. .. problem Rail transportation • Types of rail transport -Trains -Trolleys -Trams -Hopper wagon Rail transportation • Goods transported by rail -Bulk liquids -Dry cargo -Coal Rail transportation. .. facilities Road transportation • Goods transported by road -Building materials -Wood products and furniture -Metal products -Machinery and equipment Road transportation • Advantages of road transportation