Logistics, Trade Administration and Supply Chain

The responsibilities of Multimodal Transport Operators (MTOs) are many and here are some illustrations: MTOs Liability The MTO: contracts with shipper to move the cargo from one point to another, on a single transport documentation, accepts responsibility for goods in transit, may subcontract some or all transport tasks, takes over risks for the entire transport chain. MTO Liability in Loss or Damage. In event of loss and damage: cargo owner is entitled to claim against MTO, according to the agreed terms and conditions in the MT documentations, in practice, the owner will demand compensation from the insurer, insurer claims against MTO or its liability insurers. MTO Liability - Options: uniform liability - single liability; regardless of where damages occurred; network liability - varying limits; depending on applicable limits; for underlying modes of transport. Network Liability System This liability system incorporates: precise rules to each transport mode if loss or damages can be l...

Rules for any modes of transportation are as follows: EXW - Ex-Works FCA - Free Carrier CTP - Carriage Paid To CIP - Carriage and Insurance Paid to DAT - Delivered At Terminal DAP - Delivered At Place DDP - Delivered Duty Paid Rules for Sea and Inland waterway transportation: FAS - Free Alongside Ship FOB - Free On Board CFR - Cost and Freight CIF - Cost Insurance and Freight The definitions of each Incoterm rules are based on the following: Ex-Works (......name place of delivery) - EXW Carriage of goods to be arrange by the buyer. Risk is transfer from the seller to the buyer when the good are at the disposal of the buyer. The Cost is transfer from the seller to the buyer when the goods are at the disposal of the buyer. Free Carrier (......name place of delivery) - FCA Carriage of goods to be arranged by the buyer or by the seller on the buyer's behalf. Risk transfer from the seller to the buyer when the goods have been delivered to the carrier at the named place. The Cost is tran...

There are two types of MTOs which are as follows: Vessel Operating MTOs (VO-MTOs) Mainly because of containerization many shipowners have now extended their to services to also include carriage over land and even carriage by air. They used not to own or operate the transport of goods by road, rail or air but arrange for these types of transport by sub-contracting. They would usually sub-contract inland stevedoring and warehouse services. Non-Vessel Operating MTOs (NVO-MTOs) Other transport operators (than ocean carriers) may sub-contract the ocean voyage. They are known as "Non-Vessel Operating MTOs" or "Non-Vessel Operating Common Carriers" (NVOCCs). These types of MTO often own only one type of transport means e.g. trucks or in rarer case, airplanes and railways. Those who do not own any means of transport may include: Freight Forwarders Customs Brokers Warehouse Operator Stevedoring Companies These types of MTOs will have to sub-contract for all modes of transpor...

Multimodal transport contract means a contract whereby an MTO undertakes, against payment of freight, to perform or to procure the performance of international MTO. Multimodal transport document (MTD) means a document which evidences an MT contract, taking in charge of the goods by the MTO and an undertaking by him to deliver the goods in accordance with the terms of the contract. MTO Criteria: a) Recognized Operator b) Contractual c) Freedom of Action d) Independent Status e) National Licence f) International Recognition g) Resources Scope of Services Some MTOs may own one or more means of transport, handling equipment, containers, etc particularly when there are ship operators, truck operators of railway or airlines. They may also own container depots and warehouses. But some may not own any of these and may therefore engage transport undertakings under contract to them. Some MTOs may also charter ships. The range of services which MTOs provide directly or through their sub-contracto...

A global scenario is developing whereby: a) production, manufacturing, distribution and consumption is becoming increasingly sophisticated in order to ensure products are available in the global market place at the correct time, for the correct price and in good condition. b) transport services are changing in nature to meet the demands of buyers and sellers involved in the global production and consumption cycle. c) transportation services demanded by buyers and sellers increasingly involve collection of goods at a place in one country for delivery to a place in another country within specified time frames and with contractual agreement clearly setting out areas of responsibilities and liability. d) results of containerization. e) new technologies in transport (including communication systems). The name commonly applied to this all embracing transport service is Multimodal Transport. What is Multimodal Transport? The United Nations Convention on International Multimodal Transport of G...

Conventional trucker hauls goods that are in loose form or unitized by pallets but not pre-stowed in containers. Sometimes, the loading and unloading of unpalletized goods on conventional trucks may be carried by the truck driver or his assistant. Types of Goods Any goods can be transported by conventional trucks so long as they are not overweight (more than 12 tonnes per piece), overheight (not specific but to the extent where it does not pose stability problem for the trucks during transportation and is able to pass under structures along its route), overwidth (cargo extend beyond the sides of the vehicle thus causing danger to other road users. Goods are mainly dry and if liquid or in grain form, they should be placed in containers designed for the purpose i.e. drums for liquid or bags for solid grains, conventional goods maybe normal or bonded. Normal goods are transported without special requirements regarding the security and the documentation (customs approval). Bonded goods mus...

As haulage operators, the responsibilities of the company are as follows: To accept the request of transport and to ensure all relevant documents, payments, releases and approvals have been obtained. To collect the container from where it is stored (port or depot) and deliver it to the address or destination according to the time stipulated by the hirer. If no date or time is stipulated, the haulier may have it delivered within 48 hours. To ensure the safety of the cargo and container during custody by haulier, his employee or agent assigned. Responsibilities of hirer, user or cargo owners: Responsibilities of either party is stated in the Conditions of Carriage and Tariff usually issued by a haulage operator, which is made available on request by the user or his agent. To receive the cargo in good order, check, seals and accept. To unstuff the container or unload the cargo as soon as possible and if possible within contractual period of 2 hours. To inform the haulier about the readine...