Chapter 5 International Logistics

Learning Objectives After learning this chapter, you will be able to: Understand the international trade terms Understand the modes of international cargo transportation Understand the importance and procedures of customs declaration Understand the procedures and skills in insurance Know the major documents involved in international logistics

Outline of the chapter 5.1 Introduction to International Logistics 5.2 International Trade Terminology 5.3 International Cargo Transportation 5.4 International Cargo Insurance

5.3 International Cargo Transportation 5.3.1 Ocean Transportation 5.3.2 Core Words and Expressions

5.3.1 Ocean Transportation Ocean transportation is the most internationally used mode of goods transportation, with about 80% of world trade developed in this way. There are three basic types of ocean carriers: (1) private fleets; (2) tramps/charter (chartered or leased vessels)（不定期租船）; (3) liner carriers.

Private fleets Private fleets are usually owned by merchants or manufactures themselves in order to carry their own goods. Oil companies and lumber companies often own and operate large fleets or specialized ships in order to control both the availability of carriage and the cost thereof and insure that the appropriate ships are available to meet their special needs.

tramps/charter Most trading companies do not have the need on an ongoing basis to economically warrant ownership and operation of their own ships. These traders fall into the category of shipload size shippers or less than shipload size shippers. Shipload shippers are companies that ship thousands of tons of cargo at a time, such as grain, ore, and chemicals. They avail themselves of “tramp” shipping services, chartering vessels as they need them. The Tramp ships service do not operates on a regular schedule. It travels to the place wherever the company wants the cargo to be delivered.

liner carriers Shippers of small quantities of goods usually utilize liner services. The Linear ships travel on a regular voyage and it has a pre-established schedule with the determined ports.

Marine Bill of Lading A marine Bill of Lading (B/L) is one of the most important documents in international business, which represents both a receipt for goods shipped and a contract for shipment between the shipping company and the shipper（托运人，发货人）. It is also a document of entitlement to the goods, giving the holder or the assignee （受让人）the right to possess the goods. It is issued and signed by a shipping company or its authorized agent（授权代理人）.

Bill of Lading A bill of lading must be negotiable and serves three main functions: It is a conclusive receipt, i.e. an acknowledgment that the goods have been loaded; It contains or evidences the terms of the contract between the consignor（发货人） and the shipping company; It serves as a document of title to the goods,

Types of bill of lading Bills of lading may take various forms, including: Shipped (or on board) bill of lading Received (or received for shipment) bill of lading Clean bill of lading Unclean (or foul, or claused) bill of lading Through bill of lading（直达提单） Container (or combined transport) bill of lading

Types of bill of lading Shipped (or on board) bill of lading（已装船提单）: An on- board bill of lading denotes that merchandise has been physically loaded onto a shipping vessel, such as a freighter or cargo plane. Received (or received for shipment) bill of lading（待装船提 单）: A received-for-shipment bill of lading denotes that merchandise has been received, but is not guaranteed to have already been loaded onto a shipping vessel. (Typically, it will be issued by a freight-forwarder at a port or depot). Such bills can be converted upon being loaded.

Types of bill of lading Clean bill of lading（清洁提单）: A bill of lading that denotes that merchandise is in good condition upon being received by the shipping carrier is referred to as a "clean" bill of lading. Unclean (or foul, or claused) bill of lading（非清洁（附条件） 提单）: A bill of lading that denotes that merchandise has incurred damage prior to being received by the shipping carrier would be known as a "foul" or "claused" bill of lading. A claused bill of lading will have a statement (clause) written onto the bill of lading noting down any damage or other issues. Letters of credit usually will not allow for foul bills of lading, and the buyer is not obliged to accept any bill of lading that is not clean.

Types of bill of lading Through bill of lading（直达提单或联运提单）: In some cases, it is necessary to employ two or more carriers to ship the goods to the final destination. The carriage therefore may be either by a second vessel or by a different form of transport. Shipping companies issue through bills of lading which cover the whole carriage, and the shipper deals only with the first carrier who signs the through bill of lading and collects the freight for the whole journey.

Types of bill of lading Container (or combined transport) bill of lading（集装箱 提单）: Containers are now playing an increasing role in international shipping and container bill of lading is becoming more common in use. They cover the goods from port-to-port or from inland point of departure to inland point of destination.

Contents in a bill of lading A typical bill of lading includes the following information: The name of the shipper (usually the exporter) The name of the consignee The name and address of the notifying party (the person to be notified on arrival of the shipment, usually the buyer) The name of the carrying vessel The date the goods were received for shipment and/or loaded on the vessel. Full description of the cargo (provided it is not bulk cargo) including any shipping marks, individual package numbers in consignment, contents, cubic measurement, gross weight, net weight, etc. Port of shipment and port of discharge The items of the contract of carriage Full details of the freight, including when and where it is to be paid-whether freight prepaid or payable at destination. Number of bill of lading The signature and the date

Title to and endorsement of a bill of lading When bills of lading are made out, or endorsed, to a named consignee, then only that consignee can take delivery of the shipment.A B/L made out to a named consignee can be endorsed only by that consignee, not the shipper. Once a consignee has been named，the original shipper no longer has any power to alter the B/L in connection with title to the shipment. A bill of lading is a negotiable instrument and can be passed from a shipper through any number of parties, each party endorsing it to assign title to the next party. The only condition is that title can be assigned only by the party shown on the bill as having title at the time.

An example of blank bill of lading The chief points incorporated in the bill of lading : • Marks & Nos: 唛头及件号 • Number and Kind of Package: 件 数和包装种类 • B/L No.: 提单号码 • Shipper/consignor: 托运人 • Description of Goods: 货物描述 • Consignee: 收货人 • Gross Weight, Measurement: 毛重、 尺码 • Notify party: 被通知人 • Freight and Charges 运费和费用 • Pre-carriage by: 首程运输工具 • Freight Payable at 运费缴付地 • Place of Receipt: 收货地点 • Number of Original B/L 正本提单份 数 • Ocean vessel: 船名 • Voy. No.: 航次 • Place and Date of Issue 签单地点 和日期 • Port of Loading: 装运港 • Port of Discharge: 卸货港 • Signed for the Carrier 承运人签字 • Final Destination: 最终目的港