1. Lesson 7 Transportation Spoken English for International Business

2. Lesson 7 Transportation Learning Point From this lesson, we should know the functions of transportation, the modes of transportation, bill of lading, how to make shipment correctly and deal with shipping problems in international business transactions.

3. Lesson 7 Transportation Background Knowledge Transportation is fundamental to the development and operation of an industrial society. The freight system includes several distinct forms of transportation, called modes. The five major modes are water, rail, truck, pipeline, and air. And sometimes even multimodal ways is used in international cargo transportation. Shipping is the most extensively used form of transportation in the international trade. For instance, more than eighty percent of China’s exports are carried by sea-going ships. The most important shipping document is the bill of lading, or B/L for short, which is a document signed by or on behalf of the master of a carrying vessel, certifying that the goods have been received on board in good order for transportation and delivery as specified in the document.

4. Lesson 7 Transportation The Bill of Lading fulfils at least three important functions: first, it serves as a receipt for goods signed by the shipping company (carrier) and given to the shipper (consignor); second, it is also evidence of a contract of carriage between the carrier and the consignor; and third, it conveys a document of title because the legal owner of the bill of lading is the owner of the goods it covers.

5. Lesson 7 Transportation Case Study

6. Lesson 7 Transportation Wrong interpretation of the convention (the first meeting) F: It looks like we can come to a deal now. At this price (referring to the firm offer C has for him), I'd like to purchase 100 dozen of each of your men’s and women’s gloves. C: Okay. Let me repeat what you’ve just said to see if I understand you correctly. Your purchase will be 200 dozen of gloves, 100 dozen for men and 100 dozen for women, at the price of $ 1,670 CIF Vancouver, correct? F: Yes, that’s very good. Correct. C: Alright. Let me get the copy of the contract ready then and we’ll be able to sign it tomorrow. F: One thing which I'd like to make a particular point is that please do not make partial shipment. Let me repeat this one more time: no partial shipment, okay? Can you include this item in the con­tract? It is important to us. C: Certainly. I don’t see why we can’t.

7. Lesson 7 Transportation (the second meeting, four weeks after the first shipment was effected ) F: I think last time we both clearly and explicitly agreed to every item and clause in the contract. As a matter of fact, you pre­ pared the contract yourself, and everything was clear and concise. You had no objections either. But now why was there the change? Why did you make partial shipment, each including only 97 pairs? C: I do owe you an explanation. We changed to partial shipment when we found the quality of some of the gloves was below re­ quired standard. So the goods were short loaded. But I must say our intention in doing so was well meant. It was only out of the consideration to keep up with the standard of the commodity you were going to receive the partial shipment was made. F: That's why eh? I really don't think you have the support of trade conventions in doing so. C: Oh yes, we did. According to Item No.209 in the Conventions of Letter of Credit against Shipping Documents, the amount of the goods can be allowed to be more or less within a total of 3%.

8. Lesson 7 Transportation F: I happen to have an official copy of the Conventions of Letter of Credit against Shipping Documents on hand right here. You want to have a look at it? Under Item No. 209, following what you quoted just now, there is another restricting statement refer­ring to this 3% quantity variation. It reads: “This more or less percentage does not apply where the goods in the contract are calculated in units of package or dozen.” C: (now realizes they have made a mistake) Oh, no. So that’s why the opening bank refused to make the payment? F: I'm afraid so. C: What's your suggestion then?

9. Lesson 7 Transportation F: There are two alternatives' one, you pay us for the damage; two, you reduce the original price of the commodities so that we can sell them fast. Of course, both are unfavorable to you. As we are trade partners, from a friendly point of view, I'd suggest you take the second alternative: reduce the price. C: It’s obvious then. How much you’d like to see the price reduced? F: I'm a reasonable man and we’re trade partners. Not much. Just 5%. C: Fine. I agree. F: Good, that's a deal. You're a direct and frank man. You have style in handling business.

10. Lesson 7 Transportation Class Activity

11. Lesson 7 Transportation Compose dialogue on the following situations. You represent the China North West Oil Fields Administration Bureau. Because of the recent discovery of a huge oil field in Xingjiang, you’ve imported a piece of extraordi­narily large oil field equipment from the United States. This equipment weighs 40 tons, and is 47 meters in length and 10 me­ters in diameter. Now you talk to your American counterpart on how the shipment of this giant equipment could be made.

12. Lesson 7 Transportation Exercises

13. Lesson 7 Transportation I. Answer the following questions. 1. What are the five modes of transportation? 2. What are the functions of bill of lading? II. Interpret the following sentences. 1. 我们提供的集装箱，可以两头同时打开进 行装运。

14. Lesson 7 Transportation 2. 这种集装箱的防水性能也不错，装货后的封 闭也简单。 3. 我们联系了几家船运公司和代理，但他们在 下月 25 号之前都没有船。 4. 预期装船将在 7 月 15 日前完成，船到纽约是 在 8 月 30 号。 5. 这批货物的装运挺复杂，要均成六份，分送 给两个目的港。