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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Evolution of Multimodal Transport
Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport - Evolution
Segmented Transport Pre-containerization era Different modes of transport Separate contracts Road Transportation Sea Transportation Loading in Port Insurance Discharge at destination Transportation to Importer’s Warehouse Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport - Evolution
Segmented Transport Implications Presence of trading parties at all stages Difficulty in determination of all costs Poor co-ordination - transport Poor co-ordination - documentation Difficulty in cargo claims settlement Complexity of business Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport - Evolution
Transport Logistics Ship Owners – Cargo Owners Responsibility – Loading to Discharge Ship’s rail taken as datum Marks & numbers Cargo condition Appropriate clauses in B/L Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport - Evolution
Transport Logistics Containerization Ships rail no longer a datum Datum point moved inland Container as cargo unit New terms to establish responsibilities Buyer & Seller Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport - Evolution
Transport Logistics Implications Legal implications between buyer & seller re-established Negotiable transport documents MTC evidences taking charge of goods & undertakes delivery as per terms of contract Introduction of INCO terms Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Definition – Multimodal Transport
“The carriage of goods by at least two different modes of transport on the basis of a multimodal transport contract from a place in one country at which the goods are taken in charge by a multimodal transport operator to a place designated for delivery in a different country.” One transport document, one rate and through liability are used Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Definition – MTO “A person who on his own behalf or through another person acting on his behalf concludes a multimodal transport contract and who acts as a principal, not as an agent, or on behalf of the consignor or the carriers participating in the multimodal transport operations and who assumes responsibility for the performance of the contract.” Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Definition – MTC “A contract whereby a multimodal transport operator undertakes, against payment of freight, to perform, or to procure the performance of international multimodal transport.” Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Definition – MTD “It is the evidence of multimodal transport contract, which means taking the charge of the goods by the multimodal transport operator and undertaking by him to deliver the goods in accordance with the terms of the contract.” Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Unimodal – Intermodal - Multimodal
Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Unimodal Transport Single mode of Transport Each carrier issues own transport document Bill of Lading Airway Bill Consignment Note Example: Ocean transport combining move by two vessels basis trans-shipment Through Bill of Lading Responsibility may vary Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Intermodal
It is the movement of cargo from origin to destination by several modes of transport Each of the modes have a different transport provider or entity responsible Each contract is independent Multiple carriers during a single journey Differentiation lies in the contract and responsibility of the movement Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Intermodal Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria Operation an Intermodal operation as involves several contracts Between Seller or Buyer and Transport service provider for road movement from ICD TKD to Bhiwadi (empty) & Bhiwadi to ICD TKD (loaded) Between Seller or Buyer and Carrier for sea movement from Nhava Sheva to Durban Between Seller or Buyer and Transport service provider(s) for rail/road movement from Durban to Pretoria Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Intermodal Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria Operation an Intermodal operation as involves several contracts The costs/risks for such contracts will of course depend on the Incoterms® used for this trade The carrier issues a port to port Bill of Lading Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
Multimodal Transport Intermodal Transport Several modes of Transport One or several transport documents Issuing carrier may not take responsibility for entire transport Ocean carrier may issue “Combined Transport Bill of Lading” First carrier responsible for his part of transportation As Agent – subsequent modes Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Multimodal
It is the movement of cargo from origin to destination by several modes of transport Each of these modes have a different transport provider or entity responsible Governed under a single contract Single carrier during a single journey Differentiation lies in the contract and responsibility of the movement Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Multimodal Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – Pretoria Operation a Multimodal operation as involves single contract Here, neither the seller nor the buyer are arranging any contracts other than their contract of carriage with the carrier The costs/risks for such contracts will of course depend on the Incoterms® used for this trade In this case, the carrier issues a Combined Transport Bill of Lading or a Multimodal Bill of Lading Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Aim-Multimodal Transport Efficiency
Faster Transits Reduced Costs Competitiveness for Exports Reduced Import costs Savings in Foreign Exchange Co-ordination-different modes Co-ordination-documentation Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Multimodal Transport Freight Structure
Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Multimodal Transport Freight Structure
Containerized cargo Origin – hinterlands Road / Rail to Port Road preferred option No transit guarantees given by rail No dedicated rail tracks for freight movement Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Multimodal Transport Freight Structure
Ocean Freight Inland Freight Factory stuffed / ICD stuffed / Port stuffed USA – Shipping Line owns or leases trucking services Inland Freight – Interstate Commerce Commission Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Multimodal Transport Multimodal Transport Freight Structure
Inland Freight structure Rail vs. Road Road transport Container size Cargo weight Nature of cargo Distance Border crossings Octroi posts Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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