252424 - Structures of the Surface Freight Forwarding environment

Welcome to the

Outline the structure of the Surface
Freight Forwarding environment
US 252424

1

Objectives

• Describe the roles played by those involved in
international multimodal logistics operations.

• Describe the infrastructure for the transport of
internationally traded goods by surface.

• Identify equipment used to pack and transport
goods by surface.

SPECIFIC OUTCOME 1
Describe the roles played by those involved in
international multimodal logistics operations.

ASSESSMENT CRITERION 1
The impact of international regulatory and
industry representative bodies is described in
terms of surface freight forwarding industry

Regulatory and non-regulatory Bodies

• Regulatory body: decisions are usually required
to be adopted into the law of the countries

• Non regulatory body: industry representative
body where the adoption of any of its
recommendations or documentation is
voluntary

Regulatory and non regulatory bodies - examples

Regulatory Non regulatory

United Nations Conference on Trade International Chamber of Commerce
and Development (UNCTAD) (ICC)
World Customs Organisation (WCO) International Federation of Freight
Forwarders Associations (FIATA)
World Trade Organization (WTO)
World Bank
International Maritime Organization
(IMO)

World Trade Organisation (WTO)

• Series of negotiations which are called
“rounds” (see following)

• Non-Discrimination
• Reciprocity
• Binding and enforceable commitments
• Transparency
• Safety valves

GATT/ WTO Rounds

World Bank

• Provides leveraged loans to developing
countries for capital programs through:

– International Bank for Reconstruction and
Development (IBRD)

– International Development Association (IDA).

World Bank – 5 key factors for economic growth

1. Build capacity
2. Infrastructure creation
3. Development of Financial Systems
4. Combating corruption
5. Research, Consultancy and Training

International Maritime Organisation (IMO)

• Maritime Safety Committee
• Marine Environment Protection

Committee
• Legal Committee
• Facilitation Committee

International Federation of Freight Forwarders Associations
(FIATA)

"Fédération Internationale des Associations de Transitaires et
Assimilés“

Objectives:
– unite freight forwarding industry worldwide
– represent, promote and protect the interests of the industry
– familiarise trade and industry and public with services
rendered by freight forwarders
– improve the quality of services rendered by freight forwarders
– assist with vocational training for freight forwarders, liability
insurance problems and electronic commerce tools

ASSESSMENT CRITERION 2

The seafreight industry is described in terms
of the services provided for importers and

exporters.

Tramp and Liner Operations

• Tramp Service: no fixed routing/ itinerary/
schedule - available at short notice (or fixture)
to load any cargo from any port to any port

• Liner Service: operates within a schedule, has
fixed port rotation with published dates of calls
at advertised ports

Shipping market segments by vessel type

1. Bulk Transport 2. Specialised Transport 3. Liner Transport

Bulk carriers Forest Product Carriers Containerships
Crude oil tankers Veg-oil tankers Multipurpose ships
Product tankers
Combos Chemical Carriers Ro Ro carriers
Gas Carriers Ro Ro freight carriers
LPG Carriers Ro Ro trailer carriers

LNG Carriers
Reefers

Car/vehicle carriers
Ro Ro carriers

Types of Cargo Movement

• Bulk
• Breakbulk
• Containerised:

– FCL
– LCL/ Groupage

ASSESSMENT CRITERION 3

The respective roles of the different role
players in executing international surface
logistics operations is explained in terms of

the value they add to importers and
exporters.

Role-players in the International Supply Chain

Roles of each player

• Importer
• Exporter
• Commercial Banks (Buyer/ Seller)
• Airport/ Port Authorities
• Customs/ Statutory bodies
• Transport operators/ hauliers
• Consolidators
• Freight forwarder
• Clearing agent/ Customs broker
• Insurance/ Risk Management companies

ASSESSMENT CRITERION 4

The role of the freight forwarder is described
in terms of designing and executing
international logistics systems

Freight Forwarder- 3 legal roles + 3PL

• Agent of importer / exporter of the goods
(depending on Incoterms)

• Contracting carrier and assuming carrier
liabilities although not performing the
carriage himself

• Performing carrier, but also
• 3PL

ASSESSMENT CRITERION 5

The prime documents requirements for the
different modes and nodes of transport are
identified for the execution of international

surface transport operations.

Purchase Order Essential Information. 1

• References:
• Seller's details:
• Buyer's details:
• Appointed Freight Forwarder/Carrier/Clearing Agent
• Supply address
• Delivery address:
• Expected date of arrival:
• Handed over to Forwarder or Carrier:

Purchase Order Essential Information. 2

• Country of origin:
• Transport mode:
• Type of Shipment
• Port of loading:
• Port of discharge:
• On delivery to
• Terms of delivery: (Incoterms)
• Method of payment
• Credit terms: e.g. Sight, 30/ 60/ 90 days

Purchase Order Essential Information. 3

• Description of goods:
• HS Codes:
• Quantities, Unit Prices and Price extensions:
• Unit Prices/ Extensions:
• Marks and Numbers
• Documents required/ Document distribution
• Insurance requirements:
• Other instructions
• Buyer signatory

Other Documentation

• Pro-forma Invoice
• Documentary Credit:

ØUnconfirmed credit
ØConfirmed credit

• Commercial/ Suppliers Invoice (discussed
above)

• Permits

Bills Of Lading: Legal Characteristics

• Receipt for Goods Shipped:

– Received for Shipment
– Received on Board
– “Clean” or “dirty/ claused”.

• Evidence of a Contract of Carriage
(Affreightment)

• Document of Title which can be Negotiable

Different Types Of Bills Of Lading

• Ocean or Master Bills of Lading
• House Bills of Lading:

– Subject to the terms and conditions of the freight
forwarder, consolidator or NVOCC issuing them

– FIATA Bill of Lading (FBL)
• Non Negotiable Waybills
• Port to Port Bills of Lading
• Combined Transport/ Multimodal Transport Bills of Lading
• Through Bills of Lading

Other Surface Transport Documents

• Consignment Note
• Delivery Note/ Proof of Delivery (POD)

SPECIFIC OUTCOME 2
Describe the infrastructure for the transport

of internationally traded goods by surface.

ASSESSMENT CRITERION 1
South Africa's road and rail infrastructure is described in

the context of movement of imports and exports.

Transnet Freight Rail

• GFB Commercial (General Freight
Business)

• Coaline
• Ore Line

Transportation by Road

• Road Traffic Act No 29 of 1989
• National Road Traffic Act No 93 of 1996
• Cross-border Road Transport Act No 4 of

1998
• National Roads Act No 54 of 1971

Commodities Transported by Road

• Bulk Cargo
• Breakbulk Cargo
• Perishable Goods
• Containerised Cargo
• Abnormal Loads

Cargo Transportation by Sea

National Ports Authority (NPA)

Seaports controlled and managed by NPA:
– Richards Bay,
– Durban,
– Saldanha Bay,
– Cape Town,
– Port Elizabeth,
– East London,
– Mossel Bay, and
– Ngqura (Coega)

Port Specialisation

• Richards Bay: coal, wood-chips
• Durban: forest products, ferro-alloys,

chrome ore and alumina, crude oil imports
• Saldanha Bay: iron ore exports, crude oil

imports
• Cape Town: Fruit and agricultural produce
• Port Elizabeth: manganese ore, CKD vehicle

components

ASSESSMENT CRITERION 2

The facilities provided by cargo handling
installations are described in relation to

surface freight operations

Port Facilities

• Container Terminals

vInland Container Terminals

• Container Depots
• Car Terminals
• Breakbulk (Multi-Purpose) Terminals
• Specialised cargo berths/ storage facilities

SPECIFIC OUTCOME 3
Identifying equipment used to pack and

transport goods by surface

ASSESSMENT CRITERION 1
Road vehicles are described in terms of their

capabilities and limitations

Types of Road Vehicles

8 Tonner

12 Ton Rollback

3 Axle Semi-Trailer / 3 Axle Low bed

4 Axle Low-bed

3 Axle Step Deck

3 Axle Extendable

Super Link 1

Super Link 2

ASSESSMENT CRITERION 2

Rail trucks used to transport goods over-
border and for export are described in terms

of their capabilities and limitations

Types of Rail Wagons

• Flatbed for containers (SHLJ – 12)
• Wagon for general goods (DZ – 7)

- Wagon for general goods (CALJ – 1)
• Timber wagon (STLJ – 3)
• Wagon for motor cars (SCJ - 6)

- Grain Wagon (FGLJ – 2)
- Sugar Wagon (FCD – 2)
• Coal Wagons (CCL – 8 and A - 1)
• Tank wagon for anhydrous ammonia (XNJ – 7)
• Tank wagons for cement (XBLJ – 13 and XB – 5)

ASSESSMENT CRITERION 3

Types of vessel are identified for the transport
of different cargoes