Knowledge Module 1 Learner Guide

SAQA 96368 Knowledge Module 1

Dangerous when wet.

• 4.1 – Flammable solids, usually burn more easily than materials like wood and paper.
When burning of these flammable solids occur, the flames will be aggressive and
rapid, resulting in high levels of heat. Flammable solids can also decompose
dangerously and produce toxic gases.

• 4.2 – Spontaneously combustible, can either be in solid or liquid form. Spontaneously
ignite when in contact with oxygen, so must be kept in airtight protection or as liquids
under a special blanket. Ignition levels can vary depending on the material, ranging
from five minutes to lengthy periods of time. Classification also adheres to Packing
Groups I, II and III depending on the ignition level of the material.

• 4.3 – Dangerous when wet, reacting with water (liquid or vapour form), which causes
flammable gases. These flammable gases can ignite through the heat of the reaction.
Class 4.3 must be kept in watertight, sealed containers.

Class 5.1 / 5.2

Oxidising Agents
Organic peroxides

• 5.1 – Oxidising Agents, feature high oxygen content, which can be the reason for a
chemical reaction. May oxidise with other flammable and combustible materials,
producing heat, resulting in fire, and burning. The only way to put out an Oxidising
Agent-caused fire is by large amounts of cold water.

• 5.2 – Organic peroxides, its molecule structure contains carbon and oxygen which
makes the substance vulnerable to ignition. Materials are likely to be used in industrial
settings and can as a result be unpredictably explosive. Usually classified as either
Class 1 or Class 5.2, reflective of its purpose. Often kept at a temperature-controlled
(refrigeration) level to keep the molecules inactive and to prevent from reacting (and
creating a fire or explosion). Organic peroxides can be highly damaging to the human
body, specifically the eyes.

Class 6.1/6.2

Toxics
Infectious substances

• 6.1 – Toxics, which are chemical poisons that can cause damage to the human body,
whether it be exclusive to one exposed part, or the entire body. Toxics must not be
able to get inside of the body, whether it be through swallowing, breathing or
absorption of the skin as the toxics can kill in minutes. Some toxics may not kill if the
exposure is low but will harm the body. 6.1 can be in solid or liquid form, and toxic
gasses are classified as Class 2.3.

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• 6.2 – Infectious substances, contains pathogens, such as micro-organisms that can
cause infectious diseases in both animals and humans if exposed to the substance.

• Category A – Substance is capable of causing permanent disability or life-threatening
diseases to humans or animals. Examples are Rabies Virus, Ebola Virus and Hepatitis
B Virus.

Class 7

Radioactives

Radioactives are materials that have unpredictable atoms that change their structure at
random over a period of time, emitting radiation that can be harmful to animals and humans.
Depending on the type of radiation, exposure can cause damage to the body, including
mutation and biological changes. Radioactive packages are generally safe to import and
export, as the packaging acts as protection. However, it can still be dependent on how
radioactive the source is.

Class 8

Corrosives

Corrosives, often described as acids of alkalis, are highly damaging substances that can cause
positive chemical changes, affecting the material that has come in contact with it. This can be
highly damaging to the body, destroying tissue and organs in the human body.

Corrosives are packaged specially with the corrosive level considered. Assigned to Packing
Groups, corrosives are packaged according to its ability to destroy the full thickness of skin
tissue over an observation period. There are strict requirements for transporting corrosives,
especially via ocean freight.

Class 9

Other Substances

Class 9 covers the substances that are not already covered by the previous classes, yet still
threat some sort of danger. Furthermore, these properties cannot be included in the UN Class
system due to crossing two or more Class boundaries. The information has to be recorded on
the individual material to warn for dangers and what the contents includes. The two UN
numbers in Class 9 for environmentally hazardous materials. UN 3077 Environmentally
Hazardous Substance Solid N.O.S and UN 3082 Environmentally Hazardous Substance Liquid
N.O.S.

Packaging and tanks

As highlighted in some of the classified substances above, materials may need special
packaging or tanks to contain them.

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Whether it be for storage or transport purposes (or both), it is vital that the packaging is
suitable. Should the goods be incorrectly packaged or stored, it could increase risks, and even
trigger ignition, corrosion, or harm.

Referring to volume 2 of the aforementioned ‘orange books’, ADR require that the packaging
be defined by standardised terms (Chapters). Transporters are also required to list details
regarding the construction and testing of the packaging/tanks.

Here is an example of the details that should be provided when listing the packaging and/or
tanks when transporting a load:

• UN No.1263 Paint product in PG I (first entry)

• Column 8 shows that it may be packed according
to the instruction P001.

• In turn, top of column 8 directs you to para 4.1.4, which gives the details of what
P001 allows.
A wide range of packaging types is given.

(Taken from hse.gov.uk )

Different requirements may apply according to the details of previously mentioned,
Packaging Group (PG).

In most cases, packaging needs to be certified to UN standards. Testing may need to be
carried out on the packaging to test for its durability. Certified packaging is referred to as
‘type-approved’, or ‘UN certified’.

Examples of types of tanks are pressure receptacles (aerosols), intermediate bulk containers,
portable tanks, and vacuum-operated waste tanks.

Safety Data Sheet

The Safety Data Sheet (SDS) are key documents that must be used to safely supply, handle,
and use chemicals. It is required to be used by the REACH (Registration, Evaluation,
Authorisation, and restriction of Chemicals) Regulation, and is enforced for safety reasons
due to the high-risk nature of the dangerous goods.

The SDS details about the hazardous goods plus risk assessment information by Control of
Substances Hazardous to Health Regulations (COSHH). A SDS is not an assessment itself, but
more of an informative document.

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When should you supply an S.D.S?

According to REACH Regulations, you must provide a SDS if you supply a substance or mixture
that is classified as hazardous under the CLP Regulation, if you are a supplier and your
customer requests an SDS, or you are a supplier of a product listed as ‘special case’ in the CLP
Regulation. Even in the event of using materials that are not classified as hazardous, but
contain small amounts of hazardous substances, a SDS is required.
What information needs to be listed on an S.D.S?

1. Identification
2. Hazard identification
3. Composition/ information on ingredients
4. First-aid measures
5. Fire-fighting measures
6. Accidental release measures
7. Handling and storage
8. Exposure control/ personal protection
9. Physical and chemical properties
10. chemical stability and reactivity
11. Toxicological information
12. Ecological information
13. Disposal considerations
14. Transport information
15. Regulatory information
16. Other information

Transporting hazardous goods

Hazardous goods have to be transported with care. Depending on the mode of transport,
special requirements may have to be made in order for the load to reach its destination safely
with minimal risks. For example, dangerous Class 1 high-pressure gas loads on an air cargo
load could increase risks being at higher altitude, or 4.3 (Dangerous when wet) loads may
need extra attention if being carried via sea.

According to the IATA Dangerous Goods Regulations (DGR), shippers must provide a DG
Shipper’s Declaration (DGD) as well as an electronic version (e-DGD). The electronic version
is required for digital, safety and accessibility reasons.

Dangerous Goods Global Bodies
The IATA definition of dangerous goods is clear and can be applied to all transport modes:
“Dangerous goods are articles or substances which are capable of posing a risk to health,
safety, property or the environment”.

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Within the transport industry (air, sea, road, and rail) a universal identification and
classification system for dangerous goods has been developed under the United Nations
Commission of Experts (the CoE), which is the body responsible for developing procedures for
the safe transport of all types of dangerous goods (except for radioactive materials) by all
modes of transport. These procedures are published in the Recommendations on the
Transport of Dangerous Goods - Model Regulations.134

At its ninth session (7 December 2018), the Committee adopted a set of amendments to the
Model Regulations on the Transport of Dangerous Goods, concerning, inter alia, electric
storage systems (including lithium batteries installed in cargo transport units and defective
batteries), explosives, infectious waste of Category A, waste gas cartridges, harmonisation
with the 2018 Edition of IAEA's Regulations for the Safe Transport of Radioactive Material,
listing of dangerous goods, update of LC50 values for some toxic gases and use of in vitro skin
corrosion methods for classification.

This twenty-first revised edition of the Recommendations takes account of all the
amendments which were circulated as document ST/SG/AC.10/46/Add.1.

The International Atomic Energy Agency (IAEA) is the body responsible for developing
procedures for the safe transport of radioactive materials) by all modes of transport. These
procedures are published in the Recommendations on the Transport of Radioactive Material.

These recommendations are in turn expanded by the world bodies responsible for the safe
transport of transport of dangerous goods for the different modes of transport. In the case of
Maritime Transport, it is the International Maritime Organisation (IMO) which publishes the
procedures for the safe transport of dangerous goods by air under the International Maritime
Dangerous Goods (IMDG) Code.

The International Civil Aviation Organisation (ICAO) has used the UN CoE regulations to
develop Annex 18 of the Convention on International Civil Aviation and its Technical
Instructions for the Safe Transport of Dangerous Goods by Air.

In a further development as far as airfreight is concerned, the IATA Dang erous Goods
Regulations (DGR) contains all the requirements of the Technical Instructions. IATA has
included additional requirements which are more restrictive than the Technical Instructions
and reflect industry standard practices or operational considerations.135

Bulk gasses

In common with crude oil and petroleum products, gas is transported via pipeline on land and
bulk carriers by sea. In smaller parcels, specialised gases may be transported by sea in parcel
tankers and on land in specialised gas tankers.

134 https://www.unece.org/trans/danger/publi/unrec/rev21/21files_e.html
135 https://forwardermagazine.com/dangerous-goods-101-all-you-need-to-

know/#:~:text=The%20GHS%20is%20a%20classification,about%20types%20of%20hazardous%20products .

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Fuel tanker road train transporting petrol.

The handling and transport equipment requirements are matched to the characteristics of
different specialised cargo.

For almost every type of specialised cargo there is a specialised set of transport vehicles and
handling equipment which is designed for that particular type of cargo.

The vehicles and handling equipment used for specialised cargo are in constant state of
improvement and development. For the forwarder it is essential to keep abreast of these
developments so that clients can be appropriately advised, and cargo moved as seamlessly as
possible.

When transporting cargo these are some considerations to be made:

• Bulk Gasses are shipped in dedicated ships equipped with many pressure vessels to
accommodate gas. This prevents the possibility of a major explosion by limiting the
volume of gas to smaller containers.

• Dangerous Goods: Dangerous Goods by air are strictly regulated. Dangerous goods by
air are only accepted in certain quantities depending on their class and type.

• Any flammable items such as solvents, fuel etc, explosives, and certain chemical are
restricted and cannot be transported; other dangerous goods require special
authorisation and handling arrangements prior to acceptance on board. If the cargo
is not urgent sea freight is a better and simpler alternative.

• Liquid Bulk Cargo requires tankers and involves very specific handling when
considering hazardous or flammable liquids including canting/decanting and marking,
labelling, and Placarding.

• Long lengths: Moving long-length cargo by air is severely limited and these are easier
to handle as sea freight.

• Heavy lifts apply to sea freight and need to be prearranged and planned prior to
shipping.

• Dry-bulk cargo requires special vessels with the right equipment to load and discharge
the cargo and port facilities must be considered.

• Perishable and frozen cargois usually shipped in special refrigerated containers (called
Reefers), and these require uninterrupted power to ensure constant cooling.

The consequences of using inappropriate equipment for the movement of specialised
cargo.

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Looking at each of the different specialised cargotypes it is clear that a specialised knowledge
is required to ensure that appropriate equipment is selected, and correct processes and
procedures are followed in the movement of that cargo.

Very often the client knows exactly what to manufacture, how much and by when but
requires the expertise of the freight forwarder to ensure that all aspects of the logistics
involved in the movement of such cargoes from his premises to that of his client, thousands
of kilometres away, is taken care of.

Because all types of specialised cargo require different areas of knowledge and skill required
each type, the forwarder who has the relevant skills has the most opportunity to add the most
value to his client’s operations. Forwarders who can show the greatest levels of
professionalism in the area of specialised cargo movement have the greatest potential to
gain.

By contrast, where things go wrong in specialised cargo movement, the consequences and
claims tend to be more serious than those experienced where the movement of conventional
cargo go wrong.

A great deal of the successful movement of specialised cargo movement lies in effective
communication and attention to detail.

Some examples of the consequences are:

• Loss of profits
• Loss of life or limb
• Damaged or ruined reputations
• Major catastrophes like oil spillage or gassing of entire areas.
• The destruction or harm of fauna and flora by oil, gas, or acid
• Cargo and goods not being off loaded or discharged.

Topic 7.3: Types of barges used in inland waterways carriage [KT0703]

Inland waterways

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Inland waterway transport plays an important role for the transport of goods in several
countries, especially in Europe. More than 37,000 kilometres of waterways connect hundreds
of cities and industrial regions. 13 Member States have an interconnected waterway network.
The potential for increasing the modal share of inland waterway transport is significa nt.
Compared to other modes of transport which are often confronted with congestion and
capacity problems, inland waterway transport is characterised by its reliability, energy
efficiency and major capacity for increased exploitation. The European Commission aims to
promote and strengthen the competitive position of inland waterways in the transport
system, and to facilitate its integration into the intermodal logistics chain.

Inland waterway transport is a competitive alternative to road and rail transport. In particular,
it offers an environment-friendly alternative in terms of both energy consumption and noise
emissions. Its energy consumption per km/ton of transported goods is approximately 17 % of
that of road transport and 50 % of rail transport.
In addition, inland waterway transport ensures a high degree of safety, in particular when it
comes to the transportation of dangerous goods. Finally, it contributes to decongesting
overloaded road networks in densely populated regions. 136

Different Types of Barges Used in the Shipping World 137

A type of vessel which is primarily used for transporting cargo is termed as a ‘Barge’. Barges
are not something like independent vessels or boats but are floating vessels generally towed
or tugged along with other vessels.

A barge is flat shaped on its bottom, just like a raft. The main reason for this particular shape
is to ensure that the cargo-carrying capacity is enhanced, and more bulk can be hauled and
transferred.

136 https://ec.europa.eu/transport/modes/inland_en
137 https://www.marineinsight.com/types-of-ships/different-types-of-barges-used-in-the-shipping-world/

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As mentioned earlier, a barge is a type of vessel which is mainly used for the purpose of
carrying cargo. However, the most important part about barges is the fact that they are not
independent boats or vessels. They have to be tugged or towed along with other naval vessels
in the water. Barges are mostly used in smaller water parts like rivers, lakes, or canals;
however, they are now used extensively at seaports. Barges are not new in their use, but the
modern world had witnessed marine barges even before the Industrial revolution.

Barges have been a presence in the modern world right before the time of the industrial
revolution. Prior to the Industrial Revolution in Europe, marine barges were used as the main
method of transportation to ferry cargo across places connected by small water bodies. But
post the Industrial Revolution and the invention of the steam engine and consequently trains,
the demand for barges as cargo-transporters started to reduce because of speed constraints.

Europe used the first barge to transport ferry cargo across the places which were connected
by small water bodies. But with the Industrial Revolution, there came the evolution of the
steam engine and trains which resulted in a steep decline in the demand for barges to serve
as cargo-transporters. The speed of barges was also an important reason for their decline.

Types of Barges

The different types of barges can be elaborated as follows:

• Barracks Barge: A barracks barge is also known as a houseboat. Houseboats are very
common in places like Cambodia, North India (Kashmir), Laos, Australia, and Canada.
As the name suggests, these types of barges are mainly used for residential purposes
and look very eye-catching while they float as stationary objects in rivers and lakes.

• Dry Bulk Cargo Barges: These types of barges, as their name suggests, are used to
haul, and ferry dry cargo. When the aspect of dry cargo is considered, it includes food
grains, sand, minerals like steel and coal and other dry commodities that can be
transferred through the system of barges.

• Barges Carrying Liquid Cargo: These types of barges are completely opposite to the
dry bulk cargo barges. These barges are very useful in carrying petrochemicals and
fertilisers that are used mainly in the liquid state, and other necessary important
industrial liquid chemicals.

• Car-float Barges: This type of marine barge was mainly used during the early
20th century to ferry rail carts. In simple terms, it can be said that these rail-carts
attached to the barges were like portable rail-sets ferried from one location to
another. In today’s times, car-float barges, still function in some parts of the United
States of America.

• Split Hopper Barge: This unique barge is used for carrying dredged material as they
are fitted with proper unloading tools. The split hopper barge is extensively used in
marine construction purpose as it can unload the material (Soil, sand, dredged
material, etc.) at the site.

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The barge can be self-propelled type fitted with a hydraulic motor and cylinder unit to
split open the hull. It has hydraulically operated split open hull to carry loading and
unloading of construction material.

• Other Barges: Apart from the above-mentioned types of barges, there exist some
other types of barges such as power barges and royal barges.

• Power barge these are moreover a moveable power plant.

• Royal Barges These are occasional barges and serve a platform for the celebration of
royal functions. These are still operational in nations like the United Kingdom, where
the monarchy is still prevalent.

Barge Size And Its Load Capacity

Flat bottomed vessels or barges are typically available in different sizes and can be used as
per the transportation requirements. These barges are designated as per their overall lengths
in feet, for e.g., the 180 ft barge, the 230 ft barge and so on. Different barges have different
load carrying capacity which varies as per their overall length and with the type of goods to
be transported.

1. BARGE with size 180 FEET:

This barge is least preferred as it can transport approximately up to 2000 Metric Tons
of cargo. It has size specifications as follows: Overall length of the sideboard is 180ft
(52.67m), Breadth of 50ft (15.24m) and Width of Ramp Door is 5.00 m. It has the dead
weight of 1500 tons with 5tons/square metre deck strength.

2. BARGE with size 230 FEET:

These are generally called small-medium size barges and can carry up to 4000 Metric
tons of cargo. It has size specifications as follows: Overall length of the sideboard is
230ft (70m), Deck Load of 8.0 tons / Square metre (uniformly distributed load) and
the forward Sideboard of 2.44 m 8 feet.

3. BARGE with size 270 FEET:

According to their size, the 270ft barges are generally referred to as medium barges.
These can transport 6000 MT of the cargos in a single run. These barges have an
overall length of 82.3 m or 270ft and have breadth and depth of 72ft and 18ft,
respectively. Their deck can bear a load of 7 ton/m2. The 270 feet barge has gross
tonnage value in Smitt Brackets of about 2387.

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4. BARGE with size 300 FEET:

It is the most extensively used barge. The reason behind its widespread usage is that
it can transport large volumes, of even 8000 MT of cargos in a single run and has
greatest load-bearing capacity among all the barges. The general size specification of
300ft barge is as follows: Overall Length of 91.440 m (300 ft); moulded breadth of
27.432m (90 ft); Moulded Depth of 6.096 m (20 ft); Deadweight of 9700 tons (at
Summer Draft); have deck area of 2508 square metre; Deck Load of 25 tons /square
metres (uniformly distributed load).

Use of Barges

Barges, the flat-bottomed freight carriers are still used around the world. Following are some
common uses of marine barges:

• The use of barges has witnessed a severe decline but not complete extinction. Barges
can successfully transport items in bulk with lower transportation cost than other
modes of transportation. Another main reason for their usage is that these are
available in different sizes (like with smaller capacities of 1400 tons to even larger of
2700 tons) and can be employed as per the need of goods to be transported.

• For travelling in calm water, either upstream or downstream, self-propelled barges
can be used which can propel by their own and facilitates successful transportation of
any sort of cargo (either dry or liquid).

• In most of the cases, the design of a barge is carried out for a specific water body and
that barge has to serve in only that water body throughout its life. In any case, if that
barge is used to serve in any other water body with high flow rate or to be operated
for an upstream route, then this barge can only be used after properly tugged or
assisted by a tug boat.

• Royal Barges can be used for the celebration of certain occasions by the royal family.
These barges are still owned by monarchs of the United Kingdom and provide a
luxurious destination celebration of an event.

• Barges are successfully used for inter-state transportation of grain and coal. These
barges save a huge sum in transportation while the same is to be carried by any other
mode.

• The capacity of the material to be transported can be increased considerably when it
is transported by barges because in a single voyage one or more barges can be tugged
to the tug boat and can efficiently and economically transport that material.

Difference Between Barges And Ships

Just a line to differentiate barges and ships; all barges can be ships but all ships cannot be
barges.

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The common points of difference between Ship and Barge are as follows:

1. Definitions: Any watercraft having considerable size is referred to as Ship or Vessel. But
a Barge is that type of ship which has large flat-bottomed vessel generally used for
transporting goods on Inland waterways.

2. Route: Ships sail in both Inland as well as International waterways, but the barges are
typically seen in Inland waterways only. Barges are generally employed for
transportation of goods within a river, canal, creek, or an estuary. Hardly any barge is
seen in seas whereas ships can be found on all sorts of water bodies for e.g., Oceans,
seas, rivers, canals, estuaries, creeks, etc.

3. Transport: Ship serves as multi-purpose vessel as it is used to transport both goods as
well as people whereas Barges are the ships used only for transporting goods.

4. Propelling: Ships have their self-propelling system whereas Barges are propelled by the
tugboat to which these are towed.

5. Usage: Barges are used to transport material to ferryboats or other goods to both in the
sea or on port ships. Whereas a ship is a multi-facility vessel and can be used for the
number of purposes like Ships can be used for International and national trades; Cruise
ships can be used for destination holidays and some ships are used for recreational
works.

6. Manoeuvring: The ship is a self-propelled floating object, so moving a ship and
manoeuvring a ship is comparatively easier than the barges. Because barges are tugged
with a ship, and it is difficult to manage a vehicle with a trailer than the vehicle alone.

So, from these points of difference, it can be stated that barges are flat bottomed longships
employed for the transportation of goods whereas ship can be any sort of watercraft
employed for transporting people and goods as well.

A barge is a very important application in maritime technology. With the help of marine
barges, the cargo-carrying problem can be reduced to a great extent. As there are many
variants of the apparatus, the problem of choice is also solved. As per the need and
requirements, one can utilise the most fitting barge as an effective cargo-carrier and thereby
ensure complete safety of the goods and items transported.

The Barge Guide – Different Types and Functions – US Perspective 138

Barges are designed to operate on rivers, canals, sounds, bays, and inland lakes. Inland barges
provide the most economical mode of transportation for many high-density, large volume or
oversized cargoes.

138 https://www.pilebuck.com/marine/barge-guide-different-types-functions/

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Different barge sizes and configurations assist in project execution and the transportation of
specific materials. Barges are an integral part of the development of the many industries and
communities that depend on the waterways.

DECK BARGES

These barges are designed to carry cargo on deck and differ in size and structural design,
depending on their intended use. Deck cargos include pipe, piling, fabricated structures,
equipment, rock, palletised material or even horses, cattle, and rocket boosters. In some
instances, certain liquid cargos may be carried in the interior watertight compartments. Deck
barges are also used as work platforms for workers and machinery, thereby serving as an
extension of land. Some of these barges may have raised rake decks. Please contact us for
more information on the capacity, load marks, and dead weight of specific barges.

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SPUD AND CRANE BARGES

Spud barges can be specially built to support a working crane. This type of barge typically has
a boxed stern that provides maximum flotation while operating a crane. Extra strengthening
is generally provided under the crane working area by use of additional bulkheads, internal
trusses, or deck frames. Wooden crane mats should always be used to further distribute the
concentrated load and provide traction for the crane. Drop spud barges can also be used for
transportation of general cargo or as work platforms. The operation of the spuds can be
operated by a crane placed aboard the barge or by a spud-winch that may be installed.

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HOPPER BARGES
Hopper barges are usually of double-hull construction, wherein the sides and bottom of the
cargo hold are separated from the hull by void spaces. These barges are designed for efficient
transport of commodities in bulk, such as grain, coal, sugar, ore, steel, aggregates, timber
products and numerous other cargos.
Hopper barges have a boxed, single raked, or double-raked hull configuration. The hoppers
may be covered or open. Covers provide protection of cargos from outside elements. Covers
may be roll-top (telescoping), or lift-off (stacking) type.

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SHALE BARGES

These are deck barges with cargo bins and open hopper type barges, both having stabili sing
bulkheads in the cargo compartment.

These barges are used at oil well drilling sites to contain and transport any liquids and (shale)
cuttings produced by the drilling operation that cannot be discharged overboard because of
environmental considerations. This cargo is then disposed of by an approved processing
company. These barges are subject to rules and regulations promulgated and enforced by the
U.S. Coast Guard, which publishes appropriate manuals for public guidance.

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LIQUID MUD BARGES

These barges are equipped with two deck-level bin tanks that provide a total of four separate
compartments. Containing on-board piping and pumping systems, these barges are capable
of both the circulation and discharge of fluids at any remote facility.
While inland oil well drilling sites are the primary operational service location for these
barges, land-based storage facilities also benefit from the storage and transportation aspects
they provide.

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OCEAN BARGES

Oceangoing barges transport cargo beyond the inland water boundaries of a country. Using
ocean barges as an alternative to higher speed ocean freighters can offer many advantages.
Unimproved or shallow draft ports often are only accessible by tug and barge.

High-volume loads, such as large-diameter pipe, and extremely heavy equipment, such as
prefabricated oil-production facilities, are especially adapted to ocean barging. The hazards
of navigation and the forces of nature require oceangoing barges to be of speciali sed design
and heavy construction. This results in an increase in cost of building, outfitting, maintaining,
and towing such vessels.

American flag ocean barges are built to the requirements of the U.S. Coast Guard and the
American Bureauof Shipping (ABS), the authorised load-lining agency. Each barge is inspected
and certified by authority of these agencies, and appropriate documents are issued to be
carried on board at all times. The Coast Guard and ABS should be consulted for complete
information on their requirements on ocean barges.

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Topic 7.4: Air transportation for perishable cargo [KT0704]

Perishable and Reefer cargo

“What” you may ask, “is the difference between perishable and reefer cargo?”

Perishable cargo is cargo which requires to be cooled, that is, its temperature must be
maintained at above 00C, usually in the region of + 50C. Examples of perishable cargoes are
fruit and vegetables. “Reefer” is transport shorthand for refrigerated. Reefer cargo needs to
be maintained at temperatures below 00C.

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Examples of perishable cargoes are frozen fish and meat. Reefer cargo needs to be
maintained in a range from 00C to about minus 180C.
Perishable and reefer cargoes are commonly transported by air and by sea.
Airfreight

139

Due to the shorter transit times and the temperatures encountered in normal flying
conditions, the usual procedure for perishable and reefer cargotransported by air is to reduce
its temperature to the required level in refrigerated facilities or cool rooms operated by
specialised providers at or near airports, packed into well insulated packages which then have
dry ice put into them to maintainthe temperatures to which the cargohas been reduced. The
cargo is then placed on board the aircraft as close to the take-off time as possible.

It is well to bear in mind that, once an aircraft has reached cruising altitude, the outside
temperature will not be higher than minus 300C. Such temperatures are far lower than any
temperature required by most types of cargo and so low as to be detrimental to some reefer
and all perishable cargo. Therefore, where cargo must be maintained between specific
temperatures it needs to be stowed in a temperature-controlled part of the aircraft.

The temperature requirements of any cargo must be made known to the airline operator
when the cargo is booked.

In addition, instructions on the AWB must be very clear as to:

• Where in the aircraft it must be stowed?

• The upper and lower limits of the temperatures at which it must be maintained.

• The maximum transit time during which the cargo is allowed to be in transit door to
door.

139 https://www.inboundlogistics.com/cms/article/perishable-logistics-cold-chain-on-a-plane/

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Surface Freight

Temperatures on the ground are far higher than those found at aircraft cruising altitude and
transit times are far longer, therefore the transport of perishable and refrigerated cargo
requires a great deal more intervention to control the temperature of these cargoes.

In South Africa, the road transport of these cargo types takes place either in bulk in
temperature-controlled trucks or in trucks which have electric power coupling points which
can be connected to the refrigeration motors of temperature-controlled ISO containers with
which they are loaded. These containers have electrically operated refrigeration units built
into them as your studies of containers will have shown.

Evergreen integrated unit reefer containers

In general bulk perishable or reefer cargo will be secured on pallets whose loaded length,
width and height conforms to the dimensions of the trucks used to transport them to the
harbour and to the dimensions of the vessels used to ship them to their destinations.

The temperature-controlled road trucks are discharged into temperature-controlled
warehouses from where they are loaded onto specialised reefer vessels for export.

In South Africa there are no refrigerated rail trucks available. Certain types of container rail
trucks are however fitted with electrical connections to which integrated r eefer containers
can be connected.

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Topic 7.5: National and international carriage by inland waterways [KT0705]

Inland Water Transport

Transport by rivers, canals and lakes is referred to as 'Inland Water Transport' (IWT). Inland
Waterways Transport has greatly expanded during 20th century in many countries of the
world. It is playing an important role in internal and international trade and commerce in
many countries.

Inland waterway is an essential mode of transport in Europe, the USA, India, China, and
certain countries in Africa. In common with Africa, however, many countries and regions (e.g.,
India and China) have extensive stretches of navigable waterways but much of this potential
has yet to be realised.

Inland waterways may be natural such as navigable rivers or lakes or may be artificial such as
canals. Many rivers provide natural waterways, which can be used for providing transport
services through the use of small boats and big barges. River transport was one of the oldest
modes of transport. It played a very important role prior to the development of modern
means of land transport. It provides transport facilities to inaccessible forest areas and other
natural regions not connected by roads.

Canals are artificial waterways basically made for irrigation or navigation or both. Canals can
be used as waterways for inland water transport, but huge amounts of capital investment are
required in the construction and maintenance of such man-made waterways. The cost of
canal transport is higher than that of river transport. Apart from this, providing adequate
water in the canal to facilitate movement of large water craft is considered a big problem for
this mode of transport. Natural lakes also act as inland waterways. Although, the distance
covered by lake-transport is less, it provides low-cost transport facilities to the areas
connected by lakes.

Advantages of Inland Water Transport

1. Inland water transport is the cheapest mode for certain kind of traffic both for long
and short hauls provided the points of origin and destination are located on the
waterfront of the inland transport waterway and no trans-shipment of goods is
involved.

2. It is also one of the most efficient modes of transport from the point of view of energy
consumption.

3. It can provide immediate access wherever water exists without requiring investment
in line haul capacities as in other mode of transport.

4. Inland water transport is a labour-intensive mode and generates more employment
per currency unit of investment than any other mode and so particularly benefits less
skilled sections of society.

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5. It provides transport for heavy, bulky, non-perishable, and low-grade traffic with a low
price relative to weight where speed is not an important factor.

6. It provides economical means of transportation of minerals and other bulky dry and
liquid raw materials for industries.

7. As a natural resource, the waterway requires no investment for its maintenance.

8. In mountainous areas, inland water transport provides excellent service for the
downstream movement of goods and passengers.

Limitations of Inland Water Transport

1. This form of transport is slow as compared to other forms of land transport.

2. Navigability of waterways is seasonal in many areas and dependent on rainfall.

3. Transport activity becomes climate dependent in far Northern Hemisphere regions
because freezing of water may cause closure.

4. Heavy capital investment is also required in construction, maintenance and dredging
of canals.

5. Perishable products cannot generally be transported by inland water transport for
longer distances unless such cargoes can be temperature controlled.

Containerised Traffic and Inland Waterway Transport

As far as container transport is concerned, with the emergence of “hub ports” there is a
growing interest in the use of coastal and inland waterways as well as short sea shipping to
move containers between ports wherever possible. There is also renewed interest in the role
of barge transportation for container movements in inland water transport, coastal transport
and short sea shipping which may possibly lead to a decentralisation of hub port activity and
resultant congestion in the future.

Developments in container barging have taken place due to the cost/time advantage other
that of road and rail transport. Network design and application can have a big impact of the
cost/time equation as well as other cost models that explore use of various modes (road, rail,
inland waterway, sea) and intermodal transfer (marine terminals, rail terminals, and inland
terminals) as cost components.

Legal Requirements of Transport by Inland Waterway

Which international Conventions and bodies govern inland waterway transport in Europe?

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Freedom of shipping on the Rhine MC
Equal treatment of carriers MC
Great uniformity between laws MC
Technical matters, i.e., regarding the equipment of ships CCNR
Waterways and the artificial structures on it CCNR
Social matters relating to crews and labour conditions CCNR
Liability in inland shipping CMNI
Notice of claim in inland shipping CMNI

MC = Mannheim Convention,
CCNR = Central Commission for Navigation on the Rhine,
CMNI = "Budapest Convention on the Contract for the Carriage of Goods by Inland
Waterway."

Agreements between the Countries Concerned

NOTE: INLAND WATERWAY TRANSPORT IS NOT USED COMMERCIALLY IN SOUTH AND
SOUTHERN AFRICA AND THEREFORE THERE ARE NO STATUTORY MEASURES GOVERNING
THIS MODE OF TRANSPORT IN THIS REGION. IN AFRICA AS A WHOLE THE MAIN
COMMERCIALLY USED INLAND WATERWAYS ARE THE NILE RIVER, LAKE VICTORIA, LAKE
UGANDA AND LAKE MALAWI.

The Rhine and other inland shipping industry are governed by international private law,
national private law, international public law, and national public law.

• Public law is the law that governs the legal relationship between governments among
themselves and between the government and (legal) persons.

• Private law is law that governs the legal relationships between (legal) persons.

• The difference between national and international law is determined by the borders
of countries.

Public law governs the legal relationships between, amongst others, the government and
(legal) persons. The two most important international public law regulations in relation to
inland shipping in Europe are:

● Mannheim Convention.

● Guidelines and Regulations of the European Union.

The Mannheim Convention - Rhine River

Because the Rhine is of great economic significance, it has always been of interest politically.
The Mannheim Convention was signed in 1868 by Switzerland, Belgium, Luxembourg, France,
Germany, The Netherlands, and the United Kingdom. The Mannheim Convention is actually a
treaty. Its official name is “The Revised Rhine Navigation Act of 17 October 1868”.

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The Mannheim Convention specifies that the Rhine can be used freely by residents of the
signatories to the convention and by residents of EU Member States.
This means that there are no nautical or economic obstacles to inland shipping, unless
required to ensure safe shipping. The principle behind the treaty is therefore freedom. There
is no room for measures that protect particular markets. Consequently, trade and transport
on and along the Rhine have been able to develop in complete freedom.

Objectives of the Mannheim Convention

The Mannheim Convention strives towards the following goals:

• freedom of shipping on the Rhine and its tributaries from Basel to the open sea.

• limitations on this rule may only be implemented in the interest of safety.

• no shipping levies.

• equal treatment - carriers from all convention states have the same rights on the
Rhine.

• great uniformity between laws.

The Central Commission for Navigation on the Rhine

The Central Commission for Navigation on the Rhine (CCNR) was established in accordance
with article 43 of the Mannheim Convention. The CCNR is based in Strasbourg and consists of
representatives from the signatories to the Convention. The representatives are from the
business community and the government and are called Rhine Navigation Commissioners.

The CCNR has the task of protecting the freedom of shipping on the Rhine. It draws up rules
to guarantee safety on the Rhine. The regulations determined by the CCNR focus on:

• technical matters, i.e., regarding the equipment of ships.

• matters relating to the waterway itself and the artificial structures on it.

• technical shipping and transport matters in shipping regulations.

• social matters relating to crews, sailing times, resting times and labour conditions.

The CCNR makes decisions regarding regulations that apply to the Rhine. If a CCNR decision
is accepted unanimously, the decision is binding for the signatories to the Mannheim
Convention. The convention states must incorporate the CCNR decision in their national laws.
If, however, a CCNR decision is adopted with a majority of votes, a decision is considered to
be a recommendation. In such cases, the convention states have no obligation to incorporate
the decision in their national laws.

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Shipping Waste Product Treaty

The CCNR also concerns itself with the environmental issues surrounding shipping. In this
regard, the CCNR has established the Convention on Collection, Retention and Disposal of
Waste Generated during Navigation on the Rhine and Other Inland Waterways in 1996.

For the sake of brevity, the convention is referred to as the “Shipping Waste Product Treaty".
This treaty must now be implemented in the national legislation of the Member States of the
Mannheim Convention. There are three parts to the treaty, which cover:

• the ban on dumping of shipping waste (bilge water and cleaning cloths, also known as
engine room waste or ship-related waste).

• the ban on dumping of leftover cargo.

• the ban on dumping of household waste.

Forwarder and left-over cargo

The forwarder is the one who is usually faced with the problem of cargo which has not been
discharged from an inland waterway carrier (“leftover cargo”). This is discussed in greater
detail below…

When loading or discharging, the manager of the loading or discharge location must ensure
that any possible leftover transfer cargo is added to the cargo. After cargo has been
discharged, the “clean ship received, clean ship returned” principle usually applies. In either
case, the ship must be delivered in broom clean condition by adding as much leftover cargo
to the cargo. The shipping agents, recipients of the cargo or transfer companies are
responsible for leftover cargo, not the skippers. The cleaning costs for the holds are paid by
the recipient. As owner it is after all in his interest for as much leftover cargo to be added to
the cargo as possible.

To prevent unnecessary cleaning and therefore the unnecessary generation of waste, no
cleaning is required when uniform cargo is being transported, i.e., the same type of cargo is
being transported.

Guidelines and Regulations of the European Union

After the Second World War, Europe was poor and had to be rebuilt to a great extent. This
economic situation provided a reason for the various European countries to work together.
More and more countries are joining the European Union.

When the EEC was established, the Treaty of Rome, the basis of the current EU, dedicated a
whole chapter to the transport sector. A number of common rules were introduced. Users
must, for example, have the freedom to choose a mode of transport.

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All public and private modes of transport and transport enterprises must be treated equally,
and enterprises must be financially and commercially independent. A number of sub-
measures were taken by the Council of Europe for a number of areas. This is also the case in
inland shipping.

The primary EC measures that have so far been established for inland shipping are:

• The guideline regarding access to the profession by barge owners. This guideline
specifies the requirements with which barge owners in inland shipping must comply.

• The regulation regarding the structural reorganisation of inland shipping. Since 1989,
this regulationhas given inland shipping an instrument to influence the supply of ships
on the market. In the past, ships were scrapped in terms of a scrapping measure and
the urge to invest was inhibited by a so-called “old before new” measure

• A regulation giving the conditions under which barge owners may enter the market
for transporting inland goods and passengers in a member state where they are not
based, is called cabotage.

• There is no restriction on cabotage within the European Union. This means that ships
from a Member State are free to take part in inland shipping transport in another EU
Member State under the conditions that apply in that Member State.

• A guideline regarding the abolishment of rotation systems. This guideline abolished all
cargo allocation systems in the European Union as of 1 January 2000.

Laws and regulations at international and national levels

Laws of countries other than Europe

The laws governing inland waterway transport in Europe are discussed in the following
section.

When considering inland waterway transport in other countries it is advisable to become
familiar with the legal frameworks governing this mode of transport in each of the countries
through which the cargo will be required to move.

Whilst China, USA, and India each have a common legal system and thus common legislative
frameworks in each country for the movement of goods via inland waterway, this is not
necessarily the case in Africa.

In Africa, the inland waterways are shared by a number of countries and therefore it is
important for the user of these systems to ensure that he is familiar with the legislative
framework of each country for the movement of his goods by inland waterway.

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Legislative system in European Union

The EU has the authority to determine laws. These laws may take the form of regulations,
guidelines, ordinances, or recommendations/opinions. EU regulations take priority over the
national laws of the Member States. A regulation does not have to be incorporated into a
national law to be binding. If a regulation and a national law contradict each other, the
regulation takes precedence.

Once an EU guideline has been established, Member States are bound to incorporate the
guideline in their national legislation. An example is the guideline that determines that all
inland shipping barge owners must comply with the relevant professional competency
requirements. An ordinance is a decision that applies to an individual case. The ordinance is
binding for that specific case. Recommendations or opinions are not binding. They only reflect
points of view.

CCNR - Relationship with the European Union

Before the establishment of the European Union (EU), the CCNR could take decisions
independently. Since the establishment of the EU, however, coordination is essential. This is
because the signatories to the Mannheim Convention are almost all Member States of the
EU. Switzerland is the only signatory to the convention that is not a member of the EU.

A representative from the European Commission is therefore always present at CCNR
discussions. Similarly, any EU regulations or guidelines relating to Rhine shipping must be
discussed by the CCNR. Before a Guideline or Regulation of the Council or the Commission
relating to the Rhine river area can come into effect, the CCNR has to reach agreement on it.
An important difference between the decision-making processes in the CCNR and the EU is
the fact that signatories to the conventions are only bound by CCNR decisions that are
unanimous. EU decisions are taken on the basis of a qualified majority.

National laws

National public law regulations should preferably fit into the framework of the CCNR. This
means that barge owners in Rhine and inland shipping must adhere to practically identical
crew requirements and resting and sailing hours, irrespective of whether they are
transporting within a country or internationally. The most important issues governed by
national public law may be:

• Sailing hours and resting times.

• Crew numbers.

• The access of barges to transport on the national inland waterways.

• Access to the profession (in execution of the European guideline).

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“Sailing hours and resting times”

There are three possible operating schedules for ships, namely:

A1 voyages
In this operating schedule, the sailing time of a ship may amount to 14 hours within 24 hours,
with a maximum of 16 hours under specific conditions (tachograph).

A2 voyages
In this operating schedule, the sailing time of a ship may amount to a maximum of 18 hours
within 24 hours.

B voyages
In this operating schedule, the sailing time of a ship may amount to more than 18 hours within
24 hours (non-stop).

Conditions of Carriage

Good cargo conditions

Cargo conditions result in obligations for the sender, the carrier, and the recipient. These
obligations entail the following:

• the sender is responsible for loading the cargo that is to be transported on board the
ship.

• the carrier must make the ship available for loading and discharge purposes.

• the recipient is responsible for discharging the goods from the ship.

When agreeing to take on a voyage, it is important to negotiate good conditions.
Two international measures are mentioned in this regard, namely:

• the CMNI Convention,

• the Shipping and Transport Conditions

The CMNI Convention (1999)

The full name of this convention is “Convention on the Contract for the Carriage of Goods by
Inland Waterway”. The abbreviated form “CMNI Convention” is used for ease of reference.
The purpose of this convention is to develop uniform civil inland shipping law. This means,
amongst other things, that a single liability system will apply in all countries where inland
shipping is practised.

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The major features of this liability regime are listed below:

• Period of application : from taking over until delivery
Consignment note required if requested
• Contract of carriage : Liability for loss, damage, and delay
Delivery period as agreed period
• Basis of liability :
Cost for evaluating damage
• Delay in delivery : 8.33 SDR/kg; Delay 3x value of freight
Apparent loss, damage – on delivery at latest
• Liability for direct or 7 days after delivery
21 days after delivery
consequential loss :

• Limitations of liability :

• Notice of claim :

• Non-apparent loss :

• Delay :

The Shipping and Transport Conditions

The Shipping and Transport Conditions (STC) are general conditions that apply to cross-border
transport. These conditions have been in use for some decades and are very favourable
towards carriers. Practically all liability is excluded.

General Conditions

When agreements are entered into, they often refer to the General Conditions. In this way,
the parties to an agreement do not have to reformulate general or standard stipulations time
and again. When confronted with the general conditions of a contractual counterpart, it is
good to be aware that these conditions are one-sided and generally to the disadvantage of
the other party.

The most important general conditions in inland shipping are the aforementioned (Shipping
and Transport Conditions). The following supplementary conditions are used in specific sub-
markets:

• the General Ferry and Barge Shipping Conditions in rotation systems,

• the General Push-Towing Conditions of 1998 in push-towing, and

• the General Towing Conditions in towing services.

Charter Party: Loading & Discharge Times and Demurrage

Specific loading and discharge times are included in the agreedfreightage for voyage charters.
National law may provide rules on loading & discharge times and demurrage, in addition to
the mentioned international regulations, e.g., regarding:

● the number of loading and discharge days.

● the calculation of loading and discharge fees.

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● the number of available demurrage days;

● the demurrage fees.

● the duration of working hours and the hours on which working hours start and end.

● the compensation for and/or inclusion of nights, Saturdays, Sunday, and Public
Holidays.

● the method used to determine the weight of goods that have been transported or are
to be transported.

● the way in which notice should be given that the ship is ready to load or discharge.

These stipulations are not considered to be imperative law. This means that the stipulations
may be deviated from. The carrier and the sender can agree on whatever they want to
regarding loading time, discharge time, demurrage, arrangements regarding Sunday, etc.

If the parties make no specific arrangements regarding these issues, the relevant legal
stipulations apply.

When loading or discharging happens in a specific country, the regulations of the loading or
discharging country become relevant. A few examples are:

The Netherlands : Cargo Conditions of 1991 and the Loading and
Belgium : Discharge Times and Demurrage Decree
Germany : Decree regarding port time and demurrage fees for
inland shipping charters of 4-5-1999
Regulation regarding loading and discharge times,
as well as demurrage fees in inland shipping of 23-
11-1999.

From a legal perspective, this regulation is the only valid regulation that applies if the
transport agreement does not stipulate the loading and discharge times or demurrage fees.

France : Loading and discharge times, as well as demurrage
fees from 01-08-1994

The number of loading and discharge days are calculated based on the weight of the cargo
being transported. The determining factor for the weight of the cargo being transported is
the cargo weight as stated in the charter (carriage agreement). The weight of the cargo being
transported can also be included in the bill of lading or in the waybill. If none of these
documents have been drawn up, evidence regarding the weight of the cargo must be
compared and used to calculate the number of days.

The table below gives an example of the number of loading and discharge days depending on
the weight of the cargo being transported.

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Weight Number of
discharge days
550 tonnes or less
more than 550, but not more than 1000 tonnes 2
more than 1000, but not more than 1500 tonnes 3
more than 1500, but not more than 2000 tonnes 3,5
more than 2000, but not more than 2600 tonnes
more than 2600 tonnes 4
4,5

5

Start of the loading and discharge times

The loading time starts on the day after the carrier notifies the sender that the ship is ready
to be loaded. The discharge time starts on the day after the carrier notifies the recipient that
the ship is ready to be discharged.

Demurrage fees

Demurrage fee is the compensation the carrier receives if the allowed or agreed loading or
discharge times are exceeded. If the loading time is exceeded, the sender pays the
demurrage. If the discharge time is exceeded, the recipient pays the demurrage.

Even if the shipper or the recipient were unable to load or off-load due to force majeure, the
carrier is still entitled to demurrage fees.

In relevant legislation, the size of the ship may determine the level of the demurrage fees. A
large ship can transport more cargo than a smaller ship. It therefore costs more for a larger
ship to lie still, than for a smaller ship. The level of the demurrage fees is specified in the
charter agreement, or by referring to the regulation in which the level of the demurrage fees
is stated.

Demurrage days

The sender (shipper) or the recipient do not have unlimited access to the ship after the
loading or discharge times have expired. The time available is actually limited to a number of
agreed demurrage days. The sender and carrier may arrange “whatever they wish” with
regard to the number of demurrage days. If no agreements have been made, the relevant
legislation may apply.

After the demurrage period expires

If the number of negotiated demurrage days has expired, the skipper may cancel the
agreement and possibly claim damages. Inland shipping law states the following in this
regard: If no goods have been loaded at that time, the carrier may cancel the agreement. If
only a part of the agreed cargo has been delivered, the carrier may cancel the agreement, or
may decide to accept the voyage.

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If the carrier suffers losses as a result of accepting the voyage, the sender will have to
compensate the carrier for these losses.

The demurrage period may also expire before the cargo has been completely discharged. In
this case, the carrier is entitled to store the cargo with a third party in an appropriate storage
location or barge. The recipient then carries the risk and the costs.

A second possibility is for the carrier to request a judge to rule that he may keep the cargo in
his own ship or to make other arrangements. In this case, too, the resulting costs are to be
borne by the recipient.

Cargo conditions result in obligations for the sender, the carrier, and the recipient. These
obligations entail the following:

Loading the cargo that is to be transported on board the ship Sender
Make the ship available for loading and discharge purposes Carrier
Discharging the goods from the ship Consignee

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Chapter 8 | Cooperation with other service providers [KM-01-KT08]

The Topic Elements to be covered in the chapter referenced above include:

Topic Topic Element/Heading Knowledge Theory
8.1 Stakeholders in freight forwarding and clearing KT0801

8.2 environment KT0802
Structure of the Business and relations between

stakeholders

By the end of this chapter, you should be able to demonstrate an understanding of the
following Internal Assessment Criteria or Learning Outcomes relevant to this topic:

No. Learning Outcome IAC
1 Identify different stakeholders and their roles in IAC0801
international freight forwarding and clearing
environment IAC0902
2 Explain relationships between different stakeholders

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Topic 8.1: Stakeholders in freight forwarding and clearing environment [KT0801]

Stakeholders

There are many definitions of "stakeholder". What is relevant for any definition is that a
stakeholder is a person or a group who has an interest in a given situation, and who is an
active player. A stakeholder can also be considered as an actor, in the sense of a person or
organisation who carries out one or more of the activities in an import or export process.

Trade Facilitation Stakeholders

Trade facilitation is characterised by many stakeholders at the national, regional, or
international level, and from the public as well as the private sector. The Buy-Ship-Pay
Model of an international trade transaction groups the actors according to their roles as
either Customer, Supplier, Intermediary or Authority. The following list shows the main
stakeholders by group.

Customer Supplier Intermediary Authority
Buyer Seller Transport Service Customs
Supplier
Importer Exporter Freight Forwarder Environment
Consignee Consignor Bank Agriculture
Ship to Ship from Insurance Provider Standards
Payor Payee Customs Agent Consular
Health
Broker Port
Commission Agent Chamber of Commerce

Actors can also be grouped by their core business, meaning the function they perform for the
trade transaction. These groups are:

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• Manufacturers, retailers, and wholesalers who are active in the business of purchasing
and/or selling goods.

• Shipping and transport companies that organise and take care of the physical
movement of goods or arrange commercial transportation in the case of freight
forwarders and logistics companies.

• Other transport intermediaries such as port and airport authorities, terminal handlers,
stevedores, and warehouse operators, who are involved in the physical movement of
goods.

• Commercial banks and Insurance companies, which are used by traders for payment
of goods, payment of duties and taxes, insurance of goods during transport, insurance
of vehicles, and the deposit of guarantees and securities.

• Other intermediaries, who are involved in the fulfilment of procedures,
including customs brokers and Single Window operators, including service providers
that are businesses that provide a service to one or a number of parties in the supply
chain, usually in form of data processing and information exchange.

• Government or public bodies that encompass executive agencies, government
departments or ministries at state and federal (regional) levels. Their role/business is
to authorise and control the cross-border movement of goods and enforce national
legislation.

Role of Associations

Business or trade and industry associations are stakeholders that represent multiple
members. Associations may be organised for specific business sectors (e.g., the shippers'
councils) or for the private sector as a whole (e.g., chamber of commerce, association of
employers), and can also have an international or regional dimension. The International Air
Transport Association (IATA) and the International Federation of Freight Forwarders
Association (FIATA) are examples of international transport organisations, and the
International Chamber of Commerce is the international association of chambers of
commerce. These associations are usually set up to represent their members' interest in
national policy processes and to disseminate information to and from their members.

Trade and industry associations are essential in consultation process as it is usually impossible
for individual companies/entities to follow and participate in all consultative processes for
reasons of lack of time and information. Government agencies therefore often accept
participation of associations as stakeholders in trade facilitation bodies.

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Stakeholder Identification

Multiple trade facilitation stakeholders are linked to each other in one way or another. They
are usually part of a network of multiple dependencies and relationships that shapes their
behaviour and attitudes toward each other.

A stakeholder analysis provides information on who exactly the national trade facilitation
stakeholders are, why they should become involved, and what their interests are. 140

Topic 8.2: Structure of the Business and relations between stakeholders [KT0802]

The Buy-Ship-Pay Reference Models141

The Buy-Ship-Pay reference models developed by UN/CEFACT describe the main processes
and parties in the international supply chain and the relationship between the high-level data
entities of the involved international sales and transport contracts. International supply
chains ensure that goods which are traded cross-border can be ordered, shipped, and paid
for while complying with regulatory requirements and providing trade security.

The Buy-Ship-Pay business process reference model identifies the key commercial, logistical,
regulatory and payment procedures involved in the international supply chain and provides
an overview of the information exchanged between the parties throughout its various steps.
The model was formally developed according to the UN/CEFACT Modelling Methodology
(UMM) and is also known as the International supply chain reference model.

The Buy-Ship-Pay Reference Data Model describes the requirements for a generic reference
data model supporting the trade and transport-related processes involved in the cross-border
supply chain and covering, at a high-level, the involved business areas, the main parties and
the information involved. It provides the framework for any cross-border transport-related
business and government domains to specify their own specific information exchange
requirements whilst complying with the overall processes and data structures.

The Buy-Ship-Pay Reference Data Model has taken a holistic approach to develop a reference
data model based on the UN/CEFACT Core Component Library (CCL) which brings together
the data exchange requirements of international cross-industry trade and multimodal
transport processes including related insurance, customs, and other regulatory documentary
requirements. It can be applied by any country, region, or industry community to provide the
definitions of contextualised transport-related data exchange documents which can be
integrated into software solutions for traders, carriers, freight forwarders, agents, banks,
Customs and Other Governmental Authorities etc.

140 http://tfig.unece.org/contents/stakeholders.htm
141 https://www.unece.org/fileadmin/DAM/cefact/brs/BuyShipPay_BRS_v1.0.pdf

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Relevance to trade facilitation

The Buy-Ship-Pay reference models facilitate Business Process Analysis and Data
Harmonisation efforts in various ways. The Buy-Ship-Pay business process reference
model can be utilised in the scope phase by providing an overview for defining local business
process requirements and it can also be used during "To-Be" modelling as a template in the
detailed process modelling phase.

The Buy-Ship-Pay reference data model can be used as the basis for the data harmonisation
as described in UNECE Recommendation 34, which is essential in the preparation of single
Window implementations. It also provides a comprehensive foundation for developing
globally aligned data exchange specifications which may be required for any aspect of the
international supply trade.

Scope

The International Supply Chain Reference Model (ISCRM)142 covers the processes following
the recognition of need by a customer for a product or service up until the fulfilment of an
order by a supplier and the resulting financial settlement. In addition to the business
processes associated with cross-border trading it also incorporates the necessary logistical
and cross-border regulatory activities which may be required by intermediaries and
authorities. This is illustrated in the following Use-Case diagram.

International Supply Chain Model, Roles and Services (Use Cases)

142 http://tfig.unece.org/contents/ISCRM.htm

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The overall scenario is described in the ISCRM. In summary, the use cases for the cross-border
Buy-Ship-Pay business collaborations are the (a) main and (b) supportive top-level processes
described in the following:

a) Main:

• Establish business agreement: A buyer issues a request for quotation to sellers for a
product or service. Sellers respond or send unsolicited quotes to a potential buyer.
The buyer negotiates with the selected sellers to agree the terms for a contract
agreement.

• Order: The buyer recognises a need for a product or service and places an order under
a contract agreement. The seller receives order and responds.

• Ship: The seller dispatches the products according to the terms of trade specified. All
transport arrangements are made and executed and the requirements laid down by
the relevant authorities are met. Invoice (demand for payment) is raised. The buyer
receives the product or service.

• Pay: A demand for payment is received. The payor makes the payment, and the payee
receives the payment according to the terms of trade agreed.

b) Supportive:

• Identify potential trading partner: The buyer looks for potential sellers and the seller
looks for potential buyers.

• Check credit: A seller initiates query on the credit worthiness of the prospective buyer.
An intermediary may respond with credit status. (out of scope in BSP)

• Manufacture: When the use case is about a manufactured product, the seller places
an order for the manufacturing of that product to a manufacturer, to meet customer's
order. The manufacturer confirms the planned delivery date when the product is
available for shipping.

Business partners in international trade

The ISCRM Buy-Ship-Pay model identifies four main business partner types: Customer,
Supplier, Intermediary and Authority. The types or organisations that make up these four
categories, and the roles they play, are described. The following list identifies the main ones.

Customer Supplier Intermediary Authority
Buyer Seller Transport Service Customs Authority
Provider
Invoicee Invoicer Bank Environmental
Agency
Payor Payee Credit Agency Agricultural Agency

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Customer Supplier Intermediary Authority
Importer Exporter Insurer Chamber of
Commerce
Final Consignee Original Consignor Customs Agent Consular Authority
Transport Transport Services Carrier Agent Inspection Agency
Services Buyer Seller
Ship To Ship From Commission Agent Port Health
Manufacturer etc. etc.

The ISCRM introduces a number of actors and roles as they appear in above, of which the
main are:

• Buyer: The party stipulated as the party to whom goods or services are sold. The
primary role of the customer as specified in a sales order contract is the buyer, while
other possible roles include the final / ultimate consignee, transport services buyer,
importer and Invoicee.

• Seller: The party stipulated as the supplier of goods or services. The primary role of
the supplier as specified in the sales order contract is the seller and other possible
roles include the original consignor / shipper, transport services buyer, exporter, and
invoice issuer.

• Intermediary: Within the international purchase and supply chain, an intermediary
can be any party who provides services to support either the sales order contract or
the transport service contract. The possible roles of an intermediary include the
transport service provider (e.g., carrier, freight forwarder), financial institution
including banks, credit agencies, insurers, customs agent, etc.

• Authority: An authority provides authorisation associated with any conventions or
regulations applicable to the trading of goods within the international purchase and
supply chain. The possible roles of an authority include border control authorities
(e.g., Customs), permit/licensing issuing authorities and Port Authorities including
Port Health, Inspection, Chambers of Commerce, other governmental authorities
(OGA), etc.

More specific definitions of party roles which are engaged in cross-border transactions, from
the above set are:

• Importer: The party who makes, or on whose behalf a customs clearing agent or other
authorised person makes, an import declaration. This may include a person who has
possession of the goods or to whom the goods are consigned.

• Exporter: The party who makes, or on whose behalf the export declaration is made,
and who is the owner of the goods or has similar rights of disposal over them at the
time when the declaration is accepted.

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• Transport service buyer: The party stipulated as the buyer of transport services in a
transport service contract. The transport service buyer role may be performed by
either the consignor or the consignee depending on the terms of delivery specified in
the associated sales order contract.

• Transport service provider: The party stipulated as the seller of transport services in
a transport service contract. The transport service seller role is an intermediary role
as described above.

• Invoice issuer (Invoicer): The party who issues an invoice.

• Invoicee: The party to whom an invoice is issued.

Business processes and business transactions in international trade

The scope of this BRS can be expressed as a subset of the scope of the UN/CEFACT ISCRM
covering the key processes of the trade and transportation of goods and the cross-border
clearances through to invoicing of goods-supply and the related transport services.

Buy-Ship-Pay model, Business Processes and Transactions

The figure above, illustrates the business processes and transactions that are included in the
Buy-Ship-Pay model143. The BUY, SHIP/DELIVER144 and PAY processes are shown at a high
level. Further analysis below that level, involves business process views and their
transactions. These definitions are much more detailed, are linked and further addressed to
the UN/CEFACT detailed analysis performed in specific projects (e.g., the Pipeline) while the
related data are captured in the transaction data model.

143 http://tfig.unece.org/contents/buy-ship-pay-model.htm
144 The term “Deliver” is more often used in supply chain, while “Ship” is use d more often in transport and

logistics processes.

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The links between the two reference models and information of the fundamental relationship
between international sales contracts and their associated international transport contracts
as defined by INCOTERMS including the party roles involved and the definitions and
relationships between the high-level data entities can be found in the Buy-Ship-Pay reference
data model business requirements specification (BRS).

Business requirements

As described in above, the BUY/SHIP/PAY business process scope may be viewed as
interrelated business areas representing commercial transport contracts, operational
transport and logistics, regulatory and border clearance processes together with the
corresponding information used both within each business area and which passes between
them. The following two diagrams describe these areas in terms of the key governing
contracts – the sales order contract and the transport service contract – and these diagrams
also show the relationships between the key process areas together with an indication of the
documentary requirements. The first diagram providing the sales order contract view, which
also applies and includes the transport services contract (and thereby, the related use-cases)
which is further expanded in the second diagram.

The Sales Order Contract View

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The expanded international transportation scope includes in more detail the processes of
transport booking, transport ordering and freight invoicing, mapping the actual
transportation and the related paper documents and their data exchange structures.

The Transport Services Contract View

Business Processes within the four Business Areas as defined in ISCRM

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The ISCRM maps business processes in four main business areas, namely the; (a) commercial,
(b) logistical, (c) regulatory and (d) financial, including procedures as illustrated indicatively in
the figure above. The following group of four figures illustrates the key roles and actors
related to the different business areas as defined in the ISCRM. The current project scope will
include and will be addressing all entities related to the first three (3) ISCRM business areas,
i.e., the commercial, the logistical and the regulatory.

Key Actors/Roles associated with the four main Business Areas

Commercial data exchanges / processes
May include:

• Issuing of catalogues,
• Issuing of quotation,
• Confirmation of sales order,
• Delivery scheduling,
• Issuing of despatch advice and packing list,
• Sales invoicing,
• Remittance advice.

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Logistical (transport) exchanges / processes
May include:

• Booking of cargo space,
• Issuing of shipping instructions,
• Issuing of transport contract document (i.e., Air Waybill),
• Transportation of goods,
• Requesting and issuing of transport status reports,
• Freight invoicing.

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Regulatory data exchanges / processes
May include reporting to Customs or appropriate other governmental agencies:

• Import/export declarations,
• Cargo and transit reports,
• Cross-border regulatory data pipeline data,
• Certificates of origin,
• Phytosanitary certificates,
• Dangerous goods declarations including Organisation of Economic Cooperation and

Development (OECD) hazardous waste notifications, etc.

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Financial processes
May include financial aspects of supply chain transactions such as the:

• Instruct payment,
• Credit/debit accounting,
• Statements and reporting,
• Cargo insurance.

Summary of Participating Parties
There are potentially many parties participating in the cross-border international supply
chain. These parties can be grouped into four main categories as indicated in the table below:
>>>

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Trade/Transport/Customs Party Roles

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