international transports
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TRANSPORTS AND ECONOMIC DEVELOPMENT
Transport has affected economic development from the beginning
of human civilization. Economic development focused on the
confluence of transport systems — early cities grew up on natural
bays and ports, and on rivers and lakes where transport was
available.
Romans built roads to unify and provide access to their far-flung
empire. Geographic characteristics such as proximity to oceans,
seas, and waterways, plains, mountains and the location of oases
defined early transport systems (e.g., the “Silk Road” went from
oasis to oasis, and city to city, where there were no reliable water
or road routes).
TRANSPORT’S CONTRIBUTION TO ECONOMIC DEVELOPMENT
INCLUDES THE FOLLOWING:
Network effects - linking more locations exponentially increases the value and effectiveness of transport
Performance improvements - reducing cost and time for existing passenger and freight movements increase transport’s contribution to economic growth
Reliability - improves time performance and reduces loss and damage, thus reducing economic drag
Market size-access to wider markets adds to economies of scale in production, distribution, and consumption, thereby increasing economic growth
Productivity - transport increases productivity gained from access to a larger and more diverse base of inputs such as raw materials, parts, energy, and labor, and broader markets for more diverse outputs
SPEDITION AND INTERNATIONAL TRANSPORTS
International shipper (freight forwarder) - is a
legal person working on the basis of a mandate
agreement concluded with the exporting /
importing company, it undertakes to take the
goods entrusted to it and perform all the
operations necessary for the goods to reach the
destination.
Carrier - performs the actual movement of cargo
into space, most commonly at the order of the
sender and the expense of the exporter or
importer, depending on the delivery condition
stipulated in the contract.
THE MAIN ACTIVITIES PERFORMED BY THE INTERNATIONAL SHIPPER IN
FOREIGN TRADE CONTRACTS, CONSISTS OF:
benefit its customers using the most suitable delivery
conditions covered internationally (INCOTERMS 2010);
conducting ex-ante on shipping costs, customs clearance,
insurance, etc., necessary for the movement of goods from the
place of production to the place of consumption;
choice of means of transport and routes most convenient in a
given situation;
concluding the formalities of insurance / reinsurance of goods
during transport and storage;
paperwork and formalities necessary for the proper functioning
of transport;
announce in time and under the conditions of the sale /
purchase of all those nominated in the expedition of goods;
performing benefits as a customs broker in accordance with
the national law and international law;
warehousing of goods in public warehouses;
assisting the transport regulations in different countries;
establish links between the international participants conducting a
transaction (seller, buyer, carrier, customs etc);
preparing goods for delivery (measuring, weighing, packing, marking,
etc.);
organization handling goods for combined transport / multimodal
(when using several means of transport);
organizing sending goods in traffic loads / consolidated (transporting
goods "door to door");
payments in the name and on behalf of recipients of services
provided;
other transport operations and related services.
MEANS (WAYS) OF TRANSPORT
The main ways of transport used in the
transportation of goods (and regulated
internationally) are:
Terrestrial traffic:
rail
road
Vessel traffic:
maritime
inland waterways
Air traffic:
air
Multimodal traffic:
multimodal transport
multimodal container transport.
Pipeline transport
ADVANTAGES / DISADVANTAGES OF DIFFERENT TRANSPORT MODES
Transport mode/way Advantages Disadvantages
Maritime
High capacity, mass transport
Relatively low cost;
Overall (global) accessibility.
It takes more time;
A higher cost of insurance with packaging and storage;
Crowded ports; transshipments.
Inland waterways
High transport capacity ;
Reduced costs
It takes more time;
Costs with upstream and downstream shipment,
transshipments.
Air
Speed, security, safety;
Lower costs in packaging, insurance and storage
High price;
Limited capacity;
Prohibition of some goods.
Railway
Low cost, high tonnage;
Traffic flow, timeliness;
Adapted to great distances.
Limited to the existing rail network;
Upstream and downstream operations, transshipment;
Unsuited to short distances
Road
“Door to door" services without transshipment;
Relatively short duration.
Short distances;
Unsuited to mass transport
Multimodal
Extensive safety;
Without transshipment.
Relatively expensive;
Differences between countries in handling procedures.
Pipeline Environmentally sound:
Can transport large quantities of goods;
The variable costs are low, once the investment is made.
Limited to fluids, gas, and chemical products;
Limited to created infrastructure;
TRANSPORT DOCUMENTS
The Convention Name of the document
Maritime transport
Brussels 1924
Hamburg 1978
Bill of Lading
Air transport
Warsaw 1929
Airway Bill
Rail transport
Bern 1896
COTIF 1985 (Convention Relative aux Transports
Internationaux Ferroviaires)
International (Rail) Consignment Note
Road transport
Geneva 1956
International (Road) Consignment Note
Multimodal transport
Geneva 1980
Multimodal Transport Document
Pipeline transport
Barcelona 1921
Pipeline Transport Document
TRANSPORT COST STRUCTURES AND PRICING PRINCIPLES
Economies of scale in transport can be achieved as follows:
1. Increasing vehicle size and maximizing use of their capacity;
2. Increasing fleet size and maximizing its capacity;
3. Intensifying the use of indivisible facilities and infrastructure.
4. Economies of density - a quantity of goods can be transported at a
lower unit cost when moved together in one consignment or load, or in
one uninterrupted flow.
5. Economies of scope – can be achieved when buying joint services (e.g.
roundtrip transportation).
6. Economies of distance (long-haul economies) – are achieved when
the total transport cost per ton-kilometer decreases as the trip distance
increases.
Economic
characteristics
Air Road Rail Sea Pipeline
Cost
High High/moderate Moderate Lowest Low
Cost structure
(fixed cost to total
cost ratio)
Balanced Lowest High Balanced Highest
Market coverage
Terminal to
terminal
Point to point Terminal to
terminal
Terminal to
terminal
Terminal to
terminal
Economies of
fleet size
Low Moderate Moderate Low Lowest
Economies of
vehicle size
High Moderate Moderate High Highest
Economies of
distance
High Low Highest High Lowest
SELECTING TRANSPORT SERVICES
Effectiveness considerations in service selection:
1. Suitability – appropriate technology and
handling equipment are needed for a mode a
transport to accommodate the conveyance of
goods;
2. Accessibility – or market coverage;
3. Security – goods should arrive in the same
physical condition and quantity at destination;
4. Transit time – very important in international
delivery;
5. Reliability – or reputation;
6. Flexibility – friendly information and service.