CIV 441 URBAN TRANSPORTATION PLANNING

DESIGN AND MANAGEMENT

LECTURE #1

HISTORICAL DEVELOPMENTS OF TRANSPORT

FREIGHT TRANSPORTATION

• Freight transport is the physical processof transporting commodities and merchandise goods and cargo.

• The term shipping originally referred to transport by sea, but isextended in American English to refer to transport by land or air(International English: "carriage") as well.

• Different modes of shipment are:• Ground• Ship• Air• Intermodal

MODES OF SHIPMENT

Ground• Land or "ground" shipping can be by train or by truck (International English: lorry).• In air and sea shipments, ground transport is required to take the cargo from its

place of origin to the airport or seaport and then to its destination because it isnot always possible to establish a production facility near ports due to limitedcoastlines of countries.

• Ground transport is typically more affordable than air, but more expensive thansea especially in developing countries like India, where inland infrastructure is notefficient.

• Shipment of cargo by trucks, directly from the shipper's place to the destination, isknown as a door to door shipment and more formally as multimodal transport.

• Trucks and trains make deliveries to sea and air ports where cargo is moved inbulk.

Ship

• Much shipping is done by actual ships. An individual nation's fleet and the peoplethat crew it are referred to as its merchant navy or merchant marine. Merchantshipping is the lifeblood of the world economy, carrying 90% of internationaltrade with 102,194 commercial ships worldwide. On rivers and canals, barges areoften used to carry bulk cargo.

Air

• Cargo was transported by air in specialized cargo aircraft and in the luggagecompartments of passenger aircraft. Air freight is typically the fastest mode forlong distance freight transport, but also the most expensive.

Intermodal

• Intermodal freight transport refers to shipments that involve more than one mode.More specifically it usually refers to the use of intermodal shipping containers thatare easily transferred between ship, rail and truck.

MODES OF SHIPMENT

Common trading terms used in shipping goods internationally include:

Free on Board (FOB)• The exporter delivers the goods at the specified location (and on board the

vessel).

• Costs paid by the exporter include load, secure and stow the cargo, includingsecuring cargo not to move in the ships hold, protecting the cargo from contactwith the double bottom to prevent slipping, and protection against damage fromcondensation.

• For example, "FOB JNPT" means that the exporter delivers the goods to theJawahar lal Nehru Port, India, and pays for the cargo to be loaded and secured onthe ship.• This term also declares that where the responsibility of shipper ends and that of buyer starts.

The exporter is bound to deliver the goods at his cost and expense. In this case, the freightand other expenses for outbound traffic are borne by the importer.

TERMS OF SHIPMENT

• Carriage and freight (C&F)

• Insurance is payable by the importer, and the exporter pays all expenses incurred in transporting the cargo from its place of origin to the port/airport and ocean freight/air freight to the port/airport of destination.

• For example, C&F Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles).

• Most of the governments ask their exporters to trade on these terms to promote their exports worldwide such as India and China.

• Many of the shipping carriers (such as UPS,DHL, FedEx) offer guarantees on their delivery times. These are known as GSR guarantees or "guaranteed service refunds"; if the parcels are not delivered on time, the customer is entitled to a refund.

TERMS OF SHIPMENT

• Carriage, insurance and freight (now known in the US as "cost,insurance and freight")(CIF): Insurance and freight are all paid by theexporter to the specified location.• For example, at CIF Los Angeles, the exporter pays the ocean shipping/air

freight costs to Los Angeles including the insurance of cargo. This also statesthat responsibility of the shipper ends at the Los Angeles port.

• The term "best way" generally implies that the shipper will choosethe carrier who offers the lowest rate (to the shipper) for theshipment. In some cases, however, other factors, such as betterinsurance or faster transit time will cause the shipper to choose anoption other than the lowest bidder.

TERMS OF SHIPMENT