MARITIME TRANSPORT V.

Technological, Innovation and Research

PAPERLESS TRADE IN MARITIME AND MULTIMODAL TRANSPORT
Msc. Rosana Salama Benazar (Presenter); / Phd Jesús E. Martínez Marín Universidad Marítima del Caribe-UMC, Caracas -Venezuela / Universitat Politècnica de Catalunya-UPC, Barcelona - España Postal address Author 1: Urb Prados del Este, C. Isla Larga, Qta. Rosana. Caracas, 1080, Venezuela; Phones: Mobile: (58) 414 - 118 32 30; (58) 424 - 242 53 53; h: (58) (212) 977 17 43; E-mail: rosanasalama@gmail.com Postal Address Author 2: Calle Melcior de Palau 65-67, 3ero. 5ta. 08028 de Barcelona. Phone: +34-627292448, E-mail: jemartinez@cen.upc.edu

ABSTRACT The Vessels Design restructure as a consequence of containerization, also brought together the adaptation of alternative transport modes such as the road, train and air transports. The use of different modes to transport the cargo grouped in the container, represented an increase in the variety of documents and terms used for the entire process of delivering goods, which caused understanding problems, costs increases and goods delivery delays. Due to such problems it was necessary to harmonize processes, standardized terms, formats, and reduce the number of paper documents involved in the supply chain and the different modes of transport. International Organizations, based on information and communications technologies developments, have promote terms, documents and processes harmonization, using electronic languages and codes to reduce paper in different transactions. The objective of this study is to present initiatives of some organizations regarding standardization of terms and documents, which have made possible to develop trade facilitation and e business solutions that meet the need of the parties participating in trade and multimodal transport, reducing costs, goods time delivery and paper documents. The results will also present some standardized terms and documents that according to the interviewed specialists, are commonly used in maritime commerce through electronic communications, comparing them to the ones established by international organizations.
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creating a demand not seen before. Standardized Trade and Business Maritime Terms. 15). globalization and the so called information technology revolution. Over the past decade.Maritime Environment Research II KEYWORDS: EDI. that the Information Technology revolution. began in the 1970 decade“. (United Nations Conference on Trade and Development (UNCTAD). p. without exaggerating. World merchandise trade grew 4 times faster than GDP (14 / 3. with the generalized use of the container. compared to 2008. represented by the Gross Domestic Product (GDP). Table 1 shows how international commerce has increased in a higher rate than international production of goods and services. Taking into account Ships order book. (Castells.5) in 2010. it grew in a level without precedents. 2006.5% Source: based on data from World Trade Organization (2011). INTRODUCTION International commerce has increased in higher percentage since 1970. (World Trade Organization. 929 . “It could be said. despite the economic crisis in 2007. Harmonized Transport Documents. world merchandise trade and GDP relation has been as fallow: Table 1: World trade and GDP relation 1999 – 2009 World merchandise trade increase 4. Multimodal Transport. 42% in 2009 and 49% in 2010. Such increase has also brought together an increase on transport.3% GPD increase 2. 2010.5% 2010 14% 3. 74). as a revolution. Maritime Transport Growth. p. 2011).

requiring processes unification as well as documents and terms. Innovation and Research Figure 6: World Fleet at the beginning of each year. 500 400 300 200 100 0 Cellular Cargo Bulk carrier Oil tankers Other Source: (United Nations Conference on trade and Development.000. 2010).000. Figure 1 shows the world fleet increase in DWT year to year and a remarkable percentage between 1980 and 2010 regarding bulk carriers (145. Merchant ships bigger than 100 GT in millions of DWT .000.000 4. It is clear that cellular ships offer has widely increase in the last decades.6%) and cellular ships (1.000 8.436.000 12.000. not excluding other vessels type from that need. Technological.000.000 0 TEU´S Capacity 1987 1215215 1997 3089682 2007 9436377 2010 12824648 TEU´S Capacity Source: (United Nations Conference on trade and Development.000.000 2. 2010).MARITIME TRANSPORT V. Ships Bigger than 100 GT 14. The maritime containers traffic increase implies more transport movements since it depends on other modes to deliver goods from door to 930 .000 6. Cellular ships evolution has been as shown in Figure 2: Figure 7: Long term cellular ships capacity in TEU´s.000 10.000.4%).

with responsibility for the safety and security of shipping and the prevention of marine pollution by ships. As a consequence. the language of each one. in 1958. Due to the above. financial. including maritime within the transport one. created for different fields. Among its objectives are “to prevent unnecessary delays in maritime traffic. sections. i. that according to the interviewed maritime specialists are the most used in its work areas. governments turned to IMO by the early 1960´s. A way to reduce the number of papers is the multimodal transport. IMO has its background in a UN Conference held in 1948. 931 . to take action. to aid co-operation between Governments. subsections. STANDARDIZATION INITIATIVES FOR MARITIME TRADE AND BUSINESS There have been standardizing initiatives in most sectors. Other maritime areas are security. when it was decided to adopt a convention exclusively to maritime matters. its variety. another basic way to reduce papers has been the use of standardized terms and documents through electronic communications. health. among others. industrial.Maritime Environment Research II door. Then. the paper size and governmental requirements for all vessels traffic. United Nations Agencies The main UN Agency related to maritime transport is the International Maritime Organization (IMO). mechanics. as bigger burdens. on board communications. this paper presents initiatives of international organizations to facilitate maritime trade through terms and documents standardization and electronic data interchange. number of copies and. and to secure the highest practicable degree of uniformity in formalities and other procedures” (International Maritime Organization. Concerning the maritime and multimodal transport area. originating a variety of documents to be used on each section. [3](International Maritime Organization. but also the use of a unique transport document called Multimodal Waybill.e. It also presents some of those terms. It was adopted ten years later. pollution. due to the concern of maritime nations regarding the number of separate documents required from port to port. In particular. This paper is focused to maritime trade and business areas. In addition. 2012). which is not only the use of more than one mode. 2012). working groups and projects. among others. commissions. it could be taken as a base the initiative of the United Nations (UN) through its different agencies. they decided that the situation could not be allowed to deteriorate further and. the FAL 65 was adopted to assist the facilitation of international maritime traffic.

in 1984. include a Recommended Practice for public authorities to develop the necessary procedures in order to use prearrival and pre-departure information to facilitate the processing of information. the commission scope was broadened to include the Caribbean countries and its name was changed to Economic Commission for Latin America and the Caribbean (ECLAC) . The Commission for Latin America was set up in 1948 and called Economic Commission for Latin America (ECLA). social. 1996 and 1999 FAL´s 65 amendments include documents and processes standardization and electronic Business as follows: 1992 Electronic data processing/ electronic data interchange (EDP/ EDI) Submission of pre-import information Clearance of specialized equipment 1996 Passenger list 1996 Arrival. also encourages the electronic transmission of information. Lately. functional commissions and five regional commissions. The commission for Europe was set up in 1947. Technological. Pre-import formation The last amendments (2005). the UN Economic and Social Council. ECOSOC was established under the United Nations Charter as the principal organ to coordinate economic. 2012) United Nations Commissions Referring to the economical area. and thus expedite release and clearance of cargo and persons.MARITIME TRANSPORT V. a Recommended Practice that all information should be submitted to a single point to avoid duplication. and related work of the 14 UN specialized agencies.the Spanish acronym is CEPAL. Although 932 . (International Maritime Organization. crews and cargo inThe use of electronic data interchange (EDI) for ships clearance purposes Pre-arrival clearance. stay and departure of ships Passengers. 2012) ECOSOC had its first session in 1946. Some of them are: · IMO General Declaration · Ship's Stores Declaration · Crew List / Passenger List · Cargo Declaration · Crew's Effects Declaration · Dangerous Goods The 1992. and called United Nations Economic Commission for Europe (UNECE). it has set up five Economic Commissions. that stands for Comisión Económica para América Latina y el Caribe. (United Nations. Innovation and Research the Convention reduces the number of documents which could be required by public authorities to ship. since then.

developing and transition economies. 2012). Information Content management Group. ECLAC. to exchange products and relevant services effectively. “Its principal focus is on facilitating national and international transactions. LG. developed by the World Wide Web Consortium). ICG and Applied technologies Group. and so contributing to the growth of global commerce” (United Nations. between independent computerized information systems” (United Nations. the Latin American Commission has been aimed mainly to social aspects. UN/CEFACT. UN/CEFACT has a forum management group. (Economic Commission for Latin America and the Caribbean. covering both commercial and government business processes that can foster growth in international trade and related services”.) UNECE “serves as the focal point to trade facilitation recommendations and electronic business standards. an intergovernmental body within the Trade Committee. Legal Group.d. which “comprise a set of internationally agreed standards. ATG). and is mainly used in extended messages. 933 . but worldwide. from developed. It is divided in more than 19 subgroups and the TBG3 is the one corresponding to Transport and Logistics. is the UN/EDIFACT (The United Nations Rules for Electronic Data Interchange for Administration. it is the European one that has been focused toward trade facilitation through electronic business standards. increasing also the number of documents and terms used. trade and administrative organizations. Techniques and Methodology Group. directories. since for short messages it is more common to use XML language (Extensive Markup Language. working not only to facilitate trade in Europe. called United Nations Centre for Trade Facilitation and Electronic Business. TBG. TMG. procedures and information flows. 2012) One of the instruments developed by the CEFACT to achieve its goals. mainly after 1970.Maritime Environment Research II both commissions were established for economical aspects. Commerce and Transport). (United Nations. ECLAC. composed of 5 groups (Transport and Business Group. and guidelines for the electronic interchange of structured data. EDIFACT is an electronic code to form messages. mandated to develop a work program of global relevance to improve coordination and cooperation worldwide in these areas. 2012) As mentioned earlier. in 1996. UN/CEFACT activities are aimed to improve the ability of business. UNECE established a subsidiary. through the simplification and harmonization of processes. n. maritime transport has increased year to year. In this context. The TBG is the one in charge of Transport and Business.

TBG19 ITIGG UN/EDIFACT (Syntax for Messages structure) Table 2: United Nations CEFACT Forum Structure Source: (Vankenmel. 2009) 934 . Technological..MARITIME TRANSPORT V.. Innovation and Research United Nations Structure related to standardization process for trade ECOSOC (1946) UNECE (1947) CEPAL (ECLAC) (1948) UN/CEFACT (1996) 5 Work Groups (TBG LG TMG ICG ATG) TBG1…TBG3…TBG7.

Engineering & Construction TBG 7 Statistics TBG 8 Insurance TBG 10 Healthcare TBG 11 Social Security. the ISO and OASIS International Standardization Organization (ISO) ISO. The ones related to transport are: TC 8 Ships and Marine Technology TC 22 Road Vehicles TC 52 Light gauge metal containers TC 104 Freight containers TC122 Packaging TC 154 Processes. founded in 1946. industry and administration TC 172 Document management applications TC 184 Automation systems and integration TC 96 Cranes TC 110 Industrial trucks TC 101 mechanical handling equipment 935 . International Trade procedures….Maritime Environment Research II Table 3: Composition of the UN/CEFACT TBG Groups TBG 1 Supply Chain / eProcurement TBG 2 Digital papers (UNeDocs) created March 05 TBG 3 Transport / Logistics TBG 4 Customs TBG 5 Finance TBG 6 Architecture. Source: (Vankenmel. 2009) The TBG3 has an official subgroup created in 1995. data elements and documents in commerce. ITIGG. Employment & Education TBG 12 Accounting and Auditing TBG 13 Environmental Management & Safety TBG 18 Agriculture created March 05 TBG 19 e-Government created Sept 05 Others : Harmonization.. derived from the Greek isos. The International Transport Implementation Guidelines Group. which mission is to provide principles and rules for production of consistent and harmonized implementation guidelines and user´s manuals of UN/EDIFACT and XML transport messages throughout the world. for example. It is a non-governmental organization that forms a bridge between the public and private sectors. is the world's largest developer and publisher of International Standards. It works through Technical Committees. Its abbreviation "ISO". UN/CEFACT works together with other organizations standardizing processes. meaning "equal".Business Process Analysis.

Innovation and Research The EDIFACT syntax rules were agreed in the ISO Committee TC154. which contains technical specifications that facilitate efficient exchange of electronic information between ships and shore for coastal transit or port calls. since its Technical Committee 154 (TC154) has published specifications for ebXML. Organisation for Advancement of Structured Information Standards (OASIS) OASIS is a not-for-profit consortium that drives the development. ISO TC154 is involved in work that relates to many OASIS Technical Committees and the UN/CEFACT The last ISO bulletin related to maritime transport standardization data from February 2011. OASIS. and . the ebXML that stands for Electronic Business Extensive Markup Language. but not necessarily cover issues such as customs clearance of imported or ex936 .MARITIME TRANSPORT V. The ebXML is also related to ISO. Venezuela is not a signatory country of ISO. The Consortium hosts two of the most widely respected information portals on XML and Web services standards. 2012). (OASIS. launched a project in 1999. Cover Pages and XML. It is intended to cover safety and security information requirements related mainly to the relationships between the ship. together with the UN/CEAFCT.OASIS: technical infrastructure allowing to share registries /dictionaries. With its focus on e-business. 2009): . including the maritime and industrial one. Standardization roles split between [14] (Vankenmel. forms-layout (paper / electronic).org [7] (Organisation for Advancement of Structured Information Standards. the port and coastal state authorities. ISO TC154 supports development and maintenance of application specific standards for: process specification (in the absence of development by other technical committees).UN/CEFACT: semantic contents. convergence and adoption of open standards for the global information society. nevertheless standardization established by ISO is applied in different fields. It is the ISO 28005-2:2011. to be an international standard (ISO 9735) in September 1987. The project objective is to define specifications for a XML exchange architecture. It can also be used for information exchanges between the ship and the ship agent. 2012). data specification with content. Technological. the port and ship operator or manager. data and business models based on the considerable asset of EDIFACT.

960 ETA reporting to pilot stations. It does not define the message structure. it could cited the followings: The Andean Community Bolivia . to collaborate in securing the highest practicable degree of uniformity in appropriate procedures and legal provisions in relation to the entry and clearance of vessels and the treatment of passengers.862 Bulk loading and unloading code. cargo and baggage in all matters in which such uniformity will facilitate and improve international waterborne transportation. 2012). ISPS code (International Ship and Port Facility Security). (Venezuela denunciated in 2006) It is a regional agreement searching for a common market. Peru. LATIN AMERICA INITIATIVES ON STANDARDIZING TERMS Organization of American States (OEA) Created in 1946. It´s decisions 331 (1993) and 477 (2000) mention the use of EDI when defining Multimodal Transport Document in article 1. Regarding sub regional organizations. when proposing EDI use instead of paper documents. (International Organization for Standardization. the convention has among its purposes. in 1963. A convention related to maritime transport harmonization is the following: Inter – American Convention on Facilitation of International Water born Transportation. Resolution A. which partly accomplish Recommendation 12 (1993) of the UNECE (United Nations Economic Commission for Europe). Convenio de Mar de Plata) Signed in Argentina. Colombia. (Organization of American States (OEA). This organization has several sub regional organizations and conventions. The convention does not specify rules for EDI or terms standardization and it is a regional agreement that follows recommendations from different technical committees. Convention of Mar de Plata (Convenio Interamericano para Facilitar el Transporte Acuático Internacional.Maritime Environment Research II ported goods or transport service provisions to goods owners. saying it could be substitute by Electronic Data Messages and issued as negotiable and not negotiable. but not following all the recom- 937 . Those elements are reported as defined in other International organizations such as IMO through: FAL 65. in 1889. having its origin in a meeting held in Washington. crews. n. but contains definitions of data elements for Port Electronic Clearance. US.d.). Resolution A. Ecuador. it is the most antique regional organization.

Other Latin American organizations could be mentioned. abbreviations and phrases used in integral logistics and all the supply chain. but not a common language regarding terms abbreviation or documents harmonization through EDI. Its main purpose is to collect in a unique document the most common Spanish. including production. but all of them are focused mainly to regional harmonization and with few points dedicated to Electronic Communications. The purpose of the GTL is to harmonize the glossaries published in the region and worldwide. Technological. regarding management of different logistic activities. It is together with other organizations that this objective is accomplished. for example: ALADI and the Latin American Logistic Association. the glossaries found only shows standardization regarding definitions. Portuguese and English words.MARITIME TRANSPORT V. nevertheless. it establishes standard procedures for regional trade and transport. prepared a trilingual glossary (GTL) regarding standardized logistic terms. 2011). Features Booking and SI status dashboards – view all transactions from one screen and drill down to any single shipment with a few clicks. ALL (that stands for Asociación Logística Latinoamericana). The Latin America Integration Association (ALADI) Latin American Integration Association. Through different mechanisms. View transaction status by user or company 938 . supplying. purchases. ALADI (that stands for Asociación Latinoamericana de Integración) is integrated by 12 countries (including Venezuela) was signed in 1980. as a joint proposal. keeping the most common words used in each language. Innovation and Research mendation updated in 2011 since the Recommendation 12 says that “administrative authorities should ensure that any official mandatory requirements can be met by the use of non negotiable transport documents in preference to the negotiable bill of lading” (United Nations Economic Commission for Europe (UNECE). at Montevideo. storage and physic distribution function. The GTL is born as a proposal from both organizations to achieve projects of common interests and activities related to regional logistic. but trying to unify expressions.

Brasil Foods S.” Viviana Garrido. INTTRA has secured a prominent role in providing practical. pending.A. pending. fast. anywhere – access the INTTRA Portal from a browser from any computer that is connected to the Internet Highly reliable. amended. Spanish. confirmed. Logistic Manager Vitro Vidrio y Cristal SA de CV: “Today INTTRA unifies several shipping lines’ process making the operation of the users simple and faster.:“In a world where speed and accuracy of information are critical. Logistic Manager. Chinese (Simplified and Traditional). cancelled. or Turkish Available anytime. Portuguese. amended. Japanese. scalable platform with multiple redundancies and back-up systems Secure access and data controls ensure your information is private Reduce paperwork and simplify retention – minimize the amount of documentation and organize your documents Maintain and search booking requests and SI submissions across all carriers Receive and save confirmations and amendments online for easier access and auditing Robust standard reports that can be automated to run per your schedule Testimonials Eng. and rejected Language preference – select a default language and view all applications and transactions in the preferred language English.” 939 .Maritime Environment Research II View Bookings requested. Alfonso Rodriguez Najera. French. declined or replaced for a user or for your company View Shipping Instructions submitted. accepted. and secure data transmission.

A. INTTRA is excellent exactly for that reason. The specialists interviewed did not know about the existence of this syntax. Logistics Supervisor. Standardized documents used by mari. It has enabled both carriers and shippers to take cost out of the supply chain and improve the services provided to our ultimate customers.MARITIME TRANSPORT V. Rayonier: “INTTRA’s services are key to accurate and timely arrangements for shipment and documentation. we need to be flexible and attend to these changes. CMPC Maderas S. Technological. The visibility tools assist with measuring carrier performance and creating carrier scorecards. Each message is identified by a six character name. are the most frequently used. Documentation errors and cycle time have been drastically reduced.” Terry Bunch. Innovation and Research Barbara Donoso Silva .” Case Studies Read how INTTRA's products and solutions have created business advantages for some of our customers. but they did mention among the harmonized documents and terms used.” “INTTRA has cut the time to book an order in half. MAIN STANDARDIZED MARITIME AND MULTIMODAL TRANSPORT TERMS AND DOCUMENTS USED IN ELECTRONIC COMMUNICATIONS This section could only be fulfilled with those terms established trough the EDIFACT syntax and harmonized documents of IMO and ISO. It is important to say that an EDIFACT message is a single business document.” “INTTRA has played a key role in standardizing booking and documentation processes. some of those from UN/EDIFACT and other standardizing initiatives. as compared to booking by phone.EDIFACT Message 940 . it’s a tool that gives us that flexibility starting from Ocean Schedules to receiving our Bills of Lading. In this paper will only be named the terms that according to maritime specialist interviewed. :“Ocean Shipping has been very dynamic with constant changes and our business follows this same rhythm.

Packing List. NVOCC (Non Vessel Operator Common Carrier). MOA (Memorand of Agreement). CM (Cargo Manifest). are harmonized in different maritime glossaries. FAS (Free along Side Ship). Ballast (Ballast water). CIF (Cost. Stowed and Trimmed). ETA (Estimated Time of Arrival). LOI (Letter of Indemnity). the interviewed specialists mentioned the followings: BAF (Bunker Adjustment Factor). FIOST (Free In.Maritime Environment Research II time and multimodal specialists Purchase Orders Instruction Message Arrival Notice Invoices Customs Declaration Quotation Sanitary/Phytosanitary Certificates Delivery Order Stowage Plan / Bay Plan Booking ORDERS IFTMIN IFTMAN INVOIC CUSDEC QUOTES SANCRT DESADV (Despatch Advice Message) BAPLIE COPRAR Other important documents. NOR (Notice of Readiness). Insurance and Freight). ULCC (Ultra Large Crude Carrier). CBM (Cubic Meters). (Cost and Freight). CIP (Cost and Insurance Paid). Out. including that presented by ISO and mentioned before. INCOTERM already out of use . Demurrage. FC (Freight Certificate). POD (Port of Discharge). SS (Special Survey). Detention. DDU (Delivery Duty Unpaid). EMC (Electronic Manifest Corrector). LOP (Letter of Protest). FIFO (Free In and Free Out). due to its extended use. CFS (Container Freight Station). FEU (Forty Equivalent Unit). FCL (Full Container Load). HBL and MBL (House B/L and Master B/L). Referring to standardized terms. Shipping List. Wharfage. That is the case for the fallowing documents: B/L (Bill of Lading). DD (Dry Dock). ORC (Origin Charge). EXW (Ex Works). CFR. VLCC (Very Large Crude Carrier). Cnee (Consignee). Chrts (Charters). FOB (Free on Board). THC (Terminal Handling Charge). SCD (Single Custom Declaration or DUA in Spanish). NOA (Notice of Arrival). LNG (Liquefied Natural Gas). ETD (Estimated time of Departure). 941 . SOF (Statement of Facts). M/V (Moto Vessel). CP (Charter Party). TEU (Twenty Equivalent Unit). AWB (Airway Bill). DRV (Daily Report of Vessels). SOA (Statement of Account). Bkr (Broker).. the Bulletin ISO 28005-2:2011. POL (Port of Load.

terms and processes in maritime and other modes of transport data from 1948. INVOIC. which is the social welfare. FIFO. transport processes and terms harmonization. This focus would help to achieve the main purpose of most treaties. It is through the European Commission that those purposes are accomplished. not knowing about the disappearance of some of them in the new INCOTERMS 2010. Regional Organizations should be more focused to economical areas. harmonized by shipping lines and IATA (International Air Traffic Association) respectively and controlled by special rules. also. CUSDEC. The interviewed maritime specialists do not know about the existence of the EDIFACT syntax. as well as documents standardization. Innovation and Research CONCLUSIONS The initiatives to harmonize documents. IFTMIN. ORC and BAF: Surcharges to the freight rate. it was found that the South American organizations are more focus to social matters than to economical ones. an example of it is the ECLAC. with inquire of various governments that went to the UN looking for regulations. PROPOSAL Latin American Delegations should be conformed in order to assist to the technical committees meetings involved in trade and maritime transport harmonization.MARITIME TRANSPORT V. 10 years later. The main ones are: ORDERS. the electronic data transfer. The most common document use as a standardize one is the waybill (Bill of Lading and Airway bill). LIFO and FIOST: Liner terms. The harmonization commonly use is that established by recognized international organizations that work not only for developed countries. Technological. non the terms. When talking about Latin America. then. IMO was created in order to attend maritime requirements. which does not have among its purposes. 942 . documents and processes harmonization for commerce. As examples are: DDU (INCOTERM out of use). but also for transitions and undeveloped ones through different committees. but they do use harmonized documents defined by UN/EDIFACT. Regarding the standardized terms mentioned by the specialists interviewed as the most used in its daily work are those corresponding to the INCOTERMS (International Commerce Terms). those related to liner freight rates surcharges. THC. QUOTES AND BAPLIE.

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