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5.

Methods of Transport and Transport Documents


Transport
Transport is a form of communication; a means of making contact between two distant
points. It provides services that enable workers to go to and from work, raw materials to
reach the producer and finished products to be distributed. An efficient transport system
reduces the amount of capital needed to be tied up in stocks, because new supplies can be
obtained quickly. It also makes international trade possible.
Modes of transport
Each type of transport has its special uses. Transport users will take the following factors
into account when choosing the form of transport to use:
1. the nature of the goods
2. how urgently the consignment is needed
3. the value of each item
4. cost of the transport
5. distance the consignment must be transported
6. the size and weight of the load
7. convenient position of terminals, e.g. station, docks and airport
8. possibility of combining loads to reduce costs
9. the reputation of the carrier
1.) Road transport
Advantages:
- door-to-door service provides maximum flexibility: goods are loaded at one point and
neednt be touched until they reach their final destination. So delivery is made direct to
the consignees premises.
- fast over short distances of less than 200 miles i.e. directness of the journey
- the risk of damage reduced by lack of need for transhipment
- can reach places inaccessible to other forms of transport.
- less tied to a rigid timetable than railways
- suitable for speedy direct delivery of perishable goods
- Other forms of transport rely on road transport to connect with terminals such as dock,
airport, station.
Disadvantage:
- expensive to operate in large congested cities
- subject to mechanical breakdown
- affected by adverse weather conditions
- loads are limited in size and weight
- some roads unsuitable for very large vehicles (mainly in Europe)
- slower than railways over long distances.
- wastes resources if lorry returns empty (res visszfuvar)
- Problem of congestion (torlds).
- cause a lot of pollution,
2.) Rail transport:
For a century the railways were supreme in inland carriage, but today in most countries
the railways lose market. Since the mid 1950s, considerable sums of money have been
spent on railway modernisation all over the world in order to became profitable sector.

Advantages:
- fast when actually moving, because it has private ways, which is kept clear.
- for long distance, more than 200 miles, it is more economical.
- less labour-intensive than road transport: (1 driver, 2 guards)
- more economical in fuel use
- especially suited for container transport
Disadvantages:
- terminal problem: goods must be loaded and unloaded at terminals to
complete their journey to the buyers by road vehicle
- routes determined by railway lines and stations
- traffic density: railways operate ideally when the train is full.
- equipment costs are very high
- less economical than road transport for journey less than 200 miles
- there is more handling, and therefore greater risk of damage
- The risk of pilferage is greater.
The Freightliner Service:
It is an integration of road and rail transport. Containerisation: standard sizes of
containers are loaded direct from road transport on to special train bogies, and at their
destination they are unloaded in a similar manner. The simplified handling results in:
- speedier and more economical
- reduced losses from damage or theft
- direct links with terminals such as ports
3.) Sea transport:
It is particularly important for those countries which are situated in an island or close to
the sea, because it provides them main link to overseas markets and it contributes to the
balance of payment (invisible income)
Four basic types of ships:
1. passenger liners: are built primarily for passenger travel. They carry some cargo.
The fright costs is high, that is why mainly high value cargoes are
transported by this kind of ship
2. cargo liners: are built to deliver cargoes, and sometimes carry also a few
passengers. They operate on fixed routs and keep to a regular
timetable. The vessel will sail from port to port on time, even if some
cargoes havent arrived in time.
3. tramp ships: have no timetable and set routs. They carry any type of cargo, mainly
bulk cargoes to any port in the world. E.g. coal, grain, timber, sugar,
ores, fertilisers are carried in complete shiploads and many of them is
seasonal. The ships are chartered through a charter party agreement on
time or voyage basis.
4. special freighters are purpose-built ships, which can carry special cargoes:
container ships: semi-container ships carry both containers and general
cargoes; full-container ships carry exclusively containers
bulk carriers: carry mainly ore and grain
tankers: oil and other bulk liquids
ferries: carry some kind of vehicles, wagons
Shipping is divided into 2 main classes:
1. Liner services and conferences:
Cargo liner companies provide regular traffic between ports in different parts of the
world. They are called Liner Conference, which is an organisation whereby a number
of ship-owners offer their services on a given sea route on conditions agreed by the

members.
Liner freight rates are quoted on a basis of weight or measurement at ships option. If
the goods are heavy (iron and steel), the freight is usually calculated according to
weight. But if the goods are light (fruit) or made of light materials (furniture) the
freight is calculated according to volume.
The deferred rebate (hsg rabat) is a device to ensure that shippers will continue to
support a conference. A shipper who ships exclusively by conference vessel can claim
a rebate. In this way the shipper has an inducement to remain loyal to the conference.
2. Chartered vessels: are used to carry such bulk cargoes as coal, grain, timber. They do
not follow fixed routes but go wherever they are needed, so they can be at the port
when cargo is required to be moved. A company wanting to charter a ship will apply to
one of the world freight markets such as the Baltic Exchange in London. This market
provides a market place for the sale of ships and the chartering of vessels or space on
them. The rates are not pre-determined, but are based on economic forces of supply
and demand.
A charter party: is a contract by which the shipowner agrees to place the entire ship or
a part of it at the disposal of the charterer for the carriage of goods.
4.) Air transport
The youngest but most highly technical form of transport. Flights now go to almost every
major city in the world. It is used when the goods are urgently required or it has high
value.
Advantages:
o fastest form of transport and shorter transit time reduces insurance cost
o operates to timetable, mostly on direct routes
o reduces risk of damage or pilferage (less damage in loading and unloading)
o packaging costs reduced
o particularly effective over long distances
o containers are now being used to speed up cargo loading and unloading
facilities.
Disadvantages:
- high operational costs result in high freight rates
- weight and size of cargo is limited
- sometimes affected by adverse weather condition
- relies on other forms of transport to and from airport
- not suitable for short distances
- causes noise and pollution
5.) Inland waterways (canals and rivers)
Despite the glorious past of the great canal era, this form of transport has largely been
replaced by road and rail transport.
Advantages: smoothness of movement and it is the cheapest form of transport. But these
advantages are generally outweighed by the main disadvantage which is slowness. It is
important for landlocked countries.
6.) Pipelines
It is possible to transport without using a vehicle by transfer via pipelines. They are used
to transport liquids such as oil, water as well as gas, electricity, telephone and data-lines.
In case of oil, the pipelines link the oil refinery (finomt) with various distribution
depots.
Advantages:
o low cost of distribution with virtually no labour content in the distribution

network
o a 24-hour availability of the pipeline and its low maintenance
o from an environmental point of view: no noise or fumes, but: during installation
it cause little disruption.
Disadvantages:
- high costs of installing the pipeline system.

Transport documents
A transport document is a document that indicates loading on board or dispatch or taking in
charge. Its functions are to provide evidence of a contract of carriage, evidence of receipt of
the goods (by the carrier) and, in some cases, they are also documents of title, giving the
holder of the documents title to the possession of the goods. They are necessary to prove the
executing of an order.
1.) Bill of lading
A transport document for goods shipped by sea, in which the ship-owner acknowledges
the receipt of the goods and binds himself to deliver them to their destination under the
terms agreed upon.
It can perform their 3 function.
a.) evidence of a contract of carriage between the shipping company and the
exporter/buyer to transport the goods by sea.
b.) receipt for the goods, and provides some details about the condition of goods
received.
c.) document of title to the goods: the holder of the B/L has the right to possess the
goods. Title to the goods can be transferred by the
sender by endorsement.
Types:
1. Shipped on Board B/L: acknowledges that the goods have been actually
received on board
2. Received for Shipment B/L: acknowledges that the goods are in the care of the
shipowner for carriage on a ship, but doesnt say that the goods on board.
3. Through B/L, Combined transport B/L: it is used in containerised transport,
the goods are carried by 2 or more modes of transport
2.) Sea waybill or liner waybill:
A waybill is a list of goods carried. A sea waybill is a transport document which gives
details of a consignment of goods, and it acts as:
- contract between the shipping company and the exporter
- receipt by the shipping company for the goods received, and so provides
evidence of shipment
The shipping company will deliver the goods to the consignee named in the bill, without
the consignee having to give the shipping company an original copy of the waybill.
It is used:
- if the exporter is sending goods to an overseas subsidiary
- if the exporter sells goods on open account terms
3.) Air waybill:
A waybill for goods transported by air: the contract of carriage, receipt by the airline for
goods received into custody. It is not a document of title.
The airline will hand the goods to the consignee at the airport of destination without the

consignee having to present an original copy of the waybill.


4.) Road consignment note or truck receipt:
It is a receipt issued by a carrier for goods that are to be transported by road. The goods
will be delivered to the consignee named in the note at the place of delivery given in the
note.
- acts as both a receipt and as a delivery note
- non-negotiable, is not a document of title
- the note also specifies the name and address of the sender and the consignee, the
place of delivery and the place and date of taking in charge by the carrier.
CMR note is an internationally-approved transport document for the carriage of goods by
road through those countries that are party to the CMR (Convention Merchandises
Routier).
Containerisation: it is a method of distributing merchandise in a unitised form thereby
permitting an inter-modal transport system to be evolved providing a possible combination of
rail, road, sea transport.
A container is a large pressed steel box capable of carrying 20 to 30 tonnes of cargoes. It is
packed at the factory warehouse and delivered to the container terminal by rail or road and
deposited in the container parking area in the docks or airport.
Advantage:
- door-to-door service from the factory production site to the retail distributors store.
- no intermediate handling at terminal transhipment points (road/rail terminals,
seaport)
- reduce the risk of cargo to be damaged or lost.
- less packing needs for containerised consignment. This produces considerable cost
savings of the
international transit and raises service quality.
- provision of through documentation or combined transport B/L.