FAQs for ITL/MSS-Part II

1.Explain the functional aspects of multi modal transport operator (MTO).

Answer: An MTO assumes responsibility (is liable) for the performance as a carrier for more than one
mode of transport. MTO bears the liability for the entire transport according to the contract with the
Shipper or consignee subject to INCO terms .MTO assumes responsibility of the end to end to logistics
The contract between the shipper/consignee and MTO are long term basis thus allowing to operator for
long term planning and investment in ships, terminals, trucks etc.

2.What are the documents involved in a Multi Modal Transport?

Answer: After the goods are received for shipment and are in the custody of the Multi-Modal transport
operator, a multi modal transport document ( MTD) is issued by the operator .This single document
covers end to end logistics for the shipment in question. MTO takes over the full responsibility. The
merchant no longer needs to seek redress from the individual actual carrier. He simply claims against the
MTO who in turn must claim against the liable sub-contracting carrier. In addition to this other document
are insurance certificate, cargo manifest, shipper’s declaration and certificate of origin

3.How is the carriage risk covered under multi modal transport?

Answer: In order to cover this liability, it is essential that the MTO arranges adequate 'liability insurance'
cover for its operation. Example such as Singapore the important criterion of being a member of the
Singapore Registry of Accredited Multimodal Transport Operators is that the applicant must be insured
for carriers liability insurance for at least US$500,000 per any one claim.

4.How is the liability of cargo covered for each leg of the transport?

Answer; An international reliable network of own offices, representatives and agents is another essential
requirement for the MTO. Since the MTO is liable for the entire (multimodal) transport, he is liable for his
sub-contractors which are very often located overseas. As such it is important for an MTO to choose his
agents carefully.

5.Who is a freight forwarder?

Answer : A freight forwarder is a transport intermediary, operating in the liner trades, who arranges the
export of another party’s goods (by land, sea or air) and “forwards” the goods into the care of the sea
carrier. Freight forwarders can advise on routeing, can arrange carriage with a carrier (booking space,
paying freight, etc.), can prepare or assist in preparing customs documents, can make customs entry
(clearance) of goods, can arrange packaging and warehousing of goods before shipment, can arrange
goods transit insurance, and can in many cases arrange “group age” or “consolidation”, meaning the
more cost-effective shipment in one transport unit of several small parcels sent by different shippers,
where they are all destined for the same delivery port or place)
6.What happens if the goods delivery is delayed or goods are found damaged upon delivery to
the consignee?

Answer: The responsibility of the MTO for the Goods under this Contract covers the period from the time
the MTO has taken the Goods into his charge to the time of their delivery .MTO shall be liable for loss of
or damage to the Goods as well as for delay in delivery, if the occurrence which caused the loss, damage
or delay in Delivery took place while the Goods were in his charge , unless the MTO proves that no fault
or neglect of his own, his servants or agents or any other person or contributed to the loss damage or
delay in Delivery.

7.What is the procedure to be followed incase the goods are found to be damaged condition?

Answer: Unless notice of loss of or damage to the Goods, specifying the general nature of such loss or
damage, is given in writing by the Consignee to the MTO when the Goods are handed over to the
Consignee, such handing over is prima facie evidence of the delivery by the MTO of the goods as
described in the MTD. Where the loss or damage is not apparent, the same prima facie effect shall apply
if notice in writing is not given within six consecutive days after the day when the Goods were handed
over to the Consignee.

8.What is the responsibility of the shipper/consignor?

Answer: The Shipper/Consignor shall be deemed to have guaranteed to the MTO the accuracy, at the
time the goods were taken in charge by the MTO, of all particulars relating to the general nature of the
goods, their marks, number, weight, volume and quantity and, if applicable, to the dangerous character
of the goods as furnished by him or on his behalf for insertion in the MTD .The Consignor shall indemnify
the MTO for any loss or expense caused by inaccuracies in or inadequacies of the particulars referred
earlier.

9.What is a Seaway Bill?

Answer: Sea way bill is a type of Bill of Lading which is non-negotiable and allows quick (express) release
of consignment to the receiver named on the document.The ownership of the goods cannot be transferred
by endorsing the sea way bill. It is a simple receipt of the cargo, incorporating the terms and conditions
of the transport contract between the carrier and its customer.

10.What are the key points to be considered while booking the cargo?

Answer: This includes the following

✓ The accuracy of weights and descriptions;

✓ The hazardous nature of the cargo;
✓ The correct handling instruction.

E-booking systems place the principal responsibility for ensuring bill of lading (B/L) accuracy on shippers
from whom the cargo originates. In the interests of safety, security and the efficient movement of cargo,
the use of such e-booking systems is strongly recommended.
11. What is the responsibility of the Shipper?

Answer: Shippers duties include the following;

✓ To write shipping instructions (SI) clearly and legibly, so as to make them easy to read by
shipping company personnel;
✓ Clearly indicate container sizes and types;
✓ Always accurately describe the cargo dimensions and the extent of over-size cargo;
✓ Stow packages to prevent free movement and the toppling of goods and packages;

12.Who are the key players involved in Multi modal transport

Answer :Besides Shipper, Consignee and the Multi modal transport operator the other players are asf;

aa) Shipping Line

bb) Road hauliers

cc) Railways

dd) Terminal Operators

ee) Warehousing

ff) Stevedores

gg) Freight forwarders

13.What is the key difference between bulk and container trade?

Answer: Bulk and commodity trade is primarily based on port to port concept i.e. loading in port A and
delivering the cargo in Port B .Whereas the container trade is based on door to door concept i.e. receiving
delivery at the point of manufacturing and delivering the cargo at the point of consumption .The
responsibility of the multi modal transport operator commences at the time when the container is handed
over the MTO and continues until the container is delivered safely to the consignee .Also in terms of
investment and planning container trade is developed keeping long term business interests in mind.

14.What are the control measures in containerised trade to avoid cargo thefts and pilferage?

Answer: The key control measures put in place to avoid cargo thefts and or losses are asf:

aa) Security at the cargo terminal and warehouses

bb) Securing the container with metallic/plastic seal with a designated number .The seal number is
endorsed on the Multi modal transport document.