International Transports

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INTERNATIONAL TRANSPORTS Ph.D Lecturer Georgiana Surdu [email protected]

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Transcript of International Transports

INTERNATIONAL TRANSPORTS

Ph.D Lecturer Georgiana Surdu

[email protected]

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.