1 / 29

International Transportation

International Transportation. NAFTA. North American Free Trade Agreement Ratified by Congress in 1994 Trade agreement between Mexico, Canada, & the United States Purposes Unimpeded flow of goods Most-favored-nation (MNF) status Enhancement of cross-border movement of goods & services.

amora
Download Presentation

International Transportation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. International Transportation

  2. NAFTA • North American Free Trade Agreement • Ratified by Congress in 1994 • Trade agreement between Mexico, Canada, & the United States • Purposes • Unimpeded flow of goods • Most-favored-nation (MNF) status • Enhancement of cross-border movement of goods & services

  3. Issues with Mexico • Original agreement allowed U.S. or Mexican based carriers to either pick or deliver (but not both) in each country’s border states with their own equipment & personnel • Mexican regulations still do not allow US-owned trailers to operate more than 12.5 from the border without a specially-issued permit • US firm must post a bond for each trailer & bond fees are not refundable • Permit is good for only 30 days • Only good for one entrance & one exit for that trailer during life of permit

  4. Issues with Mexico • Most US carriers employ a standard 53 ft. trailer • Although Mexican regulations allow 53 ft. trailers, overall combination tractor & trailer length is limited to 68 ft. • This only allows the use of 15 ft. tractors

  5. INCOTERMS • International terms of sale • Developed by the International Chamber of Commerce • Define responsibilities of buyer & seller in any international contract of sale • 13 different INCOTERMS

  6. INCOTERMS Cost Obligations

  7. E Terms • Only E Term is Ex Works • Departure contract that gives buyer total responsibility for the shipment • Seller only has to make shipment available at its facility • Buyer agrees to take possession at the point of origin • Buyer bears all the costs & risks of transporting the goods to their destination

  8. F Terms • 3 F INCOTERMS • Obligate seller to incur cost of delivering shipment cleared for export to carrier designated by buyer • Buyer selects & incurs cost of main transportation, insurance, & customs clearance

  9. F Terms • Free Carrier (FCA) • Used with any transportation mode • Buyer assumes risk of damage once seller delivers goods to carrier designated by the buyer • Free Alongside Ship (FAS) • Only used in water transportation • Damage risk transfers when goods delivered on the dock • Buyer pays lifting (loading) costs • Free On Board (FOB) • Only used in water transportation • Damage risk transfers when goods cross the ship’s rail • Seller pays lifting costs

  10. C Terms • 4 C INCOTERMS • Obligate seller to obtain and pay for the main carriage and/or cargo insurance • Cost and Freight (CFR) • Seller selects and pays for main carriage • Seller incurs all costs to port of destination • Buyer assumes damage risk once goods pass the ship’s rail • Only used for water shipments • Carriage Paid To (CPT) • Seller selects and pays for main carriage • Seller incurs all costs to port of destination • Buyer assumes damage risk once goods delivered to main carrier • Only for any transportation mode

  11. C Terms • Cost, Insurance, Freight (CIF) • Requires seller to pay for both main carriage & cargo insurance • Damage risk same as CFR • Carriage and Insurance Paid To (CIP) • Requires seller to pay for both main carriage & cargo insurance • Damage risk same as CPT

  12. D Terms • Obligate seller to incur all costs related to delivery to a foreign destination • Seller incurs all costs & risks of damage to destination port. • Delivered At Frontier (DAF) • Seller covers transportation costs to the frontier (borders) of the destination country. • Seller assumes risk of damage to this frontier • Buyer responsible for customs duties and inland transportation • Used with all transportation modes

  13. D Terms • Delivered Ex Ship (DES) • Seller pays for main carriage • Risk of damage transferred on board ship just prior to import clearance • Buyer responsible for customs clearance & inland transportation • Only used in water transportation

  14. D Terms • Delivered Ex Quay (or wharf) (DEQ) • Seller pays for main carriage • Risk of damage transferred on quay once goods have cleared customs • Buyer responsible for inland transportation • Only used in water transportation

  15. D Terms • Delivered Duty Unpaid (DDU) • Seller covers all costs to destination except customs duties and inland transportation • Risk of damage transfers at named destination (duties unpaid) • Used with all modes of transportation

  16. D Terms • Delivered Duty Paid (DDP) • Seller covers all costs to destination except inland transportation • Risk of damage transfers at named destination (duties paid) • Used with all modes of transportation

  17. Documentation • Export License • No special authority necessary to export • President can control exports for national security, foreign policy, or for items in short supply • Federal agency may require export license for commodities over which it may have jurisdiction • Types of Licenses • Issued by Department of Commerce • Validated Export License • Required for commodities and/or destinations deemed important to national security, foreign policy, or for items in short supply • General Export License • Used in all instances when validated license not required • No actual license is issued

  18. Documentation • Sales Documents • Pro-forma invoice • Issued by seller • Provides shipment details to importer & import government authorities • Commercial invoice • Issued by seller • Serves as bill of sale • Serves as basis for determining shipment value & import duties • Required for customs clearance • Consular invoice • Same as commercial except prescribed by importing country and must be in language of the importing country

  19. Documentation • Financial Documents • Letter of Credit • Issued by buyer’s bank • Guarantee by the bank to seller that payment will be made if certain terms & conditions are met • Documentation provided, shipment dates, time limits, etc. • Draft • Credit extended by seller, not the buyer’s bank • Written order for money to be paid by buyer on certain date • Draft is presented to buyer’s bank, bank collects money from buyer, bank releases documentation necessary for buyer to receive shipment, payment is remitted to seller

  20. Documentation • Customs Documents • Export Declaration • Issued by seller • Controls export of restricted goods • Used to provide statistics regarding export activity • Certificate of Origin • Issued by buyer • Certifies the country in which the commodities were produced • Necessary when countries have special import duty treaties

  21. Documentation • Transportation Documents • Bill of Lading • Contract for carriage • Receipt for goods • Provides delivery instructions to carrier • Water: ocean bill of lading • Air: airway bill • Packing lists • Detailed information about package contents, dimensions, and weight • Dock receipt • Used by water carriers • Transfers accountability from domestic carrier to international carrier prior to loading on the ship (I.e., while goods are still on the quay).

  22. International Transportation Providers:Ocean Transportation • Liners • Ply fixed routes on published schedules • Charge according to published tariffs • Goods moved to liner’s terminal • Types of Liner Services • Break-bulk services • Freight is not containerized and must be loaded by machine • May take days to load & unload the vessel • Container services • Freight packed in standard containers & is loaded by crane • Typically takes less than 12 hours for container vessel to enter port, unload, load, and clear the port • Typical container ship can carry about 1000 containers • Must be support by 1500 to 2500 containers

  23. International Transportation Providers:Ocean Transportation • Liners • Types of Liners • Container Vessels • Lighter-Aboard Ship (LASH) • Liner carries barges that were loaded at inland river port and moved to ocean port via water tow. • LASH carries the barges with their loads intact to destination port • Roll-on/Roll-off Ship (RORO) • Transport trucks, trailers, & construction equipment • In essence, the freight is rolled-on & -off the vessel, rather than lifted over the vessel’s rail

  24. International Transportation Providers:Ocean Transportation • Tramp Ships • Hired like a taxi or leased auto • Hired on a voyage or time basis • Tramps do not run regular routes on published schedules like liners • Private Vessels • Ships owned/leased on long-term basis by firm moving the goods • Enjoy much the same economies as private motor carriers

  25. International Transportation Providers:Ocean Transportation • Ship Registry • Vessels may be “flagged” or registered in the ship owner’s domestic nation, or in another nation • Vessel is taxed, manned, and operated under the rules & regulations of the nation under which it is flagged • Flags of Convenience • Nations that “flag” foreign-owned vessels • Most common are Liberia and Panama

  26. International Transportation Providers:Air Transportation • Air Parcel Post • Provided by the postal service of a country • Designed to handle small packages • Air carrier hired to pick up and deliver parcel items from one country to another • Each nation sets its own limits on size & weight • US restrictions are 108 inches in length & girth; no more than 70 lbs of weight

  27. International Transportation Providers:Ancillary Services • Air Freight Forwarders • Book space on air carrier’s plan • Solicits freight from shippers to fill booked space • International Freight Forwarders • Arrange movements for shippers • Represent shipper in arranging various activities • Inland transportation, packaging, documentation, booking, legal fees • Do not serve as freight consolidators

  28. International Transportation Providers:Ancillary Services • Nonvessel Operating Common Carriers (NVOCC) • Assemble/disperse less-than-container shipments • Move them as full-container shipments • Ship Brokers • Acts as intermediaries between tramp ship owners and chartering shippers or receivers • Ship Agents • Represent liner or tramps in facilitating ship arrival, clearance, un/loading, fee payment at specific ports • Used when not economical to maintain permanent agent in particular ports

  29. International Transportation Providers:Ancillary Services • Land Bridges • System of containers moving between Japan and Europe by rail and ship • Mini-Bridges • System of containers moving on specified route between US port locations (I.e., Seattle to New York) • Micro-Bridges • Essentially the same as mini-bridges, but routes are between port and non-port cities (I.e., New Orleans to Kansas City)

More Related