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Zhou Ruiqi Chapter Five Cargo Transportation LEARNING OUTCOMES  Understand the importance of ocean transportation and how liner freight is obtained Know other modes of transportation in terms of their features, suitability and freight calculation Be aware of the important of ocean bill of lading and its different types Describe a range of other: transportation documents stipulate delivery clause in a sales contract Modes of transportation Ocean Transportation Air Transportation Rail Transportation Road Transportation Container Transportation International Multimode Transportation (IMT) / International Combined Transportation (ICT) Parcel Post Transportation Inland Waterway Transportation Pipeline Transportation 5.1 Ocean Transportation Advantages Large capacity Low cost Easy passage: not restricted by road or rails Disadvantages Slow Vulnerable to bad weather Less punctual Types of ocean transportation Liner transportation Charter transportation 98% of world trade in volume terms conveyed by sea transport 5.1.1 Liner transportation Characteristics of Liner regular scheduled departures specified route routes with fixed base ports comparatively fixed freight rates 5.1.1 Liner transportation Types of liners Conference liners Freight rate quoted by shipping conference Stable freight rates Regular services Non-conference liners Freight rate quoted by independent carriers or vessel operators Less dependable service High flexibility 5.1.1 Liner transportation Liner Freight Inclusive of the loading and unloading cost Inclusive of other costs such as demurrage or dispatch money Composition of liner freight Basic freight Surcharges and additionals Calculation formula of liner freight Total Freight = Total Quantity x Basic Rate x (1+Surcharge / Additional Rates) 5.1.1 Liner transportation Criteria for calculating basic freight W (weight ton) – calculated per metric ton on weight, suitable for heavy goods M (measurement ton)– calculated per cubic meter on