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SEIB OF GDUFS Chapter Five Cargo Transportation Learning objectives After reading this chapter you should be able to 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 importance of ocean bill of lading and its different types describe a range of other transportation documents stipulate delivery clause in a sales contract 5.1 Ocean Transportation Liner transportation Charter transportation 5.1.1 Liner transportation Liner: definition a vessel with regular sailings and arrivals sailing on a fixed (regular) sailing route calling at fixed (regular) base ports adopting a comparatively fixed timetable charges at comparatively fixed freight rates freight inclusive of loading unloading cost Liner: types conference liners non-conference liners 5.1.1 Liner transportation Liner Freight = basic freight + surcharges and additional Calculation formula of liner freight Total Freight = Total Quantity x Basic Freight Rate x (1+Surcharge / Additional Rates) Basic Freight Rate = freight rate basis x freight rate 5.1.1 Liner transportation 5.1.1 Liner transportation Surcharges Bunker Surcharge (bunker adjustment factor/BAF) Currency Surcharge (currency adjustment factor/CAF) Port Congestion Surcharge Transshipment Surcharge Port Surcharge … 5.1.1 Liner transportation Additional Heavy lift additional e.g. for cargo over 5 MT per unit Lengthy cargo additional e.g. for cargo over 9m per unit Bulky cargo additional e.g. for cargo over 6cbm per unit … 5.1.1 Liner transportation Freight calculation: Illustration Suppose: Company A exports 1000 cases of Commodity Y to London. The volume per case is 40cm x 30cm x 20cm, and the gross weight is 30kg per case. For Commodity Y, the freight rate basis is W/M, and the Freight Tariff (China —London) is U
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