International Multimodal Transport

I- General

II- Multimodal transport (MT) regulations

III- Process of carrying goods in MT

IV- Apply MT to ASEAN and Vietnam

1- Concepts

- Multimodal transport :

International multimodal transportInternational multimodal transport of UN of UN Convention 1980: Convention 1980:

“ “The carriage of goods by at least two The carriage of goods by at least two different modes of transport on the basis of different modes of transport on the basis of a multimodal transport contract from a place a multimodal transport contract from a place in one country at which the goods are taken in one country at which the goods are taken in charge by the multimodal transport in charge by the multimodal transport operator to a place designated for delivery operator to a place designated for delivery in a different country” in a different country”

- MTO (multimodal transport operator)MTO (multimodal transport operator)

- MT documentMT document

- Objectives of MT: time, cost, procedureObjectives of MT: time, cost, procedure

I- GeneralI- General

2- MT: history2- MT: history

- MT: not new, it’s the mergence of MT: not new, it’s the mergence of transport modes add with applying transport modes add with applying new technology of goods new technology of goods ««unitizationunitization»»

Sea Transport

LandbridgeBy sea : Kobe-

SeattleBy train : Seattle-

NewYorkBy sea: NewYork-

Amsterdam

Combined Sea-Air transport

By sea : Kobe-Seattle

By air: Seattle-NewYork-

Amsterdam

Air TransportChartered flight via

Hongkong

Air TransportScheduled Airline

(IATA)

0

5000

10000

15000

20000

0 5 10 15 20 25 30

Time

Cost

I- General

2- MT: history- Associating with container revolution

basic for MT’development

- Malcom Mclean – director of Sealand Service Inc. (American)

I- General

2- MT: history

- The development of container maked the impetus for the MT, a lot of lines have been containerized

3- MT in all over the world3- MT in all over the world

3.1- North American (NA)3.1- North American (NA)- There’re 4 lines: NA-Europe; NA-Asia; There’re 4 lines: NA-Europe; NA-Asia;

Caribbean islands-America; Great Caribbean islands-America; Great Lakes-CanadaLakes-Canada

- MT means lengthen seaway line (>500 - MT means lengthen seaway line (>500 miles compared with waterway)miles compared with waterway)

- All large maritime transport companies All large maritime transport companies (APL) hold shares in rail sector, invest (APL) hold shares in rail sector, invest largely in seaport, rail and terminal largely in seaport, rail and terminal system inland (Chicago, Minneapolis, system inland (Chicago, Minneapolis, Salt Lake)Salt Lake)

- Key success: using Key success: using landbridgelandbridge and and double stack train.double stack train.

I- General

3.1- North America- Canada: CN (canadian nation) and CP

(canadian pacific) - CN and CP

3- MT in all over the world

3.2- Europe- The distance between seaport and inland

place is short (auto); - From the end of 1960, MT inherited

achievements of railway container transport (Intercontainer, UIRR)

- MT have many kinds of road container; there have been many different forms of MT in the sustainable development strategy

- Siberia Railway (landbridge): started being exploited in 1973, stopped in the end of 1980 and has turned back recently.

3- MT in all over the world

3.3- Asia- Development later than in America and Europe

but rather quickly with entrep«ts seaport: Hongkong, Singapore,…

- Japan and China strongly apply: the sea lines from Janpan to Russian coast, railway system to European countries. China have the management system through SINOTRANS (join venture with DHL, UPS, FEDEX, COSCO…)

- ASEAN: trans-asia way, law, training

I- GeneralI- General

4- Key elements of MT’s forming and development

4.1- The development of transport technology

- Containerization (unitization)- Progress in transport technology- Informatic technology: EDI, transport

cost, time

I- General

4.2- container revolution: - Transhipment more easily, reduce

transport’s time- It’s required that container must be

released quickly at tranship points – combining the modes in system

- Container is transformed to be suitable for tranportation by different modes

- With respect to goods in container, difficult to specify the place where loss occured and the person who will be responsible for the problem

I- General

4.3 - The need of perfecting PD, logistics- What is PD and logistics?- Transport cost in this process? solution: MT through Hub system

(figure)

D

A

B C

I- General

4.4 - World trade’s development

- International commercial relations – international transport

- The demand of transport goods in all over the world

I- General

5- Effective of MT- The only clue (through MTO)- Delivery’ time- Cost- Simplify documents and procedure- Using vehicles well- New transport service

However, to invest largely in infrastructure!!!

II- MT regulationsII- MT regulations

1- The customs’conventions1- The customs’conventions- Important role of customs for Important role of customs for

MT’development MT’development - Related conventions: Related conventions:

+ conventions relating to transit of + conventions relating to transit of landlockedlandlocked countries countries+ conventions relating to + conventions relating to international transport goods via international transport goods via TIR systemTIR system+ conventions concerning + conventions concerning international transport (has not international transport (has not been valid yet)been valid yet)

II- MT regulations

+ Customs’Convention relating to container transport+ International convention for simplifying and harmonising the systems relating to customs’ procedure (Kyoto Convention)

II- MT regulationsII- MT regulations

2 - Conventions relating directly to MT 2 - Conventions relating directly to MT - No international convention which is validNo international convention which is valid- UN Convention with regard to international MT UN Convention with regard to international MT

1980, the number of countries which approved 1980, the number of countries which approved hasn’t been enough (10)hasn’t been enough (10)

- The rule with regard to MT documents of The rule with regard to MT documents of UNCTAD/ICC 1992 is applied freelyUNCTAD/ICC 1992 is applied freely

3 - Conventions adjusting other modes of transport3 - Conventions adjusting other modes of transport- Conventions adjusting BL and seaway transport: Conventions adjusting BL and seaway transport:

Hague, Hague-Visby, HamburgHague, Hague-Visby, Hamburg- CMR, clause 2: apply for road-sea, road-railCMR, clause 2: apply for road-sea, road-rail- CIM/COTIF, clause 1CIM/COTIF, clause 1- Warsaw Convention , clause 31 Warsaw Convention , clause 31

III- Process of carrying goods by MTIII- Process of carrying goods by MT

1.1. MT chainMT chain

2.2. Combinations for MTCombinations for MT

3.3. Documents in MTDocuments in MT

4.4. MTOMTO

5.5. MTO’s responsibilitiesMTO’s responsibilities

6.6. Complain to MTOComplain to MTO

1- MT chain- A lot of people concerning in this chain:

shipper; carrier; forwarder; agent; warehouse…

- The elements of this chain: goods’ units (container, pallet, swap-bodies, EILU,…), modes of transport

5 6 7 8

9 10 12 1 2 3 4 seller Cargo

terminal

c usto ms c usto ms Cargo

terminal

11 buyer

International goods transport chain

2- Combinations of MT (figure)2.1- Combination with air transport- air-sea transport: take full advantage of

speediness of air transport and cheap carriage of sea transport (optimize sea transport in short lines, eg: Vietnam –Hongkong- America); Air Canada – the first firm which operated such voyage from Japan – Europe to Vancouver

Hub air-sea: Hongkong, Singapore, Dubai, Seatle, Los-Angeles

- Air-road transport: pick-up service- Air-rail transport: developed countries which

have systems of railway connecting with airport

2.2- Landbridge (mini-bridge, micro-bridge)- One of the most profound development of

integrating modes of transportWhat is a landbridge transport?

It’s transport inland (by railway) which ought to have been carried out on sea and railway play the part of landbridge

- Effect: shorten the stretch and reduce the time of transport

- 2 great landbridges of the world: trans-Siberia and trans-America railway

2.2- Landbridge (mini-bridge, micro-2.2- Landbridge (mini-bridge, micro-bridge)bridge)

• Trans-siberia lanbridgeTrans-siberia lanbridge

• Landbridge of AmericaLandbridge of America

• Trans-siberia: connect Europe-Asia but not through Suez (26.000km-21.000km-13.000km; 60 days-40days, 1987), has developed just from 1970, carried container connecting Parcific-Atlantuc, Baltic, there’re various modes of combination: sea-rail-road ; sea-rail-sea ; sea-rail-air-road (British Euro Container Transport Inc. applied in 1983: Japan-Siberia-Luxembourg-destination in Europe: door-door 15 days)

• Landbridge of America: the most effective one of the world (Singapore-NY: 36 days via Panama channel, 19 days via Seatle-NY; Yokohama-Rotterdam: 23.200km-20.240km), including landbridge passing Canada (MontrÐal, Vancouver, Halifax) and Mexico (Salina Cruz-Coatzacoalos)

Landbridge (mini-bridge, micro-bridge)

Landbridge (mini-bridge, micro-bridge)

2- Combinations of MT

2.3- Piggy-back- Apply a lot in Europe, America:

trailer, swap-body,- Combination: security of railway +

flexibility of road transport

2- Combinations of MT

2.4- inland waterway-sea- System of LASH, BACAT, BACO,…- Interlighter has LASH arrived in

Vietnam (1980)- there has been LASH from

Mississipi or Western Europe

3. MT documents"MT contract“: a contract whereby a MTO undertakes,

against payment of freight, to perform or to procure the performance of international MT.

"MT document“: a document which evidences a MT contract, the taking in charge of the goods by the MTO, and an undertaking by him to deliver the goods in accordance with the terms of that contract.

• MT document which, at the option of the consignor, shall be in either negotiable or non-negotiable form.

• The MT document shall be signed by the MTO or by a person having authority from him.

• The signature on the MT document: in handwriting, printed in facsimile, perforated, stamped, in symbols, or made by any other mechanical or electronic means

3. MT documents

They can be negotiable or non-negotiable, can be issued in the EDI form

3. MT documents

- Negotiable MT document:

+ must be issued to order or to bearer

+note clearly the amount of original copy in the document

- Non-negotiable document: straight document to a named person

3. MT documents

- Content: the same with B/L, 2 sides+general nature of cargo, marking…+outside situation of cargo

+name and business address of MTO

+name of shipper, consignee (if any)+place of receipt and delivery

+indicate clearly if the MT is negotiable or non-negotiable

+date anf place of issuie

+MTO or his representative’s signature

+carriage per mode of transport

+voyage schedule…

+…

3. MT documents

- Types of document: +FBL (FIATA); +COMBIDOC (BIMCO, used by VO-

MTO);+MULTIDOC (UN); +B/L for combined transport or port

to port shipment

4- MTO MTO: any person who on his own behalf or through

another person acting on his behalf concludes a multimodal transport contract and who acts as a principal, not as an agent or on behalf of the consignor or of the carriers participating in the multimodal transport operations, and who assumes responsibility for the performance of the contract.

4- MTO

4.1- VO-MTO (vessel operator MTO)- Own vessels, extend activities door-to-

door service- This type of MTO: not popular because

of large investment to ships

4- MTO

4.2- NVO-MTO- Carrier who convey by other means

(they are usually auto, rarely airplane or train) or other services also trade in door-to-door transport service

- There’re 2 types: trade in services such as forwarding, agency,… and extend activities; they are real MTO who specialize in MT

4.3 – Criteria to become a MTO- Financial ability: enough to

compensate for damage- Professional ability: basic professional

knowledge- International system of agencies

and branches

5- MTO’s responsibilitiesThere’s 2 systems of responsibilities:

- Network liability system: voyage with several stages, there’s a fixed rule in each one- Uniform liability system: using only one system of liability throughout the voyage

Pursuant to the Convention and Rules of UNCTAD/ICC1992, the uniform liability system is applied

5.1- The basis of liability• MTO: liable for loss resulting from loss or damage to

the goods, as well as from 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 he, his servants or agents or any other person referred took all measures that could reasonably be required to avoid the occurrence and its consequences.

• Delay in delivery: when the goods have not been delivered within the time expressly agreed upon or, in the absence of such agreement, within the time which it would be reasonable to require of a diligent MTO, having regard to the circumstances of the case.

5.1- The basis of liability • If the goods have not been delivered within 90

consecutive days following the date of delivery determined: the claimant may treat the goods as lost.

- Delay in delivery: 90 consecutive days following the date of delivery determined

- Arcording to the Rules, there’re some exemption from liability: act, neglect or default of the master, mariner, pilot, or the servants of the carrier in the navigation or in the management of the ship; Fire, unless caused by the actual fault or privity of the carrier

5.2- Period of responsibility

The responsibility of the multimodal transport operator for the goods under this Convention covers the period from the time he takes the goods in his charge to the time of their delivery.

Define what receive and delivery is?

5.3- Limitation of liability5.3.1- UN Convention:

920 SDR/package

2.75 SDR/kg

Number of package where a container, pallet or similar article of transport is used to consolidate goods?

- No sea and waterway: 8.33 SDR/kg - Delay: 2.5 times the freight payable for the

goods delayed, but not exceeding the total freight payable under the MT contract

5.3.2- Arcording to UNCTAD/ICC Rules 1992 :

• 2 SDR/kg

• 666.67 SDR/package or unit of cargo

• 8.33 SDR/kg if no carriage by sea/water

6. Claim to MTO6. Claim to MTO

6.1. UN Convention:6.1. UN Convention:Unless notice of loss or damage, specifying the Unless notice of loss or damage, specifying the

general nature of such loss or damage, is given general nature of such loss or damage, is given in writing by the consignee to the MTO not later in writing by the consignee to the MTO not later than the working day after the day when the than the working day after the day when the goods were handed over to the consignee, such goods were handed over to the consignee, such handing over is prima facie evidence of the handing over is prima facie evidence of the delivery by the MTO of the goods as described delivery by the MTO of the goods as described in the MT document.in the MT document.

6.1. UN Convention:• Where the loss or damage is not apparent,

notice in writing: 6 consecutive days • If the state of the goods at the time they were

handed over to the consignee has been the subject of a joint survey or inspection by the parties or their authorised representatives at the place of delivery: no notice in writing

6.1. UN Convention:• No compensation: unless notice has been given

in writing to the MTO within 60 consecutive days

• Time bar: 2 years and it may be extended

6.2. UNCTAD/ICC Rules:Unless notice of loss or damage, specifying the

general nature of such loss or damage, is given in writing by the consignee to the MTO, such handing over is prima facie evidence of the delivery by the MTO of the goods as described in the MT document.

6.2. UNCTAD/ICC Rules • Where the loss or damage is not apparent,

notice in writing has to be given within 6 consecutive days after the day when the goods were handed over to the consignee.

- Time bar: 9 months