Multimodal Transport: Prof. Ashok Advani - Visiting Faculty: IIFT & Jaipuria Institute of Management, Noida

1
Multimodal Transport
Prof. Ashok Advani - Visiting Faculty : IIFT & Jaipuria Institute of Management, Noida
2
Unimodal – Intermodal - Multimodal
3 Multimodal Transport
Transport Modes
4
Prof. Ashok Advani - Visiting Faculty : IIFT & Jaipuria Institute Of Management, Noida
Bhiwadi Sasolburg
[FF]
W/H City Deep
[ICD] Terminal -
[Johannesburg]
[TKD]
Prof. Ashok Adv ani - Visiting Faculty : IIFT & Jaipuria Institute of Management, Noida
Nhava Sheva Durban

Intermodal
 It is the movement of cargo from origin to destination by several modes of

transport
 Each of the modes have a different transport provider or entity responsible
 Each contract is independent
 Multiple carriers during a single journey
Intermodal
Example
ICD TKD – Bhiwadi – ICD TKD – Nhava Sheva – Durban – City Deep Terminal -
(Johannesburg) - Sasolburg
Operation an Intermodal operation as involves several contracts
 Between Seller or Buyer and Transport service provider for road movement from ICD
TKD to Bhiwadi (empty) & Bhiwadi to ICD TKD (loaded)
 Between Seller or Buyer and Carrier for sea movement from Nhava Sheva to Durban
 Between Seller or Buyer and Transport service provider(s) for rail/road movement from
Durban to Sasolburg
Intermodal
Example
Operation an Intermodal operation as involves several contracts
 The costs/risks for such contracts will of course depend on the Incoterms® used for
this trade
 The carrier issues a port to port Bill of Lading
Multimodal
 It is the movement of cargo from origin to destination by several modes of transport
 Each of these modes have a different transport provider or entity responsible
 Governed under a single contract
 Single carrier during a single journey
10
Multimodal
Example
Operation a Multimodal operation as involves single contract
 Here, neither the seller nor the buyer are arranging any contracts other than their
contract of carriage with the carrier
 The costs/risks for such contracts will of course depend on the Incoterms® used for this
trade
 In this case, the carrier issues a Combined Transport Bill of Lading or a

Multimodal Bill of Lading
Ground Rent – Demurrage - Detention Charges
12
Pre-carriage – Carriage – On-carriage
Important Shipping Terminologies
13
Pre-carriage
 It is the term given to any inland movement that takes place prior to the container being
loaded at a port of loading
 Such activity can take place at the same location as the port of loading, or at a location
far from the port of loading
Example :
Empty container is released at ICD TKD, Delhi and moved to Bhiwadi for packing and then
moved by road back to ICD TKD and there after by rail to Nhava Sheva or Mundra port
Empty container is released at ICD TKD, Delhi and moved to Bhiwadi for packing and then
moved by road to Nhava Sheva or Mundra port
14
Carriage
 It is the term given to the actual movement of the cargo on sea from the port of loading
to the port of discharge
Example
When the container is moved from Nhava Sheva to say Durban by sea. This activity is
known as CARRIAGE
 This activity can be performed only by the shipping line/vessel operator who is
undertaking to carry the cargo from point A to point B and the bill of lading issued by the
ship owner/shipping line is the evidence of the contract of such carriage
15
On-carriage
It is the term given to any inland movement that takes place after the container is
discharged at a port of discharge. Such activity can take place at the same location as the
port of discharge, or at a location close or far from the port of discharge
Example
Full container is discharged at Durban and then moved by road / rail to Johannesburg City
Deep terminal and then further moved by road to Sasolburg for unpacking. This activity is
known as ON-CARRIAGE
Carrier Haulage vs. Merchant Haulage
16
Merchant Haulage & Carrier Haulage
17
Carrier Haulage
Merchant Haulage
18
Carrier Haulage
 If the activity is performed by the shipping line on behalf of the client, it is called
Carrier Haulage
 In such cases, normally the bill of lading shows place of origin as Bhiwadi (pre-carriage)
 In this case, normally the bill of lading shows final destination as City Deep Terminal
(Johannesburg) or Sasolburg (on-carriage)
 Applicable for both pre-carriage & on-carriage
 Applicable for both Exports & Imports
19
Merchant Haulage
 If the activity is performed by the client or their forwarder / transporter on their behalf,
it is called Merchant Haulage
 Above activity can be performed using rail or road transport
 In such cases, normally the bill of lading shows place of origin as ICD TKD (pre-carriage)
 In this case, normally the bill of lading shows final destination as Durban as on-carriage
is performed by the merchant
 Applicable for both pre-carriage & on-carriage
 Applicable for both Exports & Imports
IHC – THC
20
21
Inland Haulage Charge (IHC)
 Transportation charges from ICD / CFS to sea port of loading or vice versa
 If cargo , after custom clearance, moved by rail from ICD/CFS to the port or vice-versa,
the charge is known as Inland Haulage Charge
 Inland haulage charges vary ICD/CFS to ICD/CFS, as the distance from ICD/CFS to port
of loading varies
 IHC – collected by shipping line when releasing Bill of lading for export shipments, and
when issuing Delivery Order in case of import
 IHC does not apply if Exporter pays for the Rail Freight directly to the terminal
authorities (where such rail heads exist)
22
Terminal Handling Charge (THC)
 Charges collected by terminal authorities at each port against handling of containers /

cargo & equipment maintenance
 THC varies from Port to Port
 Charge collected from the exporter by the S/Line at the time of release of B/L
 Similarly, Import THC is collected by the S/Line when issuing Delivery Order
to Consignee
 THC is a part of IHC collected by S/Line & not vice-versa
23
Terminal handling charge (THC)
 Levied by CY and CFS operators for goods passing through their depots
 THC are additional costs, on top of the sea freight, charged by the shipping company
for the handling of containers at the container terminal before being loaded onboard a
vessel
 Example : A typical port handling for a railed container
 Above for FCL (Full Container Load) shipments
 For LCL shipments, THC worked on pro-rata basis
 Charged per TEU / FEU [FCL’s] and per W/M [LCL’s]
24
Terminal Handling Charge (THC) : Exports
POL Service Type THC / L [INR] THC / L [INR]
20’ 40’ / 40’ HQ

JNPCT CY/Factory 7,290 11,555
Mundra CY/Factory 9,295 12,220
Pipavav CY/Factory 7,795 11,620
Maersk – Exports
Applicable to DV containers
Source: http://www.Maersk.com
Effective: 1.7.2019
Updated: 1.12.2019
Inland Haulage Charge (IHC)
25
Cargo Gross IHC Cargo Gross IHC
Weight (M.T.) 20’ Weight (M.T.) 40’ / 40’ HC
[INR] [INR]
Up to 7.8 33,600 Up to 16.1 67,000
7.8 – 17.8 36,900 16.1 – 26.1 70,500
17.8 – 23.8 42,500 Over 26.1 70,500
23.8 – 27.8 48,100
Over 27.8 67,000

• Pipavav – Dadri [Imports]
• Source: www.Maersk.com/local-information/india/import
• Updated: 1.12.2019
Basic Terms
FCL – FCL
FCL – LCL
26 LCL – FCL
LCL - LCL
27
FCL - FCL
 FCL – Denotes “Full Container Load”

 Single Shipper / Single Consignee
Operations
 Receipt of customer’s cargo by carrier duly custom cleared

 Issuance of Bill of Lading (Master or House) to Shipper
 Ocean shipment
 Delivery at destination as FCL to consignee (CY or ICD or Door)
28
FCL - LCL

 LCL – Denotes “Less than Container Load”
 Single Shipper / Multiple Consignees
Operations
 Receipt of customer’s cargo at Forwarders warehouse or the origin Container Freight

Station (CFS)
 Consolidation of cargoes for multiple consignee’s

 Issuance of multiple house bills of lading to Shipper for each vendor
 Ocean shipment
 Deconsolidation at destination CFS & delivery at destination as LCL to consignee’s
29
LCL - FCL

 Multiple Shippers / Single Consignee
Operations
 Receipt of customer’s cargo at Forwarders warehouse or the origin Container Freight

Station (CFS)
 Consolidation of consignee’s cargo with cargo from other exporters / vendors

 Issuance of house bill of lading to each vendor
 Ocean shipment
 Delivery at destination as FCL to consignee
30
LCL - LCL

 LCL – Manufacture & ship out (Do not have to wait for a FCL load)
 Multiple Shippers / Multiple Consignees
Operations
 Receipt of customer’s cargo at the origin Container Freight Station (CFS)
 Consolidation of customer’s cargo with cargo from similarly situated merchants
 Issuance of house bill of lading
 Ocean shipment
 Deconsolidation at destination CFS and release to consignee
Difference between LCL & Consolidation?
31
32 Multimodal Transport Act : 1993
MTOGA [1993]
 THE MULTIMODAL TRANSPORTATION OF GOODS ACT, 1993 (No. 28 OF 1993)

[2nd April, 1993]
 An Act to provide for the regulation of the multimodal transportation of goods, from any
place in India to a place outside India, on the basis of a multimodal transport contract
and for matters connected therewith or incidental thereto
Definition : Multimodal Transportation
“Multimodal Transportation” means carriage of goods, by at least two different modes

of transport under a multimodal transport contract, from the place of acceptance of the
goods in India to a place of delivery of the goods outside India
Definition : Multimodal Transport Contract
“Multimodal Transport Contract ” means a contract under which a multimodal transport

operator undertakes to perform or procure the performance of multimodal transportation
against payment of freight
Definition : Multimodal Transport Document
“Multimodal Transport Document” means a negotiable or non-negotiable document

evidencing a multimodal transport contract and which can be replaced by electronic data
interchange messages permitted by applicable law
Definition : Multimodal Transport Operator
“Multimodal Transport Operator” means any person who:
(i) concludes a multimodal transport contract on his own behalf or through another person
acting on his behalf
(ii) acts as principal, and not as an agent either of the consignor, or consignee or of
the carrier participating in the multimodal transportation, and who assumes
responsibility for the performance of the said contract; and
(iii) is registered under sub-section (3) of section 4
No person to carry on business without registration
No person shall carry on or commence the business of Multimodal transportation unless he is

registered under this Act
Provided that a person carrying on the business of multimodal transportation immediately

before the commencement of this Act, may continue to do so for a period of three months from
such commencement; and if he has made an application for registration within the said period,
till the disposal of such application
Issue of Multimodal Transport Document
Where the consignor and the multimodal transport operator have entered into a contract for
the multimodal transportation and the multimodal transport operator has taken charge of the
goods, he shall, at the option of the consignor, issue a negotiable or non-negotiable
multimodal transport document
Provided that the multimodal transport operator shall issue the multimodal transport
document only after obtaining, and during the subsistence of a valid insurance cover
The multimodal transport document shall be signed by the multimodal transport operator or by
a person duly authorised by him
..\MTO Registration\MTO Document.pdf
Basis of liability of Multimodal Transport Operator
(1) The multimodal transport operator shall be liable for loss resulting from:
(a) any loss of, or damage to the consignment
(b) delay in delivery of the consignment and any consequential loss or damage arising from
such delay
where such loss, damage or delay in delivery took place while the consignment was in his
charge;
Provided that the multimodal transport operator shall not be liable if he proves that no fault or
neglect on his part or that of his servants or agents had caused or contributed to such loss,
damage or delay in delivery:
Basis of liability of Multimodal Transport Operator
Provided further that the multimodal transport operator shall not be Liable for loss or
damage arising out of delay in delivery including any consequential loss or damage
arising from such delay unless the consignor had made a declaration of interest in
timely delivery which has been accepted by the multimodal transport operator
Limits of liability when the nature and value of the consignment have not been
declared and Stage of transport where loss or damage occurred is not known
(1) Where a multimodal transport operator becomes liable for any loss of, or damage to, any
consignment, the nature and value where of have not been declared by the consignor
before such consignment has been taken in charge by the multimodal transport operator
and the stage of transport at which such loss of damage occurred is not known, then the
liability of the multimodal transport operator to pay compensation shall not exceed two
Special Drawing Rights per kilogram of the gross weight of the consignment lost or
damaged or 666.67 Special Drawing Rights per package or unit lost or Damaged, whichever
is higher [1 SDR = USD 1.38724 ….. 19.4.2019]
Limits of liability when the nature and value of the consignment have not been
declared and Stage of transport where loss or damage occurred is not known
“Explanation.—For the purpose of this sub-section, where a container, pallet or

similar article is stuffed with more than one package or units, the packages or units
enumerated in the multimodal transport document, as packed in such container,
pallet or similar article of transport shall be deemed as packages or units”.
(2) Notwithstanding anything contained in sub-section (1), if the multimodal transportation

does not, according to the multimodal transport contract, include carriage of goods by sea
or by inland waterways, the liability of the multimodal transport operator shall be limited to
an amount not exceeding 8.33 Special Drawing Rights per kilogram of the gross weight of
the goods lost or damaged
Limits of liability when the nature and value of the consignment have not been declared and
Stage of transport where loss or damage occurred is known
Where a multimodal transport operator becomes liable for any loss of, or damage to, any
consignment, the nature and value whereof have not been declared by the consignor before such
consignment has been taken in charge by the multimodal transport operator and the stage of
transport at which such loss or damage occurred is known, then the limit of the liability of the
multimodal transport operator for such loss of damage shall be determined in accordance with the
provisions of the relevant law applicable in relation to the mode of transport during the course of
which the loss or damage occurred and any stipulation in the multimodal transport contract to the
contrary shall be void and unenforceable.
Provided that the multimodal transport operator shall not be liable for any loss, damage or
delay in delivery due to a cause for which the carrier is exempted from liability in
accordance with the applicable law.
45 Freight Forwarder : MTO Registration
Requirements for Registration
Operations Flow Charts : Imports & Exports
ICD : ACTL, Faridabad
Imports - Train : Operations Flow Chart
Consignee ACTL-BOM Payment of duty & line
informs- ETA & coordinates with S. Line files TP on charges for collection of DO
S.Line S. Line respective CTO
Advance B/E filed, Duty

Intimation & Collection
Container loaded on
to rail wagon
CHA requisitions consignee

for dox
Custom examination & Container arrives Container flagged off
out of charge at ACTL to ACTL (transit time
42 hrs)
CHA informed about ETA by

ICD
Transportation for factory

Delivery Yard De stuff De stuffing Import desk displays Consignee informed about
container arrival report ETA by ICD
Imports - Road : Operations Flow Chart
Consignee ACTL-BOM
informs- ETA & coordinates with S/Line files SMTP
S/Line S/ Line by road
Payment of duty & line
charges for collection of DO
Transportation for Dox handled over
factory D/S to ACTL BOM by
Advance B/E filed, Duty
S/line
Intimation & Collection
Delivery Yard D/S or
factory D/S ACTL- BOM pre-alerts TIME LINE- CHA requisitions consignee
transporter 24 hrs for dox
Customs examination
& out of charge Consignee informed
Trailers positioned
about ETA by ICD
Container arrives & Ctr. Loaded & flagged Intimation

gated in off to ACTL-FBD ( max to ACTL- FBD CHA informed about ETA
transit time 120 hrs) with details by ICD
Exports - ICD Stuffed Containers : Operations Flow Chart
Gate-in details
CHA files shipping Container gate-in
intimated to
bill with customs facilitated by ACTL-
shipper by ICD
BOM, ICD informed
Cargo arrives at Cargo examined

Shipper/CHA obtains
ICD gate & custom cleared
carting order Ctr. Arrives at gateway port.
LET EXPORT
ICD informed by ACTL-BOM
Cargo off-loaded in Cargo tallied & stacked

CHA hands over CLP to
W/house in W/house ACTL-BOM informed with
W/House Manager
details to ACTL FBD
Ctr. Stuffed, cargo

tallied, ready to be Ctr. Flagged off to port
Intimation to ( max transit time- 120
moved
customer with rail hrs)
out details by ICD
Shipping line Doc handled

issues NOC over to driver
By Rail By Road Position
Rail out forwarding from
trailer
note S/line
Exports - Factory Stuffed Containers: Operations Flow Chart
Gate-in details
CHA files shipping Container gate-in
intimated to
bill with customs facilitated by ACTL-
shipper
BOM, ICD informed
ICD advised to move Ctr. Stuffed &

ctr. to factory moved to ICD Ctr. Arrives at gateway port.
ICD informed by ACTL-BOM
Ctr. Arrives at ICD & Ctr. Seal verified &

gate-in custom cleared “LET ACTL-BOM informed with
EXPORT” details ICD
Ctr. Flagged off to port

Intimation to ( max transit time- 120
customer with rail hrs)
out details By Rail By Road
Ctr. Loaded &

Shipping line Doc handled
issues NOC over to driver
Position
Rail out forwarding from
trailer
note S/line
Conclusion : What mode of transportation should you use?
There are numerous options for transporting goods, and there may not be one solution for your transportation needs. Each
mode of transport has its advantages and disadvantages. Prioritizing your needs, understanding your shipment and
comparing costs is important when planning your shipment and choosing the best mode of transport.
SHIPPING ADVANTAGES BY MODE:
What to choose?
56
Assertive & Persuasive Communication
Prof. Ashok Adv ani - Visiting Faculty : IIFT & Jaipuria Institute of Management, Noida

Multimodal Transport: Prof. Ashok Advani - Visiting Faculty: IIFT & Jaipuria Institute of Management, Noida

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Multimodal Transport: Prof. Ashok Advani - Visiting Faculty: IIFT & Jaipuria Institute of Management, Noida

Загружено:

Авторское право:

Доступные форматы

1

Unimodal – Intermodal - Multimodal

Nhava Sheva Durban

 It is the movement of cargo from origin to destination by several modes of

 Each of the modes have a different transport provider or entity responsible

 Each contract is independent

 Multiple carriers during a single journey

Operation an Intermodal operation as involves several contracts

Operation an Intermodal operation as involves several contracts

 The carrier issues a port to port Bill of Lading

 It is the movement of cargo from origin to destination by several modes of transport

 Each of these modes have a different transport provider or entity responsible

 Governed under a single contract

 Single carrier during a single journey

Operation a Multimodal operation as involves single contract

 In this case, the carrier issues a Combined Transport Bill of Lading or a

Pre-carriage – Carriage – On-carriage

 Applicable for both pre-carriage & on-carriage

 Applicable for both Exports & Imports

 Above activity can be performed using rail or road transport

 Applicable for both pre-carriage & on-carriage

 Applicable for both Exports & Imports

Inland Haulage Charge (IHC)

Terminal Handling Charge (THC)

 Charges collected by terminal authorities at each port against handling of containers /

 THC varies from Port to Port

 THC is a part of IHC collected by S/Line & not vice-versa

Terminal handling charge (THC)

 Example : A typical port handling for a railed container

 Above for FCL (Full Container Load) shipments

 For LCL shipments, THC worked on pro-rata basis

 Charged per TEU / FEU [FCL’s] and per W/M [LCL’s]

POL Service Type THC / L [INR] THC / L [INR]

20’ 40’ / 40’ HQ

Mundra CY/Factory 9,295 12,220

Pipavav CY/Factory 7,795 11,620

Up to 7.8 33,600 Up to 16.1 67,000

7.8 – 17.8 36,900 16.1 – 26.1 70,500

17.8 – 23.8 42,500 Over 26.1 70,500

23.8 – 27.8 48,100

Over 27.8 67,000

 FCL – Denotes “Full Container Load”

 Receipt of customer’s cargo by carrier duly custom cleared

 FCL – Denotes “Full Container Load”

 Receipt of customer’s cargo at Forwarders warehouse or the origin Container Freight

 Consolidation of cargoes for multiple consignee’s

 LCL – Denotes “Less than Container Load”

 Receipt of customer’s cargo at Forwarders warehouse or the origin Container Freight

 Consolidation of consignee’s cargo with cargo from other exporters / vendors

 LCL – Denotes “Less than Container Load”

 THE MULTIMODAL TRANSPORTATION OF GOODS ACT, 1993 (No. 28 OF 1993)

“Multimodal Transportation” means carriage of goods, by at least two different modes

Definition : Multimodal Transport Contract

“Multimodal Transport Contract ” means a contract under which a multimodal transport

Definition : Multimodal Transport Document

“Multimodal Transport Document” means a negotiable or non-negotiable document

Definition : Multimodal Transport Operator

“Multimodal Transport Operator” means any person who:

acting on his behalf

the carrier participating in the multimodal transportation, and who assumes

responsibility for the performance of the said contract; and

(iii) is registered under sub-section (3) of section 4

No person to carry on business without registration