INTRODUCTION
With the world’s economy growing at a rapid rate and global transportation on the rise; there is a need to understand the requirements and regulations for this mode of transport. The difference between the shipping agents and brokers is important as one can see their different rolls and how their relationships are important to the structure of ocean shipping in global logistics. Free Alongside Shipping (FAS) and its obligations to the seller and buyer is discussed as it is only applicable to sea or inland waterway transport requiring the seller to deliver goods to a named port alongside a vessel designated by the buyer.
DISCUSSION:
A. Structure of ocean shipping in global logistics
1- Liner service
Liner service has the following
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• Sale & Purchase brokers represent one party in a deal to buy or sell new or secondhand tonnage.
C. Free Alongside Ship (FAS)
Incoterms are one of most important features of international trade, but sadly, one of the most misunderstood: they feature regularly in the lives of a wide range of people involved in exporting or importing (sales, customer service, purchasing, accounts, freight and shipping personnel). Using Incoterms properly as part of a sales contract provides clarity for both parties, gives certainty over costs, and reduces the risk of disputes and disagreements with clients or suppliers.
One of the most frequently used incoterms are FAS (Free Alongside Ship). Free Alongside Ship ("Cost and Freight") means that the seller delivers the goods on board the vessel or procures the goods already so delivered. It is a trade term requiring the seller to deliver goods to a named port alongside a vessel designated by the buyer. "Alongside" means that the goods are within reach of a ship's lifting tackle.
When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a
The organization is able to build a barrier to new entrants in parcel industry. It is very expensive to set up the services that are equal to the existing organizations. There is high fixed cost associated with establishing the required international transport network. This includes ground transportation vehicles, depots, plants and a retail
Container shipping industry is kind of international trade and destined restricted by los of regulation, such as ocean environment law, nation’s imports & exports law.
In class this week we saw cases where our memory fails when recalling information in the past and even seeing changes in real time in front of our eyes. Misinformation is when someone gives information that is incorrect without the intent of giving the incorrect information. This is more likely to happen in situations where the new information would fit someone’s schema of the situation. In a crime example, we can say that a robber has a knife in his hand and pointed it at someone, someone in the situation may have seen a gun instead of the knife and give that as a description. It is the same when someone misreads a word or letter as another in a license plate. It is not on purpose but it is because our brains use shortcuts to link events together to save time. In class we discussed why the new false memory might take hold as if it was the true memory. We said that since the new misinformation was more recent, it would be more easily remembered and projected into the memory. This blocking theory can be used to explain why when someone says they saw a gun at a crime scene to the other witnesses, the other witnesses may be more likely to say that there was a gun and not a knife
The shipping department is to encourage the overseas transportation trade. For example, the praying activities will held by the specialized shipping department and local officials to wish the safe of shipping.
By Article I (e): "'Carriage of goods' covers the period from the time when the goods are loaded on to the time when they are discharged from the ship", and by Article II: "... Under every contract of carriage of goods by sea the carrier in relation to the loading, handling, stowage, carriage, custody, care, and discharge of such goods, shall be subject to the responsibilities and liabilities, and entitled to the rights and immunities hereinafter set forth".
soon have several ships in port, agrees to part with a pound of flesh if the
Free trade can be defined as the free access to the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact with the market. The whole idea of free trade is that it lowers the price of goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas, which essentially force citizens to buy from them.
The freight rate is the price of the carrier that pays by the charterer or ship owner. Freight rate is compulsory and it is measures by the value of goods, point of destination and the travel distance due to land, air or ocean. Freight rate also include with the custom clearance process. It is demanded by the fluctuation of supply and demand, the bargaining power of shipper, the competitors with other logistic company and the availability or alternative of transport modes (lorry, train and ship) (The Challenges Facing The Maritime Transport Industry,
A general ship or a common carrier is a vessel that the owner or operator willing carries goods for more than one person. There are three different types of common carriers. First is a conference line which is an association of seagoing carriers who have joined together to offer common freight rates. Those that chose to ship all or a large share of their cargo through this process receives a discounted rate. Second is an independent line, which is when the vessel has their own rate schedules. Generally, independent lines have a lower rate than that of the conference discounted price. Finally the third aspect of common carrier is tramp vessels which are similar to independent lines by the fact that they have their own rate schedule, but they differ from both in that they don’t operate on established schedules.
A modern seaport performs a lot of functions, it is a place where not only goods are in transit but they are also sorted, manufactured and distributed. It is a multi-dimensional system; therefore it needs to be integrated within logistic chains to perform effectively (Hall, Pete...
Promotion of seafarers rights coupled with international co-operation is likely to boost international trade and competition among ship owners. Commitment from governments and ship owners is critical in ensuring effective and successful implementation of the convention in order to achieve its goals. It was anticipated that as the MLC 2006 was being ratified by countries, the conventions which were in existence would be slowly phased out to pave way for the implementation of the new convention.
According to iRami (2012) stated that the shipping plays an important role in world trade which is the backbone of the world economy. Recently, without these boats and vessels provide transportation services, many countries will be unable to participate in world trade and will not be as prosperous. From centuries past, the sea has always been important to all country at the world which as an important factor of economic development of every maritime country. The maritime sector contributes significantly to the economic development. Underling this is the fact that 95% of the country international trade is carried in whole or in part by maritime transport. An efficiency of the transport that will improve the liberalization of the economy, the
The seller pays all the charges till the loading of the goods in the vessel and insurance as per the terms. The seller then sends the documents to the buyer of the good. The risk
According to OECD (2005), World Bank estimated average time required for custom clearance through sea cargo in Africa is 10.1 days and only 2.1 days in OECD which shows the difference between trade efficiency of Africa and trade efficiency of OECD. According to OECD (2005), custom clearance time can be reduced by increasing the cooperation among the international border agencies and custom authorities of trading countries.
One other peculiarity of a consecutive voyage charter is the time factor as it causes certain structural differences when it comes to costs and income. These contracts will contain bunker clauses or other clauses concerning cost