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COPYRIGHT STATEMENT
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the Fritz Institute.
The Fritz Institute would like to recognise the assistance of the following organisations in providing kind permission to use their materials in this document. People Development Group for providing use of existing Transport training materials. International Committee of the Red Cross for the use of photographs, tables and material throughout this module. UNICEF for the use of photographs throughout this Unit. World Food Programme for the use of photographs throughout this Unit.
Fritz Institute 50 Fremont Street Suite 1150 San Francisco CA 94105 United States of America
INTRODUCTION
Welcome to the Transport unit of the Certification in Humanitarian Logistics course. During this unit, you will be looking at the function of transport in supporting humanitarian logistics. The unit will look at aspects of international and local movements and the modes of transport available. It will consider the role of third parties in assisting in the movements and in the use of outsourced transport providers. Road is often the major mode of transport to be used and this unit will also consider the nature of goods to be moved, planning and scheduling movements and the selection and management of third party providers.
TRANSPORT
Suitability of Various Modes of Freight Transport for Carriage of Goods and the Criteria for Selection
11
Modal Nodes
14
16
21
29
32
33
34 36
38
41
42
Planning Movements
43
Information Exchange
44
46
51
54
56
63
66
INTERNATIONAL MOVEMENTS
International movements often involve the use of two or more modes of transport. Organising such movements can be a very complex and involved activity. Delays at the modal interchanges, where goods are moved from one mode of transport to another, can have a knock-on effect that potentially creates major problems in the movement of humanitarian aid. In order to expedite international movements, knowledge of documentation and customs requirements, port/airport procedures and other such formalities is necessary. Field operators may have the resources of a central head office to effect such movements. If this is not the case, the use of a global shipping company or freight forwarder can help to smooth the movement. Full load bulk shipments may be in container loads for air, rail or sea shipment or in rail wagon loads. As will be discussed later the role of the freight forwarder contributes greatly to the planning of these movements across country boundaries. At the destination port, airport or railhead, arrangements may need to be made for onward road transport to final destination. This may involve the use of owned transport, or more likely the use of a third party transport provider, especially if more specialised vehicles are required. It is the responsibility of the transport provider to meet the level of service requirements regarding collection and delivery times. Part loads that need to be moved internationally are best organised through a Groupage arrangement. This involves a forwarder, or perhaps the shipping line combining the goods with other cargo to make a full unit load. Whilst costing more than the shipment of a full load, this arrangement usually has the advantage of costing less than would be charged for shipping a part load. Groupage usually requires the goods to be presented to the shipper a little earlier than full unit loads, and there is sometimes a delay at the destination where the goods are broken down into the individual consignments again. It is important to note that Humanitarian Organisations must exercise caution when sending part loads. The nature of the goods being moved and the status of the Organisation must not be compromised by being grouped with cargos that are unacceptable or are being moved by companies who are not acceptable to that Humanitarian Organisation. International movements by rail, sea and air will be subject to timetables. This means that deliveries from source to the shipper at origin need to fit to the loading cut-off times imposed by that shipper. Transhipment and movement to final destination will be governed by arrival times and subsequent customs, handling and documentation requirements prior to release.
LOCAL MOVEMENTS
Local movements, within a specific country, will usually involve road transport. This may involve movement of bulk loads from ports, airports and railheads to warehouses and depots, bulk movements between facilities such as warehouses or depots, or delivery of smaller consignments from a local warehouse or depot to end users at a number of destinations in an area. Situations that involve local movement will include : An international movement that is not fully integrated from origin to final destination; the local movement may comprise the onward leg from port or airport. Movements between storage locations, for example, warehouses and depots. Movements from storage locations to final destination, for example, a feeding station. Movements at final destination to the ultimate recipient of the goods. Whatever the nature of the movement, careful planning is needed to optimise the use of the vehicle and driver. There are a number of factors to be considered when planning movements and they are dealt with below. It is important to understand the constraints that may be faced when trying to balance the service required by the customer with the costs involved in executing the movement.
it could be more efficient to use a truck capable of being offloaded from the sides, rather than the rear. If goods to be received are already stacked on pallets, or in units suitable for mechanical handling, the availability of handling equipment will need to be determined; again this will influence turnround time. In some cases, the regional or local warehouse, or perhaps the programme manager, may stipulate a delivery time for the goods. Sometimes, in terms of load planning, this can create a constraint on developing an effective route plan. Similarly, when arranging to deliver or collect goods, for example from a freight terminal, a booking in system will stipulate the time that the vehicle needs to arrive. In some cases, this will be quoted as a specific time, although usually a tolerance will be allowed. It is important to know what the tolerance is to ensure that penalty costs, such as demurrage are not incurred.
SUITABILITY OF VARIOUS MODES OF FREIGHT TRANSPORT FOR CARRIAGE OF GOODS AND THE CRITERIA FOR SELECTION
Mode selection is influenced by : Operational factors. Mode selection criteria. Matching operational factors to the selection criteria.
OPERATIONAL FACTORS
Certain operational aspects need to be considered when selecting the appropriate mode : The requirements of the customer who is being serviced. The nature of the consignment being transported. The constraints imposed by environmental factors.
CUSTOMER FEATURES
There are a number of aspects to consider : The geographical location and dispersion of the customers to be serviced. The delivery time required by the delivery point, for example within 24 hours, and the regularity with which consignments are to be delivered must be known. The features of the delivery point must be known in terms of physical access, weight restrictions and loading/unloading facilities. The average consignment size will impact on the choice of mode. Are a few large consignments or many small consignments to be delivered?
CONSIGNMENT FEATURES
The nature of the consignment to be moved can have an impact on the choice of mode and possibly whether it is feasible to use a particular mode. Factors to consider are : The size, shape and weight of the goods being transported. The value, requirement for security in transit, and degree of fragility. Obsolescence/deterioration of the product. The hazardous nature of goods.
ENVIRONMENTAL CONDITIONS
A number of environmental factors will play a part in the mode selection decision : In some countries environmental and legislative considerations, for example, vehicle and axle weight limits could substantially limit the choice of the most effective mode of transport. The country's transport infrastructure, in terms of the extent and quality of roads and railways, will define mode availability. Laws and taxation policies may offer incentives or restrictions on the use of particular modes of transport. Availability of labour and capital, specialist and technological knowledge and Government funding, can influence mode availability. Climatic conditions, for example, monsoon weather, can restrict the choice of mode. In selecting the appropriate mode, it is necessary to compare the selection criteria with operational factors related to the choice of mode. The mode selected should give an optimum solution related to the nature of the goods to be moved, the urgency of the delivery need and the minimisation of cost. It is important to realise that the most appropriate mode may not necessarily be the least cost option. Once the optimum mode is selected, on occasions it may be necessary to vary it to meet specific delivery requirements. For example, if goods are normally shipped by road, an emergency delivery may need to be sent by airfreight to meet a specific programme requirement.
SPEED
The nature of a mode normally determines the speed at which goods can be moved. However, the nature of the modal infrastructure can have an impact on the relative speed of that mode. Environmental factors, such as congestion on roads and the impact of adverse weather conditions, can impact on the ability to move at the optimal modal speed.
RELIABILITY
The reliability of a transport service to deliver the correct goods, in the right condition at the required time, every time, is a major aspect of customer expectation. Unreliable service in terms of planned aid delivery can have a critical impact on the ability of a programme team to meet its humanitarian objectives.
COST
The cost of a mode will often be expressed in terms of the unit cost for transporting the goods or materials, rather than an absolute figure. This could be expressed as a cost per sack, cost per tonne and cost per pallet or similar. The distance the goods have to travel must also be considered. Therefore modal cost can also be expressed in terms of a value per tonne kilometre, for example. Understanding costs at this level of detail allows a very precise comparison of modes to be made. However, if the goods are in the form of a full load and there is a choice of available modes for the consignment size, the absolute cost for transportation could be compared. For instance, transport could be quoted as a cost per 24 tonne load from point A to point B.
FLEXIBILITY
Flexibility relates to the scope for variation, which exists in a mode. The infrastructure within which a mode has to operate will affect the flexibility of that mode. Comparatively speaking road transport is a very flexible mode, due to the road infrastructure, which exists in most countries. Rail, for example, is less flexible, being constrained by the available fixed infrastructure.
Lack of appropriate infrastructure may also remove the opportunity to use a particular mode. A matrix can be established to compare different modes and this will be used as part of the process. Certain categories of goods will be more suitable for a specific mode. It is sometimes useful to construct a comparison matrix, such as the example shown below :
MODE ROAD CRITERIA
Relative speed Reliability Cost per tonne/km Flexibility Moderate Good Medium High Extensive network Short and medium distances e.g. Europe/Middle East. From a neighbouring country to operation site Internal transport; Short/medium distance Relatively fast; No transhipment; Direct delivery; Flexible; Cost. Roads may be dangerous (land mines) or blocked (rainy season); Sometimes, driver's nationality or vehicle registration not acceptable Moderate Good Low/medium Low Limited and fixed infrastructure Slow Limited Low/very low Low Restricted network Very high Very good High Medium Limited network Emergency phase; Expensive goods; Fragile or perishable goods; Cold chain; No alternative option; Small shipments; e.g. diplomatic pouch; Long distance with time constraint. Fast; Reliable; Limited losses; Direct; Easy tracking and tracing. Expensive; Restricted to journeys between airports; Restricted loading capacity (dangerous goods, size of shipment, weight, fuel, size of packages, etc.).
RAIL
SEA
AIR
Other considerations
Large consignments. From port of discharge to inland operation site (warehouse). Ecological.
Large quantities; Less urgent; Pre positioning phase; Second phase; Long distance with no time constraint.
Advantages
Economical; Large loading capacity; Range and speed (in most countries).
Economical; Large loading capacity; No restriction on loading capacity; Cheap. Slow; Transhipments at ports; Use as a second means of transport for large volumes; Higher theft risk in the port; Not flexible.
Disadvantages
MODAL NODES
Nodes describe the type of infrastructure that supports a specific mode of transport. It is necessary to identify the various modal nodes that link the movement of goods both in terms of using an individual mode and through multi-modal activities.
Copyright 2006 Fritz Institute All Rights Reserved 14
MULTI-MODAL OPTIONS
In reality, in terms of all modes except road, more than one mode of transport will normally be needed to complete the total journey. However, where different modal options exist to move goods between any two points, a structured decision process for integrating those modes should be used. In certain situations, it could prove to be beneficial to consider the use of more than one mode to move goods between the goods origin and regional warehouses. Rail is effective over long distances, but its restricted network will often mean the use of road transport to move loads between railheads, and their final destination. Containerisation has particularly facilitated the integration of sea and road/rail modes. The use of more than one mode of transport can facilitate the movement of goods, however it does need to be carefully planned in order to make an effective and efficient movement. At each transfer point between modes, there is the risk of delays occurring if the different legs of the movement are not integrated. One major issue, if cargo is held at a port or airport for a length of time is that of demurrage. Demurrage is a charge made by the port or airport authority, for space taken up by goods, usually awaiting collection by the consignee or his agent. Shipping lines can also charge demurrage on the containers that are held for a period of time before being moved to
their final destination. The cost of demurrage will normally be borne by the humanitarian organisation itself.
SCHEDULED MOVEMENTS
Major world airlines and other global logistics service providers have created a considerable air cargo infrastructure. The increase in passenger traffic routes, gives an opportunity to ship consignments on passenger routes as well as dedicated cargo flights. This has extended the available coverage and in some cases has made air freight a more cost effective option, particularly for international movement. Internal flights within a country are sometimes limited by the availability of airports and an associated network. Also, because of the relatively shorter distances involved, the cost of this movement is not usually economically comparable to other modes.
AIR CHARTER
In addition to such commercial movements, it is also possible to charter a plane or perhaps to have the use of military aircraft to allow a totally dedicated movement to take place. This gives the possibility of moving goods from one location to another without being constrained by commercial timetables and specific airport locations. The charter may be totally ad hoc, that is, a one-off charter to achieve a particular humanitarian objective. Alternatively it may be a regular event, monthly for example, in order to transport routine supplies or perhaps members of staff. Certainly in terms of commercial charter, unit cost can become an issue, particularly if the aircraft is not fully loaded. However if consignments are consolidated and the aircraft is fully loaded, the unit cost of moving the material may in fact be cheaper compared to using a scheduled aircraft. Where loads from different humanitarian organisations are consolidated, it will usually be necessary to get authority at the appropriate level in the organisation to avoid potential conflicts of interest and possibly acknowledge other political considerations. A number of factors will influence the decision to charter and the nature of the aircraft chartered : Availability of different types of aircraft. The nature, quantity, weight, size and volume of the cargo.
Aircraft equipment available for handling and also the loading and unloading equipment available at origin and destination. The distance to be travelled and possible constraints on certain airspace. Ability of certain airports to handle particular types of aircraft regarding take off and landing. Possible noise restrictions at certain airports. Securing landing permissions. Specialist service providers, such as freight forwarders, can be used to manage the wide range of activities associated with international movement. This includes customs entry and the preparation of documentation, insurance cover, arranging shipment, collecting and if necessary packing and preparing goods for transportation. They will also manage de-grouping at destination and onward transit to the final destination. Modern freight aircraft are capable of carrying heavy loads where speed is of the essence. It is possible to apply the containerisation approach to air transport. Some aircraft are capable of handling standard ISO containers. Others will handle pallets or a specifically designed container, sometimes referred to as an igloo. These are often rented to freight forwarders who will consolidate goods from a number of consignees to optimise freight rates. Two bodies in particular control and influence the commercial movement of goods by air.
IATA
The International Air Transport Association (IATA) is an association of air transport operators. It seeks to simplify and standardise air transport documentation, procedures and operational activity. Its members carry the bulk of the worlds scheduled air traffic around the world. IATA aims to help its members meet increasingly stringent and diverse national regulations without diminishing the speed and reliability of delivery across the world. For example, IATA has laid down requirements that ensure that global cargo security measures are harmonised and operationally manageable.
TACT
The Air Cargo Tariff (TACT) produces manuals to facilitate the movement of cargo by air, interpreting and detailing the complex IATA regulations. Its manuals list such things as specific country information on charges, import/export regulations and cargo agents details and carrier information such as inter-airline agreements and aircraft loading charts. It also publishes comprehensive rates listings three times a year.
package and safely transport dangerous goods by air. These rules are designed to protect the safety of aircraft, their passengers and crew. They are complex and if necessary advice should be sought from the airline or freight forwarder related to packaging, labelling and documentation. The basic responsibilities of the shipper are to : Decide whether the goods to be carried are dangerous or hazardous as defined by the IATA DGR regulations. Ensure the goods are correctly described and classified, including the risk. Meet the required packing and labeling requirements. Complete the necessary dangerous goods shippers declaration documentation. The basic responsibilities of the carrier are to : Accept each consignment of dangerous goods or directly supervise the acceptance of the dangerous goods. Load and secure the dangerous goods or supervise the loading and secure the dangerous goods on board the aircraft so that they do not move during transport. Inspect for damage and leakage before and after loading and unloading and the inspection and decontamination in case of leakage; Crosscheck that the dangerous goods are contained in a package that is designed, constructed, filled, closed, secured and maintained so that under normal conditions of transport (including handling) there will be no accidental release. Report accidental incidents or accidents as prescribed by their country of registry.
The weight of the loaded aircraft and the ability of the ground to support the parked aircraft where space is available off the runway. Aircraft may arrive at all hours and trucks and labour for manual offloading must be available. If the aircraft is to be offloaded using a forklift, availability of an appropriately sized piece of equipment must be arranged. If no forklift is available, it may be possible to get one sent on the arriving aircraft; this will, however, possibly reduce the amount of material that the aircraft can carry. Storage space will be required near the offloading point if the supplies are to be temporarily stored prior to onward movement. Potential security problems need to be addressed.
covered by a packing list that details the precise contents of each package. Labelling should include details of the sender and consignee, other relevant markings and the package number. This should be shown as a part of the total consignment, e.g. 3/12. Helicopters In some disaster situations where the existing infrastructure is either destroyed or unusable, helicopters may offer the only way of receiving humanitarian aid supplies. They come in all shapes and sizes and are capable of transporting not only people but materials and equipment. Helicopters have the ability to transport materials loaded internally and also externally. In this case, materials are placed in a net or suspended from a line, attached to the underside of the helicopter. These goods need to be detached before the helicopter can land and discharge the material carried internally. A suitable landing space must still be found for the helicopter that will take its weight, and is not enclosed by anything that may interfere with the rotors. In extreme circumstances, the helicopter may remain hovering whilst aid is unloaded.
They are able to land and take off in very confined spaces, or where landing is impossible or not an option, hover whilst they drop supplies to the ground.
The table below gives an indication of the payload capability and range for a cross section of helicopters: TYPE OF HELICOPTER MAX RANGE Nautical Miles (NM) 320 350 200 180 432 450 450 360 270/518 307 432/1036 PAYLOAD KG MAX. RANGE 200 N/A N/A 650 2543 3044 3800 N/A N/A N/A N/A PAYLOAD KG FOR <100 NM 645 900 2000 1500 4470 4902 5200 4500 3000 3-4000 20000
Bell 206L-4 Ecureil 350 B2 Bell 212 Sirkorsky S-76C Super Puma L1 Super Puma L2 Super Frelon SA 321 Super Puma 332 c1 Mi-8 MI-17 MI-26
Similarly, the table below gives an indication of the payload capability and range for a cross section of aircraft : TYPE OF AIRCRAFT Hercules C130 Antonov AN12 Antonov AN 124 Ilyushin IL76 Boeing 707 De Havilland Buffalo Twin Otter MAX RANGE (KM) 3700 2100 6500 3800 4700 3400 1700 MAX PAYLOAD (TONNES) 20.4 18.0 120.0 45.0 42.0 6.2 2.3 MAX CAPACITY (m3) 130 90 850 180 210 N/A N/A
Initially, the decision must be made to use either ones own vehicles or to use a third party transport provider. A third party provider provides both trucks and drivers. The decision will be impacted by what is seen as the relative advantages and disadvantages of using ones own vehicles compared to those operated by a third party transport provider. For example, it may be more appropriate, in order to reduce the risk to its staff, for an organisation to use third party transport in less secure areas.
38.0
24.0
16.5
40.0
24.0
16.5
41.0
27.0
16.5
40.0
26.0
18.75
* Note that the specimen payload is the weight of goods that could be carried without exceeding the maximum gross vehicle weight. Where legislation does not specify a maximum gross weight, or local circumstances allow, this payload may be increased. For goods which have a high cubic measurement, but are light in weight, the capacity of the load carrying area may be filled before the maximum payload is reached.
Vehicles can be categorised into two main types : Rigid vehicles comprise a cab and chassis onto which the desired body is placed. They will also act as the prime mover in a drawbar combination. Articulated tractors are the motive unit for the movement of trailers. The smallest vehicles used are car derivatives which are generally used for small local deliveries. Often they will be used for the delivery of emergency consignments. Moving to the next size, we have a variety of vehicles all under the 7.5 tonne gross vehicle weight (GVW). The next group of vehicles still have two axles, but increase in weight to 18 tonnes GVW. If we add a third axle the payload increases; a fourth axle will increase it to over 20 tonnes. Articulated vehicles can operate at various GVW's according to the combined number of axles on the tractor and its trailer. If payloads are high, articulated units and trailers offer a good solution. Where bulk rather than weight is the constraining factor, drawbar combinations offer an opportunity to maximise cubic capacity.
Drawbars A rigid master truck with a drawbar trailer is the usual configuration. The bodies may be of the demountable type. Drawbars offer increased cubic capacity for bulky lighter loads.
Convention on the Contract for the International Carriage of Goods by Road (CMR)
The Convention recognised the desirability of standardising the conditions governing the contract for the international carriage of goods by road, particularly with respect to the documents used for such carriage and to the carrier's liability. The Convention applies to every contract for the carriage of goods by road in vehicles for hire and reward, when the start and end points for the carriage are situated in two different countries, of which at least one country is a signatory to the Convention. Where the vehicle containing the goods is carried over part of the journey by sea, rail, inland waterways or air, the Convention still applies to the whole of the carriage. The consignment note is made out in three original copies signed by the sender and by the carrier. These signatures may be printed or replaced by the stamps of the sender and the carrier if the law of the country in which the consignment note has been made out so permits. The first copy is handed to the sender, the second accompanies the goods and the third is retained by the carrier. The consignment note is prima facie evidence of the contract, the conditions of the contract and the receipt of the goods by the carrier.
For the purposes of the Customs requirements for international movements and other formalities for all goods moved by road, which have to be completed before delivery of the goods, the sender must attach the necessary documents to the consignment note or hand them to the carrier. All the information which the carrier requires must be supplied. It is important to note that these requirements apply to all movements of goods whether internationally or locally within a particular country. The consignment note should contain the following particulars : The date of the consignment note and the place at which it is made out. The name and address of the sender, of the carrier and of the consignee. The place and the date of taking over of the goods and the place designated for delivery;
The description in common use of the nature of the goods and the method of packing, and, in the case of dangerous goods, their generally recognised description. The number of packages and their special marks and numbers. The gross weight of the goods or their quantity as otherwise described. Charges relating to the carriage (carriage charges, supplementary charges, customs duties and other charges incurred from the making of the contract to the time of delivery). The requisite instructions for Customs and other formalities. Other information specifically related to that shipment. A statement that the carriage is subject, notwithstanding any clause to the contrary, to the provisions of the Convention.
The carrier must check, as far as is possible, the quantity and condition of the goods to be carried. The sender is responsible for any damage to people, equipment or other goods incurred during the transit unless the defect was apparent to the carrier at the time of taking on the consignment and showed no reservations about it. The sender is responsible for any problems caused by the inadequacy of the paperwork. Other clauses detail the responsibilities and liabilities of the carrier, the consignor and the consignee.
Where loose bulk loads are being transported they are secured in such a way to ensure that they cannot fall off the vehicle. The vehicle or its axles are not overloaded, nor is the vehicle loaded too high to affect the stability of the load and its movement or the ability of the receiver to safely unload it. They check the load before moving off, after travelling a few kilometres and after removing/adding to the load during the journey.
Stealing an unattended vehicle. Hi-jacking the vehicle. Threatening or bribing drivers. Drivers are central to prevention of this type of loss, and their integrity is essential. Consequently, careful recruitment and selection of drivers is critical. Training will impress upon them the need for care, and procedures to follow to avoid risk of theft. Driver identification cards can be used for added security and to avoid thieves gaining access to vehicles by misrepresentation when parked on third party premises. However, there is little to prevent deliberate collusion by drivers. Vigilance is essential and attention to any pattern of discrepancies on loads.
Sophisticated mechanical handling equipment provided at port, and inland rail terminals, allows quick turnaround times to be achieved. Overhead cranes and straddle carriers can load or unload containers in minutes. This can reduce ship turnaround times to just hours, increasing their cost effectiveness and time at sea. In less developed ports, unloading and general stevedoring will include significantly much more manual loading and unloading activity. This will result in potentially longer transfer times. Containers are particularly useful for inter-modal operations. The early introduction of standard sizes, methods of construction and securing have allowed standard equipment to be developed for their handling. An ISO container is a box 8 ft, or 8 ft 6 inches high by 8 ft wide by 10, 20, 30 or 40 ft long. Standard dimensions allow close stacking, and ships are now available that can carry up to two thousand five hundred, 40 ft containers. For land distribution a train can hold upwards of 25 containers, whilst an articulated road vehicle carries just one 40 ft container. Sea transport for loose and containerised cargo can be split between liners and trampers. Liners are managed through regular sailing schedules on fixed routes with firm freight rates, often controlled through a shipping conference. This is where shipping companies have formed an association to agree on and set freight rates and passenger fares over different shipping routes. There are different shipping conferences for different regions of the world. Trampers have no fixed schedule or defined routes. The whole vessel may be chartered, or alternatively a certain amount of space and an agreement to collect the cargo from an origin port and discharge at a destination port would be made. Rates are subject to negotiation and the relationship between the ship owner and the consignor is governed by the terms of the Charter Party. On occasions, it may be most economical and efficient to charter the whole vessel, for example where large quantities of food have to be moved quickly to disaster areas. Bulk shipping is a term applied to the movement of dry bulk cargos such as ores, grains, coal and fertilizers and wet cargos such as oil, petroleum and liquid gas. Vessels are sometimes owned by the shipper, for instance in the case of oil, or chartered for an agreed number of sailings.
BILLS OF LADING
The Bill of Lading (B/L) is the major shipping document and has three roles: It is the carriers receipt for the carriage of goods by sea. It is evidence of the contract between the consignor and the shipping line, and on the reverse details the conditions of carriage. Possession of the original Bill gives the title to the goods being carried. The B/L is the transport waybill for a sea freight consignment. It is usually issued in a set of 3 Originals and several non-negotiable (N/N) copies. The B/L is signed on behalf of the ship owner by the person in command of a ship or the shipping agent, acknowledging the receipt on board
Copyright 2006 Fritz Institute All Rights Reserved 30
the ship of certain specified goods for carriage. It stipulates the payment of freight and the delivery of goods at a designated place to the consignee therein named. The B/L has a triple function : It affirms the contract of carriage and sets out the terms thereof. It is a receipt signed by the Master or another duly authorised person on behalf of the ship owner, acknowledging receipt on board the ship of certain specified goods that he undertakes to deliver at a designated place. It is a negotiable document of title to the goods. To make sure that at least one original Bill of Lading reaches the consignee in good time (since he will receive the goods only against presentation of at least one Original B/L), the carrier usually establishes three original bills of lading, which are sent to the consignee under two separate registered mails (it is also possible to send one by ship's bag).
To a named party (Straight Bill of Lading) : In contradiction to a Bill of Lading "to order", the Straight B/L (one in which it is stated that the goods are consigned to a specified person) does not entitle the shipper to dispose of the goods. That right is vested exclusively in the receiver who alone has the right to collect the goods, upon presentation of the B/L and proof of his identity. The Straight B/L may be assigned by means of a document instrument in writing, evidencing the assignment, which the assignee must present to the Master of the vessel together with the original B/L when he collects the goods. On Straight B/L, the term "to the order of" printed on standard B/L must be crossed out, and the deletion initialled by both the shipper and the Master. A Clean Bill of Lading is a B/L, which contains nothing in contradiction to qualify the receipt on board of the ship, the goods in "apparent good order and condition". Goods may sometimes be received alongside, which can result in a delay prior to the physical loading of the goods onto the vessel. An Unclean Bill of Lading is a B/L containing notation that goods received by carrier were defective. The Through Bill of Lading is issued when a shipper wishes the carrier or shipping line to arrange for transport to a destination beyond the port of discharge. The Through Bill of Lading, in addition to the agreement to carry goods from port to port, includes a further journey (by sea or land) from the port of ship's destination to a distant place (for instance, a destination inland instead of a port).
For long distances, the international transport container option is often attractive. Containers are built to an international (ISO) standard size and can be easily handled between road, rail and sea. Containers will offer a medium for transporting smaller unit loads and facilitate routes requiring a multi-modal application. Third party service providers at custom-built rail terminals will often consolidate loads for a particular country. Groupage and consolidation facilities at railheads allow consignments that are smaller than container loads to be handled. Without a dedicated railhead, an organisation will still need to deliver to a transhipment point by road. The unit load can then be placed onto a wagon for on-shipment to the destination railhead, for final delivery, usually again by road. In some instances, the road vehicle itself will be loaded on to the train. Loading and unloading facilities will normally be available at main terminals, such as major road transhipment points and ports, however, smaller goods facilities may not be adequately equipped to efficiently handle the loading and unloading of wagons. Rail can prove a cost effective method of inter modal transport if both land and sea distance is long. Rail can be quite speedy, although transit between railheads and the final destination can reduce this aspect. Also, where the train has to be split at an intermediate point and wagons joined to a variety of different trains; there will often be delays that will increase the overall transit time. The timetables will not always coincide, which again adds to the overall transit time. Climatic conditions, such as the rainy season leading to flooding, can also impact the reliability of the mode.
ANIMALS
In some instances, the only possible means of transport is by animal, for example, for final transportation to very remote villages. Managing a caravan of animals is not easy and the best way to deal with this is to rent them from and owner. The owner will therefore be in charge of all logistical aspects of the convoy. The big difference between a truck and an animal is that even if the animal does not move, it is eating and drinking, consequently planning is of a crucial importance to ensure sufficient food and water is available en route. The goods being moved must be packaged in relation to the weight that the particular animal being used can carry. For information, the table below shows the animals used most frequently in such situations and their approximate work rates. These may vary locally because of climatic or other local conditions.
Load capacity 500 kg 50 kg (mountain work) 50 kg (mountain work) 50-80 kg 60 kg 150-250 kg 150-250 kg 70 kg
Daily work rate 5-8 hours 8 hours 8 hours 8-10 hours 6 hours 8-10 hours 50 km
BARGES
Where road and rail transport is not possible due to lack of infrastructure it may be necessary to transport goods by river. This mode of transport also suits bulk shipments of commodities. This will often be done using motorised barges or similar vessels. Goods can be loaded and unloaded using jetties and quayside facilities. In some cases they may be unloaded from seagoing vessels direct for onward transit.
Although transit times are slow, there is usually little to delay the movement of the vessel between points. In the dry season, rivers may become too shallow; in the rainy season, they may be in full flood and this may create some problems for movement of the vessels.
SECURITY PRECAUTIONS
Freight interchanges, depots and terminals are typically operated by third parties. Although the management of these facilities may offer security and protection of both the vehicle and its load,
Copyright 2006 Fritz Institute All Rights Reserved 34
it is advisable to ensure other precautions are in place to protect the organisations goods and assets. It is important to be aware of the security arrangements that are in place at the locations where loads are being transhipped or vehicles are being left during breaks in their journeys. These locations should be as secure as possible and have their own security arrangements in place. This should include: Adequate perimeter protection, in the form of fences and, if possible, lighting or perhaps even cameras. Controls on the entry and exit of staff and visitors. Controls on the entry and exit of all vehicles for example checking the relevant load documentation. Recording of all vehicle movements. If the stay in the location involves the payment of a fee, the controlling organisation should be able to provide evidence of indemnity against loss and theft.
Where a forwarder is going to be involved in international movements by sea, they should have an office close to both the ports of origin and of entry. They should be experienced in hiring labour and stevedores for cargo handling. Their services need to include verification of goods arriving at the port and of managing discharge, storage and loading operations, checking weights, inspecting shipping packages for visible damage and arranging on-shipment to final destination. More able forwarders will have embraced technology to a high degree, thus allowing good inter office communications particularly in order to deal with any problems that arise. They should also be able to use technology efficiently, including a good telecommunications system and a track and trace system that allows visibility of the consignment at all times. More sophisticated forwarders will have systems that can also be accessed by their customers. The following checklist summarises the key areas discussed above. If possible, when selecting a freight forwarder, all these characteristics should be identified: Licensed by the government to conduct Customs clearance formalities and be up-to-date on changes in Customs requirements Offer a wide variety of services, so that you do not need to contract with many different companies for different services (e.g. sea and air freight, re-packaging of damaged materials, etc.) Own or have access to a bonded warehouse to protect and control shipments in transit Own a trucking fleet for inland transport and have access to specialised vehicles when needed such as container trucks, low-bed trailers, tankers, etc. Have trained, competent, experienced and trustworthy staff Have a proven record of reliability, accuracy, and timeliness, as verified by references from other groups that have used their services Are flexible in their availability on short notice, also outside of office hours and on public holidays Have an established reputation; have been in business for a number of years Have influence in the transport market, with port authorities, etc. Are experienced in successfully handling duty exemption arrangements for humanitarian organisations Have an office in the port area or nearby Are experienced in verifying goods arriving in the port: discharge, storage and loading operations, checking weights and inspecting shipping packages for visible damage Are experienced in hiring porters and stevedores for cargo handling Have at least a country-wide, preferably a multi-country regional network Use technology effectively, including a good telecommunications system and, preferably, a computerised tracking system that allows visibility of where any shipment is at a given time
CLEARING AGENTS
Clearing agents perform a similar role to the freight forwarder, but will often be based in what to the consignee is the country of destination. Essentially the selection criteria for an agent are similar to that of a freight forwarder. In some countries, a government clearing and handling service must be used. The consignee will work with this agency to secure release of the goods. The consignee may still choose to employ a freight forwarder to manage the process on their behalf.
CUSTOMS
Although movement within economic blocs, such as the European Union, minimises the need for cross-border controls on the shipment of goods, generally movement between one country and another will require customs documentation to be completed. This can be an involved and complicated process. Not only is it necessary to know the regulations related to the export of goods from the origin country, it is also necessary to understand the requirements of the destination country. Where, movements pass through intermediate countries, there may also be additional customs requirements to be met. In many countries, customs officers have a considerable degree of power and often, delays in moving cargo will stem from customs problems, such as missing or incomplete customs documentation.
PORT AUTHORITIES
The role of the port authority is to manage the port, ensuring optimal use of labour and resources to minimise vessel turnround times. Typically the authority will manage the berths, schedule arrivals and departures and the loading and unloading of vessels. They will also manage all dock facilities, such as lifting equipment, RORO facilities and rail lines and facilities within the perimeter of the dock area. They will also manage the pilotage of vessels in and out of the port where required, when necessary. As the jurisdiction of civil police will not extend into the port area, the authority will also be responsible for the security and policing of the port area.
CUSTOMS BROKERS
Customs brokers are organisations specialising in the preparation and processing of Customs documentation. This role is often carried out by freight forwarders as part of their service. Customs brokerage plays an important part in maintaining the flow of goods through a port by ensuring that paperwork is accurately completed and efficiently processed.
INSPECTION SERVICES
In order to conform to the receiving Governments requirements, it may be necessary to inspect the cargo on arrival. This may be carried out by a Government department, or by a private inspection service. The inspection is carried out to check the quality of the cargo, its conformance to the specification and its fitness for use in that country. Until the inspection has been carried out and the cargo approved, it cannot be moved to its final destination.
STEVEDORES
In the days before containerisation, the men who loaded and unloaded the ships were known as stevedores. The term stevedore comes from the Spanish estivador meaning to stow a cargo.
Loading a ship demanded special skills, to make sure that the ship did not become unbalanced and capsize. With the advent of containerisation, the need for these skills reduced considerably.
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Nevertheless, the loading and unloading of non-container vessels still takes place and in these circumstances the role of the stevedore is still crucial to the movement of goods by sea. Container vessels will handle standard ISO containers. The task of the ship operator is to secure enough traffic to fill the vessel. Although some vessels carry loose, general cargo, where volumes to be moved are below a container load, these can be routed through consolidation service providers in order to achieve the most economic rates.
MODULE 4 : MOVEMENTS
Whether movements are being made on a national or international basis, they need to be carefully planned. This module will look at : Movement. Issues involved in undertaking movements. Planning movements. Information exchange. Routine movements, taking place on a regular basis, need to be planned at the onset, but can then usually be managed fairly easily. Non-routine movements occurring on an ad hoc basis will have to be planned each time they occur. It is important to understand the types of movements that will need to be organised, the areas that need to be considered as part of the planning and the importance of monitoring information on the progress of the movement for the benefit of both the organisation managing the movement and the customer at destination.
MOVEMENT
Air, sea and rail movements will either be undertaken through the use of scheduled services or some sort of one-off spot hire arrangement. Road transport is usually seen as being more flexible, although Groupage services that run to set routines are also available for less than vehicle loads.
SCHEDULED SERVICES
Such services run to set timetables between ports, in some cases supplemented by short feeder services from a major port to other smaller ports. It is therefore necessary to plan the movement around the scheduled times. This will impact on the time the goods need to be made available for collection and movement to the railhead, port or airport, to meet a particular departure. The schedule will also influence the delivery time to the customer. In terms of these modes, delivery to final destination usually involves transhipment to road and this time factor needs to be incorporated into the overall journey time. In terms of movement by sea, smaller shippers often organise themselves through shipping conferences. Larger shippers will compete independently. All offer scheduled sailings at a regular frequency. Air cargo routes are also subject to timetables as are rail movements. There is little room for flexibility when using scheduled services.
COURIERS
Couriers are ideal for handling smaller packages, sometimes having a high intrinsic value that need to be moved quickly between two points. Usually they will offer a one stop movement from door to door. They are relatively expensive and would not normally be used for routine carriage.
SPOT TRAFFIC
For larger volumes that need to be moved on a one-off basis, spot hiring is used. This allows flexibility in terms of the timing of the movement. In sea terms, this facility is offered through chartering. This may be an entire vessel for a single journey, or some form of time based arrangement. Chartering is often appropriate if scheduled services between the origin and destination are not available, or have ceased to operate. Alternatively it may involve purchasing space on what is colloquially known as a tramper. These vessels have no fixed abode and move from port to port on a route defined by the destination of the cargoes it carries rather than a set shipping schedule. It is not always easy, however, in this situation to obtain accurate arrival times for the cargo. Similar arrangements exist for airfreight, particularly in terms of chartering an entire aeroplane. However, there are certain other factors that need to be considered for this particular mode. The range of the aircraft may be less than the distance to be travelled, requiring interim stops to be planned. The type of aircraft available may not be suitable for the goods to be moved. Outside of territorial waters, the sea is available to all, whilst airspace over a country can be restricted. Landing slot availability may constrain the capability of the aircraft to land at certain airports.
SPECIAL TRAFFIC
Situations will arise where special arrangements have to be made to move goods. This is often related to the nature of the goods. For example; heavy plant and equipment will require special slinging and stowage for sea, air and rail movement. When moving by road, special lorries, such as low loaders, may be needed, this would usually involve contracting with a specialist provider. In planning movements, it is necessary to have a clear understanding of the volume and nature of goods to be moved in order to determine the resources required for that movement. An understanding of the structure of the tariffs and rates that apply to a movement will allow break points to be identified that improve the unit cost of movement. This may influence the actual volumes being moved at a particular time.
The safety of staff employed by the organisation, whether on a permanent or temporary basis, should be a prime consideration. Appropriate training should be given and tasks assessed to identify the risks involved in executing the job. For example, if the driver of a vehicle is involved in the loading or unloading of goods, then manual handling training should be provided. In many countries, local health and safety at work legislation describes the requirements for risk
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assessment of work and also of the procedures for investigating serious accidents to staff. Staff who have an accident at work still need to be paid when on sick leave and their job will need to be covered, either by paying other staff overtime, or by paying temporary staff to cover their work. For employed drivers, records should be kept of any accidents on the road and a process of check testing should be developed to ensure individuals can be checked and retrained where appropriate. Where the activity involves movement in, for example, an earthquake zone, appropriate information on the occurrence of aftershocks, should be gathered before initiating the movement activity. Insurance cover for goods to be carried is discussed elsewhere; it is also advisable for the organisation to ensure appropriate liability insurance is in place to cover their employees. Contractual arrangements with temporary and contract workers should be checked to ensure that appropriate cover is held.
SECURITY
The security of goods and the staff involved in their movement is of paramount importance. An assessment of potential risks should be made prior to initiating movements and appropriate steps taken to remove or minimise them. Where security concerns are related to conflict zones, assistance from the military can be explored. Tracking of movements is discussed in the section below headed Planning movements.
PLANNING MOVEMENTS
Movements in a national context can usually be managed more closely than movements between or across countries. International movements will often be managed by one or more third parties, working in different time zones and in different languages. Often, international movements are planned and managed by a freight forwarder or logistics service provider. They will work within the broad plan to meet the client requirements in terms of movement time and routing. National movements can be usually planned and co-ordinated more easily. In planning movements by sea, port capability and the control of port activity needs to be understood in order to assess any possible constraints that would impede the movement of goods through them. The following factors will indicate the suitability of a port to handle the planned movements: The number, type and size of ships that can be handled at one time. Typical vessel waiting and discharge times. Availability of equipment to handle different types of consignment for example, bulk, bagged, loose, containers etc., and its state of repair. Availability of labour, working hours and typical discharge rates for both manually unloaded cargo and containers. Operational factors that may constrain activity such as the risk of congestion or the impact of the weather at certain times. Port documentation requirements and the efficiency of procedures for clearing cargo. Storage facilities and infrastructure such as railways, roads.
Ideally movements should be planned and managed by a dedicated traffic office. This will be responsible for determining the appropriate routing for the goods, allocate resource (own or contracted) and inform the destination of estimated delivery time. During the movement they will track the progress of the goods and update delivery times accordingly. They will manage the staff involved in the movement and deal with any issues that arise. They will also handle any problems that occur during the movement, liaising with contractors, freight forwarders and shippers as required. The traffic office may actually produce the required documentation to cover the transit, alternatively they will be responsible for collecting the required documents together prior to despatch. Where the movement of goods is to an area under the control of the local public authority, a clear understanding of the requirements covering movement of goods must be gained from the appropriate authority prior to initiating any movement.
INFORMATION EXCHANGE
Once movements have been planned and are initiated, it is important to maintain an information flow between all parties involved to ensure the safety and security of the goods and the adherence to service promise. In environments within which humanitarian aid organisations operate, many events can impact the efficient movement of goods. In natural disaster or conflict zones, the risk to the movement is potentially severe. Having up to date information on the status of the movement, allows problems to be quickly identified and dealt with. This is necessary not only to protect the integrity of the load but, where the organisations staff are involved in the movement, the safety of personnel as well. Where goods are being moved by a third party, the onus is on that third party to track the consignment, or the transport medium moving the consignment and either feedback the status to the sender or provide, perhaps through the use of the internet, the ability for the sender to track their goods. Where an organisation is transporting goods using its own resource, the onus is obviously on the organisation to have appropriate procedures in place to track the progress of the goods. Vehicles can be fitted with global positioning devices (GPS). These allow the base to monitor the location of the vehicle in real time and to compare its progress and route with that which has been planned. Vehicles can be equipped with cell phones or radios, to allow the driver to contact base, perhaps to give a status report, but equally importantly, to alert the traffic office of any problems that occur. Communication is of course two-way. Continuous contact with the vehicle allows the traffic office to redirect vehicles, if problems arise that the driver does not know about, such as congestion and road closures. This contact allows the sender to notify the receiver at destination of any changes to the estimated delivery times. This can be critical if the goods are urgent and perhaps lives depend on their timely arrival.
Humanitarian aid has to be moved through the supply chain, sometimes over hundreds and thousands of kilometres, usually using more than one means of transport. A number of factors will influence and impact this activity and the role of transport is to execute this movement at the right time, in the right condition, to the right place, at an acceptable cost to the organisation. It is important to recognise how the characteristics of goods impact on their handling. The movement of goods involves understanding the characteristics of those goods in order that they can be loaded, transported and unloaded correctly, so as to avoid damage, loss and possibly injury, to those involved in the movement. This therefore involves understanding the safety and security precautions and requirements that may influence the handling of the goods. For
example, food may need to be protected from adverse weather conditions and perhaps moved in a temperature controlled environment such as a refrigerated container. Medicine and drugs need to be moved in a secure vehicle and may also require to be temperature controlled. Tents and other bulky equipment may require special handling equipment to facilitate vehicle loading and unloading activity. Usually, the modal choice is constrained by weight or cube parameters. For example, if goods are being moved that have a high cube to weight ratio, the size of the transport medium must be optimised as close as possible to the permitted weight for the equipment. Conversely, if the cube to weight ratio is low, the size of the transport medium can be relatively small, as the weight limit will be reached at a low cubic capacity. The size of the goods and their weight must be considered when selecting the appropriate method of transport and handling. Goods can be unitised for transportation in various ways and the advantages and disadvantages of the various methods need to be assessed. Finally, factors which influence the demand for, and supply of goods for movement, should also be considered.
Advances in mechanical handling equipment now offer the opportunity to manage larger loads and eliminate this need to handle individual items. Handling equipment is discussed in detail in Module Three of the Warehouse Unit. Such equipment includes: Pallet loading and moving equipment. Tail lifts. Conveyors. Built in cranes. Probably the simplest and most widely used handling aid is the pallet. Pallets are designed to be lifted on to and off vehicles, using either a fork lift truck or a hand pallet truck where a loading dock is in use. It should be remembered that not all delivery points may have the equipment to offload pallets. In humanitarian aid situations, however, pallets may not be in use, or equipment is not available to handle loads received on pallets. In this situation, activity using manual labour as described above may need to be used. Tail lifts can be fitted to the vehicle, usually at the rear. They are operated using hydraulics and do not interfere with normal dock loading as they can be folded away under the chassis of the vehicle making them suitable for demountable vehicles as well. Roller conveyors can assist movement of goods into and within a vehicle. They usually comprise of a system of two or more tracks, which allow heavy loads on rollers to be moved by hand. The tracks can be either permanently fixed to a loading dock or designed to be portable. Additionally, such devices can be powered to enable rapid loading and unloading.
Some vehicles will have a small crane incorporated into the body, either behind the cab of the vehicle or in the middle of the body. These facilitate the loading and offloading of large crates or bundled/banded goods which are not actually palletised. When planning movements of goods, it is important to understand the nature of the goods to be moved and the way in which they are being transported. This will help to shape the methods and where possible the equipment that will be used to carry out the required movement.
4.1 - flammable solids such as hexamine solid fuel tablets for camping stoves; self-reactive substances and desensitised explosives. 4.2 - substances liable to spontaneous combustion under the conditions encountered in air transport such as Phosphorus that burns by itself when exposed to air. 4.3 - substances that, in contact with water emit flammable gases. I.e. "Dangerous when wet". Examples are sodium, zinc particles etc. Class 5: Oxidizing Substances and Organic Peroxides. This class has two divisions: 5.1 Oxidizing substances - substances, which themselves are not necessarily combustible, but which by yielding oxygen, may cause or contribute to the combustion of other material. An example is a generator that produces oxygen by chemical reaction. 5.2 Organic peroxides - these are thermally unstable substance which may undergo heat generating, self accelerating decomposition - which may be explosive, rapid, sensitive to impact or friction or react dangerously with other substances. An example is Hydrogen Peroxide. Class 6: Toxic and Infectious Substances. This class has two divisions: 6.1 Toxic substances - those substances are liable to cause death or injury if swallowed, inhaled or absorbed through the skin. Examples are pesticides and poisons. 6.2 Infectious substances - those are known to contain, or reasonably expected to contain, pathogens. Class 7: Radioactive material For example the waste of X-ray machines. Class 8: Corrosives - substances which, in the event of leakage, can cause severe damage by chemical action when in contact with living tissue or materially damage other freight, containers or the aircraft. Examples are mercury, battery acids etc. Class 9: Miscellaneous Substances and Articles - Substances that have a hazard in transport, but are not covered by any of the other Classes; such as magnetic articles, which can have an impact on the aircrafts compass. Internal combustion engines, dry ice (solid carbon dioxide), etc. It is the responsibility of the sender to know if the goods are hazardous. Some humanitarian aid organisations will advise or have an indicative list for the goods that they may need to move. In case of doubt, the nearest Certified Dangerous Goods Shipper should be consulted for advice and direction. As a general guide the following points are relevant : Where hazardous goods are concerned, legislation will normally cover packaging and labelling. These regulations place a responsibility on the sender of the goods. It should be remembered that if the goods have come from outside the destination country, there may be need for further labelling and perhaps repackaging to reflect any local requirements. Hazardous goods transported in bulk loads, e.g. full tanker load vehicles, tank containers transported on trucks, or bulk carriers, are also normally subjected to legislative constraints. The transit medium must conform to construction regulations and be appropriately marked. Information cards and other relevant information must usually be carried, giving full details of the load, emergency procedures.
Appropriate safety equipment must be carried, and there may be regulations concerning vehicle parking. If the journey has to be split appropriate arrangements need to be made for the temporary storage of the goods. Dangerous goods in packages or in bulk, for example chlorite, will often be covered by specific safety legislation. Certain items are prohibited from being transported at the same time in a common container or vehicle.
ABNORMAL LOADS
Often, vehicle construction and use legislation will stipulate limits on vehicle lengths, widths and weights. However, these will not apply to those vehicles which are specifically designed, constructed and used solely for abnormal loads. These loads are sometimes defined as loads which cannot be divided into smaller loads, for example, heavy plant and equipment. These vehicles will have higher length and width specifications and usually have a significantly higher maximum vehicle weight permitted. The actual transit may have to be notified to local police and an in depth knowledge of the route is required such as bridge height if the load is going under, or maximum weights if the load is crossing. Because of the nature of the vehicles required it is usually more appropriate to contract out such movements to specialist providers.
TRANSPORT OF ANIMALS
If it is necessary to transport animals using trucks, again relevant legislation should be complied with. Regulations often exist to ensure animals do not suffer distress or discomfort and that the risk of spreading disease is minimised. Vehicles may require non-slip floors, adequate ventilation, and suitable loading ramps. Provision will normally need to be made for food and water and appropriate breaks in the travel. Where airfreight is used, the aircraft must have a pressurised and insulated hold within which the animals can be carried. Regulations will often also cover the cleaning and disinfecting of vehicles. Different legislation can apply to different animals and their movement in different countries. In some countries legislation may not exist to cover the transport of animals. In this case it is important to consider best practice and to ensure the health and well being of the animals at all times.
MOVEMENT OF PEOPLE
Movement of people is often conducted in a convoy situation. Select the safest and shortest route from the place of origin to the destination. Trucks with a low centre of gravity should be used, or buses. They should be inspected and proven to have good lights, brakes, tyres and steering mechanisms. It is important to make provisions for personal effects to travel with the owners. Consider this when planning the number of people in each vehicle, or move personal effects in the trailer attached to the truck carrying the owners. Put livestock in a separate truck in the same convoy. When planning the movement, if water points along the route are felt to be inadequate, include a water tanker in the convoy. Also consider vehicle repair facilities along the route in case of
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breakdown or accidents. If inadequate, include replacement vehicles in the convoy as well as a mobile workshop with mechanics. Do not overcrowd the vehicles. In the event of a breakdown, passengers may have to double up. Prepare a passenger manifest ahead of time and check people off as they board vehicles and again on arrival at the destination. Where appropriate, medical and registration records should accompany the people. Take care of the drivers. To drive safely, they need adequate meals, rest breaks and time for vehicle maintenance. Provide relief drivers.
UNITISATION METHODS
The form of the goods to be moved will influence the manner in which the goods are transported. Some goods will be best handled loose, for example, grain in sacks. These will be handled individually, when loading and unloading vehicles. Transhipment from ships to vehicles can involve the use of slings and nets to handle a number of loose items at one time. Likewise, when being transported by air, the opportunity may exist to bulk the goods using pallets designed to fit the transporting aircraft, although on discharge these pallets often need to be stripped and returned with the aircraft. Other goods, especially those packed in cartons or boxes, can be formed into a unit load through the use of a pallet. Where the goods to be moved are irregular in shape, unpackaged, or not stackable on pallets, the use of stillages can be used to facilitate their movement and handling. Examples of stillages are shown overleaf :
Stillages are stackable for easy transportation, provide protection from damage and like most pallets are reusable.
Loading and unloading is speeded up, minimising vehicle turnround times. They offer the opportunity to optimise the capacity of the transport equipment. They provide a unit load that can be easily moved through a multi modal route. Lockable stillages and banded or stretch wrapped pallets provide some protection for the goods from damage and loss.
DISADVANTAGES
Although pallets and stillages have considerable advantages in the movement of goods, there are also some disadvantages that need to be considered : Pallets need to be correctly stacked to ensure safe transit. This may require some training off staff in the correct configuration to be assembled. Pallets need special equipment, e.g. forklift trucks, to facilitate their handling and loading/unloading. This may not always be available. Pallets come in many shapes and sizes which can make it difficult to optimise the use of the transport equipment, although the two standard sizes (1200x800 and 1200x1000) are the most commonly used. Although pallets and stillages are designed to be reused, it is sometimes difficult to recover them once they have been delivered to the final destination. If final deliveries are to be made in less than pallet quantities to a particular customer, there is a trade off to be considered between optimising the vehicle capacity use and the time involved in consolidating consignments for different customers onto one pallet.
CONTAINERISATION
The container provides an effective and secure way of moving goods between nodes. It offers a flexible solution for the transport of goods; it is effectively a box that is capable of being transported using a variety of different modes of transport, such as sea, road and rail. Containers may contain a full load of an organisations goods (referred to as FCL or Full Container Load). Where an organisation has a smaller volume to move it can be referred to as an LCL (Less than Container Load) and will normally be consolidated with other cargo destined for the same port. There are certain standards that apply to the dimensions of basic shipping containers, regulated by ISO (International Standards Organisation). Within the overall dimensions, the design of containers can be very varied. The basic size of a container is 8 feet wide by 8 feet 6 inches high. Standard containers are available in lengths of 10, 20, 30 and 40 feet. Higher cube containers can have a height of around 9 feet 6 inches. Half height containers are available for heavy goods where cubic capacity is not important. Maximum gross weights apply. The container's Tare weight (i.e. the weight of the empty container) will also be specified in order to determine the maximum permitted payload. The range of lengths gives an opportunity to build load sizes, which optimise capacity. Sometimes a larger sized container than required will be supplied for a particular shipment. This is in order to optimise the return load logistics of the operator.
There are advantages and disadvantages to containerisation, which will be discussed in this section.
ADVANTAGES
They offer a means of consolidating cartons, boxes etc. into a manageable unit load. Providing due care is taken in loading and unloading a container, the product packaging need not be as robust as would be required for un-containerised transit. A container whose capacity is fully utilised provides an economic transport solution. Containers offer the opportunity to optimise the capacity of the carrying medium, be it road, rail or ship. They are secure and considerably reduce the risk of theft and pilferage of goods. They provide an opportunity to offer, through the use of different transport modes, an end-to-end service from supplier to customer.
DISADVANTAGES
They require sophisticated handling techniques. Although the rail and ship operators will have infrastructure in place to handle containers, this may not necessarily apply to all port facilities. This will sometimes result in slower transit times overall. Lack of handling facilities at donors and other suppliers premises and at ports and airports, may tie up trailers and vehicles, for example, while containers are stuffed and de-stuffed. Often, containers will be used on trips where the container operator cannot secure a return load. This may delay the return of containers and occasionally result in nonavailability. There is a vast range of containers available. There are three main types of box container : Non-insulated containers have a standard construction, protect against weather and theft, but offer no real protection against extremes of temperature. Insulated containers are lined to prevent heat loss, but constructed to ensure airflow around the goods is maintained. Refrigerated containers have a built-in unit which keeps the goods, chilled or frozen as required. They obviously require a power source to maintain the temperature level. There are many container variants available to suit different types of goods and materials. The major types are : Standard box containers allow access through end doors, and usually have internal lashing points. Open sided containers have walls of mesh, and are often used to transport hazardous goods. Otherwise, they will be curtain sided to allow side access to the container for loading and unloading purposes. Tank containers comprise a transit tank of dimensions to fit a standard container size. The tank is constrained by a rigid framework.
Top loaders, allow the roof to be removed to allow an irregular shaped load, for example, to be dropped in from above. Flats provide a sound bed upon which cargo such as engineering equipment can be moved. They will have end gates and lashing points. Within the standard dimensions, there is very little that cannot be transported by container.
From a demand management perspective, rapid onset allows little time for planning and the requirement for trucks, for instance, cannot be easily assessed. In slow onset situations and where rapid onset situations have stabilised, more time is available to assess ongoing demand and plan for the servicing of it over time. If the humanitarian aid agency is operating in isolation, or with only a small number of other agencies, whilst this can facilitate activity planning, it can also place a significant burden upon the participating organisations. In terms of the three phases of humanitarian response, the first (emergency relief phase) is obviously the most critical. This phase needs to be executed quickly and will place a considerable strain on the resources available. Indeed in many cases it may be necessary to secure the resources to move goods before any goods are actually moved. This may be a challenge if a number of organisations are competing for a limited amount of resource. As the response moves to the next phase, levels of demand may change, especially if people are relocated whilst the reconstruction is taking place. The reconstruction phase will vary in length and level of demand and the nature of the demand to be managed will change; this may also change the type and numbers of transport equipment required.
Factors affecting route scheduling. Route planning techniques. General route configurations.
PRIMARY DISTRIBUTION
We shall first look at planning and scheduling primary distribution. The planning objectives involve the maximisation of load carried, minimisation of distance travelled and its associated time and the minimisation of time spent loading and unloading. In humanitarian aid situations, primary transport is often carried out using rigid vehicles. However, where articulated vehicles are used, it is important to think of them as two separate units, the tractor and trailer. This allows the flexibility of this type of vehicle to be used to the full. Thus traffic should be organised so as to make maximum use of each. This generally means using more trailers than tractor units, with the spare trailers being unloaded and loaded at the most convenient time and the driver being kept as long as possible. This will increase the percentage of loaded running time for the trailers and tractor units. For example, if the operation involves undertaking regular work between two storage depots or warehouses it may be beneficial to leave one or more trailers at each location, so that the driver need stay at the site only to uncouple the trailer being delivered or returned and collect another trailer. The stand trailer can then be loaded/unloaded at a convenient time to suit the warehouse operation. An important decision when using such an operation is the ratio of the number of trailers to the number of tractor units. In order to achieve a reasonable degree of flexibility, an average ratio of 1.5 trailers per tractor is more likely to be financially acceptable. There are two main methods of organising trunking operations using articulated vehicles and these are known as relay trunking and balanced trunking.
RELAY TRUNKING
Relay trunking is used when two articulated vehicles travel regularly from different directions to an intermediate depot. The operation can be organised so that they travel to the intermediate depot and pick up a trailer for local deliveries in the afternoon. The trailer from the other vehicle can be coupled up for the return trip. In this way, the two articulated vehicles can undertake both long distance trunking operations and local deliveries from the intermediate depot.
BALANCED TRUNKING
Balanced trunking is an alternative way of using two articulated vehicles to have an intermediate transfer point, which is more or less half way between the two distant depots. To cover the total return distance could mean an overnight stop for the drivers but by exchanging loads at the transfer point and returning with the other trailer, both trips can be made within the driving day.
SECONDARY DISTRIBUTION
Local delivery to final destinations such as feeding stations and other extended delivery points, can involve multi-drop operations. They are typically relatively small consignment sizes and are usually referred to as secondary distribution. There are a number of scheduling factors that can influence the efficiency of a secondary distribution operation.
Regardless of whether a computerised or a manual system is in use, there are a number of factors to be considered.
General Constraints
Availability of drivers and their level of training. Type of licenses held by the drivers. Possible restrictions on work arrangements, for example, related to trade union rules. Hours and shift patterns and compliance to government working hours legislation.
Organisation Characteristics
Service policy. Vehicle capacity target. Ability to contract additional resource.
Environmental Characteristics
Road infrastructure. Road conditions for example, road works or road closures, or bridges having been destroyed. Travel problems, for example security issues during conflict situations Climatic conditions, for example during the rainy season. Legal restrictions - time of operation, weight restrictions. It is vital that a road assessment is always carried out prior to the route planning taking place, as this could significantly impact the way this activity is approached. All the above factors can be built into a model to illustrate the load planning operation. The model is illustrated below :
DAY TO DAY OPERATIONAL CHARACTERISTICS NATURE AND AVAILABILITY OF VEHICLES NATURE AND AVAILABILITY OF LABOUR
DERIVED LOAD PLAN CUSTOMER SERVICE LEVEL ACHIEVED COST AND EFFICIENCY ACHIEVED
In summary, the vehicle routing and scheduling process needs to fulfil the following objectives : Maximising vehicle payload (by maximising vehicle fill out and back) and maximising vehicle utilisation (by maximising number of loaded journeys per vehicle) whilst Minimising distance (e.g. by minimising overlapping deliveries) and minimising time (e.g. by minimising non moving time) subject to Meeting customer requirements, in terms of cost, service and time and meeting legal requirements, in terms of vehicle capacity and drivers hours.
satisfy the demands of the customers, take account of legal requirements and reflect the efficient and cost effective use of the operators resources. A satisfactory solution should provide a schedule of routes that minimise either total distance or time travelled by vehicles. Route planning involves an investigation of all possible routes, applying the following operational conditions : The number of calls to a particular delivery point in any single day is limited. The total vehicle travel in any day is limited and the driver's time is limited. Vehicles have a fixed carrying capacity. Volume of goods for each delivery point is known and each drop has a location for which there is an established driving time to and from the warehouse or to the next delivery point. The quantity of goods delivered to any drop is smaller than the vehicles carrying capacity and there is an established time to deliver/collect at the drop point. A vehicle route is scheduled by taking one order and establishing the time from the depot to the drop, adding the time taken to deliver at the drop and checking that the total time available to the driver is not exceeded and that the vehicle is not over capacity. The next order in geographic proximity is then identified and the time taken to drive from the first customer is added. To this is added the time taken to deliver at the drop. The result is then again checked to ensure that the total time available to the driver is not exceeded and that the vehicle is not over capacity. This procedure continues until one or both of the two constraints are reached; this then fully utilises the available driver's time or the vehicle capacity. This procedure is then repeated for another vehicle until all orders are allocated or all available vehicles are fully loaded. In terms of the calculation of driving time it should be remembered that it is important to use an average speed, related to the type of vehicle, the nature of the roads over which the journey is taking place and to allow for such things as delays at junctions, hills and urban congestion. Also, for example, climatic conditions may need to be considered. In practice, average speed will be considerably less than the maximum permitted speed for a road.
In humanitarian situations, routes may in practice be much simpler. Typical configurations may link a number of delivery locations, serviced by one vehicle, such as shown below :
Warehouse
Warehouse
SELECTION CRITERIA
Five key selection criteria need to be examined; cost provides the opportunity for an objective assessment. Although other users and the provider himself may be willing to share data on capacity, availability and reliability, sometimes only a subjective assessment can be gleaned. Usually the general reputation will be a subjective measure.
REPUTATION
The reputation of the provider for service, reliability and condition of equipment is important. If your organisation has contacts in the area in which the provider operates, they should be used to get a view of the providers reputation. If information is not available from your own network of contacts, have the operator provide the names of existing clients for whom he does work and ask them for an opinion on the provider.
RELIABILITY
Reliability is about rail, sea and air freight operators publishing, and keeping to, timetables and schedules. In terms of road transport it is about the provider being able to meet time requirements and constraints both at the point of loading and at the delivery point. Specifying delivery times usually sets a collection/loading requirement. Is the provider able to demonstrate an understanding of this relationship, coupled with realistic journey times? Another important point to consider is the providers ability to demonstrate reliable and consistent service delivery over a period of time.
CAPACITY
It is important to know the available capacity of the provider and its relationship to the forecast demand that your organisation need to be transported. An understanding of how this capacity is made up; the range of truck sizes available for example, as well as the total capacity available is important. This will be influenced by the volumes to be moved for other customers and the fluctuations in those volumes due to such factors as seasonality; the nature of other customers relationship with that provider and the providers perceived or demonstrated ability to flex the capacity to meet customer requirements.
AVAILABILITY
This is linked to capacity. Availability is an indicator of the providers ability to manage the demand placed on the equipment by its customers and if running a mixed fleet, its ability to manage that range of individual capacities. It is also an indication of the way it manages the servicing, maintenance and repair regimes that are in place and that can influence the number of pieces of equipment available at any one time.
COST
Cost primarily relates to the price that the provider will charge for the service being provided. If the costs of different providers are to be compared, the basis of those costs should wherever possible be quoted in the same way. The relationship between load and part load rates may vary from provider to provider and it is difficult to compare rates quoted per load with rates based on a distance parameter. In reviewing the quoted costs, it is also useful to consider whether the service provided will create any additional costs within the organisation. If this is the case, they should be included in the overall financial comparisons.
Although there may not be enough time to carry out a full assessment of these factors, they should all be considered to some extent before a purchase decision is made. If there is time to fully assess providers, especially where a longer term contract is envisaged, then it may be useful to use some form of numerical rating process to score the various factors. This will then allow the possible providers to be ranked prior to the final selection being made.
PURCHASING RULES
Most organisations will have a purchasing function of some description. They will usually lay down the guidelines for the selection process for suppliers. In some cases, this will extend to full involvement in the identification and selection of providers and the issuing of contracts. If the process involves issuing an invitation to tender, purchasing often will require advice on suitable transport providers to whom the invitation will be issued. Where no contract as such is made with a provider, there may be a process in place for selecting an approved list of suppliers. These may offer a range of services and will be selected on a oneoff basis depending on the nature of the work to be done and their availability at the time required. It is also likely that purchasing rules will detail the evaluation process for supplier performance. This will be examined later in the section headed Managing transport providers.
It should be remembered that these bodies will only be able to provide general information; they will not recommend providers. However, if the questions asked are properly structured to reflect the particular nature of the transport activity that is planned, responses from such bodies will provide useful information to contribute to the overall selection decision.
There are a range of services that might be provided under contract. They will include, for the road mode : Provision of a vehicle or vehicles under the management of the aid organisation for either a short spot hire requirement or on a longer term basis. The charging will usually be quoted on a day or weekly rate basis. Provision of vehicles and drivers under the management of the aid organisation for either a short spot hire requirement or on a longer term basis. The charging will usually be quoted on a day or weekly rate basis. Provision of trucking services to collect and deliver goods. There are different ways that the charging basis of the contract can be put together. The main variations are: Fixed Cost - This would normally be quoted as a cost per load or consignment for a particular fixed journey. This type of contract is usually only used where the volumes to be moved, the routes covered and the service required are very predictable. Rate per Unit - This will stipulate the charge that will be made for transporting the goods. The terms of the charging could be expressed as a cost per case, per day, per man hour, per kilometre or per pallet kilometre. Open Book/Cost Plus - Where an organisation is looking for a long term contract, the open book arrangement may be used. Once the required service is determined, the client and the contractor will agree the resources required to provide the desired level of service. The contract price is then set at the cost of the resources used plus a management fee for running the operation. The client has access at any time to the actual resource costs incurred in running the operation.
VERIFICATION OF DOCUMENTATION
As part of the contract terms, where a haulier is providing the delivery service it is important to verify that the delivery of the goods has been made. When booking the load, the haulier will normally prepare a consignment note. This will state the collection and delivery locations, required time of delivery and the nature of the consignment. In addition, the aid organisation will raise its own delivery documentation. The signed haulier documentation will act as proof of collection and delivery and a copy should be returned to the aid organisation in order to support payment of the haulier invoice. The contract terms need to be available in order to check that the haulier has charged for the work at the appropriate rate. Also, the organisations delivery documentation should be signed by the receiving location, and returned by the haulier. If the receiving organisation is paying for the goods and/or the haulage, these documents will be required to support invoicing procedures.
documentation will be haulier consignment notes. Depending on the nature of the contract and the ability of the haulier to provide feedback, data may be provided by them to confirm that the contract level of performance is being met. Performance data will be both hard and soft. Hard data will relate to such things as on time delivery, in full delivery, damages and costs. It may be possible to gather some soft data related to the despatching and receiving organisations perception of the service provided by the haulier in terms of such attributes as driver attitude, condition of vehicles and flexibility. Performance data should be collected on an ongoing basis and presented weekly or monthly depending on the requirements of the organisation and the level of activity of the provider.