Vietnam Logistics Research and Development Institute

5th Floor, Saigon Port Building, Dist 4, HCMC

Tel: (+84) 28 7301 8689 – Email: vli1@[Link]
Website: [Link]

Welcome to CHAPTER 4

Module 3 – Maritime Containers Page 1

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Chapter 4: COMPLETION OF
FREIGHT FORWARDING ORDER
Objectives

 Identify waybills as a transport document

 Distinguish waybill and a bill of lading.

Contents
 Export process
 Import
 Accompanying documents for container shipping
 EDI Transmission

Module 3 – Maritime Containers Page 2

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 EXPORT PROCESS

Module 3 – Maritime Containers Page 3

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 EXPORT PROCESS
1. Negotiate and sign a contract
2. Applying for an export license
3. Booking and taking an empty container
4. Preparing export goods and checking export goods
5. Packing, shipping signs (shipping mark)
6. Buy shipment insurance
7. Doing Customs procedures
8. Loading on Vessel
9. Payment of goods
Module 3 – Maritime Containers Page 4
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 IMPORT
1. The importer receives a notification when the
goods arrive
2. Register the certification related to the shipment
3. Customs declaration of imported goods
4. Open and clear custom declarations
5. Liquidation of declaration
6. Article warehouse transport of goods to the
warehouse
7. Stripping goods and returning the empty container
8. Keep records and vouchers
Module 3 – Maritime Containers Page 5
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
1. Proforma Invoice
A proforma invoice looks a lot like a commercial invoice, and if you complete it
correctly, they will be very similar indeed. A proforma invoice specifies the following:
 The buyer and seller in this transaction.
 A detailed description of the goods.
 The Harmonized System classification of those goods.
 The price.
 The payment term of the sale, which would typically be expressed as one of the
11 current Incoterms.
 The delivery details including how and where the goods will be delivered and
how much that will cost.
 The currency used in the quote, whether it’s U.S. dollars or some other
currency.

Module 3 – Maritime Containers FIATA Diploma in Page 6

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
2. Commercial Invoice
The commercial invoice includes most of the details of the entire export
transaction, from start to finish.
The commercial invoice may look similar to the proforma invoice you
initially sent your customer to serve as a quote, although it should
include additional details you didn’t know before. For example, once
you have the commercial invoice, you probably have an order number,
purchase order number, or some other customer reference number;
you may also have additional banking and payment information.
Make sure to include any relevant marine insurance information, and
any other details that will ensure prompt delivery of the goods and full
payment from your customer.

Module 3 – Maritime Containers FIATA Diploma in Page 7

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
3. Packing list
An export packing list may be more detailed than a packing list or packing slip you
provide for your domestic shipments.
Your freight forwarder may use the information on the packing list to create the bills
of lading for the shipment.
A bank may require that a detailed packing list be included in the set of documents
you present to get paid under a letter of credit.
Customs officials in the U.S. and the destination country may use the packing list to
identify the location of certain packed items they want to examine. It’s much better
that they know which box to open or pallet to unwrap rather than have them search
the entire shipment.
The packing list identifies items in the shipment and includes the net and gross
weight and dimensions of the packages in both U.S. imperial and metric
measurements. It identifies any markings that appear on the packages, and any
special instructions for ensuring safe delivery of the goods to their final destination.
Watch this four-minute video to learn how to create a packing list.
Module 3 – Maritime Containers FIATA Diploma in Page 8
International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
4. Certificate of Origin
Some countries require a certificate of origin for your shipments in order to identify
in what country the goods originated. These certificates of origin usually need to be
signed by some semi-official organization, like a Chamber of Commerce or a
country’s consulate office. A certificate of origin may be required even if you’ve
included the country of origin information on your commercial invoice.
Usually a Chamber of Commerce will charge you a fee to stamp and sign your
certificate or requires you to be a member of the chamber. You’ll need to deliver a
completed form to the chamber office where they will stamp and sign it for you.
More and more companies are foregoing the time-consuming process of relying on
expensive courier services or taking the time to hand-deliver a certificate of origin to
a chamber of commerce for certification and are relying on electronic certificate of
origin (eCO) for their shipments. An eCO is often quicker to turn around, allows you
the option of delivering the certificate electronically to the importer, and can be
registered with the International Chamber of Commerce to provide added credibility.

Module 3 – Maritime Containers FIATA Diploma in Page 9

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
5. Shipper’s Letter of Instruction

One of the most important people you will work with in the export
process is your freight forwarder, who usually arranges the transport of
your goods with a carrier and helps ensure you’ve taken care of all the
details.
Depending on your agreed-upon terms of sale—remember, that’s
typically the Incoterm you choose—either you hire a freight forwarder to
work for you, the exporter, or, in the case of a routed export transaction,
the buyer hires a freight forwarder.

Module 3 – Maritime Containers FIATA Diploma in Page 10

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
6. Bills of Lading

There are three common Bill of lading documents: inland,

ocean, and air waybill:
 Inland Bill of Lading
 Ocean Bill of Lading
 Airway Bill

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International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
7. Dangerous Goods Forms
If your products are considered dangerous goods by either the International Air
Transport Association (IATA) or the International Maritime Organization (IMO),
you need to include the appropriate dangerous goods form with your shipment.
Shipping dangerous goods or hazardous materials can be tricky. Before you do
it, the appropriate people at your company need to be trained in the proper
packaging, labelling and documentation of these shipments.
The IATA form—the Shipper’s Declaration for Dangerous Goods—is required
for air shipments. There is a different version of the form for ocean shipments.
Again, these forms need to be completed by someone who has been trained to
handle dangerous goods shipping.

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International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 ACCOMPANYING DOCUMENTS FOR
CONTAINER SHIPPING
8. Bank Draft
A bank draft is an important part of the international sales process for
transferring control of the exported goods from the seller in exchange for funds
from the buyer. It is often called a documentary collection, because the seller
attaches various documents to a bank draft and a cover letter.
Usually, the seller’s bank will send the bank draft and related documents via the
freight forwarder to the buyer’s bank or a bank with which it has a relationship
in the buyer’s country. When the buyer authorizes payment for the goods, the
buyer’s bank releases the documents to the buyer and transfers the funds to
the seller’s bank.
The bank draft may or may not include a transmittal letter, which includes
details of the bank draft transaction including the types of additional documents
that are included and payment instructions.

Module 3 – Maritime Containers FIATA Diploma in Page 13

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 EDI TRANSMISSION
 EDI: Electronic Data Interchange
 To meet the need for fast document
transmission.
 Completion of sea waybill: be computerised
• Sea waybill to agent at destination by EDI;
• Computer receives then printed and is used
as a Notification of Arrival (N/A)
• It is non negotiable B/L

Module 3 – Maritime Containers FIATA Diploma in Page 14

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Vietnam Logistics Research and Development Institute
5th Floor, Saigon Port Building, Dist 4, HCMC
Tel: (+84) 28 7301 8689 – Email: vli1@[Link]
Website: [Link]

End of CHAPTER 4

Module 3 – Maritime Containers Page 15

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Vietnam Logistics Research and Development Institute
5th Floor, Saigon Port Building, Dist 4, HCMC
Tel: (+84) 28 7301 8689 – Email: vli1@[Link]
Website: [Link]

Welcome to CHAPTER 5

Module 3 – Maritime Containers Page 16

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Chapter 5: OFFERS AND PRICING
Objectives
 The learner should discuss different contractual options for seaborne
multimodal container transport.
 The learner should explain the meaning of the different commercial
terms in container shipping.
 The learner should classify the different main types of contracts
between intermodal carriers and merchants.
 The learner should be able to explain the basic concept of sea freight
tariffs, important surcharges and learner should be able to make a
basic calculation of sea freight.

Module 3 – Maritime Containers Page 17

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Chapter 5: CONTRACT and
PRICING in Container Transport
Contents

 General Contract Terms

 Haulage Rates (inland charges)
 Ocean Freight and its important surcharges
 Terminal Handling Charge (THC)
 Container cleaning charges
 Detention/Demurrage charges
Module 3 – Maritime Containers Page 18
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 GENERAL CONTRACT TERM
Different types of services and contracts
Organisation of the pre- and post-carriage on the
responsibility of the sender. The shipping company provides
its own containers for an extra charge (equipment handover
Merchants haulage charge). The delivery and re-delivery of the container is not
included. The sender has to conclude a contract of
affreightment with the MTO.

Organisation of the pre- and post-carriage on responsibility

of the MTO. The sender is liable to provide the cargoes for
Carriers haulage loading within a defined time. The sender concludes only
one multimodal transport contracts with an MTO.

All possible combinations of merchants and carriers

haulage. For example: Organisation of the pre- and post-
Mixed arrangements carriage on responsibility of the sender. The shipping
company provides its own containers (for an equipment
handover charge) on the point of loading.
Module 3 – Maritime Containers Page 19
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 GENERAL CONTRACT TERM
Different
MERCHANT typesCARRIERS
of services and contracts
MIXED
HAULAGE HAULAGE ARRANGEMENTS

Organization of Pre- Organization of pre-

and Post- carriage: and post- carriage:
All possible
on the responsibility of on the responsibility of combinations of
the Sender the MTO Merchant and Carriers
haulage

Eg.
Shipping company: Sender: is liable to Organization of pre-
provides its own provide cargo for and post- carriage on
container for extra loading within a defined the responsibility of the
charge time sender
Shipping company:
provides its own
container on the point
of loading
Delivery and re-
delivery container: Sender: only one
Exclude multimodal transport
Sender: contract of contract with MTO
affreightment with MTO

Module 3 – Maritime Containers Page 20

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 GENERAL CONTRACT TERM
Different types of services and contracts

 FCL - Full Container Load

The full container is utilized and booked by the client.
Usually FAK or commodity box-rates apply
 LCL - Less than Container Load
Parcel Load which does not fill a whole container. Usually,
commodity rates apply according to W/M weight or
measurement in carrier options. Forwarder-type-MTO
consolidates high priced cargoes and books lower priced
FCL.

Module 3 – Maritime Containers Page 21

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 GENERAL CONTRACT TERM
Different types of services and contracts
 Single vs. Service Contracts
To assure a constant amount of freight for the carrier/MTO and constant service
levels and freight rates for the sender, it is common to conclude service
contracts.
Contents checklist for negotiating service contracts:
• Name of the sender (handled confident)
• Ports of shipment and destination
• Destinations
• Kind of freight or FAK (freight all kinds)
• Contracts or scale of rate
• Opening and final dates
• Service liabilities for the shipping company/MTO
• Additional agreements, sanction clauses

Module 3 – Maritime Containers Page 22

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 GENERAL CONTRACT TERM
Minimum Bill of Lading
A minimum bill of lading - minimum billing or minimum
charge - is often required in a freight service.
In ocean freight, a minimum of usually 2 or 3 CBM (cubic
meters) is required.
The freight consolidator may specify the minimum
requirement in a dollar amount, instead in CBM.
In air freight, a minimum of usually 1 kilogram is required. If
a consignment is light and small, it is more economical to
ship by air rather than by sea considering the benefits of air
freight.
In road and rail freight, the minimum requirements vary
widely among carriers.
Module 3 – Maritime Containers Page 23
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 HAULAGE RATES
(Inland Charges)
 Loading / discharge of transshipment containers
(per 20’ and 40’)
 Loading / discharge of origin / destination
containers (per 20’ and 40’)
 Other moves
 Lashing charges
 Storage / Warehousing activities
 Stuffing / Tripping activities
 Overtime
Module 3 – Maritime Containers Page 24
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES
Terminal Handling Charge for Vietnam as of
August 2017 by CMA-CGM (in VND)
20’ 40’ 45’ 20RF 40RF
All kinds of Not incl
Normal tax 2,400,000 3,750,000 4,500,000 3,180,000 5,220,000
Equipment
Incl.
tax 2,526,240 3,947,250 4,736,700 3,347,268 5,494,572

All kinds of Not incl

Special tax
3,180,000 5,220,000
Equipment
(Open Top, Incl.
Flat Rack) tax 3,347,268 5,494,572

Module 3 – Maritime Containers Page 25

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES
Storage charge at Tan Cang Cat Lai
Unit: VNĐ/container-day
Storage charge at container yard
Storage period
20' 40' over 40'
1 Container general 34.000 50.500 76.000
2 Container specialized (IMDG), overweight, oversize:

Until day 7th 50.500 76.000 113.500

Day 8th-14th 67.500 101.000 151.500

Day 15th- 30th 84.000 126.000 189.000

From day 31st 101.000 151.500 227.000

Module 3 – Maritime Containers Page 26

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES
Container storage charges at DP World Terminal
(as of 2017) in AED
Import Up to Over 20’ OOG- Up to OOG- Over
20’ 20’ 20’
First 10 days Free Free Free Free
Next 5 days 82 164 246 492
Thereafter 153 306 459 918
Export Up to Over 20’ OOG- Up to OOG- Over
20’ 20’ 20’
First 10 days Free Free Free Free
Next 20 days 31 62 93 186
Next 30 days 41 82 123 246
Thereafter 82 164 246 492
Transhipment & Up to Over 20’ OOG- Up to OOG- Over
Empty Containers 20’ 20’ 20’
First 10 days Free Free Free Free
Next 90 days 12 24 36 72
Thereafter 24 48 72 144
Module 3 – Maritime Containers FIATA Diploma in Page 27
International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES
Typical Miscellaneous Charges
Charge per Move
Service Type
Least expensive Average Most Expensive

Restow via quay $27 $57 $95

Restow on board $22 $52 $85
Special gear* +55% +50% +200%
Hatch cover moves $27 $52 $367
 Special gear charges are a surcharge on the relevant size of the
unit handled (for example 20ft or 40ft)

Module 3 – Maritime Containers Page 28

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES

Stuffing/ unstuffing charges at CFS of DP World

Cargo Type Charges in AED per Freight Ton
For transhipment/ 24
export Cargo
For import Cargo 26
For hazardous Cargo 50% extra will be charged as
handled in CFS surcharge in addition to Port
handling charges

Freight Tons = Max (CBM & MT)

where CBM = Cubic Meters, MT = Metric Tons
Module 3 – Maritime Containers Page 29
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES
Table CFS Miscellaneous services at DP World Terminal (in AED)
Service Charge
Container Outer Inspection & Monitoring 50 / container
Extender Fitting on F/Rack Container 260/ container
Re-arranging import cargo 26 / freight ton
Re-arranging export cargo 24 / freight ton
Vehicle lashing on special stand 715 / stand
Palletization at CFS – with material 80 / pallet
Palletization at CFS – without material 45 / pallet
Inspection of lashing 55 / container
Door opening and closing for inspection 140 / container
Freight Tons = Max (CBM & MT)
where CBM = Cubic Meters, MT = Metric Tons
Module 3 – Maritime Containers FIATA Diploma in Page 30
International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 TYPICAL INLAND CHARGES
Typical Reefer Box Charges
Least Most
Average
expensive Expensive
Charge per
25 31 70
reefer unit

Typical Lashing Charges

Least Most
Average
expensive Expensive

Charge per unit 8 10 15

Module 3 – Maritime Containers Page 31
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OVERTIME CHARGES

 Overtime is paid whenever a service is carried

out outside the terminal’s normal working hours
(for example) public holidays or weekends.

 The rates vary from 50% to 100% uplift on all the

vessel and landside operation charges.

Module 3 – Maritime Containers Page 32

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 INLAND TRANSPORT LINK
 Good quality, competitively priced road and rail
access: important for gateway ports

By Road By Rail

20ft 40ft 20ft 40ft

Bilbao 640 640 250 385

Algeciras 1085 1085 360 495

Module 3 – Maritime Containers Page 33

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
RATING CONCEPT

Calculation of a sea freight rate can be

excuted in 2 different ways:
• FAK- rates (freight all kinds)
• Commodity- based rate (CBR)

Module 3 – Maritime Containers Page 34

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
FAK- RATES
 FAK = Total cost for running a container line /
planned amount of transprted TEU’s
 Result: Break-even per TEU
 Problem: results from equal transportation
charge for low and high valued cargoes
 For certain commodities a transport to
actual cost of transportation is not possible

Module 3 – Maritime Containers Page 35

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
FAK- RATES
 The problem of FAK-rates results from the equal
transportation-charge for low- and high-valued
cargoes in the selling-price calculation. But the
senders must be assured, that the money they
pay will not drive the price of their goods above
the competitive level of the markets where they
trade. So for certain commodities a transport to
actual costs of transportation is not possible.

Module 3 – Maritime Containers Page 36

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
FAK- RATES
 To calculate an FAK-rate, the total costs for
running a container line (including pre- and post-
carriage) are divided through the planned amount
of transported TEU´s. The result is the Break-
Even per TEU. The freight rate per TEU results if
a profit mark-up and possibly a risk mark-up is
added.

Module 3 – Maritime Containers Page 37

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
COMMODITY- BASED RATES (CBR)
 Employed rating concept depends on:

• The level of homogeneity of the freight volume

• The level of containerizations

• Concentration ratio of supply and demand

• Pricing policy of alternative carriers

Module 3 – Maritime Containers Page 38

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
COMMODITY- BASED RATES (CBR)
 Shipping companies set rates that permit the
movement of low-valued cargoes
 Carriage may be performed at a financial loss to
the company
Solution:
• Set the rates for items for high value: absorb the
loss incurred on the low value commodities
• Means: cross-subsidisation
Module 3 – Maritime Containers Page 39
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
Comparative Container Rates for Average Products ($) 20’ 40’
To North-European sea port
 Indian subcontinent (average East/West) 3,700 5,200
 Pakistan 3,650 4,800
 Central America 2,700 5,200
 Southern Africa 3,000 5,800
 Eastern Africa 3,000 6,300
 Western Africa 3,200 5,000
To US port
 Indian subcontinent (average East/West) 4,300 8,000
 Pakistan 3,900 7,400
To Middle East (Dubai)
 Indian subcontinent (average East/West) 2,800 3,900
 Pakistan 2,650 3,750
To Far East
 Indian subcontinent (average East/West) 2,200 4,300
 Pakistan 2,075 4,150

Module 3 – Maritime Containers Page 40

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
SURCHARGES on the basic of Ocean Freight
CAF:
• CAF = Currency Adjustment Factor
• Is often quoted with freight rate in times of
unstable currency
• To cover an additional charge for currency
appreciation
• Is indicated on B/L (if any)
• CAF allows for fluctuations in the value of the
USD against the currency
Module 3 – Maritime Containers Page 41
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
SURCHARGES on the basic of Ocean Freight
BAF:
• BAF = Bunker Adjustment Factor
• Is often quoted with freight rate in times of
unstable oil prices
• To cover an oil price hike
• Is indicated on B/L (if any)
• CAF allows for fluctuations in the cost of oil
Module 3 – Maritime Containers Page 42
FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
From Ho Chi Minh City to Long Beach, CA. date
ETD August 26 2017 (Main charges)
Charges Currency Rates
20 40 40HC 45
BAF03- Surcharge NOS USD 281/ UNI 312/ 351/UNI 395/
UNI UNI
THC34- Terminal handl. USD 500/ UNI 600/ 600/ 700/
Ch destination UNI UNI UNI
THC58- Terminal handl Thousand 2400 3750 3750 4500
ch origin VND

Module 3 – Maritime Containers FIATA Diploma in Page 43

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 OCEAN FREIGHT
Main charges for Dry cont from HCMC to
Shanghai, ETA: 26 August 2017
Charges Currency Rates
20 40 40HC 45
BAF03- Bunker USD 60 / TEU 60 / TEU 60 / TEU 60 / TEU
surcharge NOS
THC34- Terminal CNY 780/ UNI 1165/ UNI 1165/ UNI 1515/ UNI
handl. Ch
destination
THC58- Terminal Thousand 1848 2838 28383410
handl. Ch origin VND

[Link]

Module 3 – Maritime Containers FIATA Diploma in Page 44

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Terminal Handling Charges
(THC)

THC are fees charged by the shipping terminals

for the storage and positioning of containers
before they are loaded on a vessel.
The charges usually consist of goods handling,
unloading the container, stacking and crane
service.

Module 3 – Maritime Containers Page 45

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Container Cleaning Charges
 This is the cost paid to the shipping line to clean
the empty container after stripping and returns the
empty container at the depots.
 Shipping Lines is responsible for ensuring that
deliver empty container in good, clean and
seaworthy condition to shipper for stuffing cargo.
 When stripping cargo by Consignee at place of
delivery/ destination, consignee have to return
empty container with same condition.
Module 3 – Maritime Containers FIATA Diploma in Page 46
International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Container Cleaning Charges
 Additional Cleaning Charges:
+ Washing by Water
+ Washing by Detergent
+ Washing by Chemical

Module 3 – Maritime Containers FIATA Diploma in Page 47

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Detention/Demurrage Charges

 Demurrage and detention charges have been

widely used in container shipping.
 Demurrage refers to the charge that the merchant
pays for the use of the container within the
terminal beyond the free time period.
 Detention refers to the charge that the merchant
pays for the use of the container outside of the
terminal or depot, beyond the free time period.

Module 3 – Maritime Containers FIATA Diploma in Page 48

International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Vietnam Logistics Research and Development Institute
5th Floor, Saigon Port Building, Dist 4, HCMC
Tel: (+84) 28 7301 8689 – Email: vli1@[Link]
Website: [Link]

End of CHAPTER 5

Module 3 – Maritime Containers Page 49

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Vietnam Logistics Research and Development Institute
5th Floor, Saigon Port Building, Dist 4, HCMC
Tel: (+84) 28 7301 8689 – Email: vli1@[Link]
Website: [Link]

Welcome to CHAPTER 6

Module 3 – Maritime Containers Page 50

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Chapter 6: GEOGRAPHY OF
CONTAINER TRAFFIC
Objectives
 The learner should name main ports and main land and shipping
routes for container transport.
 The learner should describe of the development of container
transport in Europe.
 The learner should Identify the concept of hub-and-spoke-systems in
multimodal container transport, also in connection to feeder services.
 The learner should explain the principles of hub-spoke-systems,
feeder services. and land bridges. The learner should discuss the
reasons for their development.

Module 3 – Maritime Containers Page 51

FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
And Development Institute
 Chapter 6: GEOGRAPHY OF
CONTAINER TRAFFIC
Contents
 The Container traffic in Europe and Worldwide by sea
 Major sea ports
 Sea port Terminals and Inland Container Deports (ICD)
 Hub - Spoke system

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 Container Traffic in EUROPE and
worldwide by sea
 Maritime container transport:

 Growing at high level (10% annual)

 <10% of the total marine tonnage completes its
journey with combined transport technique

 Growth of container transport: creates goods

condition for Multimodal transport

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 Container Traffic in EUROPE

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 Container Traffic in EUROPE

Intermodal rail - road transport: makes

up about 1/4 of the rail transport in Europe

Intermodal transport: includes a

waterseaborne section accounts for 5% of
the river traffic

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 Intercontinental Container Traffic
 Growth in Container Ship Size

Average Ship Largest Ship in World

Year
Size (TEU) Fleet (TEU)

1980 975 3.057

1990 1.355 4.409
2000 1.741 7.200
2004 1.999 8.100

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 Intercontinental Container Traffic
 Container Growth (head- haul), 2004/05

2003 2004 2005

Asia - N. America 9.9% 12.6% 7.9%

Asia - N. Europe 17.5% 16.5% 15.0%

N. Europe - N. America 1.0% 1.2% 1.0%

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 Major sea port
Ranking of Ports Worldwide by container traffic in 2015
Rank Port Country TEUs (1,000)
1 Shanghai China, PRC 36,537
2 Singapore Singapore 30,922
3 Shenzhen China, PRC 24,204
4 Ningbo- Zhoushan China, PRC 20,620
5 Hong Kong China, PRC 20,114
6 Busan South Korea 19,469
7 Guangzhou China, PRC 17,624
8 Qingdao China, PRC 17,510
9 Dubai UAE 15,592
10 Tianjin China, PRC 14,100
24 Ho Chi Minh City Vietnam 5,788

Ranking of Ports Worldwide by container traffic - updated

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 Major sea port
Container Traffic (in million TEUs)
PORT COUNTRY 2012 2011 2010 2009 2008

1 Shanghai China 31.74 29.07 25.00 27.98

2 Singapore Singapore 29.94 28.43 25.87 29.92

3 Hong Kong China 24.38 23.70 20.98 24.25

4 Shenzhen China 22.57 22.51 18.25 21.41

5 Busan South Korea 16.17 14.19 11.95 13.43

6 Ningbo China 14.72 13.14 10.50 11.23

7 Quangzhou China 14.26 12.55 11.19 11.00

8 Qingdao China 13.02 12.01 10.26 10.32

9 Dubai United Arad Emirates 13.01 11.60 11.12 11.83

10 Rotterdam Netherlands 11.88 11.14 9.74 10.78

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 Major sea port
PORT COUNTRY Website

1 Shanghai China [Link]

2 Singapore Singapore [Link]; [Link]

3 Hong Kong China [Link]

4 Shenzhen China [Link]

5 Busan South Korea [Link]

6 Ningbo China [Link]/english

7 Quangzhou China [Link]

8 Qingdao China [Link]; [Link]

9 Dubai United Arad Emirates [Link]; [Link]

10 Rotterdam Netherlands [Link]

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 Major sea port

 Top 50 World Container Ports

• [Link]/about-the-
industry/global-trade/top-50-world-container-
ports
• Source: The Journal of Commerce, August 20 -27, 2012
(2012 V.13 N. 29)

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 Main International Ocean
Shipping Route

World Sea Trade Lanes

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 Estimated Transshipment Volumes at
Important Container Hub-Ports, 2004
Hub ports Region Total (Teu) Transhipment Transhipment Incidence
Singapore SE Asia 21,340,000 17,314,636 81.1%
Hong Kong Far East 22,021,000 6,661,463 30.3%
Shanghai Far East 14,557,200 6,242,127 42.9%
Rotterdam N. Europe 8,200,000 3,296,400 40.2%
Dubai Mid-East 6,428,883 3,221,513 50.1%
Gioia Tauro S. Europe 3,388,781 2,724,580 80.4%
Algeciras S. Europe 2,937,381 2,487,609 84.7%
Hamburg N. Europe 7,003,000 2,299,085 32.8%
Salalah Mid-East 2,228,546 2,217292 99.5%
Antwerp N. Europe 6,063,746 1,393,509 23.0%
Marsaxlokk S. Europe 1,461,174 1,382,819 94.6%
Khor Fakkan Mid-East 1,594,396 1,281,894 80.4%
Bremerhaven N. Europe 3,469,107 1,056,394 30.5%
Piraeus S. Europe 1,541,563 790,822 51.3%
Damietta N. Africa 854,225 739,452 86.6%
Jeddah Mid-East 2,425,930 531,188 21.9%
Source: Drewry Shipping Consultants Ltd
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 Sea port Terminals and Inland
Container Deports (ICD)

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 Sea port Terminals and Inland
Container Deports (ICD)

 Deep-sea gateway ports

 Short-sea/ intra-regional port (also handling origin
/ destination cargo)
 Inland Container Depots (ICD)

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 HUB & SPOKE System

Network System Hub and Spoke - System

long distance
transport
HUB HUB

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 HUB & SPOKE System

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 HUB & SPOKE System
 A special kind of network
 Consists of: a central net-node (hub) and
several small net- nodes; “hub” link to net-node
by “spokes”
 Is applied in: container shipping, parcel and
express services, pasenger and air freight...
 Haulage: 2 parts
• From spoke to hub: Collection HUB HUB

• From hub to spoke: Distribution

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 HUB & SPOKE System
Integrators built up a global hub- first level
hub; then second, third level

HUB Long distance HUB HUB

1st 1st 2nd

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 HUB & SPOKE System
Benefits:
 Economies if density and scale
 The consolidation of freight flows on the spoke causes
 A better capacity utilization
 A better service through increase in service frequency
 Less transit time
 The possibility to use bigger, more economical freight vehicles
 Reduction on cost per unit: Hub and spoke means better service at less
costs (up to 20%)
 Additional service is possible: the hub can be used as a freight centre
where additional services will be offered, e.g. actual information about
delivery status, warehousing-> increase in service quality results in
increasing trade and local demand.
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 FEEDER SERVICES
 Feeder services are transport services
which connect a hub or main container port
with other minor ports in one ocean range
 Feeder:
• Water base: Ocean, River
• Land base: Rail, Road
 Feeder ship size: 300 - 2,000 TEUs

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 Ho Chi Minh City and Intra-Asia
service

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 FEEDER SERVICES
 In inter-modal operations well-defined and
regular hub and spoke systems are in use. On
some European rivers regular shuttle services
operate between major industrial centres and
coastal vessels are operating scheduled feeder
services successfully between main hubs and
out-ports. Such services will be increasingly
important with the advent of still larger container
vessels which will be restricting their calls to a
very limited number of main ports.
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 PENDULUM

Types of pendulum routes

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 Pendulum network for deep sea
shipping

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 LAND BRIDGES
 Transport services:
• Between ocean ports at one coastline: “mini
bridges”
• Between two different coastlines: “land bridges”
 Save transit time through less transport distance
via sea
 Is advantageous for high value cargo
Eg:
• Trans- Siberian Landbirge,
• North American Landbirge,
• Canadian Landbirge
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 China- Europe Railway Network

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 China- Europe Railway Network

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International Freight Management And Development Institute
 Vietnam Logistics Research and Development Institute
5th Floor, Saigon Port Building, Dist 4, HCMC
Tel: (+84) 28 7301 8689 – Email: vli1@[Link]
Website: [Link]

End of CHAPTER 6

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FIATA Diploma in International Freight Management © Copyright 2021, Vietnam Logistics Research
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