EIDL Session 10(RB)v1.1d

8/22/2019 EIDL Session 10(RB)v1.1d

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Amity International Business School

Multi modal Transport Multimodal transport contract means a contract whereby an MTO

undertakes, against payment of freight, to perform or to procure theperformance of international MTO.

Multimodal transport document (MTD) means a document which evidences

an MT contract, taking in charge of the goods by the MTO and anundertaking by him to deliver the goods in accordance with the terms of thecontract.

MTO Criteria:

a) Recognized Operator

b) Contractual c) Freedom of Action

d) Independent Status

e) National Licence

f) International Recognition

g) Resources 1


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Scope of Services

Some MTOs may own one or more means of transport, handlingequipment, containers, etc particularly when there are ship operators, truckoperators of railway or airlines. They may also own container depots andwarehouses.

But some may not own any of these and may therefore engage transportundertakings under contract to them. Some MTOs may also charter ships.

The range of services which MTOs provide directly or through their sub-contractors vary from MTO to MTO and to some extent from one country toanother country, depending upon system of administration pertaining to port

areas, inland terminals, inland modes of transport, etc prevailing in each ofthe countries.

Individual MTOs may have to undertake different types of operationsdepending upon the requirements of the trade route which they serve.

2


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Differences in maritime freights depend on

1) Distances

2) Economies of scale

3) Imbalances

4) Type & value of goods

5) Competition

6) Port characteristics


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1) Distances


3) Imbalances


5) Competition



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Distance

Doubling the distanceleads to a increaseof maritime transport

costs (incl. insurance)by

about 15-20%

averages,empirical dataECLAC, FAL 191, Wilmsmeier, HoffmannHandbook of Maritime Economics, Kumar, Hoffmann


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1) Distances


3) Imbalances


5) Competition



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Feb 2008 costs 1100TEU4250TEU

8750TEU

13000TEU

Construction costsmillion USD 28 77 135 167Construction costs

USD per TEU25 000 18 117 15 430 12 850

Crew 15 to 17 15 to 17 15 to 17 15 to 17

Source: Dynamar, 2008, via Antonio Zuidwijk


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Container ship sizes

27.- US$ saving/ container/ tripusing post panamax versus panamax(Drewry)


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Port operations

12 US$ per move savings with globaloperatorsDrewry


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Amity International Business SchoolDifferences in maritime freights dependon

1) Distances


3) Imbalances


5) Competition



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Imbalances

CI-Online 28 January 2009


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Supply/demand

Trans-Pacific trades

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2000 2003 2004 2005 2006 2007

'000 TEUs

Carrying capacity Cargo eastbound Cargo westbound

Containerization International


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Imbalances

In Barbados, which freight rates

would you expect to be higher:

Those for imports, or

Those for exports ?


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1) Distances


3) Imbalances


5) Competition



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Competition with land transport If countries are neighbours,

with paved roads, maritime

transport costs are around 10% lower

Fotos: Jan Hoffmann


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1) Distances


3) Imbalances


5) Competition



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Port reform

Difference betweenbest and worst

case in Latin America:25% of worst case

EIDL Session 10(RB)v1.1d

Documents

Transcript of EIDL Session 10(RB)v1.1d