Lesson 06+07 Consolidation, Intermodal transshipment.pptx

Pom

1. Consolidation and intermodal procedures in clearing and forwarding operations Sub topics Consolidation meaning Documentation Intermodal Importance of Intermodal Different types of operations and operators Lesson 06 1

2. Consolidation Consolidation means the process of combining several/multiple smaller shipments from different shippers or suppliers into one larger shipment It is often done to achieve economies of scale, reduce transportation costs, and optimize the use of shipping containers or transport facilities 2

3. Cont…. Documentation involved in consolidation Bill of lading:- this serves as a contract between the shipper and the carrier, detailing the terms of transportation, including the origin and destination of the goods, the carrier's responsibilities, and the type of goods being shipped. It serves as a receipt for the goods, a contract of carriage and as a document of title. Packing list:- it accompanies each individual shipment within the consolidation. It outlines the contents of each package within the consolidated shipment. This information is essential for ensuring that goods are properly loaded and unloaded during the transportation process Consolidation Manifest: - this document provides a comprehensive list of all the shipments included in the consolidated cargo. It includes details such as shipper names, cargo descriptions, weights, and destinations. Customs authorities use the consolidation manifest for clearance purposes . 3

4. Cont…. Commercial invoice :- provides details on the value of the goods being transported. Each shipper provides a commercial invoice specifying the value of their goods. In a consolidated shipment, there may be multiple commercial invoices, one for each individual shipment. Customs authorities use these invoices to assess duties and taxes Certificate of origin:- this document indicates the country where the goods originated and may be necessary for customs clearance or to qualify for preferential trade agreements. Insurance certificate:- s hippers often include insurance documents for their individual shipments within the consolidation. It provides evidence of insurance coverage for the goods during transit, safeguarding against potential loss or damage Customs declaration or entry form:- Each individual shipment within the consolidation requires a customs declaration form. This document provides details about the nature of the goods, their classification, and other information necessary for customs clearance Etc 4

5. Intermodal transport What is intermodal transport? Is the process of transporting goods from its origin to its destination by using multiple modes of transportation such as trucks, trains, ships, and airplanes, with each mode having a separate contract and operated by a different carrier. Each mode of transportation is specialized for a particular segment of the journey, allowing for a more efficient and cost-effective overall transportation solution. For example, a shipment may move from a manufacturer to a port via truck, then onto a container ship for an ocean voyage, and finally be transported to its destination by rail or truck again. 5

6. Cont…. What is multimodal transport? Multimodal transportation is similar to intermodal transportation but involves the use of multiple modes of transport under a single contract, often managed by a single transportation provider or logistics operator. The key distinction is that in multimodal transportation, there is a single contract covering the entire journey, and the responsibility for the cargo is transferred from one mode to another under the terms of that contract. A single contract covers the entire journey and one operator assumes responsibility for the entire shipment, ensuring its seamless delivery even if multiple carriers are involved . 6

7. Cont…. Importance of intermodal Accessibility i.e. allows goods be transported to even most remote areas Reduce transportation costs by utilizing the strengths of each mode of transport Facilitate global trade by connecting various transportation networks Reduce congestion and environmental impact Improve transit times i.e. less prone to delays and disruptions Increase flexibility Enhance security as goods are typically transported in sealed containers that are less likely to be tampered with 7

8. Different types of operations and operators Intermodal transportation involves various types of operations and operators, each serving a specific role in the process of moving goods across different modes of transportation. These includes; Freight forwarders:- entities that coordinate and manage the entire intermodal shipping process for their clients. The terminals typically have a variety of equipment, such as cranes, forklifts, and container handlers. Third-party logistics providers :- they provide a variety of services to support intermodal transportation, such as warehousing, consolidation, transportation management. Intermodal terminals:- facilities where goods are transferred between different modes of transport. 8

9. Transit and transshipment procedures in releasing goods from exporter Sub topics Transit goods meaning Transshipment procedures Trade facilitation for transshipment Lesson 07 9

10. Transit goods Transit goods refer to goods or merchandise that are in the process of being transported from one location to another, typically across borders or through various jurisdictions. Is the merchandise that is being transported from one place to another but has not yet reached its final destination.  They are en route from the point of origin to their final destination and may pass through different countries, regions, or customs territories Example; Imported goods arriving at Tanzanian ports may be destined for landlocked neighboring countries e.g. Rwanda, Congo etc Goods manufactured in Kenya that are intended for distribution in Democratic Republic of Congo may transit through Tanzania as part of the transportation route to their final destination 10

11. Transshipment What is transshipment? It is the process of transferring goods or cargo from one mode of transport to another (e.g. from a ship to a train, or from a truck to a plane) during their journey from the point of origin to final destination, Transshipment points, such as ports, airports, or intermodal terminals, play a crucial role in facilitating transshipment Transshipment can occur for several reasons such as change in transportation mode, consolidation or deconsolidation, transfer between carriers e.g. from a smaller feeder vessel to a larger container ship, optimizing routes, handling delays or interruptions etc 11

12. Transshipment procedures at customs Pre-Arrival Customs bonded transit (CBT) application:- Shippers initiate the process by submitting a CPT application to TRA. The application provides details about nature of the goods, their origin, intended destination, transportation route etc Customs clearance:-   shippers prepare all required custom documentation and electronically submit them through the Tanzania Customs Integrated System ( TCIS) Fees and charges. Shippers may need to pay any applicable fees, such as transit fees, port handling fees and customs duties or other charges associated with the transshipment process Booking:-  s hippers book transportation and storage facilities needed for the transshipment process 12

13. Cont…. On arrival Goods are unloaded from the incoming mode of transportation Customs inspection and verification:- customs authorities may conduct inspections and verifications to the goods to ensure compliance with regulations. This may involve physical inspection or document verification Customs release:-   upon approval, customs issue a release order, allowing goods to be transferred to the next mode of transport Storage:   If necessary, goods may be stored in a bonded warehouse or other facility while they are waiting to be transshipped 13

14. Cont…. Transshipment Transfer: - goods are then moved to another mode of transport following the agreed-upon terms and conditions. This may involve loading goods onto the outgoing mode of transportation Any changes in the transportation schedule or cargo details are documented and updated in the TCIS system. Post-departure Monitoring:- TRA electronically monitors and tracks movement of transshipment cargo until it leaves the country Reporting with the TRA, proving the goods have exited the country within the specified timeframe. 14

15. Trade facilitation in transshipment in Tanzania Customs bonded transit system (CBT):- Tanzania facilitates movement of transit goods through the CBT system. The system allows goods to move from one point to another without paying duties and taxes as long as they remain in transit Corridor management system:- Tanzania has established it to facilitate smooth movement of goods through the country. It involves coordination between various stakeholders, including customs authorities, transport operators, government agencies etc Use of electronic systems:- to enhance efficiency, Tanzania employs electronic systems for customs clearance and tracking of transit goods. Systems like ASYCUDA (Automated System for Customs Data) help streamline customs processes. 15

16. Cont…. Collaboration with regional partners:- Tanzania collaborates with neighboring countries and regional organizations to harmonize transit procedures, ensuring a seamless flow of goods across borders Security measures:- this involve the use of seals on containers, surveillance systems, tracking devices to monitor the movement of goods etc Risk management:- risk management strategies are implemented to ensure security of transit goods while minimizing disruptions. 16

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