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Transportation

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by

Daniel Chavez

on 20 October 2015

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Transcript of Transportation

Transportation
Freight Forwarding, Documentation & Insurance:
Actual Scenarios

Why is this your business?
Size does matter
Cost of Learning
The devil is in the details
If it suits you...
Tips and Tricks
Minimize cost, don't cut corners

Understand your business, your market

Consult, ask, repeat

Learn first
Give me a lever...
BOL - Legal tender

Used through banks on Letters of Credit

Read the fine print!
The taxman cometh...
COA - International trade agreements

Free trade is beneficial...when allowed

It's also a marketing tool!
Certificates
Very sensitive to interpretation

Get a local broker

Materials and history are not exempt
Pallets in the Netherlands
Containers in Panama
Murphy, is that you?
Acts of (angry) God
Does it pay to weight?
Its main advantage is speed

Use of volumetric weight

Very sensitive to weather
Dress me slowly
Well, it depends...

Really, really, really urgent

Good for start-ups and samples
Are we there yet?
It is the:

most used
cheapest
most reliable
less pollutant
Thar she blows!
Highly seasonal

Huge volumes (no, really, huge)

Highly standardized within each type
A transporter's core business
is
the facilitation of cargo transport

They have acquired experience and the cost of that learning is spread over the volume they move

Which terms of sale are in your best interest?
What is your business?
Facilitators don't only deal with your cargo

They come in all sorts of flavors, colors and shapes

They are trained in the dark arts of shipping!
Documentation
Freight Forwarders
Insurance
Transportation innovations are not so frequent, but the current state can be quite complicated

Core process is basically the same, but the details
are
peculiar

Different methods, different commodities, different markets all have different players
Not all men are created equal
Expertise comes at a price, but no guarantees

All NVOCCs are FFwd, but not the way around!
So what?

Some commodities are very atypical and require very $pecial treatment
In house: Pirelli, LG, Ford, Driscoll's

External: DuPont, GM, Samsung, Kraft

Own: Walmart, Saint-Gobain, Unilever
How to chose?

Several aspects to consider but the most important:
...it fits
IF IT IS NOT BROKEN, DON'T FIX IT!!
Are you a gambler?
If something wrong can happen, it will happen

What the law does not prohibit, it allows

Int'l cases end up in NYC or London, so suit up!

SLWC
Crossing the English channel

Yokohama to Mexico, with a brief stop

Around the world in 186 days
Air Cargo
Water
Inland
Rails double stack

Breakbulk terminals

Warehousing for breakdown

Not available everywhere
Very inefficient

Very flexible

LTL/FTL

Take note of the road limits
Midnight express
Route 66
slowest
Full transcript