Chap 5 - Multimodal Transportation New

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6/5/2024

Multimodal transportation

Lecturer: MsC. Bùi Thị Bích Liên 1

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1. Introduction about multimodal transport

Origin

❖Multimodal transport was developed in connection


with the "container revolution" of the 1960s and 70s.
❖The emergence of container technology and of the
multimodal transport concept came from and
facilitated growing international trade. Trade and
transport are inextricably linked: efficient transport
services are a prerequisite to successful trading.

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❖The introduced multimodal modes of transport


basically combine the flexibility of trucks with
economies of scale of such means of transport that
are destined for long-distance forwarding.
❖However, additional handling processes are cost
and time consuming. The benefits of utilizing
different means/modes of transport ideally
outweigh or even exceed the expenses. This mainly
depends on the distance to be covered, the
efficiency of transshipment points and the goods to
be conveyed.

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1. Introduction about multimodal transport

❖Multimodal transport is the articulation between


different modes of transport, in order to more
rapidly and effectively transfer operations of
materials and goods

❖Multimodal transport is that in which it is necessary


to use more than one type of vehicle to transport
the goods from their place of origin to their final
destination, but mediating a single contract of
carriage.

• Within this overall framework, we distinguish intermodal


transport (using different types of transport but using a single
measure of load) and combined transport (the responsibility
is assumed by different operators).

❖ Multimodal transport is effected by a multimodal transport


operator (MTOs) who holds a multimodal transportation
contract and assumes responsibility for compliance as carrier.

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2. The main features

❖ The carriage of goods by two or more modes of


transport, under one contract
❖ One document and one responsible party (MTO) for
the entire carriage who might subcontract the
performance of some
❖ The terms "combined transport" and "intermodal
transport" are often used to describe the carriage of
goods by two or more modes of transport.
❖ The carriage of goods between two or more
countries

MULTIMODAL TRANSPORT

❑ Using at least 2 different modes of transport


❑ Organized by 1 carrier (MTO)
❑ Under 1 contract
❑ With 1 freight document
❑ Under 1 liability
❑ 1 price

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INTERMODAL TRANSPORT

❑ Using at least 2 different modes of transport


(intermediate handling)
❑ Use of several means of transport
❑ Goods remain in the same loading unit
❑ Without intermediate handling

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COMBINED TRANSPORT

❑ Is intermodal transport
❑ With the trips beginning and ending by road
❑ Includes the following techniques
✓ Piggyback systems (road and rail)
✓ Birdyback systems (air and rail/road)
✓ Fishyback systems (road and sea transport)
✓ Roll-on Roll-off systems (road and waterway)
✓ Land - bridge systems (ocean container is shipped by vessel from
one country to another and is then carried across a total body of
land, a country, or an entire continent)

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Rolling road
❖ The rolling road usually describes carriage of whole trucks –
including both tractor and trailer – on low floor trains.
❖ In this regard, the second alternative that contributes to
additional cost savings is forwarding of trailers without the
tractor as it reduces transport weight and labor costs.
However, this option requires a second tractor at the place
of arrival.

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❖ Roll-on roll-off traffic means the carriage of freight vehicles


on ships over a certain distance.
❖ A rarely applied option is LASH-transportation. In the course
of this, an inland water vessel, commonly known as LASH
barge, is carried by the barge carrier – a seagoing vessel.
❖ Trailer shipment (rail transport of trailers) refers to a
combination of rail and road haulage.

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Combined container transport


Regarding combined container transport,
standardized loading units are transshipped along
different means of transport. In doing so, various
combinations of land, water, and air transportation
are applied in practice.

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❖ Therefore, in case of damage or loss, each company will only


bear responsibility for only its own stage in line with the rules
applicable to the transport contract.

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The merits of multimodal transportation

❖Minimizes time loss at transshipment points


❖Provides faster transit of goods
❖The faster transit of goods
❖Reduces the burden of documentation and formalities
❖Saves cost: Reduces cost of exports
❖The inherent advantages of a multimodal transport
system will help to reduce the cost of exports and
improve their competitive position in the
international market.

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3. “Multimodal transport operator“ (MTO)

❖"Multimodal transport operator'


means any person who on his own
behalf or through another person
acting on his behalf concludes a
multimodal transport contract and
who assumes responsibility for the
performance of the contract."

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MULTIMODAL TRANSPORT OPERATOR

Definition by United Nations Convention on


International Multimodal Transport of Goods 1980
(MT Convention):
“… any person who on his own behalf or through another
person acting on his behalf concludes a multimodal transport
contract and who acts as a principal, not as an agent or on
behalf of the consignor or of the carriers participating in the
multimodal transport operations, and who assumes
responsibility for the performance of the contract”

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DIFFERENT TYPES OF MULTIMODAL


TRANSPORT OPERATORS

⮚ Freight forwarders, NVOCCs and MTOs are often


defined differently in different countries
⮚ Some countries enforce separate regulations for
freight forwarders, NVOCCs and MTOs respectively
⮚ Many operators are called freight forwarders but
provide NVOCC and multimodal transport services

MTO LIABILITY

⮚ When shippers entrust the carriage of their goods to a


carrier - shipping company, airline, railway, or another
transport operator – the carrier assumes responsibility
for the cargo while it is in his care. He becomes liable
for loss of or damage to the goods, provided the
shipper can prove that the loss or damage occurred
while the goods were indeed in his care
⮚ However, it is interesting to note that the MT
Convention puts the onus on the MTO to disprove that
the loss or damage to goods occurred while the goods
were in his care

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MTO LIABILITY

⮚ UN convention on the international multimodal


transport of goods 1980
⮚ UN Conference on trade and development và ICC về
chứng từ vận tải đa phương thức (UNCTAD/ICC
rules for multimodal transport document
⮚ A carrier will usually issue some kinds of document
to the shipper showing that he has received the
goods for transport

⮚ The document could be a bill of lading, an air waybill,


a rail receipt, a consignment note, or an MT
document

MTO LIABILITY

The terms of these transport documents, if they fulfill certain


conditions, may be governed by international conventions such as:
▪ Hague Rules, Hague-Visby Rules and the Hamburg Rules for
carriage by sea
▪ The Warsaw Convention (Montreal Protocol No.4) for carriage by
air
▪ The CMR Convention 1956 for the transport of goods by road
▪ The CIM and COTIF for carriage by rail

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TYPES OF LIABILITIES

⮚ When there is loss, damage or delay to goods during


transportation, cargo interests who have contracted with MTO
acting as principal for the transportation operation can bring a
claim against the MTO
⮚ The amount of compensation payable to the cargo interest will
then depend on the terms of the contract between parties and of
any applicable convention. In some cases, the landed market
value of the goods may be taken into consideration
⮚ The value of the goods at the place and time at which they were
accepted for carriage may be a relevant factor

TYPES OF LIABILITIES

⮚ The MTO is able to limit his liability when limitation


provisions are included in the contract with cargo interests
⮚ The financial limits of liability may be based on the number
of units or packages or the gross weight of the goods
⮚ Cargo interests should beware that the wording of the
transport document can significantly affect the basis of
calculating limitation if any

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TYPES OF LIABILITIES

❖ UN convention ❖ UNCTAD:
666,67 SDR/ package,
❖ Water transport:
or
920 SDR/ package
2 SDR/kg
2,75 SDR/kg
Or:
13.750 MU/package or
41,25 MU/kg (1MU=65,5 mg
gold 900/1000)
❖ Without waterway:
8,33 SDR/kg

TYPES OF LIABILITIES

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Period of responsibility

The responsibility of the MTO for the goods


under these Rules covers the period from the
time the MTO has taken the goods in his charge
to the time of their delivery

Delay in delivery

Delay in delivery occurs when the goods have not been


delivered within the time expressly agreed upon or, in
the absence of such agreement, within the time at
which it would be reasonable to require a diligent MTO,
having regard to the circumstances of the case

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Time-bar

The MTO shall, unless otherwise expressly agreed, be


discharged of all liability under these Rules unless suit
is brought within 9 months after the delivery of the
goods, or the date when the goods should have been
delivered, or the date when in accordance with Rule
5.3, failure to deliver the goods would give the
consignee the right to treat the goods as lost

A professional MTO should:

⮚ Ensure that for those parts of the transportation for


which he has limited, or no resources, his potential
liability to cargo interests is insured
⮚ Analyzing the various modes of transport to be
used in the operation, especially those involving
sub-contractors, and be aware of:
✔ Recourse actions available against the sub-contractors
✔ The burden of proof required
✔ How to obtain evidence in order to support a resource
action
✔ The applicable jurisdiction

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TYPES OF LIABILITIES

Typical risks of transport, which are elements of


insurance:
⮚ Damage
⮚ Loss
⮚ Delay

LIABILITY – INTERNAL PART

The liability for these risks in international transport is


mainly intra-modal and ruled by law:
⮚ Warsaw convention - Air traffic
⮚ Hague and Hague -Visby rules- / Hamburg rules - Sea
traffic
⮚ CMR - Road traffic
⮚ COTIF /SMGS - Rail traffic

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LIABILITY – EXTERNAL PART

Two main streams of development:


⮚ Uniform-solution: MTO as sui generis - the MTO
contract is an own contract, independent from uni-
modal agreements. There is one uniform liability,
independent from where the damage occurred
⮚ Network-solution: Multimodal transport is the sum
of uni-modal transport, respecting the rules and
laws already developed for them. The liability
depends on the mode where the damage occurred

4. MULTIMODAL TRANSPORT OPERATIONS

• Sea/Air
• Air/road (truck)
• Rail/road/inland waterways/sea/rail/road inland
waterways
• Mini-bridge
• Land bridge
• Piggyback
• Sea/Train
• Rail-sea-land
• Inland waterway/sea/inland waterway
• RO-RO
• Sea-rail
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SEA / AIR

⮚Faster than the sea, cheaper than air


⮚Best of both worlds - speed of air cargo and the
economy of sea freight
⮚Sea-air can cost as much as 40% to 50% less than
pure airfreight
⮚Sea-air service is ideal for transporting high-value
items

AIR / ROAD (TRUCK)

⮚ In this combination, road transport is used to move


cargo over long distances, particularly in Europe
and the United States
⮚ Many airlines provide road feeder services
⮚ Airlines can provide road transport using their own
vehicles

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RAIL / ROAD / INLAND WATERWAYS / SEA /


RAIL / ROAD / INLAND WATERWAYS

⮚ This combination is commonly used when goods in the


country of origin are moved from an ICD by road, rail or
inland waterway to the seaport
⮚ An example of cargo arriving at the seaport: when
containers of consumer items such as cigarettes or
liquor destined for Lao PDR arrive at Laem Chabang, a
deep seaport in the Gulf of Thailand, they are
transported by rail to an inland clearance depot at Lat
Krabang near Bangkok. There, the containers are
unpacked and the consumer items are loaded onto
trucks for the road journey to Thana Laeng, the entry
checkpoint into Lao PDR

SEA / TRAIN
⮚ First adopted in the United States
⮚ This innovative combination rail and sea transport
uses a rail car (instead of a ro-ro vehicle) that is
transported by sea to the destination country,
where it is again connected to the railway to
complete delivery to the consignee

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SEA / AIR / SEA

⮚ This combines the economy of sea transport and


the speed of air transport and is becoming
increasingly popular in several international trade
routes like the Far East Europe route
⮚ The economics of this combination mode favour
high value items, goods with high seasonal demand
⮚ This multimodal operation is particularly applicable
where the route to be covered combines large
distances via land and water, and where transit
time is important

MINI-BRIDGE
⮚ Containers are moved on a vessel from a port in one country
to a port in the destination country. The containers are then
moved by rail to a second port in the destination country,
ending at the rail carrier’s terminal
⮚ This system of transport frequently operates on certain
routes covering trade between the United States and the
Far East the United States and Europe, and the United
States and Australia

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LAND BRIDGE
⮚ Containers are shipped overland as part of a sea-
land route in the land bridge system of transport
⮚ Frequently used major international land bridge
routes are:
❖ the Trans-Siberian land bridge for trade between Europe
or the Middle East and the Far East with carriage through
the land mass of the Russian Federation and/or Mongolia
or Central Asia with Afghanistan as a final destination; And
❖ the continental USA for trade between Europe and the Far
East

The North American Land-bridge

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PIGGYBACK

In this combination of transport by road and rail, goods


are packed in trailers and hauled by tractors to railway
stations, where the trailers are moved onto railway flat
cars. At the destination point, transport tractors are
again connected to the trailers, which are then hauled
to the consignee’s warehouse

RO-RO

The RO-RO mode, combining sea and road, is usually


used to transport new cars. Shipped by sea, the cars
are then driven off the vessel to the importer’s
warehouse or to a free trade zone pending importation
formalities like Customs duties and vehicle
registration. Heavy and oversized cargo is suitable for
RO-RO transport

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RAIL / SEA / ROAD

⮚ Combination of transport by rail, sea and road

⮚ Rail Sea Road

Inland waterway / Sea / Inland waterway

⮚ Combination of transport by Inland waterway,


Sea and Inland waterway

⮚ Inland waterway Sea Inland waterway

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5. Documentation of multimodal transport

⮚ Bills of lading, air waybills, multimodal


transport documents and so on are an
integral part of any multimodal transport
operation

⮚ The MTO and those persons embarking on


some form of logistics exercise must
understand the role performed by such
documentation and their importance to any
contract

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TYPES OF DOCUMENTS

❑ Bill of Lading

❑ Letters of Indemnity

❑ Other FIATA documents

❑ Other Sea Transport documents

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OTHER FIATA DOCUMENTS

In addition to the FBL, FIATA has developed


several other documents for use by its
members

Documents issued to the customer

Documents received from the customer

DOCUMENTS RECEIVED FROM CUSTOMER

▪ FIATA Forwarding Instructions (FFI) or


Shipper’s Instructions (SI)

▪ FIATA SDT: Shipper’s Declaration of


Dangerous Goods

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FFI or SI
⮚ An MTO - customer contract
⮚ Information is provided by customer
⮚ FFI contains specific information: conditions of
sale, insuring conditions, handling instruction,
documentary credit terms, country of origin, etc.
⮚ FIATA designed the form of FFI with the UN layout
key

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FIATA SDT
⮚ Providing details of hazardous goods,
classification, and mode of transport
⮚ FIATA SDT can be used for road in Europe
(ADR) or sea transport (IMDG code)
⮚ FIATA SDT is not accepted for international
rail transport based on RIG (CIM waybill) and
air IATA (DGD)
⮚ Can be used as complementary for the CIM
waybill
⮚ Only shipper can sign these documents.
Forwarder cannot even as a flavor to its
customer

DECLARATION OF DANGEROUS GOODS IN CONTAINER & CONTAINER PACKING


CERTIFICATE (FOR MULTIMODAL TRANSPORT)

This form meets the requirements of SOLAS 74, chapter VII, regulation 4; MARPOL 73/78, Annex III, regulation 4.
1 Shipper/Consignor/Sender 2 Transport document number (e.g.: Booking No. or B/L No.)
3 Page 1 of 1 pages 4 Shipper's reference
5 Freight forwarder's reference
6 Consignee 7 Carrier (to be completed by the carrier)

SHIPPER'S DECLARATION

1 hereby declare that the contents of this consignment are fully and accurately described below by the

Proper Shipping Name, and are classified, packaged,


6-1 Notify party's marked and labelled / placarded and are in all respects in proper condition for transport according to

the applicable international and national governmental regulations.


1 undertake to hold the Carrier fully harmless and indemnify them against any
and all losses, damage, and expenses resulting from the failure to comply with
the above.
9 Additional handling

information: Ems:
US DOT ERG NO.:
8 This shipment is within the limitation prescribed for:
10 Vessel / flight No. 11 Port / place of loading 24 hr contact phone/ person:
and data 1°: Others: ( any special attention for transport : prepare by shipper)

2'd:
12 Port / place of discharge 13 Destination

14 Description of goods
UN PROPER SHIPPING NAME (Technical name) IMO/CFR class Packing Number and kind of packages Gross Other description(Flash Point,

number Subsidiary risk Group mass(kgs)Net mass(kgs)/Cube(m3) Limit Quantity, Marine Pollutant,

Special stowage requirement, etc)

15 Container identification No. / vehicle 16 Seal number ( s ) 17 Container! vehicle size & 18 Total cargo mass 19 Total gross mass

registration No. type (kg) (including tare) (kg)


CONTAINER / VEHICLE PACKING CERTIFICATE 21 RECIVING ORGANIZATION RECEIPT

I hereby declare that the goods described above have been packed / loaded into the Received the above number of packages / containers / trailers in apparent good

container / vehicle identified above in accordance with the applicable provisions. 9 order and condition , unless stated hereon: RECIVING ORGANIZATION

MUST BE COMPLETED AND SIGNED FOR ALL CONTAINER / VEHICLE REMARKS :

LOADS BY PERSON RESPONSIBLE FOR PACKING / LOADING


20 Name of company 22 Name of company ( OF SHIPPER PREPARING
Haulier's name Vehicle reg.
THIS NOTE)

no.
Name / status of declarant Signature and data Name / status of declarant

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(overleaf page)
Documentary Aspects of the International Transport of Dangerous Goods
Container/Vehicle Packing Certificate
The signature given overleaf in Box 20 must be that of the person controlling the container/vehicle operation.
It is certified that
1. The container/vehicle was clean, dry and apparently fit to receive the goods.
2. If the consignments include goods of class 1, other than division 1.4, the container is structurally serviceable.
3. No incompatible goods have been packed into the container/vehicle unless specially authorized by the Competent Authority
4. All packages have been externally inspected for damage and only sound packages packed.
5. Drums have been stowed in an upright position unless otherwise authorized by the Competent Authority.
6. All package have been properly packed and secured in the container/vehicle.
7. When materials are transported in bulk packagings, the cargo has been evenly distributed in the container/vehicle.
8. The packages and the container/vehicle have been properly marked, labelled and placarded. Any irrelevant mark, labels and
placards have been removed.
9. When solid carbon dioxide ( CO2 — dry ice) is used for cooling purposes, the vehicle or freight container is externally marked or
labelled in a conspicuous place, e.g. at the door end, with the words: DANGEROUS CO2 GAS ( DAY ICE) INSIDE —
VENTILATE THOROUGHLY BEFORE ENTERING.
10. When this Dangerous Goods Form is used as a container/vehicle packing certificate only, not a combined document, a
dangerous goods declaration signed by the shipper or supplier must have been issued/received to cover each dangerous goods
consignment packed in the container.
Note: The container packing certificate is not required for tanks.

DOCUMENTS ISSUED TO THE CUSTOMER

⮚ FIATA FCR

⮚ FIATA FCT

⮚ FIATA MTB/L

⮚ FWR

⮚ OB/L, MAWB

⮚ HB/L, HAWB

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FIATA FCR
⮚ Forwarder Certificate of Receipt
⮚ FCR is introduced by FIATA and be used within FIATA
organization only. It’s only a receipt of goods by the MTO
⮚ It’s not a negotiable document. Only original is issued
⮚ Containing the general conditions of the issuing or region on
the reverse side
⮚ Freight forwarder, MTO is recommended to cover his liability by
insurance according to FIATA FCR requirement

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FIATA FCR
When issuing the FCR, the MTO should ensure that:
✔ The specified consignment has indeed been
received by him or his agent
✔ The goods are in apparent good order and condition
✔ The details in the FCR clearly agree with any
instructions he has been give by the shipper
✔ The conditions specified in the order documents,
especially the FBL, are not contrary to the
obligations he has assumed under the FCR

FIATA FCT
⮚ Forwarder Certificate of Transport
⮚ FCT shows the responsibility of the MTO to deliver the
goods to consignee as indicated at the specified
destination
⮚ FCT is largely replaced by FBL
⮚ Seller can obtain payment from his bank against the
FCT – cash against document
⮚ FCT is negotiable. Presenting of the original document
that is duly endorsed

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FIATA FCT
When issuing the FIATA FCT document the freight
forwarder should ensure that:
▪ He has taken over the goods specified therein and that
the right of disposal of these goods is vested solely in
him
▪ The goods appear to be in apparent good order and
condition
▪ The details on the document clearly correspond with
the instructions he has received

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FIATA FCT
When issuing the FIATA FCT document the freight
forwarder should ensure that:
▪ Conditions of freight document (B/L) are not contrary to the
obligations he has assumed according to the FIATA FCT
document
▪ Responsibility for the insurance of the goods has been agreed
▪ It is clearly specified whether one or more originals have been
issued
▪ It is recommended to dispatch the FIATA FCT documents by
registered post only

FIATA FWR
⮚ Forwarder Warehouse Receipt
⮚ MTO issues when providing warehousing services
⮚ Be used in the MTO’s warehousing operation.
Containing detailed provisions on the rights of the
holder-by-endorsement of the document, transfer of
ownership
⮚ FWR is not negotiable, unless it is marked
“negotiable”
⮚ Subject to national law and any other applicable
standard trading conditions that may be in force

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Exercises

❖Listing the air freight and container freight? Explain


❖Rules related to multimodal transport? MTO
liabilities?
❖Vietnam Maritime Law: MTO liabilities

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Example 1
One shipment needs to be transported from HCM to LAX:
- Cargo: Coffee
- Dim per carton: 342 mm x 242 mm x 212 mm
- Weight: 5.5 kg/package
Port of loading: HCM Ports
Port of discharge: Los Angeles
Questions:
Determine the type of container and the quantity needed
for packing.

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Example 1
Questions number 2:
Determine the carrier so that the cost and shipping
time of the above shipment is the lowest

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