Transportation

1. Transportation Week 12

2. Participants of shipment • Consignor: seller/ exporter, who sends the goods. • Carrier: the party who carries the goods • Consignee: buyer/ importer, who receives the goods.

3. Delivery procedures How could the goods be delivered from the seller/exporter to buyer/importer? • Clearing the goods through the customs(海关) • Booking shipping space or chartering a ship • completing shipping documentation

4. Shipment clause What kinds of information need to be stipulated in a formal contract refer to the shipment? • Modes of transport; • Time of shipment; • Port of loading and unloading; • Partial shipment and transshipment; • Shipping advice; • Shipping documents, etc.

5. Modes of transport • ocean transport 海洋运输 • railway transport 铁路运输 • air transport 航空运输 • container transport 集装箱运输 • international multi-modal transport 国际多式联运 • postal transport 邮政运输 • high way or inland 高速公路运输或内陆运输 • waterway transport 水路运输

6. What factors would influence the transport mode choice? • the nature of products • the distance to be shipped • available means of transportation • time limit as well as freight cost. However, the most basic and common method of shipment is to use ocean cargo vessels. About two third of the world trade total volume are now shipped by sea.

7. Sea Transportation In sea transport, chartering of ships or booking shipping space is involved, and the contract between the ship owner and the shipper may take the form of either a Charter Party or a Bill of Lading. • A Liner is a vessel that sails according to regular sailing route, regular ports of call, regular sailing schedule and has fixed freight. • A Tramp is a freight-carrying vessel that follows no firmed schedule, has no set routed or times, and sails off to where the goods are available and the pickings are the best. These rates are not fixed but are determined by market. Tramp ships are always chartered.

8. Time of shipment • Time of Shipment refers to the time for loading the goods on board the vessel at the port of shipment in accordance with the terms and conditions of the contract. • The date indicated by the carrier in the bill of lading is the date of delivery. • If the date of the bill of lading is not within the period of shipment stipulated in the contract, a loss could occur.

9. It is better to allow for a period of time rather than an exact date like the followings: Shipment during January/February Shipment on or before March 7, 2011 Shipment within 30 days after receipt of the covering L/C • Usually the time of shipment should not be too long or too short after the contract is made. • The latest date of shipment is often stipulated in the L/C.

10. Port of loading and unloading • Port of Loading refers to the port of shipment, while the port of unloading means port of destination. • Who make the decision? Usually it is the seller who designates the port of loading for the convenience of shipping the goods, while the port of destination is designated by the buyer • What factors influence the decision? Loading and unloading facilities, the location of goods, the importer, the draft of the ship, the conditions of the port, etc.

11. Sample Letters Letter 1 is the seller failed to make the shipment on time.

12. Gentlemen: Cotton We refer to Contract No.CT8898 signed between us on 20th December, 2008 for 15 000 long tons of cotton, which is stipulated for shipment in March, 2009. However, up to now we have not received from you any information concerning this lot. As our end-users are in urgent need of this material, we intend to send our vessel S.S. Daqing to pick up the goods, which is expected to arrive at Alexandria around the end of April. You are requested to let us have your immediate reply by cable whether you are agreeable to this proposal. If not, please let us know exactly the earliest time when the goods will be ready. Needless to say, we have been put to no little inconvenience by the delay in delivery. In case you should fail to effect delivery in April, we will have to lodge a claim against you for the loss and reserve the right to cancel the contract. Yours truly,

13. Letter 2 is the buyer to urge the seller to make the shipment when the time is approaching the due time in the contract .

14. Dear Sirs, We are very anxious to know about the shipment of our order for 5 000 cases Tin-plates. As the contracted time of delivery is rapidly falling due, it is imperative that we hear from you without any further delay. We recall that we stated explicitly at the outset the importance of punctual execution of this order and cannot help feeling surprised at your silence about our cable inquiry of the 18th June, copy of which is enclosed. We are in urgent need of these goods and have to request you to execute the order within the time stipulated. Yours faithfully, Encl. As stated.

15. Letter 3 Explaining the reason for late delivery

16. Gentlemen: Re: Your Order No.918 for 200 Bicycles We have for acknowledgment your letter of November 20, asking for definite news of shipment of the subject goods. Inasmuch as we ourselves are still waiting for a reply from the local shipping agents concerning the matter of space, we regret being unable to give you any good news at the moment. You may, however, have the satisfaction of knowing that although we are not the only exporters here that are having great difficulties in obtaining ocean freight space; we are doing our utmost to get the goods off before the relative credit expires. In the next few days, we expect to let you know by fax the result of our efforts. We realize that you have been inconvenienced to a certain extent by the delay occasioned by the shortage of shipping space, but we trust nevertheless you will appreciate that not only is this a rare case of its kind between us so far, but also it is entirely beyond our help. Yours truly,

17. Letter 4 Requesting early shipment

18. Dear Sirs, We refer to our purchase contract No.98. under the terms of the contract, delivery is scheduled for May 2010.We would like to bring delivery forward to March/April 2010。 We realize that the change of delivery date will probably inconvenience you and we offer our sincere apologies. We know that you will understand that we would not ask for earlier delivery if we did not have compelling reasons for doing so. In view of our long-standing, cordial commercial relationship, we would be very grateful if you would comply with our request. We look forward to your early reply. Yours sincerely,

19. Partial Shipment and Transshipment • Partial Shipment means shipping the commodity under one contract by more than one shipment. • In the case, a large amount of export goods is involved in one transaction and are shipped in several lots by several carriers onto different means of conveyance. • When there are no or few ships sailing direct to the port of destination at the time or the amount of cargo for a certain port of destination is so small that no ships would like to call at the port, transshipment is necessary. • Of course, Partial Shipment and Transshipment should be allowed by the buyer in advance

20. Sample Letter Letter 5 a partial delivery caused by force majeure

21. Gentlemen: We regret to inform you that a terrible typhoon struck our factory, which suffered serious damages, making it impossible to ship the 1500 pieces cotton shirt's of your order NO.11 in one lot. We faxed you, therefore, yesterday, asking you to allow us partial shipment, that is, 500 pieces within the contracted time and the remainder (1 000 pieces) in December and we hope you will agree to extend the credit till January 10. Although this is a case of Force Majeure, we are no less sorry for it and we are doing everything in our power to recover our factory. We should grateful if you would kindly understand the situation and you would comply with our request. Yours truly,

22. Letter 6 is about transshipment

23. Gentlemen: As requested in your letter of 5 March, we are pleased to provide the following information for your reference: 1. There are about 2 to 3 sailings weekly from Shanghai to Hong Kong. 2. Arrangements have been made with the ABC line, which has one sailing approximately on the 10th every month from Hong Kong to West African ports, such as Lagos, Accra, etc. Shipping space is to be booked through their Shanghai Agents, who communicate with the Line by e-mail. After receipt of the Line’s reply accepting the booking, their Shanghai Agents will issue a Through Bill of Lading. Therefore, with the exception of unusual condition which may happen accidentally, the goods will be transshipped from Hong Kong without delay.

24. 3. In general the freight for transshipment from Hong Kong is higher than that from the U.K. or Continental port, but ABC Line agrees to the same freight, the detailed rates of which are shown on the 2 appendices to this letter. If you want to have the goods transshipped at Hong Kong, your L/C must reach us well before the shipment month so as to enable us to book space with the Line’s Agents. We assure you of our best attention at all times. Yours sincerely

25. Shipping Advise The exporter usually sends by fax a notice to the buyers immediately after the goods are loaded on board the ship, advising them of the shipment. Such a notice, as the Shipping Advice, may include the following: • Contract and/or L/C number • name of commodity • number of package • total quantity shipped • name of vessel and its sailing date • and sometimes even the total value of the goods.

26. What’s the purpose for sending shipping advise? • help the buyer to effect insurance in time, (on the basis of FOB or CFR) • enable the buyer to get prepared for taking delivery of the consignment. When does the shipment advice supposed to be send out? The seller is supposed to send a shipping advice to the buyer (often by telegram or telex) as soon as he has completed shipment of the goods.

27. Sample Letter Letter 7 Shipping Advice

28. Dear sirs, Further to your Order No.320, we are pleased to inform you that the bicycles have now been dispatched as requested. Packing: 4 Cases Marking& Numbering: FA in triangle with case number 1to 4. Particulars of weight and measurement are given on the enclosed sheet. Shipment: M/S Evergreen which sailed from Guangzhou on March 12, scheduled to arrive at New York on April 2. Clean, shipped on board B/Ls in complete set, together with commercial invoice and Insurance Policy have been negotiated through the Bank of China with the sight draft under your L/C No. 234. We shall be pleased to hear that the goods have arrived safely and in good order. Your faithfully.

29. Shipping documents • After the goods are loaded on board a ship, the seller is required to provide a set of shipping documents, which serves as evidence of having performed the contract and enable him to get payment usually from a negotiating bank. As to what shipping documents the seller must provide or how many copies he should make, the parties, (the buyer and the seller) may negotiate and decide it for each transaction.

30. The kind and number of which shall be explicitly indicated in the contract or the letter of credit. • Shipping documents usually include • the Bill of Lading • Commercial Invoice • Insurance Policy • Packing List • Certificate of Inspection • Certificate of Origin, etc.

31. Letters about shipment • Before shipment, the buyers generally send their shipping requirement to the sellers, and inform them in writing of the packing and marking, mode of transportation, etc. • So letters regarding shipment are usually written for the following purpose: to urge an early shipment, to amend shipping terms, to give shipping advice, to dispatch shipping documents and so on. • Taking the advantage of this occasion to advise the buyer of the shipment, the seller may also review the course of the transaction and express the desire for further development of business.

32. Sample Letters Letter 8 Shipping instruction from seller

33. Dear Sirs, We are pleased to advise you that the whisky you ordered was dispatched by M/S “Sunlight” today, which is due to arrive at Sydney on May 5. In spite of every care in packing, it sometimes may happen that a few barrels are broken in transit. Should there be any breakages of other causes for compliant, please do not hesitate to let us know. Further details, concerning the consignment including packing and shipping marks, are contained in our invoice No.218 enclosed in triplicate. In order to cover this shipment we have drawn you a draft under L/C and negotiated it through The Bank of China, Hong Kong with relative shipping documents. We trust that the goods will reach you in good condition and give you complete satisfaction. Yours faithfully,

34. Letter 9 Shipping instruction from buyer

35. Dear Sirs, We are in receipt of your letter of 15th May, from which we understand that you have booked our order for two Model 790 Machines. Our Confirmation of Order will be forwarded to you in a few days. Since the purchase is made on FOB basis, you are to ship the goods from Liverpool on a steamer to be designated by us. As soon as the shipping space is booked, we shall advise you of the name of the steamer, on which the goods are to go forward. For further instructions, please contact our forwarding agents , ABC Company, Liverpool, who have hitherto taken care of shipments from you. As some parts of the machines are susceptibleto shock, the machines must be packed in seaworthy cases capable of withstanding rough handling. The bright metal parts should be protected from water and dampness in transit by a coating(外层，涂层) of slushing compound that will keep out dampness, but will not liquefy（液化） and run off under changing weather conditions. We trust that the above instructions are clear to you and that the shipment will give the users entire satisfaction. Yours faithfully,

36. Useful Expressions • 1. We are pleased to inform you that we have booked shipping space for your Order No.147 on s/s Shanghai 1, ETA20th August. 很高兴通知你方，我们已经为你方订单147号货订好了“上海1号”的舱位，估计到达时间是8月20日。 • 2. Please amend the covering letter of credit to allow partial shipment, under advice to us. 请修改有关信用证允许分装，同时通知我方。 • 3. As the only direct steamer which calls at our port once a month has just departed, goods can only be shipped next month. 由于每月停靠我港一次的直达轮船刚离开，货物只能在下月装运。 • 4. Air waybill, giving full particulars, will be sent to you as soon as the consignment is ready for dispatch. 航空货运单注明了详情，一旦货物备妥待运即寄与你方。

37. 5. Shipments during March and April 2010 in two monthly lots. 2010年3月、4月装运，每月各装一批。 • 6. Shipments shall be effected at intervals of every other month. 每隔一个月装运一批。 • 7. Ship half of the order in May and the balance one month later. 五月装一半，其余的次月装运。 • 8. We shall be much obliged if you could effect shipment of these milk power in two equal lots by direct steamer as soon as you receive our L/C. 如果一收到我方信用证就能用直轮分两等批装运这些奶粉，我方将不胜感激。

38. 9. Please ensure that all the cases are marked clearly with our initials in a triangle, under which comes the destination with the contract number below. 请确保在所有的箱子上都将我公司的首字母标注在三角形内，下面写上目的地，其下是合同号。 • 10.We are pleased to inform you that the consignment under your order No.112 has now been shipped per S.S. “luck” which is to leave here on Aug.1 and due to arrive at your port on Aug. 2010. 我们很高兴告知你方，你方112号订单之货物已经由“幸运”号轮装运，此轮订于2009年8月1日起航，预计8月10日到达你方港口。 • 11.As direct steamers to your port are few and far between，we have to ship via Hong Kong. 由于到达你方港口的船稀少，我们不得不经由香港转船。

39. 12. We are now enclosing one set of the shipping documents covering L/C No.005, which comprise the following: (1) Commercial invoice in quintuplicate. (2) One original clean on board ocean bill of lading, made out to order, blank endorsed and notify applicant and marked freight prepaid. (3) One original certificate of origin 现附上005号信用证项下的一套装运单据如下：商业发票一式五份，一份正本清洁已装船提单，空白抬头，空白背书，以申请人为被通知人，注明运费已付；原产地证明书正本一份。 • 13. Attached to this letter is a copy of B/L together with copies of invoice and weight memo. 随函附上一份提单及发票和重量单的复印件。 • 14. Would please obtain for us a ship with a cargo capacity of about 4000 tons. 请为我们找一条承载量为4000吨位的船。

40. 15. The goods are ready for shipment for a long time. Please inform us of the name, the voyage number and the ETA of the vessel to enable us to effect shipment in time. 货已备妥待运，请告知船名、航次及预计抵达时间，以便我方及时安排装运。 • 16. Usually there are three parties involved in most transportation of goods, the consignor, the carrier and the consignee. 通常情况下，大多数货物运输涉及三方当事人：发货人、承运人和收货人。

41. 17. Owing to the congestion of orders coming in at the moment, we are afraid that a certain portion of the goods may have to be shipped in the early part of June. In that case, we beg that you will overlook this unavoidable delay. 由于现在订单拥挤，有一部分货也许要到6月上旬才能装船，在此情况下，请原谅装船延迟不可避免。 • 18.Transshipment to be allowed at Singapore subject to presentation of through B/L on Rotterdam. 允许在新加坡转船，但需提交到鹿特丹的联运提单。 • 19.3000MT plus or minus 5%, at beneficiary’s option, January, February, March shipment equally divided. Each shipment shall be regarded as a separate and independent contract. 3000公吨，5%增减，由受益人选择，1、2、3月等量装运。每次装运视为一份分开的、独立的合同。 • 20. Shipments at intervals of about 60 days. 每间隔约60天装运。

42. Exercises • Translate the following terms and expressions: 1. 装运通知 2．清洁已装船提单 3．允许转船和分批装运 4．备妥待运 5．商业发票 6．舱位 7．装货港 8．运输方式 9．Shipment price 10. shipment by installments 11. shipment per sample 12. Transit shipment

43. Translate the following sentences 1.As the only direct streamer which calls at our port once a month has just departed, goods can only be shipped next month. 2. We take this opportunity to inform you that we have loaded the above goods on board S/S …which sails for your port tomorrow. Enclosed please find on set of the shipping documents covering this consignment. 3. 由于这些货物非常容易在运输过程中损坏， 我们建议用集装箱船装运，以避免装卸过程中可能的损坏。 4.很高兴告知贵方，100台电视已由“东风”号装运，该轮预计3月25日起航，预计4月10日到达。

44. Translate the following letter to English: XX先生： 贵方2012年12月15日来函收悉。今歉告，尽管我方做出极大努力，但仍未预订到直达马赛的舱位。 我方船公司告知，中国港口与马赛之间尚无定期船只，因而我方很难将此1000吨白糖直运马赛。 鉴于我们所面临的困难，请允许在中国香港转船。若贵方能同意我方要求，当不胜感激。 谨启

45. Key to Commodity Inspection • Translate the following terms: • 品质检验证书 2.重量或数量检验证书 3. 包装检验证书 4 卫生检验证书 5.残损检验证书 6.检验费 7. Inspection Certificate on Tank/Hold 8. Re-inspection 9.Commodity inspection 10. Survey report

46. Translate the following sentences： • A survey report is enclosed for your reference and your early settlement is requested. • The goods in question are not to our satisfaction because the quality is unsuitable for this market. • We trust you will consider this matter seriously, and try to prevent a recurrence of this delay. • Inspection shall be conducted by the China Import and Export Commodity Inspection Bureau which enjoys international reputation for impartiality. • 我们感觉贵方检验局签发的质量检验单不完全可信 • 我们发现装运货物的品质与协议规格不符 • 经过检查，尽管箱子表面没有任何痕迹，但是很多货物都验证损坏了。