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 the performance 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 an undertaking by him to deliver the goods in accordance with the terms of the contract. MTO Criteria: a) Recognized Operator b) Contractual c) Freedom of Action d) Independent Status e) National Licence f) International Recognition g) Resources

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Scope of Services Some MTOs may own one or more means of transport, handling equipment, containers, etc particularly when there are ship operators, truck operators of railway or airlines. They may also own container depots and warehouses. But some may not own any of these and may therefore engage transport undertakings under contract to them. Some MTOs may also charter ships. The range of services which MTOs provide directly or through their subcontractors vary from MTO to MTO and to some extent from one country to another country, depending upon system of administration pertaining to port areas, inland terminals, inland modes of transport, etc prevailing in each of the countries. Individual MTOs may have to undertake different types of operations depending upon the requirements of the trade route which they serve.

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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

Amity International Business School

Differences in maritime freights depend on 1) Distances 4) Type & value of goods 2) Economies of scale 5) Competition 3) Imbalances 6) Port characteristics

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Distance Doubling the distance leads to a increase of maritime transport costs (incl. insurance) by about 15-20% averages, empirical data
ECLAC, FAL 191, Wilmsmeier, Hoffmann Handbook of Maritime Economics, Kumar, Hoffmann

Amity International Business School

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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Feb 2008 costs

Construction costs million USD Construction costs USD per TEU

1100 TEU 28 25 000

4250 TEU 77 18 117

8750 TEU 135 15 430

13000 TEU 167 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/ trip using post panamax versus panamax
(Drewry)

Amity International Business School

Port operations 12 US$ per move savings with global operators

Drewry

Differences in maritime Amity freights depend International Business School on

1) Distances 2) Economies of scale 3) Imbalances 4) Type & value of goods 5) Competition 6) Port characteristics

Imbalances
Amity International Business School

CI-Online 28 January 2009

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Supply/demand Trans-Pacific trades

18000 16000 14000 12000 10000 '000 TEUs 8000 6000 4000 2000 0 2000 2003 2004 2005 2006 2007

Carrying capacity

Cargo eastbound

Cargo westbound

Containerization International

Imbalances
Amity International Business School

In Barbados, which freight rates would you expect to be higher: Those for imports, or Those for exports ?

Amity International Business School

Differences in maritime freights depend on

1) Distances 2) Economies of scale 3) Imbalances

4) Type & value of goods 5) Competition 6) Port characteristics

Amity International Business School

Competition with land transport

If countries are neighbours, with paved roads, maritime transport costs are around 10% lower

Fotos: Jan Hoffmann

Amity International Business School

Differences in maritime freights depend on

1) Distances 2) Economies of scale 3) Imbalances

4) Type & value of goods 5) Competition 6) Port characteristics

Port reform
Amity International Business School

Difference between best and worst case in Latin America: 25% of worst case