Transportation Management
Bill of Lading
(ABBREVIATED TO B/L) IS THE MOST IMPORTANT DOCUMENT IN THE WHOLE SHIPPING AND FREIGHT CHAIN. PURPOSES OR ROLES 1.EVIDENCE OF CONTRACT OF CARRIAGE 2.RECEIPT OF GOODS AND 3.DOCUMENT OF TITLE TO THE GOODS
LIABILITY TO DAMAGE AND THEFT
A commodities propensity to damage other freight.
TRANSPORTATION RATES
ARE BASED ON THREE PRIMARY FACTORS -PRODUCT, WEIGHT, AND DISTANCE-
FOB ORIGIN AND FOB DESTINATION
ARE TYPICALLY QUALIFIED BY MODIFYING TERMS, THE MOST COMMON OF WHICH ARE FREIGHT COLLECT, FREIGHT PREPAID, AND FREIGHT PREPAID AND CHARGED BACK.
DOCUMENTATION
Bill of Lading Freight Bill Freighlt Claims
Freight Bill
CARRIER´S INVOICE FOR FREIGHT CHARGES APPLICABLE TO A SHIPMENT. ALSO CALLED FREIGHT INVOICE.
POTENTIAL SOLUTIONS FOR SMALL SHIPMENTS CHALLENGE
CONSOLIDATION ACROSS TIME OR PLACE. PLACE: THE TRANSPORTATION MANAGER LOOKS TO BUILD VOLUME WITH SHIPMENTS GOING TO A SIMILAR DESTINATION
EASY OF HANDLING
Challenges of handling that might be presented ( size, weight, etc).
FOUR FACTORS ARE USED TO DETERMINE A PRODUCT´S CLASSIFICATION:
DENSITY ,STOWABILITY, EASY OF HANDLY,LIABILITY TO DAMAGE AND THEFT.
THE CHANGES IN ECONOMIC REGULATION
HAVE HAD A PROFOUND IMPACT ON RATE DETERMINATION. TARIFF REQUIREMENTS HAVE BEEN GREATELY RELAXED, IF NOT ELIMINATED ALTOGETHER, AS A RESULT, CARRIERS, USERS, AND TRANSPORTATION SPECIALISTS CAN EXCHANGE PRICING DATA VIA ELECTRONIC MEANS, INCLUDING ELECTRONIC DATA INTERCHANGE (EDI) AND E-MAIL.
STOWABILITY
How easy is to pack into a load
DENSITY
How heavy a product is related to its size.
RATE DETERMINATION
IS ESSENTIAL TO CALCULATING THE APPROPIATE TRANSPORTATION COST, ACCORDING TO THE FOLLOWING FORMULA: WEIGHT X RATE= TRANSPORTATION CHARGE
FREE ON BOARD ( FOB)
IS FOLLOWED BY EITHER "ORIGIN" OR "DESTINATION" AND THIS LOCATION SPECIFIES THE POINT AT WHICH THE TITLE AND CONTROL OF A SHIPMENT, PASSES FROM BUYER TO SELLER.
TRANSPORTATION COST ANALYSIS
IS THE 2ND. CONSIDERATION IN RATE AND SERVICE NEGOTIATION.
THE WEIGHT BREAK
IS THE QUANTITY NECESSARY FOR A PER UNIT REDUCTION IN PRICE FOR THE CARGO´S TRANSPORTATION.
Freight Claims
IT IS A DOCUMENT THAT NOTIFIES A CARRIER OF WRONG OR DEFECTIVE DELIVERIES , DELAYS, OR OTHER DELIVERIES SHORTCOMINGS.
HOW TO SELECT A CARRIER?
MODAL AND CARRIER SELECTION HAS BECOME EVEN MURKIER IN RECENT YEARS WITH THE RISE IN WHAT WE CALL THE AMODAL SHIPPER.
TERMS OF SALE
ONE CONSIDERATION IN RATE AND SERVICE NEGOTIATIONS INVOLVES THE TERMS OF SALE, OR WHEN THE FREIGHT CHARGES ARE PAID FOR A PARTICULAR DOMESTIC SHIPMENT.
THE NATIONAL MOTOR FREIGHT CLASSIFICATION (NMFC)
ONE WIDELY USED SYSTEM FOR SIMPLIFYING THE NUMBER OF PRODUCTS IS .................................WHICH HAS 18 SEPARATE RATINGS, OR CLASSES, FROM 50 TO 500, THE HIGHER THE RATING , THE GREATER THE RELATIVE CHARGE FOR TRANSPORTING THE COMMODITY.
TRANSPORTATION COSTS TEND TO BE LOWER
PER UNIT OF WEIGHT FOR LARGER SHIPMENTS, THERE IS A NATURAL MOTIVATION AND NECESSITY TO CONSOLIDATE SMALLER SHIPMENTS INTO LARGER ONES.
AN AMODAL SHIPPER
REFERS TO A TRANSPORTATION MANAGER WHO PURCHASES A PRESPECIFIED LEVEL OF TRANSPORTATION SERVICE (E.G., TWO-DAY DELIVERY FOR A PARTICULAR PRICE) AND IS INDIFFERENT TO THE MODE(S) AND / OR CARRIERS USED TO PROVIDE THE ACTUAL TRANSPORTATION SERVICE.
TRANSPORTATION MANAGEMENT
REFERS TO THE BUYING AND CONTROLLING OF TRANSPORTATION SERVICES BY EITHER A SHIPPER OR CONSIGNEE.
THE CLASS RATE SYSTEM
SIMPLIFY EACH OF THE THREE PRIMARY RATE FACTORS- PRODUCT, WEIGHT AND DISTANCE.
CONSOLIDATING SMALL SHIPMENTS
SMALL SHIPMENTS WHICH WEIGHT MORE THAN 150 POUNDS AND LESS THAN 500 POUNDS, REPRESENT ONE OF THE MOST CHALLENGING SITUATIONS FACED BY THE TRANSPORTATION MANAGER
FOB ORIGIN,
THE BUYER ASSUMES TITLE AND CONTROL OF A SHIPMENT AT THE POINT OF PICKUP, WHILE WITH FOB DESTINATION THE SELLER RETAINS TITLE AND CONTROL OF A SHIPMENT UNTIL IT IS DELIVERED.
FOB ORIGIN, FREIGHT COLLECT:
THE BUYER PAYS FREIGHT CHARGES AND OWNS THE GOOS IN TRANSIT.
FOB DESTINATION, FREIGHT COLLECT:
THE BUYER PAYS THE FREIGHT CHARGES WHEN THE GOODS ARRIVE, AND THE SELLER OWNS THE GOODS WHILE THEY ARE IN TRANSIT.
WEIGHT BREAK CONCEPT
THE POINT AT WHICH THE WEIGHT OF A SHIPMENT IS AS BIG AS MUCH AS NECESSARY TO BE ASSESSED THE LOWER FREIGHT RATES WHICH ARE APPROPRIATE TO LARGER SHIPMENTS.
Rate
THE PRICE CHARGED FOR FREIGHT TRANSPORTATION ( "FARE" REFERS TO THE PRICES CHARGED FOR PASSENGER TRANSORTATION )
FOB DESTINATION, FREIGHT PREPAID AND CHARGED BACK:
THE SELLER OWNS THE GOODS IN TRANSIT, PREPAYS THE FREIGHT CHARGES, AND BILLS THE BUYER FOR THE FREIGHT CHARGES.
FOB DESTINATION, FREIGHT PREPAID:
THE SELLER PAYS THE FREIGHT CHARGES AND ALSO OWNS THE GOODS IN TRANSIT.
FOB ORIGIN, FREIGHT PREPAID AND CHARGED BACK:
THE SELLER PAYS THE FREIGHT CHARGES IN ADVANCE BUT BILLS THE BUYER FOR THEM. THE BUYER OWNS THE GOODS IN TRANSIT.
FOB ORIGIN, FREIGHT PREPAID:
THE SELLER PAYS THE FREIGHT CHARGES, BUT THE BUYER OWNS THE GOODS IN TRANSIT.
REASONS WHY SMALL SHIPMENTS ARE A CHALLENGE:
THEY TEND TO REQUIRE A HIGH DEGREE OF MANUAL LABOR. THERE NEEDS TO BE AN INFORMATION SYSTEM CAPABLE OF KEEPENG TRACK OF EACH SHIPMENT STATUS.
Rate and Service Location /Transportation Management/
VARY FROM PRODUCT TO PRODUCT VARY FROM LOCATION TO LOCATION VARY FROM CUSTOMER TO CUSTOMER
RATE DETERMINATION FORMULA
WEIGHT X RATE= TRANSPORTATION CHARGE
