L_LSR L-Logistics services

Transport and freight forwarding services

 Key words:

Transport, transport services, specifics of transport services, structure of the transport services process, forwarding services, International Federation of Freight Forwarders Associations 

 Chapter objectives:

  • getting acquainted with the terms: transport, transport services and transport activities,
  • acquiring knowledge about the terms: specific transport services and structure of the transport services process,
  • understanding the importance of forwarding services,
  • acquiring knowledge about the International Federation of Freight Forwarders Associations.

 Time required to study the chapter: 8 hours

 Interpretation:

Transport services as a logistics process:

Transport - effective and intended movement of transport means along transport routes; relocation (transportation) activity in space and time - cargo or passengers.

Transport services - represent services directly related to the process of carrying goods (cargo; passengers) in space and time.

Carrier - is define as a natural or legal person operating the transport for foreign or personal use. The carrier concludes a transport contract with the shipper, under which he undertakes to arrange transportation within the agreed time and price to the agreed place under his own name on his account.

Transportation - the resulting effect of the transport process (the relocation process).

Transportation services - include a whole range of relocation activities including relocation itself. 

Shipper - is used to identify the carrier's customer, sometimes even the forwarder. This is a comprehensive name for the sender (exporter; consignor) and recipient (importer; consignee).

Specifics of transport services:

According to the character of the transport route and the means of transport moving on this route, these are divided into following transport sections:

  • Railway,
  • Road,
  • Inland waterway,
  • Maritime,
  • Air,
  • Multimodal; combined,
  • Unconventional (oil pipelines, gas pipelines, suspended tracks and cableways, etc.).

Structure of the transport service process:

Transport process (the process of providing transport services) includes several interdependent (follow-up) activities, from a contractual collateral of transport to accounting the haulage (freightage; transportation charge).

 

Forwarding services:

Freight forwarding services - represent services of all kinds that relate to the providing transportation offered by the forwarder to his principal (his customer).

Freight forwarder - is a person (legal or natural) who undertakes to provide transportation of goods in his own name and on behalf of his principal (consignor or consignee).

Freight forwarding, in the Czech Republic, is regarded as a free trade (Act No. 286/1995 Coll. - Act amending and supplementing Act No. 455/1991 Coll., On Trades Licensing). The provisions of the Commercial Code (Act No. 513/1991 Coll.) is applied to the forwarding agreement.

The principal activities of the freight forwarder according to the FIATA (International Federation of Freight Forwarders Associations) is:

  • to provide, organize and optimize goods transportation (carriage),
  • to assist the principal (customer) in solving all transportation issues,
  • to ensure the choice of the optimal transport route and the most suitable means of transport,
  • to assist their principal in the payment process,
  • to take care of all transport requirements and formalities related to the transportation services and their execution.

 

 Study materials:

Basic literature:

NOVÁK, R., ZELENÝ, L., PERNICA, P., KOLÁŘ, P. Přepravní, zasílatelské a logistické služby. Prague: Wolters Kluwer, a. s., Czech Republic. 2011, 392 p. ISBN: 978-80-7357-735-3.

PERNICA, P. Logistika (supply chain management) pro 21. století. 2. ed. Prague: Radix s.r.o., Czech Republic. 2005. 536 p. ISBN 80-86031-59-4.

Recommended study materials:

OUDOVÁ, Alena. Logistika – Základy logistiky. 1. ed. Prostějov: Computer media, Czech Republic. 2013, 104 p. ISBN 978–80–7402–149–7.

ŠKAPA, R, Reverzní logistika. MU Brno, Czech Republic. 2005. ISBN 80-210-3848-9.
 

Questions and tasks

 

 1.    Carrier is define as:
a comprehensive name for the sender (exporter; consignor) and recipient (importer; consignee)
a person (legal or natural) who undertakes to provide transportation of goods in his own name and on behalf of his principal (consignor or consignee). 
entity that concludes a transport contract with the shipper, under which he undertakes to arrange transportation within the agreed time and price to the agreed place under his  own name on his account 

2.    Transport services are:
services of all kinds relating to the provision of transport, collection, storage and handling of goods 
services directly related to the process of carrying goods (cargo; passengers) in space and time 
services of all kinds that relate to the providing transportation offered by the forwarder to his principal (his customer)

3.    According to the character of the transport route and the means of transport moving on this route, these are divided into transport sections. They do not include:
unconventional transport
maritime transport
dynamic transport

 

  1.   Freight forwarding, in the Czech Republic, is regarded as a:
    reporting trade
    free trade
    licensed trade

5.    The principal activities of the freight forwarder according to the FIATA do not include:
collectiing, sorting, dismantling and processing used products, components, by-products, surplus stocks and packaging material where the main purpose is to ensure their re-use or material evaluation in an environmentally sound and economically attractive way 
to assist the principal (customer) in solving all transportation issues 
to provide, organize and optimize goods transportation (carriage)  

 

 

 

 Key to solve the questions:

  1. C
  2. B
  3. C
  4. B

       5. A