L_LSR L-Logistics services

Financial services in the context of logistics

Cvičný test-kapitoly 8-12

 Key words:

Financial services, insurance services, banking services, carrier's general liability, freight forwarder's liability limitation

 Chapter objectives:

  • getting acquainted with the importance of financial services in the context of logistics,
  • understanding the importance of insurance and banking services in the context of logistics,
  • knowledge of the terms: carrier's general liability and freight forwarder's liability limitation.

 Time required to study the chapter: 8 hours

 Interpretation:

Financial services in the context of logistics:

Financial services (financial industry, financial sector) are one of branches of the services sector. They include all financial services from the field of financial industry which are provided by financial institutions and other entities. Their main or secondary object of activity consists in the management of financial resources.

The financial services of logistics services providers include in particular:

  • Banking,
  • Insurance,
  • Reinsurance,
  • Leasing and others.

Financial services in the context of logistics have the following divisions:

 A. Banking services

  • Storage of financial funds and valuable items
  • Securing (intermediation) non-cash payment transactions
  • Providing loans
  • Currency exchange services
  • Advisory and intermediary financial services
  • Processing and clearing payment and debit card transactions

 B. Insurance, reinsurance

 C. Other financial activities and intermediation (Holding activity, Financial leasing, Loan granting ...)

 D. Pension funding


Insurance services in the context of logistics:

Insurance activity means the taking over of insurance risks on the basis of concluded insurance contracts and the performance of them, as well as insurance management and liquidation of insurance claims.

Carrier's general liability:

Whether it is railway, road, air or maritime (or inland waterway) transport, the carrier (forwarder) is usually responsible (liable) for the loss, damage or late delivery of the shipment (consignment) from the moment of takeover to the moment of shipment delivery.
 

Carrier's/freight forwarder's liability limitation

  • According to the CMR - 8.33 SDRs (Special Drawing Rights) per 1 kg of gross weight of lost or damaged consignment as for the road carrier,
  • According to the Hague-Visby rules - 2 SDRs per 1 kg of gross weight of lost or damaged consignment or 666.67 SDRs per unit / unit as for the shipping (maritime) carrier.
  • According to the Montreal Protocols - 19 SDRs (XDR) per 1 kg of gross weight of lost or damaged consignment as for the air carrier,
  • According to the Convention on International Carriage by Rail (COTIF) - 17 SDRs (XDR) per 1 kg of gross weight of lost or damaged consignment as for the railway carrier.

 

 Study materials:

Basic literature:

LAMBERT, Douglas M, James R STOCK a Lisa M ELLRAM. Logistika. In: Praxe manažera. ed. 2. Brno: CP Books, Czech Republic. 2005. 589 p.  ISBN 80-251-0504-0.

Pospíšil, R., Hobza, V., Puchinger, Z. FINANCE A BANKOVNICTVÍ. 1. ed., UNIVERSITY OF PALACKY IN OLOMOUC, Czech Republic. 2006. ISBN 80-244-1297-7.

Recommended study materials:

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

  

Questions and tasks

 1.    The basic financial services of logistics services providers do not include:
accessory services
reinsurance 
leasing

2.    The banking services of logistics services providers do not include:
Securing (intermediation) non-cash payment transactions 
Processing and clearing payment and debit card transactionst 
Forfaiting and consignments insurance

3.    Carrier's general liability is defined as:
The consignment insurance must be arranged by the sender himself (without the carrier's knowledge) 
Obligation to insure the transported consignment by the carrier
The carrier is usually responsible (liable) for the loss, damage or late delivery of the shipment (consignment) from the moment of takeover to the moment of shipment delivery

  1. According to the Hague-Visby rules, the shipping (maritime) carrier's liability is limited to:  
    2 SDRs per 1 kg of gross weight of lost or damaged consignment or 666.67 SDRs per unit / unit 
    8.33 SDRs (Special Drawing Rights) per 1 kg of gross weight of lost or damaged consignment 
    2.5 SDRs     per 1 kg of gross weight of lost or damaged consignment

5.    Carrier's/freight forwarder's liability limitation 19 SDR per 1 kg of gross weight of lost or damaged consignment is determined by the:
Budapest Convention 
Montreal Protocols 
Hague-Visby rules

 

 

 Key to solve the questions:

  1.   A
  2.   C
  3.   C
  4.   A
  5.   B
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