VersionSteele13Dec09

AGS Divisional Project 214A4 ‘Agribusiness’

Handling of Goods and Materials Transport and Freight

Philip Mariner Transport Consultant

December 2003

Food and Agriculture Organization Rome, Italy

ii

The paper represents findings from work in progress and has been released to encourage the exchange of ideas and experience related to agricultural and food engineering within agro-food systems. In this way interim findings can be brought to the public domain as quickly as possible, even if the presentations are less than fully polished. The paper carries the name of author and should be used and cited accordingly. The findings, interpretations and conclusions are the author’s own. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO. All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed to the Chief, Electronic Publishing Policy and Support Branch, Communication Division, FAO, Viale delle Terme di Caracalla, 00153 Rome, Italy or by e-mail to copyright@fao.org

iii

Executive Summary The document provides information on freight handling of goods and materials, and highlights some of the key factors that should be considered by exporters, transporters or importers of produce. Particular attention has been given to movement of goods to and from developing countries. Freighting goods has many different connotations – it all depends on who is doing the talking. In shipping circles this generally means moving goods by sea or by air, although in the USA ‘shipping’ is a term frequently used for moving goods overland by road, rail or river. The term is slipping into general international use. The mode of transport determines the vehicles involved and the many different handling, packaging and storage options involved. Consider:

Water – ocean vessels, coastal vessels and inland waterway barges or craft. Air – aircraft. Land - road trucks, rail freight trains, pipelines and conveyor belts. In remote

areas consider various carts, tractors and trailers, pack animals and people. There are numerous choices, although the reality of practical options can be a deal more restricted no matter the availability of different modes. Choice will depend upon:

Cost-benefit analysis for each transport type (dependant on the nature of the product being transported). Thus ensuring economic viability.

Advantages and disadvantages of different transport types for the task in hand. Physical/technical nature of individual transport types. Condition and standards of relative transport forms.

Moving goods by sea Almost without exception all long-distant and/or overseas shipment is by sea (except where speed is essential and value is high). Sea shipment provides the basis for international trade of all bulk cargo; no matter whether this is grain, oil or cars - shipping is the most cost-effective transport for long-distant volume/products. Special ships, loading and unloading/handling equipment and dedicated ports dominate the systems currently in-use; and all this has happened during the past 50 years. Even where goods are mixed and non-uniform, containerization has been developed to such an extent that general-purpose freight haulage has become dominated by the ubiquitous 20 or 40 foot steel container. Tramp and general purpose freighters continue to dominate the smaller ports (away from the main shipping routes), but the trade links trans-Atlantic, trans-Pacific and Europe-SE Asia are the domain of the container ship. These are the ‘trading blocs’ with which everyone else has to comply. Direct main line shipping services between developing countries are not generally available, although ‘newly industrializing’ countries have begun to attract the services of the main commercial ship owners. SE Asia is a prime case with significant regional shipping linking, for example Hong Kong, Singapore, South Korea, Taiwan and mainland China. South Asia is poorly served, and Africa is poorly served. In Africa, for example, there are just a few services from North Africa to West and Central Africa and to East

iv

and Southern Africa. Whilst coastal, short sea and intra-regional services are scarce, there is increased trade and service between, for example Southern and West Africa, perhaps due to use of the main South–North trade routes that ply the Cape of Good Hope between Europe and SE Asia. The main reason for the paucity of services between the low-income countries is the comparatively low volume of trade between them. For South-North trade, the low-income countries are often treated as way ports (i.e. ports en route to the major markets). Hence, they often have to rely on transhipment services to enable their produce to reach overseas markets, with the delays and difficulties which frequently ensue. A major problem, particularly for low-income countries in Africa, is thus a dependence on shipping services primarily geared to connect the industrial countries. Shipping is more difficult for the land-locked countries, which are obliged to rely upon neighbouring countries with access to the sea and onward shipment by rail or road. Consider, for example, the reliance of Uganda on Kenya, and Malawi on Mozambique. Road freight Road transport is important the world over, and particularly in the low-income countries where limited infrastructure is available to shift goods by rail, air or water. Trucks are reliable and organised, with recent developments in all-weather road networks sufficient to replace the uncertainty of earlier times. Moreover, trucks can normally be maintained within local resources in all but the poorest of socio-economic environments. Trucks rely upon petrochemical fuels – most of which are imported – but such fuels remain at highly competitive prices (and are <15% of normal annual running costs). Estimates show that >80% of all freight movement in Africa is by road, but the continent is generally poorly served with infrastructure, facilities and a modern road fleet – notwithstanding need. Marketing across inconvenient international borders also creates issues for land transport, where cabotage policies restrict the use of trucks in one country from operating in another. This results in additional goods handling and a resultant increase in transport costs. Furthermore, there are frequently delays at border crossing posts and at customs terminals. With pledges of common markets continent wide, cabotage remains a stumbling block on the way to cheaper goods – and, it follows, the demise of the smaller and/or less efficient producer. Railways Rail transport is inflexible for many goods transport applications. In many countries rail fails to provide the availability, frequency and regularity of services demanded by shippers/producers. Rail tariffs often discriminate against the use of containers. Many containers are packed and unpacked in ports, and the cargo is moved between the port and the inland location in conventional loose form. Consequently, transit times from origin to destination are long on many routes, and particularly for land locked countries such as Uganda, Burundi and Rwanda. This raises challenges for manufacturers shipping out and importers bringing goods into these countries. An inefficient rail network from

v

the coast is one more challenge for traders - in addition to the delays, damage and loss of goods that are typical of the issues facing land-locked countries. Unlike road trucks, rail networks require a concerted and well-organised management and administrative structure. When linked to inland shipping – across lakes and along rivers – the resources available can be severely stretched; with locomotives, rolling stock and skilled staff in short supply, in the wrong part of the country and without the investment in facilities and equipment that is essential to keep the network active and competitive. Rail has always been considered the answer to freight movement over long distances and in areas with few roads, which was largely the case with land freight movement during the 19th and early 20th centuries – everywhere - before road haulage became competitive. Many of the existing rail networks in the low-income countries were established during this time. Some have not changed since. Movement by Air Air transport is a high cost and high investment mode of transport. Despite this, the use of aircraft for the movement of goods is growing. Air freight is suitable for goods requiring immediate delivery or those of high value/low weight. Clearly a comparatively short transit time is a major advantage of air freight - despite the relatively high costs. The issue is also one of economies of frequency and regularity – particularly if passenger flights can be used for movement of parcels/small goods. Frequent congestion at sea ports, coupled with the non-availability of regular or frequent shipping services are inhibiting factors which, typically, do not feature when using passenger aircraft for transit. Consequently the poor quality, relative slowness and unreliability of surface transport will frequently encourage a shift to air freight. Air cargo may be packed in special containers that are lightweight whilst airborne, and it may then be re-packed into surface containers for subsequent movements by road or rail. As a result, goods will need to be transferred between the different transport modes in loose form, because of the incompatibility of the containers involved. Further, rapid handling and specialised facilities will be required at airports to enable the planes to be quickly turned around, and goods off-loaded, stored and/or shipped directly to markets.

vi

Acknowledgements The document has been prepared within an author’s contract with the Food and Agriculture Organisation of the United Nations (FAO) and with the funding and administrative support of Dr Jeffrey Mrema the Director of the Agricultural Services Division (AGS). This support is gratefully acknowledged; and too the management support provided by the Agricultural and Food Engineering Technologies Service (AGST). This document would not have been possible without the invitation, encouragement and contribution of Dr Peter Steele Senior Technical Officer (Agro-Industries) AGST. I would also like to thank Dr Roberto CuevasGarcia Technical Officer (Agro-Industries) AGST for his contribution to the preparation for this document. Tetra Pak, Ms Sandra Selva (Eno Transportation Foundation, Inc.), the Library of Congress (DRC), Mr Michael Barron and Dr Peter Crossley have authorised the use of their material in this paper, and for this I am grateful. I am indebted to my family for their continuous support and patience particularly Pam, Craig and Tracey Mariner. Finally, I would like to extend particular thanks to Mellisa Steele for her assistance in proof reading and editing. Philip Mariner Norwich England 31 December 2003 philip.mariner@talk21.com

vii

Foreword Materials handling is the basis for the organised trading of commercial materials and goods. Worldwide, human settlement has evolved on the basis of the trading routes that have developed since ancient times. Trading is dynamic and the systems required for packaging, handling, transporting and managing freight continue to change to take advantage of advanced technologies and of new markets that are recognised and exploited. Materials supplies and handling, freighting and delivery to the client dominate, and – considered by some - determine the very basis of our global economy. There is no part of human society that is not, in some way, linked into trading networks. Farmers, producers and manufacturers world-wide remain dependent upon systems that will deliver their products cheaply and effectively – this enables them to maximize profits (with all that this entails for boosting both company and personal well-being). Much time and energy is spent procuring and/or supplying agricultural goods for shipment within and between the low income countries, and between the producer countries and the industrial importers. The key issue is one of satisfying markets wherever they may be. The crucial markets (the richest markets) are those found in the industrial countries of Western Europe, North America and around the Pacific Rim. Transport linkages between these regions and within them dominate the movement of international goods. Goods have to be shipped with care – whether to market in the local town, or halfway round the globe. The demands of the client dominate timing of delivery, the quantities required and the condition in which the goods have to be delivered. It follows, therefore, that issues of late delivery, delivery of spoiled goods or delivery of insufficient quantities are unacceptable - always. Herein it is that the producer/seller is at risk; notwithstanding that the producer may be many thousands of kilometres away, and dependent upon a sophisticated freight handling and storage network that is in business to deliver to the client. Service industries supply finance and insurance to take account of the risks involved – and these can be expensive – but everything ultimately depends upon the multitude of choices that prevail for handling and shipping. Trade is in both directions – with the raw materials exchanged for the goods that travel in the opposite direction; and the same conditions apply for product quality, customer satisfaction, increased trade and income for the seller or trader and, importantly, fair prices paid at farm or factory. The study undertaken by the freight handling specialist Philip Mariner has highlighted the increasing sophistication of materials handling and shipment within international markets. Notwithstanding the traditional nature of much of agricultural production in the low-income countries, the interface between raw materials production and shipment to markets in the industrial countries has become the domain of advanced technologies for handling, packaging, carriage and distribution. An understanding of the changes underway is essential; that the small producer is able to maintain access to markets. Increasingly, it is the industrial buyer, the trader and the haulage companies that have come to dominate the transport networks that have developed during the past 50 years –

viii

the period in which cheap and reliable air freight and specialist shipping has become widely available. In order to maximise efficiency and competitiveness in the business of moving goods from one point to another, everyone involved is obliged to work one-with-the-other; including the relevant government departments, shippers and traders and, importantly, the producers and manufacturers. Failure to do so is no longer an option. Modernising transport modes, and introducing laws and regulations that are more applicable are essential steps for competitive exporting and importing. Communities that fail to invest fall ever further behind within international markets. Philip Mariner has provided a text that is timely; in an increasingly inter-dependent world it is the traders that have come to dominate the transport networks for goods and services. The report helps clarify many of the increasingly complex issues involved with choices. Peter Steele Senior Technical Officer (Agro-Industries) Agricultural and Food Engineering Technologies Service Agricultural Services Division Food and Agriculture Organization Rome Italy

ix

Contents SECTION PAGE Executive summary iii Acknowledgements vi Foreword vii Contents ix List of figures xii List of plates xii Glossary and abbreviations xiii ________________________________________________________________________ 1. Introduction 1 2. Harvesting and post harvesting handling of materials 2 3. Types of Freight 3

3.1 Transits by sea 3 3.2 Transits by road 7 3.3 Transits by rail 9 3.4 Transits by air 11 3.5 Transits by rivers and inland waterways 12 3.6 Multinodal transport 14 3.7 Specialised movements 15

4. Packaging and marking inventory and follow up 17 4.1 Importance of packaging 19 4.2 Functions of packaging 20 4.3 Packaging materials 21 4.4 Traditional packaging materials 26 4.5 Types of packing 27 4.6 Containerisation 28 4.7 Loose items 30 4.8 Marking 31

5. Records and follow up 33

5.1 Records 33 5.2 Follow up 33

6. Handling 35

6.1. Factors determining type of cargo handling equipment 36 6.1.1 Cargo characteristics 36 6.1.2 Distribution arrangements 36 6.1.3 Handling costs – general safety and reliability 36 6.1.4 Resources available at the seaport 37 6.1.5 Weather conditions 37

x

6.1.6 Type of vessel 37 6.1.7 Competitive situation in relation to other ports 37 6.1.8 Alternative cargo handling systems 38 6.1.9 Combined transport operation 38 6.1.10 Tidal conditions 38

6.2 Types of cargo 38 6.2.1 General cargo 38 6.2.2 Unitised cargo 39 6.2.3 Vehicular shipments 42 6.2.4 Containerised cargo 43 6.2.5 Bulk cargo 44 6.3 Types of cargo handling systems 44 6.3.1 Conventional break-bulk handling 45 6.4 Labour vs. capital handling systems 48 7. Stowage and Securing of Cargo 49 7.1 Introduction 49 7.2 Tailoring stowage methods to conventional cargo 49 7.2.1 Cartons and crates 50 7.2.2 Pallets and unit loads 50 7.2.3 Metal drums, polydrums and barrels 51 7.2.4 Bagged cargo 52 7.2.5 Bales 52 7.3 Stowage – other types of cargo 52 7.3.1 Refrigerated cargo 52 7.3.2 Liquids 53 7.3.3 Outsize/out of gauge cargoes 53 7.4 Securing cargo and issues of safety 54 7.4.1 Securing and materials 54 7.5 Cargo care 55 7.5.1 Container inspections 55 7.5.2 Condensation 56 7.5.2.1 Container sweat 56 7.5.2.2 Cargo sweat 57 7.5.2.3 Heat radiation at terminals an on board ship 55 7.5.3 Ventilation 58 8. Carriage instructions and practice 59 8.1 Education and training 59 8.2 Instructions to carriers 60 9. Contacts for Movements of Goods 62 9.1 Types of charter party contracts 63 9.2 Charter party terms 63 9.3 Provisions within charter parties for responsibilities and costs 64 9.4 Movement by road 66

xi

9.5 Movement by rail 66 9.6 Movement by aircraft 67 9.7 Incoterms 68 9.8 Sanction on modes of transport used 67 9.9. Management, supervision and control issues 67 9.10 Responsibilities – intermodal transport 68 9.11 Adequacy of documentation 69 10. Security Arrangements 71 10.1 Protection of goods in transit 71 10.1.1 Palletisation and containerisation 71 10.2 Hazards and risks to security of goods and safety for people 73 10.3 Forms of protection 73 10.4 Insurance issues 74 11. Recommended Goods Handling Practices 75 11.1 Shipper’s associations 75 12. Fundamentals of Freight Handling 76 13. References 77 Annex 1. Documentation 81 A1. Example of cargo manifest 81 A2. Example of packing list 82

xii

List of Figures Page

Figure 1. Sketches of cargo handling tools and equipment. 39 Figure 2. Two configurations of pallets with the same basic design. Typically timber made and used for a single journey they are light, strong and easy to handle. 40 Figure 3. Containership in plan and side elevation. 43 Figure 4. Flow chart demonstrating stages undertaken in conventional Break-bulk handling. 47 Figure 5. Recommended ways of stowing boxes and crates in containers. 50 Figure 6. Example booking note. 61 Figure 7. Example of charter party extract. 64 List of Plates Plate 1. Ro-ro vessel showing rear access ramp and agricultural tractors unloading. 5 Plate 2. LASH vessel loaded and tugboats in attendance. 7 Plate 3. Open hold and stored good on break-bulk cargo ship in port. 7 Plate 4. Light three-wheel motorcycle truck. 9 Plate 5. Production of cut flowers in Kenya. 12 Plate 6. Production of cut flowers in Kenya. 12 Plate 7. Congo River showing passenger carrying barges attached to the main vessel. 13 Plate 8. Animal driven waterwheel supplying irrigation water in the valley of the River Nile. 14 Plate 9. Drinks and foods are packed into colourful robust cartons and securely stacked in the supermarket. 17 Plate 10. Versatility, convenience and security of liquids in modern packaging. 21 Plate 11. Versatility, convenience and security of liquids in modern packaging. 21 Plate 12. Jute sack used for packing potatoes; and clearly marked with contents and weight. 22 Plate 13. Sisal plantation in East Africa. Fibres are extracted mechanically from the leaves. 23 Plate 14. Plastic liquid containers have revolutionized food and beverage packing and handling during the past 30 years; and all but completely replaced glass. 24 Plate 15. Steel freight containers that typically come in lengths of either 20 feet or 40 feet; and can be handled and stacked with specialised handling equipment. 29 Plate 16. Marking on a package. 31 Plate 17. Pallet boards 41 Plate 18. Ro-ro vessel, but different in configuration from the one shown in Plate 1, and more of a ‘combined’ vessel given that they carry barges that can be floated out for access to port. Used for trading on the west coast of Africa for many years. 42 Plate 19. Damaged container with buckled walls as the result of internal pressure from a shift in cargo, and broken doors 72

xiii

Glossary and Abbreviations B/L A ‘Bill of Lading’ is the document covering movement of goods by

sea. Break-bulk Method of cargo stowage and/or handling referring to individual

packages rather than containerised cargo. Bulk carriers/vessels Vessels designed to carry dry or liquid bulk cargoes; generally in full

ship loads. Cabotage The right to operate sea, air or other transport services within a

particular territory and/or the restriction of the operation of sea, air or other transport services within or into a particular country to that country’s own transport services.

CIM Governing carriage by rail. The International Convention for the Carriage of Goods by Rail (also known as the CMR). Signed in Berne, Switzerland 25 October 1952.

CFS Container freight station. Demurrage Charge raised by the carrier for detention of vessel or equipment

beyond ‘free period’ as determined by a contract. Dew point Temperature at which the atmosphere becomes saturated with water

vapour by cooling. Dunnage The material used in stowing cargo in a ship’s hold or in a container

so as to prevent movement. DWT Dead weight tonnes. The weight which a vessel is capable of carrying

(by way of cargo, bunkers, stores and fresh water) when loaded to maximum permitted marks.

Freight forwarder A ‘middle-man’ whose task it is to arrange shipment between the importer and exporter.

FCL Full container load. FIO ‘Free in and out’ of stowage. Term used to cover responsibility and

sometimes costing for loading and unloading operations of a ship on charter.

Flat rack container Container without sides for carriage of over-sized items. ICD Inland clearance depots. Incoterms International rules for the interpretation of trade terms. LASH ‘Lighter aboard ship’. LASH vessels carry barges that are floated into

and out of a mother vessel, which undertakes the ocean transit. LCL A less than a full container load. Lloyds Register The internationally accepted register describing ships, their

specifications and their owners. NVOCC Non-vessel operating common carrier. OOG Out of gauge cargo. Polydrums Plastic drums, used in the transport of liquids, for example latex. Stowage factor Space occupied in the ship’s hold (in cubic metres), by one metric

tonne of cargo (1,000 kg). Ro-ro Roll-on, roll-off vessel where a ramp facilitates use of vehicular cargo. Tramp vessels Vessels that are run as and when required to suit specific cargo. These

vessels are not run on regular routes as is true of liner vessels. Weigh bridge Scales for weighing trucks.

1

Chapter 1. Introduction Farmers and manufacturers world-wide are keen to distribute and deliver their produce to meet demands, thereby increasing their output and thus maximising profits with the end result of enhanced business and personal well-being. Much time and energy is spent procuring and/or supplying agricultural goods for shipment within and between developing countries, and between the producer countries and the industrial importers. The key issue is one of satisfying markets wherever they may be. Crucial markets include the industrial countries of Europe, North America and the Far East. Of primary importance is provision of a swift, efficient and reliable service to these markets. What consideration is given to ensuring that the agricultural products or materials arrive at their final destination complete and sound? Here the concern is with issues of product quality, customer satisfaction, increased trade and income for the seller or trader and, importantly, fair prices at farm or producer level. The issues are of course that these goods travel in the opposite direction to the materials and goods sold off farm, but the same standards of delivery are required. Knowledge of harvesting and packing is essential to help ensure the success of the subsequent freight operations. Time is an important factor for perishable goods – for example what storage period is appropriate and/or possible for a particular product? Can a product be traded when market prices are at their most favourable? Consideration has to be shown for the methods used. Appropriate transport vessels, containers and suitable packaging are all essential for cost-effective handling; and handling moreover, that will ensure that damage or loss of material is minimised. The objective is to ensure sound delivery. There are limitations placed on the means of transport available and on the preparatory work and effort required to provide, for example protection during travel, ease of handling, presentation and similar. These limitations affect the way in which many goods can be packaged, containerised, shifted, stored and handled; limitations that may ultimately constrain production. The technical and economic information available is extensive and widely applied in the industrial countries. This information is less well known and only infrequently applied in many developing countries. This report will set out to introduce some of the issues involved.

2

Chapter 2 Harvesting and Post Harvesting Handling of Materials

In simple terms, harvesting involves collecting and/or separating crops in the field either by hand or with some mechanical assistance, which normally includes transport. There then follows a transport movement by road to the next stage in the process either on the farm itself or at a local processing factory or market. Crops are then processed and sold on to either local or national markets or they maybe exported overseas. Specifically these harvesting and post-harvest processes are as follows:

1. Harvesting materials in-field and/or or separating marketable components from the crop in the field.

2. Possible initial in-field processing. 3. In-field transport. 4. Transport of the crop and residues from the field to the farm buildings or factory. 5. Possible processing of materials at the farm or factory. 6. Packaging farm/factory. 7. Onward transport from farm/factory to the market (possibly involving numerous

stages). Given that agricultural crops comprise a major component of the economies of many developing countries, the movement of the marketable component of the crop from the point of harvesting onwards is likely to dominate the transport operations in those countries. However, much of it is one way (Crossley, 2003).

3

Chapter 3. Types of Freight The word ‘freight’ has different connotations. It is widely accepted in shipping circles as referring to the employment of ships for transportation of goods or the cost for moving goods by sea (or by air). However, in the United States of America (US) in particular, the word is considered to cover the transport of goods by land or water and the charge associated with this (OUP, 1978). It is elsewhere defined and understood as meaning cargo or shipload. Goods are moved from one point to another by various means, for example:

Sea. Road. Rail. Air. Rivers and other inland waterways.

A combination of these forms and/or specialised movements may also apply. The medium in which transportation takes place influences the type of vehicle to be used. The vehicle, along with its means of locomotion is referred to as the ‘mode’. Examples are shown below:

Water – ocean vessels, coastal vessels and inland waterway barges or craft. Air – aircraft. Land - road trucks, rail freight trains, pipelines and conveyor belts. In remote rural

areas this may also include carts, bicycles, tractors, animals and people. Careful consideration needs to be given to the mode of transport used or combination thereof in terms of:

Cost-benefit analysis for each transport type (dependant on the nature of the product being transported). Thus ensuring economic viability.

Advantages and disadvantages of different transport types for the application. Physical and/or technical nature of individual transport types. Condition and standards of relative transport forms.

3.1 Transits by Sea Virtually all goods destined for an overseas or distant market (excluding those where speed is of the essence) will require movement, at least in part, by sea. Carriage of cargo by sea is vital to international trade because it is arguably one of the most cost-effective transport options when it comes to large volumes and long distances. Trade links are largely dominated by shipping services between developed market-economy countries. There are three principal ‘trading blocs’ according to UNCTAD (1994).

1. Transatlantic – from North America to Europe. 2. Transpacific – for example, from South East Asia to Australasia. 3. Europe – for example, routes to the Far East.

4

Direct main line shipping services between developing countries are not generally available, except for the newly industrialising countries of Southeast Asia where flourishing intra-regional trade has developed. Inter-regional shipping services are limited to a few countries of origin and destination (for example Hong Kong, Singapore and the Republic of Korea) that are connected by regular end-to-end services, and regional feeder services. Moreover, there are frequently used links with other regions, for example, countries in the Far East and, to a lesser extent, in East Africa and Southern Africa. In Africa there are a few services from North Africa to West and Central Africa and to East and Southern Africa. Whilst coastal, short sea and intra-regional services are scarce, there is increased trade and service between, for example, Southern Africa and West Africa. This is perhaps due to its utilisation of the main south–north trade route. The main reason for the paucity of services between developing countries is the comparatively low volume of trade between them. During south-north trades, developing countries are often treated as way ports (i.e. ports en route to the major markets). Hence, they often have to rely on transhipment services to enable their produce to reach overseas markets, with the delays and difficulties which frequently ensue. A major problem, particularly for developing countries in Africa, is thus a dependence on shipping services primarily geared to connect the industrial countries and the three main trading blocs listed above. Further, landlocked countries are forced to rely on neighbouring countries with a seaboard for freight transportation. One example is the reliance of Uganda and Malawi, respectively, on Kenya and Mozambique. Efficient transportation is jeopardised in this way because insufficient cargo volumes exist to justify the establishment of economically viable services, and to sustain an acceptable usage frequency for these routes. This results in a lack or reduced range of services outside the main shipping networks. It is also the case that the ports of some developing countries cannot accommodate the large vessels used on main line routes. Equally, the poor reputation some ports have earned regarding port handling efficiency discourages calls by main line vessels (UNCTAD, 1994). The review of maritime transport in 1989 (UNCTAD, 1994) stated that 55 percent of Asia’s trade was intra-regional (i.e. feeder, coastal and short sea routes) and that only 45 percent was with other parts of the world. In Africa, 94 percent of continental trade with countries was outside the region, this being mainly with the industrial countries. In North Africa only less then one percent of trade was reported as occurring within the region (UN/ECA, 1986). Movement by sea is best undertaken for cargos that are:

Bulk freight (solids and liquids). Containerised shipments. Unitised cargo (cargo on pallets, skids etc).

However, the nature of goods to be transported and their intermodal requirements and limitations will usually determine the type of ocean vessel used to carry them. Most general cargo today and especially that bound for the major trading blocs are moved in containers on board containerships. However port limitations, transhipment requirements,

5

the size of cargo items and so forth, are all likely to affect the decision on what type of vessel to use. The following is a brief description of the major types of ocean-going vessels. (i.) Containerships. Containership operation is an efficient ocean transport method for general cargo (van den Burg, 1969). It permits the transfer of containers between vessel and truck or rail wagon and thereby facilitates a fast turnaround. The intermodal aspect characteristic of the container is useful to shippers in terms of speed, efficiency, security and low cost. The distinction can be made between two types of containerships:

Fully Cellular containerships. Defined by their name, these are ships devoted to carrying containers and have no facilities for carrying any non-containerised cargo or containers/goods on chassis.

Ro-Ro ships. These are built to accommodate general cargo on wheels. Cargo can be moved on and off these vessels with the help of ramps (Plate 1). During the voyage by sea the cargo remains on its wheeled chassis, with this being secured to the vessel by lashing and locking mechanisms. Such ro-ro ships can accept containerised cargo on wheels/wheeled chassis, large items and wheeled vehicles including tractors, cars and agricultural machinery.

Plate 1. Ro-ro vessel showing rear access ramp and agricultural tractors unloading.

(Mahoney, 1985) (ii.) LASH (lighter aboard ship) vessels. LASH vessels carry barges (i.e.‘lighters’). Cargo is loaded into the barges at place of origin; the barges are then either towed or moved under their own power to the mother LASH vessel and placed aboard (Plate 2). The LASH vessel undertakes the ocean voyage to the destination main port where the procedure is reversed. For example, the LASH mother vessel may discharge the barges at Rotterdam and these proceed via the River Rhine to a destination (e.g. Cologne), well into the German hinterland (Mahoney, 1985). This system has long been operated from

6

Nigeria to the European ports. LASH vessels can accept a wide range of cargo, particularly bulk but also containerised, outsized and break-bulk cargo (Branch, 1986).

Plates 2. LASH vessel loaded and with tugboats in attendance. (Walters, 2003) Apart from inland connection by water, this system excels itself where port facilities are not sufficiently well developed to permit direct loading and unloading of a large ship. LASH shipments going through these ports avoid freight port handling and require minimum use of port facilities. (iii.) Break-bulk vessels. Break-bulk vessels carry non-containerised general cargo. These ships provided for the movement of all general cargo on ocean voyages prior to the container revolution that started in the mid-1950s (Mahoney, 1985). Although these vessels have been largely forced off all major trading routes by container vessels (the latter being more efficient), such break-bulk ships remain in operation on secondary and tertiary routes. Cargo is loaded into a number of individual holds on the vessel in unit loads and in a pattern that provides for unloading, security in store and ship stability (see Plate 3). On major trade routes where container vessel operation is the rule, small shippers/suppliers who would in earlier years have used break-bulk ships for the transit of their products, now have to use the services of freight forwarders and such middlemen for consolidation of their shipments and containerisation for movement by container ships. (iv.) Bulk vessels. Bulk ocean vessels (also known as ‘bulk carriers’) are specifically constructed for the carriage of basic commodities such as grain, minerals and petroleum. Alternatively they often carry primary produce, for example, timber, paper pulp, rubber, cotton, wool, meat and vegetables (Branch, 1977).

7

Although an exporter of produce may frequently be faced with no real option other than to use sea transport, if the volumes transported via the same route are sufficient to attract carriers to provide a regular service, then this can result in regular and timely delivery of goods and therefore a satisfactory means of meeting markets. Carriers prepared to offer a regular liner service will invariably be able to provide vessels of a good standard ensuring prompt and sound delivery of goods (UNCTAD, 1994). The primary disadvantage of sea carriage is that with shipment by tramp vessels, timely delivery may not always be assured. The shipper must weigh up the lower costs associated with these vessels against a possibly less reliable service (in terms of condition and quantity of delivered goods). It is essential to verify the details of the vessel to be used to carry a large (e.g. bulk) cargo in advance of shipment. This can be done using the Lloyds Register or through a reliable shipping agent. Indeed insurance companies will invariably have provisions in their policy conditions specifying that vessels not in excess of say 15 years old should be utilised. 3.2 Transits by Road Whilst carriage of goods by sea may be the most cost effective solution as far as large volumes and long distances are concerned road, rail and air transits play an increasingly

Plate 3. Open hold and stored good on break-bulk cargo ship in port. (NEDO, 1973)

8

important role when volumes are smaller and distances are shorter. It is frequently the case in developing countries that the road transport industry does not provide an adequate range of frequent and regular services. Effective and efficient road transport infrastructure and facilities are often not available to producers and shippers. A high proportion of cargo (estimated 80 percent in Africa) is carried by road in developing countries (UN/ECA 1990a in UNCTAD, 1994). In many developing countries however, the road network is poorly developed. For example, of the 650,000 km of roads in Africa, only 34 percent are paved and the condition of just five percent is considered ‘good quality’. Many of the roads are deteriorating steadily through lack of maintenance and are in danger of becoming unstable (UN/ECA 1990b in UNCTAD 1994). Approximately 85 percent of rural roads in these countries are rated as being in a ‘poor’ condition (UN/ECA 1990a in UNCTAD, 1994). Land-locked countries (such as Zambia, Uganda and Malawi) are particularly badly served by roads and are thus poorly connected to the outside world. The road transport industry is poorly organised. It is dominated in a number of countries by large numbers of small driver-owner companies. In other countries state owned monopolies control road transport. This restricts competition and capacity and therefore does not respond to traders/producers needs. In the 1980s it was estimated that 70 percent of the African trucking fleet was idle at any one time due to poor coordination of services and the restrictive regulatory environment (UN/ECA, 1990a in UNCTAD, 1994). The end result is high road transport costs in many developing countries and particularly in Africa. The prime advantage of road transport is that it is better-suited and more economical for relatively short journeys, leaving longer journeys to be covered by rail. Clearly this will be dependent on the nature of the goods being carried. For example bulk, lower value commodities should travel by rail in preference to road. Issues of availability and indeed often a lack of adequate road transport will directly influence rail usage, either in preference or by necessity. Once again, however and especially with land locked countries, there is often little realistic option other than to use road transport if there is no available rail connection nearby. However the increased potential for (and speed of) deterioration or devaluation of a product transported by road is a major disadvantage. A variety of vehicles are used for local transport services (see Plate 4). Among other the disadvantages of road transport usage are that the road network does not always reach the point of production. In addition, roads are often in a poor state due to lack of proper maintenance, management and provision. Further, there is frequently a shortage of suitable road vehicles, especially for carrying containers. Vehicles are not adequately maintained (for example, with broken suspension, damaged tyres, etc. resulting from poor roads), and poor management often leads to existing fleets being under-utilised. As a result, road transporters may fail to maintain delivery schedules. Safety and security standards are often low (for example, as a result of inadequate vehicle

9

maintenance) and this leads to an ever-increasing number of road accidents. Ensuring that drivers and vehicles are properly licensed is essential, but lack of policing and/or equipment for enforcement is frequently a problem (Zane, 2001 & CNN, 1999).

Cabotage policies restrict the use of trucks in one country from operating in another. This results in additional handling of goods, and resultant increase in transport costs. Further, there are frequently delays at border crossing posts and at customs terminals (UNCTAD, 1994). These factors can lead to increased risk of goods being damaged in transit as well as providing potential for delayed delivery. They also hamper the chances of reimbursement of claims for damaged goods or delays. This is due to the existence of limited (or absent) liability regimes over road transport operators (UNCTAD, 1994). 3.3 Transits by Rail Rail transport is inflexible for goods transport applications. In many countries it does not provide the availability, frequency and regularity of services demanded by shippers/producers. Rail tariffs often continue to discriminate against containers. Many containers are packed and unpacked in ports and the cargo is moved between the port and

Plate 4. Light three-wheel motorcycle truck. (Tetra Pak, 2003)

10

the inland location in conventional loose form. Consequently transit times from origin to destination are long on many routes, particularly for land locked countries such as Uganda, Burundi and Rwanda. Uganda’s exports and imports (excluding air cargo) pass primarily through the port of Mombasa. According to UNCTAD (2000) the single railway track which links Kampala in Uganda to Mombasa in Kenya is unreliable and inefficiently run. Further, it is reported that the cost of shipping a container from Europe to Kenya is approximately US$180 per tonne, while the costs for shipping the same goods from Mombasa to Kampala are US$120 per tonne. In addition, these costs do not take into account costs attributed to the delivery delays associated with the overland journey from Mombasa (Musoke 2000). Other sources agree with UNCTAD (2000) findings. The Ugandan Ministry of Finance, Planning and Economic Development (MFPED) states that rail transport (supposedly the most effective for bulk cargo transportation) has in the past made only a marginal contribution to the transport sector (Musoke 2000). Often, bulk cargo from Mombasa has to be carried by road to Uganda due to poor management of the railways. A common problem often associated with rail transportation concerns prolonged turnaround times. This is sometimes the fault of the existence of more than one rail gauge. For example, in Tanzania there are two completely separate railway systems and rail gauges in the same country. The port of Dar es Salaam in Tanzania is linked to the hinterland by systems operated by the Tanzania Railways Corporation (TRC) and Tanzania-Zambia Railways Authority (TAZARA). The two lines have different gauges and meet at two points only: at the port in Dar es Salaam and at Kidatu some 300 km from Dar es Salaam (THA, 2000). TRC lines provide freight cargo transportation to the west of Tanzania and the land-locked countries of Burundi and Rwanda, whilst another branch serves Mwanza Port on Lake Victoria, which provides transportation services across the lake to Uganda. The second railway system, TAZARA, is a two-country joint railway system linking Dar es Salaam with Zambia and also handling freight cargo for Malawi, Zimbabwe and the Democratic Republic of Congo (DRC) in addition to Zambia. Both the TRC and TAZARA have been prepared for privatisation at time of compiling this report (Tanzania National Website, 2003). The lack of a network of inland clearance depots (IDC) is an important factor contributing to the under-use of railway systems (UNCTAD, 1994). This is especially so in Africa where transport distances between the coast and inland areas of production and consumption are long. Partly because of inflexibility, the volume of cargo moved by rail is generally declining in Africa (UNCTAD, 1994). Also, in most cases the rail networks of developing countries have not been expanded and/or augmented for many years (and sometimes >40 years and the time of independence for many countries). One example of under-investment is the Addis Ababa–Djibouti Railway in Ethiopia which was constructed in 1908 (Muluneh, 2003). This 780 km length of track remains a main artery for transporting Ethiopia’s agricultural goods (and particularly coffee) and manufactured products for export. The railway and the port of Djibouti have played an increasingly important role whilst Ethiopia’s alternative outlet to the sea (via Assab on the Red Sea)

11

has been closed due to civil war. Although money has been earmarked for modernisation of the railway and port facilities from time-to-time, there has been no large-scale investment since construction 100 years ago. In some cases poor railway maintenance has also resulted in contraction of the network as a whole, leaving some regions un-serviced by rail. For example, in Zambia the poor state of certain lines has meant that trains have been obliged to travel at slow speed thus lengthening the overall transit time for goods. Equally, daytime travel only has been permitted to avoid damaging ‘temporary’ repair work on rail lines between Tanzania and Uganda (Chintowa, 1998). There is no dispute that transport by rail is cheaper than by road and that it is preferable for bulk freight and containers. Rail is also more convenient if good accessibility is available. Among the disadvantages of rail transits include poor connections to large areas of the country and inadequate and unsuitable rolling stock. This is particularly the case for container transport. Unfortunately, poor maintenance of tracks and rolling stock is commonplace in some countries of which the DRC has been a prime example. In the DRC, the railways are in desperate need of repair, with train transport described as slow, cumbersome and unreliable (1UPInfoTM, 2003). Little attention has been paid to the railways since independence in 1960. Although the Zairian National Railroad Company (SNCZ) undertook a rehabilitation effort financed by the World Bank amongst others in the late 1980s, little if any progress was expected in light of the prevailing chaos resulting from civil unrest in the country. This effort focused on rehabilitation of track, locomotives and rolling stock was due for completion in the early 1990s (1UPInfoTM, 2003). Other disadvantages of rail transit include poor frequency, regularity and reliability. This is largely explained by the failure to maintain scheduled services and also the slow turn around of rolling stock. Rail freight generally does not provide a sufficiently flexible ‘multi-modal’ transport system in most under-developed parts of the world. 3.4 Transits by Air Air transport is a high cost and high investment form of transport. Despite this, use of aircraft for the movement of goods (together with sea/air combinations) is growing. Such transit is obviously suitable for items requiring immediate delivery, for example perishable goods. It is primarily those goods of high value and low weight that are economically viable for such transport. For example, air transport is regularly used for the movement of cut flowers from Nairobi in Kenya to Schipol Airport Amsterdam in the Netherlands. The production of cut flowers for export has developed rapidly in the last 15 years with Kenya now ranked as the forth largest international exporter of flowers (after the Netherlands, Columbia and Israel) according to Pesticides News (2003). Kenya exports well over one billion cut flowers to Europe every season with markets increasing (HCPDA in Ngunjiri, 1998).

12

Flowers make up a major part of Kenya’s horticultural industry, the fastest growing sector of the economy and forth behind coffee, tea and tourism (Plates 5 & 6).

Plates 5. & 6. Production of cut flowers in Kenya.

(Plate 5. Kenya Flower Council; Plate 6. Kevin Gallagher FAO, 2002) Clearly the comparatively short transit time is a major advantage of air transit - despite the relatively high freight costs. The issue is also one of economies of frequency and regularity – particularly if passenger flights can be used for the movement of parcels. Frequent congestion at sea ports, coupled with the non-availability of regular or frequent shipping services are inhibiting factors, which typically do not arise when using passenger aircraft for transit. Consequently the poor quality, relative slowness and unreliability of surface transport will often make movement by air a preferred choice. A further benefit of air transport is the reduced risk of product deterioration during transit. However, these benefits have to be weighted against the relatively high cost of air transit. Equally it has to be borne in mind that facilities and services for high value and perishable goods may not always be adequate and especially at departure air terminals. Clearly, the weight of the product will have a far more critical influence on haulage costs for air carriers compared to other modes. Whereas previously standard 6 m (i.e. 20ft) containers were carried by air and there was compatibility with surface vehicles, this seldom occurs today. Airfreight is typically unitised to ease the loading/unloading process – it being more economical for the airline to carry freight on a pallet than in a container. Cargo may be containerised in special air containers that are lightweight whilst in the aircraft, and it may then be containerised in surface containers for subsequent movements by surface vehicles. However, this requires that the product be transferred between theses different transport modes in loose form because of incompatibilities with freight packaging (Mahoney, 1985). 3.5 Transits by River/Inland Waterways Inland waterways are not developed commercially in many countries/regions, although there is often considerable potential for the development of these systems. Rivers and inland waterways offer good linkages and considerable economic benefits (UNCTAD, 1994). One example of lake transport for freight cargo and passenger services is that

13

provided on Lake Victoria linking Tanzania, Kenya and Uganda (THA, 2000). Similarly there are services on Lake Tanganyika which link Tanzania, Burundi, the Democratic Republic of Congo and Zambia. Yet another example is on Lake Malawi where services link Tanzania, Malawi and Mozambique (Tanzania National Website, 2003). The Congo River in the DRC (Plate 7) was recently opened to commercial traffic again after shipments were halted when war broke out in 1998. With road transport almost non-existent in the DRC the river has historically been the country’s main artery for trade (Die Republikein, 2003).

Plate 7: Congo River showing passenger carrying barges attached to the main vessel (1UPInfoTM 2003).

There are particular cost benefits that come into play (especially for bulk consignments) when the mode of transport is unitised. Moreover, with producer/shipper cooperation, special rates can be negotiated for the handling of consolidated consignments, which are suitable for the level of service offered by inland waterway transport. However, insufficient depth of water to accommodate economically sized vessels can sometimes restrict travel, for example, due to unreliable or seasonal rainfall. Here it is that local knowledge of the changing flow in the river, lake or channel is essential. Maintenance of the river or waterways and the infrastructure required of shipping and freight handling is essential; and like much else in developing countries, this can be neglected. Similarly, there is often shortfall in the number of suitable inland waterway craft and navigational

14

aids required, and the end result is an unreliable service. These are common issues associated with this form of transport (UNCTAD, 1994). Further, with most river craft more suited to handling bulk cargo only, this presents issues for the carriage of other more specific types of cargo. There are also constraints with lack of modern and appropriate shore handling and service facilities on many rivers according to UNCTAD (1994). Plate 8 illustrates an ancient water lifting device that remains in use to the present day.

Plate 8. Animal driven waterwheel supplying irrigation water in the valley of the River Nile (Barron, 2003).

3.6 Multimodal Transport ‘Intermodality’ or ‘multimodal’ transport describes the processes that deal with the movement of goods between the different modes of transport. The transfer of commodities between two modes is referred to as an ‘intermodal’ transfer. A ‘multimodal’ movement involves the transfer of cargo to three (or more) modes of transport (Mahoney, 1985). The essence of multimodal transport is the provision and availability of a door-to-door service. In many countries there is confusion over the legal liability and responsibility for a particular transport operation, often owing to the lack of integrated transport services. Lack of coordination between road, rail and inland waterways transport, for example, and

15

of transport services crossing the borders of neighbouring countries limits opportunities for making economies of scale. Equally, in many countries there is no legal regime dealing specifically with multimodal transport (UNCTAD, 1994). Unfortunately in many developing countries goods transport networks are not adequately planned and this results in a shortage of transport, storage capacity and distribution centres in the major areas of production and consumption. As a consequence, cargo is often held for long periods in inadequate facilities, leading to product deterioration and loss. Alternatively, goods may be left in rail wagons or road vehicles with the same result. An example is maize shipments imported as aid during drought periods in Lusaka in Zambia in 1991-92. A proportion of these shipments were held in rail wagons for prolonged periods before being moved further inland (personal experience, 1993). Equally, commodities susceptible to deterioration in store such as coffee are also often seriously delayed in transit to the port (Unctad 1994). Issues of this kind obviously interfere with the flow of exports from a country (and can lead to lower prices from loss of quality). The lack of a network of inland clearance depots (ICD) is detrimental for the implementation (and development) of national multimodal systems. It is also an important factor in the under-use of railway systems, especially where transport distances between inland areas of production and the coast may be long. This point, however, has been recognised in some countries and a number of ICDs have opened for business, for example, in Uganda, which has lead to a marked improvement in services in the country (Walusimbi, 2000). The establishment of ICDs has brought in international standards and helped to boost the smooth movement of cargo and more secure storage, and provided other logistical services. A key additional advantage has included the creation of jobs. One of the depots in Uganda described by Walusimba (2000) is being operated by the major international shipping organisation – Maersk. Moving goods within an integrated transport network should result in a smoother, swifter and shorter transit time; from start to finish. Herein are advantages for economies of scale given that the contract for movement of good is with the one transport provider or freight forwarder. This kind of contract also simplifies legal and other responsibilities involved. 3.7 Specialised Movements Some items of ‘outsize’ general cargo are so heavy or large that they cannot be accommodated in standard containers or handled by normal means. Such cargo requires the use of special loading and/or transport equipment, specialised management and attention and, typically, specialised transport. This is obviously costly but, if the product/material justifies it, specialised movement can be provided for example when moving electrical transformers, heavy industrial plant and/or agricultural machinery. Again the pre-requisites include the availability a suitable means of transport throughout the transit, good management and fully experienced people capable of monitoring the entire transport process. In some cases, this may include use of door-to-door systems. Door-to-door systems apply whatever the goods being delivered.

16

Systems of this kind are provided by international freight companies such as DHL and FedEx. Although they may be best known for their courier and small-package express services, the benefits to be obtained from a competent freight company are considerable. This includes speedy delivery, easy customs clearance and, importantly from a practical standpoint, these companies can overcome problems associated with inadequate information for mailing/address. International delivery by public mailing services can be slow with all manner of customs technicalities involved. The express air freight package systems provided by specialist courier companies provide a faster service (at a price), but also the means whereby national and international barriers can be accommodated. Indeed the success of DHL, for example, has been largely based on the innovative idea of sending out documentation in advance of the cargo arriving, thereby speeding up the whole process of importing goods (DHL, 2003). FedEx claim to be the world’s largest express transportation system company using a global air-and-ground network to speed delivery of time-sensitive shipments (FedEx, 2003). Such companies will usually make delivery within one or two business days – and guaranteed delivery time. The client can typically track the movement of goods courtesy of the courier’s website.

17

Chapter 4 Packaging, Marking Inventory and Follow Up

Practically all articles of general cargo have to be packed after harvesting and/or at point of leaving the production line. These goods must be protected, handled and stored with care, counted and checked into the appropriate inventory, and prepared for sale. Packaging has long been recognized as a pre-requisite for successful marketing. Some goods can be put into boxes or similar packages; others have to be wrapped and/or packed into manageable loads such as cartons, and prepared for transport. Oranges and similar fruits are frequently wrapped separately to improve presentation at markets, but also to help protect each item from damage in transit. Boxed packages may then be palletised for handling by specialised mechanical equipment. Presentation is everything, and the skill of selling has always taken advantage of the artwork on the outside of the freight carton and/or presentation package. Here it is that many goods go straight from the carton to the supermarket shelf where it is important to catch the attention of the buyer. Packaging may be expensive, but is generally credited to save more than its costs (Plate 9).

Plate 9. Drinks and foods are packed into colourful robust cartons and securely stacked in the supermarket (Tetra Pak, 2003).

Methods of packing depend primarily on the nature of the goods themselves and the methods of transport from producer or factor to market or shop. For example, perishable

18

goods will require packing that will help provide protection when they may be vulnerable to robust handling – into and out of vehicles and into store. Perishable goods have to arrive in prime condition. Shippers need to be aware of the characteristics of the product and its requirements during transit. Some goods will require more protection than others and especially when there may be numerous handlings involved. An additional factor is the weight of the packing, and likely increase in transport costs where the packing substantially increases the overall weight of the shipment (or the recommended volume). Packaging must be sufficient to protect the contents through to the supermarket shelf or other final destination. This will include not only the numerous transits and individual handlings but also, for example, mechanical handling of multiples on pallets and stacking at height in store. Packing should protect the contents against minor accidental bumps and thumps. If the product is fragile, however, additional care will be needed including the use of special packaging, but also specialised handling instructions that are clearly marked on the outside of the final package (issues covered in section 4.8). The cost of packing raises further issues that relate to the goods being shipped, value and susceptibility to damage in transit – and to the levels of risk involved. A number of secondary, but no less important, factors apply to packing according to Branch (1977) are described below: (i.) Multi-purpose packing This concerns the use to which the packing may be put when the goods reach their final destination. In a case study provided by NEDO (1973), a drinks manufacturer shipping cans to various destinations packed them into robust packing cases and stacked them on a timber pallet, but without special strapping to the pallet. En route separate deliveries were made and this resulted in substantial damage and pilfering at point of handling, with consequent increased insurance premiums and customer dissatisfaction. The drinks manufacturer had originally purchased cans from an external supplier that were despatched by the can manufacturer with a cardboard overwrap for protection. In practice this was normally discarded. The drinks manufacturer was persuaded to retain the cardboard over wrap and use it to protect the unit loads of filled cans. This prevented loose cartons from falling off the pallet when in transit or when delivering; further, it enabled less robust cartons to be used and thus reduced packaging costs. Damage and pilferage was markedly reduced and insurance costs were stabilised. (ii.) Value Concerned with the value of the goods; typically low value goods have less packing than those of higher value (but all goods have to reach markets with minimum damage). (iii.) Special requirements The customs or statutory requirements that must be complied with by both producer and transporter.

19

(iv.) Handling The ease with which goods can be handled, for example, awkward shaped goods can be packed into suitably cases or cartons that will facilitate handling. (v.) Markets And some understanding of the marketing requirements required of the goods – some packaging, for example, is designed to assist display purposes with good going directly into retail sales. (vi.) Fragility Similar understanding of the general fragility of goods, for example, glass products. (vii.) Temperature What variations in temperature (i.e. changes in climatic) will take place during the transit; will there be an ocean voyage, for example. Movements to and from different climatic zones or through different climates from, for example, when shipping goods from Africa to Europe can result in substantial damage from both ship and cargo sweat generation. (This is covered further in chapter 7.) (viii.) Weight and size There has to be accuracy with known weight and size of the cargo. (ix.) Cost of packing Key factor, for example, whether elaborate packing is likely to increase the cost of freight to the extent that it prices the goods out of the market for which it is intended? (x.) Port facilities What port facilities are available? Is there, for example, sufficient handling equipment and storage accommodation? 4.1 Importance of Packaging The value and importance of the packing required of goods prior to transportation remains a key requisite for successful transport and handling. According to ITDG (2003) the importance of packaging can be summarised:

Condition of arrival. Packing is a major contributing factor that determines whether the merchandise arrives in good (or poor) condition at the consignee’s address irrespective of the forms of transport.

Distribution. Adequate packaging aids distribution; it makes for easier handling and transport.

Post-harvest losses. Suitable packaging aids efficient distribution and this reduces post harvest losses and damage to the produce. Higher quantities of better quality delivered to markets increase incomes.

Food security. Rapid and reliable distribution helps reduce malnutrition; it helps shift food surpluses in the locality and provides consumers with more choice of

20

foods available. Inadequate packaging in developing countries has a profound on total food available and affects the pattern of consumption.

4.2 Functions of Packaging Packaging is a means of providing the correct environmental conditions for the product during the length of time it is transported, stored and/or distributed to the consumer. Packing has to be sufficient to cope with the lowest standard of environment likely to be experienced throughout the journey. It should afford necessary protection to the product so as to ensure a safe transit and delivery thus minimising damage, loss, and theft of the product. Packing should suit the character of the cargo as well as the circumstances, which can arise before it is unpacked. Those responsible for packing should know how to suit the methods of packaging with the requirements of the types of transport and equipment that will be used during and at the end of the journey. Transport has to move commodities in space and in time without altering them; nothing should be added or removed (van den Burg, 1969). Good package has to comply with a number of functions according to ITDG (2003) and Branch (1977). Good packaging should: (i.). Cleanliness. Keep the product clean and in reasonable good condition; and provide a barrier against dirt and other contaminants. (ii.) Prevent loss/damage. The design of packaging should be such as to provide protection and convenience for the multiple handlings that may be involved in overall transit (i.e. during transport, storage, distribution and marketing). Goods should be stored correctly. Transit may include the rigours of sea transportation, for example, and the strains of the pitching and rolling of an ocean vessel in heavy weather. There should be adequate marking on packages in stowage (e.g. instructions to ‘stow this way up’ or similar) together with adequate lashing points for large and/or heavy items that they do not move and damage from movement of the ship. (iii.) Be sufficiently strong. It is important that the size, shape and weight of the packages be fully realised. This has to take account of stowage considerations and ensure that the packing is sufficient for the weight of the goods during handling, for example, the seams of bags of coffee need to be fully closed and strong enough to prevent leakage of product when handling it – when the contents exert strong pressure on the seams. (iv.) Provide protection. Packaging should provide protection to the product against physical and chemical damage caused, for example by water, water vapour, oxidation, light, insects, rodents and so on. (v.) Be easy to identify. Packaging should provide adequate identification and instruction such that the people handling the product/food will know how to do this correctly.

21

It was the founder of the organisation now known as Tetra Pak whose doctrine it was that stated: ‘A package should save more than it costs’ (Rausing in Tetra Pak, 2003). From an initial development characterised by the creation of a packet for milk (incorporating the introduction of completely new techniques for coating paper with plastics and also for sealing the packet below the level of the liquid), this company has now expanded to include a complete range of packaging for all kinds of liquid foods products (Plates 10 & 11). It currently supplies complete systems for processing, packaging and distribution (Tetra Pak, 2003). Tetra Pak aims to make full economic use of all the resources required for, and/or concerned with, packaging systems. Tetra Pak define the main aims of packaging as:

Maintaining product quality. Minimising waste. Reducing distribution costs.

Plates 10. & 11. Versatility, convenience and security of liquids in modern packaging (Tetra Pak, 2003).

4.3 Packaging Materials It is important to identify the right materials for packing the product. As already stated (in section 4.2) the primary function of packing is to ensure adequate protection to the goods for the rigours of transits and multiple handlings on and off different forms of transport, in and out of yards, warehouses, stores, silos and so on. This extends also to the length of time a product is kept in any particular situation.

22

It is not unusual for packaging to be too weak to support the goods it contains and a lot of packaging will not sustain stacking. Packaging should allow for the fact that inevitably things are sometimes dropped heavily during handling, even containers. Banding and strapping on packages should be supported by bearers or padding, otherwise the bands themselves can damage the packaging. Some of the principal packaging materials used are textile fibres, wood, plastics, metals, glass and flexible plastic film as described below: (i.) Textiles fibres Includes jute, kenaf, cotton and sisal.

Jute (Tiliaceae sps.) Woven jute sacks are low cost and widely available, and used to transport a wide variety of bulk foods including grain, flour, coffee, sugar, salt and potatoes (Plate 12). Sacks can be chemically treated to prevent rotting and to reduce flammability. Fibres and sacks are non-stick, have high resistance to tear and good durability. Jute containers, however, provide little protection from the movement of gas and moisture into stored foods, and have poor external appearance when compared to plastics (ITDG, 2003).

Kenaf (Malvaceaev sps.) Kenaf grows in Central Asia, India, Africa and Cuba. It is chiefly used for making ropes and twine but can be spun into a fine yarn, which can then be made into a coarse canvas. In India it is known as ambari or deccan hemp and in Africa as lipatam or gombo (ITDG, 2003).

Plate 12. Jute sack used for packing potatoes; and clearly marked with contents

and weight (Poton, 2003).

23

Cotton (Gossypium sps.) 1. Calico. This is a closely woven and strong cotton fabric, which is

inexpensive and widely used as a wrapper for flour, grains, coffee beans, legumes and powdered or granulated sugar. Calico cotton withstands washing and can be re-used many times. It can also be easily marked to indicate the contents of the bag.

2. Muslin/cheesecloth. Muslin and cheesecloth are open-mesh, light fabrics used to wrap soft foods, which can be held together in the shape required. Processed meats, for example, are tightly wrapped in cheesecloth before being packaged in cellophane or wax paper. This is a cheap material and made in huge quantities with multiple applications, but it gives little protection to the food.

Sisal (Agave sisalana)

This is fibre extracted from the Agave family of plants (Plate 13). It is resistant to salt water and is an ideal natural material from which to make marine ropes. Sisal mats are regularly used to lay over the top of cargo shipped conventionally or in containers to prevent sweat forms on the ceilings of metal holds or the internal roofs of containers from falling on to the cargo and thus causing wet damage, deterioration and loss. Nets in which hard fruits are sometimes transported are often made from vegetable fibres (ITDG, 2003).

Plate 13. Sisal plantation in East Africa. Fibres are extracted mechanically from the

leaves (Reny, 1995). (ii.) Wood Wooden shipping containers have traditionally been used for a wide range of solid and liquid foods including fruits, vegetables, tea and beer. Wood offers good mechanical protection, good stacking characteristics and a high weight-to-strength ratio. However, plastic containers have lower cost and, for many applications, have largely replaced

24

wood. Wood continues to be used for some wines and spirits because the transfer of flavour compounds from the wooden barrels improves the quality of the product. Wooden tea chests are produced more cheaply than other containers in tea-producing countries and continue to be widely used. Wooden crates are imported into food producing countries for transporting fresh fruit, vegetables and fish. They are used to hold foods together and to protect them from crushing, but otherwise offer little protection (ITDG, 2003). (iii.) Plastics Plastic containers are extensively used for packaging; materials, design and services are widely availability and plastic containers are cheap when compared to other forms of packing material. As a general rule plastic packaging is lightweight and provides good appearance. Goods can also be displayed, handled and stacked conveniently. Most plastics are derived from petrochemical feedstock and can, in most cases and with reasonable effort, be recycled. Higher costs of plastics into the next period may see reduced use (see Plates 9 & 14). (iv.) Metals High manufacturing costs makes metal an expensive packaging material and metal cans, for example, are expensive to produce and handle. However, the advantages of using metal cans in preference to other types of containers are:

Total protection of contents – cans are rugged and durable. Convenient for storage and presentation. Cannot be tampered with in store or when on sale (i.e. ‘tamperproof’).

A key disadvantage is that of weight; cans are heavier than plastics and other materials and have higher transport costs (ITDG, 2003).

Plate 14. Plastic liquid containers have revolutionized food and beverage packing and handling during the past 30 year; and all but completely replaced

glass (Tetra Pak, 2003).

25

(v.) Glass Glass was once universally used for packing liquids and foods of all kinds, but has slowly been replaced by plastic in both industrial and developing countries. Re-evaluation of glass is underway given improved environmental credentials. There are a number of advantages associated with use of glass containers for packaging according to ITDG (2003):

Impervious to moisture, gases, odours and micro-organisms. Inert and does not react with or migrate into food products. Suitable for heat processing (when hermetically sealed). Re-useable and recyclable. Resalable. Transparent, thus allows good display of contents. Rigid, which allows stacking without damage to the container.

The disadvantages of using glass containers are: Heavier than other types of packaging; and thus incurs higher transport costs. Lower resistance than other materials to breakages/fractures, scratches and

thermal shock. Greater variability of dimensions than metal or plastic containers. Potentially hazard from glass fragments in foods in the container.

(vi.) Flexible film It comes in many different formats that have different properties and advantages including:

Relatively low cost. Good barrier properties against moisture and gases. Heat sealable; good at preventing leakage of contents. Good wet and dry strength. Easy to handle and convenient for manufacturer, retailer and consumer. Adds little weight to the product. Closely fits the shape of the food thus wasting little space during storage and

distribution. The principal types of flexible film are polypropylene, polyethylene and cellulose:

Polypropylene. This is a clear glossy film of high strength and puncture resistant. It has moderate permeability to moisture and gases and is therefore not affected by changes in humidity. It stretches, although less than polyethylene.

Polyethylene. Low-density polyethylene is heat sealable and shrinks when heated. It is a good moisture barrier, but has relatively high gas permeability, it is sensitive to oils and has poor odour resistance. It is less expensive than most films and is therefore widely used. High-density polyethylene is stronger, thicker, less flexible and more brittle than the low-density type. It has lower permeability to gases and moisture and a higher softening temperature (120degC) and can thus be heat sterilised. Sacks made from 0.03/0.15 mm high-density polyethylene have high tear strength, penetration resistance and seal strength. They are also

26

waterproof and chemically resistant and are widely used in place of paper sacks (ITDG, 2003).

Cellulose. Plain cellulose is a glossy transparent film which is tasteless, odourless and biodegradable (within approximately 100 days). Although it is tough and puncture resistant, it tears easily. It is not heat sealable and the dimensions and permeability of the film vary with changes in humidity. It is commonly used for foods that do not require a complete moisture or gas barrier (ITDG, 2003).

4.4 Traditional Packaging Materials Traditional and locally sourced packaging materials are cheap and readily available in most producer countries. Natural materials have a measure of flexibility with use and application, and materials of this kind are often used to hold, transport and sell foodstuffs. However, they usually offer little by way of protection and have none of the properties required protecting food, etc. They are, however, suited for some quick consumption low-cost products for use in traditional markets and similar. (ITDG, 2003). Traditional packaging materials are many and highly varied. Some examples are described below: (i.) Leaves of banana (Musa sps.) or plantain (Musa paradisiacal L.) Leaves are the most common and widespread used for wrapping foods, for example, certain kinds of cheese and confectionery. All sorts of cooked foods are wrapped in leaves. Banana leaves are described as “the aluminium foil of the tropics” (Davidscooking.com, 2003). ‘Pan’ leaves, the colloquial name for betel leaves (Piper betle) are used for wrapping spices in India. They are an excellent solution for products that are consumed quickly as they are cheap and readily available. Another example is use of corn husk to wrap corn paste or block brown sugar (ITDG, 2003). (ii.) Vegetable fibres These natural raw materials are converted into fibres to produce the yarn, string or cord for packaging materials. Such materials have certain common characteristics, for example, they are flexible and to some extent resistant to tearing and permeable to water. Being lightweight is an advantage in handling and transport. A rough external surface makes stacking of sacks made from these material easier than sacks of man–made fibre that slide easily because of smooth external surface. Bags of natural raw materials are biodegradable when left in their pure state (an advantage over man-made fibres). However, they rot when moist and this limits the number of times sacks can be re-used. (iii.) Treated skins Leather has been used for many centuries as a non-breakable ‘container’. Water and wine are frequently carried and stored in leather containers made from camel hides and pig and goat skins. Manioc flour and solidified sugar are sometimes packed in leather cases and pouches (ITDG, 2003).

27

(iv.) Bamboo (Bambusa sps.) and rattan (Calamus sps.) These materials are widely used for basket making. Bamboo pots cut out of the bamboo stem can be found. It is a traditional material used in food packaging and cooking, for example, bamboo shoots from Taiwan amount to US$50 million annually. Apart from traditional use, bamboo has many new applications, for example as a substitute for fast depleting wood and as an alternative to more expensive materials (INBAR, 2003). (v.) Coconut palm Green coconut palm (Cocos nucifera) and papyrus leaves (Cyperus papyrus) are often woven into bags or baskets and used for carrying meat and vegetables. Palmyra palm leaves (Borassus flabelliformis) are woven into boxes in which cooked foods are transported (ITDG, 2003). (v.) Earthenware Earthenware is used worldwide for the storage of liquids and solid foods such as curd, yoghurt, beer, dried food and honey. Cork, wood, leaves, wax, plastic sheets or combinations of these materials are used to seal the pots. If well-sealed the container can be proof against gas, moisture and light. Unglazed earthenware is porous and hence suitable for products that need cooling, for example curd. Glazed pots are better for storing liquids, for example oils and wine, as they are moisture and airtight when properly sealed (ITDG, 2003). The appropriate choice of packaging for a produce is important. It is good to utilise the local resources available and to investigate what alternatives may exist for a specific product. Of paramount importance, however, for packaging materials to be reliable and available at reasonable cost, and it is also an advantage if these materials also benefit local industry. 4.5 Types of Packing According to van den Burg (1969) ‘Packing of merchandise is as much a science as it is an art’. Practically all articles that make up general cargo have to be packed after they have been harvested or produced. They must be protected and preserved to ensure that they reach their destination without incident, thereby resulting in a successful sale. Some items may benefit from use of a wrapper before being placed in a package for transit. Other items are put into boxes, tins or plastic containers, which may then be palletised. The ‘art of packing’ arises when the customer’s eyes have to be seduced (to want the item). There are many types of packing available, of which the most important are: (i.) Bags Bags made of jute, cotton, plastic or paper provide a cheap form of container and are suitable for a wide range of commodities or products such as coffee, fertiliser, oil cake, flour and cement. The main disadvantage is that these bags are subject to damage by water, sweating and handling (e.g. hook damage and/or tearing/breaking). Paper bags are particularly vulnerable.

28

(ii.) Cartons Cartons made of cardboard, fibreboard or similar are a common form of packing. Carton packing lends itself to ease of handling, particularly by palletisation and containerisation. It is a flexible form of packing and prevents breakages that may occur if rigid containers are used. Polystyrene is used widely as an aid to packing in cartons. The main disadvantage is susceptibility of this type of packing to crushing and pilferage. (iii.) Bales Baling is a form of packing that typically consists of a canvas cover often cross-looped by metal or rope binding. It is widely used for wool, cotton, carpets, paper and rope (Branch, 1977). (iv.) Crates or skeleton cases These are a form of packing or container partway between a bale and a case, and are typically made of wood. Lightweight goods of large cubic capacity, for example light machinery, certain foodstuffs (e.g. oranges), bicycles, domestic appliances (e.g. refrigerators) are packed in crates (Branch, 1977). (v.) Boxes, cases and metal-lined cases These represent another form of packing that is widely used. They are made of wood and vary in size and capacity, and are often strengthened by battens and metal binding. Boxes, such as tea chests, are lined to create airtight packing, and this helps overcome difficulties that may arise when the goods pass through zones of variable temperature. Typically, machinery and other expensive equipment are packed in boxes. (vi.) Drums and barrels These are usually used for carrying liquids or greasy cargoes. The main problem encountered with this form of packing is the likelihood of leakage if the unit is not properly and adequately sealed. There is also the possibility of drums becoming rusty during transit. Acids are widely carried in plastic drums and bottles (Branch, 1977). 4.6 Containerisation A freight container can be defined in a number of ways. For example, it can be a bottle, box, cask, tin, wrapper and so on. Some descriptions such as ‘bottle’ or ‘box’ are good in that they are instantly recognized and, further, take the product from the factory to point of consumption – in this case directly into the mouth of the purchaser; this is better than a ‘door-to-door’ service with the product consumed from the original pack. This typically includes soft drinks, bottled beer, snack foods and sweets. Containers store and transport goods, protect and preserve them and help with distribution. Commercially, freight containers are defined as ‘physical capsules’ and can be made from a variety of different materials including steel, wood, plastic or aluminium. Their purpose it is to hold a large number of individual units for shipment (van den Burg, 1969). An alternative but simplified description is: ‘boxes usually of metal, with doors

29

and lifting points’ (OECD; in van den Burg, 1969). Standard steel freight containers are shown in Plate 15. Specialisation has created various refinements to the standard container, for example, they can be coated with an interior epoxy coating for use as bulk flour carriers. There are also special edible oil carriers, containers for livestock, and various types of tank containers for holding malts and other liquids. Insulated containers are used for carrying canned goods, whilst ventilated units are increasingly being used for coffee and different types of vegetables (van den Burg, 1969). Although ‘containerisation’ is best defined as a ‘transport system’ and not a method of packing, a container can also be considered as simply the ‘outer packing’. With the development of containerisation, the packing needs for shipped cargo have continued to change; packing remains a dynamic process. When containers are used for freight, the product typically requires less packing and less robust packing. However, this apparent advantage has to be balanced against the ever-present risk of goods being damaged in transit because of the combined effect of sometimes inadequate packing and insufficient securing of goods inside the containers (van den Burg, 1969).

Plate 15. Steel freight containers that typically come in lengths of either 20 feet or 40 feet; and

can be handled and stacked with specialised handling equipment (Millard, 2002). In much the same approach to conventional stowage on board an ocean vessel, the stow of cargo in a container has to be tight enough to prevent the goods from falling over or moving. Air bags and/or dunnage can be used to prevent movement when there is broken stowage. Care must be taken to ensure that there are adequate ventilation channels within the stow, as determined by the product itself (and typically on the basis of its physical characteristics). Once stowed, any shift of the centre of gravity away from the centre line

30

can be catastrophic, particularly if this movement it is above the mid-point. Containers need to be identified and marked on the outside with the appropriate data if this is to be avoided (Spencer 2001). There are instances, however, where damage to the product results from inadequate stowage and securing within the container – frequently because the people charged with stuffing may not be familiar with the goods and their packaging requirements (personal experience). Generally, cargo consists mainly of manufactured and/or packaged commodities and this is the class of cargo that is usually containerised. The container revolution has had a tremendous impact on packaging, trade and transportation worldwide. Containers provide many advantages such as unitising freight, protecting goods from the weather and pilferage, and they are easy to load and unload on and off vehicles that have been specially designed to accommodate them. The main disadvantages of containers are cost of rental and repair, empty back-haul, unsuitability to the product and incompatibility with the vehicle. When a shipper considers the possibility of using containers these advantages and disadvantages must be balanced to arrive at a decision for usage. The choice, typically, is usually based on the costs involved, and much of this will come from case-by-case analysis. Deciding whether or not to containerise is based, not on a set of fixed and cut-and-dried data, but on circumstances that may be constantly changing. Those responsible for this kind of decision undertake periodic reviews of all the factors involved; to evaluate whether earlier decisions remain firm or need to be changed – for example because of advances or improvements in methods or equipment (UNCTAD, 1994). 4.7 Loose Items Many goods have little or no form of packing and are carried loose, for example, steel plates, iron rods, railway sleepers and steel rails. These are generally weight cargoes with low stowage factor. Heavy vehicles, buses, locomotives and similar are also carried loose because of the high cost and indeed the impracticability of packing. Where goods are not suitable for standard packaging they have to comply with minimum standards of securing. It is essential that those responsible for the design of equipment that will be shipped and/or transported should also provide recommendations for the design of lashings, including the identification of points on the equipment to which lashings can be attached. Specialist lashing diagrams should be included as part of the documentation for transport, that equipment can be prepared and stored securely during transit – taking into account the centre of gravity of the product, strong points and so on. This information has to be available to everyone involved throughout the transit. Goods traditionally transported in a loose and unprotected state, for example, pipes with finely machined ends or with fragile protrusions, should have these vulnerable parts well protected from bumping and scraping during handling and transport.

31

4.8 Marking Providing packaging for a product is essential mainly for protection, but also to ensure safe transit (see Plate 16). However, packaging alone is not sufficient to ensure safe delivery if the packages are not marked or identified correctly. Poorly marked packaging brings risk to the produce that may be subject to multiple handlings, carried by different forms of transport and stored at different points in the transit. This highlights the importance of marking the packages that the contents can be identified by the handlers and shippers - that they will know how to handle it. Given the multiplicity of forms of packing and packing materials that in use, this can sometimes be a challenge.

Plate 16. Markings on a package. (Note the different information labels including bar codes, the information arrow on the carton showing stacking position and the damaged

top) (Whitaker, 2002). Marking should aim for:

Identification. Avoiding mixing different consignments and cross-deliveries (i.e. resulting in

buyers not receiving precisely what they ordered). Providing information for handling the package (e.g. fragility – with instructions

for handling, stacking and so on). Key factors to consider for marking are:

Types of marking and their use on different goods. Types of materials used for marking and adequacy in use. Changing and/or adapting from traditional to modern methods of marking.

32

Costs involved. Whether shipping is undertaken by a dedicated department in the company responsible for these activities or, for the smaller company, packages are shipped by a specialized service company it is important to follow recommended shipping routines that will ensure that goods are tracked from point of departure to point of delivery; and delivered in good order. This helps make for customer satisfaction and repeat orders. Accurate marketing that identifies sender, consignee and the route/transit that will be used will minimize crossed/mixed delivery with other similar shipments passing through the same carriers involved in the transit (for example, warehouse keepers, storage depots, etc). Thought also needs to be given to the identification of contents by external brand marketing and/or printed information on marking labels. Large and easy to identify brand names printed on to the carton or box may raise the risk of theft and particularly where there are many points of handling during a transit. Information can be carried by codes or other identifiers, which cannot be read by those without authority; alternatively, and for least, contents can be described in normal language on labels that would require location and reading (and could not be seen easily from a distance).

33

Chapter 5 Records and Follow Up

Adequate packaging and marking of packages should help delivery of the product to its final destination. Tracking packages en route helps to ensure efficient delivery, and a key prerequisite of a good tracking system is maintenance of good records. This is important when shipments are being made regularly and sent to a variety of destinations; and even more so when the transit may involve different types of transport. 5.1 Records Well-planned and efficient record keeping is essential to ensure packages arrive at their destination on time and intact. The information in the records should provide handlers with essential instructions for specialized handling and other precautions to be taken; and to encourage travel times and deadlines to be met. In summary, a typical record may contain:

Name of producer. Names of transporters. Travel times and deadlines for delivery. Details of contents (i.e. quantity, weight, etc). Handling instructions. Contact information for when potential problems may arise.

In addition to these records, documentation is also compiled by the transporter. This is typically in the form of a ‘cargo manifest’ (see Annex A1), which contains:

Point of loading. Point of unloading. Details regarding vessels/crafts used for carriage (for example, flight numbers,

ships’ names, etc.). Cargo details (for example, weight, quantity and volume). Consignee’s details.

Other documentation relating to the movement of packages include:

Invoices (giving the value of the goods). Packing list showing weight and content of each type of item within the package.

(An example of a packing list is shown in Annex A2.) Letters of credit (documents which pass through banks, relating to payment).

5.2 Follow Up It is not unusual for a considerable amount of the product being shipped never to reach its intended destination and, at other times, it may arrive with at least partial loss, damage or with serious deterioration in quality. Tracking the movement of the produce helps to overcome loss or damage during transit, and should come into play from the moment the produce leaves the point of origin - whether farm, factory, shop, storage depot or some

34

other place. Tracking shipments ultimately provides for customer satisfaction. In order to guarantee that the best possible methods (considering cost and efficiency) are used to track packages it helps to follow some guidelines:

Check the bona fides of all those engaged in the movement of the product throughout its transit. For example, are they fully licensed? This includes warehouses and storage depots.

Use a designated company or specialized internal staff to track packages and regulate movement.

Ensure goods are fully checked and adequately signed for at all points of interchange with the transit, and at time of delivery.

Use computer tools such as specialized data tracking software and dedicated databases. The costs of software, availability and ease of use should be considered.

What resources and infrastructure does the farmer/producer require? Is it feasible to supply them; can they be used easily?

Many companies, but particularly those involved in the rapid movement and transfer of goods (for example. courier companies) offer relatively sophisticated tracking systems as part of their services. From the time the package, item or larger parcel is collected it can be tracked as a shipment using the company’s computerised internet tracking system. This is done by simply entering, for example, the airway bill numbers or the other ‘tracking numbers’ provided into allocated boxes on the company’s web site. Tracking covers both international and domestic shipments tendered to the courier company. The system has clear benefits for not only can it determine where a shipment is at any given point in time, but also it can help locate items that may have gone astray. At the very least the system can narrow down when and/or where a parcel may have been mislaid.

35

Chapter 6. Freight Handling

Cargo is handled from point of collection to point of delivery, but it is particularly demanding at points of interface, for example, between ship and port or one of the many other points of interchange in the overall transit. Achieving a high degree of efficiency in handling will maximise throughput, quicken the turn-round time of the ship in port and minimise overall cargo handling costs. This can have a significant effect on the development and costs of international trading (Branch, 1986). Wherever goods are handled there is general agreement of the need for providing modern facilities and infrastructure, much of which will be capital-intensive. Containerization has led to the development of handling facilities that are entirely mechanized, for unit loads can no longer be handled by teams of labour. Maintaining a minimum labour force is one way of increasing the competitiveness of individual ports, for example, and helps encourages trade through that port. Labour may no longer be a dominant cost factor, but the nature of the specialized people needed for managing, controlling and operating systems of mechanical equipment and/or electronic tagging and/or automated storage significantly raises costs per worker. Modern berths with modern cargo-handling systems will attract modern ships, thereby boosting the competitiveness of the international transport distribution services available. If a port or similar cargo handling facility fails to modernise its berths, infrastructure, equipment and associated cargo-handling systems, then the port will lose custom to other ports where better services are provided. Ship owners seek fast turn round times and quick unloading and loading services; a stationary ship is not earning - but running up expenses. An experienced or prudent supplier seeking to ship goods will normally consider cargo handling facilities at ports of call and other interchange points, before deciding on the precise transport route for the goods being shipped. This assumes that different options are available for the ship and/or the port of call, which is not always the case (see section 6.1.4). The nature of the goods being shipped will determine handling required from point of origin to delivery at final destination. For example will the cargo be moved in bulk, as dry or wet cargo, is it perishable or relatively inert and so on. The nature of the cargo will govern the cargo handling equipment that can be used, but the packing used also has a bearing on choice. The infrastructure, facilities and equipment required for handling goods represents part of the specialized mechanized systems of cargo handling that have evolved during the past 60 years as containerization has come to dominate freight movement internationally (Branch, 1977).

36

6.1 Factors Determining Type of Cargo Handling Equipment Any examination of cargo handling systems brings to light the many factors that have led to technological and organisational change for goods entering international trade (Branch, 1986). Some of the factors that have helped to match the cargo-handling system to application are described below. 6.1.1 Cargo Characteristics The type of cargo being shipped will determine the mode of shipment and the means whereby it will be handled, loaded and stored on board. For example, handling differs for cargo that is wet bulk or dry bulk, general, unitised, vehicular, heavy, dangerous and so on. Bulk cargo typically fills the ship – the ship will be a specialized ‘bulk carrier’ for that kind of material/goods. When wet bulk cargo is shipped a series of ship to shore pipelines are used to fill it. Oil or gas carriers are sometimes filled from marine platforms and the ship will not actually dock in the normal sense. A dry bulk cargo will be loaded with lifting equipment, for example using grabs, but also conveyors and pipelines (depending on the nature of the material and whether it will ‘flow’). Conventional ‘break–bulk’ handling methods are used when general and/or unitised cargo is transported or pallets or containers can be used. Vehicular loads are goods on road trailers that have been loaded by means of a ramp, doors set in the hull of the vessel and dock tractor units. Road tractor units remain behind – and are not normally shipped. Heavy cargo such as transformers, locomotives and similar normally require specialized high capacity lifting cranes. Dangerous cargos may come in a variety of forms and quantities and will need specialized handling methods that will provide for the protection of the people handling the goods at port or on board, and this means specialized locations, care with handling and isolation. 6.1.2 Distribution Arrangements Specialized distribution arrangements are crucial for the efficient handing of goods in the port, and will have a significant influence on the cargo handling facilities required and those provided. Specialized cargos are handled in ports with facilities constructed to accept them – whether loading or unloading. Low-value mineral ores, for example, are typically railed into the dock for loading and, at port of destination, transported by another rail system. The rail-ship-rail system is efficient and best-value choice for the materials involved. It is not unusual with less specialized cargo such as steel containers to be transported by two or more different modes from port of destination to point of delivery, for example, containers leaving the ship and may be distributed by rail or road. Other goods may be transported by inland waterways, coastal shipping or pipeline. 6.1.3 Handling Costs – general safety and reliability Costs of handing are usually based on per-tonne or cargo-unit/container rate. The success of the steel container has come as a result of standardization. When the maximum gross weight and the dimensions of the cargo are known, the location and type of lifting points

37

can be recognized internationally and there will be experience of handling and known performance. Specialized handling equipment can be designed, constructed and sold competitively to ports worldwide – without reference to the type of cargo; for it is the package/container that determines handling. This concept has been successfully marketed to ports throughout the world (to such an extent that ‘container’ modular units have been designed as specialized factories, workshops, emergency hospitals and living accommodation; and used for temporary structures everywhere). Handling costs are determined largely by the nature of the specialized and unskilled labour required, the wages/salaries and conditions of employment provided and the extent of mechanization. A labour-intensive system typical of smaller ports and/or those in developing countries will be far cheaper than a capital-intensive mechanized system required of a modern industrial port, but the unit cost per tonne of materials handled will be lower in the modern port. Labour intensive cargo handling systems have become archaic and have little or no relevance in a modern trading world (Branch, 1986). 6.1.4 Resources available at the Seaport (and elsewhere) The resources available on-shore resources will affect which handling techniques will be used. This may include shore-based equipment, labour gangs and productivity, and the facilities on board the ship such as derricks. 6.1.5 Weather Conditions Adverse weather sometimes seriously disrupts loading and/or discharging operations, and this can delay the scheduled departure of a vessel. The prevailing weather conditions in a region should be considered when considering the choice of handling equipment that may be used. 6.1.6 Type of Vessel The type of vessel is crucial for choice of handling equipment, for different vessels have different configurations and different handling facilities on board. A combi-carrier, for example, will differ from a Ro/Ro vessel, a fully containerised ship, ‘very large crude carrier’ (VLCC), a fruit carrier, a cement carrier or a refrigerated vessel. 6.1.7 Competitive Situation in Relation to other Ports In addition to the time required for a journey to the port selected and its accessibility for overseas shipments, the port administrator must consider a number of other factors such as providing modern cargo handling facilities in order to remain competitive. If there is an alternative port available to a shipment, then this could have an important bearing on the choice of destination port made by the shipper. The shift to freight handling in pallets and containers and away from traditional handling methods (required, for example, for break-bulk transport) has resulted in modernization of ports and other storage/cargo handling facilities worldwide. Modernizing means releasing the large quantities of people previously employed in handling cargo by hand,

38

and raising the capital required with which to invest in new equipment. Both choices may be challenging – and more so for the low-income countries. 6.1.8 Alternative Cargo-Handling Systems – Evaluation and Costs An evaluation into the use of alternative or additional cargo handling methods will speed up the handling and movement of goods, for example, when the ship’s derricks augment shore cranes for loading and/or unloading. Direct discharge of cargo to barges in addition to land side unloading provides similar advantages. Much will depend upon the handling methods or combination of methods used, issues of maintenance and the ease with which these alternative systems can be used at the same time. 6.1.9 Combined Transport Operation The greater the emphasis placed on the development of combined or through transits, the greater the shift towards modern facilities and use of improved cargo handling techniques. Modernization of ports in combination with increased competitiveness in international markets (where ‘time is money’), and the greater the demand for ever-quicker overall transits, which further raises demand for faster cargo transhipments. 6.1.10 Tidal Conditions Tidal variations at many ports can reduce the efficiency of cargo handling, and interrupt transhipment arrangements. Where there is no enclosed dock (to protect the ship from the open sea) there may excessive movement of the ship at the loading/discharging berth (Branch, 1986). 6.2 Types of Cargo The nature of the cargo largely determines the handling methods used during transport. Cargo is categorized by type to assist with choice of handling required during transit. The different types of category typically used and methods of handing them are described below. Containers may dominate transport of cargo, but there is still a substantial volume of loose general cargo that is shipped around the world. Handling this cargo efficiently can significantly lower costs (see Fig. 4). 6.2.1 General Cargo General cargo covers a multitude of goods much of which is packed into bags, cartons, boxes and so on. It does not include mineral ores, liquids or other materials which are transported in bulk. Transport of general cargo will involve the use of conventional so-called ‘break-bulk’ methods of handling. This is where individual bags or other packages are handled individually on-or-off different forms of transport. Slings or pallets may also be used and can be handled with a range of small-scale and typically manually operated handling equipment, much of which has origin from the earliest times (see Fig. 1). This cargo is stowed in a ship’s hold as an individual unit, with dunnage material placed at intervals so as to help build/form the stowage, hold it in place and aid ventilation.

39

Figure 1. Sketches of cargo handling tools and equipment, (Branch, 1977) 6.2.2 Unitised Cargo Unitised cargo refers to a product packed in such a way as to lend itself to palletisation or containerisation. By using the unit load concept to load cargo that was previously loaded loose cargo, palletisation provides advantages over the conventional break-bulk methods. A pallet is typically a wooden platform on to which packages can be stacked and secured (see Fig. 2 and Plate 17). The optimum situation arises when large quantities of small but uniform packages are transported over direct routes - without travelling via third countries or using other modes of transport. This limits the number of handling operations required. Bagged, cased and canned articles, drums, reels and baskets are forms of packaging that suit palletisation. Consider, for example, that one tonne of coffee or cement in 50 kg bags requires will require 20 separate movements if loaded separately. By using a pallet and a fork lift truck, the tonne load can be shifted in a single movement. This brings much speedier handling of such cargo and reduces congestion, time and costs accordingly. Given that the cost of transport and delivery of the product to its final destination overseas is a significant portion of overall cost, this strengthens the need to find the most efficient and low-cost methods for delivery of goods to market. An additional benefit of unitisation is the large cost savings that can be made. However, this is on the basis that goods are unitised/palletised and carried through to their final destination on that pallet.

40

Any benefits would be lost if the shipper required the return of the pallet (from the port for example). Cost savings achieved as a result of unitising will apply to all kinds of unit load and varied industries. This is as true for bagged cargo as it is for wooden crates of vegetables and/or bundles of metal (e.g. ingots strapped to timber bearers, etc).

Figure 2. Two configurations of pallets with the same basic design. Typically timber

made and used for a single journey they are light, strong and easy to handle (Mahoney, 1985).

Unitisation saves on costs of transport of goods. Consider the following example of cost savings. A manufacturer of canned meat and fish products had traditionally exported in individual export packages. With increased claims for damage and pilferage in transit (and resultant increases in insurance premiums) and loss of goodwill from customers, the company investigated the advantages of unitising export orders in an attempt to overcome these problems. A special export carton, that cost more than the lighter version used for local consignments, had traditionally been used but packing separately into two different cartons involved extra labour. Given that cartons in a unit load are far less vulnerable than when handled individually, the standard carton used for local markets was used for both local and export consignments. For export shipments, cartons were placed on a light timber pallet and securely strapped to form a unit load. Because of the inherent rigidity and self-supporting nature of the cartons, a pallet is subjected to much lower stresses than it would if goods of a free flowing nature were loaded on it. The relatively light and inexpensive pallet was found to be sufficient and, as a result of this revised strategy, substantial cost savings were made (NEDO, 1973).

41

Plate 17. Pallet Boards (KählerPrinz, 2002). Unitisation/palletisation of a product should enable the farmer/supplier to negotiate an improved freight rate independent of the commodity carried. This can be based on tonnage and distance, and differs from historical costing, which is traditionally based on ‘what the trade can bear’. Rebates may also be available given the reduction in time required for transport and handling. Although there are cost savings, the exporter will normally have to carry the additional cost of unitising produce including providing the pallet, strapping the goods into place and, possibly, wrapping the complete package in shrink wrapping material once strapped on to the pallet. The exporter will also have to provide (and pay for) the equipment required, and the labour responsible for the work. Additional costs notwithstanding, the benefits of handling unitised goods will outweigh these costs given improved efficiency and safer delivery of the product to the end buyer. Lack of sealing is the most significant disadvantage of palletisation; the goods on the pallets cannot be sealed against tamper, theft or damage from inclement weather if left exposed. Thus goods cannot be sent under bonded transport. Further, palleted goods cannot be protected against changes in temperature or humidity. From a road transporters viewpoint, pallets prevent the capacity of the truck being used to full commercial value – for the truck will be carrying pallets which represent dead-load that has no value. Further, they need to be handled mechanically at each point of interchange. Whilst palletisation may thus have limits to application, however, the system

42

is importance as an intermediary between traditional break-bulk and containerised transport (van den Burg, 1969). For the handling of pallets, specialised machinery is required such as fork-lift trucks. Containers require heavy lifting gear at port locations such as gantry cranes and straddle carriers, but this kind of equipment is rarely available at point of origin of goods for handling fully loaded containers on or off transport. 6.2.3 Vehicular Shipments Cargo such as farm goods moved in part by road transport or trailer will require handling equipment or manpower that matches the goods involved when loading the vehicle at point of origin. Handling and shipping goods that will remain on the road vehicle requires careful planning and execution. It is essential to stow and secure the unit (i.e. load and vehicle) with care. Access for the vehicle from the pier to the ship will require ramp access. Roll on–roll off (ro-ro) vessels or combination vessels are one option for transporting vehicular shipments (see Plate 18). Where port facilities are not equipped with cranes and other machinery to load and unload ships, the cargo on the vehicle can be loaded by placing a ramp between the pier or dockside and the ship, and the vehicle driven on, and the same for unloading. Ro-ro vessels usually have on-board ramps, which can be lowered and raised thus making them independent of facilities on shore. As a lack of port facilities is not uncommon in many developing countries, this clearly makes ro-ro vessels especially useful for these countries. The ability to carry large pieces of cargo, vehicles such as tractors and containerised cargo gives both shippers and operators of these vessels some distinct advantages.

Plate 18. Ro-ro vessel, but different in configuration from the one shown in Plate …, and more of a ‘combined’ vessel given that they carry barges that can be floated out

for access to port. Used for trading on the West Coast of Africa for many years (Authors own, 1995).

43

The major disadvantage of the ro-ro vessel is the inefficient use of space resulting from the extra room needed for the chassis and wheels of the trailer unit, and the large sometimes irregular shapes of the cargo. According to Mahoney (1985) earlier safety concerns for vessels of this kind have largely been overcome as ship designs have improved. 6.2.4 Containerised Cargo Containerisation is a unitised method of distributing merchandise that makes an inter-modal transport system such as combination of road, rail, inland waterway and sea transport easier to use. Containers are typically carried as individual units on land, but at sea are stacked on board ship in set configurations that comply with the design of the vessel (see Fig. 3).

Figure 3. Containership in plan and side elevations (Branch, 1977). A freight container is simply a unit of transport equipment. The configuration of the container remains fixed during use – as a large rectangular metal box into which goods are packed – that can be easily switched between one or more modes of transport without intermediate reloading. The external walls of the container are fitted with devices that make it easy to handle with purpose-built equipment. Containerisation has an impact on everyone and everything throughout the transportation industry – it has, quite literally, revolutionised cargo transport. The container is so familiar now that it is difficult to realised the dramatic impact of the changes made over more than 30 years of introduction. Changes in equipment were required but, more importantly, in mental attitude for everyone handling cargo. Containers shorten transport time and improve reliability and thereby help with reduction in the quantities of stock that need to be made and/or stored. The need for buffer stocks to

44

provide for continuity of assembly, for example, was reduced as manufacturers could rely more on timely delivery of inputs. Branch (1977) summarised some of the many advantages and constraints of using containers: Advantages:

Quicker handling. Reduced costs of handling goods. Through transits on a door-to-door basis, thus eliminating intermediate handling

of individual items carried in the containers. Reduced risk of pilferage and damage to cargo. Partial elimination of packing.

Disadvantages:

High initial cost providing a large number of containers to inaugurate and run a service (incurred by carriers, container operators or forwarding agents).

For some trades there are difficulties with obtaining suitable return loads, without which the ship is using freight space for which nothing is earned.

6.2.5 Bulk Cargo Bulk cargo consists of basic commodities such as grain, sugar, ore, coal, oil and petroleum products. Bulk cargo materials are usually (but not exclusively) transported in large volumes by ‘bulk carriers’. For example tankers (i.e. sea and road tankers), barges, pipelines or unit trains. Handling and transfer of bulk cargoes from one mode of transport to another is normally simpler and less demanding than the handling of general cargo. It is easier to maintain a continuous flow of bulk commodities than the batch handling of general cargo (Branch, 1986). Bulk products are frequently conveyed on belts, pumped from tanks to ship or from ship to pipeline, sucked up into grain elevators by air compressors and blown into ships, trucks and barges. Bulk commodities are moved in large loads by different modes of transport (e.g. pipelines and unit trains) that are not as prominently visible as those for moving general cargo. These cargoes lend themselves to mechanical handling with use of equipment specially designed for the purpose and comprising part of the facilities constructed at dedicated ports and other specialised locations. Specialised handling facilities may include power-propelled conveyor belts - which at ports are fed on the landward side by a hopper (effectively a large container on legs) or grabs. Grabs may be magnetic so as to facilitate the handling of ores, and are typically fixed to a high capacity travelling crane or travelling gantries. These gantries move in parallel to the quay, but also run back for considerable distances thus covering a large stacking area. Equipment of this kind is suitable for handling ores and coal.

45

In the case of bulk sugar cargoes, grabs are customarily used and especially when unloading from ships. The sugar is discharged into a hopper and feed by gravity into a railway wagon or road vehicle below. However, there are many different systems in operation, for example, sugar may be discharged by so-called ‘vacuators’ that effectively suck the cargo out of the ship’s hold. Elevators are normally associated with grain cargoes. They may be bucket elevators or operated by pneumatic suction, which sucks the grain out of the ship’s hold. Elevators situated on the quayside or sometimes floating are connected to the granaries by power operated conveyor belts (Branch, 1986). The movement of bulk petrol and oils from ocean going tankers is by means of pipelines connected to shore based storage tanks. Pumping equipment is provided in the tanker storage plant or ashore at the refinery, but not on the quayside. By virtue of the dangerous nature of this kind of cargo it is customary to build special berths some distance from the main dock system and, as recommended, on the seaward side (Branch, 1986). 6.3 Types of Cargo Handling Systems Once the type of cargo is known and the method of transport chosen (i.e. packaging, unitisation, etc) an appropriate handling system can be tailored to meet the requirements of the job. For example, whether the cargo is perishable and, hence, to what extent speed will be essential for delivery. Cost plays an important part in choice of system used, and costs may rise further given the extent to investment in mechanical handling equipment and facilities may be required. 6.3.1 Conventional Break-Bulk Handling Conventional break-bulk cargo handling at most ports involves lifting cargo in units that typically weigh between one and three tonnes (Branch, 1986). The technologies involved comply with the considerable manhandling required on shore, in the ship‘s hold and in the port transit area. Cargo as to be made up and broken down into units for lifting and stowing in the cargo hold. The handling rates and speeds achieved will vary according to the type of cargo. For general cargo the port transit function is far more complex than it is for bulk cargoes, because a large number of items have to be individually identified and located. Import cargoes have to be taken to transit sheds or open dock areas (usually depending on the prevailing weather). It will then be sorted, marked and stacked. At the dock or transit sheds, the consignees or their agents have to complete documentation formalities and make the payments required to enable the goods to be released. Procedures here will include arranging for customs clearance and payment of port dues and other miscellaneous charges levied. Thereafter, goods will be collected from their position in store and loaded on to road vehicles or other mode of inland transport.

46

Operations regarding exported cargo are generally simpler because a frequent absence of export duties allows documentation to be completed before the goods are despatched and before the collecting ship arrives. It is also often the case with shipment by sea that cargo will only be allowed on the berth when the ship is loading. Congestion is typical of most ports and more so in the import sheds, and this slows discharging. Similarly, the way in which an export cargo is delivered and presented for shipment at the port has an important bearing on loading rates. Slow and inefficient delivery often leads to delays and ensuing claims against the consignee and handling agents. Similar considerations apply to stowage of break-bulk cargo in the ship. This differs to bulk cargo where stowage is typically simple (i.e. automated filling of holds). In the case of general cargo each parcel has to be stowed in such a manner as to allow the ship to work as many hatches as possible at each port at which the ship will calls – whilst ensuring re-stowage is minimised. Equally, the physical characteristics of the cargo have to be taken into account, for example, to what extent do they affect the stability and safety of the ship? Stevedoring practices at the port used are additional factors which affect the performance of conventional cargo handling and loading systems used, for example, how many shifts are normally worked, how many workers are involved and so on? This varies considerably and has a major effect on loading and discharging rates and, hence, determines the transit times (Branch, 1986). Figure 4 shows the various stages through which break-bulk cargo may pass from the farm or production line until arrival at the final destination. Plate 3 shows a typical break-bulk cargo. In summary, the factors influencing choice of cargo handling systems according to Branch (1986) include:

Initial cost. General reliability. Maintenance of handling equipment. Availability of replacement of equipment parts. Operational availability (i.e. having regard to maintenance schedules). Productivity of the system. Flexibility of the equipment. Expected lifespan. Safety.

47

Figure 4: Flow Chart Demonstrating Stages Undertaken in Conventional Break-Bulk Handling

Possible transhipment

Tallying

Production Line

Tallying Pallet lifted out of ship’s hatch

Cargo placed on pallet in

Cargo removed from pallet

Unloading onto Port pallet

Marking & Despatch Preparation

Goods lifted from pallet onto vehicle

Vehicle unloaded by Consignee

Transfer to storage area Retrieval from store

Transport to port

Loading to vehicle

Transfer to port shed Movement from shed to ships side

Pallet lifted into ships hold Ocean transport to destination

Movement to transit shed Transfer from shed to loading area

Transport to Consignee

Storage

48

6.4 Labour vs Capital Handling Systems In practice there are two competing methods for handling cargo in ports and other points of transit: 1. Labour-intensive systems; and 2. Capital-intensive systems. A labour-intensive system makes use of a large numbers of skilled and semi-skilled people (called ‘stevedores’), and a capital-intensive system focuses less on labour and more on mechanisation to achieve much the same thing. There are advantages and constraints for each approach. Labour-intensive systems Advantages:

Readily available. Provision of employment (which in impoverished areas is important).

Disadvantages:

Frequently more expensive. Lack of sufficient training and/or expertise when handling of goods, and

preparation for safe transit. Capital-intensive systems Advantages:

Goods handled in swift and efficient manner. Reduces risk of damage to goods in transit if they have been carefully packed,

handled and transported in modern units or containers. Disadvantages:

High capital outlays and costs (including routine maintenance requirements). Ultimately decisions need to be taken by those responsible for port, transport and materials handling facilities for what would be preferable or ‘nice to have’ against what is essential.

49

Chapter 7 Stowage and Securing Cargo

7.1 Introduction Poor stowage and securing of cargo represents a serious problem for carriage by sea, where the ship and cargo may be subject to unique stresses and strains, particularly when seas may be rough. Land transport and storage is not subject to the same severity of movement, but inadequate handling, etc. remains an issue for the security of the goods being carried according to SMUA (2003). Inappropriate stowage and securing of cargo can result in severe injury or, in extreme cases, with death of those responsible for cargo on board ship or when carried by road and rail transport. In much the same way, poor handling, etc. may cause damage to the natural environment should an accident occur and goods, for example, are spilled or lost. This happens with movement of goods which are not secured and/or held fast; and may be the cause of the accident. Alternatively, derailment of rail wagons or over-turned road trucks may spill dangerous goods into the surroundings. Whatever the outcome, insecure stowage can be minimised by checking and re-checking the security of goods that are in transit. In economic terms, cargo lost or damaged in transit is one of the major causes of insurance claims. Many of these losses could have been avoided if more attention had been paid to correct loading and securing of cargo (SMUA, 2003). At ports and many warehouses storage work is the responsibility of experienced stevedores and others, at many inland depots and/or shippers premises experience of this kind can be lacking (author’s experience). Since their introduction in the mid-1950s, containers have had a notable impact on the methods used to transport goods (see section 4.6) and a substantial proportion of produce is moved around the world in containers. However, loading of containers will usually take place at inland depots. This is relevant because the skill of the experienced stevedore (typically located at ports) has not always been transferred to these inland depots, thus frequently resulting in use of less efficient methods for securing of goods in containers. If this problem is to be avoided education and training will be essential. Effort has to be made to use the correct stowage techniques for the types of package being transported. 7.2 Tailoring Stowage Methods to Suit Conventional Cargo General cargo that includes goods which consist of individual packages that are handled individually can bet termed ‘conventional cargo’, and slings or pallets are typically used for stowage (see section 6.2.1). The relative vulnerability of conventional cargo warrants focus upon stowage and securing methods specific to their requirements and which, when utilised, should minimise the risk of damage or loss.

50

7.2.1 Cartons, Crates and Boxes When loading cartons into a container it should be noted that:

The load-carrying capacity of the cartons reduces as humidity levels rise. If cartons are able to move within the container they may easily suffer abrasive

damage. This is overcome by adopting ‘tight’ stowage techniques, i.e. filling dead space and bracing or strapping the product.

With this in mind, GDV (2003) recommended the following packing/stowage procedures:

Packing should begin at the ‘front’ of the container (i.e. the end opposite the door) and should start from the sides and move inwards.

The space available should be utilised as efficiently as possible, thereby minimising dead space.

Tight stowage can be achieved if packages are overlapped like bricks. Packages can be secured to each other and to the container floor with timber

connectors, thereby preventing the cargo from moving. If there is unused space, the cargo should be braced row by row during stowage. If there are large and/or heavy crates these should be placed in the middle of the

container and braced against the corner posts. If the consignment is insufficient to utilise the full volume of the container, the cargo should be arranged such that it covers the entire floor area to a uniform height. This will ensure uniform weight distribution. It will also mean that less material will be required for securing the product. Working time will be saved through lower lifting heights. Figure 5 provides two configurations for packing goods in a container.

Figure 5. Recommended ways of stowing boxes & crates in containers (GDV, 2000). 7.2.2 Pallets and Unit Loads When a pallet is used to carry cargo in a container, the size of the pallet will determine the use of capacity the container. The choice of pallet size will depend on the internal

51

dimensions of the container, together with the shape and weight of the packages. Four way pallets - those accessible by fork lift trucks from all four sides (see section 6.2.2) allow the floor area of the container to be put to best use (GDV, 2000). For pallet use within containers, it is important that the cargo is firmly secured on to the pallets and that the pallets are in turn firmly secured in the container. Some useful guidelines are provided by GDV (2000):

The cargo should be attached to the pallet with straps, adhesive or shrink film. For single-layer stowage, 2-4 lumber connectors underneath each pallet are

usually sufficient to secure the pallets. If it is only possible to fit one row of pallets into the container, this row should be

positioned along the centre of the container. If there is room for two or more pallets across the width of the container, the rows

should be tightly positioned against the container sides. Any unavoidable dead space should be left in the middle of the container, so as to

achieve uniform weight distribution, and also to simplify lashing. 7.2.3 Metal Drums, Polydrums and Barrels Loading drums, polydrums and barrels requires an approach different from that of rectangular boxes or goods on pallets. For drums and barrels the following procedures are have been recommended by GDV (2000):

Before loading, drums should be checked for leakage. Drums/barrels should be loaded so that their tap openings are at the top. Metal drums are best loaded upright and stowed close together. The optimum

arrangement for stowage of drums (on the floor of a container) can be calculated by dividing the width of the container by the diameter of an individual drum.

It is essential that drums and barrels be adequately secured, particularly in the door area. This can be achieved either by wood bracing or encircling the packages with steel strapping, and then preferably interlinked in the manner of the Olympic rings. Staggered stowage should keep the top layer firm. This can be achieved by varying the heights of the drum or by using empty pallets.

If drums are stowed on their sides, steps should be taken to ensure they do not roll during transit. For example, they should not be allowed to come into direct contact with the container floor and they should also be firmly wedged. With regards to polydrums, these require scrupulous checking for leakage. Any leakage from these packages will endanger the stability of the entire stow. Layers of polydrums should be covered with dunnage to ensure stowage stability. Failure to adopt rigorous stowage measures of this kind will likely result in ‘bulging’ of individual drums (or of an entire layer of drums) resulting in lids being loosened/removed with consequent loss, damage and/or contamination of the product (GDV, 2000).

52

7.2.4 Bagged Cargo If bagged cargo is not properly stowed within a container, then it is highly likely that the bags will slip out of the unit when the container doors are opened. Incorrect stowage can also cause container walls to bulge out due to the excessive pressure imposed on them. This again can have potentially serious consequences, for example, should the container become jammed in its slot on board the ship and damaged when unloading, but safety issues may also arise for ensuing transit by road (GDV, 2000). To prevent damage and loss the bags should be stowed in such a way that they do not move during transport. According to GDV (2000) there are two possible ways of doing this:

Stow bags in criss-cross fashion. (Note, however that this will not prevent slippage when plastic bags are used.)

Palletise the bags. (The most appropriate size of pallet will depend on the internal dimensions of the container, the shape of the bag and the weight involved.)

7.2.5 Bales Whilst bales are not normally damaged during the actual transit, they are particularly vulnerable at point of handling. It is important to ensure that the outer covering of the bales is not damaged. When loading bales by fork-lift truck, pallet boards or wooden planks can be laid on the floor and in between each layer of bales. These should be laid longitudinally – parallel with the length of the container (GDV, 2000). If the bales are not flush with the container doors, then it is best to secure the cargo by bracing it against the corner posts. This will ensure safe transit and reduce the risk of personal injury, for example, by bales falling out when the container doors are opened (GDV, 2000). 7.3 Stowage – Other Types of Cargo A number of different factors have to be taken into account when stowing conventional cargo that has special configuration or special needs when compared to other types. This includes refrigerated, liquid and/or over-sized goods. 7.3.1 Refrigerated Cargo A variety of cargo is transported in refrigerated containers. Different goods will require unique temperature settings, for example, ice cream may require a temperature setting of –25degC whereas flower bulbs may require a temperature setting up to +30degC. Most refrigerated cargoes will come within this temperature range, and range settings need to be known and established prior to shipping (P&O Nedlloyd, 2003). There will an interaction between the temperature required of the stored goods in the refrigerated container and the ambient temperatures through which the ship may pass

53

during transit. This means that accurate monitoring of temperature control of the refrigeration unit is essential, to ensure the produce reaches its destination in the condition required. Equally important, cargos of bio-materials consisting such as fresh fruit and vegetable products will require a fresh air supply during long distance transport. For meat, dairy products and fish, the correct maintenance of temperature settings is crucial. With products of this kind the actual defined temperature range is frequently small, leaving little margin for error. The quality of the product, its processing, packaging and ultimately its shelf life will depend upon temperature setting. The design and application of refrigerated containers have improved with time, thus facilitating a wider variety of materials carried. For example, the temperature control system can vary between different integral containers as well as with porthole containers (P&O Nedlloyd, 2003). 7.3.2 Liquids Liquids are frequently transported in tank containers. As a general rule, tank containers should only be transported when at least 80 percent full, so as to prevent potentially dangerous surging movements when in transit. However, these containers should not be more than 95 percent full, so as to allow for thermal expansion of the contents (GDV, 2000). In addition to rigid tank containers, ‘liquid bulk’ bags are used as containers to transport non-hazardous liquids such as wine or latex. These bags are supplied in standard, open top or bulk form. 7.3.3 Outsize/Out of Gauge Cargoes Out of gauge (OOG) cargo is slightly higher or wider than the configuration of a standard container and will not fit into it, and is typically carried in open top, open sided or flatrack containers. If an item is too large to be containerised (in terms of weight or dimensions) then it must be shipped as uncontainerised cargo, which means carrying it on a bed of flatracks or on a tailor made timber bed or cradle. This category of cargo is customarily booked for shipment with transporters under an ‘OOG request’. Careful planning and good communications between commercial and operational teams and/or other authorities is the key to the successful transport of uncontainerised OOG cargo (P&O Nedlloyd, 2003). Large and heavy units that take up only a part of the container space should be placed in the middle of the container, to ensure even weight distribution. Space on either side of the unit can be used for securing the cargo. The centre of gravity of the container load should be kept as low as possible. Accidents, consequent cargo damage and resultant heavy claims result of these considerations are ignored. The centre of gravity should be included in handling instructions indicated on the container and, accordingly, lifting points should be well marked. This will help prevent damage during handling operations (P&O Nedlloyd, 2003).

54

7.4 Securing Cargo and Issues of Safety Unique safety issues apply to securing of containerised cargo. It is not uncommon for containers to be loaded with more than their stipulated payload. Such overloading will often lead to accidents and the cause only ascertained following a consequent weigh-bridge check (P&O Nedlloyd, 2003). Overloading places high stress loading on the container and on the transport modes used to move it. The gross weight of the container (i.e. cargo plus container tare) should not breach the road or rail limits appropriate for all stages of the transit journey. The importance of observing these limits cannot be over-stressed, particularly should liability occur following an incident. There is high probability that cargo within the container will move during transit. This is usually because the cargo was not initially secured properly or packaging was defective. This can also occur with uncontainerised cargo. There are many instances where road vehicles over turn due to cargo moving when the vehicle negotiates a bend The key preventative measure is to secure cargo effectively to prevent the initial movement (P&O Nedlloyd, 2003). Although containerised cargo may be inherently better protected than uncontainerised cargo, it is still subject to the constant movement and stress of transport. This is particularly relevant for ocean transits when heavy seas ensure cargo is exposed to compressive forces as a result of pitching and rolling. It is estimated that these forces increase the normal strain on lashings, struts and other securing devices by as much as 100%. Ensuring that the load is secure throughout the entire transport process is essential and this requires the experience and skill of efficient lashing and securing cargo. This is best done by specialised riggers or terminal staff, particularly when transporting sizeable cargo (P&O Nedlloyd, 2003). 7.4.1 Securing and Materials A securing lashing will always break at its weakest point or at the part with the lowest breaking strength. Different strength lashings exist for cargoes of different weights and sizes. Materials that can be used for securing most types of cargo as described by P&O Nedlloyd (2003) include:

Timber beams, struts or planks for shoring, bracing and relieving pressure. Adjustable wooden battens or strap belts for securing the load in sections, thus

facilitating mechanical discharge. Plywood and dunnage to separate several layers of cargo or to segregate different

types of cargo. Foam-rubber cushions and air bags to reduce vibration and prevent the load from

shifting. Used vehicle tyres or bags with paper-waste or sawdust to fill empty spaces, to

soften impact and prevent shifting.

55

Nets to secure fragile goods. Ropes (e.g. hemp, sisal, manila, etc.), wire, steel bands and terylene straps for

lashing. 7.5 Cargo Care Despite the emphasis given to stowage and securing produce at time of loading and shipment, an essential pre-requisite for ensuring this is the use of a sound and undamaged container. Containers must be maintained to a minimum standard, and checked continually to screen out damaged containers for repair of disposal. 7.5.1 Container Inspections A full container inspection for structural damage requires competence and experience. However, for cleanliness and general acceptability common sense will usually suffice. It is normal to carry out a brief internal and external inspection of any container presented for loading before anything is loaded into it. In fact, it is obligatory for any shipper or supplier under conditions of carriage (of all transporters, of whatever form) to check the condition of the container before loading. This satisfies the customer as to cargo-worthy condition and suitability for transit of the goods to be carried. Checklists are a useful way of doing way of covering all sectors and components that have to be checked. The following checklists, respectively, for an external and internal inspection of the container recommended by P&O Nedlloyd (2003) helps to minimise damage to the cargo and ensures safe delivery to its final destination. Check for: External

Holes: Holes or tears in the exterior panelling of the container. Doors: Broken or distorted door hinges, locks or door seal gaskets. Check that the

doors close and fit tightly. Tilts: Where containers are fitted with removable roof tilts or side curtains check

that these fit correctly and have no tears. Roof bows: Open top containers where all roof bows (i.e. supports) are in place. Labels: Labels on the outside of the container that relate to the previous cargo,

and removed them. Internal

Clean: That there are is nothing remaining from the previous cargo (i.e. sweepings, dust, grease or liquid).

Dry: That the interior is dry and free of any sweat. Infestation: That there is no evidence of insects, pests or rodents which might

contaminate the cargo and lead to delay by port health authorities. Taint free: If the container will be carrying delicate goods susceptible to damage

by bad odours, check that it is sweet-smelling. This should be checked immediately the doors are opened, when any lingering smells will be at their strongest.

56

Watertight: This is best checked by entering the container and closing both doors. If any light can be seen then water can gain entry. This applies equally to the container floor where water can percolates through when the unit may stand in water.

Post-Loading Once the product has been fully loaded, P&O Nedlloyd (2003) recommends that the following checks be undertaken:

Stowage: That the goods have been stowed and secured so as to withstand the normal stresses and strains of the intended transit; and, in particular, that doorway cargo cannot move.

Security: When the doors are shut, all securing lugs should be properly engaged, forcing the door seals into compression. The approved seal should be applied in the appropriate position and a careful record made of its number.

Contents: Any labels on the outside of the container advertising contents will attract thieves and should be removed.

7.5.2 Condensation Condensation occurs when moisture-laden air releases its water vapour on to the surrounding surfaces in the form of water droplets (OUP, 1978). For condensation to occur the following conditions need to be present:

Temperature gradient (between air inside and outside the container). Source of water vapour (moisture). Pathway for it to move.

Condensation manifests itself as cargo or container sweat. Whatever the cause of condensation, however, the consequences include damage or loss of goods transported. Hygroscopic commodities are particularly vulnerable to damage from sweat. These are goods which are permeable to water and which retain moisture under some conditions. Timber, coffee, cocoa and most materials of organic origin are hygroscopic. Coffee, for example, can have moisture content of up to12 percent, making it essential to avoid container or cargo sweat (P&O Nedlloyd, 2003). Steps can be taken to minimise condensation and damage. 7.5.2.1 Container Sweat Container sweat occurs when the skin of the container is cooled to a temperature below that of the dew point of the air enclosed within the container. This results in droplets of water forming on the interior roof and side panels and then dripping down on to the cargo, thus causing water damage. This may encourage mould to grow. Care needs to be considered when handling products that heat spontaneously. The following extract was reported by P&O Nedlloyd (2003), and illustrates an example of how container sweat can arise:

57

A cargo is loaded into a container in a country located in the tropical belt. The conditions under which it is loaded are warm with high relative humidity. Its final destination is temperate Europe during winter. During transit the temperature outside the container gradually drops to that prevailing in Europe. The steel container allows the chill from the outside of the panel through to the inside. The situation inside the container is now one of cool sided panels and warm moist air in the header space above the cargo and within the stow. The temperature of the side panels is therefore below the dew point of the air inside the container and condensation occurs. Condensation will continue until the dew point of the interior air falls to that of the outside air. A simple solution for over-coming this is to ventilate the container by passing air through it, and replacing the warm moist air with air similar to that outside the container. 7.5.2.2 Cargo Sweat Cargo sweat occurs when the surface of the cargo is cooler than the dew point of the air enclosed within the container. Water droplets form on the surface of the cargo. The following explanation and solution was taken from P & O Nedlloyd (2003): A cargo of canned goods was loaded in cold winter conditions in Europe and transported to tropics. The container will gradually heat up in transit complying with an ambient warm moist climate, however the cargo temperature will lag behind and slowly heat up. Ventilation at this stage will allow the warm moist air from outside to enter the container where it will condense on the cold cargo. In this case it would be better to avoid ventilation during transit and allow the cargo temperature to gradually increase, thus restoring equilibrium between the cargo temperature and that of the outside air. 7.5.2.3 Heat Radiation at Terminals and on Board Ship Wherever possible, cargoes sensitive to condensation should be protected from sources of radiant heat and extreme cold. Cargo is vulnerable to exposure of this kind:

When the container has a long road or rail transit. During the time that the container is in the stack at the terminal awaiting

shipment. Here shaded or sheltered stowage may be required. Once aboard ship, where below-deck or protected stowage may be required.

An example of this problem and its solution was reported by P & O Nedlloyd (2003) to help their clients to provide better care of cargo. A non-insulated container was left on the quayside terminal at Assab in Ethiopia with a consignment of bagged coffee and subjected to radiant heat from the sun. The air inside the container heated up and absorbed moisture from the coffee and thus established an environment of elevated humidity. Cooling during the night caused the temperature of the container skin to fall below the dew point of the internal humid environment and heavy condensation resulted.

58

This example emphasises the need to avoid radiant heat. In this case, delayed packing of the coffee before export would have avoided this situation. Equally, long periods of exposure to the elements should be avoided and particularly during extremes of temperature - at the height of summer and/or the depths of winter. When a consignment arrives at the destination port it is important to make prompt delivery and more so with sensitive cargos arriving at terminals with near zero temperatures. If this happens, in case cargos can suffer so-called ‘cold shock’ during the first night at the terminal. Ocean carriers often consider it prudent to open a container door slightly so as to ventilate the container – if prior approval exists from the cargo owner (P&O Nedlloyd, 2003). 7.5.3 Ventilation In cases of extreme ‘container sweat’ air should be ventilated evenly inside and outside the steel container. Good ventilation helps to evacuate the warm moist air from the container and replace it with ambient air from outside. Ventilated containers have vent ducts along the side panels and at the top and bottom rails that encourage ventilation by convection. Warm moist air is expelled from the upper ducts and replaced with the colder ambient air from the lower ducts. As carriers incur high leasing costs for this kind of equipment, the freight costs charged by carriers for use of material handling equipment such as this are also correspondingly higher, which raises issues of cost. A large number of general purpose containers have four small vents at the top of the corner castings, with each providing air paths. These are termed ‘porthole containers’, and provide a small amount of ventilation, but it is important to leave sufficient free space around them for effective movement of air. The passive vents of this kind of container have to be taped off when it is used for hygroscopic cargoes. The same applies for cargoes liable to spontaneous combustion. However, the majority of dry cargoes can be successfully carried in these general purpose containers (P&O Nedlloyd, 2003). ‘Fantainers’ are used successfully throughout the world for carrying onions and potatoes. An extraction fan draws ambient air through the cargo to maintain equilibrium with the temperature outside the container (P&O Nedlloyd, 2003). Other options include the use of desiccants and/or lining the container with ‘kraft paper’ or fibreboard. This amounts to parcelling the cargo to avoid contact with the steel walls of the container. Desiccant bags should be placed on top of the stow so as to absorb moisture in the header space (P & O Nedlloyd, 2003).

59

Chapter 8 Carriage Practices and Instructions

A carrier that provides services for the movement of goods from one point to another is often unaware of the nature and properties of the cargo being transported. It follows that it is imperative that any transporter is given full and concise instructions at the time the cargo is booked for shipment, and certainly before the consignment is uplifted, particularly if specific precautions are required for handling, stowage and storage (for example, transit temperature for perishable produce). There are numerous instances where simple procedures are overlooked or where there is poor or inadequate communication regarding recommended requirements. It is not uncommon for instructions of this kind to be left to the last minute and then to be made verbally to (a possibly disinterested) truck driver. In this way, it will not be passed down the line to those who may become involved with subsequent movement and storage (Spencer, 2001). When shipping various commodities through different climatic conditions, the cargo will almost certainly be affected to some degree by condensation. This is particularly the case if the cargo is perishable and when stowed in the hold of a ship or container that has no dehumidification equipment. 8.1 Education and Training Well-educated and well-trained staff is vital to the successful transit of commodities; these are people who will be familiar with the wide variation in products carried and the different modes used. Staff engaged in the preparation of goods for shipment and those actually responsible for loading operations at point of origin need to be fully informed of the different types of transport likely to be used when moving the goods to their final destination. Staff must be able to anticipate the conditions and stresses and strains the product will be subjected to throughout the transit. Staff should be regular provided with training to enable them to keep abreast of new developments and innovation. Suppliers/shippers can share staff training, with the courses/activities tailored to suit the requirements of the goods normally handled. Training courses may include the following:

Provision of information describing the product and its properties. Understanding these properties and how they may affect the behaviour of the

goods under typical transit and storage conditions. Recommended packing and handling requirements for the product. Provision of information describing the correct stowage and methods of securing

goods for transit. Initially this may cover loading on to road transport at the farm or place of origin, but can then be extended to cover the wider issues of stowage and securing required of packages/produce carried by other forms of transport. This is particularly the case for ocean transits and the special conditions to which goods are subject when at sea. As discussed in section 4.6, a lot of damage arises

60

in transit as a result of poor stowage and securing of goods within containers. Sometimes this is because the people charged with filling the container may not be familiar with the goods or do not have an appreciation of the varying stresses to which the consignment may be subjected.

Training by senior/experienced people from the suppliers who may be able to provide a great deal of useful information in dedicated talks/lectures. These can be supplemented by others specializing in different parts of the transit including cargo surveyors, assessors, shipping company people, road and rail operators, airfreight carriers, port authorities, freight forwarders and others.

The knowledge and experience that staff responsible for handling are likely to gain by attending training courses will raise awareness of the potential hazards of moving the product from point to point. Further, it may also serve to encourage a spirit of working together, i.e. teamwork. The main aim of this is to deliver the product to its final destination in good condition and, importantly, to ensure customer satisfaction. The consequences of inadequate training for transit of good include increased likelihood of goods being damaged or lost at some stage during transit, and customer dissatisfaction that brings risk of loss of repeat orders. Although staff training will be expensive, it can be highly cost effective should things go wrong. Take, for example, consignees unloading damaged goods before the arrival of the surveyors from the insurance company (which is typical of practice – but not recommended). In their effort to ‘take a look’ at any damage, packaging will be removed and may be thrown away. This hampers any subsequent investigation for the cause of the damage, including an assessment of the suitability of the packing and whether it was part responsible for the damage (i.e. it did not provide sufficient protection to the goods). Loss of packaging also prevents the assessors from making recommendations for improvements that should be made in future (Spencer, 2001). 8.2 Instructions to Carriers Whatever the extent of their experience, many carriers will be oblivious to the nature of and characteristics of the different products that are being shipped. In many cases, carriers will exempt themselves from all responsibility for damage and losses arising as the result of a wide variety of causes. Thus it is essential that attention always be made to ensure that the carriers are provided with clear and easy-to-understand instructions for the carriage of the goods. And if not the carriers, then the party with whom the contract for shipment has been made. This should include stowage instructions, for example, keeping the goods away from a source of heat, not to be mixed with other commodities, temperature requirements and/or other restrictions. For best, handling instructions should be made in writing at the time the goods are booked for shipment and similar instructions included in the transport document i.e. road consignment note, ocean bill of lading or air waybill (see Fig. 6). These instructions to transporters or freight forwarders (who may be arranging the overall transit) should cover any additional precautions for each item/commodity being shipped. There are often striking differences in the carriage of

61

goods in containers and by conventional break-bulk methods, and careful consideration needs to be given to packaging and stowing for both options.

Figure 6. Example of booking note. (Xingang Logistics 2003)

62

Chapter 9 Contracts for Movement of Goods

Contracting for the movement of goods is essential that consignee, shipper, handling operators, agents and sender of the goods will have firm information on what is being moved and, importantly, on their respective responsibilities within the transit. Historically, when a supplier of goods wanted to ship them to an overseas destination direct contract with the ship owner or shipping line was required. This was done by contacting that ocean carrier directly or by using the services of a local shipping agent. These systems are robust and relatively benign, and much cargo is still booked for shipment in this manner. However, with the development of containerisation and increased through transit of goods on intermodal basis, cargo handling has become dominated by the non-vessel operating common carrier (NVOCC) and the freight forwarder. The designation ‘NVOCC’ denotes a person or organisation that provides international sea transport – just as though the ocean vessel used to carry the cargo was owned by this individual or organisation. The NVOCC does not own vessels, but uses the vessels of other companies. The NVOCC company will issue their own bills of lading (B/L) and assume liability and, typically, provide a number of complementary services. Among the many ‘middlemen’ providing the services that control the movement of freight, probably the most significant is the ‘Freight Forwarder’. These people can be domestic and international freight forwarders or domestic and international airfreight forwarders. They play an important role when servicing both shipper and carrier by consolidating small shipments into larger consignments. Forwarders palletise and containerise shipments for intermodal transport. They will issue their own documentation for the through transit, and this often runs on an effective door-to-door basis from the supplier’s premises through to the final consignee’s warehouse. In consequence, legal responsibility will be accepted for the complete movement but subject to a relatively stringent set of trading conditions. Not all forwarders provide this complete service, but specialise further with specific services, goods and/or destinations. Tramp vessels continue to carry a large proportion of the world’s trade. Movement of sizeable quantities of goods, particularly by sea, is usually undertaken under some form of specific contract - such as a charter party contract. A charter party is essentially a contract under which a ship owner agrees to place his/her ship (or part of it) at the disposal of a merchant or goods supplier for the carriage of a product from one port to another port. The goods supplier is known as the ‘charterer’. This agreement extends for a specified time period. Remuneration for this service is known as ‘hire’ or ‘hire money’ The terms, conditions and exceptions under which goods are carried are set out in the charter party (Branch, 1977).

63

9.1 Types of Charter Party Contracts The charter parties for the carriage of goods can be considered in four categories: voyage, time, demise and trip charters. (i.) Voyage charters These are charters arranged to carry cargo on a single voyage between two specific ports or areas. The remuneration, which the ship owner receives, is called ‘freight’. Unlike hire this is usually calculated on the quantity of cargo carried and has no relation to the time taken for voyage. Freight (i.e. payment) is usually based on either a cargo tonne basis or a cubic capacity basis and includes the costs of the voyage (i.e. bunkers, port charges, canal charges, etc). (ii.) Time charters These are charters arranged for a fixed time period - where the use of the ship and the crew is placed at the disposal of the charterer, in return for payment of hire at regular and agreed intervals. Payment is usually calculated on a dead weight tonne (DWT) per month basis. The DWT refers to the weight which the vessel is capable of carrying by way of cargo plus bunkers, stores and fresh water when loaded to maximum permitted marks. It excludes voyage costs (Metaxas, 1971). (iii.) Demise (or bareboat) charters Charters by demise are effectively lease arrangements and constitute an arrangement whereby the ship owner hires the vessel for a specific period. Under such charters the charterer effectively takes control of the vessel, paying all operating and voyage costs. The charterer thus de facto becomes the vessel owner. (iv.) Trip charters These are part voyage, part time charters. They are charters arranged for a voyage which specifies delivery and re-delivery ports or areas. However, payment for these agreements is customarily per DWT per month. They exclude voyage costs. 9.2 Charter Party Terms In practice there are usually two stages in the creation of a charter party. First there is a period of negotiation. If this is successful it will culminate in a ‘fixture’ or an informal agreement being made. Second, the terms of the fixture are recorded in a formal written document, which is executed by both the ship owner and charterer. The terms and conditions found in a charter party thus represent the wishes of the two parties to the contract. Figure 7 shows an extract from a charter party. Historically, many trades such as grain, timber or minerals have their own well-recognised and widely adopted form or forms of charter party(ies). It is these standard forms that are used as a basis for a charter contract. Applicability will depend on the commodity involved. As produce varies, the terms of the charter parties may be substantially adapted and/or added to, to take into account individual circumstances.

64

Ship owners usually ‘fix’ their vessels and charterers generally find ships to carry their cargoes through the intermediary of a broker. It is invariably the case that the parties use separate brokers – and these brokers receive a commission for introducing the parties. The rate of commission is specified in the charter party and is generally a percentage of the freight charged and agreed for carrying the goods.

Figure 7. Charter party extract (BIMCO 1994) 9.3 Provision within Charter Parties for Responsibilities and Costs There are certain essential clauses in all charter party contracts as well as additional clauses tailored to the individual contract. Equally clauses that exist within, for example a time charter are rather different from those found in voyage charter - simply due to the different nature of these trades. However, what is of particular concern in this context is that there are provisions made for the definition of precise responsibilities allocated to all the parties involved in the transit. Given that the prime concern is for the safe transit of the product and its delivery intact to the intended consignee, it is important that careful consideration takes place when negotiating a fixture, such that the precise responsibilities of everyone involved are

65

accurately defined. This extends to covering, loading and discharging operations, and allocates responsibility for these operations and for their payment. Responsibilities for operation and payment may not be the same party and it can, from experience, lead to frequent and expensive arguments at a much later date should problems of damage or loss of product arise. The expression ‘free in and out’ (FIO) is frequently used in this context. Within voyage and time charter parties provision is also made for ‘demurrage’ and ‘despatch’. If a ship loads and/or discharges in less than the prescribed time, then the owners pay despatch money as a reward for the time saved. Conversely, if the prescribed period is exceeded, then demurrage is payable at an agreed rate to the ship owner as compensation for the delay to the ship. Such claims can sometimes become relatively substantial and will add to a charterer’s costs. They can also not always be foreseen and may arise from factors completely outside the control of charterers and/or ship owners, such as delays resulting from adverse weather conditions and labour unrest/strikes. Delays such as this will impede the delivery of cargo and may cause deadlines to be missed, the shelf life of the product to be reduced and associated problems. The result will be customer dissatisfaction. There are a number of other provisions in charter party contracts that specify delegation of responsibility for a range of items. For example, an agreement will have been reached between the parties as to the rate of freight (i.e. the cost) for the charter, as well as the manner and timescale for payment. This will vary depending on the type of charter contract which the parties have agreed. Typically, charter parties will usually incorporate all relevant internationally agreed conventions. This is legislation that covers any other contracts concerned with the carriage of goods by sea. The original piece of legislation is known as ‘The Hague Rules 1924’ and subsequently ‘The Hague-Visby Rules 1968’. The Hamburg Rules on ocean carrier liability were re-drawn in 1978 under the auspices of the United Nations. The legislation provides for uniform common-carrier liability for ocean carriers - starting from acceptance of the goods by the ocean carrier and ending with delivery of these goods to the destination port. A significant difference between earlier and current legislation is that the latter place the burden of proof on the carrier (NEPIA, 1992). The Hamburg Rules were delayed in their implementation given the considerable time taken for them to be ratified by minimum 20 countries. Although this number of signatories was finally achieved in 1992, none of the major ship owning or trading countries have so far signed up to the convention. The legislation only applies when the port of loading and/or the port of discharge is in a contracting state. The rules under which a port operates is determined by the contracting state of that country – that is, under which rules that country has chosen to operate. The Hague-Visby Rules (as enacted in most countries) apply only to outward shipments from a country which has adopted this legislation. The Hamburg Rules apply to shipments both from and to a country which has adopted this latter legislation. A voyage

66

can therefore be subject to two inconsistent regimes, for example, cargo can be loaded in the UK (under the Hague-Visby Rules) and discharged in Egypt (under the Hamburg Rules). The regime applied would in practice depend on where any legal proceedings were brought. In this example a UK court would likely treat the carriage contract as being subject to the Hague-Visby Rules; and an Egyptian court would treat it as subject to the Hamburg Rules according to NEPIA (1992). 9.4 Movement by Road The convention on the ‘Contract for International Carriage by Road of Geneva’ and dating 19 May 1956 is widely known as the ‘CMR Convention’. The CMR Convention is the law governing the international movement of goods by road. It applies to “every contract for the international carriage of goods by road in vehicles for reward” (Article 1; UN, 1978). It also extends to “where the vehicle containing the goods is carried over part of the journey by sea, rail, inland waterway or air” (Article 2.1; UN, 1978). The CMR Convention states that when taking delivery of the goods, the road carrier will check the accuracy of statements in the consignment note for:

Number of packages. Marks and numbers. Apparent condition of the goods and their packaging.

Obviously, this cannot extend to a closed container (Article 8.2; UN, 1978). The road carrier can limit his liability under the CMR Convention for loss or damage to goods. Whilst this was originally set to a figure not exceeding 25 Gold Francs per kg of gross weight, this has since been revised to a figure equal to 8.33 SDRs (i.e. Special Drawing Rights) per kg (Article 23.3; UN, 1978). This legislation, whilst widely used and of considerable value for transits within the European countries, has not been adopted in many other countries. For example, although strenuous efforts have been made in South Africa to get such legislation adopted onto their statute books this has not yet occurred. 9.5 Movement by Rail Carriage by rail is governed by the ‘International Convention for the Carriage of Goods by Rail’ (and known as the ‘CIM’). This was signed in Berne, Switzerland on 25 October 1952 (HSE, 2003) and strictly defines the legal liability of the railways. The amount of indemnity, in the case of a successful claim, is restricted to the equivalent of 100 Gold Francs per kg of gross weight not delivered. The carriage of passengers and goods by rail is now subject to the provisions of the ‘Convention concerning International Carriage by Rail’ of 9 May 1990 (COTIF; HSE, 2003). The second appendix to this Convention deals with the ‘Carriage of Goods’ (CIM Uniform Rules).

67

9.6 Movement by Aircraft The Warsaw Convention is the treaty governing liability procedures and limits for air transportation. It was adopted in 1929 and ratified by the United Nations in 1934. The Convention was amended at The Hague in 1955 (UN, 2003). The Warsaw convention is applicable to all international carriage of people, baggage or cargo undertaken by aircraft for reward. As far as cargo is concerned, an original limitation of liability of 250 Francs per kg was amended at The Hague to a figure of 17 SDRs per kg. However, the figure is now widely accepted as US$20 per kg. 9.7 Incoterms In addition to contracts covering the movement of goods, any transportation of freight requires an agreement between the buyer and seller. So-called ‘Incoterms’ set out to define the responsibility of ‘sellers’ and ‘buyers’ as clearly and precisely as possible (ICC, 1990). Incoterms can be described as a set of international rules used in foreign trade contracts; with the rules having been compiled by the International Chamber of Commerce. 9.8 Sanction on Modes of Transport Used Despite the variation and availability of the different contracts for the movement of goods there are frequently other restrictions that are also imposed. Governments, for example, will often impose restrictions or exert strong pressure for usage of certain vessels including national carriers or vessels carrying the national flag. Sanctions are also regularly imposed on countries for political reasons, which typically has a devastating effect on the unhindered movement of goods. At the least it causes long delays, the consequences of which leads to customer dissatisfaction to the extent that the original source of the goods may be discarded in favour of a more reliable alternative (which may have been the original purpose of the sanctions). 9.9 Management, Supervision and Control Issues The use of specialised brokers to arrange and negotiate a charter party contract was described earlier in section 9.2. Notwithstanding firm arrangements of this kind the participating parties may have continuing involvement with some issues such as freight collection, and will regularly liase with the ship owner through his/her broker. Despite this, it is useful to have the services of a specialist to ensure management of the charter and overall supervision of the transit of the goods. This supposes that these types of services are not already provided by the brokers who were responsible for the original contract.

68

9.10 Responsibilities - Intermodal Transport When a supplier/shipper tends cargo to a transporter for through carriage, the carrier issues a ’bill of lading’ (B/L). In air transportation it is referred to as an ‘airway bill’. The operational document prepared by surface carriers (road or rail operators) for their own internal use is called a ‘waybill; (Mahoney, 1985). The B/L or airway bill is a receipt for the cargo and will incorporate the various conditions of carriage. It provides evidence of the contract between the shipper and the carrier. There are a wide variety of bill of lading forms available. The uniform B/L consists of two types:

1. Straight B/L for simple transportation use. 2. Uniform order B/L for use when delivery is conditioned upon payment for goods

through a bank or other financial institution. The so-called ‘order’ B/L is used as a financing document in international transportation. It permits the shipper to move goods to its destination under the arrangement that the carrier cannot deliver these goods unless the recipient produces an original copy of the B/L. Thus the shipper is able to finance the transaction through a bank and is able to make sure the consignee does not receive the goods until they are paid for. This also allows the shipper to decide to whom the product will be sold, whilst the goods are in transit. In air transportation the airway bill is not used as a financial document in the same way as the ‘order’ B/L for surface transport. Air shipments are handled differently. Because of the speed of air delivery, it is not practicable to arrange for an original and verifiable airway bill to be placed in the hands of the consignee prior to the good’s arrival at its destination. The shipper may thus consign the goods to a bank at point of destination and instruct the bank not to release the goods until the consignee pays the full amount required (Mahoney, 1985). Many producers/shippers consider the word ‘intermodal’ to mean uniform conditions of carriage and thus limited liability applying throughout the entire transit. There is also the perception that a single responsible authority exists where claims may be filed, irrespective of where loss or damage may have occurred. There has been progress in this respect, particularly where a freight forwarder or through transit operator has contracted with a shipper/producer for the movement of goods. In such an instance, any ensuing claim can be pursued with that one party, and dealt with in line with the express terms of that through operator’s conditions as described in their B/L or transit document Not only do such through transit operators invariably have restricted trading conditions and limits of liability, but their terms will usually incorporate those of the operators used in the overall transit. This will include, for example, the ocean carriers conditions regarding sea transit, road truckers conditions and the trading terms of storage depots, and so on (Mahoney, 1985).

69

9.11 Adequacy of Documentation Contractual arrangements for the carriage of goods by sea. (and, to a lesser extent, intermodal transport) have been discussed in chapter 9.0. However, produce initially requires movement from the farm or its point of origin to the loading port or railhead. Documentation covering pre-transits such as these should be scrutinized carefully to ensure clear definition of responsibilities at this time, given experience that shows that much damage and loss of product in transit can originate during these periods. This is because of the casual nature of transporters at this stage who may have no recognised conditions of carriage or, alternatively, work within conditions from which they can exempt themselves from any and all responsibility. It thus becomes essential to work with reputable transporters and those who work within clearly defined conditions of carriage; transporters who can be relied upon to issue adequate documentation for the transit. If this kind of service is not available, then the transporters used for pre transit movements of goods should be made to issue documentation that will be sufficient to cover the transit. For example, this may include use of delivery notes and/or tally sheets fully recording what has been received and loaded on to which particular vehicle; and, further, include full provision for signatures for receipt. Similarly, where it is likely to be a requirement for goods to be stored pending the next leg of the transport, the storage depots should be carefully vetted before being used. These depots should have the systems of documentation that will cope with receipt, storage and subsequent delivery of goods from their premises. This should include adequate insurance. It is sometimes the case that inland transporters may have little or no insurance coverage and, particularly, no liability insurance to cover storage, and handling into and out of store. In the event of lose or damage to goods, there may be no likelihood of recompense to the owner of the goods (author’s experience). Documentation systems vary. Efficiency is usually improved when the system is computerised, however, paper-based systems continue to remain adequate for many transactions; much depends on the extent of the scale involved. With technical innovation continuing to drive document handling systems, proposed moves towards a ‘paperless-society’ are no less obvious with the handling and transport of goods as they are in other parts of civil society, which is increasingly being managed on the basis of sophisticated computerised systems. The reality of transport and cargo handling is that more and more movements of goods are being shipped with minimum of documentation covering the transit (Todd, 2003). Modern computerised systems are capable of handling a range of different activities throughout transport and goods handling networks; and of doing this simultaneously irrespective of time, location and the number of tasks involved. Automated data management systems are ideally suited to shipping. Whether shipping line, air carrier or road or rail operator, all carriers will have their own in-house system. Typically, most

70

shippers will have systems that will process orders, control stock and inventory, and cater for other services required of their clients (such as those that relate to transport and customs clearance). Most carriers will have standardised B/L or airway bill forms and consignment notes, which will further simplify documentation procedures (Mahoney, 1985).

71

Chapter 10 Security Arrangements

The value of providing sufficient packaging and handling goods with care has already been emphasised. The same holds true of contracting and the need to confirm in law the responsibilities of those concerned with handling and shipping goods should this eventuality arise. Making an appraisal of the security arrangements that apply is also good practice, and helps to reduce the risk of loss or damage or delay with delivery of goods. This is particularly so when goods are being sold and/of delivered to an overseas destination, when they are likely to be subjected to a succession of handling, movements and storage. 10.1 Protection of Goods in Transit Experience demonstrates that although damage can occur at many points during the transit (and especially when transported by different modes), the likelihood of a product being lost or stolen is increased when the goods are readily accessible. This usually occurs at the different points of interchange or storage, transfer or transhipment, when the goods become more accessible. It is essential that steps are taken to minimize risk of damage or loss, and this is done either by direct intervention (on the part of the consignee) or by agents who have been contracted to follow the movement of these goods. These steps should include making a full appraisal of all the premises that will be used for storage during the transit (such as port terminals and similar). The appraisal will help determine the suitability of the premises as a place in which to hold the goods and whether they are sufficiently secure. For example, what kind of security systems are in place – perimeter fences, locked buildings, security guards, day and night patrols and secure points of entry and exit? Further, what kind of documentation is issued on receipt and departure; is it countersigned; are comprehensive records kept, and so on. Specialised independent surveyors or investigators can be appointed to assess security. This can be arranged either independently or in conjunction with insurers, and may result in benefits in the form of reduced insurance premiums. However, it is more likely that if arrangements of this kind are left to the insurers, the costs of these services will eventually be passed on to the client in the form higher rates for goods covered by transit insurance. Many storage or port facilities will not have their own liability insurance cover or, if they do, cover will be limited. It follows that in the event of casualty or loss or damage to goods whilst in their custody, the likelihood of adequately reimbursed can be remote. Cargo insurers recognise this and adjust the costs of their insurance premiums accordingly. 10.1.1: Palletisation and Containerisation One clear advantage of shipping goods in containers is reduced risk of loss and/or damage to goods, but this is not always the case (see Plate 19). Containers, however, help

72

prevent casual theft or pilferage, which was commonplace in earlier times when goods were shipped in lose and/or more exposed mode. Not that containers are not accessible to theft, for there are a substantial number of instances where the seals on containers are broken and/or the container doors are removed (without the door seal being broken) and goods are stolen (authors experience). Thefts of this kind can only occur when there is adequate time and space available (and is typically an indication of lack of security at place of storage). Breaches and thefts of this kind are always land-based.

Plate 19. Damaged container with buckled walls as the result of internal pressure from a shift in cargo, and broken doors. (Mahoney, 1985)

With tight stowage of containers on board ocean vessels and special security procedures followed (whereby containers, for example, are stowed on ships with their doors facing each other) they are all but inaccessible. This is not the case with land haulage, where the containers are loaded separately on rail or road trucks that have to negotiate bridges, tunnels, overhead gantries and similar infrastructure. It is the same with land storage - doors are always exposed, and it follows that the contents may become vulnerable to theft. Containers become damaged in use from accidental or robust handling or from severe weather, if at sea. At all points of handling and particularly when emptying or filling, they should be inspected for damage. If there are holes in the container and particularly in the roof then the contents are susceptible to damage. Containers are particularly exposed when in transit by sea, for many will be loaded above the deck on the containership. During rainstorms or during heavy seas when spray can easily wash across the ship, containers with broken or damage plate will leak; and the contents may spoil. Outside storage on land can be equally damaging if subject to heavy rains – particularly in the tropics. And issues of leakage are not simply based on damaged cladding, but occur when

73

the seals on the doors are damaged or the doors do not align correctly (usually from damage occurred during handling). Containers can quickly be checked for damage and separated out for repair and/or disposal (depending on the extent of the damage and likely costs). Routine checking is essential. One of the easiest methods is to check for light ingression from inside a closed container. Increasingly stringent checks should be carried out on specialised containers, for example, refrigerated units to make certain that the reefer machinery on the container is functioning correctly and, importantly, that the unit is recording the correct temperature. It is not unusual to find wide variance between the recorded and actual temperatures inside refrigerated containers (author’s experience). Anomalies such as this result in the partial or complete deterioration and destruction of the product being transported. 10.2 Hazards and Risks to Security of Goods and Safety for People Security arrangements are only as good as the people who operate them – whether at the premises where the goods are stored or in transit. Staff responsible for security need to be vetted, with consideration given to how to win and maintain staff loyalty. Bonuses can be paid, for example, during extended periods when theft is minimal or absent. The safety of staff remains paramount; whether working with goods handling equipment or working in and around storage depots, yards and ports or working in transit. This extends to basic education and training including re-training and upgrading on a routine basis, and also to the repair and maintenance required of equipment and fixtures in the workplace. This extends to equipment used at the point of origin of the product (e.g. farm, factory or export depot). The introduction and increased use of palletisation and containerisation has meant that most port facilities have specialised equipment for the handling unitised freight of this kind. Many other points of transit, however, and especially points of origin or at road transporters premises, have no equipment of this kind. Trying to handle specialized equipment with general purpose lifters, trucks or tractors can be dangerous and accidents and personal injury can happen. It is not uncommon to see fully loaded containers being lifted and handled by equipment that is totally inadequate for this purpose according to UNCTAD (1994). Both people and goods can be damaged. Wherever people are working in and around heavy equipment there is need to wear protective clothing – boots, helmets, safety glasses, etc. In poorly managed facilities this is not always the case. In developing countries laws designed to protect manual workers are rarely enforced. 10.3 Forms of Protection ‘Pilferage is a calamity in the transport business,’ according to van den Burg (1969). Fail to deliver the goods and neither trade nor client nor transporters stands to gain – everyone loses. Insurance may pay for the lost or damaged cargo, but insurers cannot replace customers - even if they are fortunate enough to recoup all the outlays in claims from the

74

underwriters. Factors such as these raise issues for the steps that should be followed to protect goods in transit, those that are damaged or those that are lost entirely. Stowing intermodal cargo in containers is an important means of preventing loss, although the cargo has to be able to withstand the rigours and jolts associated with the modes on which it moves. The rolling and pitching movement of an ocean vessel at sea, for example, is entirely different from the starting and stopping movements of a train or truck. Inermodal cargo may be subjected to both types of movement, and an appropriate method must be used to secure the produce inside the container and prevent movement (as described earlier in section 7.4). Sealing the doors of the container securely will help prevent ingression of rain (or vermin). There are many different types of seal in commercial use and the design of doors and seals is continually improving according to van den Burg (1969). 10.4 Insurance Issues Cargo insurers have followed the development of containerisation and similar modern methods of handling and shipping goods, and adapted insurance cover to suit. Proper storage is essential whatever the methods and systems used, with insurance adapting to the experience of the claims that arise from goods and handling equipment that may be damaged. Historically, insurers have taken the view that break-bulk stowage of cargo on board ship by specialist stevedores has been more appropriate to the motion of the seas, but this is not the case with containers where goods are loaded and held in place by the rigid steel walls of the container to prevent movement. Workers loading intermodal containers at inland depots or at supplier’s premises will probably have no experience of open hold storage techniques and little need for it (Mahoney, 1985).

75

Chapter 11 Recommended Goods Handling Practices

Improvements can always be made to goods handling practices, for example, when moving produce by road the establishment of large and competent road transport operators will normally be more efficient than a multitude of smaller less well-serviced operators. Competition is essential, but encouraging strong road transport organizations and/or mergers within the industry provides a measure of strength and resilience. It also provides a voice in support of the transport industry that will be heard by local and national legislators (UNCTAD, 1994). Larger groups enable operations to be streamlined with improved scheduling of services and tracking, for example. There is greater efficiency in movement of goods and, ultimately, faster delivery to the client. Issues of liability will apply. Standards of liability should be separated from other measures taken. In addition, legislation should be adopted that prescribes uniform limits of liability, limits for filing claims and other reasonable standards. This holds for all modes of freight transportation. From a practical standpoint, pre-shipment inspection of cargo is recommended. Buyers will often arrange a pre-shipment inspection with the aim of providing reassurance to shippers before payments are made or this may be a requirement of a Letter of Credit. In reality, inspections of this kind should be used more frequently and particularly when the goods in question are prone to damage or difficult to stow and/or when any damage sustained is likely to be extremely costly to all parties concerned (Spencer, 2001). 11.1 Shipper’s Associations Shipper’s associations provide permission to their members to act collectively when moving traffic. All members of the association may be involved with a particular line of commodities or they may be shipping a variety of products. Typically there will be a common destination or hub from which distribution will then be made. Arrangements of this kind provide similar facilities and/or services to independent freight forwarders and consolidators. The benefits that result includes more expertise and better facilities available (for example, with improved electronic database, data handling, recording and information exchange) when compared to the different members acting separately; the more efficient the operation the lower the costs. An additional advantage is the ability of the association to negotiate reduced carriage rates. Factors such as this help contribute to lower operating and lower capital investment costs (UNCTAD, 1994).

76

Chapter 12 Fundamentals of Freight Handling

The premise that ‘unity is strength’ is fundamental to the context of freight handling as described in this report; and it is the single-most important message available when encouraging the development of domestic and international trading. In order to maximise efficiency and competitiveness in the business of moving goods from one point to another, it is essential that the many different parties involved synchronise their work with one another. Cooperation is fundamental to this process. The main parties are the producers, those involved in the transport and handling of goods, the appropriate government departments who support them and the shippers. Regular forums attended by representatives of those involved with the production- transport process encourage the concept of cooperation by helping the different players to share knowledge, to discuss experience and to highlight opportunities and potential constraints; and then to work together to identify solutions or better ways of doing things. This benefits everyone in the network of transport and freight businesses. The formation of associations of producers will better empower these people such that better deals are brokered for the movement of their goods, despite a position of relative weakness when standing as individuals within national or international forums. This extends to the negotiation of improved rates for the transport of goods with the major carriers, most of whom will be foreign. Data tracking is a relatively recent feature of the transport scene. With international business placing greater reliance on the electronic movement of information (and thus shifting away from reliance on paper records), investment in the information technology systems required will be essential to provide that competitive edge to those fortunate enough to be able to afford these kinds of investments. Further, the modernisation of the different transport modes, and the application of laws and regulations will be required to enable producers, traders and transporters to remain competitive within both domestic and international trade. There is risk with failure to keep abreast of innovation and change, and with dependence upon systems that are outdated and no longer supported. Herein are the challenges for producers in developing countries as international trading continues to be dominated by the industrialized countries and trading network and routes by movement of goods between the three main trading blocs.

77

13.0 References Barron, M. (2003). The Nile River. Available at: www.mbarron.net/nile. BIMCO. (1994). Charter Party Draft. The Baltic and International Maritime Council, Copenhagen, Denmark. Branch, A.E. (1977). The Elements of Shipping. Chapman & Hall, Ltd., London, UK. Branch, A.E. (1986). Elements of Port Operation and Management. Chapman & Hall Ltd., London, UK. Chintowa, P. (1998). Transport – East Africa: Floods Destroy Vital Rail and Road Links. News report, Inter Press Service (IPS) 09 February. Available at: www.oneworld.org. CNN. (1999). Navigating Kenya’s Roads becomes a Perilous Journey. News report, CNN. 06 October. Available at: www.cnn.com. Crossley, P., Ellis, S. & Stallabrass, M. (1980s). Handbook of Rural Transport Vehicles in Developing Countries. Silsoe College, Cranfield University & Transport Research Laboratory. Silsoe College, Cranfield University, Milton Keynes, UK. (Unpublished; date unrecorded). Crossley, P. (2003). Personal Communication. Davidscooking.com. (2003). A World of Food: Banana Leaves. Available at: www.davidscooking.com. DHL. (2003). History of the New DHL. Available at: www.dhl.com. Die Republikein. (2003). Commercial Trade Flows again on Congo River. News report, Die Republikien. 25 July. Available at: :www.republikein.com.na. FAO. (2002). A Thorn on Every Rose for Kenya’s Flower Industry. Food and Agriculture Organisation, Rome, Italy. Available at: www.fao.org. FAO. (2003). Food and Agriculture Organisation. Available at: www.fao.org. FedEx. (2003). FedEx Express Overview. Available at: www.fedex.com. GDV. (2000). Notes on Stowage and Securing of Various Goods. Transport Information Service, Gesamtverband der Deutschen Versicherungswirtschaft e.V. Available at: www.tis-gdv.de.

78

HSE. (2003). Carriage of Dangerous Goods by Road and Rail – International Agreements. Health & Safety Executive, London, UK. Available at: www.hse.gov.uk. ICC. (1990). Incoterms 1990 - Critical Points in International Transport. International Chamber of Commerce, South Africa Branch. INBAR (2003). Bamboo Facts. International Network for Bamboo and Rattan. Available at: www.inbar.int/bamboo. ITDG. (2003). Packaging Materials for Foods. Technical Brief. Intermediate Technology Development Group, Warwickshire, UK. KählerPrinz. (2002). Survey Report on Print Cartridges and Toner. Report. Kähler & Prinz GmbH, Hamburg, Germany. (Unpublished). Mahoney, J.H. (1985). Intermodal Freight Transportation. Eno Foundation for Transportation Inc., Connecticut, USA. Metaxas, B.N. (1971). Economies of Tramp Shipping. Athlone Press, London, UK. Millard, T. (2002). Survey Report on Wetted Cartons Pedestal Fans. Report. Trevor Millard & Associates, Natal, South Africa. (Unpublished). Musoke, D. (2000). Traders Want ‘Uganda Area’ at Mombasa. East African. Newspaper report. 27 November. Available at: www.nationaudio.com/News/EastAfrican. Muluneh, W. (2003). Spirit of Good Neighbourliness. Available at: www.ethioembassy.org.uk. NEDO. (1973). Packing for Profit – Economic Advantages of Unitising Break-bulk Cargo. Volume 1. National Economic Development Office, London, UK. NEPIA. (1992). The Hamburg Rules. Circular no. 20. North of England P&I Association Ltd. September. Available at: www.nepia.com. Ngunjiri, P. (1998). Kenya: Global Demand for Flower Encourages Horticultural Farming. News Report, Inter Press Service (IPS). 26June. Available at: www.oneworld.org. OUP. (1978). The New Oxford Illustrated Dictionary. Systems Publications Ltd., Oxford University Press, Bay Books Pty Ltd. P&O Nedlloyd. (2003). Cargo Care. P & O Nedlloyd Ltd. Available at: www.ponl.com. Pesticides News. (2003). Fair Trade for Kenya’s Flowers. Report. PAN International. Available at: www.pan-uk.org/pestnews.

79

Poton. (2003). Jute – Pommes de Terre. Available at: www.poton.nl. Reny, O. (1995). Informações Gerais sobre o sisal - Sisal híbrido. 1148, Monteiro-PB, 1995. Available at: www.cnpa.embrapa.br/sisalinfo.html. Spencer, C.F. (2001). The Carriage of Goods by Road and Related Insurance Issues. Seminar 18 March. C.F. Spencer & Co Ltd., Somerset, UK. SMUA. (2003). Safe Cargo Stowage and Securing. The Steamship Mutual Underwriting Association (Bermuda) Ltd. Available at: www.videotel.co.uk/Pack/safe_cargo.htm. Tanzania National Website. (2003). Tanzania National Website – Transport. Website. Available at: www.tanzania.go.tz/transport. Tetra Pak. (2003). Tetra Pak – Protects What’s Good. Marketing photographs and brochures. Tetra Pak International, Lund, Sweden. THA. (2000). Tanzania Harbours Authority – Port of Dar es Salaam. Available at: www.bandari.com/dar. Todd, P. (2003). Dematerialisation of Shipping Documents. Seminar. (Unpublished). UN. (1978). Convention on the Contract for the International Carriage of Goods by Road (CMR). Geneva 19 May 1956, Amended by Protocol to the CMR Geneva 05 July 1978. United Nations. Available at: www.un.org. United Nations. (2003). United Nations General Conditions for Aircraft Charter Agreements. Website. Available at: www.un.org. UNCTAD. (1994). Draft Guidelines on Key Sectors for Trade Efficiency Transport. United Nations Conference on Trade and Development. Report UNCTAD Secretariat. Ad Hoc Working Group on Trade Efficiency. Third Session. Geneva, Switzerland, May. Van den Burg, G. (1969). Containerisation - a Modern Transport System, Hutchinson & Co. (Publishers) Ltd., London, UK. Walters, S. (1998). Port Marketing – 2. 3. 4 LASH Vessels. Universiteit Gent, Belgium. Available at: www.allserv.rug.ac.be. Walusimbi, T. (2000). New Container Depots Spring up in Uganda. Report. East African. Newspaper report, 27 November. Available at: www.nationaudio.com/News/EastAfrican.

80

Whitaker, A. (2002) Survey Report on Transport of Digital Cameras and Kits. Report. Andrew Whitaker & Co., Johannesburg, South Africa. (Unpublished). Xingang Logistic. (2003). Booking Notes. Xingang Logistic Freight Forwarder, China. Available at: www.xingang.com. Zane, D. (2001). Why Road Accidents Happen. BBC News Report, Thursday 05 April. Available at: www.news.bbc.c.uk. 1UPInfoTM .(2003). Country Study and Guide (DRC/Zaire) - Transportation and Telecommunications. Available at: www.1upinfo.com.

81

Annex A1. Example Cargo Manifest

AB AIRLINES CARGO MANIFEST ******************

PAGE1 DATE: 25/10/03 TIME: 10.15.12

FILE NO: 123456 FINAL DESTINATION JOHANNESBURG

AIRCRAFT 747-F FLIGHT NO: ABC-123 OINT OF LOADING ACCRA POINT OF UNLOAD: JOHANNESBURG CONSIGNEE: MAWB: 123-4567-8900

FROM NUMBER OF PIECES

NATURE OF GOODS AND SHIPPER

GROSS WEIGHT

CONSIGNEE

987654

AMS

125

A.B EQUIPMENT/ ACC. XXXX EUROPE THE NETHERLANDS

1254.4

AB EQUIPMENT, AB ROAD AMSTERDAM

123456 LHR 4 A.B EQUIPMENT/ ACC. XXXX EUROPE THE NETHERLANDS

45.8 AB EQUIPMENT, AB ROAD AMSTERDAM

456789 CPT 5 A.B EQUIPMENT/ ACC. XXXX EUROPE THE NETHERLANDS

1234.1 AB EQUIPMENT, AB ROAD AMSTERDAM

654321 EIN 2 A.B EQUIPMENT/ ACC. XXXX EUROPE THE NETHERLANDS

198.4 AB EQUIPMENT, AB ROAD AMSTERDAM

998877 MST 1 A.B EQUIPMENT/ ACC. XXXX EUROPE THE NETHERLANDS

236 AB EQUIPMENT, AB ROAD AMSTERDAM

445566 STN 7 A.B EQUIPMENT/ ACC. XXXX EUROPE THE NETHERLANDS

72.9 AB EQUIPMENT, AB ROAD AMSTERDAM

82

Annex A2. Example Packing List

Packing List Consignee: Date: Waybill No. B/L No. Invoice No. No. of Boxes

Mariner 12/04/2002 098-4069-3211 48931 15

Box no. Weight (kg) Fish type Grade 1

12.4 FD 2+

2

12.6 FH -2

3

18.9 JG 4+

4

45.7 DS 3+

5

35.7 JH 4+

6

15.8 TR -3

7

47.6 KJ 6+

8

25.9 NB 1+

9

68.4 DF -1

10

56.7 EH 4+

11

12.2 KI 2+

12

11.4 LD -1

13

55.3 CN 2+

14

68.4 SE 8+

15

75.2 HY 2+