Module 3: Transport Operations Participant 3-1 Transport Operations Overview This module covers the following topics: Transport in the SECI region Transport and its basic elements Legal, social and technical views of the transport sector Applications on transit passing Objectives By the end of this module, you will be able to: Identify the problems regarding transport and trade in the SECI region and incentives proposed to overcome these problems Discuss the global road transport environment Be aware of the legislation governing road transport Explain the fiscal aspects of road transport Describe technical and safety regulations governing road transport Discuss the social aspects of the industry Identify different visa regimes, charges and taxes Describe the special forms of transport
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Module 3: Transport Operations Participant
3-1
Transport Operations
Overview
This module covers the following topics:
���� Transport in the SECI region
���� Transport and its basic elements
���� Legal, social and technical views of the transport sector
���� Applications on transit passing
Objectives
By the end of this module, you will be able to:
���� Identify the problems regarding transport and trade in the SECI
region and incentives proposed to overcome these problems
���� Discuss the global road transport environment
���� Be aware of the legislation governing road transport
���� Explain the fiscal aspects of road transport
���� Describe technical and safety regulations governing road transport
���� Discuss the social aspects of the industry
���� Identify different visa regimes, charges and taxes
���� Describe the special forms of transport
Module 3: Transport Operations Participant
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Scenario: A Strategic Alliance
Euro-Ex is a European logistics and transport company. The company is a
leading provider of global, end-to-end integrated logistics service products to select
high value industries. Euro-Ex has announced the formation of a strategic alliance
with EXL Logistics, a leading corporation in Southeast Europe.
EXL Logistics with its headquarters in Romania specializes in transportation
and distribution services throughout Europe. The EXL group incorporates a number
of Romanian trading and service businesses such as marketing, distribution, aviation
and shipping services.
"The purpose of the alliance between these two companies is to create a
seamless, integrated supply chain management capability in and between the Europe
and SECI region," stated Adrian, Vice President Global Strategic Marketing. "Euro-Ex
is a leader in value-added logistics to the technology marketplace in Europe, with a
significant number of customers requiring global supply chain solutions."
"Euro-Ex and EXL, through their combined transportation, distribution and IT
resources, are in a unique position to meet the fast-paced needs of global high tech
industries.
What difficulties are these two companies likely to face in the SECI region?
Module 3: Transport Operations Participant
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Introduction
The primary role of a carrier is to deliver goods to a buyer so that the
goods arrive in the same condition as when they left. In order to execute this
delivery correctly, legally and within the agreed time, international transporters
have to carry out these transactions according to the freight, unloading and
transit legislation required in the specific country they are trading with.
There are two main groupings of legislation, which are: transportation
and customs. These cover the regulation of vehicles, vehicle drivers, the load
and importers and exporters.
The transportation and customs legislation regarding transportation in the
SECI area varies from country to country. A lack of harmonized legislation is
one of the main reasons effectiveness is lacking in the transport industry in this
region.
The implementation of standardization is crucial for the development of
the commercial and transportation fields in this region. When preparing to set
up a program of harmonization, the EC Directives and/or UN conventions that
are used in the 15 EC member countries, and those, which they are currently
trying to implement in the 13 EC candidate countries, are seen as important
guidelines that will provide harmony in the transportation and commercial
sectors of the region.
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International Road Transport
Transportation activities and facilities have a tremendous environmental,
social and economic impact. Almost six million people work directly for the
trucking industry in Europe. These are drivers, logistics experts, dispatchers,
and operations managers and so on. In addition, another 3.5 million earn their
living in directly related industries, such as truck manufacturing, repairing,
selling, leasing and insuring.
International transport generally implies the use of various transport links
(interfaces and modes), with each link corresponding to a transfer, storage or
transport operation either in the country of origin, in a transit country, or in the
country of final destination.
The variety of cultures, languages and commercial practices at both ends
of a trade transaction create problems in operations. Therefore, it is important to
establish rules of responsibilities for the involved parties in order to provide safe
and efficient trade transactions. A classical categorization of the transport
industry in international transport systems is shown in the figure below:
The Three basic Categories in the Transportation Industry:
Freight Forwarders/ brokers
Operators of transports /freight carriers
Owners /of means of transportation, of terminals, equipment etc.
Figure 1: The Three Basic Categories in the Transportation Industry
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“Securing balanced flows of cargo to
reduce empty return journeys" and
"establishing a network of electronic
communications and data processing
equipment" are the most important
services of forwarders.
Forwarders do...
���� Forwarders/brokers, that prepare documentation for export and
import (like forwarders and brokers)
���� Owners of the means of transportation/equipment/facilities
���� Operators of the transports/freight carriers ( Hertz,1993, p.28)
Freight Forwarding
Freight forwarding is all about the smooth flow of international trade. The
freight forwarder is the party who ensures that internationally traded goods
move from point of origin to point of destination to arrive:
���� At the right place,
���� At the right time,
���� In good order and condition,
���� At the most economic cost.
Foreign (export) freight forwarders, also known as consolidators, have two
principal functions. They are concerned with:
���� The forwarding of an export shipment from the point of origin to the
ultimate destination in some foreign market
���� The other is concerned with the securing of space on transportation
carriers
The services that foreign freight
forwarders perform in order to carry out these
basic functions are many. Although a forwarder
usually performs all the required physical
distribution services from the time an order is
placed until the shipment is delivered at the
foreign destination, perhaps a forwarder’s major
Discuss the role of transporters and forwarders in the transport process.
Module 3: Transport Operations Participant
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contribution lies in the organization of shipment to the destination port, booking
a space on the carrier, and arranging insurance and documentation for
international freight movements. In addition, forwarders may also offer advice
on markets, government regulations and potential problems (Albaum, p.432).
Freight forwarders operate as agents; go betweens for importers/exporters
and carriers. They can secure special deals because both surface and air
carriers give volume discounts to customers shipping large quantities of freight
at one time.
The role of freight forwarders and multi-modal transport operators (MTOs)
is vital in providing third-party logistics. Their success depends very much on
the competitiveness and cost-effectiveness of the services they provide. The
leading players in this field have got there and profited by using information
systems for the automation of documentation and cargo tracking, global
geographical coverage and the services of first-class carriers.
The growing volumes of ocean, inland and
air freight traffic, handled by freight forwarders
and MTOs, along with the rising demand for
global logistic services, enable the leading
companies to become even more dominant in
the market but may result in the demise of many
smaller forwarding companies, especially in
developing countries and countries in transition.
However, the quality of services provided
always plays a major role in the competitive
environment: superior service provides for
greater profitability rather than chasing volumes
at low prices (UNCTAD, 1999, p.6).
Air/Ocean-Import/Export
Assistance
Determine needs
Rate negotiations
Information of foreign regulations
Book space on vessels
Arrange inland transportation
Prepare documentation
Carrier selection-price, transit times
Arrange cargo insurance
Bank documents
Provide shipment information
Assist with claims-put carriers on
notice
Basic Functions of Forwarders
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An international freight forwarder is:
���� A travel agent for products
���� Familiar with the import rules and regulations of foreign countries,
methods of shipping, government export regulations, and the
documents associated with foreign trade
���� Specialists in international shipping arrangements for goods, whether
by water, air, truck, or rail; international or within a country
���� Normally paid by receiving a discount or a fee from the firm that does
the actual shipping ( just like a travel agent )
���� Usually required to prepare the necessary documentation for the
transaction
Own Account Transport
According to the EEC Directive of 23 July 1962, intra-community own-
account transport is defined as follows. The transportation of goods by motor
vehicle is subject to the following conditions:
Table 1: Conditions for the Transportation of Goods
���� The goods transported must belong to the company or have been sold, bought,
rented, produced, extracted, transformed or repaired by it, or given to it
���� The carriage must be used to take goods to the company premises, to send them
from the company premises, to move them, either within the company premises,
or outside the company premises
���� The motor vehicles used for this carriage must be driven by members of the
company’s own staff
���� The vehicles transporting the goods must belong to the company or have been
bought by it on deferred terms, or hired provided that in the latter case they meet
the conditions of Council Directive 84/67 on the use of vehicles hired without
drivers for the carriage of goods by road
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Hired Vehicles
A hired vehicle is any vehicle which is leased out to a
company in return for a payment and for a predetermined
period so that the specified person/company can use that
vehicle for the carriage of goods.
Vehicles can be hired in EU member states provided that:
���� The vehicle is registered or complies with the laws in the EU Member
State of hiring
���� The contract relates only to the hiring of a vehicle without a driver
���� The hired vehicle is only to be used by the person/company that hire
the vehicle
���� The hired vehicle is driven by personnel of the person/company using
it
If the driver is not the person hiring the
vehicle, the driver's employment contract or a
certified extract from that contract giving in
particular the name of employer, the name of the
employee and the date and duration of the
employment contract or a recent pay slip should
be given.
Transport for Hire or Reward
The EEC Council Regulation 881/92 of 26 March 1992, states that
vehicles used for hire or reward must have an operating certificate (Community
license) with the exception of postal transport, transport vehicles that are
damaged or have broken down, transport of goods by vehicles whose
authorized payload does not exceed 3.5 tones, transport of medicinal products
As the application in EU directive
84/647/EEC states, the hiring period
cannot be less than two months.
Hiring Period
Module 3: Transport Operations Participant
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or medical equipment, transport of emergency equipment) which can be freely
used. There are grounds for adding rail–road transport to this list.
Road Transport in SECI Region
Although a platform of common application in the transport sector has
been formed within the EU, the same platform does not exist in the SECI
region. In this region, there are different laws, regulations and different
applications of standards regarding land transport. One of the most important
differences is the Cabotage.
The Cabotage is the carriage of goods by a transport vehicle that is
registered in a country e.g. Romania but being used in another country e.g.
Bulgaria. Cabotage operations should be a long-term target among SECI
countries, below information is provided on how cabotage has been
implemented in the EU.
A cabotage authorization is issued in the name of the carrier. That carrier
may not transfer it to a third party. Each cabotage authorization may be used by
only one vehicle at a time.
The vehicle is hired by the carrier in the Member State of establishment to
carry out cabotage operations. However, the non-resident carrier may, in order
to complete a cabotage operation interrupted because of a breakdown or an
accident, hire a vehicle in the host Member State under the same conditions as
resident carriers.
The cabotage authorization and hiring contract, if any, must stay with the
vehicle. The cabotage authorization must be produced whenever requested by
inspecting officers.
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Cabotage transport operations are subject to the laws, regulations and
administrative provisions in force in the host Member State. They cover the
following areas:
Table 2: Areas of Cabotage in Transport Operation
Vehicles used to carry out cabotage operations must meet the general
requirements set for vehicles used in international transport.
Role of the Carrier in Import and Export
The first stage is the manufacture and packaging of goods for carriage.
Packaging is important for all cargo and there are many considerations to be
kept in mind, particularly with regard to the transport to be used.
The choice of the most cost-effective route/transport determines the type
of packing. Packing can be done by a forwarding agent who arranges for the
goods to be packed by a professional export packer. Or when packing is done
in-house, packers should be kept up-to-date with the latest developments and
the whole concept of packing as part of the marketing and distribution process
should be implemented.
The next stage is to make the necessary bookings with the carrier either
directly or through a forwarding agent. Details for the various modes are as
follows:
���� Rates and conditions governing the transport contract
���� Weights and dimensions of road vehicles; the carriage of certain categories of
goods, in particular dangerous goods, perishable foodstuffs, live animals
���� Driving and rest time
���� Value added tax (VAT) on transport services
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Stowage
When delivering by road the aim is to fill the truck’s entire cubic capacity,
while staying within the permitted load line regulations that are appropriate for
the particular journey. A balance must be found between payload and the
truck’s other weight requirements of fuel, water and stores. Extra payload may
have to be sacrificed in order to load cheaper fuel or vice versa.
The appropriate load line will vary from one route to another, since it
reflects the wind and road conditions to be expected in certain areas in certain
seasons (Bugg, Whitehead, 1984, p.206).
Transport Routes
There are a wide variety of routes transporters can use, each with their
own physical limitations, and advantages or disadvantages from a least total
distribution cost point of view. Many of these routes enable a consignment to be
sent as a unit load from door to door on a road network, which offers a secure
and speedy transit. The choice of route should take advantage of the best
features for that particular consignment at that particular time.
What are the most important factors to take into consideration when
determining shipment routes in the SECI region?
Module 3: Transport Operations Participant
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The main factors to be considered when choosing the most appropriate
route/mode for a consignment are as follows:
���� The Nature of the Goods and the Overall Quantity of the Consign-
ment
The nature of the goods can affect the choice of transport in a variety of
ways. Some goods are too wide. Others are too long or too heavy to be sent by
road.
Weight is of great importance as well, especially if goods are to travel by
air, while with regard to road transportation there are limitations on all
dimensions including the overall weight and the axle weights. The
weight/measurement ratio is important in all forms of transport and tends to be
reflected in the freight rate composition, but weight is more important with some
Route Choosing Factors
Nature of Goods
Time Factor
Alternative Routes
Contractual Obligations
Strikes Wars
Climatic Factors
Limitations of the Actual
Mode
Limitations of the
Termini
Figure 2: Factors Affecting Route Selection
Module 3: Transport Operations Participant
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consignments. Indivisible heavy loads not only have a weight problem as
regards to transport but frequently also present dimensional problems of length,
beam or height, any one of which can cause difficulties, particularly in overland
movements. With all such problems any inland movement should be passed on
to specialist heavy lift haulers with low-loaders.
���� The time factor; that is urgency and the season
The time factor affects the choice of a transport route. The cost
advantages of fast transit lie in reduced interest on capital tied-up during transit
and also lower charges, quotas and limitations. Speedier transit may mean less
warehousing at the final destination. If the speed of transit is increased
minimum stock levels can be reduced, saving warehouse space and inventory
costs such as depreciation and finance.
���� The alternative scheduled routes/modes available to that
destination and their frequency
Route availability and the frequency of various services are changing
rapidly as new services begin operations to increased destinations; the whole
concept of comparative total distribution costs has come about due to the
growing number of alternative routes/ modes available.
The advent of ro/ro operations has seen an increase in traffic using minor
ports instead of older major ports. The method combines the advantages of a
short sea crossing, which often has smaller tides, with road and therefore
provides greater flexibility and time saving.
What problems make shipping routes in the Balkans attractive as a means
of transport?
Module 3: Transport Operations Participant
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���� Contractual obligations imposed by the importer's Letter of
Credit or the shipper's own contract with a party
An agent must always consider the seller’s wishes as regards route, and
must fulfill his/her contractual obligations with a freight contact.
There is a need to comply with the requirements set down in the Letter of
Credit. For example an agent, in order to meet his/her customer's urgent
request, forwarded a client’s goods by road instead of sea, and he/she failed to
advise the bank of this change so that the Letter of Credit could be changed. As
a result the bank refused to accept an Air Waybill instead of a Bill of Lading and
the transaction was delayed while the Letter of Credit was amended.
���� Strikes, wars and climatic factors
Possible interruptions to transit, such as major strikes, civil wars, political
embargoes and temperature changes must also be taken into consideration.
���� Limitations of the actual mode, including their degree of
unitization, facility for grouping, and their varying costs
Basically, the more valuable the cargo is, the greater the ability to pass on
higher freight charges to the final consumer, and in the case of liner freight
tariffs this is reflected in the higher freight rate. It must be remembered that with
such cargo the speedier the transit the greater the saving, as less interest is
paid on capital tied up in transit and there is a lower insurance premium. The
latter in particular reflects the value and the time the goods are at risk.
With high value cargo security is also important and the exporter must
select a system of transport with the smallest number of intermediate handlings,
possibly with a form of strong room stowage. In certain cases specialist security
Module 3: Transport Operations Participant
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services may be used, and where high value cargo is subject to special security
measures the cost is always reflected in the freight rate.
���� Limitations of the termini, including efficiency of agents
The various physical, commercial and other factors influencing a port’s
development might be appropriate here since most cargo is charged at the
same freight rate to any particular destination, and there are considerable
quantity discounts to be earned.
Role of Logistics in Road Transport
Logistics became a topic for discussion in
the business world in the 1960s and 1970s and
began its rise to prominence in the 1980s. In the
1990s, logistics began to be discussed as a
major competitive weapon and in the future the
creation of streamlined, flexible and effective
supply and value chains will define the success
or failure of organizations and perhaps even
entire business areas.
Logistics is the process which seeks to provide for the management and
co-ordination of all activities within the supply chain from sourcing and
acquisition, from production where appropriate, and through to distribution
channels to the customer. The goal of logistics is the creation of a competitive
advantage through the simultaneous achievement of high customer service
levels, optimum investment and value for money.
CLM says that “Logistics is the part of
the supply chain process that plans,
implements, and controls the efficient,
effective flow and storage of goods,
services, and related information from
the point of origin to the point of
consumption in order to meet
customers' requirements”.
The Council of Logistics Management
How do logistics differ from transport?
Module 3: Transport Operations Participant
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Shipping, transport and distribution can be grouped under one heading:
Logistics. Logistics planning involves not only the transportation side of
distribution but also provides the “place element” in the marketing mix by
helping to ensure that products arrive in sufficient quantities in saleable
condition at points where the consumer can most easily buy them. Thus
logistics management includes forecasting demand and matching supply to
meet that demand though procurement of materials, production scheduling,
inventory management, order processing, warehousing and transportation
(Quayle&Jones,1993, p.85).
In planning transportation the problems can be numerous; hidden costs
can be concealed, such as the costs of being out-of-stock which results in a
loss in business or delays over insurance claims.
Logistics, the management of flows, is first and foremost a provider of
service (UNCTAD, 1998, p.4). To maintain or improve its share of the market,
an enterprise must offer the elements below:
Right Product
Right Time
Right Place
Competitive Price
Manufacturing creates,
and trading locates goods
which result in customer
satisfaction.
Storage holds these
goods until they are
needed.
Transportation brings
them to where they are
needed.
Marketing results in the
transfer of the goods to
the person to whom
they are useful.
Figure 3: Important Elements in Logistics
Module 3: Transport Operations Participant
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Case Study: Something is going Wrong…
The logistics firm X was experienced in the
market, and had a big market share. But their market
shares declined day by day. The employees
complained of insufficient salaries. In addition, the
insensitivity of the management increased the
problems. The employees’ reluctance had been
reflected in their jobs and the customers’ complaints
had started to rise.
Besides, number of the fired employees had started to rise as well. Newly
employed people were starting to complain of the same things some time later and
were saying that they worked hard but earned not much. The result always affected
customer satisfaction. For, the goods were not delivered on time. Besides, higher
prices due to the company’s self-confidence had caused the fast loss of customers.
The administration met to discuss the situation when the things went really
bad. The customers’ complaints were taken up carefully, and the result was against
the establishment objectives of a logistics firm. The company had lost its basic
elements.
1. What can be these basic elements?
2. What changes can the company make to win back its prestige?
Module 3: Transport Operations Participant
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This implies that the following four basic functions must be correctly
performed:
In recent years, three dominant and interrelated themes have changed the
solution to the logistics equation in enterprises around the world (UNCTAD,
1998, p.7-8). These are:
���� Globalization
���� Information Technologies
���� Supply Chain
Figure 4: Changes Effecting Logistics
Information Technologies
Supply Chain
Globalization
Logistics systems are increasingly challenged to reduce
costs and increase customer service while enterprises are
expanding their international operations in search of new markets,
new materials, and sourcing, and new manufacturing sites.
Newer, faster, and cheaper computer hardware, software
and telecommunications technology allow aggressive
enterprises to substitute inexpensive information assets for
expensive inventory, transportation and other traditional
logistics costs.
As enterprises strive to build closer working
relationships with key suppliers and key customers, well-
integrated logistics processes are key components of
successful supply chain management.
���� Provision of, or access to the goods
���� Storage of the goods
���� Transporting the goods
���� Marketing the goods.
Table 3: The Functions of Logistics
What recent developments have affected logistic services?
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Transport Logistics
Transport logistics encompass all steps in the transfer of freight whether it
is modal or multi-modal. It also includes the interaction between the various
institutions intervening in international freight transport, the operators
transporting it, and the transport intermediaries providing brokerage services
between freight transfers.
Consequently, the customs administrators, insurance companies, banks,
transport operators, terminal operators, shipment operators, private carriers,
and intermediaries are considered as contributing to transport logistics (Castro,
1993, p.9).
Transportation Costs
Most products are sold in highly competitive markets therefore in order to
realize savings you must be able to control inventory (Roberts, 1999, p.16). This
can be done by:
Table 4: Inventory Control
���� Forecasting demand
���� Controlling transport
���� Tracing delivery
���� Managing order entry
���� Monitoring inventory
���� Managing the process
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To minimize total logistics costs a hierarchy of decisions must be made.
Total Logistics Cost (TLC) can be equated as the sum of the following:
It is very important to estimate how much you are spending on a total
logistics operation. Logistics-related costs are dynamic and do not readily fit
with traditional accounting methods.
Accounting difficulties become more pronounced when trying to determine
costs for a particular operation, a particular customer, or to evaluate, outsource,
or gain share opportunities. Activity-based costing can be used to help firms
manage and to benchmark logistics costs. The table below shows the variables
for total logistics costs:
Figure 5: Total Logistics Cost Decisions (Roberts, 1999, p.23)
Module 3: Transport Operations Participant
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Table 5: Total Logistics Costs
International Transport Costs
International transport costs may be defined as direct and indirect costs,
which are incidental to the transportation of goods from the point of loading to
the destination. The definition of cost could be based on port-to-port, door-to-
door, port-to-door or door-to-port. The largest proportion of such costs goes to
freight charges, with inland freight being higher than sea freight. Other costs
include some or all of the following:
Table 6: International Transport Costs
���� Transportation
���� Facilities
���� Communications
���� Inventory
���� Material Handling
���� Packaging
���� Management
���� Handling Charges
���� Storage Costs
���� Insurance Costs
���� Documentation
���� Clearing and Forwarding Agents
���� Costs Incurred for Customs Clearence
���� Banking Fees
���� Administrative Costs
���� Security Costs
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Security costs incurred in providing additional security arrangements in
order to avoid dilution and loss by pilferage of goods in transit:
���� Costs incurred in crossing frontiers, fees for various overlapping
sanitary or health inspections
���� Additional costs for delays in excess of normal transit time and
uncertainty of traders
���� Monopoly elements, inflated costs of transport inputs, informal
payments
���� Damages for failure to turn in containers on time ( UNCTAD,1999
p.11)
The table below explains how to minimize total logistic costs:
���� Research into new forms of propulsion and fuel
What kind of problems are transporters facing with the implementation of
emission standards in the Europe Union?
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From the 1st January 2005 petrol and diesel must contain no more than
50 ppm of sulphur, a level that was agreed by Council and Parliament at the
end of the Auto-Oil Program. However, the other environmental parameters
have not yet been fixed for 2005 (except for the levels of aromatics in petrol)
and the recent analysis in Auto-Oil II has focused on these parameters rather
than sulphur.
Auto Oil II has followed the same basic approach as the first program but
taking fuller account of the potential of emission sources other than road
transport and of other road transport measures than the so-called technical
measures; taking advantage of reactive air quality models in order to
understand better the interactions of different pollutants and in extending
participation in the Program to MSS and NGOs in addition to the auto and oil
industries.
Recent technological development coupled with a greater desire to make
progress on issues such as climate change has raised the issue of sulphur in
fuel and the level that is appropriate to keep pace with these new
developments.
The Communication from the
Commission reviewing the Auto-Oil II Program
shows that road transport is responsible for a
declining relative share of total emissions of the
most common atmospheric pollutants, but that
further improvements in air quality will require
an approach that addresses other sources
more systematically.
Auto-Oil II Programme
The aim of the European Auto-Oil II
Programme (AOPII) is to make an
assessment of the future trends in
emissions and air quality. For more
information:
http://europa.eu.int/comm/environme
nt/autooil/
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Case Study: A Dramatic Accident
T-Transport Company was given the task of
transporting 10 tons of meat from country A to
country B. But there was not enough time for
transportation. The loading was completed
successfully and the truck set out on the
determined day. At first everything was all right
but after six hours’ driving, there was an
accident.
The accident was not a fatal one but the truck’s freezing system had been
damaged. There was at least another 16 hours to go but without this system it was
impossible to deliver the goods in a healthy condition. For that reason, the driver
had to find a place to mend the damaged system.
To his surprise, he found out that the cost would be much higher than he
expected. But the worst was yet to come: he realized that some of the insurance
documents of the truck were missing, and he could not pay the money.
So, he immediately called his company. The company took up the situation
and sent him the money. But all these caused a great loss of time and the goods
could not be delivered on time, besides the damages of some of the goods.
1. Which mistakes of the driver and the company could have caused this situation?
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Social Aspects Governing Road Transport
Obligations for the driving and rest times of truck and coach drivers have
a positive effect on traffic safety, but at the same time they increase the costs of
road transport. The AETR Agreement restricts driving hours only in the case of
international transport, as the duration of journeys is usually long.
The Community legislation however extends these restrictions to all
domestic journeys, too. SECI operators are obliged to keep to these rules when
they enter EU territory, since the national traffic rules of the country where the
vehicle travels are to be observed. They do not have to apply them however for
domestic journeys.
This harmonization will result in SECI operators paying extra costs, as
more drivers will be employed to offer the same service to customers as before
and costs will also rise due to vehicle maintenance becoming more frequent. All
this will need to be supported by different organizational structures.
On the other hand, the accession to the AETR Agreement will undoubtedly
increase the quality of service provided so far as the security of the truck and
goods transported goes. Since the Europe Agreements give freedom for
establishing enterprises, SECI structural changes will favor EU operators who
are willing and able to expand.
The Driver’s Responsibilities in Transport Operations
Drivers are the representatives of any transport company, who are present
at the customer's premises with first hand knowledge of what goes on. The
company is totally dependent on their drivers feeding information back correctly
so that the proper process of administration, investigation and comparison can
take place. Therefore, driver professionalism becomes an important matter.
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The movement of goods between points A and B is the responsibility of
the driver. The driver is expected to ensure that:
���� The goods are securely fixed within the trailer before moving off
���� During travel the driver should take all the necessary steps to prevent
theft of goods in the vehicle by parking in secure or very active areas
���� They drive in accordance with prevailing road conditions
���� They have respect for road conditions
���� They have respect for others using the roads
���� They have respect for property of others
To date, serious weaknesses have been noted in:
���� The reporting of accidents
���� The handling of goods in transit
In order to assist in eliminating these weaknesses the driver must:
���� Report all accidents/vehicle damage immediately
���� Sign for all loads and show clearly the circumstances prevailing
���� Think of security
���� Communicate
The driver is the only person present on site and therefore they have all
the vital information.
The driver must:
���� Examine visually where possible
���� Always be present during loading where permitted
���� Check the load for: quantity; against paperwork and damage
���� Secure the load before commencing their journey
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Drivers in Road Transport
According to AETR regulations, the minimum age of drivers engaged in
the international road transportation of goods shall be for vehicles of a
permissible maximum weight not exceeding 3.5 tones, 18 years old.
For other vehicles:21 years or 18 years where the person concerned holds
a certificate of professional competence that he/she has completed a training
course for drivers of vehicles intended for the carriage of goods by road.
In the figure below the driving ages for vehicles are given:
Knowledge, Skill and Behavior for Driving a Power-Driven Vehicle
The driver’s knowledge, skill and behavior while driving a power driven
vehicle is covered in detail in the directive 91/439/EEC, which addresses the
following issues:
18 years old 21 years old
exceeding 3.5 tonnes not exceeding 3.5 tonnes
Figure 11: Driving Age
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Table 29: Knowledge Skill and Behavior for Driving a Power-Driven Vehicle
Driver’s Knowledge and Skill
Trucking is a very dangerous profession, about 600 drivers a year die in
highway accidents. Drivers need important knowledge to avoid these accidents.
They must be able to demonstrate knowledge and a sound understanding in the
following areas as shown below:
���� Drive safely; drivers of all power-driven vehicles must have the necessary
knowledge, skill and behavior
���� Recognize traffic dangers and assess their seriousness
���� Have sufficient command of their vehicle not to create dangerous situations and
to react appropriately should such situations occur
���� Comply with road traffic regulations, and in particular those intended to prevent
road accidents and maintain the flow of traffic
���� Detect any major technical faults in their vehicles, in particular those posing a
safety hazard, and have them remedied in an appropriate fashion
���� Take account of all the factors affecting driving behavior (e.g. alcohol, fatigue,
poor eyesight, etc.) so as to retain full use of the faculties needed to drive safely
���� Ensure the safety of all road users, and in particular of the weakest and most
exposed by showing due respect for others
Traffic Controls
Basic Driving Skills
Turns and Intersections
Lane Driving
Sharing the Road
Emergency Driving
Driving within the Law
Registration and Insurance
Figure 12: Driver’s Knowledge and Skill
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Driver’s Attitude
Communicating with other road users using the authorized means:
Driving Licenses
Transport for hire and reward between
member countries of the European Union is
conducted under a Community license, which is
issued for a period of five years and is
renewable. The license has a multilateral
character since it can be used for transport
operations between two member countries,
neither of which is the company’s country of
origin. Since 1st July 1998, they can be used for
cabotage operations within the Member State.
The ability to make progress is an
important advanced driving skill, but
progress must never compromise
safety. Excess speed (speed above
the statutory limit) and inappropriate
speed (excessive speed for the
circumstances, regardless of the
statutory limit) are dangerous and
are not acceptable.
Driving Speed
���� Reacting appropriately in actual risk situations
���� Complying with road traffic regulations and the instruction of the police, traffic
wardens, etc.
���� Showing due respect for other road users
���� Passing parked or stationary vehicles and obstacles
���� Passing oncoming vehicles, including in confined spaces
���� Overtaking in various situations
���� Approaching and crossing level-crossings
���� Approaching and crossing junctions
���� Turning right and left at junctions or in order to leave the carriageway
���� Taking the necessary precautions when alighting from the vehicle
91/439/EEC 29 July 1991
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Drivers of vehicles in these categories must also demonstrate knowledge
and sound understanding in the areas set out below:
���� Obstruction of the field of view of the driver and other users caused
by the characteristics of their vehicles
���� The effect of wind on the course of the vehicle
���� Rules on vehicle weights and dimensions
���� Rules on driving hours, rest periods and use of the tachograph
���� Principles of braking systems and speed governors
���� Precautions to be taken when overtaking because of the danger of
splashing spray or mud
���� Reading a road map
They must in addition be capable of:
���� Checking the power-assisted braking and steering systems
���� Using the various braking systems
���� Using speed reduction systems other than the brakes
���� Adjusting course when turning to allow for the length of vehicle and its
overhang
���� Know the safety factors relating to vehicle loading
Figure 13: Driving License Categories used in Road Transport (Europe)
Maximum authorized mass is over 3 500
kilograms; motor vehicles in this category may
be combined with a trailer having a maximum
authorized mass which does not exceed 750
kilograms.
A combination of vehicles where the tractor
vehicle is in category C and its trailer has a
maximum authorized mass of over 750
kilograms.
C1
C
EC1
EC
Seri
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Minimum Requirements for Driving Tests
Driving tests should ensure that applicants for driving licenses have the
required knowledge and skills, and behavior. Questions must be asked on
points such as road traffic regulation, general rules and regulations, the vehicle
and its equipment.
Applicants shall undergo medical examination before a driving license is
first issued to them and at regular intervals thereafter.
Applicants must go through a medical check of the following health items
to ensure that there is no condition that makes it dangerous for them to drive a
power-driven vehicle:
Table 30: Health Check Items
Driver licenses shall not be issued to, or renewed for, applicants or
drivers who:
���� Suffer from complaints or abnormalities of the locomotors system
���� Have serious arrhythmia
���� Sight
���� Hearing
���� Locomotors Disability
���� Cardiovascular Diseases
���� Diabetes Mellitus
���� Neurological Diseases
���� Mental Disorders
���� Alcohol
���� Drugs and Medical Products
���� Renal Disorders
���� Miscellaneous Provisions
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���� Suffer from a serious neurological disease, unless the application has
an authorized medical report which states that he/she can drive
���� Severe mental disturbance
���� Severe mental retardation
���� Severe behavioral problems due to ageing; or personality defects
leading to serious impaired judgment, behavior or adaptability
���� Are dependent on alcohol or unable to refrain from drinking and
driving
���� Are dependent on psychotropic substances
���� Suffer from serious renal insufficiency subject to authorized medical
opinion and regular medical check-ups
Driving and Resting Periods of the Drivers
Different resting and driving periods in SECI countries not only lead to
unfair competition but they also severely affect the safety of transport
operations. The figure below shows the driving periods of drivers:
Continuous Driving 4,5 Hours
Daily Driving 9 Hours (10 hours twice a week)
Fortnightly Driving 90 Hours
Working Day/Spread Over Normally 13 Hours
Figure 14: Driving Periods
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The daily driving period between any two daily rest periods or between a
daily rest period and a weekly rest period shall not exceed nine hours. It may
be extended twice in any one week to 10 hours.
A driver must, after no more than six daily driving periods, take a weekly
rest period. The weekly rest period may be postponed until the end of the sixth
day if the total driving time over the six days does not exceed the maximum
corresponding to six daily driving periods.
The total period of driving in any one fortnight shall not exceed 90 hours.
Maximum Continuous Driving Periods
No continuous driving period shall exceed four hours except where the
driver cannot reach a convenient stopping place or his/her destination; in such a
case the driving period may be extended by no more than 30 minutes.
If the daily driving period exceeds eight hours the driver shall be required
to discontinue driving during not less than two uninterrupted periods of 30
minutes.
Breaks and Rest Periods
After four-and-a-half hours' driving, the driver should have a break of at
least 45 minutes, unless he/she begins a rest period. This break may be
replaced by breaks of at least 15 minutes each distributed over the driving
period or immediately after this period. The figure below explains the daily
driving and rest periods of a driver:
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In each period of 24 hours, the driver should have a daily rest period of at
least 11 consecutive hours, which may be reduced to a minimum of nine
consecutive hours not more than three times in any one week, on condition that
an equivalent period of rest is granted as compensation before the end of the
following week.
During each period of 30 hours when a vehicle is operated by at least two
drivers, each driver shall have a rest period of not less than eight consecutive
hours (AETR).
Weekly Rest Period
In addition to the daily rest periods, every crewmember shall have a
weekly rest period of not less than 24 consecutive hours, which is followed by
a daily rest period. A weekly rest period, which begins in one week and
continues into the following week, may be attached to either of these weeks.
A combination of vehicles used for the carriage of goods where the
permissible maximum weight of the combination of vehicles exceeds 20 tones,
the driver is to be accompanied by another driver from the start of the journey,
or be replaced by another driver after 450 kilometers, if the distance to be
traveled between two consecutive daily rest periods exceeds 450 kilometers.
Figure 15: Daily Driving and Rest Periods
4.5 hours 4.5 hours 1 hour 45 min. 45 min.
Daily Driving Period Twice a Week
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The figure bellow shows the rest periods of a driver:
In the course of each week, one of the rest periods is extended, by way of
a weekly rest, to a total of 45 consecutive hours. This rest period may be
reduced to a minimum of 36 consecutive hours if taken at the place where the
vehicle is normally based or where the driver is based, or to a minimum of 24
consecutive hours if taken elsewhere. Each reduction shall be compensated by
an equivalent rest taken en bloc before the end of the third week following the
week in question (AETR). Individual Control Book
Every driver or driver's mate writes in an individual control book, a record
of his/her occupational activities and rest periods. He/She must keep the book
with him/her and produce it whenever required by the control authorities.
Exceptional cases must be recorded in the
individual control book. Such as danger, in case
of force majeure, to render aid, or as a result of
a breakdown, to the extent necessary to ensure
the safety of persons, of the vehicle or of its
load and to enable him/her to reach a suitable
stopping place or, according to circumstances,
the end of his/her journey.
Weekly Rest 45 Hours
(reducible to 36 hours)
Daily Rest Periods 11 Hours
(reducible to 9 hours)
Figure 16: Rest Periods
Drivers and attendants should be
required to carry their control books
with them during their hours of work
and to produce them on demand to
the supervisory authorities.
Control Book
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The driver should record in the individual control book the nature of and
reason for his/her departure from those provisions.
Every driver should keep a register of the
individual control books they use; the register
should show at least the name of the driver or
driver's mate to whom the book is issued, the
driver's or driver's mate's signature in the
margin, the number of the book, the date of
issue to the driver or driver's mate and the date of the last daily sheet
completed by the driver or driver's mate before final return of the control book to
the undertaking after use.
In the Event of an Accident or Damage to Property
As a result of an accident or damage to property, the transport company
and drivers should take all appropriate measures in order to minimize the
financial or other risks for its own company and/or to its clients. Such measures
include but are not limited to:
Table 31: Measures in the Event of an Accident or Damage to Property
���� Stop and give identity information about yourself and your firm
���� Provide details of your vehicle
���� Note the full name and address of the third party
���� Note detail of their vehicle i.e. registration number, make, type, extent of damage
���� Take the details of any Police Officer attending i.e. his/her number.
���� Note the exact location of the accident/damage
���� Note down the main junction
���� Take down details by doing a rough sketch
���� Do not admit liability
���� Notify operations without delay
���� Take a note of the operation’s person to whom you speak
���� On return to the office, complete an accident report form
Used books should be kept for no less
than 12 months after the date of the
last entry and should be produce with
the registers of issue, at the request of
control authorities (AETR).
Used Books
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Case Study: An Interesting Journey
Çetin received the goods from the sender in
good condition, having completed the necessary
transactions in consignment note, set out for B
country from A country. While the vehicle of Speed
Logistics firm is passing through C country, the
thieves approach the moving vehicle from behind,
cut the cover and empty some of the load.
The driver, unaware of the situation, continues his progress. Stopping to
control the vehicle after the warning of drivers passing by, Çetin notices the
situation. Having called the firm and informed them of the situation, Çetin stitches
the cover and sets out, and immediately applies to the officials of C country.
But the misfortunes of Çetin are not over yet. In spite of making a
complaint, Çetin is in guilty position, let alone finding a solution. For, the officials
are suspicious that the goods were stolen by Çetin himself and sold within the
country, intending to start legal procedures. According to that, Çetin has to pay the
taxes for these goods, thought to be sold.
As a matter of fact, Çetin went on his way after paying the tax, since he has
to get the goods in place on time. Nevertheless, since the goods are missing, there
were problems during the delivery according to the consignment note and he had
to meet the loss.
1. What must the driver do first of all when he encounters an extraordinary
situation?
2. What would you do if it happened to you? Insurance, notification of the situation,
delivery, etc.?
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Visa Regimes
Yet another issue hindering the free movement of transportation is the
problem of visas for the drivers of vehicles.
For this reason, the United Nations European Economic Council
(UNECE) and the SECI Regional Road Transportation Committee (SECI-
RRTC) have started to work on:
���� facilitating visa formalities
���� shortening the period required to obtain a visa
���� issuing multi-entry annual visas
Conformity is needed in order to solve the three main problems stated
above. For this purpose, when it is taken into consideration that Greece as a
member of European Community (EC) and Romania and Bulgaria as
candidates for membership and Turkey as a member of the Performing
Customs Union since 1996 as well as being a candidate for membership in the
SECI region and other countries of the region having made bilateral harmony
agreements with the E.C., it is inevitable that these countries have to harmonize
transportation and customs regulations in line with E.C. regulations.
Vehicle and Goods Security
One has only to think for a moment of the wide variety of
goods moved by road to realize how desirable many of these
loads are to thieves. Insurance companies as well as
operators of fleets are concerned that security should be
effective.
What problems do visa applications create for transport sector?
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In fact insurance companies often require certain precautions to be taken
by the operator as a condition of providing insurance.
Haulage Associations are also concerned about vehicle and load security
and they have produced a guide for the use of its members. Among the points
mentioned are:
���� Recruitment of staff: references should be checked. If a new driver is
employed do not let the vehicle be taken out until you have their P45
and other documents.
���� Alarms and immobilizers should be fitted in vehicles.
���� If a driver has a valuable load he/she should be instructed not to get
out of the cab if stopped.
���� Vehicles should not be left unattended, especially at night.
���� Keys should never be left in the vehicle. If a key is lost, all locks and
switches should be changed.
���� Drivers should be asked to change their routine so they don’t visit the
same places at the same times.
���� When a vehicle is sold, the company name should be removed.
���� A cash bonus could be given to drivers that observe security rules.
Security is also important for the long-term future of the business, because
if a company gets a reputation for bad security, customers may withdraw their
trade.
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Liability and Insurance
Where at the time of loading the driver identifies damage, he/she should
bring this to the notice of the customer. The customer should remove the
damaged goods but if they insist that loading should be continued a CMR
discharge should be filled out showing the prevailing conditions e.g. “Damaged
goods identified to customer. Instructed to send on“, signed by the driver.
Insurance Cover
Insurance cover will depend on the sales contract terms, and if these
include insurance cover by the seller any stipulations requested by the buyer in
his/her Letter of Credit must be covered.
If the buyer is responsible for the insurance, the seller will still need to
cover the goods up to the point where title passes to the buyer and also insures
for any contingent risk in case his/her customer rejects the documents or goods.
Unless the buyer stipulates that he/she requires facultative insurance with
its own policy, most exporters or their forwarders cover the risk with a certificate
issued against an “open cover” policy. Under the open cover policy the shipper
or their agent agrees to insure all their cargo with an underwriter, who in turn
undertakes to cover the entire shipper or agent’s consignments. The shipper’s
agents or their brokers can issue the certificate themselves and the
underwriters might not be aware of the shipment until a claim arises.
Green Card Insurance
A Green Card is an international certificate of insurance
issued on behalf of a national bureau in accordance with
Recommendation No 5 adopted on 25 January 1949 by the
Road Transport Sub-committee of the Inland Transport
Committee of the United Nations Economic Commission for Europe.
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The Green Card System facilitates international traffic while settling the
legal questions regarding the different compulsory motor insurance laws in the
participating countries. Further it makes it simple to settle claims in the event of
an accident in the visited country ensuring that the claimant is correctly
compensated. Thus, the visiting motorist is put into the same legal situation as a
liable domestic motorist. There are at present forty-three countries participating
in the Green Card System. The situation in SECI countries is given in the
following table:
Table 32: Green Card Countries
Albania
Bulgaria
Croatia
Greece
Macedonia
Moldova
Romania
Slovenia
Turkey
Yugoslavia
Compulsory Necessary Recommended * Adopted From Swiss National Bureau of Insurance
The Green Card System operates on the basis of the Compulsory Third
Party Insurance Laws of the participating countries with the effect that
compensation of the claimant is guaranteed on the basis of its domestic law
notwithstanding the fact that the accident was caused by a vehicle from abroad.
Various countries therefore demanded that motorists purchased frontier
insurance when crossing their borders, with the advantage that the laws
governing the sum insured and extent of cover in the countries visited were
complied with. Even today one can still obtain this type of certificate of
!
!
!
AL
B
HR
MK
GR
MD
YU
TR
RO
SK
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insurance from the Customs Authorities of the visited countries for periods of
one to six months.
The Green Card, which is issued by third party motor risk insurers, serves
as an international insurance certificate for cross-border traffic. (Today the
Green Card is still compulsory for some Countries in Eastern Europe and the
Mediterranean Basin and is recommended for longer distance travel).
The Status of the Green Card
The Green Card is equivalent to the national Motor Insurance Certificates
of each and all of the countries that a motorist visits. As such it is accepted
without any obstacle or cost by the authorities of all countries for which the
individual Green Card is valid.
The Green Card presented by a motorist on
a temporary visit to a certain country or countries,
which is validated for the country or countries
concerned, provides evidence of the existence of
insurance cover in respect of the minimum
requirements of the relevant "local" Compulsory
Third Party Insurance Laws.
Motorists intending to travel outside of their own country are provided with
an International Motor Insurance Card ("The Green Card"), which has to be
presented at borders and in the event of an accident.
For residents of the above-mentioned countries, the Green Card is
compulsory for all of the other countries participating in the Green Card System.
The Green Card certifies that the
visiting motorist has at least the
minimum compulsory third party
insurance cover required by the laws
of the countries visited.
Status of Green Card
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For non-residents of the above-mentioned countries, the Green Card is
compulsory for all of the participating countries.
Liability for the Carriage of Goods
The convention on the contract for the international carriage of goods by
road (CMR) dated 1956 have recognized the desirability of standardizing the
conditions governing the contract for the international carriage of goods by road,
particularly with respect to the documents used for such carriage and to the
carrier' s liability.
The consignment note is a legal contractual document between consignor,
road transport operator and consignee, which standardizes the conditions
governing the contract for international road transport, particularly with respect
to documents to be used and the carrier’s liability with the aim of facilitating
international road transport and international trade.
To use the CMR note, at least one of the countries involved in the
international transport (of origin or of destination) should be a Contracting Party
to the CMR Convention. (http://www.iru.org/TIR/Glossary/16.E.html)
The contract of carriage is confirmed by making out a consignment note.
The absence, irregularity or loss of the consignment note does not affect the
existence or the validity of the contract of carriage that remains subject to the
provisions of this convention.
What monetary limits of liability should apply to what units of cargo, and in
what circumstances?
What are the objectives of a cargo liability regime?
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The liability of the carrier for the consequences arising from the loss or
incorrect use of the documents specified in and accompanying the consignment
note or deposited with the carrier is that of an agent, provided that the
compensation payable by the carrier shall not exceed that payable in the event
of loss of the goods.
The sender has the right to dispose of the goods, in particular by asking
the carrier to stop the goods in transit, to change the place at which delivery is
to take place or to deliver the goods to a consignee other than the consignee
indicated in the consignment note.
To exercise this right the first copy of the consignment note, on which the
new instructions to the carrier have been entered and indemnifies the carrier
against all expenses, loss and damage involved in carrying out such
instructions, must be produced.
Figure 17: An Example of Consignment Note
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After arrival of the goods at the place designated for delivery, the
consignee is entitled to require the carrier to deliver to him/her, against a
receipt, the second copy of the consignment note and the goods. If the loss of
the goods is established or if the goods have not arrived after the expiry of the
period, the consignee is entitled to enforce in his/her own name against the
carrier any rights arising from the contract of carriage.
The consignee who avails him/herself of the rights granted to him/her
should pay the charges shown to be due on the consignment note, but in the
event of dispute on this matter the carrier should not be required to deliver the
goods unless the consignee has furnished security.
If for any reason it is or becomes impossible to carry out the contract in
accordance with the terms laid down in the consignment note before the goods
reach the place designated for delivery, the carrier should ask for instructions
from the person entitled to dispose of the goods.
Nevertheless, if circumstances are such as to allow the carriage to be
carried out under conditions differing from those laid down in the consignment
note and if the carrier has been unable to obtain instructions in reasonable time
from the person entitled to dispose of the goods, he/she should take such steps
that seem to be in the best interests of the person entitled to dispose of the
goods.
Where circumstances prevent delivery of
the goods after their arrival at the place
designated for delivery, the carrier should ask
the sender for their instructions. If the consignee
refuses the goods the sender is entitled to
dispose of them without being obliged to
produce the first copy of the consignment note.
CMR itself deals with liability, burden
of proof, exclusion of liability and
limitation of liability. Any provision in
an international road carriage contract
which is inconsistent with the
provisions of CMR will be
unenforceable.
Liability and CMR
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Even if he/she has refused the goods, the consignee may nevertheless
require delivery so long as the carrier has not received instructions to the
contrary from the sender.
When circumstances preventing delivery of the goods arise after the
consignee, has given an order for the goods to be delivered to another person,
should apply as if the consignee were the sender and that other person were
the consignee.
The carrier is entitled to recover the cost of his/her request for instructions
and any expenses entailed in carrying out such instructions, unless such
expenses were caused by the wrongful act or neglect of the carrier. The carrier
may immediately unload the goods for account of the person entitled to dispose
of them and thereupon the carriage is deemed to be at an end. The carrier
should then hold the goods on behalf of the person so entitled.
He/she may, however, entrust them to a third party, and in that case
he/she will not be under any liability except for the exercise of reasonable care
in the choice of such third party. The charges due under the consignment note
and all other expenses remain chargeable against the goods. The consignment
note should contain the following particulars: Table 33: The Content of Consignment Note
���� The date of the consignment note and the place at which it is made out
���� The name and address of the sender and carrier
���� The place and the date of taking over of the goods and the place of delivery
���� The name and address of the consignee
���� The description in common use of the nature of the goods and the method of
packing, and, in the case of dangerous goods, their generally recognized
description
���� The number of packages and their special marks and numbers
���� The gross weight of the goods or their quantity otherwise expressed
���� Charges relating to the carriage (carriage charges, customs duties)
���� The requisite instructions for customs and other formalities
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The parties may enter in the consignment note any other particulars that
they may see as useful. On taking over the goods, the carrier must check:
���� The accuracy of the statements in the consignment note as to the
number of packages and their marks and numbers
���� The apparent condition of the goods and their packaging
CHECKLIST Vehicle � Open vehicle without a tarpaulin, as agreed to by the sender Packaging � Without packaging � Defective � Inadequate Quantity, Markings, Packet Number (Barrels, sacks, items etc.)
Impossible to check because: � Loading effected by the sender � Atmospheric conditions � The large quantity of packets � Sealed container Goods Accepted � In obviously bad condition � Damaged � Damp � Frozen � Not protected against atmospheric conditions and carried as such at the sender’s own
risk Handling, Loading, Securing
Handling, loading, securing effected � By the sender � By the driver in atmospheric conditions likely to damage the goods and at the
sender’s request
Unloading effected � By the consignee � By the driver in atmospheric conditions likely to damage the goods, at the request
of the consignee
Figure 18: CMR Checklist
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Liability of the Carrier
The carrier is liable for the total or partial
loss of goods and for any damage that occurs
between the time when he/she takes over
possession of the goods and the time of
delivery, as well as for any delay in delivery.
The carrier is not liable if the loss, damage or delay was caused by the
claimant or by instructions given by the claimant.
The carrier must be relieved of liability when the loss or damage arises
from the special risks inherent in one more of the following circumstances:
The consignment note must be prima
facie evidence of the making of the
contract of carriage, the conditions of
the contract and the receipt of the
goods by the carrier.
Contract of Carriage
���� Use of open uncovered vehicles, when their use has been expressly agreed and
specified in the consignment note
���� The lack of, or defective condition of packing in the case of goods which, by their
nature, are liable to wastage or to be damaged when not packed or when not
properly packed
���� Handling, loading, stowage or unloading of the goods by the sender, the
consignee or person acting on behalf of the sender or the consignee
���� The nature of certain kinds of goods which particularly exposes them to total or
partial loss or to damage, especially through breakage, rust, decay, desiccation,
leakage, normal wastage, or the action of moth or vermin
���� Insufficiency or inadequacy of marks or numbers on the packages
���� The carriage of livestock
Table 34: Circumstances which the Driver is not Liable
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Special Transport
Transport of Dangerous Goods (ADR)
ADR is based on the UN
Recommendations on the Transport of Dangerous
Goods as regards the listing and classification of
dangerous goods, their marking and labelling and
packaging standards, but it also contains much
more detailed provisions as regards.
ADR is a certificate that is prepared for the carriage of dangerous goods
by road. It is intended primarily to increase the safety of international transport
by road, but it is also an important trade facilitation instrument. Drivers of
vehicles carrying dangerous goods on ADR operations should be in possession
of the documents shown below:
Figure 19: Required Documents for Drivers on ADR Operations
Nature of Danger Document
Details Pertaining to the Dangerous Substance
A Certificate of Approval
Training Certificate
ADR (Accord Dangereux Routiers)
is the European Agreement
concerning the international carriage
of dangerous goods by road; it was
adopted at Geneva on 28 October
ADR
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There is no official format but usually a 'CMR' or similar note is used to
give the details regarding the dangerous substance. The CMR standardizes
conditions of carriage, documentation for load and carrier liability which police
are not normally concerned with.
The information about the nature of the
dangers of the substance must be available in
the languages of all countries of transit. Also
there should be a certificate of approval for
vehicle and a training certificate (ADR Certificate)
for the driver.
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Classes of Dangerous Goods
Dangerous goods are articles or substances which are capable of posing
a significant risk to health, safety or to property when transported by road. For
ease of identification of dangerous goods, the international community has
created a classification system. All dangerous goods are included in one of the
nine primary classes. In some cases it has also been necessary to sub-divide
some of the classes into divisions.
There is a label for each class/division in order to categorize the nature of
the hazard. These labels must be affixed to the outside of the package when it
is offered for transport and must remain on the package while it is in transit.
Examples of these are given in the table below:
What dangerous goods are transported by land?
As per directive 96/35/EC, the five
year validity of the ADR certificate may
be extended in the final year of its
expiry if its holder has attended
refresher courses or passed an
examination both of which the
competent authority must approve.
Validity of ADR Certificate
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Table 35: Classes of Dangerous Goods
Class Sub-class Symbol Description Examples
Class 1
Explosives
These materials will explode. TNT
ANFO
nitroglycerine
Class 2
Gases
Class 2.1
Flammable
gases
These are gases which will burn. acetylene
hydrogen
LPG
Class 2.2
Non-flammable
non-toxic
gases
These gases are usually
compressed and so are a source
of stored energy and some may
also present an anoxic hazard.
air
carbon
dioxide
nitrogen
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Class 2.3
Toxic gas
These gases are toxic. Being
gases, they will rapidly disperse
if there is a leak.
chlorine
methyl
bromide
Class 3
Flammable
liquids
These liquids will burn. petrol
kerosene
Class 4
Flammable
solids
Class 4.1
Self-reactive
substances &
desensitized
explosives
Solids easily ignited and readily
combustible.
sulfur
phosphorus
picric acid
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Class 4.2
Spontaneously
combustible
These materials will catch fire if
exposed to air without any heat
being applied.
charcoal
(non-
activated)
Class 4.3
Dangerous
when wet
This class is also known as
'Emits flammable gases when
wet'. These are dangerous when
wet.
calcium
carbide
Class 5
Oxidizing
substances
Class 5.1
Oxidizing agent
These are all oxidizing agents
other than organic peroxides.
When substances burn in air,
they combine with oxygen and
so are said to have been
oxidized.
chlorine
calcium
hypochlorite
sodium
peroxide
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Class 5.2
Organic
peroxides
(liquid or solid)
These are a particular class of
oxidizing agent. They have all
the normal hazards of oxidizing
agents.
benzoyl
peroxides
methyl ethyl
peroxides
Class 6
Toxic and
infectious
substances
Class 6.1a
Poisons
These are liable to cause death
or serious injury to human
health if inhaled, swallowed or
absorbed through the skin.
cyanides
lead
arsenic
Class 6.1b
Harmful
These are materials which must
be stored away from food stuffs
but which are not classified as
poisons.
pesticides
heavy metals
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Class 6.2
Infectious
substances
Substances containing viable
micro-organisms that may cause
disease in humans or animals.
diagnostic
specimens or
live vaccines
Class 7
Radioactive
substances
Materials or combinations of
materials which spontaneously
emit ionizing radiation.
uranium
radio
plutonium
Class 8
Corrosives
These chemicals will eat away at
a wide range of materials
including some materials of
construction for tanks and your
eyes and skin.
Special protective equipment
needs to be worn.
hydrochloric
acid
sodium
hypochlorite
sodium
hydroxide
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Class 9
Miscellaneo
us goods
Substances and articles which
have potentially dangerous
properties that are relatively
minor, or are not covered by any
of the classes already described.
aerosols
polyester
beads
ADR Check
Check means any check, control, inspection, verification or
formality carried out by the competent authorities for reasons
of safety inherent in the transport of dangerous goods.
Checks should be carried out using a list of common items applicable to
such transport. It is necessary to draw up a list of infringements deemed
sufficiently serious by all EU countries to result in the application to the vehicles
What are the driver responsibilities in an ADR Operation?
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concerned of appropriate measures depending on the circumstances or the
requirements of safety, including, where appropriate, refusal to admit the
vehicles concerned into the Community.
In order to improve compliance with safety standards for the transport of
dangerous goods by road, it is necessary to carry out random checks and cover
an extensive area of the road network. Those violating safety rules should be
immobilized on-the-spot or at a place designated for that purpose by the said
authority without causing a safety hazard.
CHECKLIST
1. Place of check:.............................................. 2. Date:.................................................. 3. Time..................................
4. Vehicle nationality mark and registration number:...........................................................................
5. Trailer/semi/trailer nationality mark and registration number:...........................................................
6. Type of vehicle: Lorry Road train Articulated vehicle with platform
7. Undertaking carrying out transport/address:............................................................................................................
12. Consignor, address, place of unloading: (*)..............................................................................................................