INTERNATIONAL TRANSPORTS

Ph.D Lecturer Georgiana Surdu

srdgeorgiana@yahoo.com

TRANSPORTS AND ECONOMIC DEVELOPMENT

Transport has affected economic development from the beginning
of human civilization. Economic development focused on the
confluence of transport systems early cities grew up on natural
bays and ports, and on rivers and lakes where transport was
available.
Romans built roads to unify and provide access to their far-flung
empire. Geographic characteristics such as proximity to oceans,
seas, and waterways, plains, mountains and the location of oases
defined early transport systems (e.g., the Silk Road went from
oasis to oasis, and city to city, where there were no reliable water
or road routes).

TRANSPORTS CONTRIBUTION TO ECONOMIC DEVELOPMENT

INCLUDES THE FOLLOWING:

Network effects - linking more locations exponentially

increases the value and effectiveness of transport
Performance improvements - reducing cost and time
for existing passenger and freight movements
increase transports contribution to economic growth
Reliability - improves time performance and reduces
loss and damage, thus reducing economic drag
Market size-access to wider markets adds to
economies of scale in production, distribution, and
consumption, thereby increasing economic growth
Productivity - transport increases productivity
gained from access to a larger and more diverse base
of inputs such as raw materials, parts, energy, and
labor, and broader markets for more diverse outputs

SPEDITION AND INTERNATIONAL TRANSPORTS

International shipper (freight forwarder) - is a

legal person working on the basis of a mandate
agreement concluded with the exporting /
importing company, it undertakes to take the
goods entrusted to it and perform all the
operations necessary for the goods to reach the
destination.
Carrier - performs the actual movement of cargo
into space, most commonly at the order of the
sender and the expense of the exporter or
importer, depending on the delivery condition
stipulated in the contract.

THE MAIN ACTIVITIES

PERFORMED BY THE INTERNATIONAL SHIPPER IN

FOREIGN TRADE CONTRACTS, CONSISTS OF:

benefit its customers using the most suitable delivery

conditions covered internationally (INCOTERMS 2010);

conducting ex-ante on shipping costs, customs clearance,

insurance, etc., necessary for the movement of goods from the
place of production to the place of consumption;

warehousing of goods in public warehouses;

assisting the transport regulations in different countries;

establish links between the international participants conducting a

transaction (seller, buyer, carrier, customs etc);

choice of means of transport and routes most convenient in a

given situation;

preparing goods for delivery (measuring, weighing, packing, marking,

etc.);

concluding the formalities of insurance / reinsurance of goods

during transport and storage;

organization handling goods for combined transport / multimodal

(when using several means of transport);

paperwork and formalities necessary for the proper functioning

of transport;

organizing sending goods in traffic loads / consolidated (transporting

goods "door to door");

announce in time and under the conditions of the sale /

purchase of all those nominated in the expedition of goods;

payments in the name and on behalf of recipients of services

provided;

performing benefits as a customs broker in accordance with

the national law and international law;

other transport operations and related services.

MEANS (WAYS) OF TRANSPORT

The main ways of transport used in the

transportation of goods (and regulated
internationally) are:

Terrestrial traffic:

rail

road

Vessel traffic:

maritime

inland waterways

Air traffic:

air

Multimodal traffic:

multimodal transport

multimodal container transport.

Pipeline transport

ADVANTAGES / DISADVANTAGES OF DIFFERENT TRANSPORT MODES

Transport mode/way

Advantages

Disadvantages

Maritime

High capacity, mass transport

Relatively low cost;
Overall (global) accessibility.

It takes more time;

A higher cost of insurance with packaging and storage;
Crowded ports; transshipments.

Inland waterways

High transport capacity ;

Reduced costs

It takes more time;

Costs with upstream and downstream shipment,
transshipments.

Air

Speed, security, safety;

Lower costs in packaging, insurance and storage

High price;
Limited capacity;
Prohibition of some goods.

Railway

Low cost, high tonnage;

Traffic flow, timeliness;
Adapted to great distances.

Limited to the existing rail network;

Upstream and downstream operations, transshipment;
Unsuited to short distances

Road

Door to door" services without transshipment;

Relatively short duration.

Short distances;
Unsuited to mass transport

Multimodal

Extensive safety;
Without transshipment.

Relatively expensive;
Differences between countries in handling procedures.

Pipeline

Environmentally sound:
Can transport large quantities of goods;
The variable costs are low, once the investment is made.

Limited to fluids, gas, and chemical products;

Limited to created infrastructure;

TRANSPORT DOCUMENTS
The Convention

Name of the document

Maritime transport
Brussels 1924
Hamburg 1978

Bill of Lading

Air transport
Warsaw 1929

Airway Bill

Rail transport
Bern 1896
COTIF 1985 (Convention Relative aux Transports
Internationaux Ferroviaires)

International (Rail) Consignment Note

Road transport
Geneva 1956

International (Road) Consignment Note

Multimodal transport
Geneva 1980

Multimodal Transport Document

Pipeline transport
Barcelona 1921

Pipeline Transport Document

TRANSPORT COST STRUCTURES AND PRICING PRINCIPLES

1.
2.
3.
4.

5.

6.

Economies of scale in transport can be achieved as follows:

Increasing vehicle size and maximizing use of their capacity;
Increasing fleet size and maximizing its capacity;
Intensifying the use of indivisible facilities and infrastructure.
Economies of density - a quantity of goods can be transported at a
lower unit cost when moved together in one consignment or load, or in
one uninterrupted flow.
Economies of scope can be achieved when buying joint services (e.g.
roundtrip transportation).
Economies of distance (long-haul economies) are achieved when
the total transport cost per ton-kilometer decreases as the trip distance
increases.

Economic
Air
characteristics

Road

Rail

Sea

Pipeline

Cost

High

High/moderate

Moderate

Lowest

Low

Cost structure
(fixed cost to total
cost ratio)

Balanced

Lowest

High

Balanced

Highest

Market coverage

Terminal to
terminal

Point to point

Terminal to
terminal

Terminal to
terminal

Terminal to
terminal

Economies of
fleet size

Low

Moderate

Moderate

Low

Lowest

Economies of
vehicle size

High

Moderate

Moderate

High

Highest

Economies of
distance

High

Low

Highest

High

Lowest

SELECTING TRANSPORT SERVICES

1.

2.
3.

4.

5.
6.

Effectiveness considerations in service selection:

Suitability appropriate technology and
handling equipment are needed for a mode a
transport to accommodate the conveyance of
goods;
Accessibility or market coverage;
Security goods should arrive in the same
physical condition and quantity at destination;
Transit time very important in international
delivery;
Reliability or reputation;
Flexibility friendly information and service.