Ontario 2013

International Transport and logistics

Chapter 3: Actors of the logistic chain

Relations with partnersThere are numerous professionals in the international transportation and logistics world.

Carriers, forwarders, customs brokers, transport brokers, warehousers, consolidators, 3PL, 4PL, consultants, etc.

Make sure that they have the capacities they are stating and the some ofthe following certifications:ISO, IATA, CIFFA, CBCA, C-TPAT, PEP, OEA, etc. Obtain the certification numbers.

Visit periodically their physical sites for compliance; Know your representative(s) and also operations key personnel. Establish

relationships Make sure your have the numbers (phone, cell) and email to easily join them

whenever needed.

OCEAN PROFESSIONALS

A. STEAMSHIP LINES or VOCC’sOwn and operate their vessels. Are issuing ‘Bill of lading’ (BOL). Ruled by the FMC. You need a large volume to deal directly.Maersk, China Shipping, Cosco, Evergreen, etc.

B. NVOCC’s orNon-vessel operating common carrierNegociate space with the VOCC’s. Can issue their own BOL’s.

Agility, UPS SCS, Delmar, BAX, etc.

C.INTERNATIONAL FORWARDERSNegociate space with VOCC’s and NVOCC’s.Can not issue

their own BOL’s. Can book any type of transport mode.Axxess, Panalpina, SDV, Cargolution, etc.

FREIGHT FORWARDING

PROFESSIONALS

FREIGHT FORWARDERAlso ruled by the CIFF(Canada). Usually non-asset companies. Do not issue BOL’s.Services:• Quotations for all modes: Ocean, rail, road and air cargo movements and

other services, to move cargo from point of origin to destination.• Perform reservations and coordination with the carriers in the four (4)

modes of transportation.• Prepare/revise transport and customs documentation.• Make sure that documentation is compliant to requirements regarding

letter of credits, quotas, permits, Incoterms, etc.• Make their profits on documentation preparation, margins and on bulk

savings from the carriers.

DEFINITION FREIGHT FORWARDER

• Some Freight forwarders consolidate various goods from different consignors into one full load for ocean or road transport. This is often known as ‘groupage or consolidations’.

• Forwarders can arrange:FTL / LTLFCL / LCLParcelsOver dimensions, etc.• Some forwarders can also be NVOCC’s.• Some forwarders can also act as Customs Brokers (need a license).

CANADIAN FREIGHT FORWARDING ASSOCIATION

THE PLAYERS IN AIR CARGO ?

• AIRLINES: Owners of airplanes. Cargo and passengers. Air Canada, Lufthansa, British Airways, etc.

• INTEGRATORS: Owners of airplanes. Cargo only. UPS, FEDEX, DHL, etc.

• CHARTERS: Owners of airplanes or renting them as operators or to airlines.

• FORWARDERS and BROKERS: No airplanes. Negociate space and rates. Axxess, Panalpina, Delmar, etc.

• SPECIAL SERVICES:

• 911

• Organs, etc.

AIR PLAYERS

AIRLINES: Owners or renters of passengers/cargo airplanes. Air Canada, Lufthansa, British Airways, Cathay Pacific, etc. Knowned also as the Commercial lines.

• Members of IATA.

• In general, passengers are located on the ‘upper deck’ and cargo in the ‘lower deck or the ‘belly’.

• International flights: Mississauga is the main.

INTEGRATORS: Owners or renters of airplanes. Cargo only. Example: UPS, FEDEX, DHL, etc.

• Carrying envelopes, boxes, skids, No passengers.

• Are using ‘upper and lower deck’ spaces. Doors at max 98 inches high.

AIR PLAYERS

ROAD CARRIERS

CARRIERS: Owners or renters of tractors and trailers. Cargo only. FTL and LTL transport.

Transforce, Kriska, Manitoulin, etc.

• Have to be registered to road authorities in the different provinces / states where they are driving.

• In the USA also federal with DOT. In Canada with Transport Canada.

FORWARDERS: Negociate space and rates with carriers on behalf of their customers. FTL and LTL. Non assets. Members CIFFA.

TRANSPORT BROKERS: Non asset, just offices and phones. Negociate rates with carriers. Are using internet to identify trailers in certains regions that are running empty to fill them. They are not regulated by any agencies.

RAIL CARRIERS

CARRIERS: In Canada, two (2) dominant players, CN (Canadian National) and CP (Canadian Pacific). They have their own railway system (dedicated).

• CN also strong in the USA after many acquisitions.

• Members of the Federal Railway Association (FRA), US entity.

• Many other small other operators on smaller or less beneficial lines (example of MMA, now popular with Lac Megantic events).

BOOK: You can use forwarders to book with them or book directly.

OTHER PLAYERS

3PL’s: A ‘third-party logistics’ (3PL) supplier or sometimes a TPL is a firm that offers extended services to their customers, including logistics transport and coordination, outsourcing internally or externally all or portions of logistics chain operations. 3PL’s are specializing in integrated operations, warehousing, ‘pick and pack’ and transport, that the can adapt to the needs of their customers, market conditions, delivery requirements, etc.

4PL’s: A ‘Fourth-party logistics’ou 4PL, is a consultation firm in logistics. They usually offer the same services as the 3PL’s but can also handle customs, financial and human resources aspects. With the advancement of technologies, this segment is growing rapidly and services are just adding month after month.

OTHER PLAYERS