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Unit 8: Transportation

1. Bill of Lading: The bill of lading is the basic document utilized in purchasing transport Notes
services. It serves as a receipt and documents products and quantities shipped. The bill of
lading specifies terms and conditions of carrier liability and documents responsibilities
for all possible causes of loss or damage except those defined as acts of God.
2. Freight Bill: The freight bill represents a carrier’s method of charging for transportation
services performed. It is developed using information contained in the bill of lading. The
freight bill may be either prepaid or collect.

3. Shipment Manifest: The shipment manifest lists individual stops or consignees when
multiple shipments are placed on a single vehicle. Each shipment requires a bill of lading.
The manifest lists the stop, bill of lading, weight, and case count for each shipment. The
objective of the manifest is to provide a single document that defines the overall contents
of the load without requiring review of individual bills of lading. For single-stop
shipments, the manifest is the same as the bill of lading.
Well-defined documentation is required to perform a transportation service. With the
exception of private transfer within the confines of a single firm, products are typically
being sold when being transported. Thus, legal title to ownership occurs during the time
the transport service is performed. When for-hire carriers are engaged to perform the
transportation, the transaction must establish clear legal responsibility for all parties
involved. Students shall keep it in mind that the primary purpose of transportation
documentation is to protect all parties involved in the performance of the transaction.

Task Critically analyse the condition of transportation system of our country.

Self Assessment

State whether the following statements are true or false:

19. In small-scale organizations, traffic operations management involves a wide variety of
administrative responsibilities.
20. Freight consolidation is a service offered by some shipping companies to lower the total
shipping cost and to increase shipping security.
21. Well-defined documentation is required to perform a transportation service.



Case Study Deutsche Post

eutsche Post has integrated traditional air and ocean forwarding, express parcel
delivery, and mail services in a 2-year buying spree. Germany will eliminate
DDeutsche Post’s monopoly on mail delivery in 2003, which will inevitably lead to
a loss of significant revenue. It hopes to replace lost sales with international transport
business. Customer demand, more than postal deregulation, is driving Deutsche Post’s
vision. “More and more customers are seeing the advantage of directly working with
their suppliers,” says Klaus Zumwinkel, CEO of Deutsche Post. They will not use only one
supplier, but they will choose from a few suppliers. To be one of those suppliers, one has
to be global. One cannot say, ‘Well, in Africa business is so complicated. Please, mister
customer, we would love to have United States and Europe, but in Africa we do not have
Contd...

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