BEMAR, international logistics operator
Tools for international trade
The logistics chain
In a globalized environment, logistics chains compete alongside products. They require the cooperation of manufacturers, distributors and logistics operators to achieve the highest efficiency and lowest possible cost in each product with the requisite availability and flexibility.
In turn, logistics chains are articulated through specialized and high-capacity intermodal logistic nodes and transport networks.
The cooperation between the companies that intervene in the same supply chain also makes it possible to optimize resources, minimize stocks and reduce lead times.
In this framework, information and communication technologies (ICT) are an essential element for the management of information flows, product traceability and the development of electronic commerce.
The complexity of operations in international trade makes the support of a global logistics operator essential so that the exporting company can focus on developing its competitive advantages.
Logistics in international trade
The programming of the logistics chain must be foreseen from the moment in which the company decides to export or import a product. It affects both the design of the packaging materials as well as the terms of delivery that will be agreed in the contract of sale, among other things.
In addition to the specific costs of any logistics operation, the main elements that must be considered are:
- Nature and characteristics of the merchandise.
- Unit load.
- Mode of transport.
- Transportation process.
- Legislation and regulations.
- Logistics in the international contract of sale.
Nature and characteristics of the merchandise
These determine the configuration of the unit load, the mode of transport that should be used and the storage and handling systems. It is worth making a distinction between:
- General cargo in loose units (partial load) or grouped in pallets (palletized load). Mainly transported in containers.
- Bulk cargo. This can be transported in containers or other cargo transport units, in bulk carriers, gas carriers, tankers, etc.
- Special load. Due to its size, weight, volume, etc., it requires special handling or transport conditions.
- Temperature controlled cargo. It may be refrigerated, frozen, deep-frozen or hot.
- Dangerous goods. Particularly those included in the international regulations: ADR Agreement, IMDG Code, IATA DGR Rules and RID Agreement.
- Roll-on/roll-off cargo. Comprised of platforms that slide on wheels, semi-trailers, trucks, wagons, etc.
- Other merchandise, such as valuables or live animals.
Unit load
This must possess two basic qualities – resistance and stability, which are achieved through the products’ packaging materials.
The partial load is usually grouped on pallets that, once shrink-wrapped, comprise an individual unit load that makes the handling and storage of the merchandise easier, increases its safety and contributes to a more efficient handling.
Pallets are mainly transported in cargo transport units (CTU) made for use in intermodal transport, whose most usual manifestation in international trade is the container.
The filling or consolidation of the container, in accordance with the regulations on stowage and cargo securing, can be carried out by the exporting company or the logistics operator, resulting in a complete container (full container load or FCL) or a groupage container (less than container load or LCL).
Mode of transport
Choosing the mode of transport is conditioned by factors such as the country of destination, the nature, value and volume of the merchandise and the planned delivery time.
BEMAR will advise you on the itinerary and the mode or combination of transport modes (intermodal transport, under a single transportation contract) that must be taken out for each leg of the journey:
Road:
the contract is formalized in the CMR consignment note, regulated by the CMR Agreement.
Railway:
formalized in the CIM consignment note, regulated by the CIM Agreement.
Maritime:
regulated by the Hague Rules, the contract is formalized in the bill of lading.
Air:
regulated by the Montreal Convention, the contract is formalized in the air waybill (AWB).
Although most containerized goods travel by scheduled service container ships on transcontinental journeys, there are certain goods that travel by air (temperature controlled products, valuable products, live animals, spare parts, etc.), while transportation within the same continent is mainly done by truck or rail.
Transportation process
Although the casuistry is very diverse, in international transport there are some common elements:
- Signing of the transport contract between the loading company, exporter or importer (as agreed in the contract of sale and fixed by an Incoterms rule) and the international logistics operator.
- Collection of the goods in the exporting company’s warehouse, usually by a road vehicle, headed for the transport terminal (full container) or to the logistics operator’s warehouse (partial load).
- Handling and storage in the operator’s logistics platform or in the transport terminal.
- Loading and stowage on the means of transport, after customs processing at the departure terminal.
- Transportation of the merchandise on the main means of transport.
- Unloading and deboarding at the destination terminal and import customs processing.
- Handling and storage in the transport terminal or in the logistics platform of the international transport operator.
- Transfer of the merchandise (full container) to the warehouse of the importing company. If it is a partial load, it is necessary to deconsolidate it from the container beforehand.
Legislation and regulations
BEMAR will advise you on the applicable legislation and regulations for each export or import transport operation, issues that concern the loading company exclusively:
- Stowage and securing of cargo.
- Storage and transport of dangerous goods.
- Storage and transport of perishable goods or products for human consumption.
- Transport of protected species.
Logistics in the international contract of sales
There are aspects of logistics that it is important to assess and plan before taking on risks and responsibilities in the contract of sales, such as:
- Specify the exact delivery point agreed in the destination country.
- Consider the physical risks of the operation (weather, theft, looting, etc.).
- Most appropriate Incoterms rule to suit the operation’s logistics complexity.
- Manage transportation through an international logistics operator.
- Have insurance coverage throughout the entire transportation process.
