Global Logistics Modes: Features and Regulations
Road Transport (ROAD)
Wide coverage: It is the only mode allowing door-to-door service.
- Adaptability: Wide variety of vehicles for all types of cargo.
- Simplicity and speed: Allows direct contracting with users.
- Competitive rates: Subject to load and schedule limitations.
- High competitiveness: Many companies, but return loads can be problematic for long distances (>2500 km).
Regulations and Documentation
National / Nacional
Commercial Code, LOTT, ROTT, LCTTM.
International / Internacional
- CMR Convention: Governs the international road transport contract and the CMR consignment note.
- TIR Convention: International customs transit system using sealed containers.
- ADR: Agreement for the transport of dangerous goods.
- ATP: Agreement for the transport of perishable goods.
Liability Limits
Loss and Damage: 8.33 SDR/kg
DELAY: Transport price
Key Intermediaries
- Transport Agencies: Intermediaries for national road transport contracting.
- Freight Forwarders: Organize international transport on behalf of third parties.
- Logistics Operators: Manage and control the supply chain for clients.
- Warehouse Distributors: Store and distribute goods belonging to others.
Essential Documentation
- CMR Consignment Note: The international transport contract.
- Commercial Invoice & Packing List
- Load Order: Specifies the work the carrier must perform.
- TIR Carnet: For simplified customs transit.
- ADR Declaration & ATP Certificate: For dangerous and perishable goods, respectively.
- Administrative Control Document: For national transport, identifies parties in the contractual chain.
Sea Transport (Maritime)
Advantages
- Higher capacity: Unmatched volume and weight capacity compared to other modes.
- International reach: Connects the entire planet via maritime routes.
- Flexibility: Different vessel types for various cargoes (containers, bulk, tankers, reefers).
- Relatively cheaper rates: Cost-effective for large volumes, though subject to market volatility (e.g., post-COVID increases).
Regulations and Documentation
National / Nacional
Commercial Code (Arts. 706-718), Ley de Navegación Marítima (14/2014).
International / Internacional
- Hague-Visby Rules: The most widely used convention (liability, bills of lading). (Composed of Brussels Convention and the Hague-Visby Rules).
- Hamburg Rules: Minority application, UN Convention 1978.
- Rotterdam Rules: UN Convention 2008 (not yet in force; Spain was the first to adhere).
- IMDG Code: For dangerous goods.
- ATP: For perishable goods (sea crossings <150 km).
Vessel Types
- For solid loads: Bulk carriers, container ships.
- For liquid loads: Tankers (oil, chemical, LNG).
- For perishable loads: Reefer vessels/containers.
- For general/neo-bulk: Multipurpose, RO-RO, general cargo ships.
Maritime Agents
- Freight Forwarder: Organizes international shipments.
- Customs Broker: Clears goods through customs.
- Ship Agent: Represents the ship owner, handles loading and unloading.
- Ship Broker: Intermediary between shipowner and cargo owner.
- Correspondent: Assists with claims/issues in foreign ports; ensures economic stability.
Key Documentation
- Bill of Lading (B/L): Contract of carriage, receipt, and document of title (negotiable).
- Sea Waybill: Non-negotiable transport document; simpler, used with trusted parties.
- Master B/L (MBL) vs. House B/L (HBL): M: shipping line-freight forwarder, H: freight forwarder-final customer.
- Other documents: Commercial invoice, packing list, certificate of origin, customs clearance, IMDG declaration, ATP certificate, waiver (for some African countries).
- Cargo Release Methods (liberación de la merca):
- Cargo Release: Releasing the merchandise after all necessary documents are presented.
- Telex Release: Original B/L exists, but an electronic copy suffices for delivery.
- Express Release: No physical B/L exists (only for high-trust relationships).
Rail Transport (RAIL)
Features
- Large capacity: European trains can carry up to 1,800 tonnes and be 700m long.
- Internationality: Allows international routes, though limited in Spain by infrastructure differences.
- Specialisation & Low cost for long distances: Competitive for specific products over long hauls.
- Reliability and safety: Very low accident rate.
- Low pollution: Promoted by the EU.
- Intermodality: Can be combined with road transport.
Regulations and Documentation
National / Nacional
Commercial Code, LOTT, ROTT.
International / Internacional
- COTIF – CIM Convention (1980, updated 1999): Governs the international rail transport contract.
- TIF Convention: For sealing/customs transit.
- RID: Regulations for the transport of dangerous goods by rail.
- ATP: For perishable goods.
Documentation
- CIM Consignment Note: The transport contract. Can be electronic. One note per consignment, 6 copies issued.
- TIF Carnet: For customs transit under the TIF Agreement (TIR).
- Other documents: Commercial invoice, packing list, RID declaration, ATP certificate.
Air Transport
Key Attributes
- Speed, punctuality, and accurate traceability: Allows global delivery within 24 hours.
- Administrative agility: Fast processes with minimal delays.
- Safety: Lowest accident rate.
- Wide network coverage: Reaches remote locations inaccessible by other means.
- Flexibility: Range from small aircraft to large freighters (e.g., Boeing 747, Airbus 380).
- Disadvantages: Technical constraints, size/weight limitations, and high cost.
Regulations and Documentation
National / Nacional
- Ley 48/1960 de Navegación Aérea
- Ley 21/2003 de Seguridad Aérea. Preserves the safety and fluidity of air traffic.
- Real Decreto 1180/2018 Develops the air regulation.
International / Internacional
- Montreal Convention (1999): Rules for international air transport (replaced Warsaw Convention).
- IATA Dangerous Goods Regulations (DGR): Based on ICAO Technical Instructions, and ATP.
IATA Agent Role
IATA Agent: Authorized by IATA to sell airline cargo space, issue AWBs, and ensure the legal security of the operation. Handles >90% of international air cargo.
Main Documentation
Air Waybill (AWB): Contract of carriage. Crucially, it is NOT a document of title (non-negotiable). Goods are delivered to the named consignee.
Conocimiento Aéreo: Contrato de transporte. NO es título de propiedad (no negociable). La mercancía se entrega al consignatario nombrado.
- Master AWB (MAWB) vs. House AWB (HAWB): Issued by the airline vs. issued by the freight forwarder/IATA agent.
- Conocimiento Aéreo Principal (MAWB) vs. Conocimiento Aéreo de Transitario (HAWB): Lo emite la aerolínea vs. el transitario/agente IATA.
- Other documents: Commercial invoice, packing list, certificate of origin, customs clearance, DGR declaration (for dangerous goods), ATP certificate.
Variables in Transport Decisions
- Distance / Distancia: Directly influences cost and time. Longer distances mean higher fuel, tolls, and vehicle wear.
- Transport Mode / Modo de Transporte: Each mode (road, sea, air, rail) has different capacities, costs, delivery times, and suitability.
- Cargo Characteristics / Características de la Carga: Size, weight, type (bulk, containerized, perishable, dangerous) determine the most suitable mode.
- Required Delivery Time / Tiempo de Entrega Requerido: Urgency dictates mode choice (air = fastest/most expensive, sea = slowest/cheapest).
- Costs / Costos: Include fixed (infrastructure) and variable (fuel, tolls) costs. Land transport has low fixed but high variable costs.
- Supply and Demand / Oferta y Demanda: Affects freight rates (prices).
- Fuel Price / Precio del Combustible: Major variable cost component, especially for air and road transport.
- Available Infrastructure / Infraestructura Disponible: Determines viable transport options in each region.
- Regulations and Restrictions / Regulaciones y Restricciones: Driving hours, maximum weights, customs, security, and environmental rules impact operations.
- Characteristics of the Final Destination / Características del Destino Final: Accessibility and logistical development influence the choice.
Normalization of International Transport (AEO)
Authorized Economic Operator (AEO)
An Authorized Economic Operator (AEO) is a certification granted by customs authorities to reliable, secure, and compliant companies involved in international trade and supply chain operations. It is based on the Customs-to-Business partnership framework developed by the World Customs Organization (WCO). Any economic operator established in the EU customs territory and engaged in international trade activities may apply for AEO status.
Types of AEO Certification
AEOC – Customs Simplifications
Focuses on benefits related to simplified customs procedures and fewer documentary controls.AEOS – Security and Safety
Provides advantages linked to security measures, such as reduced physical inspections and priority treatment during controls.AEOF – Full Authorization
Combines both AEOC and AEOS benefits, offering the highest level of facilitation and trust.
Main Benefits of AEO Status
Reduced Controls, Priority Treatment, Simplified Procedures, International Recognition, Enhanced Reputation