TRANSPORTATION AND

FREIGHT FORWARDING
III.
Water transportation - River transportation

2024/2025 I.
Zoltán Domboróczky, PhD.
 Advantages Disadvantages
- the ability to transport large - relatively long lead times
quantities of goods at a time - the goods need to be brought to
- least environmental impact the port and loaded or unloaded
compared to other transport - affected by weather and
modes environmental conditions
- the lowest specific energy - too high or too low water levels,
consumption frost, ice and ice drift affect
- suitable for transporting almost navigability
all types of goods - the largest volume of freight
- relatively flexible tariffs traffic compared to other
transport sectors

CHARACTERISTICS OF RIVER
TRANSPORTATION
 Sails or barges with a carrying capacity of 600-2500 t
 Self-propelled barges with the machinery incorporated in the
barge hull
 Tugs, which move the barges by towing (several barges may
be towed together at the same time)
 Pusher barges, which move the barges by pushing (several
barges can be pushed simultaneously by coupling)

VEHICLES OF RIVER
TRANSPORTATION
 Vehicles of river
transportation

• Pusher barges, which move the barges

by pushing (several barges can be push
simultaneously by coupling)
 Vehicles of river
transportation

• Tugs, which move the barges by towing

(several barges can be tow at the same
time)
 Vehicles of river
transportation

• Sails or barges with a carrying capacity of

600-2500 t
 Vehicles of river
transportation

• Self-propelled barges with the machinery

incorporated in the barge hull
 Paris Convention (1856) - The first time the use of the Danube as an
international shipping route was established, the Convention was
signed by all the Danube countries plus England and France.
 Belgrade Convention (1948) - Signed only by the Danube countries
and ratified by Hungary in 1949. In contrast to the Paris Convention,
the Belgrade Convention stated the exclusive right of the Danube
countries to determine the conditions of transport on the Danube,
while recognising the principle of freedom of navigation on the
Danube, according to which ships of any flag may sail on the Danube,
provided that the relevant rules are observed.
 The Belgrade Conference established the Danube Commission, based
in Budapest.

INTERNATIONAL REGULATION OF
FREIGHT TRANSPORT ON THE
DANUBE
 Bratislava Convention (1955) - The Danube shipping
companies of Austria, Bulgaria, Czechoslovakia, Hungary, the
GDR, Yugoslavia and the Soviet Union agreed that, in
international trade, unless special provisions are made for
individual consignments, the conditions of carriage are
regulated by the
Convention as follows:
 Conditions of Carriage of Goods on the Danube
 Uniform Customs Tariff Convention
 Mutual Towage and Agency Service

 Budapest Convention (2001) - Interstate Convention on the

Contract for the Carriage of Goods by Inland Waterways
(CMNI), which applies to both the Danube and the Rhine
Carrier's responsibility:
Forwarding the goods to their destination
To deliver the goods to the consignee within the time limit and in
the condition in which they were received (if no time limit is
stipulated in the contract: within the time expected of a diligent
carrier)

CMNI – INTERNATIONAL REGULATION OF

THE CARRIAGE OF GOODS ON THE
DANUBE
Sender's obligation:
 Pay the amount due under the contract of carriage
 To provide the carrier with written details of the goods to be
carried at least 24 hours before delivery of the goods
 Give the carrier all necessary accompanying documents at the
time of delivery of the goods
 Pack the goods in such a way as to prevent loss or damage
from the time of their receipt by the carrier until delivery and
so as not to cause damage to the ship or other goods
Freight document:
 May be a waybill or, by agreement, a bill of lading
 Issued by the carrier
 The carrier may make a reservation on account of the weight,
number of items and external condition of the goods
Cause: opening of the DMR (Danube-Main-Rhine) canal
Hungarian-German Convention on Inland Navigation (1989) - regulation of
traffic rights
Only ships from the two countries can sail between the ports of the two
countries
Third country vessels only with special permission
Prohibits (makes subject to special authorisation) carriage to third
countries
German vessels cannot be excluded from traffic via the DMR canal, which
is considered as transit traffic from a German point of view
Carriage is based on an agreed tariff (but these are only guide rates)

BILATERAL SHIPPING CONVENTIONS

Hungarian-Dutch Inland Navigation Convention
No tariffs have been established for the Dutch-Hungarian traffic,
so the tariffs will be set on the basis of an agreement between
the shippers and the shipping companies, depending on the
development of the transport market
The ADN indicates:
 Dangerous goods that are excluded from international
transport
 Dangerous goods whose international transport is permitted
and the conditions (including exemptions) prescribed for their
carriage, in particular:

INTERNATIONAL INLAND WATERWAY

TRANSPORT OF DANGEROUS
GOODS(ADN)
 Classification of goods, including classification criteria and
relevant test methods
 The use of packaging (including wrapping)
 The use of containers (including filling)
 Consignment procedures (including marking and labelling of
packages, marking and labelling of required means of
transport, marking of vessels, and required documents and
information)
 Requirements for the manufacture, testing and approval of
packaging and containers
 The use of means of transport (including loading, stacking and
unloading)
SEA TRANSPORT
 Advantages Disadvantages
- High massiveness - Long delivery time
- The only solution for bulk - Significant impact of goods
transport between continents
- Coastal shipping as an alternative - Significant infrastructure needs
to land transport for continental and the need to transport up and
freight down

FEATURES OF MARITIME
TRANSPORT
 Maritime transport is a key operator of freight transport
between continents.
 In 1958, the UN Conference on the Law of the Sea confirmed
the freedom of navigation for all merchant ships:
• Unimpeded passage at sea,
• Free access to seaports,
• Free access to all ports of the sea, free from all forms of
commercial traffic,
• Free movement of goods.

FREEDOM OF NAVIGATION AT SEA

 Territorial waters/Coastal seas
The coast of a country is considered territorial waters, where the
laws of that country apply. Traditionally, the territorial sea is
three nautical miles. Countries that have signed the relevant UN  Economic zone
convention can extend it up to 12 miles (1 nautical mile is 1853
m) The seas within 200
 nautical miles of a
Open seas
coastal country
The sea adjacent to the territorial sea is the high seas, where the constitute an
principle of freedom of the seas applies. economic zone,
available for the
exclusive economic
use of the coastal
country concerned.
ALLOCATION OF MARITIME AREAS However, this does
not affect freedom
of navigation.
 Speed
Container ships now travel at an average speed of 60 km/h.
 Capacity
General cargo ships have a carrying capacity of up to 15,000 tonnes, dry bulk
carriers have a capacity of 70,000 to 80,000 tonnes and tankers carrying crude oil
have a net carrying capacity of 550,000 tonnes.
 Frequency
Timetables are very varied, with frequent departures on the main routes.

QUALITY-QUANTITY
CHARACTERISTICS OF SHIPPING
 Reliability
In terms of departure punctuality and regularity, liner shipping has made a lot of
progress in recent years, although it is not possible to count on departure and
arrival times that are generally given by the hour.
 Safety
Container shipping in particular is well on the way to achieving an optimum level of
safety. Nevertheless, the risks to goods in maritime transport are still quite high. It
should be taken into account that the pre- and post-carriage stages associated with
sea legs may also involve risks to goods.
Vessels carrying dry goods:
 General cargo ships - mainly liner ships, carrying traditionally packaged goods (crates,
bags, barrels, crates)
 Bulk carriers - ships carrying bulk cargoes (ore, coal, grain, phosphate)
 Livestock carriers - ships with partitioned compartments, equipped with livestock carriers
 Reefer cargo carriers - vessels carrying perishable goods (fruit, vegetables, frozen goods)
 Car carriers
 Vessels carrying large and special cargoes (heavy cargo carriers)
 Container ships - ships carrying containers, large containers

TYPES OF SEAGOING COMMERCIAL

SHIPS
Types of seagoing
commercial ships

Vessels carrying dry goods:

• General cargo ships - mainly liner ships, carrying
traditionally packaged goods (boxes, bags, barrels,
crates)
Types of seagoing
commercial ships

Vessels carrying dry goods:

• Bulk carriers - ships carrying bulk cargoes (ore, coal,
grain, phosphate)
Types of seagoing
commercial ships

Vessels carrying dry goods:

• Livestock carriers - ships with partitioned
compartments, equipped with livestock carriers
Types of seagoing
commercial ships

Vessels carrying dry goods:

• Reefer cargo carriers - vessels carrying perishable goods
(fruit, vegetables, frozen goods)
Types of seagoing
commercial ships

Vessels carrying dry goods:

• Car carriers
Types of seagoing
commercial ships

Vessels carrying dry goods:

• Vessels carrying large and special cargoes (heavy cargo
carriers)
Types of seagoing
commercial ships

Vessels carrying dry goods:

• ships - ships carrying containers, large containers
• Multi-purpose vessel - a vessel capable of carrying
containers and traditionally packaged goods or vehicles
• Ro-ro vessel (roll on- roll of vessel) - Vessels capable of
carrying trailers of goods vehicles on their own feet
• Barge carrier - a vessel that functions as a mother ship and
is capable of carrying river vessels loaded with goods
• LASH - operate with lighter aboard ship
• BACO - they operate with a floating system and can carry
containers in addition to barges (barge container vessel)
• Tugs (tugboats) - used for towing at sea and for moving
seagoing vessels within a port
Vessels carrying liquid cargoes:
- Vessel carrying other liquid
products (e.g. spirits) (cargo
carrier)
Vessels carrying liquid cargoes:
- Mixed multipurpose vessel
(ore/oil or ore/bulk/oil carrier) -
vessels capable of carrying bulk
and/or crude oil
Vessels carrying liquid cargoes:
- Vessel capable of carrying liquid
gas (gas carrier)
Vessels carrying liquid cargoes:
- Liquid chemical tanker
Vessels carrying liquid cargoes:
- Crude oil tanker
 Multi-purpose vessel - a vessel capable of carrying containers and traditionally
packaged goods or vehicles
 Ro-ro vessel (roll on- roll of vessel) - Vessels capable of carrying trailers of
goods vehicles on their own feet
 Barge carrier - a vessel that functions as a mother ship and is capable of
carrying river vessels loaded with goods
 LASH - operate with lighter aboard ship
 BACO - they operate with a floating system and can carry containers in addition
to barges (barge container vessel)
 Tugs (tugboats) - used for towing at sea and for moving seagoing vessels within
a port
Vessels carrying liquid cargoes:
- Crude oil tanker
- Liquid chemical tanker
- Vessel capable of carrying liquid gas (gas carrier)
- Vessel carrying other liquid products (e.g. spirits) (cargo
carrier)
- Mixed multipurpose vessel (ore/oil or ore/bulk/oil carrier) -
vessels capable of carrying bulk and/or crude oil
CHARACTERISTIC DATA OF
SEAGOING COMMERCIAL VESSELS
Capacity to absorb - The capacity of a vessel expresses the amount of cargo
space it has. Two systems are used for this:
 Register tons (old traditional system)
 English unit of measurement, one register ton = 100 cubic feet (cbf) = 2.83 m3
 A distinction is made between the gross and net register ton capacity of
vessels.
 Gross - the total space capacity of a vessel, the sum of all spaces for cargo,
fuel, machinery, crew.
 Net - the volume of space available to accommodate cargo.
Volume (from 1982)
 In 1982 the new tonnage convention came into force. Since
then, countries which have acceded to the conventions have
used this unit. A distinction is made between gross and net
tonnage.
 Gross - the total volume of a vessel in cubic metres multiplied
by the conversion key for the type of vessel.
 Net - the useful volume of the vessel, in cubic metres,
multiplied by the conversion rate for the type of vessel.
Carrying capacity
The carrying capacity of a vessel is the ability of the vessel to be used in terms of
its loaded weight (tonnage).
 Gross - Expresses the total carrying capacity of the vessel, including the weight
of cargo, fuel, machinery, equipment.
 Net - Indicates the dead weight cargo capacity (dwcc)
The knowledge of the deadweight capacity of a ship is particularly important
when chartering a ship for the carriage of bulk cargo by sea.
Flag of seagoing vessels
 Sea-going vessels must be registered in the shipping register of a country. At the
time of registration, the vessel is given the nationality of the registering country,
which is indicated by the national flag to be used.
 The ship is subject to the legislation of the flag state.
 The vessel enjoys the diplomatic protection of that country.
 Flag and registration rights are determined by the laws of each country.
It must be entered in the shipping register:
 The name of the vessel,
 Type,
 Date of launching,
 Size data,
 Owner.
Classification of seagoing vessels
 Regardless of their flag, seagoing vessels must comply with modern maritime
requirements. This is the purpose of the internationally recognised classification
societies, which are members of the International Association of Classification
Societies (IACS)
 One of the oldest and best known classification societies is LR Lloyd's Register of
Shipping, London (1760)
Functions of classification societies:
 To make standards for the construction of ships, based on
experience and research,
 To supervise the construction and fitting out of ships,
 Continuous monitoring of the condition of ships already in
service, with the aim of documenting to the public the
seaworthiness and technical safety of seagoing ships
It is characterised by:
 On a defined route,
 Between specified ports,
 Scheduled,
 On the basis of a fare scale,
 They operate under conditions of carriage.

LINER SHIPPING
 Shipping conferences are free, cartel-like groupings of liner
shipping companies from different countries, depending on
their geographical location.
 The conferences aim to achieve predictable, stable revenues
by limiting competition between shippers. This naturally
reduces the possibility for carriers to set their rates in the
spirit of market laws.
 Conferences develop their own tariffs for their own relations.

SHIPPING CONFERENCES
 Obligations of the shipping company (carrier):
 To keep the ship to be loaded in a seaworthy condition before loading and
during the voyage
 Keep the cargo holds of the ship in a condition suitable for the reception and
storage of the goods
 Carefully handle the cargo from loading to unloading
 Deliver the cargo to the consignee at the port of destination in a timely and
orderly manner

CONTRACT OF CARRIAGE IN LINER

SHIPPING
 Shipping Agent (Agent)

Freight agent operations:

 Cargo acquisition, contract brokerage
 Issue of bill of lading
 Invoicing, collecting freight
 Carriage of cargo, freight forwarding, freight forwarding,
invoicing
 Shipper - mostly a port forwarder, as primary carriers do not have their own
representation in the port)
Obligations:
 To deliver the goods to be carried to the ship on time and in good order, and to
hand them over to the shipping company
 To pay the ocean freight and incidental charges (in case of prepaid bills of
lading)To represent the principal's interests vis-à-vis the shipping company
 Hague/Visby Regulations Hamburg Regulations
Liability of the skipper From departure to arrival From port to port
crane landing
Goods on board Limited responsibility Full responsibility
Delay Not responsible Responsible by the agreed
deadline
Validity For sailing on B/L basis only For sailing under any contract
of carriage
Damage caused by staff Not responsible responsible
Second mate (skipper) liability Responsible from takeover Not responsible, just the first
skipper on the entire route
Liability deadline 1 year 2 years
Liability to pay compensation 2 SDR/kg or 666,67 SDR/pack 2,5 SDR/kg or 835 SDR/pack

INTERNATIONAL REGULATION OF
MARITIME NAVIGATION
RESPONSIBILITIES IN MARITIME
SHIPPING
Liability of the shipping company
Seaworthiness of the ship
Cargo capacity of the ship
Proper handling of goods
Damage and loss of goods between receipt and delivery

Exemptions
If the damage is due to marine perils and accidents
In case of war, riots, superior authority regulations
Strikes, obstruction of loading
If the damage is the result of the actions of the consignor or the consignee
Loss of life and property at sea
If the damage is caused by the special characteristics of the goods
The consignor/carrier is liable for any damage caused by:
The packaging of the goods handed over for shipment was incomplete
Dangerous goods were loaded on board without prior notice
The part of the bill of lading relating to the goods was incorrectly declared
Goods prohibited for import, transit or export have been loaded on board
Joint damage - On the high seas, the ship and cargo are jointly at risk
Prerequisite - the sacrifice or special cost must be:
Extraordinary in nature (normal cost or damage excluded)
Deliberate (accidental damage excluded)
Both the ship and cargo are at risk at the time of general peril
Reasonably incurred
Incident of a maritime nature
In the interest of common general safety
Concerning a real danger (imaginary danger excluded)
Successful in saving some of the interests involved
The cost of the common damage is shared between the ship, the cargo and the
maritime freight on a pro rata basis.
Constitutions (UN, International Maritime Organisation)
International Convention for the Safety of Life at Sea 1974 (SOLAS’74)
International Convention for the Protection of the Marine Environment (MARPOL’73)

Dangerous goods in parcels: IMDG Code (1980)

Bulk cargo:BC Code

MARITIME TRANSPORT OF
DANGEROUS GOODS (IMDG CODE)
 Transport of dangerous goods in a different way from the IMDG Code is
prohibited
 IMDG Code:
 Classifies dangerous goods into 9 classes
 All goods are identified by a United Nations number (UN-No)
 Dangerous goods are packaged in an annex to the Code
 The packaging must be marked with an identification mark
 (Coding: packaging type marked 1 to 6, packaging design marked A to P)

SOLAS’74
 It regulates two legal relationships:
 Contract of carriage between the carrier and the skipper
 A legal relationship between the carrier and the consignee
 Functions:
 Evidence of the conclusion of a contract of carriage between the shipping company and the
carrier
 Receipt by the carrier of the goods accepted for shipment
 Promise by the shipowner to ship the goods from the specified port to the specified port
 Undertaking by the shipowner to deliver the goods to the lawful consignee against an original
bill of lading
 Security representing the goods shipped and negotiable

BILL OF LADING (B/L)

Contents of a bill of lading
Front page:
 Identification number of the bill of lading
 Voyage number
 Name of the shipper
 Name of consignee
 The bill of lading made out to "order" must indicate the address "to be advised
 Name of vessel
 Name of port of loading
 Name of port of landing
 Number of the original bill of lading (usually issued in 2 or 3 copies)
 Data relating to goods, packaging

1 original bill of lading is required to deliver the goods (the others are invalid)

Back page - conditions of carriage

Place and date of receipt of goods
Ship's bill of lading "on board" (proving that the skipper has taken
delivery of the goods)
Bill of lading "received for shipment" (acknowledgement by the
skipper that the goods were received on the quay)

By condition of goods or packaging

Clean bill of lading "clean" (immaculate packaging)
Unclean" bill of lading (substandard packaging - not accepted by
bank)

VARIETIES OF B/L
 By method of transfer
 Consigned to" - at the port of destination, the goods can only be redeemed by the
named consignee, who may waive the right to redemption in favour of a third
party
 Consigned to order (transfer by rotation) - two forms: to order of XY or without
designation (to order); rotation can be either full rotation (with a note to order of
XY) or blank rotation (dated, signed)
 Bill of lading for groupage - groupage bill of lading (consolidation B/L) for the own
use of port forwarders in sea groupage; for the use of principals in the form of a bill
of lading (consolidation B/L). House bill of lading (house B/L)
 Multimodal mode of transport - through B/L not carried by the same carrier to the
port of destination, ship/road or ship/rail or river/sea
 Delivery order - for the delivery of goods consigned by a bill of lading to several
consignees, issued by a shipowner or his agent at the request of the bill of lading
holder, non-transferable document
 Mate’s receipt - issued when the bill of lading is issued later
 Sea waybill - for containerised transport
 Express Relaease Bill or Express Cargo Bill - for containerised transport

OTHER SHIPPING DOCUMENTS

Traditional trade in goods
Weight rate: independent of the volume of the goods (W (weight) notation)
Volume rate: independent of the weight of the goods (M (measurment) notation)
Weight/volume rate: weight/volume ratio of the goods (W/M notation based on the
metric number)
Rate per value: in % of the value of the goods
Minimum freight rate: for small loads
Ro-Ro freight rate: by length of vehicles
Containerised cargo (separate rates for 20' and 40' containers) - commodity box
rate (CBR) or freight all kinds (FAK)

CALCULATION OF MARITIME TARIFFS - CALCULATION OF

TARIFFS BASED ON THE TARIFFS OF SHIPPING COMPANIES
OR CONFERENCES
 1 tonne of goods 1 m3 volume = 1x
 1 tonne of goods 3 m3 volume = 3x
 2 tonnes of goods 1 m3 volume = 2x

WEIGHT/VOLUME RATE (W/M)

Characteristics: occasional use of chartered vessels

Time charter - charterer uses the vessel for a fixed period of time, crew usually
provided by the vessel owner (if not a "bare hull" charter), charterer has ownership
rights for the duration of the charter
Trip charter - transport of specified goods between specified ports, costs of
operating the vessel are borne by the shipowner

CHARTER SHIPPING
Vessels for the carriage of dry bulk cargo
Tankers (transport of oil, liquid products)
Multi-purpose vessels (dry and liquid cargo)
Special purpose vessels (live animals, refrigerated goods, plant
equipment)

CHARTER SHIPPING – TYPES OF

SHIPPS