SMALL WORD BIG MEANING
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BY A SPECIAL CORRESPONDENT IN THESE DAYS of four-letter words there is an eight-letter word which is little understood by those people whom it mostly concerns and yet forms a very reasonable percentage of export and import shipping. The word is, of course"groupage".
The use of international road trailers is in its infancy—but it is a very healthy child! There have been a number of companies which have progressed from the full-load traffic to the handling of groupage. Each has met with varying success.
But what are the opportunities open to the shipper in Britain who delivers these goods to the Continent by groupage on the direct road trailer system.
Each operator is faced virtually with the same possibilities and difficulties. Basically speaking, there are 34 main TIR depots: Rotterdam. Amsterdam. Antwerp, Brussels, Ghent, Liege, Courtrai, Paris, Dusseldorf, Cologne, Hamburg, Hanover, Berlin, Frankfurt, Stuttgart. Munich, NUrnberg, Salzburg, Linz, Graz. Vienna, Basle, Zurich, Lucerne, Lausanne, Copenhagen, Frederikshavn, Helsingborg, Gothenburg, Stockholm, Barcelona, Milan, Genoa, Turin.
Shipping from Britain the international road haulier can use the roll-on /roll-off ports to connect with the trunk system servicing these TIR depots, the main ports used being Antwerp and Rotterdam. The services from Rotterdam are somewhat superior to the services from Antwerp.
The operator then bulks these loads in Britain into full trailer loads, despatching them under the TIR carnet system through to his partner's depot on the Continent where the trailers are broken down under Customs supervision in the Rotterdam TIR depot, re-loaded to the trunk vehicles within that same depot still under Customs supervision, and despatched through to the TIR centres nearest to the delivery destination.
The road haulage operator then has the choice of either completing a door-to-door delivery system on groupage, or taking the goods only to the nearest TIR depot. In the latter case Customs clearance and delivery from that depot to consignee's premises form the basis of a separate contract between the TIR depot staff and the consignee. Both methods are used, as stated, with varying success.
One factor important to the British exporter is that Continental Customs facilities are superior to Britain's in that goods on arrival at TIR stations can be cleared through Customs and delivered with a minimum of wasted time. And in so far as the British export Customs are these days only a formality the international road trailer groupage system does lend itself for the efficient and speedy carrying of goods to the Continent.
Not groupage minded
The fault with this, however, is that the British public is not groupage minded, neither are the British Customs. While basically as regards export the Customs attitude does not seriously affect the efficient flow of goods, it is only now that we are seeing the growth of the inland clearing centres where export traffic will also be grouped for despatch. While the centres have been talked about for some little time they are not yet really in operation.
On the other end of the scale is the Continental shipper who is groupage minded, both rail and road, and avails himself of any opportunity to transact business with a reputable carrier in despatching his small parcels to Britain. Here the British road operator really gets into difficulties—only by the sheer expertise of his staff and constant "living with the job" do the goods get cleared through Customs and delivered with any sort of efficiency.
The goods can soon be moved quickly from the Continent to Britain but with most imports the road haulier or the clearing agent still needs that bugbear of British import documentation, the Customs form C.105. Even in the best regulated families, nine times out of ten the goods will arrive
in Britain before the C.105 can be obtained from the importer. This then means that the many consignments on the trailer must be off-loaded, the roll-on /roll-off ferry berths offering no facilities in this connection. Therefore the road haulier must obtain a clearance depot other than in the port area and many companies avail themselves of facilities which have been offered by wharf owners, etc., who have not obtained the inland clearing centres but have merely obtained an extension of already existing waterside Customs privileges to roadside traffic. As such these depots are mostly in the old part of London which is not suitable for the TIR-type vehicles; mostly it is dock labour employed which is not a good thing, and the charges are fairly high. An exception is LIFT at Stratford, which despite union problems is beginning to get underway. But here again the costs are very high.
As regards import groupage, the international road operator on receipt of his trailer is then required to contact the consignees to obtain their clearing instructions as to whether they require the road haulier to clear Customs and deliver on his behalf, elect for a shipping agent to clear the goods and deliver, or get the clearing agent to clear the goods but want the road haulier to deliver. With several consignments on one groupage trailer the problems are quite complex.
Where possible groupage information will have been passed by telex before shipment and some consignees will have been contacted for instructions and clearance papers. But it is impossible for all goods to be cleared immediately, nor is it possible except under ideal circumstances always to have this information before arrival of the trailer.
Export by road trailer
With regard to the export of groupage by road trailer, several companies operate in the international road trailer field who are capable of giving a service. A very few have really gone into groupage field and are thus able to offer regular departures with collating points in the UK, mostly in the London area.
Where Customs bonded premises are not required for the collation of export groupage, then the difficulties which exist with import groupage disappear. All that is required from the shipper's point of view is merely to contact one of these operators and instruct him to collect for shipment. That is providing that he is operating a door-to-door groupage system, or as is usually more convenient, for the manufacturer to deliver his goods, possibly on his own vehicles into the groupage collation point with a letter of instructions to the road haulier as to what are his requirements for shipping and delivery.
From the export shipper the international road haulier requires a minimum of two copies of the shipping invoice, and if necessary, the Customs form CD6, or if the goods are being exported under drawback the necessary Customs shipping bill; goods shipped under drawback loaded into a trailer with normal export groupage means that the road haulier has to be careful to make those drawback goods readily accessible on the trailer for Customs examination, either at the collation point or the shipping office or at the port when loading the vessel.
Here ends the total requirements from the export shippers so far as the international road haulier is concerned, then basically these groupage hauliers adopt the same system for forwarding the goods although their internal paperwork may differ from firm to firm. The road haulier is then required to make out a manifest for the items being shipped in one trailer. With, ay, 10 consignments on one trailer the i.aperwork will consist of ten waybills, or ;ome similar documentation so as to effect lelivery. These waybills will be listed on a railer manifest. The road haulier will also irepare an IRU carnet and ship the trailer mder TIR conditions from this country o the operating centre on the Continent vhich he uses to break bulk and distribute. ['his may be in Holland, it may be in 3ermany, etc., depending purely on the final iestination of the traffic and how much ;roupage is loaded into the trailer for any 3ne final country.
Any UK road haulier will normally work with a partner on the Continent. Therefore this trailer manifest will show the terms and conditions of shipment, whether the goods are to be delivered to a destination or collected from TIR station, whether part of the charges are paid in the UK with the balance of the charges forward, i.e., the difference between the FOB shipments and CIF shipments, and will also show any special remarks regarding the nature of the goods.
Internal paperwork
There will be in addition the haulier's own internal paperwork for the production of certificates of shipment to the UK exporter and the invoicing for the charges incurred which will, of course, be laid down rates according to the costs of the particular haulier involved.
On the shipment of a trailer from the UK there will be forwarded in the ship's bag the paperwork for the UK haulier's Continental partner. This will consist of the trailer manifest—one copy having been given to Customs in Britain—a set of waybills for each consignment loaded on the trailer, the trailer's TIR certificate with attached photographs, the Carnet de Passage for the trailer as required by Customs, and finally, the IRU carnet for the trailer being shipped under TIR conditions.
The Continental partner will receive the trailer at port of arrival together with the paperwork from the ship's bag; with a very quick inspection by Continental Customs the trailer will be moved through to the nearest TIR station or that TIR station elected by the Continental partner for the handling of this type of traffic. There the trailer will be opened by Customs and the Continental haulier will proceed with the task of breaking the bulk shipment into its separate parcels and consigning these by Continental -line hauls" through to TIR station nearest to final delivery point. With most of the Continent there is a choice of whichever TIR station you wish to use. In France, in particular, the French Customs insist that you must use the TIR station nearest to final delivery point. ,
Fresh sets of waybills
In most instances the Continental haulier will be required to make up fresh sets of waybills as the majority of traffic will then travel under CMR conditions which are still not ratified in Britain. Goods exported from the UK can travel under the TIR system throughout the Continent providing the vehicle is put under TIR in this country through to a specific destination. Import goods into this country, if consigned to the UK under TIR conditions, are still cleared by Customs at the port of entry, or if they are moved from the point of entry to an inland destination for Customs clearance they do not move through under cover of the TIR which might specifically name an inland centre. The trailer moves from the port to the inland centre under a bond which the international haulier has to lodge with Customs. TIR in fact finishes in the UK at the port of entry, not at destination.
Under the TIR haulage system the British exporter must actually obtain the money for the goods in advance or have some method of receiving payment for those goods other than the now somewhat outdated method of letter of credit against documentation. It is possible for its haulier to produce a waybill for the goods which can be treated as a negotiable instrument, and is recognized by the banks as such. But if the haulier can then only deliver the goods against presentation of such a waybill by the consignee, the intervening period between despatch from this country of the documentation, up to arrival with the consignee and then presentation to the Continental haulier is such that the goods will have arrived well before the arrival of the paperwork. The haulier then has the difficult decision of being legally bound not to deliver the goods before presentation of the paperwork.
If the UK exporter of small consignments elects to use the road trailer system of groupage, he must not have a condition of shipment, such as the production of the normal or conventional type of paperwork by way of bills of lading, insurance certificates. etc.
Hardly a proposition
There are still insufficient UK exporters thinking in terms of forwarding small consignments by direct road trailer to make the system a really worthwhile proposition to any one international road operator and to be honest, for deliveries to near Continental destinations, especially port areas, the direct road trailer method does not have anything to commend itself over moving this traffic by conventional means of shipping.
Where the international road haulier scores, and where he can offer a service, is to inland destinations which can be linked directly with the same trailer as has loaded at the collation point in the UK. The other vital factor which should be considered by the British shipper of small units is the fact that the UK road operator can give an inclusive price from collected to delivered, or from depot UK to TIR station on the Continent. This means that the selling price quoted by the UK exporter to the Continental importer is an inclusive charge without the Continental importer having to worry as to what are the landing charges, haulage charges, clearing charges, etc.
With shipments to the Continent there should only ever be one selling term used by the UK exporter, and that is delivered to the door, and the road haulage operator in this country is well able to perform a first-class direct service which will meet the requirements of both shipper and importer.
Export packing required
The above is a resume of the basic requirements of the international road operator and the requirements of the shipper in forwarding small lots to the Continent. The shipper must still, however, package his goods as they will receive nearly as many handlings as shipping of groupage by conventional means. It may be possible for larger items to be sent without crating or packing, but remember that the road operator must load his vehicle to capacity so as to make the proposition worthwhile. Therefore goods will be overstowed in the trailer, they will be overstowed on the "line haul" vehicles from the break bulk point to the delivery point, and therefore export packing is required as against the full loads direct road system where only two handlings are involved on collection, and then again, on delivery and packing can be eliminated.
For the exporter of goods which are in any way hazardous, the road trailer system still does not offer any advantage over conventional shipping, as the road operator dare not consign this type of traffic with other goods in the trailer. Many of these roll-on /roll-off vessels carry passengers and are governed by the Board of Trade regulations, all dangerous cargoes being notified to the shipping company. They can only be carried if they conform to Ministry of Transport specification of packing, and also if they are only hazardous up to a certain point.
There are now more roll-on /roil-off ferries in existence which have decks which can carry abnormal and indivisible loads and also hazardous cargo, but in a groupage shipment this means normally that the trailer is stowed on deck. From the operator's point of view it is not always desirable to have the balance of the goods exposed to climatic conditions when the alternative is not to ship the hazardous cargo and therefore have the trailer below decks for the voyage across.
Will become a daily feature
With the easing of permit and Customs regulations, the time is coming when groupage by road trailer will be a daily feature in any international road haulier's life. The constant flow of import and export groupage to the trailer service will provide a facility which will be very worthwhile to the British exporter to consider and will, most certainly, ease a lot of the problems which that exporter now experiences with the shipment of small consignments from this country.