FUNCTIONS OF PORT AUTHORITY AND AIRPORTS AUTHORITY

SUBJECT : COMMERCE

TERM: FIRST TERM

CLASS : SS 2

WEEK 8

DATE:……………………………….

TOPIC: Transportation.

CONTENT:    (i)  Documents 

(ii) Functions of Ports authority and Airports authority.

Sub-Topic 1: Documents used in transportation

1. Bill of lading: This is a document that gives the holder the right to acquire possession of goods that have been shipped. This is a contract between the exporter and the shipping company, stating the terms under which the goods are to be exported. It shows the name of the vessel, the port of destination and the rate of freight. When the goods are loaded into the ship they are checked for any damage or defects. If the goods are free from any defect, a clean bill of lading would be issued but if the goods are damaged, a dirty or foul bill of lading indicating the damaged is issued.
2. Certificate of insurance: Is a document t which shows that the goods have been insured against risks or loss by the exporter.
3. Airway bill or air consignment note: Airway bill is a contract document issued by an airline (or its agent) for the transportation of goods from a specified airport to another. It shows the name and address of the consignor, consignee and the particulars to the goods such as size. Weight, value and airport of destination. However, unlike a bill of lading, an airway bill cannot be transferred from one party to another in order to convey the title to the goods, i.e. it is not negotiable and neither is it a document of title to the goods.
4. Travellers Tickets: A travel or transport ticket is a voucher or commercial document that indicates that the ticket owner has paid for the right to board a flight, train or road vehicle which the ticket relates to.
5. Manifest: This is a document that contains a full list of a ship’s cargo or goods, passengers, and crew conveyed by a ship, aircraft, or vehicle. It is signed by the captain of a ship or pilot of an aircraft.
6. Delivery note: Is a document that accompanies the delivery of goods.  This is to obtain the signature of the buyer, confirming to the fact that a certain quantity of the goods has been received in a stated condition.
7. Advice note: This is the document issued by the seller’s warehouse to be received by the warehouse of the customer for record purposes. In short, it is a ‘warehouse to warehouse’ document. 
8. Dock receipt: This is the receipt issued and signed by an import broker or receiving at the dock or container terminal as proof of the delivery of the goods to the dock under the conditions stated thereon. It is issued in advance of the bill of lading. The dock receipt can be clean or foul, depending on whether the goods are received in good or defective condition.
9. Consular invoice: A special type of invoice issued to the importer by the exporter, it contains all the information contained in a normal, invoice , but within the document the exporter has to verify the value of the goods 
10. Mate’s Receipt: This is the receipt issued by the ship-owner after the goods have been loaded into the ship, to acknowledge receipt of the goods. It is issued temporarily pending the availability of the bill of lading when the shipper (exporter) would have to surrender the mate’s receipt in exchange for the bill of lading. It is neither a document of title nor a negotiable instrument.
11. Certificate of origin: This is a document of proof that certifies the origin of goods that are being shipped to the importing country.
12. Waybill or consignment note: A written contract issued and signed by a carrier giving details and instructions relating to the shipment of a consignment of goods.
13. Bill of sight is a documented request (on a prescribed form) by an importer to custom authorities for permission to examine the shipment that has arrived, without a full set of documents or without full particulars. The importer’s objective is to be able to submit a ‘perfect‘ bill of entry after ascertaining the nature, ownership, and estimated value of the shipment [mediator_tech]

TERMS USED IN TRANSPORTATION INDUSTRY.

1.  Freight: is used for the cost of shipping a particular cargo for a specific voyage.
2. Dead freight: this is the freight paid on unoccupied space in the ship.
3. Consignment: are goods that are conveyed fro, one place to another, a shipment or delivery of goods.
4. Consignee: is the person or organization to which goods are transported to through a carrier. 
5. Consignor: is the owner who sends goods to the consignee.
6. Demurrage is an extra charge or penalty which the charterer pays for exceeding the period originally agreed upon. It is also the charge paid for failing to offload a ship within a stipulated time.  It is also called detention charge.
7. Charterer: is a person or firm that hires or charters a ship for a specific purpose.
8. Demise charter: This is Ship leasing arrangement in which the use of the entire vessel and all associated expenses pass on from the ship owner to the charterer.[mediator_tech]

EVALUATION: 

1. Highlight five documents used in transportation. explain each 
2. Briefly explain the following terms used in transportation: consignee, consignor, charterer, dead freight, and demurrage.

Sub-Topic 2: 

Functions of Ports authority and Airports authority.

Functions of ports Authority

The Nigeria ports authority was established in 1955 to oversee all ports, harbours, docks and waterways. Ports authority is an establishment of the government that has the responsibility of managing, controlling and operating the seaports within a country. Below are their functions:

1. Ports authority administers and controls the activities of the seaports.
2. Develop, own and operate ports and harbours. 
3. Provide safe and navigable channel 
4. Offer cargo handling and storage services: this they do by providing temporary warehousing facilities for goods
5. Maintain Port facilities and equipment: ports authority help to maintain the seaports by dredging them to ensure easy movement. 
6. Ensure safety and security in the seaports.
7. Port authority assists in implementing government policies on foreign trade.
8. Port authority promotes international trade because without the seaport foreign trade will be limited.
9. Provision of facilities like berth, cranes, fork-lifts and navigational aids.
10. Supervision of loading and offloading of goods.

FUNCTIONS OF AIRPORT AUTHORITY

Airport authority is an establishment of the government that has the responsibilities of managing, controlling and operating airports and airspaces. In Nigeria, the following are some of the airports we have; Nnamdi Azikiwe International Airport, Abuja, Murtala Mohammed International Airport, Lagos, Aminu Kano Airport,  Kano .

Below are their functions:

1. To develop, provide and maintain Airport.
2. Airport authority controls airline.
3. To provide adequate conditions under which passengers and goods may be carried by air and under which aircraft may be used for other gainful purposes and prohibiting the carriage by air goods of such classes as may be prescribed.
4. To charge for services provided by the authority at airports such as airport taxes, etc.
5. To provide accommodation and other facilities for the effective handling of passengers and freight.
6. To develop and provide facilities for surface transportation within airport.
7. To provide adequate facilities and personnel for effective security at all airport.
8. Airport authority promote foreign trade through the movement of goods and services from one country to another.
9. Airport authority provides information and clearance for landing and taking off.
10. Airport authority sees to the general administration, management and control of the airport.

[mediator_tech]

EVALUATION.

1. State five functions of the Nigeria ports authority
2. Mention five functions of the Airport authority.

GENERAL EVALUATION

Objective Test.

1. Which of the following is not contained in a consignment note? A.name of the buyer b. name of the seller c. description of goods d. cost of goods.
2. A contract made between a ship owner and a merchant for the carriage of cargo is A. ship manifest b. charter party c. freight forward d. cargo service.
3. The charge paid for failing to off-load a vehicle within a stipulated time is called. A. Freight. B. demurrage c. fine d. fare e. floating charge.
4. Which of the following is a contract of carriage? A. advice note b. charter party c. delivery note d. consignment note e. ship manifest.
5. Containers are suitable for transporting goods by a. sea only b. road only c. sea and rail only d. road and sea only e. road, sea and rail.
6. The following is suitable for transporting fish over a long distance? a. tramp b. cargo liner c. tanker d. barge e. refrigerated ship
7. Another name for consignment note is a. quotation b. waybill c. debit note d. receipt e. credit note.
8. The contract between ship owners and hirers whereby the hirers take full control of the ship is called a. time charter b. charter by demise c. shipping conference d. voyage charter e. charter party.
9. A common carrier is a. a car hire company b. one who engaged in the transportation of passengers only c. an apprentice who helps his master to carry loads d. a dealer in various brands of vehicles e. one who engages in the transportation of goods and passengers for a fee.
10. Which of the following is issued to the exporter or his agent when the goods have been loaded in ship? A. bill of exchange b. mate’s receipt c. ship’s manifest d. bill of sight e. customs declaration form.
11. Which of the following is not a characteristic of charter party? A. it is a contract of carriage by sea b. its document shows freight charges and destination c. there are time, voyage and charter by demise d. the whole or part of a ship is leased e. an association of ship owners.
12. Which of the following is not a function of the Nigerian Airport Authority? A. maintains the buildings and tarmac b, collects airport taxes. C. controls movement of aircrafts. D. maintains all aircrafts in the country.  E. maintains security.
13. Small ships which are used to carry goods and passengers across rivers or canals are called a. tramps b. coasters c tankers d. liners e. ferries.
14. Which of the following would be best conveyed by rail transport? A. bread b. shoes c. potatoes d. tomatoes e. oranges.
15. Gases are best transported a. through canals b. by sea c. by air d. through pipes  e. By rail.
16. Which of the following is a disadvantage of canal transport? It is a. narrow and cannot support big vessels. B. not suitable for small ferries c. often for short journey d. suitable for carrying only goods.
17. A consignment note is used when a. goods are wrapped and labeled for easy identification. B. goods are dispatched to agents through transporters c. damaged goods are being returned d. there is over-invoicing.
18. Which of the following is used for moving only goods from one sea port to another? A. ocean liner b. cargo liner c. ferry d. coaster.
19. Which of the following is an agreement to transport goods but not a document of title? A. airway bill b. bill of lading c. charter party d. freight note.
20. A clean bill of lading is so called because a. the colour is pure white. B. it is not stained. C. it is a document of authority d. it has no record of damaged goods e. it could be transferred to anybody.

ESSAY TEST

1. Briefly explain the importance of transportation
2. List and explain the documents used in transportation.
3. State four reasons why transport is important to commerce. (b) Explain three advantages and three disadvantages of air transport.
4. Who is a common carrier
5. State six facilities a good sea port should have. (b) In what four ways is transport important to commerce?
6. What is transportation? (b) Explain dead freight (C) list and explain five factors that will determine a seller’s mode of transportation.
7. Describe each of the following documents and state one use of each: (a) consular invoice (B) bill of lading (C) certificate of origin (D) bill of sight.

WEEKEND ASSIGNMENT: 

Read commerce for Senior Secondary School book2 by Onuka P S et al; (pages77-81)

PRE- READING ASSIGNMENT:

Read about types of communication: oral; written; visual; non-verbal, etc. (b) advantages and disadvantages of communication.

WEEKEND ACTIVITY

1. Define communication
2. Mention the types of communication and explain each.

REFERENCE TEXTS:

1. Commerce for Senior Secondary School book2 by Odedokun et al; Longman Nigeria PLC. 
2. Commerce for Senior Secondary School book2 by Onuka P S et al; Melrose Books and Publishing Limited.