Sea Freight in Logistics Management

Published on May 2023 | Categories: Documents | Downloads: 45 | Comments: 0 | Views: 304
of 111
Download PDF   Embed   Report

Comments

Content

 

 

PROJECT REPORT ON 

“SEA FREIGHT IN LOGISTICS 

MANAGEMENT” 

K.J.SOMAIYA COLLEGE  VIDYAVIHAR (EAST) 

SUBMITTED BY   T.Y.B.M.S. V]  SATISH K.[Semester PARATE

 NAME OF PROJECT GUIDE GUIDE 

“MR. SANDIP GUPTA” 

SUBMITTED TO 

UNIVERSITY OF MUMBAI  ACADEMIC YEAR  2011 - 2012 

 

DECLARATION  I SATISH KESHAV PARATE student of  K.J.SOMAIYA  COLLEGE of TYBMS (Semester 5) hereby declare that I have  

completed this project on “SEA FREIGHT IN LOGISTICS  MANAGEMENT” in the Academic Year 2011-12. The Information  

submitted is true and original to the best of my knowledge.  

Signature of Student 

(Satish k. parate) 



 

CERIFICATE  I SATISH PARATE student of K.J.SOMAIYA COLLEGE of  TYBMS (Semester 5) herby certify that I have completed this project on    ‗ SEA SEA FREIGHT IN LOGISTICS MANAGEMENT‘ in the Academic 

Year 2011-12. The Information submitted is true and original to the best of my knowledge. 

Signature of the Principal of  

Signature of Project 

The College/Institution 

Co-coordinator 

Signature of Internal 

Signature of External 

Examiner 

Examiner 



 

ACKNWOLEDGEMENT  An Old Chinese proverb says:   ―When eating your bamboo sprouts, remember the men who planted

them. 

Now that my sprouts are ready to eat, it is time for me to express   my deepest gratitude to all those who have made this possible.‖ 

The project of ―SEA FREIGHT IN LOGISTICS  MANAGEMENT” is the outcome of sincere and positive contribution.  

I cannot justifiably translate their help, cooperation and guidance extended to me in completing this project work in words. However I shall be failing in my duty if I don‘t express thanks to a few people in  particular.  I would like to thank our BMS coordinator  Mr.Sandip Gupta for  giving this opportunity to prepare our self to face our future challenges.   I would also like to thank my project guider  Mr.Nilesh sadekar  for giving me some suggestion to prepare this project without his support I would have not be able to make it properly.   Again I would like to express my deep regards to our principal  

Mrs.Suda Vyas.  And last but not the least I would also like to thank my family members and friends who have helped us and supported us in all  possible ways. 



 

INDEX  Sr.No 

Particulars  

Page No 

1. 

Introduction of Logistics Management  

8-10 

2. 

Shipping 

11-19 

3. 

Cargo Vessels Types 

19-26 

4. 

Different Types of Ship Size  

27-28 

5. 

Terms Of Shipment 

28-33 

6. 

Sea Transport 

34-39 

7. 

Shipping Documents 

40-46 

8. 

3rd Party Logistics & 4th Party Logistics  

47-51 

9. 

Ports In India 

52-83 

10. 

Customs And Procedures 

84 

11. 

Multimodal Transport 

85-88 

12. 

Marine Insurance 

89-95 

13. 

Warehousing and Warehouse Management  

96-100 

14. 

Panama Canal 

101-106  

15. 

Conclusion  

107-108  

16. 

Case Study 

109-110  

17. 

Bibliography  

111  



 

SUMMARY  The analysis of the situation on the basis of transport logistics, focused logistics and transport affect the efficiency of our infrastructure, management, logistics concepts, professionals and other factors discussed in depth, and how to improve the efficiency of logistics and transport measures and suggestions put forward in this project. Key words: logistics; transport; efficiency; factor logistics and transport is the backbone of the entire logistics system, logistics and transport efficiency is to reduce the total cost of logistics the main way. At present, logistics market is just out of infancy, but the logistics and transport is still in a low efficiency for the pending problems, identify the main factors affect the transport efficiency to make up for its deficiencies, to promote the rapid development of  logistics industry has a positive effect. Logistics sea freight is high transport costs in total logistics costs account for a second large proportion.  The outcome of studies identified major weaknesses in the field of  Freight Forwarding as follows:  - 

Inappropriate legal framework;



 Need for strengthening national and sub-regional freight forwarding associations;



Too many variations in the structure of companies carrying out freight forwarding activities;



Faulty management systems coupled with poor delegation by power; and



Lack of professional structures in the industry.

To overcome these problems an attempt has been made to highlight activities of  selected sub-regional training institutions that have or could develop courses for  the benefit of the sub-sector. s ub-sector. 



 

The proposed module covers thirteen main areas of concern to overcome the   weakness in the field of freight forwarding is as follows:   - 

Elaboration on duties and responsibilities of the freight forwarder and its relationship with intervening parties;



Rights, duties and responsibilities of Multimodal Transport/Freight Forwarding institutions;



The art by packaging, marking and handling of special cargoes;



Principles of carriage of goods by sea;



Principles of carriage of goods by air;



Carriage of goods by road and rail;‘



Practices of customs‘ activities and port procedures procedures;;

-  - 

The art of consolidation and intermodal transport transport Freight forwarding documentation practices



The use of incoterms



Application of documentary credits;



Cargo insurance; and



Liability insurance.



 

INTRODUCTION  What do the term ―Logistics Managem Management ent in sea freight means?  

  The transportation of  goods in ships, or goods sent by sea. It simply means the Logistics is the art and science of managing and controlling the flow of  goods, energy, information and other resources like products, services, and  people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.



 

Overview of Logistics  The word of logistics originates from the ancient Greek logos (λόγος),  

which means ―ratio, word, calculation, reason, speech, and oration‖. 

Logistics as a concept is considered to evolve from the military's need to supply themselves as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title   ‗Logistikas‘ who were respo responsible nsible for fi financial nancial and supp supply ly distributi distribution on matters.  The Oxford English dictionary defines logistics as: ―The branch of military

science having to do with procuring, maintaining and transporting material,  personnel and facilities.‖Another dictionary definition is: "The time related  positioning of resources." As such, logistics is commonly seen as a branch of  engineering which creates "people systems" rather than "machine systems".  



 

Military logistics  In military logistics, experts manage how and when to move resources to the  

 places they are needed. In military science, maintaining one's supply lines while  — some  —   disrupting those of the enemy is a crucial —  some would say the most crucial —  element of military strategy, since an armed force without food, fuel and

ammunition is defenseless.  The Iraq war was a dramatic example of the importance of logistics. It had  become very necessary for the US and its allies to move huge amounts of men, materials and equipment over great distances. Led by Lieutenant General William Pagonis, Logistics was successfully used for this movement. The defeats of the British in the American War of Independence, and the defeat of Rommel in World War II, have been largely attributed to logistical failure. The historical leaders Hannibal Barca and Alexander the Great are considered to have been logistical geniuses. 

Logistics Management  Logistics Management is  ‗ that that part of the supply chain which plans,  

implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumptio consumption n in order to meet customers requirement requirements‘. s‘. 

Logistics management is applicable to public as well as private sector, Public sector are government undertaking, government start business with and so on. Private sector is classified into sectoral segmentation of industry. Ex. electrical, mechanical, electronics etc. 



 

Business logistics  Logistics as a business concept evolved only in the 1950s. This was  

mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for  experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time for the right price and is the science of process and incorporates all industry sectors. The goal of logistic work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.  In business, logistics may have either internal focus(inbound logistics), or  external focus (outbound logistics) covering the flow and storage of materials from  point of origin to point of consumption (see ssupply upply chain management). The main functions of a logistics manager include Inventory Management, purchasing, transport, warehousing, and the organizing and planning of these activities. Logistics managers combine a general knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project. Logistics as a concept is considered to evolve from the military's need to supply themselves as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‗Logistikas‘ who were

responsible for financial and supply distribution matters. 

10 

 

Shipping  Shipping has multiple meanings. It can be a physical process of  transporting goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.   Land or "ground" shipping can be by train or by truck. In air and sea shipments, ground transportation is often still required to take the product from its origin to the airport or seaport and then to its destination. Ground transportation is typically more affordable than air shipments, but more expensive than shipping by sea.  Shipment of freight by trucks, directly from the shipper to the destination, is known as a door to door shipment. Vans and trucks make deliveries to sea ports and air ports where freight is moved in bulk.  Much shipping is done aboard actual ships. An individual nation's fleet and the people that crew it are referred to its merchant navy or merchant marine. Merchant shipping is essential to the world economy, carrying 90% of  international trade with 50,000 merchant ships worldwide. The term shipping in this context originated from the shipping trade of wind power ships, and has come to refer to the delivery of cargo and parcels of any size above the common mail of  letters and postcards.  Ship transport is watercraft carrying people (passengers) or goods (cargo).   Sea transport has been the largest carrier of freight throughout recorded history. Although the importance of sea travel for passengers has decreased due to aviation, it is effective for short trips and pleasure cruises. Transport by water is cheaper  than transport by air.  Ship transport can be over any distance by boat, ship, sailboat or barge, over oceans and lakes, through canals or along rivers. Shipping may be for  commerce, recreation or the military. Virtually any material that can be moved, can  11 

 

 

 be moved by water, however water transport becomes impractical when material delivery is highly time-critical. "General cargo" is goods packaged in boxes, cases,  pallets, and barrels. Containerization revolutionized ship transport in the 1960s. When a cargo is carried in more than one mode, it is intermodal or co-modal. 

MERCHANT SHIPPING  A nation's shipping fleet (merchant navy, merchant marine, merchant fleet) consists of the ships operated by civilian crews to transport passengers or  cargo. Professionals are merchant seaman, merchant sailor, and merchant mariner, or simply seaman, sailor, or mariner. The terms "seaman" or "sailor" may refer to a member of a country's navy.  

2005 registration of merchant ships (1,000 gross register tons (GRT) and over)   per country. 

12 

 

 

According to the 2005 CIA World Fact book, the world total number of  

merchant ships of 1,000 Gross Register Tons or over was 30,936. Statistics for  individual countries are available at the List of merchant marine capacity by country. 

Professional mariners  A ship's complement can be divided into four categories: the deck department, the engineering department, the steward's department, and other. 

Deck department  An able seaman stands iceberg lookout on the bow of the freighter  USNS Southern Cross during a resupply mission to McMurdo Station, Antarctica; circa 1981.  Officer

positions

in

the

deck 

department include but not limited to: Master and his Chief, Second, and Third officers. The official classifications

for

unlicensed

members of the deck department are Able Seaman and Ordinary Seaman. 

An able seaman stands iceberg lookout on the bow of the freighter USNS Southern Cross during a re-supply re -supply mission to McMurdo Station, Antarctica circa 1981.  

13 

 

A common deck crew for a ship includes:  (1) Chief Officer/Chief Mate  (1) Second Officer /Second Mate  (1) Third Officer / Third Mate  (1) Boatswain  (2-6) Able Seamen  (0-2) Ordinary Seamen  A deck cadet is person who is carrying out mandatory seatime to achieve their  officer of the watch certificate. Their time onboard is spent learning the operations and tasks of everyday life on a merchant vessel. 

Engineering department  A ship's engineering department consists of the members of a ship's crew that operate and maintain the propulsion and other systems on board the vessel. Marine Engineering staff also deal with the "Hotel" facilities on board, notably the sewage, lighting, air conditioning and water systems. They deal with  bulk fuel transfers, and require training in firefighting and first aid, as well as in dealing with the ship's boats and other nautical tasks- especially with cargo loading/discharging gear and safety systems, though the specific cargo discharge function remains the responsibility of deck officers and deck workers. On LPG and LNG tankers however, a cargo engineer works with the deck department during cargo operations, as well as being a watch keeping engineer.  A common Engineering crew for a ship s hip includes:  (1) Chief Engineer   (1) Second Engineer / First Assistant Engineer   (1) Third Engineer / Second Assistant Engineer   (1-2) Fourth Engineer / Third Assistant Engineer  

14 

 

 

(0-2) Fifth Engineer / Junior Engineer (1-3) Oiler (unlicensed qualified rating) (0-3) Greaser/s (unlicensed qualified rating)  (1-5) Entry-level rating (such as Wiper (occupation), Utility man, etc.)  Many American ships also carry a Qualified Member of the Engine Department. Other possible positions include Motorman, Machinist, Electrician, Refrigeration Engineer, and Tanker man. Engine Cadets are trainee engineers who are completing sea time necessary before they can obtain a watch keeping license.  

Steward's department  A typical Steward's department department for a cargo sship hip would be composed of a  

Chief Steward, a Chief Cook, and a Steward's Assistant. All three positions are typically filled by unlicensed personnel.   The chief steward directs, instructs, and assigns personnel performing such functions as preparing and serving meals; cleaning and maintaining officers' quarters and steward department areas; and receiving, issuing, and inventorying stores.  On large passenger vessels, the Catering Department is headed by the Chief Purser and managed by assistant pursers. Although they enjoy the benefits of  having officer rank, they generally progress through the ranks to become pursers. Under the pursers are the department heads - such as chief cook, head waiter, head  barman etc. They are are responsible for the administratio administration n of their own areas.  The chief steward also plans menus; compiles supply, overtime, and cost control records. May requisition or purchase stores and equipment. May bake  bread, rolls, cakes, pies, and pastries.  A chief steward's duties may overlap with those of the Steward's Assistant, the Chief Cook, and other Steward's Department crewmem crewmembers. bers.  

15 

 

 

In the United States Merchant Marine, in order to be occupied as a chief  steward a person has to have a Merchant Mariner's Docum Document ent issued by the United States Coast Guard. Because of international conventions and agreements, all chief  cooks who sail internationally are similarly documented by their respective countries. 

Other Departments  Staff officer positions on a ship, including Junior Assistant Purser, Senior  

Assistant Purser, Purser, Chief Purser, Medical Doctor, Professional Nurse, Marine Physician Assistant, and Hospital Corpsman, are considered administrative  positions and are therefore regulated by Certificates of Registry issued by the United States Coast Guard. Pilots are also merchant marine officers and are licensed by the Coast Guard. Formerly, there was also a radio department, headed  by a chief radio officer and supported by a number of radio officers. Since the introduction of GMDSS (Satellite communications) and the subsequent exemptions from carrying radio officers if the vessel is so equipped, this department has fallen away, although many ships do still carry specialist radio officers, particularly passenger vessels. Many radio officers became 'electrotechnical officers', and transferred into the engineering department. 

Life at sea  Mariners live much of their life spent beyond the reach of land. They  

face sometimes dangerous conditions at sea. Yet men and women still go to sea. For some, the attraction is a life unencumbered with the restraints of life ashore. Sea-going adventure and a chance to see the world also appeal to many seafarers. Whatever the calling, those who live and work at sea invariably confront social isolation. 

16 

 

 

Findings by the Seafarer's International Research Center indicate a leading cause of mariners leaving the industry is "almost invariably because they want to  be with their families." U.S. merchant ships ships typically do not allow family members to accompany seafarers on voyages. Industry experts increasingly recognize isolation, stress, and fatigue as occupational hazards. Advocacy groups such as International Labour Organization, a United Nations agency, and the Nautical Institute are seeking improved international international standards for mariners.  Ocean voyages are steeped in routine. Maritime tradition dictates that each day be divided into six four-hour periods. Three groups of watch keepers from the engine and deck departments work four hours on then have eight hours off watch keeping. However there are many overtime jobs to be done daily. This cycle repeats endlessly, 24 hours a day while the ship is at sea. Members of the steward department typically are day workers who put in at least eight-hour shifts. Operations at sea, including repairs, safeguarding against piracy, securing cargo, underway replenishment, and other duties provide opportunities opportunities for overtime work. Service aboard ships typically extends for months at a time, followed foll owed by protracted shore leave. However, some seamen secure jobs on ships they like and stay aboard for years.  In rare cases, veteran mariners choose never to go ashore when in port. Further, the often quick turnaround of many modern ships, spending only a matter  of hours in port, limits a seafarer's free-time ashore. Moreover, some foreign seamen entering U.S. ports from a watchlist of 25 high-risk countries face restrictions on shore leave due to security concerns in a post 9/11 environment. However, shore leave restrictions while in U.S. ports impact American seamen as well. For example, the International Organization of Masters, Mates & Pilots notes a trend of U.S. shipping terminal operators restricting seamen from traveling from 

17 

 

 

the ship to the terminal gate. Further, in cases where transit is allowed, special "security fees" are at times assessed.   Such restrictions on shore leave coupled with reduced time in port by many ships translate into longer periods at sea. Mariner‘s r eport eport that extended

 periods at sea living and working with shipmates who for the most part are strangers takes getting used to. At the same time, there is an opportunity to meet  people from other ethnic and cultural backgrounds. Recreational opportunities have improved aboard some U.S. ships, which may feature gyms and day rooms for watching movies, swapping sea stories, and other activities. And in some cases, especially tankers, it is made possible for a mariner to be accompanied by members of his family. However, a mariner‘s off duty time is largely a solitary affair, pursuing hobbies, reading, writing letters, and sleeping.  On modern ocean going vessels, typically registered with a flag of  convenience, life has changed immensely in the last 20 years. Most large vessels include a gym and often a swimming pool for use by the crew. Since the Exxon Valdez incident, the focus of leisure time activity has shifted from having officer  and crew bars, to simply having lounge-style areas where officers or crew can sit to watch movies. With many companies now providing TVs and DVD players in cabins, and enforcing strict smoking policies, it is not surprising that the bar is now a much quieter place on most ships. In some instances games consoles are  provided for the officers and crew. The officers enjoy a much higher standard of  living on board ocean going vessels. Crews are generally poorly paid, poorly qualified and have to complete contracts of approx 9 months before returning home on leave. They often come from countries where the average industrial wage is still very low, such as the Philippines or India. Officers however, come from all over the world and it is not uncommon to mix the nationality of the officers on  board ships. Contracts Contracts average at the 4 m month onth mark for off officers, icers, with gener generous ous 

18 

 

 

leave. Most Ocean going vessels now operate an Unmanned Engineroom System allowing engineers to work days only. The engine room is computer controlled by night, although the duty engineer will make inspections during unmanned operation. Engineers work in a hot, humid, noisy atmosphere. Communication in the engineroom is therefore by hand signals and lip-reading, and good teamwork  often stands in place of any communication at all. 

Ships and watercraft  Ships and other watercraft are used for ship transport. Types can be distinguished by propulsion, size or cargo type. Recreational or educational craft still use wind power, while some smaller craft use internal combustion engines to drive one or more propellers, or in the case of jet boats, an inboard water jet. In shallow draft areas, such as the Everglades, some craft, such as the hovercraft, are  propelled by large large pusher-prop fans. 

Cargo vessels types:  Until the 20th Century, ships generally, were all-purpose cargo vessels, with very little specialisation (with the exception of tank vessels which first appeared in the 1880s). All cargoes were carried in general purpose holds, or on deck. Modern commercial vessels are designed and built to carry specific cargo types. The names we give to the various vessel types reflect the type of cargo for  which they are designed and the names we give to the various vessel types reflect the type of cargo for which they are designed and built to carry. For example, a "bulk carrier" is specially designed to carry cargo "in bulk" and the hatch cover and hold design is focused on the carriage of raw dry cargo goods, such as coal, grain, iron ore and bauxite, which are simply poured into cavernous holds then grabbed and bulldozed out at the port of discharge. 

19 

 

 

Tankers carry liquid cargo in tanks the most obvious example is the wellknown oil tanker, but even within this generic type each tanker is specially designed to carry a particular type of liquid cargo not just crude this generic type, each tanker is specially designed to carry a particular type of liquid cargo, not just crude oil. Other liquid cargoes would include petroleum products, chemicals and yes, even wine! 2 recent hybrid designs of tanker carry Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG), both of which need to be kept under   pressure and at low temperature temperature to maintain the cargo in in a liquefied state. A further  hybrid is the Floating Production, Storage and Offloading unit (FPSO), which is usually a large tanker (maybe a converted old VLCC, but now brand new specialized FPSOs are being built) specifically designed for the oil industry, working offshore where an onshore facility to process and store offshore oil is deemed impractical.  Bulk carriers, such as the 

Sabrina I seen here, are cargo ships used to transport  bulk cargo items such as ore or food staples (rice, grain, etc.) and similar cargo. It can  be recognized by the large  box-like hatches on its deck,  designed to slide outboard for loading. A bulk carrier could be either dry or wet. Most lakes are too small to accommodate bulk ships, but a large fleet of lake freighters has been plying the Great Lakes and St. Lawrence Seaway of North America for over a century. 

20 

 

  

  Container

are 

ships

cargo ships that carry their entire load in trucksize

containers,

technique

in

a

called

containerization.

They

form a common means of commercial





intermodal freight transport. Informally known as "box boats," they carry the majority of the world's dry cargo. Most container ships are propelled by diesel engines, and have crews of between 10 and 30 people. They generally have a  

large accommodation block at the stern, directly above the engine room.



  Tankers are cargo ships  for the transport of fluids, such

as

 petroleum

crude

oil,

products,

liquefied petroleum gas, liquefied natural gas and  

chemicals, also vegetable oils, wine and other food -the tanker sector comprises one third of the world tonnage.



 

  Reefer ships are cargo  ships typically used to transport commodities

perishable which

require temperature-



 

21 

 

 

controlled transportation, mostly fruits, meat, fish, vegetables, dairy products and other foodstuffs.  

  Roll-on/roll-off  ships,  such

as

the

Chi-

Cheemaun, are cargo



 

ships designed to carry wheeled cargo such as  automobiles, 

trailers 

or railway carriages.  RORO 

(or

ro/ro) 

vessels have built-in  ramps which allow the cargo to be efficiently "rolled on" and "rolled off" the vessel when in port. While smaller ferries that operate across rivers and other  short distances still often have built-in ramps, the term RORO is generally reserved for larger ocean-going vessels.  

  Coastal trading vessels,  also known as coasters, are shallow-hulled ships used for trade between locations on the same island or continent. Their  shallow hulls mean that they can get through reefs





where sea-going ships usually cannot (sea-going ships have a very deep hull for  supplies and trade etc.).  



  Ferries are a form of transport, usually a boat or ship, but also other forms,   carrying (or ferrying) passengers and sometimes their vehicles. Ferries are also



  22 

 

 

used to transport freight (in lorries and

sometimes

unpowered freight containers)

and

even railroad cars. Most

ferries

operate on regular, frequent, return  services. A foot-passenger ferry with many stops, such as in Venice, is sometimes called a waterbus or water taxi. Ferries form a part of the public transport systems of many waterside cities and islands, allowing direct transit  between points at a capital cost much lower than bridges or tunnels. Many of  the ferries operating in Northern European waters are ro/ro ships. See the Herald of Free Enterprise and M/S Estonia disasters.  

  Cruise ships are passenger  ships used for   pleasure voyages, where the voyage itself and the ship's amenities are considered





an essential part of the experience. Cruising has become a major part of the tourism industry, with millions of passengers each year as of 2006. The industry's rapid growth has seen nine or more newly built ships catering to a



  23 

 

 

 North American clientele added every year since 2001, as well as others servicing European clientele. Smaller markets such as the Asia-Pacific region are generally serviced by older tonnage displaced by new ships introduced into the high growth areas. On the Baltic sea this market is served by cruise ferries.  

  Ocean Liner is a passenger ship designed to transport people from one seaport   to another along regular long-distance maritime routes according to a schedule. Ocean liners may also carry cargo or mail, and may sometimes be used for 



 

other purposes. Ocean liners are usually strongly built with a high freeboard to withstand rough seas and adverse conditions encountered in the open ocean, having large capacities for fuel, food and other consumables on long voyages.   

  Cable layer is a deepsea vessel designed and used to lay underwater cables for  telecommunications, electricity, and such. Large superstructure and one or more spools that feed off the transom distinguish it.



  24 

 

  

  A tugboat is a boat used to manoeuvre,  primarily

by

towing or pushing other vessels (see shipping)

in

harbours, over the open sea or through rivers and canals. They are





also used to tow barges, disabled ships, or other equipment like towboats.



  

  A dredger



(sometimes

also

called a dredge) is a ship

used

excavate

to in

shallow

seas

or 

fresh water areas with the purpose of gathering up  bottom sediments and disposing of  them at a different location.  



  A barge is a flat-bottomed boat, built mainly for river and canal transport of  heavy goods. Most barges are not self-propelled and need to be moved by tugboats towing or towboats pushing them. Barges on canals (towed by draft



  25 

 

 

animals on an adjacent towpath) contended with the railway in the early industrial revolution but were outcompeted in the carriage of high value items due to the higher  speed, falling costs, and route flexibility of rail transport.  

  A Multi-purpose ship (sometimes called a general cargo ship) is used to transport a variety of goods from bulk commodities to break bulk and heavy cargoes. To provide 



maximum

trading

flexibility they are usually geared and modern

examples

are fitted for the carriage containers grains. Generally

of  and 



they will have large open holds and twee decks to facilitate the carriage of  different cargoes on the same voyage. The crew will be highly competent in the securing of break bulk cargoes and the ship will be equipped with various lashings and other equipment for sea fastening.  



  Ships that fall outside these categories include Semi-submersible heavy-lift ships or OHGC (Open Hatch General Cargo).



  26 

 

Major ship size includes:  

  Handy max: Traditionally the workhorses of dry bulk, the handy and more  recent handymax types remain popular ships less than 60,000dwt. The handymax sector operates in a large number of geographically dispersed global trades, mainly carrying grains and minor bulks including steel products, forest  products and fertilizers. The vessels are well suited for small ports with length and draft restriction and also lacking transshipment infrastructure. infrastructure. This category is also used to define small-sized oil tanker.

 



  Panamax: Represents the largest acceptable size to transit the panama canal,  which can be applied to both freighters and tankers; length are restricted to a maximum of 275 meters, and widths to slightly more than 32 meters. The average size of such abig ship is about 65,000 dwt. They mainly carry coal ,grain and lesser extent, minor bulks, including steel product, forest products and fertilizers.

 



  Capsize: refer to a rather ill-defined standard which have the common   characteristics of being incapable of using the panama or Suez Canal not necessarily bcoz of their tonnage, but bcoz of their size. These ships serve deepwater terminals handling raw materials, such as iron ore and coal.



 

  Aframax: A tanker of standard size between 75,000 and 11,5000 dwt. The   largest tanker size in the AFRA (Average freight Rate Assessment) tanker rate system.

 



  Suezmax: This standard, which represents the limitation of Suez Canal, has   evolved. Before 1067, the Suez Canal could only accommodate tanker ship with maximum of 80,000dwt. The canal was closed between 1967 and 1975 bcoz of  Israel -Arab conflict. Once it reopened in 1975, the suezmax capacity went to



 

27 

 

150,000 dwt. An enlargement to enable the canal to accommodate 200,000 dwt  tankers is being considered.  

  VLCC: Very Large Crude Carriers, 150,000 to 320,000 dwt in size. They offer   good flexibility for using terminals since many can accommodate their draft. They are used in ports that have depth limitations, mainly around the Mediterranean, West Africa and the North Sea. They can be ballasted through the Suez Canal.

 



  ULCC: Ultra Large Crude Carriers, 300000 to 550,000 dwt in size. It is used   for carrying crude oil on long routes. The enormous sizes of these vessels require custom built terminals.



 

Terms of shipment:  Common trading terms used in shipping goods internationally include:  • Freight on board, or free on board (FOB): The exporter delivers the goods at the

specified location (and on board the vessel). Costs paid by the exporter include load and lash, including securing cargo not to move in the ships hold, protecting the cargo from contact with the double bottom to prevent slipping, and protection against damage from condensation. For example, "FOB Kunming Airport" means that the exporter delivers the goods to the airport, and pays for the cargo to be loaded and secured on the plane. The exporter is bound to deliver the goods at his cost and expense. In this case, the freight and other expenses for outbound traffic are borne by the importer. • Cost and freight (C&F, CFR, and CNF): Insurance is payable by the importer and

the exporter pays the ocean shipping/air freight costs to the specified location. For  example, C&F Los Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles). Many of the shipping carriers (such as UPS, DHL, and FedEx)

28 

 

 

offer guarantees on their delivery times. These are known as GSR guarantees or  "guaranteed service refunds"; if the parcels are not delivered on time, the customer  is entitled to a refund.  •  Cost, insurance, and freight (CIF): Insurance and freight are all paid by the

exporter to the specified location. For example, at CIF Los Angeles, the exporter   pays the ocean shipping/air shipping/air freight freight costs to Los Angeles in including cluding the insura insurance. nce. •  The term "best way" generally implies that the shipper will choose the carrier 

who offers the lowest rate (to the shipper) for the shipment. In some cases, however, other factors, such as better insurance or faster transit time will cause the shipper to choose an option other than the lowest bidder. • Agency Fee: Fee payable by a ship-owner or ship operator to a port agent. •  Agent: A person or organization authorized to act for or on behalf of another 

 person or organization. In the shipping field, an Agent is a corporate body with, which there is an agreement to perform particular functions on behalf of them at an agreed payment. An Agent is either a part of a shipping corporation or an independent body part of a shipping s hipping corporation or an independent body. •  Bill of Lading (B/L, plural: Bs/L ): A document which evidences a contract of 

carriage by sea. •  Break Bulk Cargo: General cargo conventionally stowed as opposed to unitized, containerized and Roll On-Roll Off cargo. •  Bulk Carrier: Single deck vessel designed to carry homogeneous unpacked dry

cargoes such as grain, iron ore and coal. •  Cargo: Goods transported or to be transported, all goods carried on a ship

covered by a B/L. • Carrier: The party undertaking transport of goods from one point to another  • Claim: A charge made against a carrier for loss, damage or delay.

29 

 

 

•  Clean Bill of Lading: A Bill of Lading which does not contain any qualification

about the apparent order and A Bill of Lading which does not contain any qualification about the apparent order and condition of the goods to be transported. • Consignee: The party such as mentioned in the transport document by whom the

goods, cargo or containers are to be received. •  Consignment: A separate identifiable number of goods (available to be)

transported from one consignor to one consignee via one or more than one modes of transport and specified in one single transport document. • Consignor: Shipper  •  Container Terminal: Place where loaded and/or empty containers are loaded or 

discharged into or from a means of transport. •  Damaged Cargo Report: Written statement concerning established damages to cargo and/or equipment. • Dangerous Goods: Goods are to be considered dangerous if the transport of such

goods might cause harm, risk, peril, or other evil to people, environment, equipment or any property whatsoever. • Dead freight: Slots paid for but not used. •  Delivery Order: A carrier's delivery order (negotiable document) is used for 

splitting a B/L (after surrender) A carrier s delivery order (negotiable document) is used for splitting a B/L (after surrender) in different parcels and have the same function as a B/L. •  Export License: Document granting permission to export as detailed within a

specified time. • FTL: Full Truck Load, an indication for a truck transporting cargo directly from

supplier to receiver. • Free In and Out (FIO): Transport condition denoting that the freight rate excludes

the costs of loading and discharging and, if appropriate, stowage and lashing.

30 

 

 

•  Freight Invoice: An itemized list of goods shipped and services rendered stating

fees and charges. • Freight Prepaid: Freight and charges to be paid by the consignor. •  Freight Ton: A unit for freighting cargo according to weight and/or cubic

measurement A unit for freighting cargo according to weight and/or cubic measurement. • Full Container Load (FCL): A general reference for identifying container loads of 

cargo loaded and/or discharged at merchants' premises. •  Gantry Crane: A crane or hoisting machine mounted on a frame or structure

spanning an intervening space, which often travels on rails. • Gross Tonnage (GRT): The measure of the overall size of a vessel determined in

accordance with the provisions of the international convention on measurement of  vessels usually expressed in register ton. •  Heavy Lift: Single commodity exceeding the capacity of normal loading

equipment and requiring special equipment and rigging methods for handling. •  House to House Transport: The transport of cargo from the premises of the

consignor to the premises of the consignee The transport of cargo from the  premises of the consignor consignor to the pr premises emises of the con consignee. signee.

 

• Insurance Certificate: Proof of an insurance contract •  Intermodal Transport: The movement of goods (containers) in one and the same

loading unit or vehicle which uses successively several modes of transport without or vehicle which uses successively several modes of transport without handling of  the goods themselves in changing modes. • Less than Container Load (LCL): For operational purposes a LCL (Less than full

container load) container is considered a container in which multiple consignments or parts thereof are shipped.

31 

 

 

•  Letter of Indemnity: Written statement in which one party undertakes to

compensate another for the costs and consequences of carrying out a certain act. The issue of a letter of indemnity is sometimes used for cases when a shipper likes receiving a clean Bill of Lading while a carrier is not shipper likes receiving a clean Bill of Lading while a carrier is not allowed to do so. Within P&O Nedlloyd the issues of letters of indemnity are contrary to the company's instructions. •  Liner in Free Out (LIFO): Transport condition denoting that the freight rate is

inclusive of the sea carriage and the cost of loading, the latter as per the custom of  the port. It excludes the cost of discharging. •  Mate's Receipt: A document signed by the chief officer of a vessel

acknowledging the receipt of a certain consignment on board of that vessel. On this document, remarks can be made as to the order and condition of the consignment. •  Multimodal Transport: The carriage of goods (containers) by at least two

different modes of transport. • Negotiable:   Negotiable: In terms terms of documents, 'negotiable' m means eans that e.g. a Bill of Lading is

handed over/transferred in the right manner (viz proper endorsement) to another   person either over/transferred in the right manner (viz. proper endorsement) to another person either endorsed in blank or endorsed to a person and that person acquires, by this transfer certain rights vis-? is the goods e.g. is entitled to take  possession of the goods. goods. • Owner: The legal owner of cargo, equipment or means of transport. •  Particular Average: A fortuitous partial loss to the subject matter insured

 proximately caused by an insured peril but which is not a general average loss. Particular average only relates to damage and/or expenses which are exclusively  borne by the owners of a vessel which has sustained damage as a result of e g heavy weather or by the owners of the cargo which has been damage as a result of 

32 

 

e.g. heavy weather or by the owners of the cargo, which has been damaged in  transit.  • Quotation: Amount stated as the price according to tariff for certain services to be

 provided or issued to to a customer with specification o on n conditions ffor or carriage. • Rate: The price of a transport service. • Rebate: That part of a transport charge which the carrier agrees to return. •  Roll-on Roll-off (Ro-Ro): System of loading and discharging a vessel whereby

the cargo is driven on System of loading and discharging a vessel whereby the cargo is driven on and off by means of a ramp. •  Schedule: A timetable including arrival/departure times of ocean- and feeder 

vessels and also inland transportation. It refers to named ports in a specific voyage (journey) within a certain trade indicating the voyage (number's). In general: The  plan of times for for starting and/ and/or or finishing acti activities. vities. •  Seaworthiness: Fitness of a vessel to travel in open sea mostly related to a

 particular voyage voyage with a partic particular ular cargo. • Shipment: A separately identifiable collection of goods to be carried. •  Shipper: The merchant (person) by whom, in whose name or on whose behalf a

contract of carriage of goods has been concluded with a carrier or any party by whom, in whose name or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage. • Tariff: The schedule of rates, charges and related transport conditions. •  Time Sheet: Statement, drawn-up by the ship's agent at the loading and

discharging ports, which details the time worked in loading and discharging the cargo together with the amount of lay time used. • Voyage: A journey by sea from one port or country to another one or, in case of a

round trip, to the same port.

33 

 

SEA TRANSPORT  Definition: ―Transport ―Transport goods and commodities by ship Goods is measured in tons

 but transport is Transport goods and commodities by ship. Goods is measured in tons but transport is measured by tons / miles (the weight carried multiplied by the length of the voyage). The value of a commodity is not its price or its cost but its utility , can be invariable increased by transport for example, coal which is underground has no value , but ounce transported to a person freezing in winter it can have considerable value 

Characteristic Of Sea Transport: 

1.  Sea transport is slow – ships carrying raw material (tramp) move at around 13-

14 knots- container ships speed 18-25 knots. 2.  Sea transport is cheap because e it can take advantage of economies of scale, large ships can reduce the cost per unit carried. 3.  Sea transport connect land which separated by water.

Pattern of seaborne trade:  World seaborne trade increased strongly in 2004, reaching 6.76 billion tons of  loaded goods. The annual growth rate, calculated with the provisional data available for year 2004, reached 4.3 per cent. Total maritime activities measured in ton-miles increased to 27,635 billion ton-miles, compared with25, 844 billion tonmiles in 2003. The world merchant fleet expanded to 895.8 million deadweight tons (dwt) at the beginning of 2005, a 4.5 per cent increase.  Development of International sea born trade, selected years. 

34 

 

Total 

YEAR  

Tanker Cargo 

Dry Cargo 

Bulk Cargo 

1990 

1442 

1124 

448  

2566 

1995 

1871 

1833 

796  

3704 

2000 

1755 

2253 

968  

4008 

2006 

2163 

9821 

1288 

5983 

2008 

2674 

4724 

1828 

7416 

(All Cargoes) 

1unit - Millions Of Tons 

Shipping markets:  World seaborne trade in cargo (things to be moved) splits into three markets.   1. The Liner Market: This deals with general cargo which is usually relatively  

expensive compared with ―bulks‖ and the liner ships run on scheduled routes with

fixed tariff and condition.  2. The Dry Cargo Tramp Market: Tramps, in shipping terms relates to the way the  

ship tramps from place to place where the market drawn it .Tramps carry mainly ship load of bulk materials , the main commodities or Grain, Coal etc… . The

freight rates and conditions are negotiable as per Charter parties.  3. The Tanker Market: Tankers are specialized trumps being designed to carry liquids in bulk. The oil trade routes are limited. This market contains 2 main groups, Large tankers carry the crude oil and smaller carry the refined products. 

THE LINERS  It started through the last century when steamships appeared and started offering started scheduled services between ports. They then tended to offer a faster and more highly more highly quality service s ervice than the selling ships and  despite their higher freight rate tended to their  

rate tended to attract shippers 

35 

 

 

with high value cargo who were prepared to pay extra for speed and predictable delivery dates. In the sixtieth the conventional general cargo ship was increasingly replaced

by

the

container

ship.

Increasingly

replaced

container.

Then

containerization has had effect and it will continue to have on shipping industry   .Container ships have a larger, faster, and a quicker turn around than the ships they replace. The containers are introduced to reduce the cargo handling cost introduced cargo cost which has increased for more than any shipping cost and to increase  productivity comparing comparing port time for gener general al cargo ships and co container ntainer ships. 

LINER FREIGHT RATES  Liner freight rates are relate to a tariff of somewhat or some sort .They are, far  less volatile that those in tramp shipping. In many cases that any increases in the tariff may only take place after period of notice. To overcome short -run variation in cost such as changes in bunker prices or in rate of as changes exchanges, liner  operators generally resort surcharges typical of which are BAF AND CAF. 

LINER CONEFERENCES  Conferences are organization of shipping lines operating on particular route. For example, the Transpacific West Bound Freight Agreement operates on the route from the US to Far east route and the Indian sub-content. The conferences are formal agreement between shipping lines on route setting prices and sometimes  pooling profits or revenues, managing capacity, a locating routes and offering loyalty discounts.    

  Conferences can be either open or closed to accept new members.   Conferences issue a freight tariff.





 

 

  Conferences may also allocate output among their members by either cargo quotas or Sailing quotas.



36 

 

  

  Conferences employ policing agencies to check on adherence to the tariff  Conference Practice.



 

  The conferences set prices, often based on loyalty arrangement they use two kind of loyalty contracts; The contract rates and differ rebate .The shipper sign in agreement to deal in exclusively with the conference and in turn receive discounts on the freight rate .

 

 



  The conferences response to an entrant by lowering the rate on one of its



vessels to compete with the entrant until entrant lost money and left the market. In the last decade, the conferences have lost their importance and decline in the number of the members. 

CHARTERING 

Charterparty A charterparty is a contract of lease of a ship in whole

or in part for a long or short period of time or for a particular voyage. It has been said that its origin lies in the mediaeval Latin "carta partita" or "charta partita" or  "charta divisa", where an agreement was torn into two pieces and one half was given to each party. Proof of the whole contract was no doubt difficult if one party was obstinate - modern methods of photocopying the contract for each party seem  preferable Affreightm Affreightment ent is essentially placing a ship at the disposal of another   party, while transport is essentially the carrier taking charge of goods. Hire is i s the consideration paid under demise and time charterparties; freight is the consideration paid under voyage charterparties and bills of lading.   a) Charterparty by demise A Charterparty by demise is a contract by which the ship- owner places a ship in the hands of the chartered who assumes possession and control. The consideration paid by the chartered is hire which is payable at specified intervals during the term of the charter. Under a demise Charterparty, the 

37 

 

ship-owner appoints the master and the crew, although they are paid and controlled    by the demise chartered. chartered.  

  A bareboat charter is a demise charter whereby the bareboat chartered names,  pays and controls the master and th thee crew.



 

 

  Among the most common forms of demise charter are the "Baltic and



International Maritime Council Standard Bareboat Charter" (Code Name: "Barecon '89"); and the "BIMCO Standard Charter" (Code Name: "Barecon 2001") forms of BIMCO.   b)  Consecutive voyage charter A consecutive voyage charter party is a voyage Charterparty for a determined number of consecutive voyages. c)  Slot charter - A Charterparty whereby the shipper leases one or more "slots," each capable of holding a 20-foot container, aboard a container ship. d)  Space charter it is a contract whereby a capacity of carriage is put at the disposal of the shipper for the carriage of his goods during a period of time under   particular terms terms and conditions. W Whether hether it is a contr contract act of  Hire or a contract of carriage or even a contract of agency like a freight forwarders contract, depends on its terms. e)  Time Charterparty A time Charterparty is a contract whereby the ship-owner   places a fully equipped and manned ship at the disposal of the chartered for a  period of time time for a consideration ca called lled "hire" payable aatt specified interv intervals als during the term of the charter. Among the most common forms of time Charterparty are the New York Produce Exchange (NYPE) and the Exchange (NYPE) and Baltime. Main terms 

  Ships name and other details to identify her 



 

  Many other detail of the ship including total deadweight grain and bale cubic ,draft, number of decks hold and hatches, number and lifting capacity of  derricks ,crane etc. 

  38 

 

         

  Rate of hire expressed in days or months.   The period in months or years.   Delivery place.







  Re-delivery place.



  Delivery time ex: not before certain date.



f)  Voyage Charterparty: A voyage Charterparty is a contract whereby the ship-

owner places all or part of the carrying capacity of a ship at the disposal of the charter (the voyage chartered) for the transport of goods agreed upon, on one or  more voyages, for a consideration called "freight" based on the quantity of cargo carried, and usually payable at the end of the voyage. Among the most commonly used form is the "Baltic and International Maritime Council Uniform General Charter form of BIMCO. ― Main Contract term:          

  Ships name and other details to identify her    name and details



  The cargo and the quantity the ship carry   The loading and discharge ports   Rate of freight









 

  "Lay days and canceling" ex: loading not to commence not before a certain date with charterers having the option to cancel the charter if the ship is later than the second date.

      

  The rates of loading and discharging   Demurrage and dispatch.





  Charter party forum to be used

  Total commission in involve



 







39 

 

SHIPPING DOCUMENTATION DOCUMENTATION  Documentation used in international trade performs a number of o f separate functions and these can be divided into and can into the following categories: instruction; financial; identification; authorization.. In this section we will be dealing with those documents which are used in international trading activity. activity.  

BILL OF LADING  FUNCTION  

  It is evidence that a contract of carriage exists between shipper (exporter) and ship owner.



 

  It is a receipt for goods, showing prima facie that they have been received into the charge of a carrier.





  It is a document of title which allows title to the goods to be transferred by



endorsement and delivery of the bill of lading. 

 

Main details to be incorporated in the bill of lading     Name and address of the shipper 

 





  The name of the vessel name of the



 

  description of cargo, including identifying marks, numbers and types of   packages, types contents, contents, gross weights aand nd volume;



   

shipment    port of shipment

   port of discharge discharge





 

  details of freight, including whether it is to be "prepaid" (at port of dispatch) or  "payable at destination" (freight collect);



 

  Consignor's name and address which may be that of the buyer. Alternatively  bills of lading may be made out to show "to order" in the consignee box or "to the order of..."



 

40 

 

  

   Notify party's name and address - often an agent acting on behalf of the

consignee at the port of destination. However, the consignor's details may be entered in the "Notify party" consignor details be entered box where "order"  bills of lading are are applicable  

  Terms of sale



 

  The date on which the goods are received for shipment or date on which goods are shipment or shipped on board the named vessel

  

   Number of original original bills issued



  Signature of shipping line or its appointed agent. 



 





Principal notations on bills of lading:  Clean bills and Claused bills: 

A "clean" bill of lading is one in which no notation is shown on the document relating to cargo having been received by the line or shipped in any   other than good condition and correct n any than good and 

quantity. 

Thus, 

standard printed bills of lading usually bear the wording "Shipped (or received for  shipment) in apparent good order and condition". If no clause to the contrary is entered, the bills are said to be clean. In the case where the cargo is noted to be wet, damaged or otherwise in doubtful condition or quantity, bills of lading will be issued "claused" (or "dirty"), showing the defect in the cargo. It follows that if   goods are the  cargo. It allows  are shipped under a claused bill, consignees  may reject them or, alternatively, banks may not accept such bills of lading for   payment purposes.  Received bills and shipped bills: 

As has already been said above, a bill of lading constitutes a receipt for   goods receipt 

goods delivered into the charge of a shipping line. Thus the 

standard wording on a printed bill of standard 

 printed

lading

may

state 

41 

 

 

"Received for shipment..." and will be signed and dated by the line or its will or  agents. Although this shows that the goods have moved out of the exporter's charge into that of the carrier, it does not show that actual shipment has taken place.   Through bills of lading: 

The "through" bill of lading concept allows door-to-door shipments to be covered by a bill of lading. This became necessary following the development of  containerization. Thus, this type of bill may cover ocean shipment, plus inland transport by other modes.  Combined transport bills of lading: 

Similar to a through bill of lading, the combined transport bill of lading allows for the contract of bill the carriage to be covered by a single document and a clearly defined single set of conditions of carriage to include the use of road and/or  rail shipment at either end of the sea leg. This document will, when issued, extend the carrier's liability as set out in the carrier as set in the combined transport bill of  lading to the other transport modes. Freight forwarders operating as non-vessel owning carriers (NVOCS) will most issue this type of document.  Group age and house bills of lading: 

The concept of groupage - combining a number of individual consignments into a complete container load for shipment - has been developed over many years  by freight forwarders operating services between two inland points in different countries working in conjunction with an overseas office or partner. An ocean bill of lading for a container load of group age is issued by the shipping lines showing the sending forwarder as the shipper and the receiving forwarder as the consignee. The forwarder thereafter issues his own house bills to individual exporters. These house bills become the controlling document for the release of the cargo at destination and enable the exporter, if required, to negotiate these with his customer in return for payment of the goods. 

42 

 

 

It is important to note that a "house" bill of lading does not have the same status as an ocean bill issued by a shipping line as it is not a document of title, in the same sense of the word, as an ocean bill. However, it is capable of negotiation, and is often acceptable to banks for letter of credit purposes when this has been stipulated in the credit at the time it is opened. 

Negotiation of bills of lading: 

The bill of lading is a negotiable document which allows title to goods to be transferred by endorsement and delivery. This facility gives one or other parties to the transaction control over title to the goods and for this reason letters of credit often stipulate certain types of bill of lading in order for this control to be exercised. Three basic types of endorsement are possible:  1. Endorsement by consignee:  In this case the bill of lading is completed as below:      

  Shipper box in bill of lading: Actual shipper (exporter)



  Consignee box in bill of lading: Actual consignee (buyer)



   Notify box in bill of lading: C Consignee's onsignee's agent at port of arriva arrival. l.



 

  Completion of the bill of lading in this manner allows either the bill allows consignee to present himself in person to the line to take delivery of the goods or to endorse the bill of lading on the reverse side to allow his agent to do so and to deliver the goods to him. Thus the consignee exercises control over who takes the goods in charge at the destination port.



 

2. "To order" bills of lading    

 

  Bills of lading made out "to order" are completed as below:  

Shipper box in bill of lading: Actual shipper (exporter)





43 

 

    

 

  Consignee box in bill of lading: "To order"



   Notify box in bill of lading: A Actual ctual consignee ((buyer) buyer)



  In this instance, the shipper must stamp and sign the bill of shipper must stamp



sign the lading in order for title to the goods to be transferred to the consignee. Thus the bill of lading is useless to the consignee without this endorsement. This is a useful safeguard against bills being accidentally transmitted to buyers directly. Clearly, should this happen the buyer would not  be able to take delivery of the goods and the bill of lading would have to be returned to the shipper for endorsement and presentation to the bank. Bills shipper or and bank Bills of lading completed in this manner are also said to be "To order blank endorsed".  3. To order of (bank)  In this case, the bill of lading is completed as follows:      

  Shipper box in bill of lading Actual shipper (exporter)   Consignee box in bill of lading To the order of (bank)    Notify box in bill of lading Tr True ue consignee (buy (buyer) er)









  The bank is the party which carries out the endorsement in this instance and



which, therefore, exercises control over the goods. Thus, if the bank wishes to ensure that the buyer has actually paid for the goods before he takes delivery, the bank may goods before he takes the endorse the bill of lading when  payment is made.   

Sea waybills:  Sea waybills offer a non-negotiable alternative to the bill of lading. Generally speaking, they embody the Hague-Visby Rules. With a few exceptions they are not negotiable and are, therefore, not usable as a means of transferring title to goods. A freight forwarder might use them to control groupage cargo. The sea s ea 

44 

 

 

waybill can thus be sent forward with the goods allowing the consignee to take immediate delivery. The legal protection offered to the shipper under a sea waybill is thought by some to be inferior to that offered under a bill of lading. However,  being a relative new innovation, there has been insufficient time to test them in law. 

Letter of guarantee:  Letter of guarantee: A written undertaking, or letter of indemnity, usually  provided by a bank, promising to hold the carrier carrier harmless, up to a certain sum, for  claims that may arise from the delivery of goods to a particular person who is unable to surrender the original bills of lading in return for the goods. 

Letter of indemnity:  Letter of indemnity: A written undertaking by a shipper to indemnify a carrier  for any liability which any which the carrier may incur for having issued a clean  bill of lading when, in fact, the goods received were not as stated on the bill of  lading .Such a letter is usually a central document in a fraud, whereby the shipper  and carrier knowingly misrepresent to third parties the actual order and condition of the goods at the and of the at the time of shipment or the bad order of the  packing, or whereby they issue duplicate bills of lading to replace lost or stolen originals. Letters of indemnity or stolen originals should not be condoned by courts and are generally held ineffective as against third parties. 

MARITIME GEOGRAPHY  

  Definition: Studying seas and costal area which you have to find your way

round to pickup and deliver your cargoes.  The distances in shipping are always given in nautical miles which equal to 1852 meters. Latitude and Longitude: Latitude Is used for measuring how far   North or South and and Longitude how ffar ar east and west. Tim Timee is also Is function of  

45

45 

 

Longitude this for every 15° you move east you advance your watch one hour and   vice versa for westerly movement       

  Weather 



  Ports

  Water depth and tides

  Time zone



 







LOGISTICAL MOVEMENT BY SEA THROUGHOUT THE WORLD  

Oceanic masses and rivers are the two major components of maritime circulation. Oceanic masses account for 71% of the terrestrial surface. The four major oceans relevant to maritime circulation are: the Pacific (165 millions square km), the Atlantic (82 million square km), Indian (73 million square km) and the Mediterranean (2.5 million square (2 km). 

46

 

 

3PL (Third Party Logistics)-  ―Third-party Logistics is simply the use of an outside company to perform all or part of the firm‘s materials management and product distribution function.‖  

-- Simchi-Levi (2000)  ―A relationship between a shipper and third party which, compared with the

 basic services, has more customized offerings, encompasses a broad number of  service functions and is characterized by a long-term, more mutually beneficial  relationship‖  -- Murphy & Poist  (1998) 

Characteristics of 3PL:  o Perform outsourced logistics activities   o

Process management / Multiple activities 

o

More customized services 

47 

 

o

Mutually beneficial and risk-sharing relationship 

o

Long-term commitments (1~ 3 years).  

Why is it needed?  Advantages : 

o Cost reduction.  o Focus on co core re com competency. petency.  o Improved efficiency, service and fflexibility. lexibility.  o  Industry-specific application.  –  ―build-to-order‖ systems and e-merchants Disadvantages:  

o Loss of control.  o  Impact on in-house workforce.

 How is a 3PL Differentiated from a Transportation Provider?



        

 

  Transportation provider gets product from point A to point B   Could be considered a 3PL



  3PL provider assists in multiple functions.

Successful Implementation Implementation of 3PL 



 Why you want to select s elect the right provider the first time



 





  Just one function of logistics







  Only about 65% of companies believe their provider is doing a ―good‖ job.





 

 

3 -5 years   55% of logistics outsourcing contracts end in 3-5



48 

 

  

  The source had a list of 14 key tips for success, but we are going to focus on the 5 most important issues.





1) Have an outsourcing strategy. 

what your outsourcing strategy is. It needs to be well thought out and  Know measured against in house solutions and capabilities.  SWOT analysis. As a company you should understand the strengths, weaknesses, opportunities and threats of outsourcing logistics, rather than





   



keeping them in house.



2) Do your homework. 

Do comprehensive study: Clearly document advantages, challenges, costs  andabenefits.

  expectations: Set down expectations in clear terms  Document include current costs.  Make a site visit to the 3PL, and talk with its existing customer . 





 





and



3) Measure and review performance p erformance  

 Have a efficient and accurate measurement system: Qualitative measures  

that focus on effectiveness and quantitative measures that focus on efficient utilization.



 Have an efficient costing system: This will help you to understand the costs involved in outsourcing.  ―Are we making money doing this?‖



 





4) Create an Implement Implementation ation Strategy



49 

 

  

Create a project plan road map : Be clear who does what, create a project    management team with members from both organizations and review



 progress vs. planned planned milestones.









5)  Nurture the Relationship: Relationship: Both Pa Parties rties must nurtur nurturee the relationshi relationship p to make outsourcing successful. Create mutual trust, respect and a sense of integrity. A third-party logistics provider (3PL) Provides outsourced or 'third party'  

logistics services to companies for part or sometimes all of their supply chain management functions. Well known 3PLs include DHL, Wincanton, NorbertDentressangle, CEVA & NYK Logistics 

A fourth-party logistics provider (4PL) is an independent, singularly  accountable, non-asset based integrator who will assemble the resources,

capabilities and technology of its own organization and other organizations, including 3PLs, to design, build and run comprehensive supply chain solutions for  clients. 

50 

 

4PL (4 

party logistics) 

 Manage and direct the activities of multiple 3PLs, serving as an integrator 



 

 

th

Refinement on the idea of 3PLs





 

 

4PLs are not asset based like 3PLs 3P Ls

 Assembles and manages the resources, capabilities, and technology of  its own organization and other organizations to design, build and run

 



comprehensive supply chain solutions.

 



Transways Express 4PL  

 

 

 One stop transport and logistics supplier.

 



Work with suppliers and customers.





51 

 

PORTS IN INDIA  India has a long coastline, spanning 7600 kilometers, forming one of the  

 biggest peninsulas in the world. It is serviced by 13 major ports (12 government and 1 corporate) and 187 notified minor and intermediate ports. The latest addition to major ports is Port Blair on June 2010, the 13th port in the country.   Major ports handled over 74% of all cargo traffic in 2007. However, the words "major", "intermediate" and "minor", do not have a strict association with the traffic volumes served by these ports. As an example, Mundra Port, a newly developed minor port in the state of Gujarat registered cargo traffic of around 28.8 million tonnes per annum during the financial year of 2008, which is higher than that of many major ports.  The classification of Indian ports into major, minor and intermediate has an administrative significance. Indian government has a federal structure, and according to its constitution, maritime transport falls under the "concurrent list", to  be administered by both the Central and the State governments. While the Central Shipping Ministry administer the major ports, the minor and intermediate ports are administered by the relevant departments or ministries in the nine coastal states —   West Bengal, Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Maharashtra and Gujarat. Several of these 187 minor and intermediate ports are merely "notified"; little or no cargo handling actually takes place. These ports have  been identified by the respective governments to be developed, in a phased manner, a good proportion of them involving public –   private partnership. partnership.  Cargo handling is projected to grow at 7.7% until 2013-14. Some 60% of   India‘s container traffic is handled by the Mumbai Port and Jawaharlal Nehru Port

Trust in Navi Mumbai. 

52 

 

MAJOR PORTS IN INDIA  There are also 7 shipyards under the control of the central government of India, 2 shipyards controlled by state governments, and 19 privately owned shipyards. The major ports handled 423.4 million tons of cargo for the financial year 2005-2006, with Vishakhapatnam, Kochi, Kolkata Port, Chennai Port and Kandla carrying the greatest tonnage. Major ports can collectively handle 400+ million tons of cargo annually, and port operations have improved since the mid1990s. All major ports, except one (Ennore Port), are government administered,  but private-sector participation in ports has increased. The brief information of  some major ports In India is as follows: 

1. CHENNAI PORT  Chennai Port formerly known as Madras Port, is the second largest  port of India, behind the Mumbai Port, and the largest port in the Bay of Bengal. Being the third oldest port among the 12 major ports of India, it is over 125 years old, although maritime trade started way back in 1639 on the sea shore. It is an artificial and all-weather port with wet docks. It was a major travel port before  becoming a major container port. port. It is a substantial reason for the economic economic growth of Tamil Nadu, especially for the manufacturing boom in South India, and has contributed in no small measure to the development of the city. It is due of the existence of the port that the city of Chennai became known as the Gateway of  South India. The port with 3 docks, 24 berths and draft ranging from 12 to 16.5 m (39 to 54.1 ft) has become a hub port for containers, cars and project cargo in the east coast of India.  Location and geography 

Chennai Port lies on a flat coastal plain known as the Eastern Coastal Plains on the east coast of the Indian peninsula known as the Coromandel Coast in the Bay of Bengal. The port is situated on the thermal equator and is also coastal, 

53 

 

 

which prevents extreme variation in seasonal temperature. The climate is tropical, specifically tropical wet and dry, and for most of the year, the weather is hot and humid, with temperatures ranging from a maximum of 42°C in May to a minimum of 18°C in January. The annual rainfall in the region is about 1250 mm, and the spring tides are up to 1.2 m (3 ft 11 in).  Chennai Port  Location 

India 

Country  Location 

Chennai (Madras) 

Details  Opened 

1881 

Operated by 

Chennai Port Trust 

Owned by 

Chennai Port Trust, Ministry of Shipping, Government of India  

Type of harbor  Coastal breakwater, artificial, large seaport  Size of harbor  169.97 ha (420.0 acres)  Land area  Size 

237.54 ha (587.0 acres)  407.51 ha (1,007.0 acres) 

Available berths  26  Employees 

8,000 (2004) 

Chairman 

Atulya Misra 

Main trades 

Automobiles, motorcycles and general industrial cargo including  iron ore, granite, coal, fertilizers, petroleum products, and containers 

54 

 

 

Majorexports:Ironore,leather,cottontextiles  

Major imports: Wheat, raw cotton, machinery.  World 

Port 

49450 

Index Number 

http://www.chennaiport.gov.in/ 

Website 

Port layout and infrastructur infrastructuree 

Chennai port was the second smallest in the country measured by surface area, encompassing only 274 hectares. Chennai port  Area  area is  divided into north,  central and south  Type  Nos.  (sq.m)  zones and fishing harbors Dr. Ambedkar   Dock,  Covered  Satabt Jawahar Dock, and Bharathi Dock along   Warehouses  12  65,686  with the container terminal, and draft ranging   from 12 – 16.5 16.5 m (39 – 54.1 54.1 ft). Jawahar Dock has 

Transit sheds 

6 ert s, B arat

Covered

Doc

as 3 ert s or o an  

area 

iron ore), the container terminal has 3 berths and  for FCI  the moorings has 1 berth. The berths can handle   containers as well as liquid and dry bulk and    breakbulk cargoes. cargoes.  Region 

Water spread  Land area 

No. of   berths 

Inner harbour   218 acres 

413 acres  16 

Outer harbour  200 acres 

100 acres  7 

Total 

513 acres  23 

418 acres 

Container   freight stations 



36,000 



43,450 



12,600 

55 

 

Terminals  Chennai Container Terminal: Chennai Container Terminal (CCT) is the first  

container terminal in Chennai port built in 1983. The container terminal was  privatized in 2001 and is operated by DP World since 30 November 2001 with a capacity of 1.2 million TEUs. CCT is managed under a 30 year build-operatetransfer agreement set up with the Chennai Port Trust of the Government of India. The terminal is capable of handling fifth generation vessels up to 6,400 TEU and has direct services to China, West Africa, Europe and the United States. Chennai International Terminal. Chennai International Terminal Pvt Ltd (CITPL) is the second container terminal that started operations from June 22, 2009. The buildoperate-transfer facility, built at a cost of about US$110 million, is a joint venture  between PSA International International and Ch Chennai-based ennai-based Sical Logisti Logistics cs Ltd.  Ro-Ro car terminal 

Dubbed the Detroit of Asia, Chennai is base to several international car makers, namely, Ford Motor Co., Hyundai Motor Co., Nissan Motor Co., Renault SA, Daimler AG and BMW AG. Car export (mainly Hyundai) increased by 80.25 per  cent to touch 2, 48,697 during 2008-09 as against 1,37,971 in the previous year. The port handled 65 car carriers compared with 40 in the previous year. In 2009, the port shipped nearly 274,000 cars, 10 per cent more than the previous year. The  port is now the number one ro-ro car terminal in the country. After Hyundai, the  ports have started attracting attracting global manufacturer manufacturerss like Mahindra, Toyota, an and d Ford. Ford has decided to move exports to Chennai Port by 2010.   Hyundai Motor India is coming up with a first-of-its-kind dedicated automobile terminal at the Chennai port. The Chennai port facility is expected to  be on the lines of its Ulsan Port, from where it exports half of Korea's 1,500,000 vehicles annually. The export terminal at the Chennai port would cater to its total 

56 

 

Export 

target of 300,000 

Total 

cars, which would be 50 per   Cargo-Handling Equipments  cent of   its total production Locos (diesel) Chittaranjan   by 2009-10. 

8  10 

BHEL loco 



Diesel/electric loco 

Cruise terminal 

Units 

The Chennai Port Trust has  Mobile cranes 

12 

already in place a cruise 

Fork lift trucks 

55 

On  an  average, Floating crane 



terminal. 

seven to eight cruise vessels  Electrical forklift trucks  dock in the port each year. 

24 

The  country's 

first cruise Pay loaders 



AMET  Majesty, is Shore electric cranes 

25 

ship, 

registered in Chennai and is  Transfer cranes 

10 

set to start from Chennai on  Tractor head 

34 

8 June 2011.  In  2007,  a 

Container

quay

cranes

(35.5T/40T 

fully capacity) 



automated,  round-the-clock  Top lift trucks (25T and 35T capacity) 



helpline  for    providing  information  on the  ships Trailers 

32 

 berthed 



and  waiting, 

the Crawler-mounte Crawler-mounted d cranes 

scale of rates and facilities 

Empty container handler  



available at the port, the first  Reach stackers 



of its kind in the country,   10T/3T FLT  was established. In the same 



year, the Indian government agreed to lift restrictions on concessionary Sri Lankan tea and apparel exports at the port. 

57 

 

 

On 11 May 2011, the Madras High Court directed the Shipping Secretary that only clean cargo such as containers and cars be allotted to the port for handling from 1 October 2011. The port is one of the six ports in India through which drugs are  permitted to be imported, which is handled by the Central Drugs Standard Control Organization (CDSCO), the other ports being Kolkata, Mumbai, Nhava Sheva, Kochi and Kandla ports.  As of 2011, cargo movement to the port is increasing by 21 per cent.   Single Operator Container Terminal  On 16 February 2005, Dubai Ports World announced that it has  

formally signed an agreement with the Copt to construct, develop and operate an International Container Transshipment Terminal (ICTT)  –  An India Gateway Terminal – at Vallarpadam.  Approval for the agreement was given by the Cabinet Committee of  Economic Affairs of the Government of India, Ministry of Finance and meanwhile, the DP World will manage and subsequently transfer its operations at the Rajiv Gandhi Container Terminal in Cochin Port to the new terminal upon its completion. Vallarpadam Terminal is the largest single operator container terminal in India and the first in the country to operate in a special economic zone. The terminal makes Kochi a key centre in the shipping world reducing India‘s dependence on foreign ports to handle transshipment.  • In the first phase there will be 600 m Quay length and a draft of more than 15 m,

when the terminal may handle 1 million TEU containers annually by the end of  2012. • In the second phase the capacity will be enhanced to 3 million TEU's by the end

of 2014. • In the third phase the terminal may handle even up to 5.5 million TEU's.

The total cost of the project is estimated at 3200 crore. 

58 

 

2. Visakhapatnam Port.  Visakhapatnam is a major sea port on the south east coast of India.  

According to the history, the city was named after the god of Valor, Visakha. Visakhapatnam port Situated on the east coast of India, Visakhapatnam serves as the gateway for waterways for the state of Andhra Pradesh. Visakhapatnam has one of the country's largest ports and its oldest shipyard on the eastern coast of  India. It is a land-locked harbour as it is connected to the sea by a channel cut through solid rock and sand. The shipbuilding yard situated at Visakhapatnam is the largest in India. Situated on Chennai - Kolkota corridor, the city is also a hub of  on-ground traffic. The Gangavaram Sea Port is India's deepest sea port. In December 2010, Coal India agreed a deal that would allow an additional berth to  be built at the port. port.  Gangavaram Port, located in  Andhra Pradesh, is  India's deepest port. 

Inaugurated in July 2009, it has a depth of 21m. It is managed by Gangavaram Port Ltd., a special-purpose company floated by Mr. DVS Raju, who serves as its Chairman and Managing Director. The company is owned by the DVS Raju Group (59%), global Private Equity firm Warburg Pincus (30%) and the Andhra Pradesh Government (11%).  Country 

India 

Location 

Andhra Pradesh 

Details  Opened 

July 2009 

Owned by 

Gangavaram Port Ltd. 

Size 

2,800 acres (11 km ) 

Statistics   Website 

www.Gangavaram.com 

2

59 

 

History of Gangavaram Port 

Construction of the port began in December 2005, and commercial operations commenced in August 2008. The port was formally inaugurated in July 2009, by the Andhra Pradesh Chief Minister Y S Rajasekhara Reddy. Fishermen in the Gangavaram and Dibbapalem villages, who were directly affected by the construction of the port, demanded construction of an alternative jetty and a relief  and rehabilitation package. The DVS Raju group invested Rs. 1,850 crore in the development of the port. Gangavaram Port Ltd. has taken a loan of Rs. 1,170 crore from a consortium of 13 banks, including the State Bank of India, to fund the Phase I development.  Comparisons with the Vizag port 

The first client of the Gangavaram Port Ltd. is the Rashtriya Ispat Nigam Ltd., which runs the Vizag Steel Plant, and earlier used the Vizag port. The Gangavaram Port Ltd. plans to build conveyors for taking imported raw materials directly to the Vizag Steel plant, in order to reduce the railway transportation costs.   The Union Government of India, which owns the Vizag port, had  proposed a joint venture between the Vizag port and the private operator of the Gangavaram port to make sure that the Vizag port's business remains unaffected. However, this proposal was rejected by the then Andhra Pradesh Chief Minister,  N. Chandrababu Naidu. Naidu.  DVS Raju, while talking to reporters during the port's inauguration ceremony, insisted that it would be "complementary in nature" to the Vizag port, and not a competitor.  The Gangavaram port is capable of handling Super Cape size vessels of  up to 200,000 DWT. The State Government plans to construct a Rs. 21-crore fourlane flyover to the Gangavaram port. 

60 

 

3. Ennore Port. 

 

Ennore Port  Location  Country  Location 

India  Ennore, Chennai 

Details  Opened 

2001 

Operated by 

Ennore Port Limited 

Owned by 

Ennore Port Limited 

Type of harbor 

Seaport (Artificial) 

Available berths 



Employees  Chairman cum 

86 

Managing Director 

S. Velumani  16.00 million tonnes (2008-09)  Thermal coal, iron ore, LNG, POL, chemical che mical and other liquids, 

Capacity   Main trades 

crude and other bulk and rock mineral products  Statistics  Annual cargo 

11.01 million (2010-11) 

tonnage  Annual revenue 

1666.5 million (2010-11) 

Net income 

706.4 million (2010-11) 

Vessels handled 

294 (2010-11) 

Website 

http://www.ennoreport.gov.in/  Ennore Port, located on the Coromandel Coast about 24 km north of  

Chennai Port, Chennai, it is the 12th major port of India, and the first port in India which is a public company. The Ennore Port is the only corporatised major port and is registered as a company. The Centre holds a stake of about 68 per cent in the  

61 

 

 

Ennore Port and the remaining 32 per cent is held by the Chennai Port Trust. The  port has been able to attract an investment of 26,000 million by private entrepreneurs on various terminals and harbour craft. Ennore Port, designed as   Asia‘s energy port, has only 86 employees. Hailed as a landmark port, it is the first

corporatized port in India. Envisaged being a satellite port to decongest and improve the environmental quality at the bustling Chennai Port, Ennore Port is evolving itself into a full-fledged port with the capacity to handle a wide range of   products. With a permissible draught of 13.5 m, the port handled a total volume of  11.01 million tonnes in 2010-11, up by 2.86 per cent from the previous year.  History  Ennore Port was originally conceived as a satellite port to the Chennai Port,  

 primarily to handle thermal thermal coal to meet the requirement of Tamil Nadu Electricity Board (TNEB) and was endowed with large chunks of land (about 2,000 acres). The scope was expanded taking into account subsequent developments such as the  plan of Governm Government ent of Tamil Nadu to set up a 1,880 mW LNG power project in association with a private consortium, a large petrochemical park and a naphtha cracker plant. Ennore Port was commissioned by the then Prime Minister of India on 1 February 2001. The port was set up under the Companies Act, keeping it outside the scope of the Tariff Authority for Major Ports, the tariff regulator for 11 of the 12 ports owned by the Indian government. The port was declared as a major   port under the Indian Ports Act, 1908 in March 1999 and incorporated as the Ennore Port Limited under the Companies Act, 1956 in October 1999. Commercial Commercial operations commenced with Handymax geared vessels for unloading of thermal coal on 22 June 2001. With the deployment of self-unloading and gearless vessels of 65,000/77,000 DWT, full-fledged operations were started in December 2002. 

62 

 

Operations  Commissioned in 2001 and operating on a landlord port concept, it is outsourcing all services required for operation and maintenance, and new terminals are being developed with the participation of the private sector. During the year of  2010-11, it handled a total cargo of 11.01 million tons. The port has effectively taken over all the ore movement from the Chennai Port. By 2016, the port is expected to have the capacity to handle over 80 million tons of cargo and its coalhandling capacity is expected to be about 43 million tons. The port is equipped to handle 16 million tonnes of coal per year from its two dedicated coal berths manned by TNEB, while its third berth promoted by Chettinad International Coal Terminal, is a common user facility that can handle 8 million tonnes per annum.  Cargo handled by Ennore Port (in million tonnes)  Commodity  

2007-08 

2008-09 

Thermal coal 

9.05 

9.71 

Iron ore 

2.19 

1.11 

0.32 

0.68 

11.56 

11.50 

Petroleum,  (including STS)  Total 

oil 

and 

lubricants 

(POL) 

According to the Maritime Agenda 2010-20, the port traffic is projected to increase to 67.44 million tonnes in 2016-17 and 71.54 million tonnes in 201920.Against this projected traffic growth, the port's capacity is expected to increase from the existing 16 million tonnes (as on March 31, 2010) to 73 million tonnes in 2016-17. The target set for the port for 2010-11 is 13.20 million tonnes against a target of 12.45 million tonnes during the previous fiscal. During 2010-11, the port handled a total of 294 vessels, including 184 dry bulk, 87 liquid bulk, 22 break  

63 

 

 

 bulk and 1 container vessels against 273 vessels in 2009-10, registering a 7.69% increase.  Car exports took place through the port for the first time in 2010-11. A total of 54,264 cars were exported through the port by Renault Nissan Automotive India Pvt. Ltd.  Terminals:  The Chettinad International Coal Terminal (CICTL), the private terminal at  

the port capable of handling Panamax ships, commenced operations in January 2011 and is targeting to handle nearly 5 million tonnes of coal/coke by current financial year ending March 31, 2012. The terminal was completed with equipments and conveyor systems, yard and evacuations systems with capacity to handle 8 million million tonnes of coal/co coal/coke ke annually at project outlay of about 4,000 million.  The Ennore Container Terminal (ECT), also known as the Bay of Bengal Gateway Terminal, will have an eventual planned annual capacity of 2.4 million TEUs. The construction is expected to begin by end of 2011 at a cost of £207 million, allowing the first ships to be handled in 2013. The terminal for 6,000-to-8,000 TEU vessels will have a quay length of 1,000 m with 15 m water depth at the  berths and will be able to handle three container vessels of up to 8,000 TEUs simultaneously.  Development works: 

The Planning Commission has approved a rail connectivity for Ennore Port to the coal, iron and container terminals. There is a US$230-million expansion for the  port in progress. An iron ore terminal is currently in the process of construction by PSA Sical. The terminal will have a capacity for 12 million tonnes of cargo per  year, expandable to 15/20 million tonnes per year. Facilities include a jetty, ship loader, mechanized handling system with conveyor, storage, and a wagon  

64 

 

 

unloading system. The port is expanding its cargo handling capacity to 87 million tonnes a year in the next 5 years as mandated by the Union Government, according to a press release from Ennore Port Ltd. 

With the inauguration of three new terminals to handle non-TNEB coal, iron ore and cars in 2010, the installed capacity of the port had doubled from 15 million tonnes to 30 million tonnes.  A

1,700-million capital dr dredging edging pr project oject was commenced aatt the p port ort on 26

February 2011.  Rail link: 

Rail connectivity project works to link coal and iron ore stackyards with Athipattu  – V station on the Chennai –  Vijayawada ijayawada mainline is under the implementation at a cost

of 516 million.  Connectivity: 

The highway authority is implementing a project for construction of 30.1 km (18.7 mi) segment of Chennai-Ennore Port connectivity. Announced by the Tamil Nadu Government in 1998, the cost of the Chennai-Ennore Port Road Connectivity  project, earlier called Ennore-Manali Road Improvement Improvement Project, has escalated by four times times to 6,000 mil million. lion. The p project roject is to to enable free free flow of truck traffic ffrom rom and to the Chennai port in North Chennai. The Ennore Port handles over 5,000 containers a day and trucks need to take this Ennore-Manali road for entry and exit to the port. The project is still in the "tendering" stage —   previous tenders were cancelled for various reasons.  The project will commence in January 2011 and will be completed in 2 years. The Union Government has decided to lay a 21.1-kilometre (13.1 mi)-long 4-laned national highway (port corridor) connecting Ennore with Thacchur at a cost of  3,740 million. 

65 

 

4. HAZIRA PORT: 

India: Hazira  Location of Hazira  Country in Gujrat and India 

State 

Gujarat 

District(s) 

Surat 

Nearest city 

Surat  Hazira Area Development  Authority 

Civic agency  Population 

67,829 (2009) 

• Density 

• 404 /km (1,046 /sq mi) 

2

IST (UTC+05:30)  168 16 8 km km (65 (65 ssq q mi) mi) 

 

Time  zone Area

• Elevation  Codes  • Pin code  • Telephone  • Vehicle 

• 2 meters (6.6 ft)  • 394230 

• +0261  • GJ-5 

Transport 

Hazira is 300 kilometers north of Mumbai, 21 kilometers from Surat city and 31 kilometers from Udhana. Access is via NH-6 and NH-8. A new coastal highway 

66 

 

 

connecting Hazira with Navsari which will reduce the commute time has been  planned. The project to broaden NH-6 from four to six lanes is under construction with the National Highways Authority of India (NHAI).  Port: Hazira Port is a joint-venture between Shell Gas B.V. and Total Gaz  

Electricite Holdings of France. Shell holds 74% in the venture, with Total holding  

the remainder .  Hazira is a Port Town and a   transshipment  port port in the   Surat district  in the 

state of Gujarat in southwestern India.  Hazira is one of the major ports of India and most important element of Region. It is also known as the industrial hub of India. The town is located on the bank of the Tapti River, eight kilometers‘ from the Arabian Sea. It is a centre for health tourism due to its natural springs, and also home to major industrial and shipping facilities like Essar Group of Industries, Shell, Larsen & Toubro & Reliance. 

67 

 

5. Kandla Port:  Country 

India 

State 

Gujarat 

District(s) 

Kutch 

Area  • Elevation  Codes  • Vehicle 

• 3 metres (9.8 ft)  • GJ-12 

Kandla is a seaport in 

Kutch District of Gujarat state in western India. Located on the Gulf  of Kutch, it is one of major ports on west coast. Kandla was constructed in the 1950s as the chief seaport serving western  India, after the partition of India from Pakistan left the port of Karachi in Pakistan. After Indian independence in the late 1940s, the new government selected the Port of Kandla as a promising outlet to the Arabian Sea. When the Port of Karachi was lost to Pakistan, maritime trade in the area shifted to the Port of Mumbai (formerly Bombay). The Port of Kandla Special Economic Zone (KASEZ) was the first special economic zone to be established in India and in Asia. Established in 1965, the Port of Kandla SEZ is the biggest multiple-product SEZ in the country. Covering over 310 hectares, the special economic zone is just nine kilometers from the Port of Kandla. Today, the Port of Kandla is India's hub for exporting grains and importing oil. This self-sufficient port is one of the highest-earning ports in the country. Major imports entering the Port of Kandla are petroleum, chemicals, and iron and steel machinery, but it also handles salt, textiles, and grain.  

68 

 

Facilities: 

• Total Custom Bonded Port 

Area inside the custom fencing is 185 hectares. An additional 76.5 hectares is  being developed shortly.  • Eleven Dry Cargo Berths in

straight quay line in sheltered creek with a totallengthof1987meters.  • Six Oil jetties. • Total Custom Bonded Port

Area inside the custom fencing is 185 hectares. An additional 76.5 hectares is being developed shortly.  • Loading/Unloadi Loading/Unloading ng facilities for barges available for stream handling. • Seventy licensed private Barges available at competitive rates. • Adequate storage capacities in both Dry and Liquid Areas. • Well Developed Road Network directly connecting to National Highway and

Railway Network connecting to the Broad Gauge Train Routes which is further being upgraded.  Cyclone of 1998:  A tropical cyclone hit the port in 1998. The official death toll was 1,000 

 but locals in the area believed it was closer to 10,000. Most of the casualties came from illegal immigrant workers in the port itself and poor shanty towns in the region. Although the cyclone was tracked by the Indian government for 3-4 nights no effort was made to warn port employees this catastrophe shows a failure of  government and business ethics and a complete disregard for the life of the poor.  

69 

 

6. Port of Kolkata  The Port of Kolkata is a riverine  port 

in the city of Kolkata, India. It is the oldest operating port in India, having originally been constructed

by

the

British

East

India

Company. The Port has two distinct dock  systems - Kolkata Docks at Kolkata and a deep water dock at Haldia Dock Complex, Haldia.  In the 19th century Kolkata Port was the premier port in British India. After  independence its importance decreased   because of factors including the Partition of Bengal (1947), reduction in size of the  port hinterland and economic stagnation stagnation in eastern India. In the 21st century due to the east Indian economic recovery and infrastructure improvements, the port grew swiftly to become the nation's third largest container port. It was one of India's  fastest growing ports in 2004-05. 

History:  View of the Calcutta Port in  1852  K olkata olkata Port was set up by  

the

British

East

India

Company after the company received trading rights from the

Mughal

Aurangzeb. 

emperor 

70 

 

 

Following the shift of power from the company to the British crown, a port commission was set up in 1870. After the independence, the Commissioners for  the Port of Kolkata was in responsibility of the port till January 1975 when Major  Port Trusts Act, 1963, came into force.  Kolkata Dock System (KDS):  

It is situated on the left bank of the Hooghly River at 22° 32' 53" N, 88° 18' 5" E   —  about 203 km (126 miles) upstream from the sea. The pilotage station is at

Gasper/ Saugor roads, 145 Kilometers to the south of the KDS (around 58 km from the sea). The system consists of:    

Kidderpore Docks (K.P. Docks) : 18 Berths, 6 Buoys / Moorings and 3 Dry

 

Docks  Netaji Subhas Docks (N.S. Docks): 10 Berths, 2 Buoys / Moorings and 2





 

Dry Docks





 

Budge Budge River Moorings : 6 Petroleum Wharves

 

Anchorages: Diamond Harbour  —   — 1. Saugor Road 2. Sand heads





 



 

Apart from this, there are around 80 major riverine jetties, and many minor jetties, and a large number of ship breaking berths.  Haldia dock complex (HDC):  It is situated at 22°02' N, 88°06 E  —   —  60 kilometers away from the pilotage  

station. The complex consists of:    

Impounded Dock. System with 12 Berths

 

3 Oil Jetties in the River 

 

3 Barge Jetties in the River for handling Oil carried by Barges.

 

Haldia Anchorage for LASH vessels





 



  

 





All the docks are impounded dock systems with locks from river  



71 

 

7. Port of Cochin   Location  Country 

India 

Location  Details 

Kochi 

Opened 

May 26, 1928 

Operated by 

Cochin Port Trust and Dubai Ports World 

Owned by 

Ministry of Shipping, Government of India 

Available  berths 

9 berths in Ernakulam Wharf and 4 berths in Mattancherry Wharf  

Wharfs 



Chairman 

Shri N. Ramachandran, IPS 

Statistics   Annual  container 

2,89,817 TEU (2009) 

volume  Value of cargo  17.43 million tonnes  Website  CochinPort.com  The office of the Cochin Port Trust in Willingdon Island 

The  Port of Kochi  (officially

the

Cochin 

Port) is a major port on 

the Arabian Sea - Indian Ocean sea-route and is one of the largest ports in India. The port lies on two islands in the Lake of  Kochi namely the 

72 

 

 

Willingdon Island and Vallarpadam, towards the Fort Kochi river-mouth opening onto the Arabian Sea. The Vallarpadam International Container Trans-shipment Terminal (ICTT), a part of the Cochin Port , is the largest container trans-shipment facility in India.  The port is governed by the Cochin Port Trust , a Government of India  establishment. The modern port was established in 1926 and has now completed 86 years of active service.  The Kochi Port is one among a line of maritime-related facilities based in the port-city of Kochi, the others being, the Cochin Shipyard, the largest ship building as well as maintenance facility in India, the SPM (Single Point Mooring facility) of the Kochi Refineries - an offshore crude carrier mooring facility, and the Kochi Marina.  History: 

The Cochin port was formed naturally due the great floods of Periyar in 1341 AD, which choked the Muziris port (Kodungallur), one of the greatest ports in ancient world. Ever since the choking of Muziris, Cochin became one of the major ports with extensive trading relations Romans, Greeks and Arabs, all lured  by the traditional spice wealth of the state. The traditional port was located near  Mattancherry (which still continues as Mattancherry Wharf).  The construction of the dredger `Lord Willingdon' was completed in 1925. It arrived at Cochin in May 1926. It was estimated that the dredger had to be put to use for at least 20 hours a day for the next two years. . The dredged sand was used to create a new island to house Cochin Port and other trade related establishments. Around 3.2 km² of land was reclaimed during the dredging process. The strong determination of Sir Bristow and his team, finally paid success, when large steam ship SS  Padma, sailed into sailing from newly constructed inner harbour of Kochi. Speaking to the BBC on that day, Bristow proudly proclaimed his achievements at  

73 

 

 

the Kochi port with the following words: I live on a large Island made from the  bottom of the sea. It is called Willingdon Island, after the present Viceroy of India. From the upper floor of my house, I look down on the finest harbour in the East.   In 1932, the Maritime Board of British India declared Port of Cochin as a major port. The port was opened to all vessels up to 30 feet draught. During the World War-2, the port was taken over by Royal Navy to accommodate several military cruisers and war ships. The port was returned to civil authorities on May 19, 1945. After Independence, the port was taken over by Government of India. In 1964, the administration of the Port got vested in a Board of Trustees under the Major Port Trusts Act. The port was listed as one among 12 major ports of India. 

Organizational structure:  Cochin Port Trust is an Autonomous Body under Govt.of India and is

managed by Board of Trustees constituted by the Government of India. The Board is headed by the Chairman who acts as the Chief Executive Officer. The Govt.of  India may from time to time nominate the trustees in the Board representing various interests. Chairman is assisted by the Deputy Chairman who in turn is assisted by Department Heads and officials of the following departments functioning in the Port.  a) General Administration Departm Department. ent.  b) Traffic Department. c) Accounts Department. d) Marine Department. e) Civil Engineering Departm Department. ent. f) Mechanical Engineering Department. g) Medical Department

74 

 

Navigational channel: 

The entrance to Port is through the Cochin Gut between the peninsular  headland Vypeen and Fort Cochin. The port limits extend up to the entire  backwaters and the connecting creeks and channels. The approach channel up to the Cochin Gut, is about 1000 meters long with a designed width of 200 meters and maintained dredged depth of 13.8 meters (now dredging for 18 meters for  ICTT).  Infrastructuree facilities:  Infrastructur

A draft of 38 ft. is maintained in the Ernakulam channel along with  berthing facilities, facilities, which  enables the Port to bring in larger vessels to the Port. In the Mattancherry channel a  draft of 30 ft. is maintained. The Port provides  round the clock pilotage to ships

subject

to

certain

restrictions on the size and draft of the vessels. There is an efficient network of  railways, roads, waterways and airways, connecting the Port

with

the

hinterland

centers spread over the State of Kerala, Tamilnadu and Karnataka.  The International Container Trans-shipment Terminal (ICTT) of the   Kochi Port  

75 

 

8. Nhava Sheva: 

A Container ship at Nhava Sheva Port 

Nhava Sheva is the 6th largest port and largest container port in India.  

The main goods exported are cotton shirts, knitted t-shirts, sporting goods, carpets, other textile articles, such as embroidery machines, boneless meat, and medicaments.The main imports are chemicals, machinery, plastics, electrical machinery, vegetable oils and aluminum and other non-ferrous metals. It has access to neighbouring Mumbai and to the hinterland of Maharashtra, Madhya Pradesh, Gujarat, Karnataka, and most of North India. It is located south east of  Mumbai The port was developed to relieve pressure of the port of Bombay (Mumbai) in Bombay proper and was commissioned on May 26, 1989. It has three  

76 

 

 

terminals: JNPCT, NSICT and GTI (Gateway Terminal of India). NSICT is India‘s

first privately managed container terminal. It is run by Dubai Ports World. Currently it is managed under a Build-Operate-Transfer agreement set up with the Jawaharlal Nehru Port Trust (JNPT) of the Government of India.  Location  Country 

India 

Details  Operated by 

Jawaharlal Nehru Port Trust 

Owned by 

Government of India 

Statistics  Annual cargo  Bulk: 7.88 million tons (2010-11)   tonnage  Container: 56.43 million tons (2010-11)  Annual container   4.27 million TEU (2010-11)  volume  Website 

nport.gov.in 

Jawaharlal Nehru Port Trust:   Jawaharlal Nehru Port is a port in Maharashtra, India that borders the Arabian Sea. The sea port is named after the first Prime Minister of India, Jawaharlal Nehru. It was inaugurated by the late Prime Minister of India Shri. Rajiv Gandhi in the year 1989. This is a Satellite Port which reserves 80% of its  port for greenery. greenery.  Jawaharlal Nehru Port was planned for construction in the year 1965. During this  period India has a huge deficit of food grains. So this port was planned for  importing food grains. By the time Jn port was inaugurated it started to export food grain as the country had surplus food supply. Later as a development process the  port started container terminal. By the year 2003 JNPT Bulk Terminal was totally scrapped. 

77 

 

 

The port is run by the Jawaharlal Nehru Port Trust , an organization entrusted with the operations of the large shipping port in Navi Mumbai, India and controlled by the Central Government of India. JN Port follows the Tariff  Authority of Major Port. The port lies on the mainland, opposite the city of  Mumbai across the Thane Creek. It is well connected to major highways and rail networks in India. The closest suburban railheads are CBD Belapur and Panvel. 

Facilities:  The JNPT Container Terminal is operated by JNPT. It has a quay length of  680 meters (2,230 ft) with 3 berths. It can handle up to 15.6 million tons of  cargo.[6] NSICT was India‘s first privately managed container terminal.The 

Gateway Terminal (GTI) has been leased to a consortium of APM Terminals and the Container Corporation of India. It started operations in 2006.The BPCL Terminal is leased to a joint-venture between Bharat Petroleum and Indian Oil. It mostly handles crude imports and refined petroleum products exports at its 2  berths. The port is well connected by rail and road to neighbouring Mumbai and to the rest of India. 

Traffic:  Major exports from Nhava Sheva are textiles, sporting goods, carpets, textile machinery, boneless meat, chemicals and pharmaceuticals. The main imports are chemicals, machinery, plastics, electrical machinery, vegetable oils and aluminum and other non-ferrous metals. The port handles cargo traffic mostly originating from or destined for Maharashtra, Madhya Pradesh, Gujarat, Karnataka, as well as most of North India. 

Recent developments:  In 2000 there were 102 shipping companies opera operating ting in India, of which five were privately owned and based in India and one was owned by the government (Shipping Corporation of India). In 2000 there were 639 government-owned ships, 

78 

 

 

including 91 oil tankers, 79 dry cargo bulk carriers, and 10 cellular container  vessels. Indian-flagged vessels carried about 15 percent of overseas cargo at Indian  ports for financial financial year 2003.  The Port Pipavav in Saurashtra handled by APM terminals; developed by AFCONS is one of the most efficient Ports functioning in India.  Port of Dhamara in Odisha (Orissa) to be inaugurated in August 2010 and will  be the deepest port port (18 meter deep deep)) of India... There are another 5 ports offing iin n Odisha. 

Name 

Cargo Handled (2010) '000



% Vessel Container % Increase Increase

Traffic Traffic

(over  (over   

Increase

 (over

(2009 – 10) 10) 

2008-

(over  (over   

(2009 – 10) 10) 

09) 

tonnes 

2009)

2008-09)

46,295 

-14.61%  3,462 

07.50% 

502 

17.01% 

Visakhapatnam 

57,011  65,501 

22.84%  2.49% 

1,531  2,406 

-0.32%  2.51% 

4  98 

100.00%  13.65% 

Chennai 

61,057 

Tuticorin 

23,787 

6.20%  8.07% 

2,131  1,414 

2.5%  -7.21% 

1,216  440 

6.38%  0.22% 

Cochin   New Mangalore  Port 

17,429 

14.45%  -3.17% 

872  1,186 

15.19%  0.16% 

290  31 

11.11%  6.89% 

Mormugao  

17.19% 

465 

6.89% 

17 

21.42% 

Mumbai 

48,847  54,543 

5.14% 

1,639 

1.67% 

58 

-36.95% 

J.N.P.T. 

60,746 

6.03% 

3,096 

4.13% 

4,062 

2.78% 

Ennore (corporate (corporate)) 

10,703 

-6.93% 

273 

9.2% 

-- 

-- 

Kandla 

79,521  560,968 

10.10% 

2,776 

10.29% 

147 

6.52% 

5.74% 

21,251 

02.82% 

6,865 

4.25% 

Kolkata (Kolkata   Dock System &   Haldia Dock   Complex)  Paradip 

All Indian Ports 

35,528 

79 

 

9. Tuticorin Port Trust  Tuticorin Port  Location  Country 

India 

Location 

Tuticorin, Tamil Nadu 

Details  Owned by 

Tuticorin Port Trust,  Ministry of Shipping,  Government o   India 

Type of harbor  Medium seaport (Artificial)  Size of harbor 

960 acres (388.8 hectares) 

Land area 

2150 acres (870.75 hectares) 

Employees 

1,162 (2009-10)  Industrial coal, copper concentrate, fertilizer, timber logs, iron  ore  Major imports: Coal, cement, finished fertilizers, raw fertilizer   materials, rock phosphate, petroleum products, petroleum coke,   and  edible  oils  Major exports: General cargo, building materials, liquid 

Main trades 

cargoes, sugar, granite, limonite ore  Statistics   Annual cargo 

23.787 million tonnes (2009-10) 

tonnage  Annual  container 

4,67,752 (81,68,603 tonnes) (2010-2011) 

volume  Tuticorin Port is one of the 12 major ports in   India. It was declared to 

 be a major port on 11 July 1974. It is second-largest port in Tamil Nadu and fourth-largest container terminal in India after Kochi International Container  Transshipment Terminal, Jawaharlal Nehru Port (Mumbai) and Chennai Port. Tuticorin Port is an artificial port. This is the third internationa internationall port in Tamil Nadu 

80 

 

 

and its second all-weather port. All Tuticorin Port‘s traffic handling has crossed 10 million tons from April 1 to September 13, 2008, registering a growth rate of 12.08  per cent, surpassing the corresponding previous year handling of 8.96 million tons. It has services to USA, China, Europe, Sri Lanka and Mediterranean countries. 

History: 

Tuticorin has been a centre for maritime trade and pearl fishery for more than a century. The natural harbour with a rich hinterland, activated the development of the Port, initially with wooden piers and iron screw pile pier and connections to the railways. Tuticorin was declared as a minor anchorage port in 1868. Since then there have been various developments over the years.  

81 

 

 

To with

the

cope

increasing

trade

through

Tuticorin,

the

Government of India sanctioned

the

construction of an allweather

port

Tuticorin,  brings

the

at which

second

largest revenue to  India. On July 11, 1974, the newly constructed Tuticorin Port was declared as the 10th major port. On 1 April 1979, the erstwhile Tuticorin minor Port and the newly constructed Tuticorin major port were merged and the Tuticorin Port Trust was constituted under the Major Port Trusts Act of 1963.  Operations:  Tuticorin Port is an artificial deep-sea harbour formed with rubble

mound-type parallel breakwaters projecting projecting into the sea s ea for about 4 km. (The north  breakwater is 4098.66 meters long; the south breakwater is 3873.37 metres long and the distance between the breakwaters is 1275 metres). The port was designed and executed entirely through indigenous efforts. The harbour basin extends to about 400 hectares of protected water area and is served by an approach channel of  2400 metres length and 183 metres width.  Due to its strategic location in the southern peninsula and assured round-theclock operations, the port has been the nerve centre of economic activity in south Tamil Nadu. The port currently handles seven per cent of the total container traffic in India and is an important reason for investment in the southern districts of Tamil 

82 

 

 

 Nadu. The port is badly in need of expansion to handle the increase in traffic. The  port has been upgraded to handle vessels longer than 245 m. The advantages of  deploying bigger vessels are that the existing restriction on booking can be eliminated and the transshipment at Colombo port can be reduced. The Tuticorin  port has the potential to be an international container transshipment hub given its unique geographical location. location. Activity at the port has grown at a rate of 17 per cent  per year over the last five years. A large portion of the operations in the port has  been privatized, including handling at the first container terminal by PSA Sical. A second container terminal has been approved for this port. Tuticorin port is  becoming a gateway for South India to the US, Europe and the Mediterranean following direct sailings to these regions. Of the total exports from the port, 25 per  cent were to Europe, 20 per cent to the US, 20 per cent to East Asia including China, 15 per cent to Colombo, 10 per cent to West Asia and the remainder to the Mediterranean.  A naval base is to be set up under the ambit of Eastern Naval Command to strengthen the surveillance in the Gulf of Mannar and to safeguard any possible aggression in the region. Tuticorin Port Trust officials expressed their willingness 2

establishment ent of  to allot a 24-acre (97,000 m ) plot on the ‗port estate‘ area for the establishm

the Naval Base.  The port is also helping increase the tourism in the region. A new ferry has been commenced between Tuticorin and Colombo.  Internationall service  Internationa  



Tuticorin is the only port in South India to provide a direct weekly container  service to the United States. The transit time to the United States is 22 days.





 



 

There are regular weekly direct services to Europe (transit time 17 days), China (transit time 10 days) and Red Sea Ports (transit time 8 days).



83 

 

CUSTOMS AND PORT PROCEDURES   Customs clearance in the import-export trade is one of the traditional functions of  a freight forwarder. Indeed, in developing countries many freight forwarders are still restricting their activities to customs clearance at the ports.   The legal status of the freight forwarder in his relationship with the customs authorities, on the one hand, and his customers, on the other, varies from country to country. In many countries, the forwarder acting as customs house agent is required to obtain a license from the Government and such a license is issued only when he establishes his professional competence by passing prescribed examinations. He may also be required to furnish security or bond for the proper   performance of his functions, which m may ay be forfeited in the event of aany ny irregularity or misconduct on his part. In some countries, however, no license or  qualifications are required for doing customs clearance work.  As customs agents are authorized by the Government to attend to the customs formalities in respect of goods to be imported or exported, they are required to ensure that the customers, interests are safeguarded. They are expected to process quickly the various documents and formalities so that their customers do not miss shipping opportunities in the export trade and do not have to pay demurrage and other charges on account of delays in the clearance of imports. To their customers, they also have a responsibility to ensure proper valuation of the goods and their appropriate classification, so as to avoid any incorrect levy of  duties that may subsequently lead to prolonged corresponde correspondence nce involving a lot of  time and money. In the performance of their functions, therefore, the customs agents have a dual responsibility to protect the interests of both their customers and the customs authorities. 

84 

 

MULTIMODAL TRANSPORT  Introduction: 

During 2004, total estimated 100 million TEUs Shipments of containerized cargoes has been moved world estimated TEUs Shipments cargoes been worldwide. The world fleet of fully cellular container ships continued to expand substantially in 2004 in terms of both number of ships and their TEU capacity; by the beginning of  2005 there were 3,206 ships with a total capacity of 7,165,352 TEUs, an increase of 5 per cent in the number of ships and 11.3 per cent in TEU capacity over the  previous year, Ship sizes also continued to increase. Containerized cargoes are  packed ounce at the factory door than at every change in transport mode, thereby reducing direct cost as well as the ship time at the port.  Multimodal transport: The containerization of cargo allowed cargoes to be easily and safely transferred from one mode of transport to another. Merchants and their  agents physical involvement in the carriage of goods was reduced to handing them over at the point of departure and ensuring someone would receive them at the destination.  The constituent elements of a multimodal carriage of goods are thus:          

  contract between consignor and multimodal transport operator    Whereby the multimodal transport operator agrees to arrange.   and accept responsibility for 







  the transport of the consignors goods from X place to Y place    by more than one one mode of tran transport sport





 

  With the right to subcontract some or all of the legs of carriage to another  carrier.

 



85 

 

Difference between modes of transport.  No.  Features 

Air 

Road 

Rail 

Ocean 

Pipeline 

1. 

Value 

High 

Medium 

Medium 

High 

High 

&Volume 

Value/low  volume 

Value/medium  Value/High  Value/High  Value/High  Volume.   Value  Volume   Volume  

2. 

Speed 

And  high 

Good 

Low 

Low 

Very High 

High 

Medium 

Low 

Highest 

Delivery  3. 

Cost 

Very High 

Low  4. 

Frequency 

Average 

High 

Low 

Very Low 

Highest 

5.  6. 

Flexibility  Access 

Average  Average 

Average  Very High 

High  High 

Very High  Limited 

Limited  High 

7. 

Commodities 

Emergency 

Consumer  

Coal, 

Ore 

Cement, 

Aluminum,  

Petroleum 

Copper), 

Liquid 

Items, High  Goods,   perishable 

Perishable like  Steel, 

goods, Very  Milk, Fruits, 

Petroleum 

Oil, 

(Steel,  Gases and 

Plants,  Products. 

Unique 

Vegetable, etc.  Liquid 

Equipments 

Medicines 

Steel. 

and 

Products. 

machinery,  Food Grains 

THE APPLICABLE LAW 

The law with regard multimodal transport, it has to be demonstrated what law actually governs this type of carriage. Relating to:  1. The loss or damage of goods carried or which ought to have been carried in a ship 

86 

 

 

2.  The carriage of goods in a ship, or any agreement for or relating to such carriage or relating to such carriage 3.  Any container and any agreement relating to any container. 

 

Different modes of carriage are governed by different laws. A multimodal contract of carriage will thus often be subject to different regimes of liability. For example carriage by road from Vienna to Hamburg and by sea to London will be subject to the Hague Visby Rules for the sea carriage and the CMR  Convention for the road carriage. Liability depends on whether the leg during which the damage occurred can be identified. The provisions of these Rules also form the basis of many combined transport bills of lading in use today.

 



  The Rules divide liability according to whether the place of damage is known or  unknown. If the place of loss is known then the applicable mandatory carriage regime applies. If there is no mandatory carriage regime, or the place of lloss iis unknown, then the system of liability contained in the Rules is used. This system of liability is drawn from the Hague Visby Rules.

 



87 

 



THE WAY FORWARD : 

The ultimate goal of the carriage of goods is the promotion of trade by allowing business the opportunity to get its products to any market on the planet at a reasonable price. Multimodal‘s seeks to achieve that goal by reducing the consignors'/consignees' (merchants') risk in transporting their goods. This is

achieved, firstly by minimizing the chance of the cargo being physically damaged and secondly by reducing the chance that the merchant will be unable to recover in the case where cargo is damaged through the fault of the carrier.  

  The reduction of the risk of cargoes being physically damaged is achieved by  packing the goods in a strong steel container and by standardizing the vessels, vehicles and cranes which handle these containers.

 



  In the event that the cargo is actually damaged, the merchants' risk is reduced in that he can look to a single person, the multimodal transport operator, to make good his loss. In this respect the multimodal transport contract was a giant leap forward for merchants allowing complete control over who accepts responsibility for the safe carriage of cargo.(88) This single contractual carrier  (MTO) responsibility significantly reduces a merchants risk of having to recover from a company with no assets, or from having to recover in an inconvenient jurisdiction.

 



88 

 

MARINE INSURANCE  

  Marine insurance A broad term including ocean and inland marine insurance.   The Nationwide Marine Insurance Definition, published by the National Association of Insurance Commissioners, includes imports, exports, domestic shipments, means of communications, and personal and of communications,  personal commercial commercial property floaters as marine insur insurance. ance.

 

 

  Ocean marine insurance:





Coverage for these types of ocean transportation exposures: ships or  Hulls; goods or cargo; earnings (such as freight, passage money, Commissions, or profit); and liability (known as protection and or profit); This insurance may be purchased by the vessel owner or any party interested in or responsible for  insurable property by reason of  maritime perils.  

Transportation insurance: 

Insurance that covers merchandise or goods in the course of transit by air, rail, truck, barge or ship from a starting location to a final destination.  

Door-to-door coverage: 

Transit insurance that covers a shipment of merchandise from the original point of  manufacture to its final destination.  

  Marine insurance provides coverage against four types of losses corresponding to the four major classes of ocean marine insurance.

 



89 

 



Hull & Machinery Insurance covers ship-owners either on basis of  

voyage policy or a time policy against total loss (actual or constructive), damage to the ship in particular average and general average sacrifice, expenses to prevent loss by way of sue and labor charges, salvage charges and general average contributions and against collision liability (either three fourths or four fourths) and expenses associated with claims.  

 

  The cover is against ordinary risks (perils of the sea and other named perils) or  against the named perils in the war and strike clauses.



BASIC COVERAGE:                

  Hull and Machinery including Liability   Disbursements



  Increase Value



  Managers' Commission   Chartered Freight   Charter Hire









  Insurance Premiums   Return Premium





   

  Protection and Indemnity: P&I coverage is essentially liability insurance that    protect the ship-owner for the loss of income that would have been earned upon completion of the voyage.



  

 

  BASIC COVERAGE :



Personal injuries to third parties, passengers, crew, stevedores, persons on another  ship, personal injuries arising out of carriage of cargo or containers, repatriation and substitution of crew, loss of effects, shipwreck unemployment indemnity indemnity,,  

90 

 

stowaways and refugees and life salvage;  

   Navigational and operating claims such as collisions (either one fourth or four  fourths), damages to fixed and floating objects, pollution, wash damage, towage, liability under contracts for hire of cranes, wreck removal and quarantine;

 



  Cargo claims including collision liability to cargo carried in an entered ship and general average and salvage;



 

  Miscellaneous liabilities which include fines and confiscation, inquiring expenses, expenses arising from interference by local authorities and costs of  sue and labor.





   Marine Cargo Insurance:



Aims to indemnify the Assured from losses or physical damages occurred

to the goods during the insured voyage as mentioned in the certificate of insurance and provided said losses or damages are covered by the insurance conditions as agreed between the Assured and Underwriters and consigned in the insurance contract.  

BASIC COVERAGE : 

(1) Total or Constructive Total Loss of the whole consignment hereby insured  

caused in the course of transit by natural calamities--heavy weather, lightning, tsunami, earthquake and flood. In case a constructive total loss is claimed for, the Insured shall abandon to the company the damaged goods and all his rights and title pertaining thereto. The goods on each lighter to or from the seagoing se agoing vessel be deemed a separate risk.   be deemed separate risk  risk   "Constructive Total Loss" refers to the loss where an actual total loss appears to be 

91 

 

 

unavoidable or the cost to be incurred in recovering or reconditioning the goods together with the forwarding cost to the destination named in the policy would exceed their value on arrival. 

 

(2) Total or Partial Loss caused by accidents-the carrying conveyance being grounded, stranded, and sunk or in collision with floating ice or other objects as fire or explosion. (3)  Partial loss of the insured goods attributable to heavy weather, lightning and/or  tsunami, where the conveyance has been grounded,, stranded,, sunk or burnt , irrespective of whether the event or events took place before or after such accidents. (4)  Partial or total loss consequent on falling of entire package or packages into sea during loading, transshipment or discharge. (5)  Reasonable cost incurred by the Insured in salvaging the goods or averting or  minimizing a loss recoverable under the policy, provided that such cost shall not exceed the sum Insured of the consignment so saved. (6)  Losses attributable to discharge of the insured goods at a port of distress following a sea peril as well as special charges arising from loading, warehousing and forwarding of the goods at an intermediate and port of call or refuge. (7)  Sacrifice in and Contribution to General Average and Salvage charges. c harges. (8)Such proportion proportion of losses sustained by the ship ship-owners -owners as is to be proportion of  losses sustained ship reimbursed by the cargo owner under the Contract of  Affreightment Affreightm ent "Both to Blame Collision" clause.

Freight insurance: When a vessel is lost this coverage indemnifies the shipowner for the loss of income that would have been earned at the end of the voyage. The following proper information required to obtain insurance quotation: 

92 

 

          

 

  Cargo description and if hazardous   Quantity and packaging





  Loading port and destination



 

Ocean vessel (including date of build, flag and size).   Value of the goods being shipped.





  Expected date of shipment.



Cargo Claims Documents:                

 

  Insurance Certificate or Policy   Bill of Lading



  Shipper's Invoice  







Invoice   Packing List



  Survey Report



  Ship's Short-landing/ Short-landing/Discrepancy Discrepancy Certificate(s).



  Copies of correspondence exchanged with the Carrier.



GENERAL AVERAGE:  Average: A term in marine insurance referring to a loss. A particular average is a    partial loss.  Particular Average: A fortuitous partial loss to the subject matter insured  

 proximately caused by an insured peril but which is not a general average loss. Particular average only relates to damage and/or expenses which are exclusively  borne by the owners of a vessel which has sustained damage as a result of e.g. heavy weather or by the owners of the cargo, which has been damaged in transit.  

General Average Abbreviati Abbreviation on: G/A Intentional act or sacrifice which is carried 

93 

 

 

out to safeguard vessel and cargo. When a vessel is in danger, the master has the right to sacrifice property and/or to incur reasonable expenditure. Measures taken for the sole benefit of any particular interest are not considered general average.  A legal principle which traces its origins in ancient maritime law, general average is still part of the admiralty law of most countries. General average requires three elements which are clearly stated by Mr. Justice Grier in Barnard v. Adams:  

  "1st. A common danger: a danger in which vessel, cargo and crew all  participate; a danger imminent and apparently apparently 'inevitable,' except by voluntarily incurring the loss of a portion of the whole to save the remainder.

 



  "2nd. there must be a voluntary jettison, jactus, or casting away, of some must  be portion of the joint concern for the purpose of avoiding this imminent peril,  periculi imminentis evitandi causa, or, in other words, a transfer of the peril from the whole to a particular portion of the whole.

   

 



successful"..   ―3rd. This attempt to avoid the imminent common peril must be successful"

  General average bond :





A bond prepared by the general average adjuster binding the owner of the goods to   pay a proportion proportion of the general aaverage. verage. 

94 

 

CUSTOMER'S NEED 

95 

 

Warehousing and Warehouse Management  Warehousing is the storage of goods for profit. The physical location,  

the warehouse, is a storage facility that receives goods and products for the eventual distribution to consumers or other businesses. A warehouse is also called a distribution center. Warehouse management is the process of coordinating the incoming goods, the subsequent storage and tracking of the goods, and finally, the distribution of the goods to their proper destinations. 

History:  Warehousing's roots go back to the creation of granaries to store food, which was historically available for purchase during times of famine. As European explorers began to create shipping-trade routes with other nations, warehouses grew in importance for the storage of products and commodities from afar. Ports were the major location for warehouses.   World War II impacted warehousing in several ways, including the need to increase the size of warehouses and the need for more mechanized methods of  storing and retrieving the products and materials. As mass production grew throughout manufacturing, the needs of efficient and effective warehousing capabilities grew with it.  Modern Issues:  The warehouse industry found itself recovering from a recession at the  

start of the twenty-first century, partially brought on by the hype of the dot-com  bubble and the excess production created after it burst. It also coped with new methods of distribution, such as just-in-time (JIT) manufacturing — where where warehousing is unnecessary because products are shipped directly to customers.  Warehousing companies are now striving to become more than simply   storage facilities. They are transforming themselves into "third-party logistics 

96 

 

 

 providers" or "3PLs" that provide a wide array of services and functions. In addition to packing and staging pallets, contemporary warehousing facilities offer  light manufacturing, call centers, labeling, and other non-storage options.  Warehouse Functions:  Warehousing is a key component of the overall business supply chain.  

The supply chain consists of the facilities and distribution options for the  procurement of materials materials from manufacturer to custom customer er and all points in between. It includes the production of materials into components and finished products and then the distribution to customers.  Warehouse function includes:  

  The storage of goods to permit managing product flow or to accommodate longer production runs.



 

  Serving as a mixing point where products from different suppliers are mixed and then distributed to fulfill customer orders;

     

 

  A sales branch and customer service location;   A source of supplies for production;







  A staging area for final packaging or finishing.



Warehouse Operations:  Warehouses are operated in several ways. Public warehousing  

involves the client paying a standard fee for the storage of merchandise. Private warehousing is storage and operations controlled completely by a single manufacturer. Leased warehousing is an option for more stable inventory. Contract warehousing clients pay fees regardless of whether they are using the space or not; the space is always there for them to use, however. According to Overview of  Warehousing in North America, contract warehousing accounts for more than 60  percent of the U.S. U.S. commercial m market. arket. 

97 

 

 

A warehouse stands empty without some form of product. Delivery of goods  

and materials takes place either by truck, rail, or boat on a dock or loading area. The goods are received, processed, and then sent into the warehouse for storage.  The storage of goods has been the primary function for warehouses. Once the goods have been received from the manufacturer and/or shipper, they are compactly stored to maximize space within the facility. Products are placed on  pallets, which allow for more co consistent nsistent stacking and m moving oving within the fa facility. cility.  Contract and public warehouses receive goods and products from a multitude of manufacturers and shippers. A crucial aspect of warehouse management is inventory control. Inventory control is the ability to locate and track a given product within the warehouse to facilitate quick selection and loading for order fulfillment. It is also the process of maintaining sufficient amounts of   product to meet customer demands, while at the same time balancing the expense of keeping product in storage. Perpetual, annual, physical, and cycle counting are all methods of keeping track of inventory.  Order picking is the process of selecting products to fulfill an order. There are several types of picking methods:   

  Discrete or pick-by-order: Specific products are selected on a per order basis.



 

  Batch or pick-by-article: Multiples of a product are selected to fulfill multiple orders. The products are sorted in the staging area and combined with other   products to fulfill fulfill the orders.



 

  Wave: Involves gathering products based on specific routing or shipping criteria.

 

 



  Reverse-order: Used when part of an order is held to be combined with another  order. 

Reverse-order picking is related to cross-docking, another function of warehouses. Cross-docking is a direct flow of goods from receiving to shipping, with little if  



98 

 

 

any storage. Cross-docking is contingent on the timely delivery of products, accurate management on the loading dock, and effective ordering by the customer.  Warehousing is also involved in the packaging and labeling of a  product as it moves through the facility. Proper packaging is necessary for  effective storage and to guard against damage. Labeling, or tagging, is an important element of the packaging. Proper labeling improves the ability to identify, track, store, and select the correct product for order fulfillment.  Once the product has been selected, or picked, it is brought to a staging area for final processing and shipment. The loading dock is a hub of  activity as products are arriving for storage and being staged for distribution. Effective management of this area is crucial for warehouse success. It is here that cross-docking takes place.  The final stage of warehousing is the transportation facet of delivering and shipping goods. 

Warehouse Management:  In the past warehouse management was very paper-intensive in its coordination of a multitude of activities. This has changed with the introduction of  warehouse management system software.  Warehouse management systems (WMS) assist managers in tracking  products throughout throughout the entire stor storage age and distributio distribution n process. These systems systems span from simple computer automation systems to high-end, feature-rich management  programs that improve order picking, facilitate better dock logistics, and monitor  inventory management. 

Trends:  According to a Warehousing Management survey, competition in warehousing has become extremely tight because businesses seek warehouse firms 

99 

 

 

with extremely thin margins. Companies are succeeding by remaining flexible and investing in technology. The main issues or trends in warehousing include radio frequency identification (RFID), transportation management systems, pick-to-light technology, and voice-activated receiving and packaging.  Voice-activated receiving and packaging allows for warehouse personnel to speak requests into the WMS, thus speeding the entire process. Transportation management systems provide an advanced level of detail on goods prior to their  arrival and also provide a more specific time of delivery. RFID has dramatically improved the ability to effectively manage inventory and track the location of  specific goods within the warehouse. Pick-to-light technology improves order   picking along warehouse conveyor belts by monitoring and identifying products for specific shipments.  A significant trend is the continuing growth of 3PL providers as companies try to cut costs and management issues by outsourcing their warehouse and distribution functions. An outcome of increased 3PL activity is a wave of mergers that are consolidating the industry. Customer demands for one-stop shopping and new technologies are a driving force behind this consolidation.  Warehousing is a mature industry seeking methods to maximize profits and striving to add services to compete for customers. The warehousing industry is a key component of the supply chain and will likely remain so as long as there are manufacturers and consumers. 

100 

 

PANAMA CANAL  Panama Canal is a 77-kilometre (48 mi) ship canal in   Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, annual traffic has risen from about 1,000 ships in the canal's early days to 14,702 vessels in 2008, measuring a total 309.6 million Panama Canal/Universal Measurement System (PC/UMS) tons. In total over 815,000 vessels have passed through the canal. It has  been named one of the seven modern wonders of the world by the American Society of Civil Engineers.  One of the largest and most difficult engineering projects ever undertaken; the canal had an enormous impact on shipping between the two oceans, replacing the long and treacherous route via either the Strait of Magellan or Cape Horn at the southernmost tip of South America. A ship sailing from New York to San Francisco via the canal travels 9,500 km (5,900 mi), well under half the 22,500 km (14,000 mi) route around Cape Horn.  The concept of a canal in Panama dates to the early 16th century. The first attempt to construct a canal began in 1880 under French leadership, but was abandoned after 21,900 workers died, largely from disease (particularly malaria and yellow fever) and landslides. The United States launched a second effort, incurring a further 5,600 deaths but succeeding in opening the canal in 1914.   The maximum size of vessel that can use the canal is known as Panamax. A Panamax cargo ship typically has a DWT of 65,000-80,000 tonnes, but its actual cargo is restricted to about 52,500 tonnes because of draft restrictions in the canal.[5] The longest ship ever to transit was the San Juan Prospector, now Marcona Prospector, an ore-bulk-oil carrier that is 973 ft (296.57 m) long, with a  beam of 106 ft (32.31 (32.31 m) 

101 

 

Layout:  USS Missouri passes through the canal in 1945 

The canal consists of artificial lakes, several improved and artificial channels, and three sets of locks. An additional artificial lake, Alajuela Lake (known during the American era as Madden Lake), acts as a reservoir for the canal. The layout of the canal as seen by a ship passing from the Pacific end to the Atlantic is as follows: 



  From the buoyed entrance channel in the Gulf of Panama (Pacific side), ships travel 13.2 km (8.2 mi) up the channel to the Miraflores locks, passing under the Bridge of the Americas.

 



  The two-stage Miraflores lock system, including the approach wall, is 1.7 km (1.1 mi) long, with a total lift of 16.5 meters (54 ft) at mid-tide.



 

  The artificial Miraflores Lake is the next stage, 1.7 km (1.1 mi) long, and 16.5 meters (54 ft) above sea level.



 

  The single-stage Pedro Miguel lock, which is 1.4 km (0.87 mi) long, is the last part of the ascent with a lift of 9.5 meters (31 ft) up to the main level of  the canal. 

  102 

 

  

  The Gaillard (Culebra) Cut slices 12.6 km (7.8 mi) through the continental divide at an altitude of 26 meters (85 ft), and passes under the Centennial Bridge.



 

  The Chagres River (Río Chagres), a natural waterway enhanced by the damming of Lake Gatún, runs west about 8.5 km (5.3 mi), merging into Lake Gatun.

 



  Gatun Lake, an artificial lake formed by the building of the Gatun Dam, carries vessels 24.2 km (15.0 mi) across the isthmus.



 

  The Gatún locks, a three-stage flight of locks 1.9 km (1.2 mi) long, drop ships back down to sea level.



 

 

A 3.2 km (2.0 mi) channel forms the approach to the locks from the Atlantic side 

 

  Limón Bay (Bahía Limón), a huge natural harbour, provides an anchorage for some ships awaiting passage, and runs 8.7 km (5.4 mi) to the outer  out er 



 

 breakwater.  Thus, the total length of the canal is 77.1 km (47.9 mi)..  

Lock size:  The size of the locks determines the maximum size of ships allowed passage. Because of the importance of the canal to international trade, many ships are built to the maximum size allowed. These are known as Panamax vessels.  Initially the locks at Gatun had been designed to be 28.5 meters (94 ft) wide. In 

Miter lock gate at Gatún 

103 

 

 

1908 the United States Navy requested that width be increased to at least 36 meters (118 ft) which would allow the passage of U.S. naval ships. Eventually a compromise was made and the locks were built 33.53 meters (110.0 ft) wide. Each lock is 320 meters (1,050 ft) long with the walls ranging in thickness from 15 meters (49 ft) at the base to 3 meters (9.8 ft) at the top. The central wall between the parallel locks at Gatún is 18 meters (59 ft) thick and stands in excess of 24 meters (79 ft) high. The steel lock gates measure an average of 2 meters (6.6 ft) thick, 19.5 meters (64 ft) wide and 20 meters (66 ft) high. 

Tolls:  Tolls for the canal are decided by the Panama Canal Authority and are based on vessel type, size, and the type of cargo carried.  For container ships, the toll is assessed per the ship's capacity expressed in twenty-foot equivalent units or TEUs. One TEU is the size of a container  measuring 20 feet (6.1 m) by 8 feet (2.44 m) by 8.5 feet (2.6 m). Effective May 1, 2009, this toll is US$72.00 per TEU. A Panamax container ship may carry up to 4,400 TEU. The toll is calculated differently for passenger ships and for container  ships carrying no cargo (―in ballast‖). As of May 1, 2009, the ballast rate is  

US$57.60 per TEU.  Passenger vessels in excess of 30,000 tons (PC/UMS), known popularly as cruise ships, pay a rate based on the number of berths, that is, the number of   passengers that can be accommodated in permanent beds. The per-berth charge is currently $92 for unoccupied berths and $115 for occupied berths. Started in 2007, this charge has greatly increased tolls for such vessels. Passenger vessels of less than 30,000 tons or with less than 33 tons per passenger are charged on the same "per-ton" schedule as freighters. 

104 

 

 

Ship Passing through Panama Canal   Small vessels up to 583 PC/UMS net tons when carrying passengers or cargo, or  up to 735 PC/UMS net tons when in ballast, or up to 1,048 fully loaded displacement tons, are assessed minimum tolls based upon their length overall, according to the following :   Length of vessel 

Toll 

Up to 15.240 meters (50 ft) 

US$1,300 

More than 15.240 meters (50 ft) up to 24.384 meters (80 ft 

US$1,400 

More than 24.384 meters (80 ft) up to 30.480 meters (100 ft) 

US$1,500 

More than 30.480 meters (100 ft)  

US$2,400 

105 

 

 

The most expensive regular toll for canal passage to date was charged on May 16, 2008 to the Disney Magic, which paid US$331,200. The least expensive toll was 36 cents to American adventurer Richard Halliburton, who swam the canal in 1928. The average toll is around US$54,000. The highest fee for priority passage charged through the Transit Slot Auction System was US$220,300, paid on August 24, 2006 by the Panamax tanker Erikoussa, bypassing a 90-ship queue waiting for  the end of maintenance works on the Gatun locks, thus avoiding a seven-day seven -day delay. The normal fee would have been just US$13,430. 

106 

 

CONCLUSION  Logistical management in today‘s globalised economy has

 become more competitive because WTO (World Trade Organization) & GATT (General Agreement On Trade and Tariff) regulation was diluted since 1994. This has effected logistical movement by sea globally. Which has affected public sector  and the complications have also increased policies related to taxation. Moreover,  India‘s logistics and transport costs also have been high. According to the Chinese

Federation of Logistics and Purchasing, the logistics of the operation of the 2004  National accounts statistics, in 2004, the national logistics costs for the 29 114  billion, the total cost of logistics for 21.3% of GDP, compared to the average level of developed countries 1 times higher, of which 55.8 billion for 16 transport costs, logistics costs accounted for 56.9%. At present, many commercial enterprises and more than U.S. commercial enterprises to spend up to 40% to 50% of the cost for  logistics and transport. In 2007, Italian investigative bodies "Asian Observer" organizations, a survey shows that China is the world's logistics and transport one of the highest cost, every year on the use of funds in the logistics and transport up to 2 000 billion, twice the United States. 2. Logistics and transport time is long, low liquidity, according to statistics, in recent years with the logistics of  manufacturing enterprises accounted for about 90% of the time. The production accounts for only about 10%. Longer result in transport turnover rate of low liquidity, working capital turnover rate of distribution of state-owned industrial enterprises from 1.2 to 2.3 range of state-owned commercial enterprises, the United States an average of 15 to 20, some large multinational companies can to achieve 30.3. Logistics and transport business operations level is not high at  present the majority of logistics and transport companies in India are from the traditional warehousing and transportation enterprises transition from the  

107 

 

 

management level, the technical strength and range of services not yet on the improvement of the quality.   Through his project, we can see some of Logistics Industry and the developed countries, the overall high cost and low efficiency. To solve this  problem, we must first affect the efficiency of logistics and transport analysis of  the factors. Second, the impact factor of the efficiency of logistics and transport 1. Infrastructure in recent years, government has invested heavily in infrastructure, especially in central and western areas of infrastructure not only requires a lot of  money and takes a long time, so our infrastructure is still lagging behind needs of  economic development, especially in the transport logistics by sea industry. At  present, the most common mode of transport road, again is rail, sea and air  transport. Road transport costs are generally higher than that of railway transport, sea transport, but road transport is still the priority for many transportation companies. This is because road transport can control the shipping time and flexibility, while maximizing the delivery of goods, protection of the state. Currently, sea transportation is often used in import and export trade as a mode of  transport. But the sea is not suitable for time-sensitive goods and finished goods transport, it is suitable for bulk cargo, the goods to be transported long distances,  but it still needs more complete infrastructure, or in this way is difficult to effectively play a role. Hence for the logistical movement of goods by sea ways we need huge investments and very large capital. 

108 

 

Case Study  Uniserve is recognized  as one of Europe‘s largest Sea Freight importers. Having   single-sourced their Sea Freight operations for over 20 years, customer ‗A‘ were looking to move toward dual-sourcing and increasing their profile with shipping lines directly. The business was tendered out and Uniserve were awarded a 5000 teu (Twenty foot equivalent unit- a measure used for capacity in container  transportation) contact to ship household furniture from China to the UK. 

Problem:  A significant change in market conditions and an error in customer ‗A‘s order   processing had led to mis-forecast volumes for household furniture in the UK 

market. The commitment to 5000 teu‘s had been guaranteed, and the containers were ready to leave the port of origin in China. Also, the storage of such bulky items in customer ‗A‘s own DC would have put excessive strain on their 

distribution channels. 

Solution:  

  Our Uniserve team travelled to China and arranged with our agent partners an extremely cost-effective solution in a Trade Free Zone.



 

  The storage facility was at 10% of the cost of what may have been charged for  goods entering the UK. As part of the storage in a Free Trade Zone, neither was there a duty tax reclaim.

 

  When containers were ready to ship, they were delivered into the UK Port of  destination and

 

 





  Uniserve arranged direct delivery to customer ‗A‘s customers.



109 

 

Results: 

• A massive 90% saving on storage of goods held in Chinese Trade Free Zone. • The potential to reclaim a further 12% tax rebate.

 

• Furniture has become a more saleable part of the product-offering for customer   ‗A‘, due to simplified simplified distribution distribution in the U UK. K.  Customer ‗A‘ now has a major profile with shipping lines through a tri-partite 

agreement. 

110 

 

BIBLIOGRAPHY            

  www.google.com



  www.managementparadise.com   www.wikipedia.com





  http://accuracybook.com/glossary.htm



  http://www.inb http://www.inboundlogistics.com oundlogistics.com/3pl/awards.shtm /3pl/awards.shtmll



  Shipping course- by Indian logistics group of shipping and transport.





  http://www. http://www.redprairi redprairie.com/Industr e.com/Industry%20Solutions/Thi y%20Solutions/Third%20Part rd%20Party%20Logistics. y%20Logistics.



aspx 





  http://logistics.ab http://logistics.about.com/od/thi out.com/od/thirdparty/a/uc0 rdparty/a/uc041805.htm 41805.htm



 

  Economic and Social Commission for Asia and the Pacific (1990) ―Manual on Freight Forwarding‖

  



  United Nations Development Programme and Economic Commission for 



Africa (1991) ―Strategies for Human Resource and Institutional Development in  

Transport and Communications in Sub-Saharan Africa‖



  

  United Nations Conference for Trade and Development (UNCTAD) (1996), ―Multimodal Transport Handbook for Officials and Practitioners‖





Bandari College (2010), ―Diploma Course in Freight Forwarding‖   







Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close