Presentation Transcript

International logistics : International logistics Logistics costs comprise between 10% and 30% of the total landed costs of an international order. Thus, international logistics is a competitive tool. Effective international logistics and supply-chain management can produce higher earnings and greater corporate efficiency. Definition : Definition International Logistics is design and management of a system that controls the flow of materials into, through, and out of the international corporation. By taking a systems approach, the firm explicitly recognizes the linkages among the traditionally separate logistics components within and outside the corporation Basic goal of logistics : Basic goal of logistics A Materials Management: timely movement of raw materials Parts, and supplies into and through the firm; and B - Physical Distribution: movements of the firms finished products to its customers. Differences between Domestic and International Logistics : Differences between Domestic and International Logistics Distance Currency variation BorderCrossing Process (additional intermediaries) Transportation modes Packaging and Labeling requirements Infrastructure International Transportation Issues : International Transportation Issues Some countries may have excellent inbound and outbound transportation systems but weak internal transportation links. New routs of commerce have opened up Extreme variations also exist in the frequency of transportation services. Availability of Modes : Availability of Modes Ocean Shipping: liner service (regularly scheduled passage); tramp service (available for irregular routes and scheduled on demand) Container ships, Roll-on-Roll-off (RORO) Air Shipping Choice of Modes : Choice of Modes Predictability: tracking Transit Time International Ocean Transportation : International Ocean Transportation Types of service Liner ships Tramp ships Liner ships : Liner ships Liner ships travel on a regular voyage ,following a pre established schedule with determined ports of call Tramp ships : Tramp ships They do not operate on regular schedule but travel wherever the company using the vessel wants the cargo delivered.Usually it carry one type of cargo at a time, for one exporter or importer. Types of vessel : Types of vessel Container Ships Roll-on/Roll-off ships Break bulk ships Combination ships Lash ships Crude carriers Dry bulk carriers Gas Carriers Conference shipping : Conference shipping A group of shipping companies that operate vessels competing in the same trade lanes, and they have legally agreed to not compete on price and charge same amount for same type of cargo and the same voyage. Non conference shipping : Non conference shipping Non-conference shipping is provided by the independent carrier or operator of vessel who is not a member of a freight conference, sometimes called outside shipping

Independent carriers, which carry about 25% of the ocean freight, operate on selected trade routes in competition with conference carriers. Non-conference shipping often does not have regular sailing schedules and freight rates between ports. Consequently, it is perceived as less dependable than conference shipping NVOCC : NVOCC Non vessel operating common carriers- They do not own and operate ships but regulated by Federal Maritime Commission They purchase space on a ship on a given voyage and sell this space to companies that need to ship cargo. Containers : Containers General purpose container Reefer container Tank container Dry bulk container International Air transportation : International Air transportation Types of air crafts 1.Passenger air planes 2.Combis 3.Airfreighters 4 Charters Multi modal transportation : Multi modal transportation Multimodal transport means at least two different modes of transportation. In export shipping, it refers to delivery using a combination of usually ocean and land (rail or road) carriers, and using only one shipping document known as bill of lading issued usually by the ocean shipping company or its agent. Customhouse broker /Agents : Customhouse broker /Agents In general, the role of brokers is the same worldwide. clearing of goods through customs, booking of space for ocean, air and land freight, canvassing and providing the freight cost, preparation of export documents. . The broker also renders the forwarding services as a Freight forwarders Packaging for Export : Packaging for Export Protecting the goods in transit from breakage Protecting the goods from water damage Protecting the goods from pilferage Ocean cargo : Ocean cargo FCL LCL Break bulk cargo Marking : Marking Unit packing of the cargo required marking Product name Packing size Country of origin DOP & DOE Weight requirement of items to be marked may vary country o country Transportation documents : Transportation documents Bill of lading Air way bill Packing list Certificates from shipping company B/L : B/L A Bill of of lading is a fundamental shipping document used in ocean transportation. 1. It is a contract of carriage It is a receipt for the goods It is a certificate for title B/L : B/L Air way bill : Air way bill An air way bill is a document that fulfills the same function as an ocean bill of lading, But it is non negotiable Packing list : Packing list A packing list always accompanies the shipment. It is a document provided by the exporter that spell out packing in a cargo/shipment in detail. Certificates from Shipping company :

Certificates from Shipping company Certificate to prove the age of the ship Declaration regarding enrooting of vessel to reach the destination. Other relevant certificate as required by the importer