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Transcript of TANYERİ USLU
International air transportation is available in virtually every market of the world. Wherever passenger service is available, you can also find air cargo service.
Two primary carrier types dominate this mode.
* Air cargo carriers
* Combination carriers
Thank You For Listening
Global Transportation Executions
Y. Efe KALKAVAN
Transportation execution is a multi-party, multi-tier effort that occurs among many supply chain partners.
-The freight starts to move
-Risk of disruptions, delays, damage, and other problems
-Strong working relationships
Global freight primarily moves via one of two service options :
-Direct service or
-Moving relatively short distances between directly and destination points.
-Seller’s location in one country to the customer’s location.
-No stop-offs or transfers
-Moving long distances between continents or facilities.
-Not directly accessible.
-Interim stops and transfers of freight
-Use of two or more modes of transportation
Benefits of Intermodal Transportation
-Intermodal transportation facilitates global trade.
a)Ocean transportation allows large-volume shipments ,low cost, big capacity
b)Air transportation ,quikly delivery
c)Truck transportation makes product competitive across global markets by keeping the landed cost in check.
-Greater accessibility is created by linking the individual modes.
The road infrastructure allows trucks to reach locations that are inaccessible to other modes
-Overall cost efficiency can be achieved without sacrificing service quality or accessibility.
Intermodal transportation allows supply chains to utilize the inherent capabilities of multiple modes to control cost and fulfill customer requirements.
-Flexibility is another valuable trait of intermodal transportation.
-Five transportation modes
-There are also Intermodal Freight Types :
* Containerized freight and
* Transload freight
-Storage equipment like a container or pallet.
-There are five common standard lengths of containers : 20 ft (6.1 m), 40 ft (12.2 m), 45 ft (13.7 m), 48 ft (14.6 m), and 53 ft (16.2 m).
-Transfer between transportation equipment multiple times.
-Raw materials that must be scooped, pumped, lifted, or conveyed from one container to another one.
* Land bridge
-Movement from one seaport to another using a combination of water and rail transport.
-All-water alternative focuses on the combination of water and rail service with a port as the origin or destination point for the shipment.
-Similar to a mini-bridge.
-Main difference being the origin or destination point.
-Inland port rather than an ocean port.
For release of the freight to the transportation company, key precautions must be taken like :
-Protective packaging and proper packing,
a)Four potential intransit problems that are breakage, moisture, pilferage, and excess weight.
b)Protect products as they are packed in shipping cartons
-Insuring the goods,
a)Loss and damage risks of domestic freight.
b)Due to the extended origin to destination distance, number of transfers between carriers, and varying climatic conditions.
c)Therefore,importers and exporters insure their goods
-Completing all necessary documentation,
a)Control of cargo from origin point in the country of export to its final destination
b)Missing or incorrect paperwork can cause delays and additional costs
c)Four types of documents: invoices, export documents, import documents, and transportation documents.
Air cargo is a $50-billion business that transports 35 percent of the value of goods traded
internationally. While air cargo transportation remains a small and specialized
mode in terms of tonnage, it is a critical part of the airline business and the supply
While there are many sizes of aircraft used for moving international cargo, the primary difference between equipment type focuses on the internal configuration of the plane. Some equipment is set up to carry strictly freight while others carry a combination of passengers and cargo.
* Roller deck
* Passenger airplanes
* Combi airplane
* General cargo rate
* Class rate
* Commodity rate
* Container rates
* Time sensetive delivery
* Right size packaging
* High cost of delivery
GLOBAL TRANSPORTATION PROVIDERS
Ocean transportation service providers can be segmented into three different categories—liner services, charter services, and private services.
Private service is similar to operating a private truck fleet. Private ships are owned or leased on a long-term basis by the company moving the goods. The economics of private shipping are similar to those of private motor trucks.
The global transportation market is served by carriers in all modes of transportation,
including pipelines in North America and Eastern Europe. Intercontinental freight
moves primarily via ocean and air freight. It is estimated that 98 percent of intercontinental
containerized trade volume and 60 percent of trade value is moved via ocean
carriers. The balance moves via air freight carriers.
Ocean shipping is an essential resource in global supply chains. The vast majority of containerized finished goods, as well as bulk materials moving across oceans, travel via this mode. Ocean shipping is a very diverse industry with a variety of service options, equipment types, service providers, pricing alternatives, and key issues that must be addressed. No matter what the commodity, freight volume, and geographic requirements may be, there is an ocean carrier with the capability and capacity to move the cargo.
Liner service is provided by ships that travel on regularly scheduled voyages, following fixed routes with predetermined ports of call. Typically, a liner ship will serve a particular trade area, such as the trans-Pacific lanes between Asia and North America, trans-Atlantic lanes between Europe and North America, or Asia-Europe lanes. Some liner ships travel the globe on “round the world” schedules, eastbound or westbound, passing through the Panama Canal and the Suez Canal. There are different types and sizes of liner ships, many of which are assigned to specific routes based on their size, draft, and cargo handling capabilities.
Charter service is provided by ships that are hired for a specific voyage or amount of time. It is similar to hiring a limousine service or taxi to give you tailored services (for instance, direct point-to-point service). The ship owner essentially leases the vessel to a charterer (the customer) who uses the ship to move its own cargo.
These charter or “tramp” ships operate in geographic regions defined by the individual customer according to the type of charter agreed to. Charter types include:
* Voyage Charter
* Time Charter
* Bareboat Charter
* Demise Charter
According to the CIA Fact book, there were 36,241 registered commercial ships worldwide in 2008. Most ships fly a flag of convenience, with the owners registering their ships in countries that offer advantageous fees and regulations rather than in their home country.
Individual ships are designed differently and can be somewhat unique. This makes it difficult to classify ships according to specific types. There are five general groups of ship types:
* Panamax ships
* Break-bulk ships
* Roll-on/Roll-of ships
* Combination ships
Ocean shipping rates are impacted by carrier cost structure, commodity, freight volume, origin and destination points, and ancillary services required. The type of service provided—liner or charter—has a major influence on rate structures. Our discussion of rates will be segmented by type of service. A majority of the total costs of operating a ship is also fixed.
Because cargo loading, unloading, and fuel are the only primary variable costs, the ship’s operation cost is roughly the same regardless of the commodity or volume hauled. The problem of determining a cost per pound entails a difficult fixed-cost allocation process, which can be arbitrary at best. Ship operators will often determine unit costs in terms of cost per cubic foot of ship space used so as to better evaluate and price for the range of commodities handled.
Historically, the majority of liner rates were determined collectively by a group of carriers serving specific trade routes and ports. These shipping conferences are essentially legal cartels in which the carriers agree not to compete on price by publishing standardized rate tariffs. The conferences were allowed to exist with antitrust immunity by governments because of the high fixed-cost structure of the industry. Conferences exist for trans-Pacific, trans-Atlantic, and Asia-Europe trade routes, as well as all other major trade lanes of the world. Contract rates and independent rates were also available but with limited availability.
Charter rates are individually negotiated based on the type of charter (voyage or time) and services required. The market for ship chartering is a fluid supply-and-demand situation. At any given time, the charter rate situation can be one of feast or famine for ship-owners. This market can fluctuate over both the short and long term. In the short run, the demand for a
ship and charter rates at a single port area will depend on shipper movement needs and available ship supply within a time span as short as a month. Over longer periods, a market can be considered glutted or tight, depending on the number of ships or types of ships that are available in the world during the span of a year.
As transportation is a derived demand industry, global economic booms and busts directly impact the industry. When global trade is growing, as was the case up until 2007, the major issues revolve around capacity shortages, port congestion, and rate increases.
Moving goods across adjacent land borders is the primary domain of trucks, rail, and pipeline service. Trucking is clearly the major player for intracontinental freight flows in North America and Europe.
For example, 72 percent of European freight is handled by trucks on a ton-kilometer basis and the vast majority of U.S.-Canada freight movement is by truck.
The complexity of international transportation makes it difficult for any importer or exporter to plan and execute global freight flows. İn addition to transportation companies, customers can leverage the expertise of third party logistics companies.
These service providers facilitate the movement of goods via ocean and air by developing exceptional capabilities in one or more steps in the global freight flow process.
International Freight Forwarders
The primary role of an international freight forwarder is to help importers and exporters and exporters transport their goods. Many İFFs specialize in particular service areas, modes of transport, or markets.
IFFs are often seen as the travel agent of international freight transportation. These service providers identify and book the best routes, modes of transport,and specific carriers for customers, based on their specific requiremens.
IFFs can help an organization reduce its international air and ocean transportation cost. Because they arrange for the transport of many shipments, IFFs can consolidate freight going to a single destination.
Non Vessel-owning Common Carriers
When an organization wishes to small shipments in less than container load quantities, an effective service provider is a non vessel-owning common carrier.
Unlike IFFs who usually act as the organization’s agent NVOCCs are common carriers that provide service via containers rather than the entire ship.
Given the challenges of properly packing, marking, and loading shipments, many companies seek the assistance of export packing companies.
These service providers help customers who lack the equipment or expertise to protectin-transit products. Not only do they ensure that products arrive safetly, export packers help save money by using economical packing materials, improving space utilization inside cartons and containers.
Despite the high volume of intracontinental truck traffic, the industry is hampered by a patchwork of domestic rules and regulations that impede international freight flows. Each country has its own regulations regarding equipment length, width, and carrying capacity.
İnternational rail service benefits from a standardized infrastructure and equipment. Still, North American and European rail traffic accounts for less than 20 percent of the total regional freight volume. Rail activity focuses on the movement of bulk raw metarials and intermodal containers.
Fuel price and tax issues, road congestion , and green house emissions have created a push for more rail freight in Europe.
PORT OPERATİONS AND CUSTOMS CLEARANCE
İntercontinental trade moves primarily through airports and seaports, while intracontinental trade moves directly from origin to destination through international gateways or indirectly through intermodal transfer terminals and inland ports.
Port facilities can be privately owned, though the vast majority of major international seaports and airports are government owned. The facilities are managed by a port authority, a govermental or quasigovermental public agency charged with creating and supporting economic development in the port area.
A seaport is an area of land and water with related equipment to permit the reception of ships, their loading and unloading ,and the receipt, storage and delivery of their goods. There are thousands of seaports around the World, though the vast majority of international trade flows through a small group of major ports.
Before an exporter or importer determines which ports to use, they must consider infrastructure issues. These basic facilities, equipment and services greately impact the capabilities and capacity of a seaport.
Some seaports have infrastructures that are toilored to containerized freight while others focus on bulk.
One important infrastructure issue is the depth of the water. Unobstructured deep water is needed in both the channel leading to the port and the wharf to serve the growing population of post-panamax ships.
Although there are many organization involved in the day-to-day operation of an international port-the port authority, ocean carriers and their agents, pilots,stevedores,longshoremen,chandlers,freight forwarders, custom brokers.
Cargo airports are airports that, in addition to any other air transportation
services that may be available, are served by aircraft providing air transportation
of cargo only, with a total annual landed weight of more than 100 million pounds.
Most international airports are multipurpose airports that serve both passenger and
cargo traffic. They handle the 32 percent of the intercontinental air freight moving in
the belly of passenger planes and the majority of the 68 percent moving on air freighters.
Air cargo companies choose airport locations based on multiple factors.
1.The first step is to create a short list of possible airports based on geography and
then investigate any existing restrictions which may limit operations
2.The runways of an airport determine the types of aircraft that can serve the facility.
3.The number of runways is another major infrastructure issue as it determines the
capacity of the airport.
4.Airports must also have the necessary equipment to efficiently handle cargo