Showing posts with the label shipping

Shipping Intermediaries

In the process of Logistics at the port involves- customs formalities and increase various duties and activities on its arrival to the port of destination for the clearance of vessels and transport the goods to warehouse. Other hand for the port of origin many duties and functions are also needed to be complete. Which may involve many intermediaries like. :- Forwarding & Clearing AgentsShipping AgentsForwarding & Clearing Agents are responsible for clearance of goods including custom clearance at the port. The associated costs at the two ends of maritime transport process will depend on the purchase contract terms. The supplier is responsible for responsible for the custom clearance at the loading port or port of origin for all trade terms except when the contract is on FAS terms. These terms are Incoterms which be discussed in my earlier blog posts. I will also post a latest Incoterms very soon in the coming post.  Now in these days freight- forwarders are not only forwarding …

Careers in Logistics

A webinar was organized by us on YouTube Live. In this webinar we will discuss about different careers in the field of Logistics and also discuss about how it is easy to become an independent logistics professionals. How the short skill development courses of Join Study will help you.
You already know that people are always trying to join IT, Software and other Engineering sectors they also thinking for Product and marketing Management fields. But what are the great chances for career growth in Logistics sector is discussed here in this webinar. Here is a complete video of this webinar for our blog readers and public.

Mandatory Deceleration For Imports In India

There ware a public notification issued by Commissioner of Customs, India on the date of 7th March 2018 and notification no is 33/2018. By this notification it is "Mandatory Deceleration of GSTIN, IEC and E-mail address of importer to be included in the Bill of Lading obtained by Shipper.
This notification will be effective from 1st of April 2018.

It is important for Importer that they have to inform all the related details to their Exporters at abroad to incorporated these information and details in the Bill of Lading issued at the time of booking for the related consignments.

GSTIN:-GST Identification Number of ImporterIEC:-Import and Export Code of ImporterE-mail Id:- Official and Legal E-mail Id of Importer There are some reasons to be issued this notification. It is due to hazardous waste in the ports. many hazardous and restricted items were imported by the name of some importers and never cleared the consignments. These uncleared consignments with restricted and hazardous …

Packing principles relating to cargo in containers

Packaging is an important part for logistics. It is a big topic for study about the packing principles relating to cargo in containers. in this topic we will discuss about all important packing principles regarding this. Principles regarding stowing of all cargo into the containers is also plays an important role in logistics performance. It is important to know that how to restrain the cargo and also about the shorting, lashing, wedging and locking. Below is the slide shows, In this slide shows you will all the related discussion in details. this slide sows provide you a better concept regarding the packing principles relating to cargo in containers. Please see the slide shows below.

The Growing Importance Of Dry Ports.

The growing importance of dry ports (Inland Intermodal Terminals) in the economic transformation of landlocked nations as well as port countries is widely acknowledge. Dry ports are now becoming the hub of transshipment to inland destinations thereby promoting inter-regional trade and business. More importantly, dry ports are fast becoming the gateway to international markets in facilitating trade, economic growth and development.
In my previous post I have discuss about details of Dry Port (ICD). Hope you will understand properly. Now in this post here is some question for you to solve and check your knowledge. If you have any question then sure ask it on the comment box of this post.


Functions OF A Dry Port (ICD)

The functions and the concept of  Dry Ports are better understood by understanding the function of  a Sea Port. At Sea Port, the import cargo of the region is received by incoming ships, the ship is berthed and unloaded, the cargo is segregated for each consignee and stored awaiting customs clearance and delivery. Similarly the export cargoes from the region are aggregated, costumes and other formalities observed and completed and the goods are finally loaded on the appropriate outward bound vessels.  Other admin and customer facilities with proper transport activities are also done in Sea Port.
The Dry Ports perform similar functions. But they receive import cargoes and dispatch export cargoes from or to Sea Port by proper Unit Rail connected to Sea Port. All documentation is done at Dry Port and transport to and from the Sea Port is organised. You can say "A Dry Port is a port provide all the facilities of a sea port at the place far away from sea port."
You may understan…

Assignments on Documentation and Liabilities

Social medias are full of unnecessary discussion and thoughts. Every people on the social medias are claiming their ability fake but some of them are true also. Blog is original image of public qualities and their abilities.
So I am posting here an assignments for all Logistics Professionals, students and teachers. Please solve these question which are very important to check your abilities.


Importance of Trade Volume for planning a Dry Port

Dry ports depends essentially on the external trade traffic of the countries in which they are setup.While planning a dry port, therefore the first consideration would be the trade volumes, both inwards and outwards means imports and exports both. once these are decided, detailed breakdown of import and export volumes in every terms would be most useful parameters to outline the necessary facilities that need to be provide in terms of terminal handling, storage and transport.the next step is that panning team have to determine the commodity and its volume that may move from the dry port. during the course of survey it was found that most governments of land-locked countries bring out annual statistics of external trade in terms of commodities and values.The common problem encounter is the paucity of current data regarding the every aspects of commodities trade which could help establish the requirements of transport, handling and storage at the dry port.
It was learnt that basic docume…

Models in Logistics Management

Various quantitative models from the Operation Research Literature can be used to address the decision areas in Logistics.
Location models:- These models help in planning the optimal location of plant or warehouses, considering the inbound and outbound transportation costs and infrastructure cost at the locations. 
Allocation models:- These models help in optimally allocating commodities from sources to destinations in a multiple sources, multi destination environment. The costs consider for optimization are the production cost, transportation cost and warehousing.Distribution network design models:- These models are usually comprehensive in nature deciding between a two, three or even four stage distribution network, location of warehouses and break bulk points and sometimes even the transport mode choice.Inventory models:- Inventory models play a key role in Logistics Management. The inventories that are directly affected due to outbound logistics are  Finished Goods InventoryPipeline …

Applicability of UNCTAD/ICC Rules


Size of Container Yard

It will depend upon the optimum number of containers to be store at any given time which is a function of the dwell time (DT) of containers which are separate for imports, exports and empty containers. Normally seven days for import, three days for export and 15 days for empties is considered pragmetic.

Imports = 6400 TEUs/annum or 18 per day.
At 7 days DT for each, the average inventory will be :
   18*7=126 TEUs
exports = 1600 TEU/annum or 5 TUs/day
at 3 days DT for each, average inventory will be
   5*3=15 TEUs
empties = 4800 TEUs/annum or 14 TEUs/day
at 15 days DT, average inventory will be :
   14*15 or 210 TEUs
Daily total average inventory = 126+15+210=351

The total storage capacity of CY should in the case be 351 of which the ground slot will be a fraction of the stake height. While equipment available may be capable to stake five high, full capacity can not be used for operating consideration as containers have to be shuffled for access and if the stake is full, shuffling an…

Systems of Customs Security Arrangements

Customs Security is usually composed of two elements :- 

-----  A requirement for a financial guarantee to be established in the transit country by the party responsible for the transit operation to meet possible claims by the Customs, coupled with

-----  Physical measures taken by the Customs to verify that the goods are eventually re-exported.

Under the TIR guarantee system, each contracting party designated a national guaranteeing assosiation, which undertakes to act as a guarantor for all TIR carnets used for transit on the territory of the country,

Regardless of whether the carnets have been issued by the association itself or by association of other countries which are parties to the TIR Convention.

All these associations form a chain in which members are linked to each other through an International Organization, which is the International Road Transport Union (IRU).

Reference to Customs Security Arrangements in the MT Convention was limited to the following .

-----  A financi…

Trade Logistics

Trade Logistics is a chain of series of links and interfaces with potential for value addition. The difference between the revenue earned by a business enterprise and the cost of bought-in materials, services and components, represent the value which a firm adds by the process of production. The value added concept is also important in that it helps in measuring productivity and profitability of an enterprise, its impact on the national economy and keeping in focus the sources of comparative advantage like logistics, marketing, sales and service.

Through optimization which is the essential function of logistics, many nations like new big economic nation India and China, also developed nation like USA and western European nations and Japan have benefited by :-

-----  Selling service rather than remaining content with the price of exporting.

-----  Simplifying documentation, customs clearance and payment formalities.

-----  Offering varied choice of delivery terms.

-----  Increase in t…

Period of Responsibility of Carrier

Period of Responsibility for  Liability of Carrier :-

1)  The responsibility of the carrier for the  goods under many convention covers the period during which the career is in charge of the goods at the port of loading, during the carriage and at the port of discharge.

2)  For the purpose of  this article the carrier is deemed to be in charge of the goods.

a)  from the time has taken over the goods from

-----  the shipper or a person acting on his behalf

-----  an authority or other third party to whom, pursuant to law or regulations applicable at the port of loading, the goods must be handed over the shipment.

b)  Until the time has delivered the goods.

-----  by handing over the goods to consignee.

-----  in case where the consignee does not receive the goods from the career by placing them at the disposal of the consignee in accordance with the contract or with the law or with the usage of the particular trade applicable at the port of discharge.

-----  bu handing over the goods t…

Forecasts for Containerisable and Breakbulk Traffic

Traffic Forecasts :-

In traffic forecasting two methods can be resorted to, which as may appear are not mutually exclusive.
These are :-

-----  trend analysis and extrapolation.

-----  trade projections based on economy of the country and are done on the basis of actual economics parameters.

Both methods applied mechanically and in isolation can lead to very unrealistic figures. Normally trade forecasting will start with the trade statistics of the previous years preferably in both value and volume terms.

Port statistics may be helpful in other cases but in the context of LLCs where the serving ocean ports may not have the country-wise exports, this method will not help to allow analysis of trend, a run of figures is needed and the period should be preferably at least as long as the forecasting period.  

The economists approach in trade forecasting would tend to categorize commodities according to their economic properties .

A clear cut distinction has to be made between exports and …

Lay Time in Shipping

In a voyage charter the time spent by the vessel at the port is, of particular importance to the owner because the freight is fixed only with reference to the quality of cargo carried and any undue detention during which he continues to incur fixed overhead charges such as depreciation, insurance, interest on invested capital, wages etc. would reduce his calculated profit.

An important clause in the charter party is therefore the one stipulating the maximum time to be allowed for the cargo loading and discharging operations, that is Lay Time.

The provisions of the charter party usually state that lay time is to commence at a specific time after notice of readiness has been given.

The cancelling date is applicable to the loading port only and is the absolute last day under the terms of the charter party on which the charterer is obliged to make use of the vessel.

Lay Time may be expressed as the maximum number of days allowed for loading and discharge or as loading/discharge rate like…

Time Charter in Shipping

Time Charter in Shipping is usually restored to when the charterer desires to operate a vessel for a period of time without undertaking either the financial commitments of ownership or responsibilities of navigation and management of the vessel.

Point of difference between time charter and voyage charter is the basis of calculating hire or freight . In the case of voyage charter freight is paid on the cargo carried and is directly proportionate to the volume of the cargo. In the case of time charter, the volume of cargo has no relation to the charter hire which is fixed on the basis of carrying capacity of the vessel and is directly proportionate to the period of charter .

Followings are the clauses contained in the time charter party usually related to :-

-----  Description of the vessel name, flag, ownership, class, gross and net registered tonnage, cargo capacity, indicated horse power and speed, bunker consumption, etc.

-----  Rate of cahrter hire and mode of payment.

-----  Char…

Bare Boat Charter

Bare Boat Charter is also known as Demise Charter. This is a type of contract under which the owner provides the service of vessel to the Charterer for a period of time in return for charter hire. For all practical purpose, charterer acts as the owner of the vessel during the period of charter but without undertaking the financial commitments of ownership.

The Bare Boat Charter party commonly used is the standard "Barecon" charter party. The charter party usually contains clauses relating to;

1)  Description of vessel - such as size, speed, fuel consumption, loading capacity etc. on which the performance will be depend.

2)  Survey to be carried out on delivery and re-delivery.

3)  Inventories of stores to be taken on delivery and re-delivery.

4)  Charter period - usually a provision of included giving the charterer the option of extending the validity of the charter by a specified period.

5)  Rate of charter hire and mode of payment. This is usually computed on the deadweig…

Decision Areas In Warehousing

There are two important decisions in Warehousing. Which are as follows :-

A)  Warehousing Location : The following factors influence the location of a warehouse:-

------  Transport facilities available.

------  Transportation cost of serving the market area.

------  Transportation cost of supply to the warehouse.

-----  Product price, customers' expected level of service and the resulting inventory carrying costs.

-----  Exise duties and other taxes assesed in the area.

-----  Labour supply and costs.

-----  Land and construction cost.

-----  Availability of power, water and communication.

-----  Climatic conditions.

-----  Attitude of residents and government towards the establishment of the warehouse.

-----  Potential for future expansion.

-----  Location of warehouse of competitors.

B)  Own versus lease versus use Public Warehouse :-

A warehouse may be privatly used or publically used . If a company makes goods and these are stored exclusively in some warehouse, then such wareho…

Paperless Trading

Paperless trading is done by Electronic Data Interchange (EDI). EDI is a very important Part of Modern Trade and Logistics.  Evolution of data elements that can be transmitted electronically to interchange trading information such as invoice etc. have been part of this development.

Advantage of Paperless Trading :-

------  EDI saves on clerical costs by avoiding re-entering of data. It allows timely and error free transaction information be passed from one computer to another.

-----  By improving information management and data exchange between organizations, EDI promotes introduction of new business strategies such as just in time manufacturing based on zero stock principle.

-----  Providing error free information to the right place at the right time; thus quicker response to orders, shortening of delivery cycle.

-----  Reducing stocks levels and thus increasing availability of working capital.

-----  Quicker and safer processing of invoice brings speedy payments with improving cash…

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