Unit IV-International logistics management Containerization1.pptx

ILM- Contenarization

1. Unit IV-Containerization Dr.Madhavi

2. What is Container

3. Advantages of Containerization Flexibility : Containers can transport a very large variety of goods ranging from food grains or food products to machinery. Cargoes that are of abnormal sizes and shapes that do not fit into the normal containers are called OOG cargo. Out of Guage Cargo (OOG) can be easily transported on flatbeds or platform containers.

4. Advantages of Containerization Advantages Ease of Management : Shipping containers are indivisible units and each registered container has a unique identification number making it easy to track and trace it during a voyage. This unique number called the container number is given to it following specifications of the Bureau International des Containers (BIC). The BIC is an organization based in Paris that ‘oversees standards for intermodal containers’. The container number is used in the verification of cargo by various parties such as the shipper, the receiver, ports and customs authorities, etc.

5. Advantages of Containerization Advantages Speed of Transportation: With bigger and more powerful cargo ships and modern container handling equipment, transhipment times have reduced drastically. Loading and unloading are faster these days, at ports as well as at modern warehouses. Standardized MHE (Material Handling Equipment) makes it easier to handle shipping containers coming from and going to different parts of the world.

6. Advantages of Containerization Economies of Scale: The cost of transporting goods by containers is said to be 20 to 25 times less than the cost of transporting the same goods as loose bulk. Containerization has drastically brought down the transport cost element in the pricing of goods. Economies of scale is a major factor here. In general, economies of scale is the advantage companies get as a result of producing or dealing in bulk.

7. Advantages of Containerization Durability: Depending on the usage, a shipping container can last for 10 to 25 years. Once they are condemned after it is no longer usable, containers are often used for storage or converted as living quarters. Empty containers are used as temporary storage space by warehouses and distributers especially when their storage facility has reached its capacity. Containers can be placed in any convenient location in the warehouse yard. It provides temporary and flexible storage for companies when required.

8. Advantages of Containerization Safety and Security: Intermodal containers are safe and secure. These heavy-duty boxes are walled on all five sides except one end where the double doors are located. These double doors have double lock-rods each, that are used to lock and seal the container making it safe and tamper-proof.

9. Advantages of Containerization Standardization: Since ISO-certified containers are of standard size and dimensions they can be handled universally by any standard transport. This makes it easier to use, transport, and store the containers.

10. Disadvantages of Containerization Space Constraints: Containers, whether carrying cargo or empty, take up a lot of space. Terminals need to have enough stacking space to accommodate containers that come in and go out of it. Containers that must go out first must not be at the bottom of a stack. The latest container handling equipment and other infrastructure have to be in place to ensure minimum port turnaround times for cargo ships. Besides a favourable location, a container terminal needs to take all these into consideration.

11. Disadvantages of Containerization Infrastructure Costs: The latest dockside gantry cranes and other terminal equipment cost several million US dollars. Leading ports and terminals are those that can make these investments and also keep the equipment upgraded according to advances in technology. While developed nations can make such investments others may find it difficult to keep up with the race.

12. Disadvantages of Containerization Container Management Failure: Management of containerized cargo depends on timely receipt and processing of information. An effective terminal management software ensures effective management of all the information that is necessary for the successful running of a terminal. Cutting corners here can have disastrous consequences.

13. Disadvantages of Containerization Re-positioning of Empty Containers: Containers that come in with cargo are unloaded and eventually moved to the designated stack for empty containers at their destination. Shipping companies need their empty containers to be available where there is demand. Hence, empties (empty containers) have to be relocated in a timely manner to the desired locations. Unless empty containers are moved out of empty container yards to destinations where they can be put to use, it would result in demand-supply imbalance leading to a shortage of containers for shipments.

14. Disadvantages of Containerization Smuggling: Smuggling of contraband such as arms, drugs, and even human trafficking happens through containers . Typically, customs authorities the world over inspect containers at random. It is possible that contraband can sometimes slip through. Other reasons that prompt the authorities to inspect certain containers are tip-offs, irregular documentation, suspicious patterns of shipping goods, etc. Customs in developed countries use X-ray scanners that can scan containers.

15. INLAND CONTAINER DEPOT(ICD) According to Ministry of Commerce ( MoC ) guidelines, the meaning of inland container depot is “a common user facility with public authority status equipped with fixed installations and offering services for handling and temporary storage of import/export laden and empty containers carried under Customs and other agencies competent to clear goods for home use, warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export. Inland Container Depots (ICD) are temporary storage facilities for import and export related goods . There are over 100 ICDs in India owned by both private and government entities. These depots function as transport hubs in the logistics chain and help companies handle their cargo.

16. Functions of Inland Container Depot Receipt and dispatch/delivery of cargo Stuffing and stripping of containers Temporary storage of cargo and containers Maintenance and repair of container units Transit operations by rail/road to and from serving ports Customs clearance Consolidation and desegregation of LCL cargo

17. How does an ICD work? In case of exports: Companies sent shipments which are received by the depot for temporary storage All documents for shipment and customs clearance are provided by the business Documents are verified by customs officials Cargo is dispatched to the nearest port Empty containers after unloading are sent back to the company

18. How does an ICD work? In case of imports: Imported goods are sent from the nearest port to the ICD Goods are checked by the customs officials and relevant documents like Shipping Bill is verified Cargo is dispatched to the respective company The ICD may also provide servicing and repair facilities for containers.

19. Advantages of Inland Container Depots Acts as a transportation hub ICDs are transportation hubs for import and export businesses. They help store the goods and the empty containers after unloading. It acts as a transit point and consolidates cargoes assigned for LCL shipping. Lower costs for import export businesses ICDs provide all facilities including temporary storage, dispatch to port and custom clearance which ensures that the costs of exporting and importing goods remain competitive. Besides, they can also help reduce the movement of empty storage containers, leading to lower demurrage charges.

20. Advantages of Inland Container Depots Reduce congestion in seaports ICDs play an important role in reducing load on seaports by sharing the space for goods. This leads to better organisation and management of containers for exports and imports. Infrastructural benefits ICDs aids ports in managing the huge traffic of containers that get loaded and unloaded. Some of the depots offer premium facilities including trained professionals experienced at handling different types of cargo, and  last-mile logistics

21. Advantages of Inland Container Depots Add on services Repair of damaged containers is an add on service provided by ICDs. Also, storing empty containers and transporting them back to the company helps companies reduce costs. ICDs also provide customs clearance and warehousing services to import and export businesses helping the latter to outsource these tasks.

22. Difference between Container Freight Station and Inland Container Depot

23. List of Inland Container Depots in India

24. Container Freight Station A CFS is also a place where goods for import and export are stored temporarily. It is an extension of a port or terminal and was conceived with the objective of clearing congestion at India’s ports and terminals. While CFS might have started off as an Indian concept, it is now part of the international shipping vocabulary.  CFS is located close to a port, terminal or inland container depot (more on this later). It might sometimes be found near a major railway hub as well. Container freight stations are owned by shipping lines and terminals or are privately owned. A CFS is involved in the import-export business at the points of origin and destination. Container freight stations are, thus, categorised as “origin CFS” and “destination CFS

25. Functions and Responsibilities of CFS Receives and consolidates LCL shipments for export De-consolidates container at destination and dispatches shipment for final delivery Prepares container load plan  Stuffs and de-stuffs containers (for both LCL and FCL cargo) Marks and seals containers for identification Serves as temporary storage space for cargo, empty and laden containers Moves empty containers from container yards (CY) and laden containers to port/terminal  Stacks, sorts, tracks and tallies containers before and after shipping Maintenance and repair of containers Transit operations by road/rail to and from port/terminal

26. Functions and Responsibilities of CFS Organises   customs clearance procedures  such as classification, examination and assessment of goods Keeps goods safe till they are shipped or picked up Deals with  break bulk  (loose, non- containerised ) cargo originating or terminating in the immediate hinterland of the port or terminal and with rail-borne traffic to and from inland locations  

27. Export Process at CFS Exporter loads goods on truck, delivers it at CFS with  shipping bill Goods are unloaded and received by CFS custodian Goods undergo customs clearance procedures After customs authorities endorse shipping bill with “let export order”, CFS stuffs goods into the container CFS seals container hands it over to port/terminal for export

28. Import process at CFS Importer/carrier/steamer agent files import general manifest (IGM) – with details of cargo, exporter, importer, ship/aircraft – at port/terminal to move cargo to CFS   Container received at port/terminal is forwarded to CFS  Cargo is offloaded, stacked and de-stuffed at CFS Cargo owner or their clearing agent files bill of entry, proceeds with cargo clearance and duty payment  Customs endorses bill of entry with “ out of charge ” order CFS custodian issues gate pass to release cargo to the importer .

29. Why CFS is Important It decongests ports and terminals Frees them of several customs clearance procedures Assigns unique identification number to vessels, facilitating easy tracking of cargo and containers   Maintains records of shipments, including names of exporter, importer and customs agent, cargo details, origin and destination ports, carrier name, truck number and so on Provides all the benefits of containerised shipping such as greater cargo security, timely and efficient loading, unloading, stuffing and de-stuffing, and a variety of containers to suit your needs.

30. ICD and ICF Bing Videos

31. CONCOR

32. CONCOR MISSION

33. MANAGEMENT STRUCTURE OF CONCOR

34. CONCOR International Services

35. CHARTERING

36. CHARTERING

37. CHARTERING

38. Types of chartering

39. 1. Voyage chartering

40. Voyage chartering

41. Voyage chartering

42. Voyage chartering

43. Time Chartering

44. Reasons for Time charter

45. Time charter-Forms

46. Time charter on trip basis

47. Time charter on trip basis

48. Contract of Affreightment

49. COA

50. COA

51. Bare Boat Chartering

52. BBC

53. BBC Form