Module 1 Global Transportation System Shipping
Module 1 Global Transportation System Shipping
Module 1 Global Transportation System Shipping
Module -1
Date: 17-Dec-2021 Venue: IBBBS, Bangabandhu Sheikh Mujibur Rahman Maritime University,
Extended Campus, Dhaka.
Fayyaz Khundker
• Masters of Business Administration, Institute of Business
Administration, Dhaka University
• 30 Years of Service in Shipping and Logistics Industry in Bangladesh
and Overseas
• Worked for MNCs and JV companies like: James Finley PLC, Shaw
Wallace BD, P&O Nedlloyd, Maersk Line, NYK Line, ONE Line.
• “Chartered Fellow” of The Chartered Institute of Logistics and
Transport (FCILT)
• Married with two children
• Interest: Sports!
Notes:
• Please keep Mobile phone silent
• Please ask question after end of each topic
• If I cannot answer, shall reply through email at later stage
• Please provide your email id to my colleague Mr. Maruf Andalib
• No need to write elaborate notes, I shall share the presentation by
email
• My email id – fayyaz.Khundker@one-line.com (please feel free to
drop me an email anytime).
Topics to be Covered
• Different Mode of Transportation
• Types of Shipping
• Geography of Maritime Transport
• Major Commodity Trade in The World
• Liner Shipping: Containerization and Future Trend
• Alliance & Consortium
• Pricing: Component of Freight and Surcharges
• Shipping Fundamentals
Different Mode of Transportation
Different Mode of Transportation
• Transportation is used for the movement of people, animals, and
Cargo.
Different Mode of Transportation
• 3 Different modes of transportation
are Air, Sea and Land Transportation.
• Land Transportation includes
Rail, Road and Off-Road Transport
Air Transportation:
• Typically on airplane, which is heavier than air flight vehicle.
• Air transport is the fastest method of transport.
• Commercial jets reach speeds of up to 955 kilometers per hour
(593 mph)
• This celerity comes with higher cost and energy use
• Air cargo is any property carried or to be carried in an aircraft.
• Air cargo comprises air freight, air express and airmail.
Land Transportation
• A mode of transport or movement of people, animals, or cargo from one location to
another on land.
• The two main forms of land transport are:
• Rail Transport:
• Rail transport is where a train runs along a railway or railroad
• Modern high-speed rail is capable of speeds up to 350 km/h (220 mph)
• In Bangladesh average speed is up to 25~30 km/h
• Road Transport:
• Road transport offers a complete freedom to road users to transfer the vehicle from one lane to the other and
from one road to another
• This flexibility of changes in location, direction, speed, and timings of travel is not available to other modes of
transport.
• It is possible to provide door to door service only by road transport.
• Off-road Transport: Moving people or articles on land without the use of paved roads.
Sea Transportation:
• A transport by water of passengers or goods (cargo).
• The advent of aviation has diminished sea travel for passengers, but
still popular for short trips and pleasure cruises.
• Water transport is highly cost effective with regular schedulable
cargoes, such as trans-oceanic shipping of consumer products.
• Containerization revolutionized maritime transport starting in the
1970s.
• Sea Transport: In today's shipping market have evolved into three
separate but closely connected segments: bulk shipping, liner
shipping and specialized shipping
RECAP: Mode of Transportation
• 3 Different modes: Air, Land and Sea Transportation
• Air Transportation: Fastest transit/ Typically expensive/ Express
delivery- FEDEX/ UPS/ TNT/ DHL
• Land Transportation: By Rail/ Road- Freedom of users to transfer the
vehicle from one lane to the other and from one road to another.
• Sea Transportation: Highly cost effective with regular schedulable
cargoes.
• 3 Separate but closely connected segment-
• Bulk (large quantity)
• Liner (Small quantity/ Container)
• Specialized Shipping (Reefer/ LNG/ Chemical)
Types of Shipping
Types of Shipping
• Many ways you can send items or goods from A ➔ B
• Either nationally or internationally
• Each has different restrictions, requirements, costs
• Freight shipping: The thing you’re putting on a truck, train, ship or
plane to move from A ➔ B
• Freight can be sent via road, rail, sea or air, depending on the
destination to get it to its destination as cheaply as possible
Types of Shipping
DIFFERENT TYPES OF SHIPPING SERVICE
LINER TRAMP
SERVICE SERVICE
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SPECIAL CONTAINERS
20’ Open top container - Size : L- 20’ x W- 8’ x H- 8’6”
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SPECIAL CONTAINER
Tank Container:
• Ventilated container is a
shipping container that offers a
ventilation system due to its
lateral openings that permit air
flow and circulation.
• One of the main products
transported in the ventilated
container is coffee, which is why
it may also sometimes also be
known as the “coffee container”.
REEFER CONTAINER
20’ Reefer Container
TEMPERATURE - For any reefer cargo temperature is one of
the important thing and through out the voyage same
temperature need to be maintained.
Variable Space
Routing
Costs available
Return Equipment
Cargo available
Competition Impact on
Strategy future market
What is Freight? What are the Elements?
"Freight" includes all charges payable to the Carrier in accordance with the applicable
Tariff(s) and this Bill, including storage, demurrage and detention.
• These are the costs incurred by the merchant (e.g. customer / cargo owner) in moving
goods, by whatever means, from one place to another under the terms of the contract of
carriage.
• In addition to transport costs this may include such elements as packing, documentation,
loading, unloading and transport insurance.
COMPETITORS Competition among existing shipping lines. Intense rivalry can limit
RIVALRY profits & lead to competitive moves.
Shipment Cycle
Export Process Flow Shippers C&F agent
Send Container to passed the Document
Customer service
Customer give Shippers Off dock
Accept booking
Booking
Shipper Send
cargo to off dock
Send container to
Carrier issue Bill of
Port
Lading to customer
Container on board
and feeder sailed
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Customer Ask Import Process Flow Load on the Feeder
Delivery
Arrival in HUB
Arrival at Port
Customer service
Accept booking