DRIVE- FALL 2013

SUBJECT CODE & NAME- IB0016

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Q1. Write a note on the difference between national and international logistics. Describe the role of
global logistics operator in global trade.
Answer.
Difference between national and international logistics:
National Logistics:
National Logistics Group is a both an asset and non asset based third-party logistics provider specializing
in forward stocking and white glove, over the threshold solutions to the medical industry and other
marketplaces. Headquartered in Providence, Rhode Island, the ISO 90012008 quality certified company
offers nationwide delivery through more than 300 locations that provide forward stocking and final mile
deliveries in a single call solution. Founded in 1998, National Logistics Group is an AmerisourceBergen
company.
International Logistics:
Global logistics represents the process involved in getting a product from the factory floor to the store
shelf, and everything in between. It includes the global sourcing of the product where its
manufactured its transportation, the industrial real estate sites and warehouses that hold it prior to

delivery, the logistics management software and other technology used throughout the supply chain and
the third-party logistics providers who manage the process from beginning to end.

Role of global logistics operator in global trade:

International logistics play an important role. Logistics is a continuous process. The word logistics has
been derived from the French word. Logistics involve efficient management of raw materials from source
of supply to production line till the delivery of final goods to the consumers. Logistics involve activities
like transportation, warehousing, inventory control and order processing and information monitoring.
The importance of logistics system is that it leads to the ultimate consummation of the sales contract.
Logistics has gained importance because of a number of new developments such as globalization,
liberalization and computerization in addition to a host of other developments. Logistics has certain
general objectives cost reduction, capital reduction and service improvement. A proper logistics should
have some definite objective. The elements of logistics are order processing, warehousing, inventory
control, transportation and information monitoring. All the elements should be co-ordinate properly so as
to achieve a sustainable competitive advantage in the market.

Q2. Analyze and discuss market-accommodation flow with respect to operational, planning and
control and behavioral context.

Answer:
Market accommodation flow, which reflects post-sales service administration and reverse logistics,
including product recalls and recycling. Market accommodation also enables effective supply chain
planning through exchanging information on sales and product use. Examples include product
customization requirements, point-of-sale (POS) data, end-customer consumption, and warehouse
releases. The market-focused flow provides supply chain participants with channel visibility regarding
timing and location of product consumption. Improved overall planning and operations result when
participants share a common understanding of demand and consumption patterns.

Market-accommodation flow with respect to Planning and control context

Market-accommodation flow with respect to Behavioral context

Q3. Write short notes on:

a) Bulk cargo
b) Container vessel
Answer.
Bulk Cargo
Bulk Cargo is a cargo which can be carried and stored in large quantities. Market demand of such goods
does not change frequently. Such cargoes are low unit value. There is no risk of deterioration or obsolence
in case of bulk cargo. Commodities like food grains, fertilizers, building materials and petroleum products

are considered bulk cargo. Bulk cargo is further divided into dry bulk cargo and liquid bulk cargo. Such
cargo should preferably be carried by sea which is the cheapest means of transportation.
The overall cargo weight is the limiting factor in the design of an ore carrier, since the cargo is so dense.
Coal carriers, on the other hand, are limited by overall volume, since most bulkers can be completely
filled with coal before reaching their maximum draft.
For a given tonnage, the second factor which governs the ship's dimensions is the size of the ports and
waterways it will travel to.
For example, a vessel that will pass the Panama Canal will be limited in its beam and draft. For most
designs, the ratio of length-to-width ranges between 5 and 7, with an average of 6.2. The ratio of lengthto-height will be between 11 and 12
Container vessel
By the early 1970s, cellular container vessels were operational on most of the trade routes between
America, Europe, Japan and Australia. Presently, containers are used all over the world. Containerization
has not only eliminated conventional time consuming methods of cargo handling but has also benefitted
the shippers, ship owners and port authorities. Now all countries of the world have improved their
infrastructure for efficient handling of containerized traffic. Container is a single rigid, sealed, reusable
metal box in which merchandise is shipped by vessel, truck or rail. The container can be made of steel,
aluminum or fibre board.
Containers have the following features:a) Can be repeatedly used
b) So designed as to be easy to fill and empty
c) Fitted with hardware to allow easy handling
d) Designed to facilitate transfer of goods by one or more modes of transport without intermediate
reloading

Types

The ship dimensions, such as the ship breadth, depend on the number of containers placed abreast on deck
and in the holds. Thus, one extra container box abreast in a given ship design involves an increased ship
breadth of about 2.8 meters. The average loaded container weighs about 10-12 tons but, of course, this
may vary, so the modern container vessels are dimensioned for 12-14 dwt per TEU.
PanaMax
The delivery in 1980 of the 4,100 teu Neptune Garnet was the largest container ship to date. Deliveries
had now reached a level of 60-70 ships per year and, with some minor fluctuations, it stayed at this level
until 1994, which saw the delivery of 143 ships. With the American New York, delivered in 1984,
container ship size passed 4,600 teu. For the next 12 years, the max. container ship size was 4,500-5,000
teu (mainly because of the limitation on breadth and length imposed by the Panama Canal). The hull
dimensions of the largest container ships, the so-called Panamax-size vessels, were limited by the length
and breadth of the lock chambers of the Panama Canal, i.e. a max. ship breadth (beam) of 32.3 m, a max.
Overall ship length of 294.1 m (965 ft), and a max. draught of 12.0 m (39.5 ft). Panama Canal lock
chambers are 305 m long and 33.5 m wide, and the largest depth of the canal is 12.5-13.7 m. The canal is
about 86 km long, and passage takes eight hours.
Post-PanaMax
APL developed a new transportation net without using the Panama channel. This marked the creation of
the new 'Post-Panmax' type. In 1996 the Regina Mrsk exceeded this limit, with an official capacity of
6,400 teu, and started a new development in the container ship market. Since 1996, the maximum size of
container ships has rapidly increased from 6,600 teu in 1997 to 7,200 teu in 1998, and up to 8,700 teu in
ships delivered in 1999. The vessels delivered or on order with a capacity of approx. 9,000 teu have
exceeded the Panamax beam by approx. 10 m. The development of the post-panamax fleet has been
dramatic; today 30% of the world's fleet, by capacity, is post-panamax
From the carrier perspective, the primary appeal of the mega ship is operating economy of scale. The
operating cost of a 6,000 TEU vessel is not proportionally higher than that of a 4,000 TEU ship. However,
viewed in terms of their impact on the larger transportation system, such vessels may actually impose
higher costs. Problems with the Super Post-Panamax class of ship include the massive surge of containers
discharged in a single port call; the challenge inherent in trying to fill a very large ship with cargo on a
repetitive basis; and the expense involved in providing sufficient channel and berth depth, terminal area,
gantry cranes of adequate size, and other items of equipment and infrastructure. Despite these concerns,
over 50 orders for ships in this class were placed with shipyards in 1999 alone.

Suez-Max Ultra Large Container Ships (ULCS)

The Suez Canal canal is about 163 km long and 80-135 m wide, and has no lock chambers. Most of the
canal has only a single traffic lane with several passing bays. It is intended to increase the depth of the
canal before 2010 in order to capture the largest container ships to be built.
Suez-max investigations showed that in future, perhaps by 2010, Ultra Large Container Ships (ULCS)
carrying some 12,000 teu containers can be expected. This ship size, with a breadth of 50 m / 57 m, and
corresponding max. draught of 16.4 m / 14.4 m, may just meet the present Suezmax size.
For these very large vessels of the future, the propulsion power requirement may be up to about 100
MW/136,000 bhp. Investigations conducted by a propeller maker show that propellers can be built to
absorb such high powers. Single-screw vessels are therefore still being considered, along with twin-skeg
vessels (with two main engines and two propellers).
Post-Suez-Max
Post-Suez-max nvestigations indicate that in about 10 years the ULCS will perhaps be as big as 18,000
teu, with a ship breadth of 60 m and a maximum draft of 21 m. Today, this ship size would be classified as
a post-Suezmax ship, as the cross-section of the ship is too big for the present Suez Canal. It is claimed
that the transportation cost per container for such a big ship may be about 30% lower than that of a typical
5,000-6,000 teu container vessel of today.
Post-Malacca-Max
Malacca-max relfects the fact that a draft of 21 m is the maximum permissible draught through the
Malacca Strait.
With the intended increase of the cross-section breadth and depth of the Suez Canal over the coming ten
years, the 18,000 teu container ship will also be able to pass the Suez Canal. On the other hand, a future
container ship with a draft of 21 m would require existing harbors to be dredged. Today, only the harbors
of Singapore and Rotterdam are deep enough.

Q4. How is ocean liner conferences formed? What are the types of liner associations?
Answer.

Ocean liner conference

A Liner Conference can be defined as "a group of two or more vessel operating carriers which provide
international liner services for the carriage of cargo on a particular route or routes within specific
geographical limits and which has an agreement or arrangement within the framework of which they
operate under uniform or common freight rates and any other agreed conditions with respect to the
provisions of the liner services".

There are two types of shipping conferences, namely the Open Conferences and the Closed
Conferences:
Open Conferences
All conferences operating to and from the United States are "open conferences". An open conference
practically has to accept any shipping lines that applies for membership in accordance to with the United
States legislation. The interpretation of US Anti-Trust Laws in the context of shipping conference forms
the basis of structure "open" conferences.

Closed Conferences

Most European based shipping conferences are "closed" conferences. A closed conference admit new
members at the discretion of existing members. A closed conference regulates the participation of each
member in the trade via negotiations.

Thus, a closed conference has a greater ability to prevent costly over-tonnaging.

Common Features of Conference Liner Services

1. Uniform tariff rates and terms and conditions.

2. Control of supply of shipping space through regulation of trade participation of each member
such as sailings, tonnages and port restrictions.
3. Loyalty arrangements with shippers such as contractual discounts, deferred rebates and service
contracts.

Q5. What are logistics intermediaries? Explain the different types of intermediaries and their
strategic approaches.
Answer.
Meaning
Logistics intermediary: A party who arranges shipping, warehousing, distribution and other goods
movement on behalf of goods providers and shipping companies.
Function of Intermediaries

Distribution of goods takes place by means of channels, and the intermediaries are the
independent groups or organizations within the channel that make the product available for
consumption.

There are four main types of intermediary: agents, wholesalers, distributors, and retailers.

A firm may have as many intermediaries in its distribution channel as it chooses. It can even have
no intermediaries at all, if it practices direct marketing.

Types of Intermediaries
There are several types of intermediaries associated with direct and indirect exporting. They may be:
i) Importers
ii) Foreign Distributors
iii) Foreign Retaillers
iv)Government organizations
v) End users

vi) Brokers
vii) Multiple Stores/Chain stores
viii) Piggy Backing
1 Importers
Importers identify the local requirements of products and then import them from other countries of the
world. They purchase goods from foreign producers in their own name and as such are independent
middlemen. They make their own marketing strategies. They are an important link between the exporter
and the end users. Selection of right type of importer is the main problem of an exporter. The exporter
should consider the following factors while selecting an importer:i) The importer should be trustworthy, reputable and creditworthy.
ii) The importer should have experience in the line of business.
iii) He should have adequate infrastructure and personnel.
2 Foreign Distributors
A foreign distributor may be a firm in the foreign market who purchases goods from the manufacturer and
sells to consumers directly or through retailers. They may have exclusive rights for the distribution in
their country. They perform the job of wholesalers or retailers. Sometimes foreign distributors operate as
consignment agents on mutually agreed terms and conditions. An exporter must select the foreign
distributors carefully keeping in view his reputation, experience and facilities available with him.
3 Foreign Retailers
In case of consumer goods it is advisable that manufacturers select foreign retailers as a channel of
distribution. Retailers sell the goods, possibly offer credit, provide product information to customers and
ensure that goods are available in small quantities throughout the year.
4 End Users
Large industrial companies prefer to buy directly from the producers without involving any middleman.
For example in case of airline/shipping line, aircrafts and ships are directly purchased from the
manufacturers. This direct channel is very useful in case of goods of high value and technical goods.
5 Government Organizations

In some countries such as communist and socialist countries, government departments and organizations
are the large buyers from foreign manufacturers. Such purchases are generally essential commodities, e.g.
food, military supplies etc. and purchases often are on long term basis. Large manufacturers of reputation
may contact such organizations.
6 Brokers
Brokers do not buy goods in their own name. They bring the exporters and the buyers together for a fee.
They are commonly found in international markets. The broker may be assigned one or more foreign
markets by the seller. They negotiate terms and conditions on behalf of the seller (manufacturer).
Brokers have following advantages:
i) They are less costly.
ii) They bring personal touch to parties-sellers and buyers.
iii) They have extensive knowledge of the foreign markets.
iv)They create a link between the sellers and the buyers.
7 Multiple Stores/Chain Stores
Multiple stores and chain stores directly import from manufacturers in their own name for retail sale.
Sometimes, they act as wholesale importers. Generally their purchases are on long term basis and in large
quantities. They are becoming important as direct customers.
8 Piggy Backing
Smaller firms operating in international business may piggyback on large companies which are already
operating in certain foreign markets and are willing to act on behalf of other firms that wish to export to
those markets. The carrier will purchase the goods on outright basis or act as a commission agent.
Sometimes the carriers will insist that the riders products be similar to its own. The rider gets the
carriers facilities and resources and can conveniently sell its products without establishing his own
distribution system. The products retain the name of the manufacturer and both partners normally sign a
multi-year contract to provide continuity.

Q6. Describe the various measures that must be taken while transporting the hazardous materials.
Answer.

These 11 rules are presented in no particular order. They are all top priorities for chemical handlers.
However, feel free to rearrange them in whatever order you think is best for your workplace, your
workers, and your material hazards.
Rule1. Follow all established procedures and perform job duties as you've been trained.
Rule2. Be cautious and plan ahead. Think about what could go wrong and pay close attention to what
you're doing while you work.
Rule3. Always use required PPEand inspect it carefully before each use to make sure its safe to use.
Replace worn out or damage PPE; it won't provide adequate protection.
Rule4. Make sure all containers are properly labeled and that the material is contained in an appropriate
container. Dont use any material not contained or labeled properly. Report any damaged containers or
illegible labels to your supervisor right away.
Rule5. Read labels and the material safety data sheet (MSDS) before using any material to make sure you
understand hazards and precautions.
Rule6. Use all materials solely for their intended purpose. Dont, for example, use solvents to clean your
hands, or gasoline to wipe down equipment.
Rule7. Never eat or drink while handling any materials, and if your hands are contaminated, dont use
cosmetics or handle contact lenses.
Rule8. Read the labels and refer to MSDSs to identify properties and hazards of chemical products and
materials.
Rule9. Store all materials properly, separate incompatibles, and store in ventilated, dry, cool areas.
Rule10. Keep you and your work area clean. After handling any material, wash thoroughly with soap and
water. Clean work surfaces at least once a shift so that contamination risks are minimized.
Rule11. Learn about emergency procedures and equipment. Understanding emergency procedures means
knowing evacuation procedures, emergency reporting procedures, and procedures for dealing with fires
and spills. It also means knowing what to do in a medical emergency if a co-worker is injured or
overcome by chemicals.

CONTACT ME TO GET FULLY SOLVED SMU

ASSIGNMENTS/PROJECT/SYNOPSIS/EXAM GUIDE PAPER
Email Id: mrinal833@gmail.com
Contact no- 9706665251/9706665232/
www.smuassignmentandproject.com
COST= 100 RS PER SUBJECT