SEA & OTHER TRANSPORTATION SYSTEM

BY:-

KUMAR JYOTIRADITYA

MODES OF TRANSPORTATION

• AIR

• SEA

• ROAD

• RAILWAYS

• Other transportation system such as Ropeways, pipe line etc.

AIR TRANSPOTATION SYSTEM

• Used wherever fast delivery required

• IATA acts as medium fixing the tariff for airlines

• Constituents of IATA rate structure-

General cargo rates (GCR)

Specific commodity rates(SCR)

Freight all kind rates(FAK)

Govt. Mandatory rates

Items transported by air

• High value products• Perishable products

e.g. short shelf life as cheery, strawberries. • Emergency products

e.g. medical & spare parts for machinery• Live animals

e.g. race horses• Fashion items

e.g. short sales life items

Advantage & disadvantages

ADVANTAGES

• Faster

• Broad service range

• Increasing capabilities

Disadvantage

• High cost

• Weather condition affect flights

• Limitation for heavy products

WATER TRANSPORTATION

• Used for low value to weight ratio products as timber

• Offers less cost per ton kilometer for bulky products like iron ore, coal, chemical, petroleum products ,cements etc

• Water transportation uses Ships.Two types of shipping service-

Liner (fixed schedule)

Tramp(not fixed)

WATER TRANSPORTATION CONTD…

CLASSIFICATION:-

• Inland waterways –rivers,canals,lakes

• Domestic coast ways

• Seaways

LINER CONFERENCE

• Group of two or more vessel operating carriers providing international liner service for carriage of cargo on defined routes within specified geographical limit on mutually agreed terms & conditions at common freight rates.

• Over 360 liners conferences working in world

• It has its own constitution & organization setup

• Freight rates determined by the committees

Advantages of Liner service

• Regularities of sailing to scheduled

• Uniform rates for all shippers

• Cover wide range of ports

• Sometimes give rebates based on loyalty agreements

• Stable freight rates

FREIGHT RATES FOR LINER CONFERENCE

• Conference rate system

• Loyalty agreements

Deferred payment system

The dual rate system

Immediate rebate system

Conference rate making

• Conference determine tariff with its rules & regulation.

• Rate fixation is based on characteristics, density,volume,distance, storage, DC & IDC , insurance charges etc

• Two other factors are competitiveness & economic viability of the proposition.

Loyalty agreements

• Some rebates offered on Freight rates determined by conference rate system for exclusive patronage of the conference members.

• Three rebate system are in practice

Contd….

• Deferred rate system- Given for shipper who utilizes the vessels of member lines of conference for carriage b/w ports receive certain %(~10% )for his freight payment.Rebate is computed for a period called shipment period but paid after deferred period on the condition that shipper has supported conference line during shipment &deferred period.

Contd…

• The dual rate system- Shippers who are exclusive patronage with conference get benefit of lower rate than others.

• Immediate rebate system –Given immediate rebate or cash(~9.5%)for their cargoes.

Tramp shipping

• Chartering of ships on an “ad hoc” or special purpose basis.

• Tramp ship operate in all parts of world without a fixed shipping route & sailing schedule.

• Ships are chartered either in voyage charter or time charter form or demise charter.

Contd…

• Voyage charter- ships are charted for specific voyage.eg 10000 ton iron from china to Japan.

• Time charter- ships charted for specified period of time. Charterer may employ ship in voyage acc. to his requirements.

• Demise charter- Normally opted by a ship owner bcoz he has to equips the ship with fuel, floating personnel & other necessities & operate the ship.

Mode of cargo shipments by ships

• General cargo• Containerization- It may be flat or collapsible or

open top or tank container or refrigerated or specific designed container.

• Tankers• Multi purpose vesselsLiner type vesselBoro vesselsBarge systemCombination container & RO/RO vessels

Procedure for booking of cargo by sea

• Goods forwarded by clearing & forwarding agent.

• Preparation of shipping bill.

• Pay export duty if any

• Obtain carting order from shipping company &carts down goods from godown to docks.

• Receiving of Mate’s Receipt by port authorities after shipper pays the port charges on the cargo.

• Move to shipping company,takes Bill of Lading,fillit & submit the Mate receipt.

Bill of lading

• It is the carrier’s receipt in ship transport.

• It is negotiable & contains- Name of ship, flag of nationality, shipper's name, no. of packages, description of goods, freight rates, net weight, order & notified party.

• B/L should be clean, any remark on Mate receipt should be indicated on B/L.

• It is prepared at port of shipment.

• It is prepared by shipping company.

Inland water transport

• Started in India in 1823 but gradually losing tariff over the years due to lack of clarity,lack of expertise,devlopment of waterways,lack of awareness about waterways.

• National transport policy committee then later declares some rivers as national waterways & develops viable policy.

• Advantage- mass movement of bulk material, low cost, large capabilities.

• Disadv.- suitable for specific items,not quicker transit

Pipe line movement

• Ideal for transporting large qty. of fluids over long distance.

• Also for solids in slurry forms iron ore,coal,limestone etc.

• Now a days best mode for petroleum products,gases,crude.

Advantages of pipe line

• Reliable,continuous,all weather means of transport

• Low cost due to low energy consumption

• Low maintenance &operating cost

• No space occupied

• Losses in transit minimum

• Safe method

• Traverse difficult terrain

• Economic

Disadvantage

• Not suitable for solids &heavy equipments.

• Initial cost of laying pipeline is very high

Ropeways transportation

• Connects two places with large difference in altitude easily

• Rate of rise or altitude gain within a horizontal distance is much higher

• Least damage to the ecology of region

• Capable of transporting bulk materials over short distances

• Ideal for hilly region

Advantages & disadvantage

Advantage-

Suitable for hilly & Inaccessible areas

Bulky items transportation

Short haulages(less than 50km)

Areas for which other transportation method uneconomic

Disadvantages

Heavy initial investment

Limitation as to size & qty.of haul.

ANY QUESTION ?

THANK YOU