TRANSPORTATION AND US

Nowadays, there were a new trade corridors between Asia and Africa and South America and within Asia will boost the global supply chains. With this event, the least developed countries may take their steps into the global marketplace.

To be the among of the successful country, first thing is we need to adapt with the changing the courier, express and parcel (CEP) where it may give you an opportunity to further your market. However, to be the best among the best on the long period of time, logistics service providers will need to observe the changing of customer demand perfectly and carefully so the product and services are in their optimum level.

To be among with the successful who's making the world need their product. The first thing is consolidation on industry, so it will help in accelerate and improve service level. Although the competition will be harsh but to achieve it, it need a huge sacrifice in reducing corruption and find a way to merging to form a new logistic system that can bring more profit.

Furthermore, we need to find a corridor that already open and can receive a new product or service. As examples, the important sales and supply markets evolve in which emerging and least developed countries play a major role. Such as, between Asia and Africa, Asia and South America as well as Intra-Asian. This corridor are less threat and save to do a business.

To improving our service or product, we need a fierce competition. With a competition we can find our weakness and with that we can reduce our loss. So to find a good competition, first we need to find a country that have a excellence port that can accept our product. As examples, from a 2008 of World Port ranking in Container traffic in 2008.

The benefit that we can have from a excellence port are the service are low on having a defects such as damage and have a high priority on maintaining the high quality on service and speed.

The last thing that we need to concern are our safety when we are on this business.  As examples, when we do a business with the Information and Communication Technology (ICT) system we need to secure our system from cyber attack or our business will ruin. As we know, the transportation and logistics industry already relies heavily on ICT. 

Virtual threats are the highest priority that we need to concern before it's too late. Any sabotage we need to find and make a solution as fast as possible. Another safety are the route that we need to use. With safety route the condition of our service and product may skies rocket.

TRADE DOCUMENTATION

There are several types of trade document that involve when making a transaction. For each document is different with another and have their own functions.. These document are importance for importers and exporters that is to ensure all activity during export and import.

Main purpose of trade documentations:

·         To fulfil the regulation

·         The most common reason.

·         E.g.: warranty. If the goods are broken and we don’t have a warranty we cannot claim anything.

·         Manage risk

·         Who will responsibility if something happen

·         Seller and buyer will know their responsibility

·         Common understanding

·         Need understand for the language in term of documentation

·         Easy to communicate

·         Record keeping

·         Important for the business audit at the end year

·         If there a something happen the company can refer within the documentation

There are several types of document:

·         Transportation document

·         Used for movement of the cargo from one point to another point. Required for deliver the goods.

·         Banking document

·         Invoice will be released by seller if buyer buys the goods on credit.

·         Commercial document

–         Happen between seller and buyer. E.g.: Quotation or pro forma invoice will sent by the seller to the buyer (price, delivery cost, insurance) and the buyers will reply with document purchase order (PO).

·         Government documents

·         Necessary to custom clearation. This document also not fulfil the government regulation. Ata carnet are needed for bring the goods that not intended for sale but only for the sample. No need to pay for tax. E.g.: food products.

There are a list of documents often used in international trade:

1.       Air Waybills

Closely related to the BL, a waybill does not convey title. It used to be mostly for air cargo, but ocean carriers are using it more. The document will submitted to shipper when the goods already in ship.

  

2.       Bill of Lading (B/L)

The most important document in the entire process, this is a document title, a receipt of goods, and a contract of carriage. Lorry will be in port for brought the container through agent. When the goods are fine the container can get in the boat and that is where the bill of lading occur. Signed by the agent to express goods already received on ship, contract of carriage for bring the goods to bill of charge.

Types Bill of Lading

·         Clear Bill of Lading -  if there is stain on the form, the form is not to be used again.

·         On board Bill of Lading -  it will sign when goods already in the ship.

·         Received- for-shipment Bill of Lading – already sign the document but goods no on the ship. Only be accepted by the carrier

·         Straight Bill of Lading – no change if the document are submitted to consignee. Goods will be accepted to nominee in the document

·         Forwarder’s Bill of Lading – This document released by forwarder. Acted as the middle man. Shipper can released the document but cannot revealed the goods.

3.       Certificate of Origin

A  certificate, typically provided by the government of the exporter, certifying the nationality of the cargo. Want to know the place of origin of goods. Can get tax exemption which is the document must released from the place of origin of goods to get a tax duty import and sales tax.

4.       Purchase order

The contract between buyer and seller includes the agreed form of sale.

5.       Pro forma Invoice

The starting point of the export contract is in the form of offer made ‘by the exporter to the foreign customer. The offer made by the exporter is in the form of a pro forma invoice. It is a quotation given as a reply to an inquiry. It normally forms the basic of all trade transactions. (will be charge when debt)

6.       Sanitry certificate

Usually use for the food shipments to certify that it is hygienic. It also was known as a phyto-sanitary certificate.

7.       Carnet

This is for the permission of sample goods to enter without paying duties for the regular cargo.

8.       Export Declaration

The form must be submit to the government by the exporter for provide a basic information about the cargo.

9.       Packing List

Has been shown on invoice or maybe via separately. Should contain item by item, the contents of cases or the containers of the shipment with its weight and description set of forth in such a manner as to permit checks of the contents by the customs on arrival at the port of destination as well as by recipient. (contain weight, description)

PORT PLAN TARIFF

Several major ports in Malaysia plan to increase port tariffs or it also introduced a new tariff items going forward. This is due to a number of tariff revision was long overdue for review. This step has been matched by investments made by them to expand Klang Authority. Port has decided that there is some new rate should be adopted in the first quarter of 2012 while they were waiting for approval from the Ministry of Transport.

The revision of tariffs on some items , including conventional cargo and marine services in Port Klang was inspired three years ago this is due in large part to the conventional tariff has not been revised for 45 years every day when Port Klang was administered by the Malayan Railway.

Terminal operators have been many times increase the charge to coordinate the investment charges. This is also the facilities and services including subsequent maintenance of the facilities has been requested, the construction of a new pier and also the purchase of new cargo handling equipment .

After some thorough examination has been made on the proposal by the operator and also by subsequent consultation with industry and consumers harbor, wharf handling, charges for conventional cargo handling and storage also increases.

"Tariffs for services will be slightly increased, while the Marine container handling will begin to see new charges for containers larger than 40 feet long" has been said.

It has also been reported in StarBiz on the issue months ago that Penang Port Sdn Bhd has introduced a new tariff plan for next year. Penang Port tariff was last revised in 2003 and implemented in 2007. This tariff which has seen a 30% increase in charges for cargo handling to review the current rate for a 20 foot container RM182 and RM273 for 40- foot containers.

A total of 80 % of the cargo handled at North Butterworth Container Terminal Port of Penang consists of a full container load cargo. This is also expected to generate a total of 75 % of revenue Penang Port this year, compared with about 65 % in 2010.

In addition, the port in Johor, that was been known as Johor Port and Port of Tanjung Pelepas ( PTP ) was also expected to introduce a new tariff . New port tariffs in Johor Port, have been effectively implemented since August 2011. Previous revision of the tariff in Johor Port was in 1987.

Port of exploring the Johor Port Authority on the possibility for them to introduce a new tariff has been fixed. The expected impact of the port users will be minimal in the past year. Port Klang, which comprises Northport and West Port that was been ranked 13th in the global ranking within a total og the container at 8.87 million twenty-foot equivalent units ( TEUs ).

PORT OF PRINCE RUPERT

Recently received the Prince Rupert Port another super cranes and expanded capabilities for Panamax vessels. Therefore, now at the port has four super cranes. 

The arrival of the fourth cranes intended for our container operations will continue to strive to improve our ability to quickly and efficiently in restoring container ship at Fairview Terminal. Said Mark Schepp which operates the terminal, if this happens, it could increase production to ship. Maher Terminals will give a commitment to customers and steamship lines Prince Rupert Harbour.

Actually this is because at Port of Vancouver and Prince Rupert needed to expand of their infrastructure which was directed by Canadian Federal, provincial, and private financing port in recent years. High commitment given by elected officials, government agencies and business leaders have increased the Canadian Asian imports. Part of the motivation is to increase the number of (high-paying) jobs and sustain the Canadian businesses which depend on trade. Achievements that have been achieved many Canadian and U.S. transport freight stakeholders are not happy with the achievement.

Washington State is home to the ports of Seattle, Tacoma, and Everett, the U.S. ports most vulnerable to losing market share to the British Columbia ports.

The Puget Sound ports have benefits that extend beyond their metro areas.

Seattle Port Commissioner John Creighton recently explained the importance of the Port of Seattle:

“The maritime industrial cluster in Seattle alone provides, directly and indirectly, over 60,000 family wage jobs and generates over $10 billion in annual revenue for our region (See the 2009 City of Seattle study). Industrial businesses in Seattle, which rely on the efficient movement of freight, account for 35% of the city’s tax base, paying for essential government services for its citizens.”

The Port of Tacoma is the oldest yet so it is still ahead of some strong growth but still interesting:

“The Port of Tacoma is an economic engine for South Puget Sound, with more than 43,000 family-wage jobs in Pierce County and 113,000 jobs across Washington state connected to Port activities. A major gateway to Asia and Alaska, the Port of Tacoma is among the largest container ports in North America. The Port is also a major center for bulk, breakbulk and project/heavy-lift cargoes, as well as automobiles and trucks.”

And the Port of Everett accounts for 34,997 total direct, induced and indirect jobs according to a 2011 study.  A total of $3.1 billion of total wages and salaries and local consumption expenditures are created in the local and regional economy by the activity at the Port of Everett.

Based on 2012 container figures, the Port of Prince Rupert has been recognized by the Journal of Commerce last month as having the second highest score in American productivity.

But this week, Port Metro Vancouver announced a $ 106 million expansion to increase security and help increase the exports to emerging markets to reduce the processing time.

The Port of Prince Rupert has been launched an environmental stewardship program in July.

Earlier this summer, Prince Rupert representatives recently visited Ketchikan, Alaska, to discuss business and trade opportunities.

GLOBAL TRANSPORTATION ISSUES

Nordic Orion  is the bulk carrier that was created history for earlier this month that was use Arctic Route. This bulk carrier was using the North West Passage as their transit trade lane when they want to transporting coal from the Vancouver in Canada to the Finland. They make the shorter transit than they use the Panamal Canal. 

This Nordic Orion was shipped of iron ore from the Norway to China via their Northern Sea Route. This ships was completed through dangerous Arctic Northwest Passage has make the potential for reduce time for shipment and reduce the global warming at their first time. MV Nordic Orion is the ice-class 1A ship with has the highest endurance with ice-class and one of the sail route for the ice filed waters. 

This ships was been built at Oshima Shipyard at Japan on 2011. This also the first Panamax bulk carrier on the Northern Sea Route and make the trip at Arctic. Using this route it only take one week rather than they use Panama Canal and will reduce cost of transportation. The Danish operator for the ship, Bulk Carrier Nordic was estimated  that the fuel can been save $80,000. When use this route it was 1,000 nautical miles was shorter than use Panamal Canal as their route.

When they was use the North West Passage can save the 7,000 kilometres, it also has the many benefit like can saving the salary, time, CO2 and fuel for their vessels.  It also can increase 25% load of cargo compared to the Panamal Canal. Nordic Orion has load the coal that they want to loaded at Vancouver terminal. 

This is a adventure for the new business challenge like Nordic Orion. This is the historic voyage was been a ambition and dream for them for the several of years. They was planned that their voyage has the close coordination with the Canadian Coast and Transport Canada to make sure that become a safe exucation.  

It also can bring the full capacity and add 15,000 tonnes of coal that was not use transport via Panamal Canal because Panama Canal has their depth limit the sizes of the cargo and ships. It take more average for ship to sail at North West Passage. This was the bigger challenge task that was include the good experience, higher world class ships and great navigational skills. Moreover, only the few vessels  can handle the task. 

Nordic Orion was been built and design to operate at what ever harder situation at Arctic. They was estimated that North West Passage will be open for the transit voyages for currently two months per year. It also was depend on the ice conditions and weather. This Nordic Orion was takes the historical step was make the proud tradition in the Nordic navigation.

They also was make the research with the expedition and fully of interest. This voyage was emphasized their quality, strength and their long of vessels in the maritime Nordic historic. They was feel very proud their pioneers was discover this voyage. This ship was been issued by the Arctic Pollution Prevention Certificate by the Transport Canada before they departure to ensure that the compliance with the Canadian regulations.

This is opening of the North West Passage has the advantages as a commercially trade lane to open the new opportunities for the important Arctic region and for the coal, shipping industries and minerals. The progress of the Nordic Orion track was been passes 96 hour time delay through the region.

It also has the very higher risk because maritime experts tell that the new route can make the lower fuel cost of transporting the bulky material such as a coal and also can expose the vessels being delay if they are iceberg blocked their path. It also has the higher risk and higher profit strategy. 

TOP BUSIEST PORT IN THE WORLD

Now period already change. In 19^th century the ports are not importance but now ports among the importance part for a nation. The factors why ports important for a nation is ports activities are directly impact on the economy and the importance of ports is on rise. Country that start give due importance to the development of ports. Activities that that happen in port help in facilitating external trade and internal market exchange. Ports also provide service to many industries and also contribute in economic and social development of the country. 

The are three criteria of port which is transshipment port, container port and port by cargo tonnage. Many factors that make one ports become a busiest ports there are efficient in customer service, state of the art facilities, easy business procedures, fair and mature legal system.. The completion between the ports is everyday getting more fierce day by day. There are several list of busiest ports of the world :

1. Shanghai Port, China

Shanghai port are the most active international trade hubs for over a century. Shanghai port located in the vicinity of shanghai, comprises a deep-sea port and rival port. Shanghai port also known as “the port on the sea". Shanghai port is the one largest and the busiest port in the world. China economic development was boosted by Shanghai port. The geographic location is the one factor of advantage for this port. Shanghai port face the East China Sea to the east and Hangzhou Bay to the south. With the developing economy, shanghai port has become an important hub for foreign trade. Shanghai port includes three major working zones , which is Yangshan deep water port , Huangpu River and Yangtze River. This port become the busiest port in term of cargo tonnage.  

For more information à www.portshanghai.com.cn

2. Singapore Port

Singapore port is the collective term for all its waterways, shipping facilities and service. Singapore port become second busiest port in term of total shipping tonnage. Singapore have opportunities to establish port for commercial trading. Singapore port was expand rapidly and becoming an important , military and commercial base for England. Even though Singapore not produce any oil Singapore is the third of busiest petrochemical refinery in the world. Singapore port was provided very excellent facilities which allow all range of business to flourish.

For more informationà www.singaporepsa.com

3 . Hong Kong Port

Hong Kong port is located at South China Sea is a deep water seaport and in the center of the fast-developing Asia-Pacific Basin. Hong Kong port is the one busiest port in term of three categories, that is shipping movement, cargo handle and passengers carried.  Hong Kong port dominated by trade in container manufactured products, and to a lesser raw material and passengers. Hong Kong port is the key factor in development of Hong Kong this because Hong Kong port provides a good access for vessels from over the world. One of the main qualities Hong Kong port that differentiates it from another port is efficient handles cargo operations and worth appreciating in the management of Hong Kong in term of mature legal system, open business environment and readily available financial support. 

For more informationà www.mardep.gov.hk

Top 20 Busiest Port in The World

TOP GLOBAL FREIGHT FORWARDERS

1. DHL Supply Chain & Global Forwarding 

    

DHL Supply Chain ( DSC) is by far the world's largest 3PL and contract logistician. Contract logistics revenues were 52% of its gross logistics revenues for 2011. Contract logistics revenues for Exel (DHL Supply Chain-Americas) are $4.1 billion with 456 warehouses and 111 million square feet of space. Exel/DHL has operations of virtually every kind on every continent.

2. Kuehne + Nagel

Kuehne + Nagel is one of the world's leading logistics companies providing logistics services from more than  1000 locations in over 100 countries. Its strong market position lies in the sea-freight, airfreight, contract logistics and overland businesses, with  a clear focus on providing IT-based integrated logistics solutions. With the addition of the ACR group, contract logistics operations more than doubled in 2006 and are 50% of net revenues. The industry breakdown for its contract logistics operations is : Retail 35%, Healthcare 22%, Technological/ Telecom 18%, Chemicals 7%, Automotive 6%, Fulfillment 5%, Misc. 5%, and Services 2%.

3. DB Schenker Logistics

DB Schenker made significant purchases from 2006 to 2008 to double the size of its operations. The purchases include  BAX  in 2006, Spain-Tir in 2007, and Romtrans in 2008. Romtrans was the largest forwarding company in Romania with $140 million in revenue and 1500 employees. Operations go as far east as Georgia. Spain-Tir had over 700 trucks and 16 million square feet of warehousing space covering the Iberian Peninsula. BAX added significant North America and Asia capacity.

4. Panalpina

Panalpina is one of the top 10 in the freight forwarder. Panalpina has handled more than 1.3 million TEUs per year, and more than 800000 tonnes of air cargo and nearly 1 million tonnes of non-containerized breakbulk cargo. Panalpina has 242 warehouse sub-contracts in 150 countries and profitable. The life blood of Panalpina is continued financial stability.

5. CEVA Logistics

CEVA logistics is one of the largest logistics companies in the world and has been the world's largest automotive 3PL. It is focused on manufacturing and to expand operations to other sectors. CEVA is the Automotive industry sector 28%, Consumer/Retail 23%, Technology 22%, industry 16%, energy by 6% and other 5%. CEVA has operated more than 170 countries.

6. Nippon Express

Nippon Express covers an area of Japan. Japan is the largest transportation companies and the operation Express Pelican is the largest package of operations in Japan. Almost 90% of revenue is from domestic Nippon Japan. International operations in freight forwarding and contract logistics base tied to Japan. Furthermore, Nippon provide port and ship transport, air freight and warehousing.

Nippon Express will continue to maintain and improve the quality at the international level, while encouraging the development of human resources and achievements are recognized in the world.