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 ).