Box Logistics, Containerization, Ports and Shipping network: A Discussion on Global Supply Chain perspective

Introduction:

Cycle Inventory is the average inventory due to production, purchase and also shipping, containerization in lot sizes that are usually larger than those demanded by customers.

 

  Containerization:

Maritime import and export flows of general cargo are shipped by containers in most developed areas of this world. So far, 75% of the total cargo carried by containers.

Very big container career ships, such as cf. Emma Maersk: LOA 397m, beam 56.40 has more than 10,000 TEU capacity(official capacity 11,000TEU), but not technically too high range from the initial vessels. Economies of scale are followed as far as technically feasible. Distribution process in a large degree is made possible by containerization.

 Transshipment of containers:

The concept of transshipment include in a large sense include activities take place when the freight is not in circulation, such as warehousing in the form of distribution centers. These are based on the principle of ‘Just in Time’, while integrating velocity of freight with production, distribution and competitive supply chain strategies.

 

Containerization and Global Production:

 

Production, trade, and services activities are functionally integrated with the Global Production Networks. Stages in a commodity chain are included in it.Rather than relying on shipping and forwarding, GPN made many manufacturers think about global logistic strategies. So,beyond manufacturing, this includes governance and transportation. Value added services are found now to integrate with freight packages.   Production and distribution assets are repositioned within Global Supply Chains. The success of a GPN is largely determined by the performance of the logistic networks as they link production, distribution and consumption.

 

Container delivered by road

 

 

The Shipping and Liner Services:

 

Due to complexity in global supply chains and networks, managing liner services has become a quite complex endeavor. Using new device, faster and larger vessels and cooperation between shipping lines make it possible to improve productivity in shipping arena. The ports and hubs helping the ports to create a global grid of East-West, North-South, and other regional services. The Large ships or Mother Vessels on the East-West route will call mainly at transshipment hubs, where containers will be shifted to feeder subsystems serving North-South diagonal and regional routes. In such a system before reaching final port of discharge even four trans-shipments occur.

 

A few liner services are able to fully integrate the trade routes, such as Maersk Lines and MSC. Maersk Lines has services in the Far East, Europe and North America and some hubs notably Algeciras, Salalah and Tanjung Pelapas.MSC has relay services in these directions and has services in West Australia, Singapore, and Thailand route. In future also, there will be no ‘one size fits all’ approach for the liner services networks.

 

 

Schedule reliability issue:

 

Liner services usually can’t fully ensure schedule integrity. The main reason is port terminal congestion. A low berth and crane availability leads to liner service disruptions of shipping lines. Delay in one port cascades though out the whole liner service and affects other ports of call. In case of serious congestion time slots, do not work properly. Continuous high-level schedule unreliability in the longer term has adverse effects on the whole logistic system and also on global production and consumption networks.

 

Re-positioning issues:

The re-position issues  of empty containers are one of the most complex problems, which are related with global freight distribution. Trade imbalance, container manufacturing cost, leasing costs, and usage preferences are the major reason for this problem.

 

 The Regions and ports:

Port hinterland relations are important in port development. Access to cargo bases of the port in the hinterland is developed in this way. An important driver for the creation of regional load center networks and logistic poles are related requirements of global supply chains. Environmental constraints and local opposition to port development are also important issues for developing the port region.

 

 

Conclusion:

Freight transportation is a very costly and volatile component of the Supply Chain and logistic operations. Managers and governments have to deal with delays in the transport system, rising oil prices, global supply chain security issues, labor  and equipment shortage and trade imbalances.

 

 Bengali Version:
Hi , you can read the Bengali version of this article in the below-mentioned link:

http://www.slideshare.net/ikramhridinuha/box-logistics-bengali


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3 comments for “Box Logistics, Containerization, Ports and Shipping network: A Discussion on Global Supply Chain perspective

  1. November 29, 2014 at 10:36 AM

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  3. August 7, 2015 at 10:04 AM

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