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.
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:
The Shipping and Liner Services:
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:
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.
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.
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