Logistics, Trade Administration and Supply Chain

Wishing all my friends, colleagues, customers, vendors and readers a Merry Christmas and Happy New Year.

Lighters are small boats that can be stowed on board ocean vessels. Lighters are useful at ports where the draft is too shallow for ocean vessels to berth alongside. Cargo are firstly loaded onto the lighters which are then towed to the ship's side. The lighthers are then lifted onboard the ship using the ship's crane. At the discharge port, the lighters are lifted overboard using the ship's crane. The lighters are then towed to alongside the port. The super heavylift ships are conventional vessel fitted with derricks that are capable of lifting heavy cargo such as machineries, equipments, electrical installations, tractors, etc. . Barges are small boats that can navigate up rivers. They are usually utilised for the following: Ferrying cargo to and from ships that cannot berth alongside port due to shallow draft. Transporting cargo to and from inland areas lying near the rivers. Transporting food and supplies to offshore installations such as oil drills.

Dry bulk carriers are conventional vessels with large unobstructed cargo holds for transporting bulk cargo such as grains, sugar, coal, ores, etc. The cargo holds have large hatchways to facilitate loading of cargo conveyor belts and suction pumps. Gas carriers are specialised vessels used for transportation of natural gas. They are commonly referred to as LNGs or in full name, Liquefied Natural Gas carriers due to their close association with the product that they carry. Gas carriers are usually operated under time charters.

Ro/Ro ships were developed after World War Two and is frequently termed as a "vehicle ferry". It was designed for the conference of road vehicles. At such terminal, a ramp is provided for vehicles to be driven on to or out of the vessel. This eliminates carnage and permits a quick turn-around for the vessel. Tankers are specialised vessel designed to carry bulk liquid cargo such as chemicals, oils, latex and petroleum products. Some of the largest ships in the world are crude oil tankers. These are very large crude oil carriers (VLCC) with capacities exceeding 350,000 deadweight tons. Tankers are usually operated under voyage or time charters. However, some oil companies do own tankers for transporting their own products.

These ships are designed to carry general cargo and are usually operated by liner operators. Their capacities varies from 200 deadweight tons for the coastal trade to more than 20,000 deadweight tons for the deep sea trades. The smaller ships are usually constructed with two cargo holds while the larger ones have four to six cargo holds. The holds are divided with between decks for stowing the wide assortment of general cargo carried by the cargo liners. The ships are fifted with their on derricks or cranes, including jumbo derrick for heavylifts, to facilitate the loading and discharging of cargoes. Most of these type of ships are fitted with refrigerated rooms for storing perishable cargo and deep tanks for tanks for carrying bulk liquids such as latex and oils.

This container is designed to carry liquids such as spirits, latex, oil and chemicals. The tank is made of stainless steel and is suspended within the framework of a general purpose container. It has a filling port fitted centrally at the top of the tank and a discharge pipe at the bottom rear end of the tank. Hangertainers This container is similar to the general purpose container except that its interior is fitted with facilities designed to transport hanging garments.

Of the same construction as the General Purpose Containers except for the inclusion of full length ventilation gallaries sited along the top and bottom side rails. Primarily designed to transport commodities such as coffee beans, coco beans, etc.

These container have a fixed roof, open sides and end opening doors. The sides are closed by full height gates and covered with nylon reinforcement PVC curtains. It is designed to accommodate carriage of commodities such as plywoods.

This container is designed to carry cargoes that are over-width and over-height i.e. cargoes that cannot be stowed in general purpose and open top containers. Example is heavy and large machinery.

This container with its top loading facility is designed for the carriage of heavy and awkward cargo such as machineries. It is also used to carry over height cargo which cannot be stowed in a general purpose container.

This container is fitted with its own refrigeration unit which required electrical power supply for operation. Each container is capable of being set at its own individual temperature to suit the requirement of the cargo carried. Mainly used for carriage of frozen cargo such as seafood, meat, fruits, other food ingredients, etc.

This container is insulated against heat loss or gain and is used in conjunction with a blown air refrigeration system. It is designed to transport perishable cargo that needs to be carried under temperature control. This container may also be used to carry general cargo but its internal dimension will be less than that of a General Purpose container.

This close container is suitable for the carriage for all types of general cargoes such as manufactured goods, rubber, liquids in drums, etc. The containers are basically a steel framework with steel clading and timber-lined floors. Access for loading and unloading is through full width doors at one end. Dry Bulk Container This container is designed for carriage of dry powders and granular substances in bulk. It has three secular hatches (approximately 50 cm in diameter) fitted in the roof of the container to facilitate top loading. Full width doors are also fitted at on end to allow loading of general cargo.

The port or terminal is where the ships berth to load and unload cargoes. Therefore it is vital that the port is equipped adequately to ensure that the shipping operations are performed effeciently. The effeciency of a port is a vital factor for consideration by shipping line when deciding on whether its vessels should serve the port directly or otherwise. The port terminal operator is responsible for: Providing storage space for cargoes and containers; Guiding ships into and out of the port safely; Receiving cargoes and containers from shippers for exports; Delivering imported cargoes and containers to consignees; Loading and unloading goods and containers onto and from ships. The Stevedores The Stevedores are responsible for the planning of stowage and for loading and unloading of cargoes. Stevedores are mainly required for the operations of conventional vessels. For container vessels, the ship planner is responsible for the planning of container stowage on the vessel whilst the CFS

The Penang Port Commission (PPC) will hold a seminar on Nov 17 to help local logistics players better understand the impact of liberalisation of services when the Asean Free Trade Agreement takes effect next year. PPC chairman CL Tan said the seminar entitled ‘Asean Framework Agree-ment on Services (AFAS) – Logistic Sector’ is aimed at helping local logistics players compete with their counterparts in the region. “It is important to equip these players with first-hand knowledge and help them explore new opportunities within the region. “If we fail to do so, it may lead to numerous shortfalls in our local services sectors,” she said at a press conference in George Town on Friday. More than 100 participants are expected to take part in the seminar to be held at Gurney Hotel. The speaker of the seminar is Mohamad Shahabar Abdul Kareem, a senior director of the services development division of the International Trade and Industry Ministry (Miti). Tan said when the Asean Free Trade Agreemen

These are also called cellular vessels and are purpose-built to carry containers. Container ships are commonly categorised by their TEU (Twenty Foot Equivalent Units) capacity. Those with capacity up to 3,000 TEUs are of the Panamax size with beams suitable for passage through the Panama canal. Those with capacities exceeding 3,000 TEUs come under the post Panamax category and are commonly termed the "fourth generations" and above.

These are basically conventional breakbulk vessels but also fitted with stowage facility on deck for carrying containers onboard. They are usually operated on routes that serve ports which do not have container handling facilities. The ship's derricks are utilised to load and unload the containers.

These ships are designed to carry general cargo and are usually operate by cargo liners. Their capacities varies from 200 dead weight tons for a coastal trade to more than 20,000 dead weight tons for the deep sea trades. The smaller ships are usually constructed with two cargo holds while the larger ones have four to six cargo holds. The cargo holds are divided with tween decks to cater for the wide assortment of general cargo carried by cargo liners. The holds are covered with hatches that can open wide to facilitate the loading and unloading of cargo including a jumbo derrick for lifting heavy weight cargoes. Most of perishable cargo and deep tanks for carrying bulk liquids such as latex and oils.

When a shipper has a large quantity of cargo especially bulk cargo such as coal, grain, ore and timber, he may wish to charter a ship suitable in size to transport the cargo to his buyer. This form of transportation is covered by a contract of affreightment called a Charter Party. There are basically two types of Charter Parties: Demise Charter Party A demise or "bareboat" charter party is one where the chaterer is responsible for providing the cargo and the crew whilst the shipowner merely provides the vessel. In effect, the chartered appoints the crew, this taking over the full responsibility for the operation of the vessel. A demise charter party for a period of time which may vary from a few weeks to several years. Non-Demise Charter Party A non-demise charter party is a contract where the shipowner provides the vessel and her crew whilst the charter merely supplies the cargo. There are two types of non-demise charter parties: Voyage Charter Party - It is an agreement for

The status of a NVOCC is similar to a carrier except that it does not own and operate such vessels. The NVOCC acts as a middleman between shippers and carriers. The NVOCC plays the role of a principal when dealing with shippers but act as a shipper when dealing with the carrier. A NVOCC's functions include booking space with shipping companies, providing documentation services to shippers, coordinating with suppliers, shippers and the shipping lines to ensure smooth delivery of cargo to and from the port and arranging customs clearance of the cargo. The services of a NVOCC is most desired when a shipper wish to ship only a small quantity of cargo which is insufficient for a full container load (FCL). The NVOCC will consolidate all such small quantities in a full container load for shipment.

These are vessels specially designed to carry a particular commodity. Examples of such vessels are ore carriers, sugar carriers, chemical tankers, crude oil tankers. Specialised vessels are usually operating under carter parties. However, some of the oil tankers are actually owned and operated by companies.

A tramp service does not operate on a fixed sailing schedule but merely trades in all parts of the world in search of cargo. A tramp usually carries bulk cargoes in full shiploads, examples are coal, grain, timber, sugar, ores, copra, fertilisers, etc. Many of these cargoes are seasonal. In view of its nature of trade, tramp vessels are usually unspecialised conventional vessel with two to six cargo holds and built with large unobstructive hatches to facilitate conveyance of bulk cargo. Tramp companies are much smaller than their counterparts and their business demands an intimate knowledge of market conditions.

Non-Conference Lines operate independently on its own tariff as well as terms and conditions. They are commonly called "independents" in the shipping industry. Some independent lines also team up to form consortiums to increase their participation in trade routes, increase their sailing frequency and geographical coverage to meet the demands of the shipping industry.

A Liner Conference can be defined as "a group of two or more vessel operating carriers which provide internationa liner services for the carriage of cargo on a particular route or routes within specific geographical limits and which has an agreement or arrangement within the framework of which they operate under uniform or common freight rates and any other agreed conditions with respect to the provisions of the liner services". There are two types of shipping conferences, namely the Open Conferences and the Closed Conferences. Open Conferences All conferences operating to and from the United States are "open conferences". An open conference practically has to accept any shipping lines that applies for membership in accordance to with the United States legislation. The interpretation of US Anti-Trust Laws in the context of shipping conference forms the basis of structure "open" conferences. Closed Conferences Most European based shipping conferences are &q

A liner service is one which provides vessels that ply on fixed routes on a regular schedule between groups of ports. Liner services offer cargo space to all shippers who require them. They shall sail on schedule dates, irrespective of whether they are full or not. It is this regular scheduled service that defines a liner service. Hence, it is vitally important for the shipowner to ensure that his ships keep to the scheduled arrival and sailing dates, or else the reputation of the service will then decline. In order to maintain a regular service and to cover a wide range of ports, liner operations usually involves an adequately sizeable fleet and a fairly large on shore establishment. Some liner operators joined up together by pooling their ships to establish a consortium. The enlarged fleet of ships will enable the consortium to increase its service frequency and expand its geographical coverage. Prior to the introduction of containers, cargo liners comprised mainly on conventional or

The Festival of Lights, better known as Deepavali or Diwali, is a public holiday here in Malaysia and is celebrated by the Hindu Community. This festival is celebrated with joy, excitement, bright lights and an even brighter smile! During the wait for the arrival of this festival, homes of the Hindu community is light up with the traditional 'vilakku' which are oil lamps made out of clay, colourful light bulbs and the decorative designs of 'kolam' which are decorated out of coloured rice or beans into fascinating patterns of flowers. Happy Deepavali to all my Hindu friends and colleagues!

Government policies Development of ports, transhipments points, distripacks, inland depots. Legislations e.g. tax exemptions, incentives for shipowners, shippers, cabotage law. Commodities Changes in type of commodities exported due to industrialisation i.e. exporting more manufactured goods and less primary products.Changes in trading partners i.e. exporting manufactured goods to third world developing countries instead of relying on exports of primary products to advanced/developed countries. Changes in modes of shipment i.e. manufactured goods are mainly shipped in unitised packages rather than in bulk form. Hence, containers are increasingly being used. The Shipping Line The shipping line owns or charter ships which are used to offer space for the carriage of cargoes between sea ports in return for a consideration called freight. The type of vessel owned or chartered by shipping line depends on the type of service, tramp service or tanker service. Some shipping lines operate a comb

Business transaction arise from the demand for goods. Goods needed at a certain place are not neccessarily produces at the same place. Thus there is a need to transport the goods from the place of production to the place of consumption. The intensity of the need for transportation services depends on the strength of the demand of the goods and the availability of supply. Indeed, it is this need that shapes and decides the role as well as the future of shipping industry. It has been said that as much as 90 percent of the total international trade are transported by sea. Hence, the shipping industry has a vital role to play in international trade.