Shipping In Logistics And Supply Chain
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Shipping In Logistics And Supply Chain



From a Logistics and Supply Chain Managers Perspective

From a Logistics and Supply Chain Managers Perspective



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Shipping In Logistics And Supply Chain Shipping In Logistics And Supply Chain Presentation Transcript

  • Shipping – A Cog in the Logistics and Supply Chain Wheel
    Capt. Srinivas Venkatesh M.I.C.S
    Business Student
    SP Jain Center Of Mangement Singapore
  • History
    Phonecian Merchants of the Mediterranean
    Steam propulsion and use of Iron in shipbuilding
    Opening of the Suez Canal in 1869
    Importance of Sea Trade
    - Accounts for carriage of 90% of world trade
    • Life Blood of Global Economy
    • Variety of Products Transported daily
    • A service that runs 24X7 round the year
    • Various types and sizes of vessels deployed
    Introduction to the World of Merchant Shipping
  • First Merchant Vessel – A combination of logs dates back to more than 15000 years
    Largest Tanker – ULCC Knock Nevis previously called Jahre Viking 459m long
    Largest bulk carrier afloat – 3,65,000 DWT
    Largest Container Ship – Emma Maersk 396.85 m/15000TEU/31 knots sea speed
    Cost of building a ULCS – 145 million USD
    Some Interesting Facts
  • Shipping as a Derived Demand
    50000 merchant vessels deployed
    Market is cyclical in nature
    Volatility in Freight rate seen often
    Demand and Supply
    Economics of Sea Trade
  • Where the ships ply
  • Importance of Dry & Wet Trade
    Tanker Trade
    - Carriage of a variety of oil products/chemicals/gasses
    - Major exporters- Middle East, North Sea, South America, West Africa
    Liner Trade
    - Carry manufactured goods through scheduled liner services
    - Leading terminal operators – PSA, DP World, APM Terminals
    Bulk Trade
    - Carry raw materials and bulk commodities – Iron ore, Steel
    General Cargo Trade – A thing of the past; being replaced by containerization
    Types of Shipping Trade
  • The mission of Logistics Management
    - Planning and coordination
    - Required Service levels at lowest possible cost
    - Ensuring economies of scale are achieved
    during bulk transportation
    The Role of 3 PL’s
    • Expertise in providing logistics solutions to
    - Multimodal Transportation
    - Networking with service providers
    Shipping in the Logistics Domain
  • Supply Chain processes
    Sourcing of raw materials
    Distribution of finished products
    Pipeline Visibility – Customers perspective
    Enhancing the value chain by better coordination
    Two sides of a coin- The Operators view
    Shipping as an Element of the Supply Chain
  • Recessionary Trends
    Limitations of Sea Transport
    Optimizing space utilization
    Reducing fleet size and reducing excess tonnage
    Planning of fleet deployment by forecasting
    Understanding customer demand and ability to use resources efficiently
    Business Challenges facing the Industry
  • Transportation decisions
    Choosing the right mix
    Availing discounts on bulk movements
    Learning to make choices in difficult situations
    Network Optimization
    Using Ocean Transport in conjunction with other modes
    Understanding Limitations of Sea Transport
    From a Logistics and Supply Chain Manager’s perspective
  • Logistics Infrastructure to match growth
    Globalization – Logistics trends worldwide
    Oil movements – Refining capacities
    Drop in container trade globally
    Forecasts for trade recovery
    Oversupply expected due to orders for new buildings in shipyards
    Reducing the tonnage seen as the only alternative to reduce the imbalance
    Future of the Industry