Shipping In Logistics And Supply Chain


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From a Logistics and Supply Chain Managers Perspective

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Shipping In Logistics And Supply Chain

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