This document discusses sea and air logistics. It defines logistics as planning, implementing, and controlling the flow of goods, services, and information from origin to consumption according to customer needs. It describes key modes of transport including air, sea, road, rail, and pipelines. It provides details on air logistics such as items transported, international air cargo market trends in India, and future plans to invest in Indian airport infrastructure and cargo carriers. For sea logistics, it discusses liner conferences, tramp shipping, types of cargo shipments, and bills of lading. It also outlines major Indian ports and future investment plans for ports like Kolkata to improve infrastructure and capacity.

1. SEA & AIR LOGISTICS
SUBMITTED BY:-
MOLOY RANJAN ROY
13MT07IND004

2. DEFINATION
LOGISTICS …………IS “THE
PROCESS
OF PLANNING IMPLEMENTING AND
CONTROLLING THE EFFECTIVE
AND EFFICIENT FLOW AND
STORAGE OF GOODS, SERVICES
AND RELATED
INFORMATION FROM THE POINT
OF ORIGIN TO THE
POINT OF CONSUMPTION FOR THE
PURPOSE OF CONFORMING
TO CUSTOMER REQUIREMEN.

3. MODES OF LOGISTICS
AIR
SEA
ROAD
RAILWAYS
Other transportation
system such as
Ropeways,
pipe line etc.

4. AIR LOGISTICS SYSTEM
 Used wherever fast delivery required
 IATA acts as medium fixing the tariff for
airlines
 Constituents of IATA rate structure-
General cargo rates (GCR)
Specific commodity rates(SCR)
Freight all kind rates(FAK)
Govt. Mandatory rates

5. Items transported by air
 High value products
 Perishable products
e.g. short shelf life as cheery,
strawberries.
 Emergency products
e.g. medical & spare parts for machinery
 Live animals
e.g. race horses
 Fashion items
e.g. short sales life items

6. INTERNATIONAL AIR CARGO
The size of the world air cargo market is
estimated at 27million tonnes valued at
$200 billion.
India accounts for meagre 3% of the global
air cargo market
As per an expert estimate, Indian air cargo
industry is going to be double by the year
2020
Major International cargo airports-Mumbai,
Chennai, Bangalore, kolkata, Trichy, Hyderabad,
Delhi, Coimbatore, Cochin.

7. DOMESTIC AIR CARGO
 Cargo-garments, machinery,
components,
pharmaceuticals, dyes,
chemicals and perishables
[fruit, vegetables, flowers,
fish and meat].
 Major domestic cargo
airports –
Ahmadabad, Goa, Luck now,
Visakhapatnam, Madurai in
addition to the above.
 25 non-metro airports
identified by
the Airports Authority of
India for
further development

8. INDIAN FUTURE PLAN FOR AIR
LOGISTICS
• Investments of USD 5.07 billion
over next 5 years in Indian Airport
Infrastructure.
•Blue-Dart, the only dedicated freight
carrier in domestic sector.
•Air India plans to increase cargo
revenue from current 10% to 15-
20% in 3yrs.
•Jet Air, Go Air, Kingfisher Airlines
charting out plans to play bigger role
in Indian domestic air cargo.
•International Airlines-Cathay Pacific
and BA increasing cargo capacity to
and from India.

9. Multi-modal International Cargo Hub and Airport at
Nagpur
 Multi-modal International
Cargo Hub and Airport at
Nagpur (MIHAN) is an airport
project for Dr. Babasaheb
Ambedkar International
Airport, Nagpur.

10. Case study for future plan air logistics
The Government of Maharashtra formed a special purpose entity in the
name of Maharashtra Airport Development Company (MADC) for
development of MIHAN.
The project is financed by multiple Indian banks with total loan amount
of INR 3,000 million .
The projected target of serving 14 million passengers and handle 0.87
million tones of cargo.
 The estimated capital cost of the project is INR 2581 crores (by year
2035) and is supposed to generate revenues INR 5280 crores.
 The project consists of widening and extending the present runway
(3200 meters × 45 meters) to (3600 meters × 45 meters) to meet
international standards.
Also it will have provision for a similar runway (4000 × 60 m) in the
future.
The airport will have parking space for 50 aircraft at any time with 50
additional bays at fringe areas.
 An airport terminal building in semi-circular shape with conductive
weather dynamics will have total area of 3,000,000 sq ft (280,000 m2).
Project is also building a separate cargo complex for handling and
transferring cargo to-and-fro from airport.

11. Advantage & disadvantages
ADVANTAGES
 Faster
 Broad service range
 Increasing capabilities
Disadvantage
 High cost
 Weather condition affect flights
 Limitation for heavy products

12. SEA LOGISTICS
 Used for low value to weight ratio products as timber
 Offers less cost per ton kilometer for bulky products
like iron ore, coal, chemical, petroleum products
,cements etc
 Water transportation uses Ships.Two types of
shipping service-
 Liner (fixed schedule)
 Tramp(not fixed)

13. LINER CONFERENCE
 Group of two or more vessel operating
carriers providing international liner service
for carriage of cargo on defined routes within
specified geographical limit on mutually
agreed terms & conditions at common freight
rates.
 Over 360 liners conferences working in world
 It has its own constitution & organization
setup
 Freight rates determined by the committees

14. Advantages of Liner service
 Regularities of sailing to scheduled
 Uniform rates for all shippers
 Cover wide range of ports
 Sometimes give rebates based on loyalty
agreements
 Stable freight rates

15. FREIGHT RATES FOR LINER CONFERENCE
1.Conference rate system
2.Loyalty agreements
 Conference rate system
 Conference determine tariff with its rules &
regulation.
 Rate fixation is based on characteristics,
density,volume,distance, storage, insurance
charges etc

16. Loyalty agreements
 Some rebates offered on Freight rates determined by
conference rate system for exclusive patronage of
the conference members.
 Three rebate system are in practice:
1.Deferred rate system- Given for shipper who utilizes
the vessels of member lines of conference for
carriage b/w ports receive certain %(~10% )for his
freight payment.Rebate is computed for a period
called shipment period but paid after deferred period
on the condition that shipper has supported
conference line during shipment &deferred period.
2.The dual rate system- Shippers who are exclusive
patronage with conference get benefit of lower rate
than others.
3.Immediate rebate system –Given immediate rebate
or cash(~9.5%)for their cargoes.

17. Tramp shipping
 Chartering of ships on an “ad hoc” or special
purpose basis.
 Tramp ship operate in all parts of world
without a fixed shipping route & sailing
schedule.
 Ships are chartered either in voyage charter
or time charter form or demise charter.

18. Contd…
 Voyage charter- ships are charted for specific
voyage.eg 10000 ton iron from china to
Japan.
 Time charter- ships charted for specified
period of time. Charterer may employ ship in
voyage acc. to his requirements.
 Demise charter- Normally opted by a ship
owner bcoz he has to equips the ship with
fuel, floating personnel & other necessities &
operate the ship.

19. Mode of cargo shipments by ships
General cargo
Containerization- It may be flat
or collapsible or open top or
tank container or refrigerated or
specific designed container.
Tankers

20. Sea logistics
Advantage-
 mass movement of bulk material,
 low cost,
 large capabilities.
Disadv.-
 Suitable for specific items,
 Not quicker transit

21. Bill of lading
 It is the carrier’s receipt in ship transport.
 It is negotiable & contains- Name of ship, flag
of nationality, shipper's name, no. of
packages, description of goods, freight rates,
net weight, order & notified party.
 B/L should be clean, any remark on Mate
receipt should be indicated on B/L.
 It is prepared at port of shipment.
 It is prepared by shipping company.

22. Bill of lading format

23. INDIAN SEA LOGISTICS
•India now has the largest
merchant shipping fleet among
the developing countries
•India ranks 17thin the world in
shipping tonnage.
•Indian share of maritime
transport services is 1% of world
market.
•The container traffic has
registered an impressive growth
of 15 per cent over the last five
years.

24. INDIAN PORTS
Vast coastline of 7,517 kms
12 major ports and 184 other ports
(minor and intermediate)
95% of Foreign trade by volume &
75% by value.
Tonnage handled increased 16 fold
(in last 50 years) to 453 million Tonnes
Port- Hinterland connectivity- a major issue

25. Future Investments Profile of Kolkata Port
 A well diversified investment programme, costing around Rs.1400 crore, aimed at
improvement of infrastructure / capacity augmentation to be funded through internal
resources of the Port/Grant-in-Aid by Government of India
1. Public Private Participation in Port Infrastructure
2.Transloading facilities at Sandheads and its vicinity for
midstream handling of Dry Bulk cargo
3.Development of berth facilities at Haldia Dock II
(Salukkhali)
There is a need for expansion of Haldia Dock Complex at
an alternative location on the west bank of river to cater
to a higher volume of traffic, primarily, coal, coking coal
and iron ore. In this context, development of Haldia Dock
� II in the west bank at Salukkhali / Rupnarayanchak was
envisaged where the land connectivity is conducive to
cargo handling operation. Possession of entire 163 acres
of land from State Govt. has been obtained while land for
providing railway connectivity is expected to be received
from Haldia Development Authority (HDA)/Govt. of West
Bengal shortly.

26. Diamond Harbour Container Terminal
The project site, around 50 km south of KoPT by road, is envisaged at an
indicative cost of around Rs. 1530 crore. The first phase of the project will
comprise 900 mtrs. quay length with a design capacity of 1.2 million TEUs, for
handling two container ships at a time. Projected container traffic is one million
TEUs i.e, 100% rise in container handling is envisaged with the setting up of this
container terminal, , some land will be available through reclamation. Revised
RFQ for this project has already been published and application due date is
6.2.2013.
 Sagar Project for handling Dry Bulk Cargo and
Containers at Sagar Island.
For establishing port facilities at Sagar Island including rail-road
connectivity and construction of a rail-cum-road bridge over Muriganga,
a feasibility study was entrusted to M/s. RITES Ltd. who have since
submitted final report on 31.07.12. The feasibility report highlighted
that setting up of a port facility at Sagar Island for handling 13.5m
drafted vessel at a cost of Rs. 7851 crore is a viable proposition for
handling 54 MMTPA traffic in 2019-20 which will gradually rise to 127.8
MMTPA in 2036-37. In terms of a high level meeting held recently at
Kolkata and subsequent site visit, M/s. RITES have already made
necessary changes in the final report including the cost estimate as
well as implementation schedule and economic analysis.

27. THANK YOU