The document discusses distribution channels in supply chain management. It defines distribution as moving goods from one business to another, such as from a factory to a supplier or retailer to an end customer. Each element in the distribution chain has specific needs that must be considered. The costs of using intermediaries to achieve wider distribution are lower than distributing directly to consumers. Effective management of the distribution pipeline can enhance customer service while reducing costs. The document then provides an overview of the international shipping industry, its role in transporting 90% of global trade, and its global regulatory bodies. It also summarizes the objectives, scope, limitations, and a literature review on logistics and supply chain management conducted by Mr. Harpreet Singh of

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1. INTRODUCTION
Distribution is a very important component of Logistics & Supply chain management.
Distribution in supply chain management refers to the distribution of a good from one
business to another. It can be factory to supplier, supplier to retailer, or retailer to end
customer. It is defined as a chain of intermediaries, each passing the product down the
chain to the next organization, before it finally reaches the consumer or end-user. This
process is known as the 'distribution chain' or the 'channel.' Each of the elements in these
chains will have their own specific needs, which the producer must take into account,
along with those of the all-important end-user.
The channel decision is very important. In theory at least, there is a form of trade-off: the
cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed,
most consumer goods manufacturers could never justify the cost of selling direct to their
consumers, except by mail order. Many suppliers seem to assume that once their product
has been sold into the channel, into the beginning of the distribution chain, their job is
finished. Yet that distribution chain is merely assuming a part of the supplier's
responsibility; and, if they have any aspirations to be market-oriented, their job should
really be extended to managing all the processes involved in that chain, until the product
or service arrives with the end-user. There has been a growing recognition that it is
through logistics and supply chain management that the twin goals of cost reduction ans
service enhancement can be achieved. Better management of the pipeline means that
customers are served more effectively and yet the costs of providing that service is
reduced.

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1.1 Industry profile
The international shipping industry is responsible for the operation of merchant ships which
transport goods and passengers by sea. ICS and ISF represent shipowners and ship
management companies that operate merchant ships.
The shipping industry is responsible for transporting 90% of the world's trade. The safety
record of shipping is the envy of shore-based transport sectors and is by far the most
environmentally friendly form of transport. The 40,000 ships that comprise the international
trading fleet are technically sophisticated, high value assets and the operation of merchant
ships generates an estimated annual income of over US $200 billion in freight rates within the
global economy.
The shipping industry is a truly global community. It is intrinsically international; indeed it was
the very first global industry. Because of the international nature of shipping it is regulated by
United Nations agencies and the International Maritime Organization (which is based in
London) in particular. Modern shipping involves companies from every nation on the planet
and virtually every nationality is represented in the seafaring population and the industry's
shore-based workforce.
There are other closely inter-related sectors of the shipping industry not directly covered by
this site. These include: liner agents, chartering brokers, port agents, sale and purchase brokers,
maritime insurers and ship surveyors, as well as import/export brokers and a wide range of
ancillary industries.

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1.2 COMPANY PROFILE
Marine hub enterprises is renowned for its domain expertise and efficient ocean freight
forwarding in logistics. Even though it was started in the year of 2010, it gained its grounds from
a group of people who’ve got 10 yrs and plus experience in logistics .Which majorly includes
custom clearance, Freight forwarding, break bulks, and project cargos services. Marine Hub
Enterprises has its operation in Chennai, Tuticorin, Singapore. We provide flexible logistics
services from planning to all the way delivery of goods. All our solutions are developed
internally, including customs brokerage, air cargo, ocean cargo, domestic services, risk
management, distribution, security, import and export compliance. This comprehensive, flexible
spectrum of services is supported by information technology to provide a high level of inventory
visibility and track and trace capabilities. The Company is on course for further expansion, the
company is continuously extending its network.
MISSION
Enhance through operational excellence, customer satisfaction and loyalty, created by
professionalism, global vision and financial strength of the organization.
VISION
“To develop into a global service provider of integrated logistics that provides excellent
customer-centric logistic solutions.”

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BUSINESS
CUSTOM CLEARANCE
With the current emphasis on free trade agreements and global sourcing, Customs issues have
assumed an increasingly important role in the supply chain. Our global Customs services focus
on the compliance, release, and reporting needs of the marketplace, which we refer to as the
“Customs value stream.
FREIGHT FORWARDING
We provide unique, reliable and impressive freight forwarding services to our clients. We offer
services at cost effective taking care of complete documentation for custom clearance. Our
agents provide safe, and timely delivery of consignments. We are capable of handling delicate
and sensitive shipments.

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PROJECT HANDLING
We provide complete solutions, we do pre-moving plan, customs formalities, dismantling,
planning over dimension cargos, shipping and delivery to destination.
PROJECT CARGO SERVICES
We provide specialized cargo transportation services to shippers of heavy and over dimensional
equipment and integrated logistics management for all sectors.
We are global network encompass with needed experience and capabilities for heavy life,
oversized shipments and other challenges that are encountered when dealing within the
execution. Our complex requirements encompass to create and implement effective solutions like
early projection of transportation cost with on site planning with the customers.

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CONTAINER TRADING & LEASING
We provide both buying and selling of containers. If required, we can arrange for delivery to any
location.
We do provide fabricated containers on lease for short or long term for rentals.
SHIP BROKING SERVICES
Ship broking and Chartering is an important part of the business and has been a rapidly
developing, being active agents for years we have considerably extended the range of services.
We have close relationship with leading ship-owners, operators, traders and co-brokers
throughout the world. We have strong relationship with Indian shippers & consignees, which
ensures cargoes for our principals directly on guided terms & conditions. We deal bulk and
general cargo.

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LOGISTICS CONSULTANCY
We use best logistics solutions at all times and therefore you can be sure that we will deliver the
right logistics & supply chain solutions for your business.
HEAVY MACHINERY ERECTION
We have experience and expertise team for more than a decade and has capability in human and
hardware resources and experience to provide reliable services for project cargos.
We have technical team supported by its fleet of specialized equipment is known for their skill in
plant erection and positioning of Heavy Machinery, Large Storage Tanks, Reactors and
Transformers. We have earned an enviable record for many heavy lifting accomplishments in
Chennai. We have heavy lifting cranes for hire, Hydraulic Jockeys, Transport Trolley, Rollers
and other Tools & Tackles for leading and positioning of Heavy Machinery.

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1.3 OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE
1. To study the distribution channel in shipping goods
2. To study the risk involved and how to overcome it.
SECONDARY OBJECTIVE
3. To study the cost incurred in transporting goods to various destinations.

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1.4 SCOPE OF THE STUDY
 The scope of the study is confined to marine hub enterprises. The study provides valuable
information to the firm to analyze various risk factors in logistics through secondary data.
 The study will help the firm in following to minimize the transportation costs incurred.

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1.5 LIMITATIONS
1. The study is based on the secondary data published in newspapers, books and journals of
the researchers. Sometimes data which is published by the researchers cannot analyse
fresh situation means old data and wrong data is collected by inherent error.
2. The time & cost plan an important role when one goes for a particular study. Due to the
time & cost constrains large collection of datas could'nt be interpreted.

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REVIEW OF LITERATURE
Mr. Harpreet Singh “CII INSTITUTE OF LOGISTICS”
Main recommendations to handle logistics activities for are:
Complete transparency amongst all the channel partners:
Proper co-ordination and transparency is very much required amongst all the channels partners,
so that effective utilization of resources can be done at all the stages of the logistic. Along with
this timeliness of the information flow is very much important in such type of project. For e.g the
information about the exact size and weight of the consignment should be available from
supplier to the transporter for enabling him to finalize the most suitable vehicle.
A sense of mutual trust and risk sharing mechanism.:
Since in this type of project three main parties are involved and the main priorities are different
of each of them. For success of the project in the most cost effective way, a sense of mutual trust
and risk bearing ability should be their.
Selection of feasible and practical approach:
One of the most important thing is to evaluate no of feasible options and then selecting the most
practical option or the approach. Before planning any activity, select no of options available
considering the various resources available and the limitations. And then the most feasible
approach should by implemented.
V.V . sople in “logistics management” said that “ Logistics has advanced from the warehousing
and transportation to boardrooms of the successful leading companies across the world. Logistic
capabilities supplement the supply chain operation. It plays an important role in both
organizational strategy and organizational environment. The leading global retail giants, Wal-

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Mart and Levi Strauss focus on their distinctive logistic capabilities to maintain their competitive
advantage. The efficiency and effectiveness of inventory movement across the supply chain
depends on the capability of logistics management. Logistics plays a key role in customer service
strategy of the organization. With the emergence of e-commerce, logistics operations have
become more challenging than ever, because the competition is just a click away.”
Y. H. Venus Lun, Kee-hung Lai and T. C. Edwin Cheng in “Shipping and logistics
management” says that “The term shipping has evolved from its original relationship to ships
and seaborne trade, to encompass any mode of transport that moves goods between two points.
The implication of the extended meaning of shipping is that the shipping industry has become
more complex, as well as more dynamic.Traditionally, the theory and knowledge of shipping
management and operations are transferred in the workplace, from practitioners to newcomers;
little has been systemically organized and published in books. Shipping and Logistics
Management serves to consolidate the knowledge its authors have acquired from being educators
and observers of the shipping industry. Against the background of a global business
environment, it explains how the shipping market functions, examining the strategic and
operational issues that affect entrepreneurs in this industry. Shipping and Logistics Management
also aims to answer several important questions in the shipping industry, including: What are the
shipping markets? How are freight rates determined? What are the shipping cost structures?
What are the patterns of sea transport? and How do companies in the shipping industry
operate?An invaluable source of information for researchers and advanced, or graduate, students,
Shipping and Logistics Management is also a useful reference for shipping practitioners and
consultants”
Kent in “global logistics” says that “Manufacturing a quality product is no longer sufficient by
itself to guarantee customer loyalty. Companies must consistently deliver their product when and
where customers demand it at a reasonable price. Global Logistics Management provides
students and managers with an accessible overview of logistics in a global setting.In order to
keep readers with little or no knowledge of logistics focused on the topic, the book is written in a
straightforward, uncomplicated way, and real-life examples from all over the world help put the
theoretical points discussed into context. Global Logistics Management will help provide present

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and future business leaders with the knowledge and skills necessary to turn their corporate
logistics activities into a source of sustainable competitive advantage.
Donald waters in “global logistics and distribution planning” says that “ Logistics has a key
strategic role to play in the long-term plans of major companies, and is recognized as a vital part
of every organization. To a large extent this crucial new role is due to an expanded view of
logistics, which now includes all the activities related to the supply chain from initial suppliers
through to final customers
including:
developments in logistics
supply chain strategies
lean logistics
efficient customer response
logistics in different countries
partnering and strategic alliances
re-engineering the logistics function

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PROCESS OF DISTRIBUTION CHANNEL
When shipping a product overseas, the exporter must be aware of packing, labeling,
documentation, and insurance requirements. It is important that exporters ensure that the
merchandise is:
• Packed correctly so that it arrives in good condition;
• Labeled correctly to ensure that the goods are handled properly and arrive on time at the
right place;
• Documented correctly to meet U.S. and foreign government requirements, as well as
proper collection standards; and
• Insured against damage, loss, pilferage and delay.
Most exporters rely on an international freight forwarder to perform these services because of the
multitude of considerations involved in physically exporting goods.
Freight Forwarders
An international freight forwarder is an agent for the exporter in moving cargo to an overseas
destination. These agents are familiar with the import rules and regulations of foreign countries ,
the methods of shipping, and the documents related to foreign trade. Export freight forwarders
are licensed by the International Air Transport Association (IATA) to handle air freight and the
Federal Maritime Commission to handle ocean freight.
Freight forwarders assist exporters in preparing price quotations by advising on freight costs,
port charges, consular fees, costs of special documentation, insurance costs, and their handling
fees. They recommend the packing methods that will protect the merchandise during transit or
can arrange to have the merchandise packed at the port or containerized. If the exporter prefers,
freight forwarders can reserve the necessay space on a vessel, aircraft, train, or truck. The cost
for their services is a legitimate export cost that should be included in the price charged to the
customer.
Once the order is ready for shipment, freight forwarders should be review all documents to
ensure that everything is in order. This is of particular importance with letter of credit payment
terms. They may also prepare the bill of lading and any special required documentation. After

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shipment, they can route the documents to the seller, the buyer, or to a paying bank. Freight
forwarders can also make arrangements with customs brokers overseas to ensure that the goods
comply with customs export documentation regulations. A customs broker is an individual or
company that is licensed to transact customs business on behalf of others. Customs business is
limited to those activities involving transactions related to the entry and admissibility of
merchandise; its classification and valuation; the payment of duties, taxes, or other charges
assessed or collected; or the refund, rebate, or drawback thereof.
Packing
Exporters should be aware of the demands that international shipping puts on packaged goods.
Exporters should jeep four potential problems in mind when designing an export shipping crate:
breakage, moisture, pilferage and excess weight.
Generally, cargo is carried in containers, but sometimes it is still shipped as breakbulk cargo.
Besides the normal handling encountered in domestic transportation, a breakbulk shipment
transported by ocean freight may be loaded aboard vessels in a net or by a sling, conveyor, or
chute, that puts an added strain on the package. During the voyage, goods may be stacked on top
of or come into violent contact with other goods. Overseas, handling facilities may be less
sophisticated than in the United States and the cargo could be dragged, pushed, rolled, or
dropped during unloading, while moving through customs, or in transit to the final destination.
Moisture is a constant concern because condensation may develop in the hold of a ship even if it
is equipped with air conditioning and a dehumidifier. Another aspect of this problem is that
cargo may also be unloaded in precipitation, or the foreign port may not have covered storage
facilities. Theft and pilferage are added risks.
Buyers are often familiar with the port systems overseas, so they will often specify packaging
requirements. If the buyer does not specify this, be sure the goods are prepared using these
guidelines:
• Pack in strong containers, adequately sealed and filled when possible.
• To provide proper bracing in the container, regardless of size, make sure the weight is
evenly distributed.

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• Goods should be palletized and when possible containerized.
• Packages and packing filler should be made of moisture-resistant material.
• To avoid pilferage, avoid writing contents or brand names on packages. Other safeguards
include using straps, seals, and shrink wrapping.
• Observe any product-specific hazardous materials packing requirements.
One popular method of shipment is to use containers obtained from carriers or private leasing
companies. These containers vary in size, material, and construction and accommodate most
cargo, but they are best suited for standard package sizes and shapes. Also, refrigerated and
liquid bulk containers are usually readily available. Some containers are no more than semi-truck
trailers lifted off their wheels, placed on a vessel at the port of export and then transferred to
another set of wheels at the port of import.
Normally, air shipments require less heavy packing than ocean shipments, though they should
still be adequately protected, especially if they are highly pilferable. In many instances, standard
domestic packing is acceptable, especially if the product is durable and there is no concern for
display packaging. In other instances, high-test (at least 250 pounds per square inch) cardboard
or tri-wall construction boxes are more than adequate.
Finally, because transportation costs are determined by volume and weight, specially reinforced
and lightweight packing materials have been developed for exporting. Packing goods to
minimize volume and weight while reinforcing them may save money, as well as ensure that the
goods are properly packed. It is recommended that a professional firm be hired to pack the
products if the supplier is not equipped to do so. This service is usually provided at a moderate
cost.

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Labeling
Specific marking and labeling is used on export shipping cartons and containers to:
• Meet shipping regulations;
• Ensure proper handling;
• Conceal the identity of the contents;
• Help receivers identify shipments; and
• Insure compliance with environmental and safety standards.
The overseas buyer usually specifies which export marks should appear on the cargo for easy
identification by receivers. Products can require many markings for shipment. For example,
exporters need to put the following markings on cartons to be shipped:
• Shipper's mark;
• Country of origin
• Weight marking (in pounds and in kilograms)
• Number of packages and size of cases (in inches and centimeters)
• Handling marks (international pictorial symbols)
• Cautionary markings, such as "This Side Up" or "Use No Hooks" (in English and in the
language of the country of destination);
• Port of entry;
• Labels for hazardous materials (universal symbols adapted by the International Air
Transport Association and the International Maritime Organization); and;
• Ingredients (if applicable, also included in the language of the destination country).
Packages should be clearly marked to prevent misunderstandings and delays in shipping. Letters
are generally stenciled onto packages and containers in waterproof ink. Markings should appear
on three faces of the container, preferably on the top and on the two ends or the two sides. Ant
old markings must be completely removed from previously used packaging.
In addition to the port marks, the customer identification code, and an indication of origin, the
marks should include the package number, gross and net weights, and dimensions. If more than

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one package is being shipped, the total number of packages in the shipment should be included
in the markings. The exporter should also add any special handling instructions. It is a good idea
to repeat these instructions in the language of the country of destination. and use standard
international shipping and handling symbols.
Customs regulations regarding freight labeling are strictly enforced. For example, many
countries require that the country of origin be clearly labeled on each imported package. Most
freight forwarders and export packing specialists can supply the necessary information regarding
specific regulations.
Documentation
Exporters should seriously consider having the freight forwarder handle the formidable amount
of documentation that exporting requires as forwarders are specialists in this process. The
following documents are commonly used in exporting; but which of them are necessary in a
particular transaction depends on the requirements of the exporter’s government and the
government of the importing country.
• A bill of lading is a contract between the owner of the goods and the carrier (as with
domestic shipments). For vessels, there are two types:
1.straight bill of lading- which is nonnegotiable
2.negotiable or shipper's order bill of lading.
The latter can be bought, sold, or traded while the goods are in transit. The customer
usually needs an original as proof of ownership to take possession of the goods
• A commercial invoice is a bill for the goods from the seller to the buyer. These invoices
are often used by governments to determine the true value of goods when assessing
customs duties. Governments that use the commercial invoice to control imports will
often specify its form, content, number of copies, language to be used, and other
characteristics.

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• A consular invoice is a document that is required in some countries. It describes the
shipment of goods and shows information such as the consignor, consignee, and value of
the shipment. Certified by the consular official of the foreign country stationed here, it is
used by the country's customs officials to verify the value, quantity, and nature of the
shipment.
• A certificate of origin is a document that is required in certain nations. It is a signed
statement as to the origin of the export item. Certificate of origin are usually signed
through a semiofficial organization, such as a local chamber of commerce. A certificate
may still be required even if the commercial invoice contains the information .
• A NAFTA certificate of origin is required for products traded among the NAFTA
countries (Canada, the United States, and Mexico).
• Inspection certification is required by some purchasers and countries in order to attest to
the specifications of the goods shipped. This is usually performed by a third party and
often obtained from independent testing organizations.
• A dock receipt and a warehouse receipt are used to transfer accountability when the
export item is moved by the domestic carrier to the port of embarkation and left with the
ship line for export.
• A destination control statement appears on the commercial invoice, and ocean or air
waybill of lading to notify the carrier and all foreign parties that the item can be exported
only to certain destinations.
• An export license is a government document that authorizes the export of specific goods
in specific quantities to a particular destination. This document may be required for most
or all exports to some countries or for other countries only under special circumstances.
• An export packing list considerably more detailed and informative than a standard
domestic packing list. It an itemizes the material in each individual package and indicates
the type of package, such as a box, crate, drum, or carton. It also shows the individual
net, legal, tare, and gross weights and measurements for each package . Package
markings should be shown along with the shipper's and buyer's references. The list is
used by the shipper or forwarding agent to determine the total shipment weight and

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volume and whether the correct cargo is being shipped. In addition, U.S. and foreign
customs officials may use the list to check the cargo .
• An insurance certificate is used to assure the consignee that insurance will cover the
loss of or damage to the cargo during transit .
Documentation must be precise because slight discrepancies or omissions may prevent
merchandise from being exported, result in nonpayment, or even result in the seizure of the
exporter's goods by U.S. or foreign government customs. Collection documents are subject to
precise time limits and may not be honored by a bank if the time has expired. Most
documentation is routine for freight forwarders and customs brokers, but the exporter is
ultimately responsible for the accuracy of its documents.
The number and kind of documents the exporter must deal with varies depending on the
destination of the shipment. Because each country has different import regulations, the exporter
must be careful to provide all proper documentation.
Shipping
The handling of transportation is similar for domestic and export orders. Export marks are added
to the standard information on a domestic bill of lading. These marks show the name of the
exporting carrier and the latest allowed arrival date at the port of export. Instructions for the
inland carrier to notify the international freight forwarder by telephone upon arrival should also
be included.
Exporters may find it useful to consult with a freight forwarder when determining the method of
international shipping. Since carriers are often used for large and bulky shipments, the exporter
should reserve space on the carrier well before actual shipment date. This reservation is called
the booking contract.
International shipments are increasingly made on a through bill of lading under a multimodal
contract. The multimodal transit operator (frequently one of the transporters) takes charge of and
responsibility for the entire movement from factory to final destination.

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The cost of the shipment, the delivery schedule, and the accessibility to the shipped product by
the foreign buyer are all factors to consider when determining the method of international
shipping. Although air carriers can be more expensive, their cost may be offset by lower
domestic shipping costs (for example, using a local airport instead of a coastal seaport) and
quicker delivery times.
Before shipping, the firm should be sure to check with the foreign buyer about the destination of
the goods. Buyers often want the goods to be shipped to a free-trade zone or a free port where
they are exempt from import duties .
Insurance
Damaging weather conditions, rough handling by carriers, and other common hazards to cargo
make insurance an important protection for exporters. If the terms of sale make the exporter
responsible for insurance, the exporter should either obtain its own policy or insure the cargo
under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer
responsible, the exporter should not assume (or even take the buyer's word) that adequate
insurance has been obtained. If the buyer neglects to obtain adequate coverage, damage to the
cargo may cause a major financial loss to the exporter. Shipments by sea are covered by marine
cargo insurance Export shipments are usually insured against loss, damage, and delay in transit
by cargo insurance. Carrier liability is frequently limited by international agreements.
Additionally, the coverage is substantially different from domestic coverage. Arrangements for
insurance may be made by either the buyer or the seller, in accordance with the terms of sale.
Exporters are advised to consult with international insurance carriers or freight forwarders for
more information.
Although sellers and buyers can agree to different components, coverage is usually placed at 110
percent of the CIF (cost, insurance, freight) or CIP (carriage and insurance paid to) value.

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HOW MARINE HUB ENTERPRISE FUNCTION
CUSTOMER MARINE HUB
ENTERPRISE
SUPPLIER
CUSTOM HOUSE AGENT
FREIGHT FORWARD
NON VESSEL OPERATING
CARGO
VESSEL OPERATOR
CONSIGNEE

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CUSTOMER:
The customer may be individuals , companies , industries who want to export or import goods
from or to other countries.
SUPPLIER:
They are the person eho supplies the good which has to be exported to other destination by
marine hub enterprise. Marine hub collects the goods from the supllier and transport it to
warehouse.
CUSTOM HOUSE AGENT:
Custom house agent are the agents who acts in the behalf of marin ehub in fulfilling the legal
formalities and documentation.
FREIGHT FORWARDING:
In freight forwarding brokers re choosen and brokerage is fixed for carrying out the distribution
process to make the good in transit in ship. Its the brokers part now to play in shipping of goods.
Brokers are given all the details of which destination the goods has to be reached and what time
limit given by the importer.
NON-VESSEL OPERATING CARGO:
Non-vessel operating cargo is containerisation. Containers has to be allocated. Here the size,type
of container, where the good to be placed inside the container whiche may be individual or bulk
is selected according to the type of the good to be shipped.

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VESSEL OPERATOR:
In this , customs authority chech the goods and all the legal formalities according to the rules and
regulations, bills checking and true documentation. Once the clearance of proof of documents are
made the conatainers are allowed to loaded into cargo.
CONSIGNEE:
Consignee is the importer or the person to whom the goods belong too. Impporters agents with
the leagal formalities gets the goods from the dock and make the goods reaches the consignees
place.

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PORTS OF INDIA

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WORLD SEA PORTS

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RISK
Risk has many facets and has been studied widely in many settings for many decades.
But risk in a supply chain management context is a rather new field of study, just as
supply chain management is a new field of research. Supply chain risk management
attempts to reduce supply chain vulnerability via a coordinated holistic approach,
involving all supply chain stakeholders, which identifies and analyses the risk of failure
points within the supply chain. Mitigation plans to manage these risks can involve
logistics, finance and risk management disciplines; the ultimate goal being to ensure
supply chain continuity in the event of a scenario which otherwise have interrupted
normal business and thereby profitability.While logistics service buyers and managers in
charge of organising transport and distribution have a functional responsibility to manage
risks within their department and their area of specialisation, companies also face higher-
level risks (corporate governance, compliance with regulations) where responsibility for
risks is mandated at senior board level.

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TYPES OF RISK
Lack of inventory
Carrier delays and non-performance
Transport and logistics cost volatility
Transport congestion
New environmental legislation affecting logistics
Mergers and acquisitions among service providers
Cargo theft
Liability for loss or delays
Bankruptcy of transport provider
Fines for non-compliance, sometimes running into millions of dollars.
Fire in transit
Leakage of goods
Natural disaster

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HOW TO OVERCOME THESE RISK
1. Insuring goods is the best way to overcome the risk at any situation.
2. Check the goods before packing for any leakage.
3. Avoid illegal goods.
4. Check the documentation properly according to the regulations.
5. Containerisation has to be done according to the type of good that has to be
shipped.
6. In case of fire, throw out the good which is in fire to the sea and the claim
insurance from other agency to safeguard the loss of the damaged goods.
7. Avoid damage goods.
8. Pack the goods tight and properly that it can be easily shifted.

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RESEARCH METHODOLOGY
GATHER INFORMATION
First interaction would be with the officials involved in the back end process to know how the
entire system works/ automation of such process, manual process involved and responsibility.
Front end staff would be contacted to know the management of business process involved
transportation of cargos from warehouses and CFS to the destinations.
SOURCES OF DATA
PRIMARY DATA
Primary data would be collected from the manager regarding the costs involved, profits
gained, fixed costs and other miscellaneous factors.
SECONDARY DATA
Secondary data could be gathered by collecting the information disclosed by the firm
regarding the overall costs involved in transportation of cargos which is inclusive of all the taxes,
customs, vessel operation charges, etc.
It also includes fixed costs and variable costs.

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DATA ANALYSIS AND INTERPRETATION
Data analysis is done by the use of TORA software, thus for carrying out a transportation
problem for calculating the minimum cost incurred in transportation of various goods to certain
destinations. Hence the minimum risk involving combinations could be analyzed.
TRANSPORTATION PROBLEM:
The transportation problem includes two factors, Cargos and Containers which gives the cost for
transportation of each pallet from CFS (container freight station) to the port of the destination
inclusive of all expenses. The demand and the supply of all the products are also given, which
the least total transportation can be calculated. Since the risk is closely associated with the
overall cost, minimum risk could be analyzed by calculating the overall cost. The information
given is the transportation of goods in five different containers to different location as mentioned
below.
CARGOS Vs CONTAINERS
Colombo Singapore Dubai Georgia S. SUPPLY
Africa
Perishable 1500 1700 1300 2100 1500 70
goods
Consumer 700 300 900 600 600 60
goods
Granites 300 400 600 500 400 40
Machines 500 400 600 500 500 70
DEMAND 50 50 40 50 50 240
Demand: The total number pallets allotted for Marine Hub enterprises in the particular container.
Supply: the total number of pallets of product a company can transport in s shipment.

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Total transportation cost:
optimum transportation cost
From To Amount Unit cost Route cost
Perishable Colombo 0 1500.00 0
goods Singapore 0 1700.00 0
Dubai 40 1300.0 52000.00
Georgia 0 2100.00 0
S. Africa 30 1500.00 45000.00
Consumer Colombo 0 700.00 0
goods Singapore 50 300.00 15000.00
Dubai 0 900.00 0
Georgia 0 600.00 0
S. Africa 10 600.00 6000.00
Granites Colombo 40 300.00 12000.00
Singapore 0 400.00 0
Dubai 0 600.00 0
Georgia 0 500.00 0
S. Africa 0 400.00 0
Machines Colombo 10 500.00 5000.00
Singapore 0 400.00 0
Dubai 0 600.00 0
Georgia 50 500.00 25000.00
S. Africa 10 500.00 5000.00

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Summary of transportation costs:
Node Supply/demand Total cost Av. cost/unit
Perishable goods 70 97000.00 1385.71
Consumer goods 60 21000.00 350.00
Granites 40 12000.00 300.00
Machines 70 35000.00
INFERENCE:
The total cost: 165000.0000(ALTERNATIVE solution detected at route < 2, 4 >
Minimum risk thus occur only in routes [(s1,d3)]

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FINDINGS
1. Maximum growth is shown by sea as compare to the road and air.
2. Sea freight shows the improvement due to better movement for the overseas
movement of goods and also least cost incur when shipping of goods by sea but it
takes more time and less safe than the air modes.

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SUGGESTIONS AND RECOMMENDATIONS
1. Scheduling of service time point of arrival and departure of ships and has great scope for
improvement. They never run on time.
2. proper co-ordination and transparency is very much required amongst all the channel
partners.
3. Legal system is not in keeping with the modern outlook of life and business. The laws are
out mode and require comprehensive amendments. It can be made easier.
4.The system and procedure obtaining in government department are incontinent, time
consuming and not at all business centric.
5. Logistics development is absolutely necessary.
6. advanced technology has to be used to reduce the risks .
7.The company can transport the goods to the place which costs comparatively lesser.
8.The risks can be minimized by shipping goods that would cost less and non-perishable
preferably.
9.The demand should be met with proper supply to enhance the flow of goods continuously
rather than placing them at warehouses.

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CONCLUSION
Distribution channel are among the most complex and least understood areas of logistics
operations.it is within the channel that the ultimate success or faiure of a business is
determined.This is clearly related to competition. It is also the firm’s ability to establish effective
supply chain relationships.the establishment and maintenanceof the effective relationship require
effective relationships require significant change in traditional managerial practices. Some firms
make provision of selected services their core competency. The distributional channel must
complete the assortment of merchandise that results in the right products being at the right place
at the right time.

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BIBLIOGRAPHY
Logistical management by Donald j. bowersox and David j. closs
Logistics and supply chain management by Martin Christopher
Websites:
www.wikipedia.com
www.scribd.com
www.mapsofindia.com
www.logisticsindia.com
www.marinehubenterprise.com
www.importsexports.com