This document discusses freight forwarding and shipping business in Bangladesh. It describes the key components of the shipping industry including ports, modes of transportation (sea, land, air), and skilled labor. It outlines the various actors involved such as ship owners, freight forwarders, shipping agents, and importers/exporters. It also discusses the different types of cargo shipments including household goods, express, parcels, and freight. In conclusion, it emphasizes that global demand for freight services has increased significantly in recent decades due to reduced transportation times and that Bangladesh's existing freight facilities need improvement to better promote exports.

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Freight Forwarding andFreight Forwarding and
Shipping Business in BangladeshShipping Business in Bangladesh
Presented by Md Aftab UddinPresented by Md Aftab Uddin
Student ID: DIM002013 012Student ID: DIM002013 012
Course: PGDIMCourse: PGDIM
Group Name: IchamatiGroup Name: Ichamati
Bangladesh Institute of ManagementBangladesh Institute of Management
Dhaka.Dhaka.

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Introduction
Shipping is one of the world's most old
industry. It is a fundamental element of
international and domestic trade. Shipping
business has a great impact on economic
development. That’s why the economists
have been addressed the shipping
"demand-driven" business. To learn more
about shipping and freight business of our
global economy, there must be a good idea
of international and domestic trade.

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Components of shipment
The shipping business involves the physical
transport of cargoes from an area of
supply to an area of demands. There are
three components of a transportation
(shipment) system that surrounds it:
• 1. Port or terminal
• 2. Media (Land/Sea/Air) Ship, Truck.
Lorry, Train or Air Cargo
• 3. Skill manpower

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Actors of shipping business
The shipping business involves a
number of actors to support and
facilitate the transport of cargoes.
This actors include
• Ship/Aircraft owners
• Shipbuilders
• Scrap dealers
• Terminal operators
• Multimodal Transport operators

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Closely related to the shipping
business
• 1.Shipping agents
• 2. Charters
• 3. Ship broker
• 4. Common Carrier
• 5. Non-vessel operating common carrier
(freight forwarder)
• 6. Consignor (Shipper)
• 7. Consignee (Buyer)

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Shipment categories
Shipments are typically categorized as household goods, express,
parcel, and freight shipments:
Household goods (HHG) include furniture, art and similar items.
Very small business or personal items like envelopes are considered
overnight express or express letter shipments. These shipments
are rarely over a few kilograms or pounds
Larger items like small boxes are considered parcels or ground
shipments. These shipments are rarely over 50 kg. Parcel
shipments rarely travel by air and typically move via road and rail.
Parcels represent the majority of business-to-consumer (B2C)
shipments
Beyond HHG, express, and parcel shipments, movements are termed
freight shipments.

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Freight Forwarding
Freight forwarding is a service used by
companies that deal in international or multi-
national import and export. It acts as an
intermediary between the client and various
transportation services. Sending products from
one international destination to another can
involve a multitude of carriers, requirements
and legalities. A freight forwarding service
handles the considerable logistics of this task
for the client, relieving what would otherwise
be a formidable burden. Some forwarders
handle domestic shipments only.

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Cargo definition
• Cargo (or freight) is goods or produce transported,
generally for commercial gain, by ship or aircraft , although
the term is now extended to intermodal train , van or truck.
In modern times, containers are used in most long-haul
cargo transport.
• The freight forwarding service utilizes established
relationships with carriers of all kinds, from air freighters
and trucking companies, to rail freighters and ocean liners.
Freight forwarding services negotiate the best possible
price to move the product along the most economical route
by working out various bids and choosing the one that best
balances speed, cost and reliability.

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Advantage of using freight
forwarding
Advantages of using freight forwarding is that it handles
ancillary services that are a part of the international
shipping business. Insurance and customs documentation and
clearance a freight forwarding service might also provide
Non-Vessel Operating Common carrier (NVOCC)
documentation, or bills of lading. Warehousing, risk
assessment and management, and methods of international
payment are also commonly provided to the client. A good
freight forwarding service can save the client untold time
and potential headaches while providing reliable
transportation of products at competitive rates. A freight
forwarding service is an asset to almost any company dealing
in international transportation of goods

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Document transfer fee
• International Freight Forwarders, NVOCC's and
customs brokers often charge for transferring
documents to another transportation company at
destination. This fee is a part of the ocean
freight charges, being paid by the importer at the
port of discharge in the incoterm FOB (free on
board), and by the exporter at the origin in the
incoterms CFR (cost and freight) and CIF (cost,
insurance and freight).

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Transportation types
Seaport terminals handle a wide range of maritime cargo.
Automobiles are handled at many ports and are usually carried on specialized roll-
on/roll-off ships.
• Break bulk cargo is typically material stacked on pallets and lifted into and out
of the hold of a vessel by craner on the dock or aboard the ship itself. The
volume of break bulk cargo has declined dramatically worldwide as
containerization has grown. One way to secure break bulk and freight in
intermodal containers is by using dunnage bags
• Bulk cargo, such as salt, oil, tallow, and scrap metal, is usually defined as
commodities that are neither on pallets nor in containers. Bulk cargoes are not
handled as individual pieces, the way heavy-lift and project cargoes
are.Aluminna, grain, gypsum, logs, and wood chips, for instance, are bulk cargoes.
• Neo-bulk cargo comprises individual units that are counted as they are loaded
and unloaded, in contrast to bulk cargo that is not counted, but that are not
containerized.
• Containers (FCL) are the largest and fastest growing cargo category at most
ports worldwide. Containerized cargo includes everything from auto parts,
machinery and manufacturing components to shoes and toys to frozen meat and
seafood.
• Project cargo and the heavy lift cargo include items like manufacturing
equipment, air conditioners, factory components, generators, wind turbines,
military equipment, and almost any other oversized or overweight cargo which is
too big or too heavy to fit into a container.
• LCL (Less container loading) cargo normally arrange by two or more consignee.

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Air Cargo
• Air cargo, commonly known as air freight, is collected by
firms from shippers and delivered to customers. Aircraft
were first used for carrying mail as cargo in 1911. Eventually
manufacturers started designing aircraft for other types
of freight as well.
• There are many commercial aircraft suitable for carrying
cargo Such large aircraft employ quick-loading containers
known as unit load devices (ULDs), much like containerized
cargo ships. The ULDs are located in the front section of
the aircraft.

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Road and Train
• Many firms, transport all types of cargo by road. Delivering everything
from letters to house to cargo container , these firms offer fast,
sometimes same-day, delivery. Trains are capable of transporting large
numbers of containers that come from shipping ports.
• Less than truckload (LTL) cargo is the first category of freight shipment,
which represents the majority of freight shipments and the majority of
business-to-business (B2B) shipments. LTL shipments are also often
referred to as motor freight and the carriers involved are referred to as
motor carriers.
• Trains are also used for the transportation of steel, wood and coal.
• They are used because they can carry a large amount and generally have a
direct route to the destination.
• Under the right circumstances, freight transport by rail is more economic
and energy efficient than by road, especially when carried in bulk or over
long distances.

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Disadvantage of Train
The main disadvantage of rail freight
is its lack of flexibility. For this
reason, rail has lost much of the
freight business to road transport.
Rail freight is often subject to
transshipment costs, since it must be
transferred from one mode of
transportation to another

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Transport ( Freight system)in
Bangladesh
Transport ( Freight system) in Bangladesh is an important part
of the nation's economy. Since the liberation of the
country, the development of infrastructure within the
country has progressed at a rapid pace, and today there is a
wide variety of modes of transport by land, water and air.
However, there is significant progress still to be made to
ensure uniform access to all available transport
Truckload cargo is the first category of freight shipment,
which represents the majority of freight shipments and the
majority of business-to-business (B2B) shipments. Truck
load shipments range from 50 to 7,000 kg (110 to 15,000
lb), being less than 2.5 to 8.5 m (8 ft 2.4 in to 27 ft 10.6 in)
the majority of times.

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The sea port of the country
• The Chittagong sea port of the country's export and import
trade of goods transported in the 92 percent to 70
percent, rest is Mongla sea port which transported
container sold.
• The last year at the port is 1.2 millions of container
handling . Only 6-7 percent of the national income growth
container port in the transport sector than 12 -14 per cent
growth.
• Liberal economy and tackling the challenges of globalization
as a driving force in Chittagong port for trade work.
• The Customs House is using the port produces about 10
thousand crore for the government revenue.

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Air freight
• Air freight shipments are shipments in terms of size and packaging
requirements. However, air freight or air cargo shipments typically
need to move at much faster speeds than 800 km or 497 mi per day. Air
shipments may be booked directly with the carriers, through brokers or
with online marketplace services or freight forwarder. While shipments
move faster than standard truck load cargo. In 2006-2007 HSJIA
handled 69,302 tons of export cargo. With import air cargo of 48,738
tons.
• Air freight market in Bangladesh in general and export in particular has
registered a steady healthy growth. The volume of air cargo has now
increased to 1, 69,865 ton
• In recent years capacity situation from Bangladesh has witnessed
significant improvement due to increase in frequency of foreign airlines
and resulted in significant boost of belly hold capacity as well as
operation of scheduled freighters by a number of airlines.
• Biman earned Taka 207 crore in 2006-2007; Taka 243.06 crore in
2007-2008; Taka 230.03 in 2008-2009; Taka 258.12 crore in 2009-
2010 and Taka 298.02 crore in 2011-2012. The actual revenue earnings
in all these years are much higher than the target.

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Conclusion
• Global demand for freight services as a supply
chain management tool has enormously increased
over past decades. This is due to the fact that
compared to other forms transport; it takes less
time in transporting a shipment. The payoff
coming from its reduced transportation time is
very big. The existing freight facilities are not at
all supportive to promote exports. Not only
garments, there exist huge potential of earning
huge foreign exchange from export of vegetables,
other perishables, medicine, handicrafts, frozen
sea-foods and leather and leather products.

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The End
Thanks