Global Transport and Logistics

Transport and logistics from around the world.

Category: logistics

7 Peculiarities of Maritime Transportation

As the world population increases virtually every year mostly in African countries and developing countries in other continents of the world, likewise, the demand for different products around the world continues to increase on a large scale. In view of this, the development of industries on an extensive scale across the globe becomes inevitable, mostly in developed countries who would like to expand their global trade and economy. To make this possible, maritime or marine transportation becomes necessary. Unfortunately, the emergence of Covid-19 pandemic has affected the operation of industries and maritime operations.

It is interesting to note that international container shipping industries around the world enhance trading among nations to improve the standard of living globally hence, thousands of containers are loaded daily in different seaports around the world. No nation in the world is an island or is self-sufficient; every nation depends on one another for one or more products which call for global trade and to make this possible, there is the need for efficient mode of transport at a low cost that can carry large number of goods across geographical locations. Hence, marine transport remains the most suitable mode.

Maritime transport has huge benefits and here are some of them:

  1. More than 80% of global trade is made possible through maritime transport. This mode of transport supports global trade activities thus enhancing even distribution of different products or goods around the world.
  2. It supports multimodal transport system. The use of seaport increases the use of other modes of transport to complement each other, in order to make goods available where they are needed.
  3. Marine transport is a very efficient transport mode for moving huge number of container goods more than any other mode. For instance, a large container ship can carry more than 23,000 containers i.e. TEUs (Twenty-foot Equivalent Units).
  4. Since industrialized and developed countries depend majorly on container shipping industry or marine transport to boost global trade and economy, this means that through the support of marine transportation more jobs are created. This serves as means of livelihood for billions of people around the world. In simple language, marine transport can be used in any given nation to liberate millions of people from abject poverty.
  5. Since sea transport has the potential to boost the economy of a nation, generate employment, and open up new business opportunities, then, it will not be an overstatement to say that marine transportation is an indispensable tool for global sustainable development for 2030 agenda.
  6. Despite the efficient use of marine transport or container ships in the world today, the mode of transport still remains the least in environmental pollution when you compare it to other transportation modes. For instance, a single container ship may have in-built capacity to carry larger cargo than more than 100 articulated vehicles or lorries can carry. In simple language, it is more environmental friendly than other transport modes. However, monorail and electric car are excluded in this comparison.
  7. It’s economical and safer: Ships consume lesser fuel with lower air pollution. There are now notable improvement in ships’ engine in terms of effectiveness. There’s also low rate of accident in seaport transportation.

The major roles of marine transport is to contribute to trade activities and to sustain development. Therefore, maritime transportation plays these key roles and everyone in the world today enjoys these benefits.

3 Basic Essential Qualities of a Logistics Firm You Need to Know

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Logistics industry helps to develop the economic growth of a nation and also supports the quality of life by supplying human needs and also goods needed for industrial production. Hence, it’s worthy to say that the logistics industry promotes economic activity.

The capability to effectively manage storage and movement of goods in and out of a company within and outside of a country in order to efficiently satisfy customers’ requirements through efficient and effective use of road transport, railway transport, air transport and sea transport system, explains the basic duty of a logistics company.

However, there are three basic essential qualities of a logistics company you need to know:

  1. Flexibility: A good logistics industry is always ready and able to change a particular logistics operations at the shortest notice when the need arises or better still capable to handle different logistics operations at the same time in order to satisfy customers’ demand.

This is characterized by a ready capability of logistics industry at any point in time to adapt new order or requirements. Therefore, the capacity of logistics industry to promptly handle emergencies when required is one of the notable qualities of a logistics firm.

  1. Speed: Speed here means the rate at which a logistics firm handles or supplies customers’ demands at the right time. Speed is the essential ingredient of all logistics firms. The speed at which a logistics firm effectively coordinates the different movements of different products or goods in and out of different companies across the board at the right time to the right destinations, is an essential quality to keep your customers in the business.
  2. Reliability: Reliability is an essential tool for a logistics firm to continue selling their services to their prospective customers. No one will like to do business with any organization that is not dependable. A logistics firm must be trusted by their numerous customers to provide what is needed at the right time and at the right place. Logistics firm must do everything possible in all its capacity to reduce risk of a breakdown in the supply of goods to the customers, as this may discourage them in doing business with your firm.

In conclusion, every logistics company must showcase these three essential qualities: the ability to adapt to any change in customers’ demand or to any unforeseen circumstance; the ability to efficiently and effectively carry out transport operations to avoid unnecessary delay and provide just-in-time delivery; and the ability to build a proven track record that can be trusted and relied upon by your customers which are the essential factors that define the quality of a logistics firm.

Logistics Industry: A Key Factor For Industrial Growth And Prosperity

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A good management of any company must desire to grow, growth in the sense of progressive development of the business. A good management indeed, anticipates for progressive growth mostly in capital, value and income. In this sense, it is only a bad management that will refuse to grow or expand its business. The fundamental purpose of establishing most companies or businesses is to create wealth, reduce poverty and more importantly to sustain growth. It is important to note that the services of all logistics industries are important to bring this fundamental purpose of every business to reality.

Logistics industry supports good management of any given company or business. It’s a sign of a good management to see a company that grows at a greater rate than her whole economy and it is also a sign of good management when the management of such company usually directs a relative high percentage of the income made into the business for future expansion. All the way, logistics industry also provides immediate support for the future expansion of a business for both domestic and international logistics needs through road, air, rail and sea transport.

However, anticipation for progressive growth as management team of your company is not enough without adequate factors to bring it into reality; one of the notable factors or agents of positive change is logistics industry. Logistics industry is the most important factor with direct positive impact on the bottom line to grow your company’s operations. Logistics deliver superior quality service that will definitely boost the economic well-being of your company.

For instance, if a production or manufacturing company increases or doubles her production probably due to the high demand of her product from her prospective customers, in such situation, the freight volume grows, the cost of transportation also increases and transportation becomes more and more complex. Hence, in such situation, the need for a logistics industry for effective supply chain management and to reduce the cost of transportation becomes inevitable.

The ability to effectively control the flow and storage of goods into and out of a company, both within and outside a country, to support efficient production and to satisfy the customers’ demand better at the right time across-the-board, while at the same time, reducing the cost of transportation as well as the cost of operation are the most important factors to make your company to grow at a greater rate.

Why? It is because customers are the live wire of any given business, satisfying their demands at the right time at any given location which is the quality service of logistics industry, while at the same time helping your organization to solve the problem of complex transportation and reducing the cost are the ways to economic prosperity of your company.

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Logistics: A Solution To Transport Complications

Picture Showing Cargoes at Sea Port for Logistics Operation

At times, there are situations when it will be difficult, if not impossible, for an organization to allocate transport services efficiently to the large quantity of goods or products needed to be transported or moved to the warehouse or where it is needed. Furthermore, increase in production of different products around the world coupled with the importation and exportation of different products or goods by different organizations in the world have created additional and structural complexity of cargoes at the seaports. In such times or situations, logistics becomes inevitable so as to capture and manage the movement of these high volume cargoes or goods. Logistics as a vital industry gives support to organizations in the area of controlling the flow and storage of products or goods of the organization into and out of an enterprise operation. These useful functions of logistics industry make it inevitable to the production and distribution of goods and trade. In simple language, logistics is designed to satisfy customer demands. In other words, logistics management plays an important role in planning, implementing, and controlling the movement and storage of goods and services and any vital related information between the producers or sellers and the buyers with the aim of satisfying the customer demands within a specified time. Logistics boost production, distribution trade and retail activities of an organization. Logistics also involves engaging in the task of supplying needed materials to a particular location and at a particular time to consistently back the production of goods and services. Here are the benefits of logistics to your organization: 1. It prevents extra cost on infrastructure: The establishment of any logistics firm with notable investments in the system and infrastructure to enhance smooth operations in the area of distribution and supply in order to give support to any customer or producing company in the area of storage, movement of materials and goods, thereby helping the producing companies to avoid extra expenses in dedicated facilities or infrastructures. 2. It prevents extra cost on fleet investments and maintenance: Engaging the services of a logistics firm gives production companies enormous relief of using trucks and equipment without bearing the direct cost of purchasing them, maintaining them, employing competent staff and drivers to carry out logistics operation, managing safety measures in compliance with relevant regulations, among others. 3. An economical use of space to reduce freight cost: Two or more customers’ freight going to the same particular area can be matched or arranged together by a logistics firm, in full truckloads, in order to reduce customer’s freight transportation cost. This kind of arrangement is more economical with space, time and resources. 4. Logistics industries carry the burden of responsibility during freight transportation for their various customers. They bear responsibility for compensation or any liability incurred, probably due to goods damaged in transit. 5. High capacity to deliver: Logistics industries are often made up of high professionals and highly skilled staff or personnel and with heavy duty equipment, vehicle fleet and infrastructure that enable them to manage freight transportation and distribution on national and global networks. 6. It serves as a means to reduce congestion at sea ports: Logistics industries have the ability to arrest cargoes congestion at the sea ports. They can move high volume of cargoes consistently to desired locations, thereby arresting undue congestion at the sea ports. 7. It can provide ‘just in time’ services within short notice: Logistics Company can also be used to meet urgent demands or distribution of certain products or material.

Nonetheless, with continuous increase in production and international trade, it explains the need for improvement or change in logistics operations and better understanding in the area of inventory management, international customs, currency exchange, security, among others. The big logistics firms such as UPS, DHL, and FedEx among others play an important role in logistics industry. So today we have efficient and safe movement of goods at local, national and international levels through logistics industries. Continuous improvement on safe and timely delivery services are among the core values of logistics services.

Transport Demand and Supply

There are five (5) transport modes and main purpose of each of them is to give support to mobility. This explains why mobility is important in our daily activities. Mobility and transport infrastructure are closely related; hence, without mobility, transport infrastructure will be useless and without transport infrastructure; mobility will be difficult if not possible. However, this interdependency between mobility and transport infrastructure is associated to two (2) concepts in transport which are transport demand and supply. Transportation can be referred to as a market that involves two parties which are: the suppliers of transport services and the users of these services, therefore, the demand and the supply of transport is inevitable in transport market. In addition, for transport market to function very well, transport demand must be met, so as to satisfy transport needs for mobility. In transportation market, transport companies or individual transport provider offers transport services to transport users who require such services, often on open markets. Nevertheless, the transport users pay for the services delivered according to the journey of the agreed contract. What is transport demand? Transport demand occurs when a transport user is willing and able to pay a transport fare or particular amount of money based on the two parties’ agreement for a specific transport service. It is also refers to how much of a transport service is desired by transport users at various transport fares (price). Nevertheless, transport demand can be measured in numbers of journey made. Factors influencing transport demand Movement of people and good occur for different reasons at different times. There are several factors that influence the demand for transport mode such factors can be grouped into three (3) categories; they are:
  1. Personal characteristics
  2. Trip characteristics
  3. Transport system
Personal characteristics Transport demand can be influenced by demographic group of people such as age, old, gender etc. It also includes socio-economics, personal reference and so on. Trip characteristics Transport demand can be influenced by the number of people going to their place of work, people visiting tourist and recreation centers; education; shopping and so on, are all factors that can affect the demand for transportation. Transport system Transportation system is another factor that can influence transport demand. This include available travel routes, available transport mode, road and transit network, cost of travel, transport fare, travel condition, auto operating cost, reliability of service, to mention but a few. What is Transport Supply? Transport supply is the amount of transport services a transport company or individual transport provider is able to provide at a particular given time and on agreed fare (cost). Factors influencing transport supply
  1. Types and characteristics of goods
The bulk, the weight and the value of goods may determine the mode and kind of transport needed for particular goods.
  1. The Cost of freight
  2. The origin and destination of goods and available transport
  3. The distance of the journey: e.g. Inter-regional, Trans Ocean, Continent etc.
  4. Urgency and reliability of delivery, convenience, efficiency of travel, including modal transfer.
In conclusion, it is important to note that transport system behavior is always according to transport demand and supply that can be influenced by cost variation.    

Freight Management

Freight management is the management of a company’s freight. It is a management system that specializes in movement of freight or goods from one place to another. Freight management can be carried out in both international level and domestic level. It is international when goods are moved from one country to another country and it is domestic when goods are moved from one place to another within the same country. Any freight management company relies majorly on transport to carry out their businesses. In freight management, proper decision must be taken in order to determine the mode of transport that is appropriate for a particular freight. However, there are 3 factors that must be considered before a freight management department or company decides on a types of mode needed for a particular freight. The factors are:-
  1. Time factor
  2. Cost factor
  • Product factor
It is important to note that freight management cost is used to save business time and money in the entire freight operations. It is possible that transportation alone may account for almost 50% of an average company’s cost if not properly checked. This explains why freight management is important to an organization; it helps to keep freight cost lower for an organization which directly affects the bottom line and the price paid by all customers for a particular goods or supply. In fact, freight management appears to be a strategic system an organization needs to optimize the efficiency of freight and commercial transport. Benefits of freight management The benefits of freight management to an organization cannot be overemphasized. Such benefits among others include:
  • It enables the organization to increase profitability.
  • It enables the organization to increase production.
  • It gives administrative support to an organization
  • It gives better inventory management; lower inventory level and reduce carrying costs.
  • It improves on-time delivery.
  • Proper material handling; less damage and supports efficient receiving.
  • It gives immediate notification of any disruption.
  • It gives customers satisfaction.
  • It improves the company reliability.
  • It uses mode of transport more efficiently with economic value and goals in view.
  • It protects the good from damage during transportation.
However, poor management of company’s product or goods brings a great loss to the organization. I have seen many products of an organization that suffered heavy damage in transits due to poor transportation and bad road. Proper freight management will definitely reduce this high risk because success of freight management is linked to the efficient use of transportation. Nonetheless, since the essence of freight management is to increase efficiency, reliability and to minimize freight cost. Hence, it will not be understatement to say that freight management is inevitable to any manufacturing company.  

The responsibilities of a logistics firm

Logistics plays an important role in the growth of industry. Here are its responsibilities.
  1. Order fulfillment: – This has to do with completing the orders of prospective customer in a short period of time. Indeed, transportation and logistics would be any integral part of completing the order since they directly impact delivery.
  2. Traffic and Transportation: – It manages the inbound and outbound movement of goods.
  3. Warehousing and Storage: – A number of ware housing decisions directly impact logistics and transportation. For example, how many warehouses are needed? Where should they be located? How large should they be? How much inventory should each accommodate? These and more are what a logistics firm does in order to provide efficient storage facilities to it various customers.
  4. Industrial Packaging; – Transportation directly determines the type of packaging needed. However, logistics firm plans the exact method of how each type of product will be transferred from one place to another and store properly in the shelf and making space for the new stock.
  5. Purchasing: – When purchase is made the distance and the quantities purchased directly affect the transportation cost hence, logistics are highly integrated.
  6. Demand forecast: – Accurate and reliable fore casting is essential for effective inventory control.
  7. Materials handling: – They have best practices to handle materials most especially during transportation so that they are not damaged.8
  8. It plays important role in inventory control for its customers.
  9. It provides customer service. Logistics plays an extremely important role in ensuring that customers get the right products at the place at the right time. Transportation, warehousing, forecasting, inventory control and so on, have a direct impact on customer’s satisfaction.
  Major Aspect of a Logistics Firm There are two aspects of logistics that are considered as the most important part of logistics. They make logistics firm more meaningful and efficient in its operations. These most apparent aspects are warehousing and transportation. Warehousing and Storage Warehousing is defined as the storage of goods, raw materials, semi-finished goods and finished goods. This includes wide spectrum of facilities and locations that provide warehousing. It is a point in logistics system when goods are stored on certain amount and for different reasons till the time they are needed. This is a point where a logistics company is different from a transport or haulage company. A logistics firm provides transport services and storage facility for its customers. Unlike transport firm which is only dominant in transport service. A logistics firm without a storage facility is meaningless. Such a firm will not attract prospective customers hence; it will be difficult for such firm to survive in a competitive environment. Transportation Transportation involves the physical movement or flow of goods from one area to the other. In logistics the transportation system is the physical links that connects customers, raw materials, suppliers, plants, warehouses, and channel members. Without this link which is transportation, logistics firm will not be effective. It is an integral part of logistics. If a logistics firm must be efficient enough then transport system cannot be separated from it. Transport plays an important role in logistics operations. Therefore, it is inevitable link in logistics.  

Can your customers really rely on your company’s products when needed?

Major reasons why some companies collapse are due to inadequate storage facilities and inadequate supply to meet customers’ needs. Engaging a logistics firm is a vital solution to end these problems. Logistics is an important aspect that keeps organization going. It helps the organization to store the materials required for production and supply it afterwards, when needed for production process. It also, provides storage facilities for the organization to store its products. More also, it may help the organization to supply its finished goods to their various customers. Nevertheless, it keeps a detailed list of all the items in stock for the organization. It may also, provides inventory control service to the organization by supervising the supply and storage and ensuring accessibility of items in order to insure an adequate supply without excessive supply. It also, gives a detail report of inventory to the organization for decision making Logistics definitions Logistics is concerned with the management of the movement (i.e. transportation) and storage of organization materials and finished goods or inventory. According to the council of supply chain management professionals (CSCMP) defined logistics management as that part of supply efficient, effective, forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer requirements. In a simple language, logistics means having the right thing at the right place and at the right time.    Logistics objectives An objective of a logistics firm is to deliver finished inventory and materials assortments, in a correct quantity and in a usable condition when required to the right location where they are needed and more importantly, at the lowest total cost.   Logistics classifications However, according to Coyle, Bardi and Lanley they classified logistics into four (4) subdivisions which are:
  • Business logistics.
  • Military logistics.
  • Event logistics and
  • Service logistics.
  Business logistics: This is well defined in the definition given by the council of supply chain management professionals (CSCMP). However, it can also, be defined as a business planning framework for the management of materials service, information, communication and capital flow. It includes the increase complex information and control system required in today’s business environment. (Logistics Partners Linki; Pl 1996).              Military logistics: This refers to all that is necessary to support the operational capability of military forces and their equipment in order to ensure the readiness, reliability and efficiency. Event logistics: Management of all involved activities, facilities and personnel by organizing, scheduling and deploying the resources necessary to ensure the occurrence of an event and efficient withdrawal afterwards. Event logistics ensure that a program is well planned and enjoy by all participants. Service logistics: Acquisition, scheduling and management of facilities personnel and materials needed to support and sustain a service operation.

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