Sea Port Formalities for Exportation
Export Transport Logistics Cost
By Mr Manoj Aglawe, BSc., MBA, PGDFT
Ocean and surface transport costs are excessive and create a major barrier to foreign market. Transport infrastructure, such as ports, ICDs, CFSs, etc., plays an essential role in facilitation international trade, constituting as they do the main interface between ocean transport and surface transport. The level of infrastructure development and the quality of services are major factors in the cost of transportation.
The major component of export transport logistics cost are: i. Labour charges for handling, stowing etc ii. Road transport charges iii. ICD charges iv. CFS charges v. Port Terminal Handling charges vi. Clearing charges vii. Consolidation charges viii. Liner freight
This article will serve as a guideline to work out export transport logistics costs associated with export of containerized shipment.
An export transport logistics cost estimate do not include the following: i. On carriage charges payable at destinations port ii. Transport insurance iii. Duties and taxes iv. Storage and demurrage charges.
Containerised Shipment
Basically, shipments are classified into two broad categories, bulk shipment and small shipment. Bulk shipment is further divided into two, liquid bulk, e.g. POL, chemicals, edible oil etc. and dry bulk e.g. ore, food grain, fertilizer etc. Small shipment is further divided into two, Containerised shipment and non- Containerised shipment (break-bulk or general cargo).
To cater to the movement of these shipments, shipping companies provide two types of services, tramp shipping and liner shipping. Tramp shipping provides services on demand and carries bulk shipment (liquid and dry bulk), between nominated ports. Transportation charges, i.e. freight is based on supply and demand situation for the ship in the market.
In contrast, liner shipping provides schedule service to advertised ports, on different selected trade routes in
By Mr Manoj Aglawe, BSc., MBA, PGDFT
Ocean and surface transport costs are excessive and create a major barrier to foreign market. Transport infrastructure, such as ports, ICDs, CFSs, etc., plays an essential role in facilitation international trade, constituting as they do the main interface between ocean transport and surface transport. The level of infrastructure development and the quality of services are major factors in the cost of transportation.
The major component of export transport logistics cost are: i. Labour charges for handling, stowing etc ii. Road transport charges iii. ICD charges iv. CFS charges v. Port Terminal Handling charges vi. Clearing charges vii. Consolidation charges viii. Liner freight
This article will serve as a guideline to work out export transport logistics costs associated with export of containerized shipment.
An export transport logistics cost estimate do not include the following: i. On carriage charges payable at destinations port ii. Transport insurance iii. Duties and taxes iv. Storage and demurrage charges.
Containerised Shipment
Basically, shipments are classified into two broad categories, bulk shipment and small shipment. Bulk shipment is further divided into two, liquid bulk, e.g. POL, chemicals, edible oil etc. and dry bulk e.g. ore, food grain, fertilizer etc. Small shipment is further divided into two, Containerised shipment and non- Containerised shipment (break-bulk or general cargo).
To cater to the movement of these shipments, shipping companies provide two types of services, tramp shipping and liner shipping. Tramp shipping provides services on demand and carries bulk shipment (liquid and dry bulk), between nominated ports. Transportation charges, i.e. freight is based on supply and demand situation for the ship in the market.
In contrast, liner shipping provides schedule service to advertised ports, on different selected trade routes in