Wa0025.

COURSE:
INTERNATIONAL
BUSINESS
INTERNATIONAL LOGISTIC
MANAGEMENT CLASS NOTES
TEACHER:
MBA. MARTIN QUINTANILLA RODRIGUEZ
AREQUIPA - 2021
International Logistics
Management Mag. Martin
Quintanilla Rodriguez
CONTENTS
Introduction ............................ 03
Nature and Types of Cargo ............................ 04
Nature of the load ............................ 04
Types of cargo ............................ 06
Weights ............................ 08
Weight Formulas ............................ 09
Stowage Factor ............................ 10
Rail and Land Transport ............................ 10
Air Transport ............................ 11
Maritime Transport ............................ 11
Types of containers ............................ 13
Container stowage ............................ 21
Bibliography ............................ 24
2
INTRODUCTION
In International Business a fundamental element is the proper

management of packaging, to achieve an efficient management in
the logistics chain, which allows to provide products with greater
safety and protection.
In this first unit to be able to achieve the aforementioned we

must take into account the factors and risks of cargo
handling,which vary in each of the operations of international business,
the first factor of this variation is due to the nature of the load so it is
understood if the load is considered as Perishable, Dry, Fragile,
High Value and Dangerous.
The second factor to take into account is the type of cargo

according to the form of shipment of the same, being able to be bulk and
unitarized cargo, this analysis will allow us to choose the best means
for the protection of the load and delivery in the established
deadlines, we must always take into account that the efficiency in the
logistics chain is measured in time and not in costs.
As a third factor we must understand and apply the

fundamental concepts related to the weights and dimensions of
the load such as net weight, net weight, gross weight, volume
weight and cubicage with these data we will be able to determine
the most appropriate stowage factor, a factor that will allow us to
know how to stow the merchandise in the different types of
containers that are currently used in international business.
3
NATURE AND TYPES OF CARGO
By nature of the load we understand the different
characteristics that have the same, depending on these can vary the
value of international freight,since by its nature can incur higher
costs for security and handling, these can be classified into:
Perishable Load: It is that load that suffers a normal

degradation in its characteristics, as a result of the passage of time
and environmental conditions.
This cargo is normally sent by air transport or in refrigerated

means of transport as it is a load that needs a certain
temperature during transport.
Dry Load: It is that load of finished products that do not suffer a

degradation in their characteristics. Products that are
classified as dry cargo must meet the following requirements
 Do not pose a health risk
 Do not attack the safety of those who manage them
 Do not harm the environment
 Not having a defined time of life.
Fragile Charge: It is that load that requires a special handling

in the packaging as well as the handling of the load, due to the
risk of suffering damage during the handling of the same, in
this modality there is an increase in the costs of transport.
4
High Value Load: It is that load whose main characteristic is
its high monetary value so it requires a special handling of
security both in the packaging and in the handling in the means
of transport, to avoid risks of theft, in this load there is an
increase in transport costs.
Dangerous Cargo: Composed of products with characteristics

that can cause accidents or damage to the means of transport,
in this mode there is an increase in transport costs. These are
goods that, if not treated properly, can put human life and the
environment in which it is transported at risk.
The Dangerous Charge is characterized by having explosive,

combustible, oxidizing, poisonous, radioactive or corrosive
properties. Depending on its degree of danger, the United
Nations (UN) classifies it into nine types:
1. Explosives
2. Gases
3. Flammable liquids
4. Flammable solids
5. Oxidizing substances and organic peroxides
6. Toxic substances and infectious substances
7. Radioactive material
8. Corrosive substances
9. Substances and objects Dangerous several
5
Oversized load: Es that load that exceeds in weight and

measures the allowed capacity of a standard equipment, so they
require special handling
Bulk Cargo: It is the set of products that are transported in

large quantities, without any type of packaging or container, this
load is usually deposited or poured directly into the means of
transport whether this sea, land or rail.
Bulk cargo is divided into:
• Solid Bulk: This classification includes grains, coal, iron

ore, wood, cement, bauxite, salt, etc.
• Liquid Bulk: It is the cargo that is in liquid or gaseous

state, this condition makes its transport is in specialized
means of transport.
Among the products considered as liquid bulk are: oil,

liquefied natural gas, gasoline, chemicals and liquid foods
(vegetable oil, cooking oil, etc.), among others.
Unit Load: It is that which is presented in a solid, liquid or

gaseous state, and that being packed or unpacked, can be treated
as a unit.
The general cargo is transported in packages whose shape, weight 6
and dimensions, se adjust to the characteristics of this.

Some such goods are: computers, shoes, leather goods, clothing,
fabrics, manufactures in general, etc. Similarly, the overall load
can be sub-classified into:
• Fractional Loading : It consists of individual goods such

as: packages, sacks and boxes, among others.
• Unitarized Cargo: It is composed of individual items

grouped in units such as pallets or containers.
7
PESOS
In any international business operation, you must know the

different types of weights that are used,the information for the
calculation of them comes from the data provided by the containers
and packaging themselves with which the different types of cargo are
being handled.
To understand these concepts in a more appropriate way, it is

necessary to familiarize yourself with the main concepts related to
the management of packaging:
Packaging: That which wraps or contains the products or

goods in a unitary way, which are marketed in order to
preserve them when transporting them.
Packaging: Element intended for the protection of the
packaging container.
Packaging: Last element intended for protection during
transport and handling.
Shipping: The total set of packaging used in the international
transport operation.
When the merchandise is entered into the warehouses of the

company, they are prepared for handling in the logistics chain,to
make an adequatepreparation, the following concepts of weights
must be handled and known:
Net weight Net: It is the weight of the products or goods that

make up the load without considering the packaging or the
container. The formula for the calculation is the following: 8
PNN = Product - Packaging

Net Weight: It is the weight of the products or goods that

make up the load without considering the packaging. The
formula for the calculation is as follows:
PN = Product + Packaging
Tara Weight: It is the weight of the packaging and packaging

in which the products or goods are shipped. The weight of the
products or goods, containers or packaging is not considered.
TARA = Packaging + Packaging
Gross Weight: It is the total weight of the shipment,

considering the total weight of the products, containers and
packaging. The formula for the calculation is as follows:
PB = Net Weight + Tara
9
STOWAGE FACTOR
We call Stowage Factor the index that relates the

characteristics of weight and volume of the loads,we
understand by volume of the loads to the space that occupies the
same in the means of transport,the way of calculation of this
factor will depend on the means of transport.
The calculation of this factor, allows the means of transport and

operators of international business, to know if the gross weight is
greater than the volume of the cargo, themeans of transport
consider for the calculation of the internationalfreight, the data that is
greater, that is, the gross weight is compared with the volume of the
cargo if the actual weight of the shipment is greater than the space
occupied by the shipment.
As mentioned, the calculation of this factor will depend on the

means of transport, the calculation is made as follows:
Rail and LandTransport: For this type of transport, the ratio

between the volume occupied by the cargo and the gross
weight of the same is defined as a stowage factor.
Fait Volume 
 
h

 WeightBruto
Air transport: Stowage factor using the air stowage coefficient 10
or IATA stowage coefficientcalled Weight

Volume (PV) that makes 6 000 cm3 of volume of a good equal
to 1 kilogram.
 LxAlxAn 
PV  
 6000 
Where: L is the outer maximum length of the packaging in

centimeters; An, is the maximum outer width of the packaging
in centimeters; and Al is the maximum outer height of the
packaging in centimeters.
Maritime Transport: Thestowage factor is calculated by

multiplying the maximum outer length of the packaging in
meters; the maximum outer width of the packaging in meters;
and the maximum outer height of the packaging in meters.
The calculation of international freight rates are made by gross

weight or volume according to what is greater, when a load
arrives at the warehouse of the means of transport, it is weighed on a
scale obtaining its gross weight.
The calculation of the volume it is done depending on the

mode of transport, using the formulas noted in the previous points, 11
when we have both are compared the two and the largest
it becomes a tariff weight which is to which the rates with which the
international freightwill be determined are applied.
12
TYPES OF CONTAINERS
Containers can be defined as cargo containers capable of

being used in the air, land or sea transport of a greater amount of
merchandise,containers have standard dimensions that allow better
handling and facilitate the entry of cargo, they are usually known by
their name in English container.
Sea containers are made of corrugated steel or aluminum and

some others are made of plywood that are reinforced with fiberglass.
Inside they have a special anti-humidity coating to avoid damage
to the merchandise by humidity that may originate during the trip,
the most important thing that must be taken into account the internal
measures of the same.
The main types of sea containers, which are the most used in
international business, are the following:
20-foot dry container
The standard 20' container,also known as Dry Vanis the most widely used in theworld. It
can carry almost any load, thanks to its versatility.
This container has a maximum gross weight capacity of 24 Tons or 24,000 Kilos.
13
The main data of the container are as follows:
Open
Outside Interior Capacity Tare
Doors
Height Height
width width height
length length width 33.1 m
3
6.06m 5.90m 2.34m 2 220 kg

2.43m 2.35m 2.27m
2.59m 2.39m
40-foot dry container
This unit was created to allow its full utilization of its maximum
capacity when carrying bulky loads.
This container has a maximum gross weight capacity of 28 Tons or

28,000 Kilos.
The main data of the container are as follows:
Open Doors
Height Height
width width height
3
12.19m 12.03m 2.34m 3 780 kg

2.43m 2.35m 2.27m
2.59m 2.39m
40-foot High Cube container
14
The 40' High cube container is a standard 40' container with an extra
foot in height.
The standard 40' has a height of 8.5', then the high cube of 40'
measures 9.5' high, this is a 13% increase of its internal cubic
capacity.
Open Doors
Height Height
width width height
3
12.19m 12.03m 3 900 kg

2.34m
2.43m 2.35m 2.58m
2.89m 2.69m
20-foot ventilated container
The 20' ventilated container was designed for specific loads that
cannot undergo abrupt changes in temperature, due to their humidity
level.
It features two sets of fans on either side of the container, on the

ceiling and floor and acting all along the container, warm moist air
flows through the ceiling vents while fresh air flows inside through the
lower vents.
Also, some loads need to be transported in ventilated containers to

prevent the accumulation of gases.
Open Doors
Lengt High height

h High width width 32.9 m
3
2 250 kg 15
Width length 2.34m
6.06m 5.89m 2.27m
2.43m 2.35m
2.59m 2.38m
20-foot bulk container
A shipment of grains is normally taken from the exporter's silo in

trucks to the ship; to the port of unloading and at the end to the
consignee, exposing the cargo to loss and damage.
This container allows the cargo to be taken from the exporter directly
to the consignee without any extra handling. They have hatches on
the roof for filling and gates on the front panels for emptying.
It also has doors like the standard 20' container, which makes it
possible to use it for general cargo.
Open
Doors
Height Height
width width height
3
2 250 kg
6.06m 5.89m 2.34m
2.43m 2.35m 2.27m
2.59m 2.38m
40-foot high-cube refrigerated container
16
Recent line, the latest generation of High Cubes containers,

developed to meet the ever-increasing environmental requirements.
For frozen or refrigerated cargo, ideal for transporting most

perishable goods, with ranges from –30 to +50 degrees Celsius.
Open Doors
Length Length
Height Height Height
Width Width width 76.3 m
3
12.19m 12.03m 2.34m 3 900 kg

2.43m 2.35m 2.58m
2.89m 2.69m
40-foot refrigerated container
The refrigerated container, also known as a reefer,acts as a mobile refrigerator.

17
The machinery used today is up to date with the latest modern technology and can
maintain a stable internal temperature by
weeks with a maximum variation of 0.01 degrees Celsius.
These containers can control temperatures from –30ºC to

+50ºC.
Open Doors Capacity

Outside Interior Tare
High width High width

high 2004 11,350lb
length length
12.19m 2.43m 11.32m2.28m width cubic 5150 kg
2.59m 2.19m 2.28m feet
3
2.12m 56.7 m
Open top container of 20 and 40 feet
Open-top containers were developed for certain loads that are not
suitable for being introduced through the door.
Without a roof, the cargo is stowed through the roof. A tar waxed
canvas secured by hooks covers and protects the load.
The open-roof container is built in two basic dimensions: 20' and 40'.
Open Doors
Length Length
Width Width width 64.0 m
3
12.19m 12.06m 2.28m 3 750 kg

2.43m 2.34m 2.31m
2.60m 2.26m
Height Length
width Height Height
length Width width 33.1 m
3
6.03m 5.89m 2.28m 2 150 kg

2.43m 2.34m 2.31m 18
2.60m 2.26m
20- and 40-foot flat rack containers
Flat rack containers are designed for loads with irregular edges, with
dimensions that extend beyond the internal measurements of dry
containers.
They come in three different models: with fixed front panels, without
front panels, and with folding front panels.
Open Doors
Length Length
Width Width width
12.19m 11.86m 2.11m flexible 3 630 kg
2.43m 2.39m 1.96m
2.59m 1.96m
Length Length
Width Width width
6.03m 5.89m 2.11m flexible 2 000 kg
2.43m 2.39m 1.96m
2.59m 1.96m
The Containers they can also be classified according to the

mode of loading of the same, being the following its classification:
19
FCL (Full Container Load): It simply means that the seller,
exporter or consignor is responsible for filling the container and
defraying the corresponding expenses.
LCL (Less than Container Load)- Less than container

load: means that the carrier is responsible for the adequacy
and condition of the container and its filling. The carrier pays
for this and then bills a few expenses for the LCL service
CONTAINER STOWAGE
In loading goods within containers, the following principles

should be taken into account for the stowage of cargo in containers:
Check if the weight of the cargo does not exceed the cargo
capacity of the container.
Distribute the cargo evenly on the floor of the container.
Carefully observe the general rules for the stowage of goods
packed in cardboard boxes.
The Spaces Empty Must fill with Woods u
other materials, which avoid the displacement.
20
Support bars or corners of rigid packaging should not be placed
in such a way as to press on the walls of the container.
The possible fall of packages against the doors of the container
must be prevented
The rules relating to the transport of dangerous goods must be
rigidly followed.
To carry out the stowage inside a container, the amount of

packaging that can enter it must be calculated.
There are two forms of stowage, throughout and across the

entry of the packaging into the container, the selection of the same
depends on which of the methods enter a greater amount.
The long stowage consists of determining the number of

packages that enter inside the container by dividing the internal
measurement of the length of the container by the length of the
container, dividing the internal measure of the height of the container
by the height of the container and finally dividing the internal
measure of the width of the container by the width of the packaging
and then multiplying only the integers of each of the divisions,
determining the total number of packages that enter the container.
The following is the formula for calculating the stowage along:

The 
Lc  
* Alc Anc 

*
   
   Ane 
Le Ale
 
21
The packing at the width consists of determining the number
of packages that enter inside the container by dividing the internal
measurement of the length of the container by the width of the
container, dividing the internal measure of the height of the container
by the height of the container and finally dividing the internal
measure of the width of the container by the length of the container
and then multiplying only the integers of each of the divisions,
determining the total number of packages that enter the container.
The following is the formula for calculating the stowage across
The

 Lc Alc Anc 

 *
*
   
 Le 
 
 
Ane Ale
 
Once this calculation is made, it is compared between both

results, selecting the mode of stowage in which more packaging
enters.
22
BIBLIOGRAPHY
- www.iccwbo.org – International Chamber of Trade –
December 2013
- Packaging Guide – Ministry of Foreign Trade and Tourism –
2009
- International Marketing – Philip Cateora / Mary C. Gilly / John
Graham – 14th Edition 2009 – Ed. McGraw Hill
- ComercioyMarketingInternacional–AlejandroLerma/ Enrique
Márquez – 4th Edition 2010 – Ed. Cengage
- "Envases y Embalajes" Induction to Foreign Trade – Export
Route – PROMPERU - 2012
23

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COURSE:

MBA. MARTIN QUINTANILLA RODRIGUEZ

In International Business a fundamental element is the proper

In this first unit to be able to achieve the aforementioned we

The second factor to take into account is the type of cargo

As a third factor we must understand and apply the

Perishable Load: It is that load that suffers a normal

This cargo is normally sent by air transport or in refrigerated

Dry Load: It is that load of finished products that do not suffer a

Fragile Charge: It is that load that requires a special handling

Dangerous Cargo: Composed of products with characteristics

The Dangerous Charge is characterized by having explosive,

Oversized load: Es that load that exceeds in weight and

Bulk Cargo: It is the set of products that are transported in

Bulk cargo is divided into:

• Solid Bulk: This classification includes grains, coal, iron

• Liquid Bulk: It is the cargo that is in liquid or gaseous

Among the products considered as liquid bulk are: oil,

Unit Load: It is that which is presented in a solid, liquid or

The general cargo is transported in packages whose shape, weight 6

and dimensions, se adjust to the characteristics of this.

• Fractional Loading : It consists of individual goods such

• Unitarized Cargo: It is composed of individual items

In any international business operation, you must know the

To understand these concepts in a more appropriate way, it is

Packaging: That which wraps or contains the products or

When the merchandise is entered into the warehouses of the

Net weight Net: It is the weight of the products or goods that

PNN = Product - Packaging

Net Weight: It is the weight of the products or goods that

Tara Weight: It is the weight of the packaging and packaging

TARA = Packaging + Packaging

Gross Weight: It is the total weight of the shipment,

PB = Net Weight + Tara

We call Stowage Factor the index that relates the

The calculation of this factor, allows the means of transport and

As mentioned, the calculation of this factor will depend on the

Rail and LandTransport: For this type of transport, the ratio

Air transport: Stowage factor using the air stowage coefficient 10

or IATA stowage coefficientcalled Weight

Where: L is the outer maximum length of the packaging in

Maritime Transport: Thestowage factor is calculated by

The calculation of international freight rates are made by gross

The calculation of the volume it is done depending on the

Containers can be defined as cargo containers capable of

Sea containers are made of corrugated steel or aluminum and

20-foot dry container

6.06m 5.90m 2.34m 2 220 kg

40-foot dry container

This container has a maximum gross weight capacity of 28 Tons or

The main data of the container are as follows:

12.19m 12.03m 2.34m 3 780 kg

40-foot High Cube container

12.19m 12.03m 3 900 kg

20-foot ventilated container

It features two sets of fans on either side of the container, on the

Also, some loads need to be transported in ventilated containers to