Fundamental of Trade, Transport,

Logistics and supply chain

Diploma in Maritime Business and Operation Management

Capt. Min Min Tun
 OBJECTIVE

To understand what is Globalization

To increase efficiency & use available resources more

effectively in transport sector

To understand evaluation of Freight forwarding, Logistics and

Supply Chain

To learn Incoterms, available Laws and Limited liabilities

To learn Management systems and information technologies

 Globalization, Trade and
Transport Linkages

What is Globalization, Transport and Trade

The importance of transport sector for international trade

liberalization of trade

The competitive trade environment

 What is Globalization
The expansion of

i. Economic

ii. Political

iii. Cultural

Becoming the same all around the world

The world is smaller and more accessible

Global supply Chain and new trade & investment route

Increasing connectivity of people & businesses through

networks
 Globalization of Trade

Trade liberalization

Standardization ( Organization, Products & Service)

Transport and Logistics

ICT “ Information and communication Technology”

(a) Communication Technology

(b) Production Technology

(c) Transportation Technology

 Globalization Liberalization of
Trade and Service
Greater income opportunities

Greater investment inflow

Free Trade area

APEC “Asia-Pacific Economic Cooperation”

ASEAN

Maritime transport services already liberalized

Land transport services “Railways often operated by government

buy Joint arrangements now being put in place
 Globalization The Competitive
Trade Environment
Transport can greatly facilitate trade development

Transport management to logistics and supply chain

management

Connecting the supply chain in one platform

What is Logistics Management Definition &

Importance in Supply Chain AIMS UK.mp4
 International Law
Making bodies
IMO (International Maritime Organization)

ILO ( International Labor Organization)

UNCTAD ( United Nations Conference on Trade and

Development )

Hamburg Rule

Committee Maritime International (CMI)

Hague- Visby Rule

Multimodal Transport Law ( ASEAN Framework agreement)

 Carrier’s liability
relating to the goods
Carriage of goods by sea

The Hague Rules,

The Hague-Visby Rules

Hamburg Rules

Carriage of Goods by road

Carriage of Goods by Rails

Carriage of Goods by Airs

Multimodal Transport

UNCTAD/ICC Rules for Multimodal Transport

 Local Regimes
Relating to Transport Law
The Carriers Act ( India Act 3,1865,Vol.VII)

 The Myanmar Carriage of Goods by Sea Act( India Act 26, 1925, Vol. VII )

 The Bill of Lading Act ( India Act 9, 1856, Vol.VII )

The Myanmar Carriage by Air Act (India Act 20,1934,Vo.VII)

The Railways Act ( 19.2.1992)

 Land and Inland Waterways Act 1963

Motor Vehicles Act 1964

The Sea Customs Act( India Act no. VII of 1878, as amended up to 30th
September 1960) and the Land Customs Act (India Act no. XIX of 1924, as
amended up to 30th September 1960)
 Incoterms

The terms of sales

Between buyer and sellers

Setting of responsibilities

Shipping & Insurance

 WHAT IS “INCOTERMS” ?
a standardized trade terms
• (13 in total for INCOTERMS 2000)

• (11 for INCOTERMS 2010)

• ( INCOTERMS 2020)

Developed by ICC,

The main purpose is to apportion the costs & risks of the

transport movement & related operations

Between the 2 parties

 WHAT IS “INCOTERMS” ?
a standardized trade terms
• (13 in total for INCOTERMS 2000)

• (11 for INCOTERMS 2010)

• (10 for INCOTERMS 2020)

developed by ICC,

The main purpose is to apportion the costs & risks of the

transport movement & related operations

between the 2 parties

 Incoterms

To define obligation of seller and buyer

Both parties in Trade

Understand exactly of their rights and obligations

Correctly used

No more disputes

At least not about who is responsible!

 Transport Management
Key Driver to Change
Changes in work practices
Changes in customer behavior
Changes in technology
Increasing or decreasing workloads
Unique ( Style, Culture, Environment)
Relative costs
Specialization and strength
Relative Limits as to resources and capabilities
 Plan & Execute

Basic Principles
Nature of goods (perishable - hazardous/ dangerous)

Voyage (with/without transhipment or transfer)

Time element (urgency)

Cost (cheapest, quickest, safest...?)

Safety (container, conventional?)

 Plan & Execute
Transport Planning

Allows for high utilization and less impact

New infrastructure

Transport forecasting

Transport economics

Transport engineering in trip generation

Trip distribution

Mode choice and route assignment

 Plan & Execute
Route Planning

Process needs to fulfill the following objectives

Meeting customer requirements

Cost

Service

Time

Legal requirements

Vehicle capacity & Driver's hours

(e.g. by minimizing non moving time)

 Planning Sea Movement
Operational factors (constrain activity )

The risk of congestion

The impact of the weather

Port documentation requirements

Procedures for clearing cargo

Storage facilities

Infrastructure (railways, roads)

 What is Freight Forwarders
& it’s Role
Traditionally the freight forwarder was the link between the
owner of the goods and the carrier, and

Provided forwarding or clearing services (as an Agent).

With the advent of containerization,

The forwarder undertook activities such as packing and cargo

consolidation on his own account (as a Principal)
 inheren

11/14/2022 22
 Freight Forwarders Role The Importance
of Logistics & Supply Chain Management

Globalization and internationalization of the industry

The Changing Competitive Market

Logistics is the movement of physical elements and

related information from one place to another

Movement from the point of origin to the point of

consumption

Logistics is only a part of the supply chain management

 Location Customer
Order selection Procurement
service
processing
Logistics
communication
Demand
forecasting
Reverse
LOGISTICS logistics

Inventory
management
Traffic &
transportation

Material Part and

handling Warehousing Services Logistics
Packaging & storage support
Activities
 Evolution of Logistical Integration,
1960-2000
Demand Forecasting 1980s
Purchasing
Materials
Requirements Planning
Management
Production Planning
1990s
Manufacturing Inventory
2000s
Warehousing
Supply Chain
Materials Handling Logistics Management
Packaging
Inventory
Distribution Planning
Physical
Order Processing
Distribution
Transportation Information Technology
Customer Service Marketing
Strategic Planning

Source: Rodrigue, 2009

 Preparation of Freight Quotation
Type of goods
Mode of transport
Volume and weight
Value, Base on incoterms
Offer Freight collect or pre-paid
Including or not other value added service charges
Insurance coverage
Documentations
 What is Logistics Management

Supply Chain Management extends beyond logistics to

include the management of suppliers and customers
relationship

Logistics focus much more on transportation and storage of

materials and finished goods

Logistics can also be called material management

Type of transports
 Multimodal Transport

MULTIMODAL TRANSPORT IN PERSPECTIVE

A mode of transport is a solution

that makes use of a particular type of vehicle,

infrastructure and operation
 Multimodal Transport

MODE SELECTION CRITERIA (OTHERS)

Delivery date
Cost of transport service
Reliability and service quality
Shipment size/ item type
Transit time
Number of transshipment points
possibility of damage
 Multimodal Transport

Safe cost

Faster Transit time

Reduce documentations

Integrated Transport System

Ability to compete in International Market

Contribute the economic development

Only one agency to deal

 Multimodal ( DRY PORT)

Reduces the number of transportation links

Reduce roads congestion, accidents, road maintenance

costs and local pollution

One train can substitute numerous lorries & Trailers

Increases seaport’s terminal capacity

Increase productivity
 Transport Management System

Functionalities
Planning
Decision-making
Transport execution
 Follow-up
 Measurement and follow-through
Coordination and communication (external and internal)
prevention, control, fall back or contingencies, proactive
 Cargo & Packaging

The transport method will determine the need for packaging and
storage requirements

The transformation from commodity to cargo

The packaging requirement of the different types of cargo

List the guidelines on the choice of packaging

I. Liquid cargoes

II. Dry cargoes

III. Unit load, Break bulk or Bulk cargo

 Type of Packaging

Required depends on the:

Nature and type of goods

Volume

Weight

Number of packages

Types of packages

Mode of transport

Final destination
 Flat rack loading on Trailer

Positioning on the Flat rack Lashing with Belts, Cables and Turnbuckles

Lashing and Choking

 Unitization of Cargo
The transport operators should be familiar with different aspects for
cargo handling and packaging

The combining of small components (or units) of a load into a single

larger unit

The forms of unitisation include:

 Palletisation
 Pre-slinging
 LASH
 Ro/Ro
 Containerisation
 Container Types

Containers may be grouped under six principal headings:

1. General cargo

2. Thermal

3. Tank

4. Dry bulk

5. Platform

6. Special ( Cattle Container)

 Container Types
Open top container

Open-sided containers

Open top open-sided containers

Open top, open-sided, open end container

Half-height container

Dry bulk container

Thermal insulated / heated / refrigerated containers

Container Types Seals
 Information Technology a Supply
Chain Enabler
Information links all aspects of supply chain
Electronic data interchange (EDI)
Bar code and point-of-sale
Radio frequency identification (RFID)
Fleet Management Systems
Transport Management systems
Logistics Industrial 4.0
Internet allows companies to communicate with suppliers,
customers, shippers and other businesses around the world,
instantaneously
Container Tracking and
Tracing System
THANK YOU FOR YOUR ATTENTION