SEA TRANSPORTATION

REPORT OF MONEY AND BANKING

PRESENTED BY:
MOHAMMAD HASHIM

Table of contents
Executive summary Introduction to logistic Logistic management Scope of logistic management Means of transportation Road transport Railway transport Air transport Sea transport Kinds of ships use for trade Organizational structure Advantages of ship transport Disadvantages of ship transport Problems of Sea transport Top five companies Comparison of two companies Agility Kuehne Nagel Conclusion Recommendation Reference

Executive Summary
This report contains information about logistics, scope of logistics, means of logistics and mainly about sea Transportation. Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). In the recent past the Logistic management has gained recognition as one of the most important business functions and a tool for developing competitiveness in Pakistan. The global logistics sector has evolved and remained open to favorable changes during the last 20 years. Nowadays the manufacturers do not feel reluctant in outsourcing and adding considerable value to the functions performed by logistics much above the normal functions of delivery, warehousing, storage and distribution of goods. The means of transportation is the movement of people and goods from one location to another. Transport is performed by modes, such as air, rail, road, water, cable, pipeline and transport. In this report we have discussed about the sea transportation mainly. It Consist of the Advantages / Disadvantages, Problems, Solution, top 5 companies and Comparison of two companies. The comparison includes area coverage, product and services and mission and vision.

Logistics
Logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment. Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security. Logistics is a channel of the supply chain which adds the value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software.

What is Logistic Management? Logistic Management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of the consumption in order to meet customer & legal requirements. A profession working in the field of logistics management is called Logistician. The Chartered Institute of Logistics & Transport (CILT) was established in the United Kingdom in 1919 and was granted the royal Charter in 1926. The Charted Institute is one of professional bodies of institutions for the logistics & transport sectors that offer such profession qualification or degree in logistics management.

Scope of Logistics management in Pakistan In the recent past the Logistic management has gained recognition as one of the most important business functions and a tool for developing competitiveness. Logistics is, therefore, of paramount importance to any organization, which delivers products and services to its customers. Effective and efficient physical movement of the products will give an edge to the company over its competitors. Logistics is one of the major enablers of growth of trade and commerce activity in a country. The scope of logistics ranges from the management of material procurement and manufacturing to the delivery of finished products to its ultimate customers / consumers.

Scope of Logistics management in the world The global logistics sector has evolved and remained open to favorable changes during the last 20 years. Nowadays the manufacturers do not feel hesitant in outsourcing and adding considerable value to the functions performed by logistics much above the normal functions of delivery, warehousing, storage and distribution of goods. Global logistics management is considered to be highly integrated and therefore requires a thorough knowledge of materials management, customs regulations, foreign exchange, purchasing, supply-chain management, and transportation and information technology. This trend is quite able to be seen throughout Americas and Europe and is slowly attaining its due importance in Asia Pacific countries like China and India.

Means of Transportation Transportation in Pakistan is the movement of people and goods from one location to another. Transport is performed by modes, such as air, rail, road, water, cable, pipeline and transport. The field can be divided into infrastructure, vehicles, and operations. Transport in Pakistan is extensive and varied but still in its developing stages and serving a population of over 170 million people. Construction of new airports, roads, and railway is providing an employment boost in the country.

Road Transport Transport on roads can be roughly grouped into two categories: transportation of goods and transportation of people. In many countries licensing requirements and safety regulations ensure a separation of the two industries. The character of road transportation of goods depends, apart from the degree of development of the local infrastructure, on the distance the goods are transported by road, the weight and volume of the individual shipment and the type of goods transported. For short distances and light, small shipments a van or pickup truck may be used. For large shipments even if less than a full truckload (Less than truckload) a truck is more appropriate. In some countries cargo is transported by road in horsedrawn carriages, donkey carts or other non-motorized mode. Delivery services are sometimes considered a separate category from cargo transport. In many places fast food is transported on roads by various types of vehicles. For inner city delivery of small packages and documents bike couriers are quite common. People (Passengers) are transported on roads either in individual cars or automobiles or in mass transit/public transport by bus / Coach (vehicle). Special modes of individual transport by road like rickshaws may also be locally available.

Railway Transport Rail transport is the means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on. Track usually consists of steel rails installed on sleepers/ties and ballast, on which the rolling stock, usually fitted with metal wheels, moves. However, other variations are also possible, such as slab track where the rails are fastened to a concrete foundation resting on a prepared subsurface. Rolling stock in railway transportation systems generally has lower frictional resistance when compared with highway vehicles, and the carriages and wagons can be coupled into longer trains. The operation is carried out by a Railway company, providing transport between train stations or freight customer facilities. Power is provided by Locomotives which either draw electrical power from a railway electrification system or produce their own power, usually by diesel engines. Most tracks are accompanied by a signaling system. Railways are safe land transportation systems when compared to other forms of transportation. Railway transportation is capable of high levels of passenger and cargo utilization and energy efficiency, but is often less flexible and more capital-intensive than highway transportation is, when lower traffic levels are considered.

Air Transport Air Transport or Aviation is a term that refers to the design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft. General aviation includes all non-scheduled civil flying, both private and commercial. General aviation may include business flights, air charter, private aviation, flight training, ballooning, parachuting, gliding, hang gliding, aerial photography, foot-launched powered hang glides, air ambulance, crop dusting, charter flights, traffic reporting, police air patrols and forest fire fighting. Each country regulates aviation differently, but general aviation usually falls under different regulations depending on whether it is private or commercial and on the type of equipment involved. Many small aircraft manufacturers, including Cessna, Piper, Diamond, Mooney, Cirrus Design, Raytheon and others serve the general aviation market, with a focus on private aviation and flight training. The most important recent developments for small aircraft (which form the bulk of the GA fleet) have been the introduction of advanced avionics (including GPS) that were formerly found only in large airliners, and the introduction of composite materials to make small aircraft lighter and faster. Ultralight and homebuilt aircraft have also become increasingly popular for recreational use, since in most countries that allow private aviation, they are much less expensive and less heavily regulated than certified aircraft

Sea Transport Sea transport is one of the oldest mean of moving good/cargoes and human across great expanse of water date back centuries .Being the oldest it practices and regulation is different from those of other modes transportation. Sea transport is governed by number act which have been draft and ratified by majority of nation over the world. The Acts are: Hague rule draft in 1921 and applied in1924 after being signed by many countries at Brussels convention of the same year. 1968 international maritime committee draft a protocol knows as The Hague by rules which amended the Hague rules. In 1978 came the unconventional of the carriage of goods by sea COGSA also know as the Hamburg rules. Beside the above there a number of other rules draft ,ratified, and enforced by the international maritime organization IMO some of which are Solas(safety of life at sea), STCW conventions (Standard of Training ,Certification and Watch keeping), COSWP (Code of Safe Working Practices for Sea Merchant) etc.

Kinds of Ships use for trade Oil tanker

 General in cargo

Bulk carriers

Ore carriers

Cattle carriers

Product tanker

Organizational Structure Ship owner. Charter. Shipping Agent. Crewing agent. Container/oil terminals. Tally Clerks. Port authorizes. Customers. Immigration. Port security. Marine workshop.

Advantages of Sea Transport

Sea transport is a relatively economical mode of transport for carriage of bulky and a very good in large volume.

It takes lower cost than other modes

It is save respect to occurrence of accidence and mishaps.

It generates employment change industries associated with international trade and commerce's.

It does not require construction and maintenance of rates at high seas.

Nearly 35000 commercial vessels hauled 7.4 billon metric tons 2007.

Disadvantage of Sea Transport

Its speed is very slow and takes more time.

Bad weather can cause a lot of damage.

Can also be hijacked.

Difficult to monitor the exact location of goods in transit

Customs and Excise restriction

People also use shipping transportation for smuggling arms, cattle, cars and etc.

Oil tankers are highly flammable

Problems of Sea Transport 1. Acquiring and maintaining vessels is very expensive.

2. Ship require different grades of fuel example:Diesel Oil Stroke Oil Marine Gas Intermediary Fuel oil , Etc. Price of which are greatly effected fluctuation international crude oil price 3. Port dues in world ports vary and are high. For Example in Karachi ship of 10,000 Gross tons would have to pay US $3,400 @ US $ 0.34 per LT. Then there is other operation cost in the harbor. A modern ship of 25000 Ton capacity in Karachi would have to pay Rs 2.8/3.0 million. 4. The maximum permissible draft in relation to the available depth of water in ports/harbor greatly restrict a ship landing capacity consequent to where there is a loss of revenue for the ship owner and or charters. 5. Inclement weather condition of sea and in port greatly effects the operation of vessels results in the loss of time and revenue.

Top five company of Sea transport 1. Kuehne Nagel 2. Agility 3. Synergy 4. Fright System 5. Globalink

Comparison of Two Shipping Transportation Companies

Agility are a leading global provider of integrated logistics, bringing efficiency to business and government supply chains in some of the world's most challenging environments. We combine a worldwide footprint and customized capabilities to provide unmatched personal service in both developed and emerging economies. Vision Become a new logistics leader meeting the challenges of global trade.

Mission Facilitating trade through innovative supply chain solutions

Business Groups Global Integrated Logistics (GIL): Agility GIL serves commercial customers in technology, retail, chemicals, and a wide range of other industries. Defense and Government Services (DGS): Agility DGS provides logistics services to government and military agencies, relief organizations, and international institutions. Infrastructure: Agility Infrastructure is a group of companies that handles the support needs of the industrial real estate, customs optimization, and airline services industries, primarily in the Middle East, Africa, and South Asia.

Investor Relations Publicly listed on Kuwait Stock Exchange and Dubai Financial Market

Ticker symbol: AGLTY 15,000+ shareholders, including institutional investors

Geographic Reach We have over 550 offices in 120 countries, with a strong and growing presence in emerging markets.

Americas: Asia Pacific: Europe:

Regional Breakdown 100+ locations, 25 countries 200+ locations, 24 countries 140+ locations, 25 countries

Middle East & Africa: 100+ locations, 46 countries

Facilities & Operations

5.55 million square meters of open yard storage 8,000-vehicle fleet

Wide Range for Greater Flexibility We provide both Full Container Load (FCL) and Less than Container Load (LCL) services for your day-to-day shipments, as well as out-of-gauge and break bulk services for your non-containerized cargo. All of our Sea Freight experts around the world are ready to respond to your urgent inquiries, so your

sea freight not only gets to its destination on timeit gets the right treatment every step of the way.

Product Range:

FCL ensures the availability of equipment whenever and wherever you need to ship a complete container of cargo. LCL Supports partial container loads with regular and reliable connections worldwide.

Our freight experts are compliant with the latest advanced cargo handling and security requirements and are available to assist with your pick-up and export handling, import handling and delivery, and capacity management.

Sea quest Line Our competitive rates, frequent sailings and customizable services are available through Agilitys dedicated Non-Vessel Operating Common Carrier (NVOCC), Sea quest Line. Sea quest Line has signed rate volume agreements with many global and specialized niche carriers to make more individual services available to you. As a result, Agility can offer multiple sailings per week in every carrier alliance.

Customs Clearance A well-designed and well-managed customs clearance program reduces cycle times, improves shipment visibility and lowers cost. Our knowledgeable customs clearance experts taking care of documentation and enable timely and reliable movement of your goods through the customs process. Our global logistics network of local experts understands the nuances of their respective countrys customs regulations, giving you the critical edge in expediting customs clearance and delivery of shipments.

Kuehne + Nagel -- one of the world's leading sea freight solutions providers -delivers highly flexible services through partnerships with leading carriers, streamlined visibility and monitoring via KN Login and tailor-made rates. Through partnerships with leading carriers, Kuehne + Nagel can guarantee sea freight capacities and easily adapt to growing trade volumes - a key benefit when it comes to managing global supply chains. Our more than 7,500 sea freight specialists can provide flexible solutions, customized to meet your unique requirements, including:

Less-than-Container Load (LCL) Customs clearance / brokerage Automotive Beverage logistics Forest products Reefer / perishables Oil and energy Project logistics

With a global annual less-than-container-load (LCL) volume of more than 1.5 million cubic meters, we offer professional cargo handling on the sending and receiving sides, as well as access to more than 2,000 of our own operated lanes. KN Login provides visibility, monitoring and reporting of your goods in transit, including:

Detailed information of goods' movement Customer references and scanned documents Proactive shipment monitoring and exception alerts Customized statistics and reports Interactive delivery planning Ability to integrate with enterprise resource planning (ERP) systems

Less-Than-Container Load (LCL) Kuehne Nagel is the leading global less-than-container-load (LCL) sea freight provider. When you don't have enough cargo for a full container, rely on us to provide you with LCL departures from major ports across the world.

Kuehne + Nagel's comprehensive approach to LCL management ensures reliable, fast shipment of goods -- worldwide. Our philosophy is to run the product in-house so that we control the cargo flow, transit times, costs and information accuracy. Kuehne + Nagel is the first seafreight provider to build a worldwide, independent LCL network focused on customers' business objectives. Our network provides you with:

Direct or maximum-one-stop routings to guarantee reliable, fast shipments Tailored pricing (Inquiries only for commercial cargo, which means no personal effects, household appliances or automobiles / motorbikes.) Minimization of cargo-damage risk through reduced trans-loading Single point of contact for all your global LCL needs Access to more than 1,000 global sailings a week

Customs Clearance / Brokerage If your goods sit on a dock awaiting customs clearance for a day, your "speed to market" advantage is squandered. And incomplete or wrong customs documentation can cause considerable delays in transportation, reducing supply chain and delivery reliability. To minimize your customs issues, Kuehne + Nagel provide:

Import and brokerage systems integrated into our global sea- and airfreight operations Brokerage services handled in-house by licensed professionals to the extent permitted by law Information system interfaces that are connected to customs authorities, where available

Conclusion

Lets conclude, this report contains the information about the logistics management, scope of logistic management actually logistic is a transformation or flow of goods, peoples, information from one place to another and managing this process called logistic management. Nowadays, scope of logistics is effectively increasing in Pakistan and all over the world. Every multinational organization are depending on logistics. There are different means of transportation which include air, sea, road and railway transportation. We are mainly considering and discussing about sea transport which include advantages and disadvantages, problems and comparison of two companies. Sea transport is the oldest way of transportation. It takes lower cost and carries a lot of items but it has slow speed and can be influence by the bad weather but still it is more popular then other means of transportation. For understanding more efficiently we have compared two well known companies logistics companies which deals in sea transportation, one is Agility and the other is Kuehne Nagel. All information has provided about both shipping transportation companies which includes product and services, area coverage and mission and vision.

Reference
We are thankful to Mr. Ahsan bin Asim for giving his time and providing us with information about the Sea Transportation. Company Name: - Sharaf Shipping Agency Ltd. Country: - Pakistan City: - Karachi Postal Code: - 74200 Address: - Block A, 5th Floor lakson Square - Building No. 3, Sarwar Shaheed Road Phone No: - 0213 - 5620888 Designation: - Captain Website: - www.Sharafshipping.com