From grains to coal and from sugar to cocoa, dry bulk cargo cover a range of produce and raw materials that have two features in common: they are unpacked and are homogeneous. These two properties make it easier for dry bulk cargo to be dropped or poured into the hold of a bulk carrier. Figure: Dry Bulk Carrier
Without the estimated 500 million DWT of dry bulk shipping transported by sea annually, life today would be altered dramatically. Just having breakfast would be a very different event, with the ingredients of bread and cereal coming from dry bulks, as well as coffee and the sugar to sweeten it. Even the metal elements of your toaster and kettle come by sea and the coal to generate the electricity supply to power both appliances is likewise shipped in. Other dry bulk cargo include iron ore, alumina fertilisers, scrap, sulphur and cement, as well as a large number of agricultural products for the human and
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However, in 2011, the "Vale Brasil", the first in a series of VLOCs entered service. This vessel has a deadweight of 402,347 tonnes. (Source: http://www.intercargo.org/industry/58-trades.html) Figure: “Vale Brazil” the largest Dry Bulk vessel
Bulk and Break bulk are two terms that are being used incorrectly and interchangeably during the course of day to day business. These terms cannot be used interchangeably because there are distinctive differences between Bulk and Break Bulk in terms of cargo, nature, size, capacity, handling, trade, customers, ports, terminals, equipment, infrastructure etc.
The difference between Bulk and Break Bulk
The term Bulk relates to trades where dry cargo such as Iron ore, Grain, Alumina and Phosphate are carried in loose form (i.e. cargo is not packed) and loaded directly into the holds of the vessel, see
The National Motor Freight Classification (NMFC), as determined by the Surface Transportation Board (STB), is the tariff system that has classification and description of commodities based on four main characteristics. These are density of the commodity, liability, handling and storability of the commodity. Carrier companies negotiate the rate and terms of transporting the commodities on the basis of these four characteristics. It is important to mention that product density is the dominant factor that determines use of carrier’s vehicle and cost per hundredweight. Higher product density results in lower cost per hundredweight but higher capability of
One of the main ‘flows’ on transport, are goods (food, objects) that will be traded with other countries. The main improvement that has taken place in recent times is the creation of the freight transport, containerization. These containers can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container
W. W. Grainger, Inc. is recently thinking of redesigning the supply chain for shipments from China/Taiwan. The reason being as an obvious to reduce costs, lead times and to improve supply chain efficiency. The major issue identified was the lead time and a huge fixed overhead because of small shipments which then were consolidated by the company to make a full 40-feet container load. Through a thorough cost analysis and weightage of pros and cons of three alternatives, the team recommends to use an NVOCC (Non-Vessel operating common carrier) for small shipments which will lead to a lot lesser lead times and will help reduce costs as well. Along with this, the recommendation is also to increase packing efficiency for
Back to speed in production and an efficient operational system and sudden increase change in demand, production requires enough space to store bulk raw materials and a
If cargo is rated as weight (metric tons = 1 ton = 1,000 kilogram) or volume metric (cubic meters, CBM) whichever produces the highest revenue will be considered the Revenue Ton (RT) on which the shipment is freighted. Weights are based on metric tons and measures are based on cubic meters.
Container vessels, 18-wheelers, boxcars: these are probably the first things that come to mind when we think of freight. While ships, trucks, and railroads are some of the most significant components of freight, very complex systems and networks are also in place to support moving the goods that businesses and consumers want and need to nearly every corner on the planet. Of course, without actual goods, there is nothing to move, leading experts to refer to freight activities as goods movement.
When planning your next major household move or commercial shipping project, it is important to have a thorough understanding of the different types of moving options available to you. This article will introduce you to standard shipping options, as well as walk you through specialized freight options available for atypical shipments. As you will see, specialized freight is often used for large amounts of loose materials, oversized or overweight items, perishable products, or when the unloading area is not properly equipped for traditional freight trucks.
Construction materials such as lumber, pre-built frames and drywall are heavy, awkward and difficult for the average homeowner to manage. This is why lumber supply companies offer delivery services, using their flatbed truck. Likewise, larger building materials such as steel beams, and large volumes of lumber and other materials have to be transported to commercial sites. When demand increases, it strains the companies that manufacture and supply these materials. To ease the load and keep the supply chain moving, they often rely on the services of a logistics company with flatbed capabilities.
International trade is defined by shipping commodities and finished goods between countries, including both exporting commodities and goods from the U.S. as well as importing commodities and goods from around the world. Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. Distribution comprises all freight carriers (water, air, trucking, and intermodal) and warehousing. Until recently, most manufacturing organizations took responsibility for the warehousing
The use of containerization in freight movement has greatly reduced the cost and labor associated with moving freight. However, you highlighted something that is not often seen in the books, but in the field. The charges associated with the movement of freight intermodal is often combined into one charge for all modes of transportation used. For example, a shipment can be moved to the port via truck or rail, then placed on a ship to an overseas location, and finally trucked to its destination and the shipping charges would be on one shipping bill of lading. With freight shipments being consigned to one bill of lading no matter how many shipment modes used, does this make the payment process easier?
As technology is constantly working to improve the ships in terms of efficiency, fewer ships are required to carry the same amount of cargo. Also, with further innovation, costs to build ships will eventually decrease and profits will increase. Overall, the long-term prospect of the capesize dry bulk industry looks optimistic.
Containerization is a system of freight transport that transports trade goods from ports to ports. This system is based on a range of steel intermodal containers (also "shipping containers").These containers are built to standardized dimensions and can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another. Thus, it provided an economic way to ship 90% of the world trade goods across the globe and as a result has benefited society in providing for a truly open market to buy and sell goods. Cebu is home to national and international corporations whose trading hub is centered in the international port (cargo
Reefer box, as known as refrigerated container, is listed in the Hanjin’ potential products list. Since reefer boxes are limited and demand for it is escalated from EU to Asia, reefer boxes are promoted inbound in Asia to export boxes to Europe. As a result, Hanjin can maximize EQ-equipment turnover. Some ports in Europe, such as Felixtowe in Great Britain, have a surplus of reefer boxes, thus the company can adjust the rate higher in order to limit the trade into such area while surplus areas, such as Barcelona in Spain, are offered a reasonable low rate to give Asia-Europe service promotions. Afterwards, the company gets higher contribution margin derives from Europe-Asia trade. Another way Hanjin reinforces its core business globally is promoting “shipper owned container”, “SOC” for short, in the area where boxes are deficit to save on empty repositioning cost. In surplus areas, Hanjin tries to be flexible with its rates to clear out the boxes and send them to other areas with high demand. The rates can be adjusted from lower to higher accordingly. Hanjin Shipping, additionally, has a service diversification to Africa as NAF-North Africa-Asia, WAF-West Africa, EAF-East Africa, SAF-South Africa lines are added. Before cargos are
Today, container ships are used as major transport method between countries, and most of products, which are called dry cargo such as daily products, processed food, timbers and metals, are transported by container ship.
According to Waters (2010) water transport has not been used to it’s full potential therefore there has been a decline in sea transport, this is due to the lack of proper terminals. But according to Harrison & Fichtinger (2013) containerised ocean transport has become the lifeline of nearly all global supply chain, because of the increased amount of global processes, outsourcing and offshoring. Mason & Nair (2013) states that today, there are more than 80% of world trade by sea, such as raw materials and manufacturing outputs are carried inter-regionally around the globe.