Lesson 13 – Unit 5

1. Lesson 13 – Unit 5 Mgr. Bc. Erika Konupčíková

2. Choosing transport mode: What do youhave to consider: • Goods specifications • Weight • Dimensions • Destination • Urgency • Security • Value • More: To make sure your products arrive at the right time, to the right place and at the appropriate cost and quality.

3. Shipping by road (truck) • Shipping by truck is a very common method. • It is nearly always used when shipping to closer destinations; and also when you choose to ship by air or sea, the truck usually has to be there to transport your goods to the port. • The dimensions of your shipment will determine if you need TL (truck-load) or LTL (less-than-truck-load).

4. Shipping by rail • Shipping by rail is more environmentally-friendly than by trucks. Therefore the EU and local governments have been trying to support this method. • The rail option is often used when transporting to further destinations or when your shipment is bulky, heavyweight or overwidth. • Many rail shipments are part of the intermodal chain: they are transported from trucks, ships or planes. (Therefore the transhipment costs are included). • Businesses use containers that are easily moved from one mode to another. Refrigerated containers are used for perishables, flat-rack containers for heavyweight cargo, open-top containers for bulky cargo, tanktainers for liquids. However, rail is not as flexible as road transport.

5. Shipping by air • Shipping by air is the best option if your orders are urgent or valuable. • It is an expensive option indeed (especially if your shipment is heavy), and its possibilities are limited by the availability of airports. • When transporting valuable goods by air, it is advisable to insure it. The air freight insurance rates are affordable.

6. Shipping by sea • Shipping by sea is the cheapest option if you need to transport large shipments that are not very urgent. • LCL - Less than container load cargo. For cargo volume from 1 cubic meter and up to 20 m3. Not used space in container for sale. • FCL -Full Container Load is a standard (20 or 40 ft length) - whole container is intended for one consignee. • Break bulk cargo, Bulk Cargoes, Project cargo and Heavy lift, military equipment or almost any other oversized or overweight cargo which is too big or too heavy for a container

7. Multimodal – Intermodal • Thanks to the containerization, shipping has become much faster than before. • Containers are easily transited between various vehicles (ships, planes, trucks and railroad cars all can carry containers) in the intermodal transport chain by handling equipment. • Logisticcompany: http://www.youtube.com/watch?v=FzrK4kVhWW8

8. Conclusions to transport organization • Items that must be transported quickly should be shipped by air, items that are not urgent can be shipped economically by sea. • Trucks are usually needed to transport the items to the ports, railroad stations or airports. • Most items need more than one mode of transport. • Finding the best way of coordinating this logistic chain can save your business a lot of money. Adaptedfrom: http://www.solusource.com/tominfo/WhitePapers/Global%20Shipping%20Methods.pdf 5 Nov 2011

9. Your task: • You are supposed to arrange the transport of one pallet of smallmetal parts from Shanghai to Přerov. • The weight is approximately 1000 kg. • Consider various options.