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UNITIZATION

UNITIZATION. UNITISATION. Unit load – quantity of material either in full or individual items, assembled and if necessary restrained to permit handling as a single object e.g cartons, pallet

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UNITIZATION

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  1. UNITIZATION

  2. UNITISATION • Unit load – quantity of material either in full or individual items, assembled and if necessary restrained to permit handling as a single object e.g cartons, pallet • Traditional methods of moving goods – involved much handling, packing, loading, unloading, transhipping, repacking, reloading etc • ISO container – basic tool for movement of merchandise by sea

  3. Reasons for Unitisation • Reduce transit time • More predictable transit times • Improved productivity of transhipment staff e.g. dockers • Improved productivity of ship • Reduce storage in warehouse • Easy storage and handling • Reduce damage and pilferage • Allow safer working practice to be used • Enable to use mechanical handling

  4. Application of Unitisation • Its application not always standard • Professional house removal e.g packing boxes, small standard containers • Delivering 20-tonne payload service to supermarket • Use of ISO containers and their complimentary equipment i.e pallets and fork lift trucks

  5. Types of Unitisation • 7 main types of unitisation - ISO Container - Pallet - Demountable - RO/RO Trailer - Roll Cage - Rigid Cage - Skips

  6. Types of Unitisation • ISO Container - It revolutionised port operations & ocean-going shipping since 1960 - Basic concept is strong box: 8ft & 20ft or 40ft long - Height not been standardized, majority are 8ft or 8.5ft high - Difference in height cause a major problem in container operation - Complete movement system: Cellular ship, ports & cranes, infrastructure to ensure delivery to final destination

  7. Types of Unitisation • ISO Container - Goods (stuffed) may be palletized or load manually by hand - It depends on space penalty and labour cost - Almost totally secure from damage & pilferage, accepted by customs worldwide & easy multimodal transportation - Air movement by ISO containers is rare

  8. High Cube Container General Purpose (GP) Container

  9. Types of Unitisation • Pallet - One of the most basic items of any material handling system - Main function is to maintain a gap between the floor and the load to be handled - Revolutionised & streamlined the movement of goods - Allows goods to be loaded in units instead of individual

  10. Types of Unitisation • Pallet - Machine compatible for movement, storage, loading and unloading by mechanical means - Enables goods to be stored in racking within warehouse ensuring good use of space - Most pallets are wooden, unsuitable for certain types of goods - Hard plastics pallets are available but at an extra cost

  11. Types of Unitisation • Demountable - This system is often used for products which are bulky, difficult to unload quickly & need to be protected from rain e.g. mattresses - Have a demountable body on a rigid lorry - The body fitted with landing legs for loading or discharge in a yard - It is detachable from the vehicle which carries it by a simple jack arrangement, the lorry chassis to be driven away to pick up another load

  12. Types of Unitisation • RO/RO Trailer - Semi trailers used as part of an articulated lorry combination which “rolls on” to a ship or a train and “rolls off” at the other end of sea or rail leg, continue its movement by road - Piggyback rail routes, movements through long rail tunnels, RO/RO trailers are alternative form of unit load to container - “Accompanied RO/RO”: tractor unit & driver go with semi trailer (short distance) - “Unaccompanied RO/RO” movements are used for long hauls by sea or rail e.g. New York to Chicago

  13. Types of Unitisation • Roll Cage - Most extensively used by the retail distribution industry - It comes in all shapes and sizes and is generally collapsible - Usually compatible for movement by machine - It takes up minimal space when nested awaiting collection - Very expensive & high maintenance - It requires good surface for loading & unloading - Susceptible to theft and even sold as scrap metal

  14. Example for Roll Cage

  15. Types of Unitisation • Rigid Cage (Rigid Steel Cage) - Used by many manufacturing companies which require a robust system of unitisation for moving stock and materials - Usually same dimension across the base as pallet - Can be stacked in vehicles, racking, on the floor (warehouse) - Durable, machine compatible, easy to restrain

  16. Rigid Cage

  17. Types of Unitisation • Skips - A simple form of containerisation - Slow and spasmodic loading - Full load can easily lifted by tipper lorry for depositing at a suitable site - Normally for commercial waste, contractors’ spoil, domestic refuse from blocks of flats

  18. Example of Skips

  19. FACTORS INFLUENCING THE CHOICE OF ROUTE OR MODE OF TRANSPORT • The Nature of Goods • The Time Factor • Route Availability & Frequency • Contractual & Other Limitations • Strikes, Wars and Climate Factors • Limitations of the Modes of Transport • Limitations of the Terminals, including the efficiency of agents

  20. The Nature of Goods • Can affects choice of transport • Some goods are: too broad; too high; too long; too heavy to send by road • Weight is very important I travel by air • Size of railway tunnel decides the carriage by container i.e. 8 ft(w) X 8.5 ft (h) • Goods nature: heavy lifts, value, pilferability, fragility, perishability, livestock, hazardous cargo

  21. The Nature of Goods-Heavy Lifts - Some problems of indivisible heavy loads: weight; dimension (length, width, height) - These problems require specialist heavy lift haulier to handle - Special heavy lift is required to handle indivisible heavy load e.g double steering vehicle - Major ports have either fixed or floating heavy lift facilities - Vessels carrying heavy lift has own facilities (gear) to handle such cargoes e.g. ‘jumbo’ derricks

  22. The Nature of Goods-Heavy Lifts • Pick up and put ashore is another problem as quays have a maximum load capacity • Nowadays, RO/RO method is used to handle heavy lifts • Pre-booked at true weight is absolutely important to justify cranes and derricks capacity (SWL-Safe Working Load) • Most liner tariffs & port charges take into account a heavy lift surcharge • Heavy lift on railway locomotive is securely lashed • Dimensions not a major problem for carriage by sea or rail transport • For road transport, demensions are fairly crucial

  23. The Nature of Goods-Value • The more valuable, the higher freight charges • The speedier the transit, the greater the saving i.e. less interest on capital & lower insurance premium • Security is important for high value cargoes • Exporter must select a transport system with the smallest number of intermediate handling • In certain cases, specialist security service may be used i.e. police ascort

  24. The Nature of Goods-Pilferability • Goods need not be very valuable to be pilfered • If goods are desirable and readily accessible, it is sufficiently tempting e.g. packed chocolate • Once opened, it may suffer further pilferage due to constant attraction • Containerization has certainly helped reduce such losses

  25. The Nature of Goods-Fragility • Fragile consignments require special packing & handling e.g. glass • Some electronic equipments which is highly sensitive to engine vibrations, turbine vessel is recommended rather than a motor ship

  26. The Nature of Goods-Perishability • Refrigerated & cool chamber facilities are required to handle perishable goods • Item such as newspaper & fashion wear are best sent by air freight • Road haulage operators carrying perishable foodstuff under refrigeration to and/or through most European states must comply with the European ATP agreement • ATP regulations specify the minimum ‘lay down’ temperature (must maintain) and transit time must not exceed 48 hrs

  27. The Nature of Goods-Perishability • All frozen meat product require official Veterinary Certificates • All imported food are subject to inspection by Health & Food Inspectors employed by the local authority

  28. The Nature of Goods-Livestock • Most large airports have their own livestock reception areas including Veterinary Services • In ship, livestock is usually carried as deck cargo • Veterinary certificates to show animal has a clean bill of health have to be provided • Vaccination Certificates may be necessary • Exporter must ensure compliance of animal importations regulations

  29. The Nature of Goods-Hazardous Cargo • Board of Trade regulates carriage of dangerous goods (DG) by sea in “Blue Book” • International Maritime Organization (IMO) come out more recent four-volume International Maritime Dangerous Goods Code (IMDG), the regulations for carriage of DG by road • ADR is international agreement on the carriage of DG by road (1968); on road traffic in road tankers & tank containers (revised 1992); classification, packaging, labelling of dangerous substances in packages regulations (1984)

  30. The Nature of Goods-Hazardous Cargo • Information required for full compliance:- - Name of Vessel - Ports of loading & discharge - Number, kind & size of individual packages and total quantity (gross & net weight in kg) - Proper shipping name of substance (as defined in IMDG code) - Classification of substance (IMO) e.g. poison gas - UN number of substance

  31. The Nature of Goods-Hazardous Cargo • Information required for full compliance (c’ntd):- - Properties of substance - Marine pollutant (if applicable) - Packaging group - Flashpoint (if any)

  32. The Nature of Goods-Hazardous Cargo • Information submitted on DG Shipping Note incorporates DG packing certificate signed by packer & exporter • Certificate states that - Container fit to received goods - No incompatible substances packed into the container - All packages were inspected & found to be sound - Container & packages are properly marked & labeled - Packages have been properly secured in the container - DG declaration has been received and completed for each dangerous consignment packed in the container

  33. The Nature of Goods-Hazardous Cargo • If DG only part of the loads (in container), it normally stowed close to doors area • To mark & label all packages (tested) with IMDG code showing the contents, the principal and secondary hazards • Container needs to be marked on each side and both ends including the class number & the UN number • Notify carrier at pre-booking for dirty substances

  34. The Nature of Goods-Hazardous Cargo • Hazardous Cargo Description - Corrosives - Poisons - Substances liable to spontaneous combustion - Substances liable to react on exposure to air or water - Substances with a low flashpoint - Compressed gases - Radioactive materials - Magnetic materials

  35. The Nature of Goods-Hazardous Cargo (HC) • The department of Trade & Industries ‘Blue Book’ & regulations cover carriage of HC by sea, detailing: - Inner & outer packaging - Amount per package - Marking - Stowage - Amount per stow - Type of vessel which can carry such cargoes

  36. The Nature of Goods-Hazardous Cargo (HC) • HC cargo must be pre-booked & to issue three-part stowage by Cargo Superintendent loading the vessel - 1st copy – send to the docks & advises when the cargo is to be delivered - 2nd copy – returned to the shipper and then forwarded to the docks with the cargo - 3rd copy – retained by the cargo superintendent

  37. The Nature of Goods-Hazardous Cargo (HC) • DG shipment requires a seven page DGN (Dangerous Goods Note) • Shipper responsible to give all the relevant details: correct technical name; hazard & UN number • Shipper also responsible to ensure all DGs are properly packed & labeled (marked with technical name & UN number) so that it receives safe handling & proper stowage during transit • ADR is the European agreement concerning the international carriage of DGs by road • ADR lays down standard for packing & labeling of DG and also special conditions covering the vehicle e.g. tankers – to be certified that it has been built & maintained to ADR standards

  38. The Time Factor • Affects the choice of a mode of transport • Speedier transit means less warehousing at destination e.g. 2 weeks replacement of stock vs 4 re-order points • Re-order points is a minimum stock level of which new orders must be placed • If speed or transit increased, minimum stock level can be reduced, saving warehouse space & inventory costs such as depreciation & finance

  39. The Time Factor • Possible gain arising from earlier use of goods e.g. machinery, deliver early (speedier transport), install & use early • Emergency shipment to facilitate the repair of a ship awaiting of spare part is an obvious example of time factor (paramount important) • New generation of container vessel can actually offer faster delivery than their latest competitor, the Trans-Siberian railway • Combination of both sea & air services e..g. Flying Tiger Service – Far East to San Francisco (by sea), San Francisco to Eastern USA (by air)

  40. Route Availability & Frequency • Another factor which is changing as new services begin operations to more & more destinations • Routes reflect traditional patterns of transport • New concept & transport system can give impact on routes • E.g. Development of container ship – fast turn around, short sea routes & trade-diverting activities to avoid costly patterns by using unimportant ports

  41. Route Availability & Frequency • Growing number of alternative routes/modes which are now available to most destinations • Transport revolution in the past 3 decades emphasis on increasing capacities of various modes, unitisation & speedier turn-around at termini • Growing application of computers (IT) to carrier & forwarding operators reinforce competition • Increasing in ro/ro operations at smaller ports and short sea crossing contributed to route availability

  42. Route Availability & Frequency • Transhipment, unitisation, modern aircraft, air/sea combination services contribute to speedier turn-around at termini and resulted more voyages per year • Comprehensive & up-to-date freight guide is appreciated • ABC Freight Guide gives a comprehensive coverage of road, rail, sea and air services in all ports of the United Kingdom

  43. Contractual & Other Limitations • Agent must consider principal’s wishes as regards to route • Non-conference vessel may break contractual obligations with a freight conference • Some country have flag discrimination i.e. cargo had not been carried in a ship of the nationality of the importer not allowed to berth • Compliance of the letter of credit (LOC) requirements • Bank refused to accept an airway bill instead of bill of lading due to non-amendment of LOC (sea to air for urgent shipment)

  44. Strikes, Wars and Climate Factors • Major dock strikes could interrupt transit of goods • Civil wars, political embargoes could influence the choice of route or mode of transport • Ice, monsoons, fogs or hurricanes may delay or closure at certain ports

  45. Limitation of the Modes of Transport • Rail has a set of track or permanent way • Air freight charges are high • Sea transport can cause extensive delays due to adverse weather, fog or icing • Road transport (for goods & passenger) compete for space and priority

  46. Limitation of the Terminal, including the efficiency of agents • Climate & tidal factors may influence both in the port approaches & along the berth • Relationship of the port to natural trade routes both by land & sea i.e. nature of hinterland & the respective transport links such as railways, roads, canals, pipelines or rivers • Containerization & development of multimodal operations, conference ports retain traffic.

  47. Limitation of the Terminal, including the efficiency of agents • Availability of freeport facilities are ideal for both entrepot & transhipment traffic • Cheap bunkering is another factor which attract vessels to a port • Cargo handling & storage facilities vary enormously even between major ports • For example, America ports have 1st class specialist cranage facilities for ore discharge or container handling but they do not provide appropriate crane for general cargo handling

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