International Logistics Management & INCOTERMS | All Modes

Welcome to this course.

Let me share some interesting facts with you about the international movement of goods.

These will be very, very interesting for you.

Do you know what the most shipped goods internationally are?

Which goods are shipped internationally through sea, especially by sea, but also by air?

You might have tried to understand and know about these products.

Let me tell you, what are these products that are shipped the most?

The first item that is shipped the most is the furniture. In the furniture business, you find very innovative kinds of DIY kind of furniture products, the types that you get in Ikea, or many of the laminated wood furniture that is coming from China to different countries.

It is packed very innovatively, taking up very little space.

And the design is very, very innovative that you can actually create the complete furniture with simple tools.

These are DIY furniture which are coming from China and many other countries.

A lot of innovation has been done in this product.

What is happening is that due to the mass scale production of furniture, it is being produced in some of the very high-producing countries, and it is becoming very, very cheap to transport because of the innovative packing and the knockdown conditions, which are there for this furniture.

The second product that is most shipped is electronic goods.

Why electronic goods?

Electronic goods production requires a very large scale of production, whether it is laptop computers, whether it is mobile phones, whether it is decorative lighting, whether it is any kind of semiconductor and semiconductor products, or hybrid electronic goods.

They require a very large scale of production, which is dictated by the global value chains that have been developed. Presently, we have these global value chains, which are in favor of countries like China and many other countries in the ASEAN region, that is, in the Asia Pacific region.

Electronics remain the most demanded goods and the most shipped goods after furniture.

The third item, which is most shipped internationally, is clothes, readymade garments, or textiles.

Household makeup.

Many items come under the category of clothes and textiles.

They are the third most shipped items.

Finally, the fourth most shipped item, the fourth rank to the item that is given for the most shipped goods, is the food items.

Again, food production, especially processed foods, the technology has advanced to the level that the packaging of the food has made it possible to produce and export internationally from certain high-producing countries, which also include sweets and savouries like chocolates and many other items.

Food remains the fourth most shipped item internationally, which is exported and moved internationally.

These were the most shipped goods, which are moving internationally in a very, very big way.

Out of all the goods that are shipped internationally, 90% of the goods are shipped by sea.

That is very, very interesting.

Not by air. Of course, air is very, very costly, and the technology has made sea transportation so cheap.

We have very, very large ships that can carry goods internationally almost to any destination anywhere in the world.

It is possible to transport goods by surface.

The result is that around 10% of the world's GDP now floats on the sea.

That is very, very interesting.

You are aware that the barcodes, which we are so much used to when we go to supermarkets, we seen on every product, every packaging, you will see barcodes.

The codes were first introduced in the transportation industry.

The use of these barcodes started in the transportation industry and moved to the retail supermarkets, which you see today.

The biggest ship, as I just told you that sea transportation is very affordable because of the very, very large ships that are now manufactured, which are floating on the sea.

The biggest ship can carry up to 24,000 twenty-foot containers.

Now, every 20-foot container can carry almost 15 tons of cargo.

You can imagine we are talking of the sizes of the ships of the order of something like 300,000 metric tons.

300,000 metric tons of ships, when you compare it with the 250 tons that are average train can carry, or the 20 tons that are large-sized truck can carry.

You can understand the importance of these big, very big ships in making the transportation of goods so cheap internationally.

The significance is huge for these biggest ships, which are floating on the sea.

Friends, do you know that the maximum size of the ship that can pass through the Panama Canal, which is the man-made waterway to reduce the distance of movement of the ships from, uh, you know, going to get around the whole continent to make the short way?

You have the Panama Canal, you have the Suez Canal, and you have some more man-made channels in the world, the most famous being the Panama Canal and the Suez Canal.

The maximum size of the ship that can pass through is of the order of almost 12,000 TEU.

That means 12,000 twenty-foot containers.

We are talking of, you know, very, very large kinds of ships, which the logistics can support, the sea logistics floating on the sea can support.

These ships, which can pass through the man-made channels that are being widened further, the bigger ships will be able to pass through in the order of something like 18,000, also in the very near future.

They are getting bigger and bigger, and the result is that the logistics cost is becoming more and more affordable.

But yes, of course, we are seeing the very turbulent times in the present times when we are talking of the Russia-Ukraine war or the pandemic, because of which the whole balance of the container shipments has been disturbed, and we are finding that the container rates are almost double the prices at which they were available in normal times.

We are passing through very difficult times, which may be a short period.

It may become normal very soon.

We'll find that again, the international logistics by sea routes would come to a very high level of affordability, which at present is disturbed.

Okay. You know, these are some of the very important facts. In addition to the facts that I just shared with you, it is very interesting to note that the world spends around 8% of its GDP on logistics costs, which include international logistics as well as inland logistics, that is, the internal logistics of the country.

The total cost of spending on logistics for the world is almost 8%.

Some countries spend more, some countries spend less than 8%, but the average is 8%.

It should also be known to you that there are almost 835 active seaports and inland dry ports on this planet. Logistics is supported by these 835 active seaports and dry ports.

The largest seaport in the world is Shanghai Port, which is in China.

There were a few very interesting facts that I wanted to share with you.

Hello, friends.

Welcome back to the course.

To start this course, I am planning to take the take-off session.

This particular video is the takeoff session where I will tell you a little bit about, uh, very general information about the international logistics industry and the logistics industry in general.

What are their features?

What are the characteristics of the industry, and what is the linkage's relationship with the other industrial sectors?

About the course, the linkage of the course where this course fits into the understanding of the international operations, overall operations.

Where do the logistics management and the contents of this course fit into?

Those are things I will take up in this take-off session.

I feel that this take-off session will be very, very useful for you in the overall understanding of this course.

Let us look at what things are that require international logistics.

What factors impact the demand and supply of international logistics?

Let's start with that.

The need for international logistics is a function of the strength of the demand.

What is the strength of the demand?

What is the demand available in the industrial market?

For example, if you look at early 2020 and 21, what we found is that demand had vanished for international logistics because of the pandemic.

Although essentials were being exported, they were moving, but the demand was not normal, so availability was there.

Ships were available cheaper, but at the same time, getting the shaft for the running of the ships was very, very difficult.

Everything came to a standstill.

The demand-supply situation became so bad that the impact of that is felt even today, and the prices of the containers are still not what they were in normal times.

They are very, very high at present.

Factors that, uh, are related to the demand of international logistics and the demand of a particular service or the company that is offering these services depend on the price, attractiveness, and the price-conscious market is there.

What is the price difference that matters?

It has a direct bearing on the cost of the goods being exported and overall transportation costs.

Not just the freight rates, not just the air freight or sea freight rate, but also what are the other costs which are involved, the so-called trade transaction cost, which also includes the cost of clearance of the goods, handling of the goods on the port and, uh, loading unloading of the goods and sundry expenses, some port charges, some customs examination charges.

There are several types of costs that are involved in the overall transportation, and also insurance costs, protection of the goods from damage from sea perils.

That is an additional cost, not to mention the import tariffs and taxes at the port of discharge in the buyer's country.

All these things add up to the trade transaction cost, which, uh, the idea is to reduce it, to bring it to the minimum possible.

These things dictate the nature of international logistics, the operations of international logistics, the applicability of technology, the way international logistics is done, and the way you choose the shipping lines or the mode of transportation.

All these things are functions of these factors.

We all know, whatever the functions are, whatever the factors are that dictate the overall international logistics management.

We know that the most popular mode of transportation is transportation by sea, especially from the point of view of the costs which are involved.

Seaborne transportation accounts for almost 90% of the overall international movement of goods.

That's a huge percentage.

It means the monopoly remains in sea transportation, mainly because of the lower costs, although the time taken by sea transportation is higher than the other modes.

Uh, it is quite cheap.

We have very large ships, so-called mother ships, uh, of the order of 300,000 metric tons.

The kind of cargo they carry, the economy of scale brings down the cost of transportation per unit of the goods moved from one country to another country.

This is the situation. If we look at the characteristics of international logistics management, we can talk about it.

What we find is that the cost of operations is very, very high. Fuel costs are there. Vessels, the vessels that are moving the goods from one country to another, are floating on the sea.

The capital cost is very, very high.

Because of the competition, despite such high capital costs, the margins are low for the shipping companies and the shipowners. In this industry, there is a shortage of people who know things and have complete knowledge of international logistics.

Talent is not easily available.

Talent is available at a premium, so there is a shortage of talent.

Then there are infrastructure bottlenecks. Within the countries, depending on uh uh one country to another, you will find a lot of differences in the infrastructure which are available for logistics.

For example, India is now investing a lot in the overall logistics infrastructure, but there are still many, many countries where there do not exist modern ports, and they do not have very large logistics hubs in those countries.

Even dry ports are not there.

Inland ports are not available.

Multimodal transportation becomes very difficult in those countries.

Let me tell you, uh, in multimodal transportation, you can understand that in developed countries, whether it is international logistics or inland logistics, almost 90% of the cargo moves by containers.

Through multimodal transportation.

There are countries where this percentage is very, very low. In India also it is something around 50%.

50% of the domestic cargo moves by containers, international cargo, of course, most, uh, a very large quantity of the export cargo moves by containers.

In so many, many countries, you will find this percentage is low, which indicates that the infrastructure bottlenecks are there in those countries concerning international logistics.

In this industry, what happens because to the competition and the nature of rivalry among the ship owners, shipping companies, and shipping lines, there is a very large and frequent consolidation that happens through acquisitions, mergers, and alliances.

For example, the company called BW Shipping was uh, formed by the merger of Bergeson of Norway and World-Wide of Hong Kong.

BW Shipping is a very large player in the tanker business, a very, very large company.

This was formed by the merger of two very big companies.

This kind of consolidation acquisition is very, very common in this industry.

And clients basically expect? The client's expectation is very, very strong, very demanding.

The clients are very demanding.

They want the industry to invest in technology, the latest technologies, sensors, the internet of things, and even, uh, the metaverse technology based on blockchain.

Consumers want to benefit from these technologies by investing in the industry.

The industry needs to invest and provide clients with very high, demanding, ever-demanding clients a stop solutions to all their international logistics needs.

This is the solution for this industry.

Now, if we look at the case of India, let's take this case study, which talks about the logistics environment scenario in India.

If we talk about India, as we already mentioned to you, uh, in India uh, the logistics industry has still not developed as much as the potential exists.

India is a large country that has very strong requirements for inland logistics as well as international logistics.

The industry remains at the stage of infancy, so it is just taking off.

There are bold, uh, targets of the Indian government, uh, to bring the logistics industry to world standards by 2025.

Overall logistics market, although in India, is growing very fast at the rate of CAGR of something like 12% in 2020.

It is still moving in this direction.

The main demand growth in India, for example, comes from the manufacturing units for distribution nationwide.

India being a very, very large country, there is a lot of demand for manufactured goods to move from one place to another, coming from the retail sector in a very big way, or the FMCG products, and very importantly, in the fast-emerging e-commerce retail.

These are the areas where demand is coming in India.

If we look at the Indian example in India, the spending on logistics is uh, percentage-wise, percent of the GDP is quite high, which means the cost of logistics is higher than the world average.

If we look at the numbers, India spends approximately 14.4% of its GDP, while the world average of developing countries is just 8%.

There are a lot of, uh, bottlenecks, there are a lot of lacunas.

And, uh, the need is there for many infrastructure projects, which the Indian government is investing in.

They have very ambitious targets and projects that are ongoing.

In India, if we look at the logistics sector for domestic use, the main market segment is 3PL, that is, the third-party logistics, which is worth approximately US dollar 300 billion as recorded in the year 2020.

If we look at the, uh, specific sector in the logistics, which are comprising of the warehousing and the freight forwarding, that means the transportation main sectors.

The growth rate of transportation is a little higher at about 12%, while the growth rate for the warehousing, the demand for warehousing, the development of warehousing, the growth rate is CAGR 10%, a little less than the growth rate of transportation.

This is the situation if we talk about the growth rates in India, which are very healthy. Logistics is growing in a very big way in India.

If we look at the recent developments and the government initiatives, which, you know, indicate in many of the emerging markets, the same thing is happening.

In India, the introduction of GST, that is, the Goods and Services Tax, has, uh, been proven to be a milestone in the history of international logistics.

If we talk of the Indian industry, of the logistics.

Like many other countries, most of the countries India has also felt in recent years very big blow due to the COVID-19 pandemic. Still, the government has very strong projects, very capital-intensive projects.

A major push is there for the infrastructure logistics infrastructure in India, which includes the development of the ports, the road connectivity, as well as developing very large logistics parks.

A significant investment, uh, uh, sought in this kind of project is through FDI, foreign direct investment by international players.

For example, uh, FDI in ports is allowed, uh, by the automatic route in India, uh, up to 100% of the total cost requirements.

These are the policies, and policy support is there. There is a major need in India for international logistics professionals, who are still in short supply.

This is the case and scenario of the Indian logistics sector.

Now, friends, let us also talk about one very interesting case study about the situation of international logistics, the contemporary scenario of international logistics, and the logistics sector in general in India.

This will give you an idea of how the logistics ecosystem exists in different countries and how it is connected with international logistics, which is very important to understand.

If we talk of international logistics and the logistics sector in India, we have identified certain key elements that are part and parcel of the logistics growth and logistics industry in India.

One of the key elements of the logistics sector policy of the Government of India is the program and the mission called Atmanirbhar Bharat, which means India depending on manufacturing within the country.

This mission is very important in the present context of global challenges like the coronavirus pandemic or countries invading others. These concerns have necessitated countries like India and many other bigger countries to look inward and to manufacture things that are essential for consumption within the country.

The logistics sector in India is the key to the economic growth story of India, which is a developing country. There is a very important focus on economic growth, without which extreme poverty cannot be eradicated from India.

There are a lot of people below the poverty line who have to be brought into the mainstream so that they can sustain and live with dignity. This is very important for India.

Another area that has been identified by the Government of India is that the international logistics sector and its development is the key to countering China in the economic context, the international trade context, and the defense of the country.

Recent events in India, such as the border dispute between India and China, have forced India to consider the international logistics and logistics sector very important for defense as well as for the economy.

Another important finding of the expert group on logistics is that the international logistics and logistics sector in India is key to India's position in South Asia. Being the largest economy in South Asia, it becomes very important for India to set a good example for other members of South Asia and lead them.

India's leadership position is not possible without the overall development of India's logistics sector. Export competitiveness has been identified as the major beneficiary of the logistics infrastructure and the efforts to reduce the overall logistics cost of moving goods within the country and from the borders of the country for exports as well as imports.

The fact is that in the recent past, due attention was not given to the Indian logistics sector. As a result, India is spending a very high percentage of its GDP on logistics, which is way above the world average.

Indian businesses have been suffering due to rampant inefficiencies and the high cost of moving goods within the country. This is also impacting consumers.

This lack of infrastructure is causing high costs and difficulties in improving the economic scenario in India.

There is a need for fresh investment, both from the Government of India and from the private sector, domestic as well as foreign. Policies are being made in India to attract this investment, which is required very urgently. We cannot wait any longer.

India has a very large population that has benefited from economic development and the opportunities that exist in the present global scenario. Infrastructure projects will help reduce logistics costs within India as well as for the international movement of cargo.

For example, if we look at the international ranking of India in the logistics sector, as per the 2018 World Bank Logistics Performance Index (LPI), India’s world rank is 44, compared to China’s rank of 26, the United States' at 14, Singapore's at 7, and Germany's at number 1. Large economies are doing much better than India, but India has the potential to emulate this performance.

As per the 2016 LPI, India’s ranking was 35. The situation has since become worse. India needs to reverse its declining LPI ranking. You can see the details about India’s different performances on the World Bank website.

About the general scenario of the logistics sector in India, we find that it can be broadly classified into three major areas: transportation, distribution, and storage.

When we talk of transportation, we are referring to high-speed movement of cargo at affordable prices, bulk movement of cargo in modern ways, and the distribution infrastructure, which requires a lot of distribution points, private sector investment in distribution, and the ability to distribute immediately at the points where main transportation carriers can lift or drop goods. These distribution channels have to be world-class.

Finally, a very important third part of the Indian logistics sector is storage facilities. Large logistics hubs with very large warehouses are required.

For both distribution and storage, very large logistics parks can do wonders. This is already happening in India. Investment is coming into most metro cities as well as tier-two cities. Spaces are being allocated for logistics infrastructure, mainly for large logistics parks.

As I have just mentioned to you, the recent development in India, which has a direct impact on international logistics management as well as the logistics sector in India, is that the Government of India has framed policies and initiatives to boost, in a major way, the infrastructure for logistics.

Several regulatory measures have been identified to improve logistics inefficiencies in India, and there has also been an integrated approach to deal with logistics bottlenecks within the country.

India is a very large country. These bottlenecks are plaguing Indian business, affecting the cost of movement of goods, and raising the final price of goods for consumers.

An integrated approach comprising movement, distribution through logistics parks and hubs, as well as very large warehousing for storage, is being adopted.

Keeping this integrated approach in the three major dimensions of the logistics sector in India, initiatives are being taken, and there is a lot of push by the Government of India.

Let us look at what the challenges are to these initiatives, the Government of India’s initiatives, and what challenges are being faced by the logistics sector in India.

What are the major ones?

Let us look at major bottlenecks, including the poor integration of transport networks, information technology, warehouses, and distribution facilities. There is a lack of integration that has to be reversed, and this integration has to be provided. An integrated approach is the need of the hour.

Different regulations and guidelines exist in different parts of the country. India is a very large country. It comprises 28 states, as well as Union Territories. In different states and union territories, we have different regulations and guidelines.

There has to be synergy between these regulations in different parts of India. It is very important.

There has to be a unified regulatory mechanism for the overall logistics sector in India. That is very important.

A major challenge in the Indian logistics sector is untrained manpower. There is a lack of skilled people in this sector in India. Training and educational qualifications in this area have to be boosted, and they are being boosted. That is very important.

The logistics sector entities in India are mostly in the unorganized sector. The unorganized sector plays a very important role. The majority of small truckers have fewer than 20 trucks, which is very small, considering the size of the country and the scale of business.

This unorganized sector cannot bring in the efficiencies required for optimum international logistics and for reducing overall logistics costs in India.

Another part of the challenges of the Indian logistics sector includes a lack of training facilities and professional training, which are required for modern logistics management. Professional training is required.

Services provided by the unorganized sector are poor, often done by untrained people, whether in marketing or operations. The overall result is that clients are not happy. Poor client services do not help in the growth of the sector.

There are also not very good facilities available for logistics management. Lack of infrastructure is a real bottleneck in the logistics sector of India.

The absence of specialist equipment like proper refrigerators, goods handling equipment, ERP systems, and the latest technology is a big gap. These kinds of equipment can not only increase the efficiency of handling goods but also reduce the total logistics time taken for goods to move from one part of the country to another.

Modern equipment, which is very sophisticated, is not being deployed. It is either not available or its cost is prohibitive for the unorganized sector in India.

The absence of specialist equipment, specialists for logistics management, and the required systems is a significant challenge.

Finally, there is a lack of research and studies in this sector—the kind of field studies and data required about the Indian logistics sector to identify gaps, inefficiencies, and areas of concern that need rectification.

This is not happening. This kind of research is not being undertaken.

Friends, if there are problems, there are solutions also, which have to be found out.

Some of these solutions that are suggested here include things that have the potential to drastically change the logistics sector scenario in India.

Many of these things are being done by the government as well as private initiatives. A great emphasis and investment are required to build world-class road infrastructure, integrated rail corridors, dedicated freight corridors, and modern cargo facilities at the ports, dry ports, as well as seaports.

This emphasis and this kind of investment are a must, and the time is running out.

These initiatives and investments have to be done very fast. In tune with the requirements of the time, new government policy initiatives are there, which are like, uh, providing for the logistics parks, which should be set up and accorded the status equivalent to special economic zones.

It is already happening.

For example uh, the logistics park in Mundra by Adani Group has a special economic zone, also in the overall infrastructure of the Adani Group.

Allows for the open arm and a welcoming entry to foreign training and research institutions in the areas of logistics and supply chain.

Lack of training, lack of professional knowledge, and lack of research have to be addressed.

This gap has to be filled by allowing open arms and welcoming entry for international players and educators.

As per the new government initiatives, Indian government initiatives, there is encouragement for foreign investment in the logistics infrastructure, modern processes, and technology.

The kind of equipment, the kind of machinery, the mechanized ways of handling the goods at the dry port, at the CFSs, at the seaports, require a lot of capital.

India should welcome the foreign investment and not only welcome, it should encourage and facilitate the movement of incoming foreign direct investment in these sectors.

Now, some of the very, very important solutions require immediate attention, and they have the potential to change the great logistics scenario in India.

New modern storage infrastructure development is required for perishable products.

These are the areas of attention. More land needs to be committed to the warehousing facilities as well as the logistics facilities in the major metros, the primary markets, and the secondary markets.

Everywhere there are industrial activities, these kinds of, uh, commitments are required for the land because otherwise, the cost of these projects will go up like anything.

Another solution is to focus on the research and development of both imported as well as indigenous technologies for the implementation of automated and sophisticated distribution, transportation, and storage solutions.

What kind of role can be played by the international players in the private sector, as well as in the government sector?

Now, coming to the prospects of the logistics sector in India, India has the potential to adapt better than others and early in the timing of the new technologies that are emerging, like blockchain technology, artificial intelligence, and smart supply chains, to improve the efficiencies within the country as well as in the international market for Indian goods.

Use of these technologies to comply with the environmental concerns, which I just talked to you about in the last section, has to be used in such a way that it's a win-win for the planet as well as for humans.

India should welcome and encourage foreign direct investment FDI in new technologies in India

itself, and have green logistics, climate-friendly logistics. Development of reverse logistics, including disposal of environmentally unfriendly products.

This kind of reverse logistics needs special focus, both by government initiatives as well as private initiatives.

Friends.

Welcome back.

Today, I am going to talk to you about recent Government of India initiatives, which are very remarkable. We are discussing these because these are the kind of initiatives that were very much overdue.

A lot of investment is being done both by the government as well as the private sector.

A very strong push is there for infrastructure development in India, especially in the logistics sector.

I will be talking about these initiatives, which are meant for the logistics sector in India, which badly require a lot of investment because, as I have already mentioned to you that India is spending a hell lot of money on the logistics sector, almost 14% of the GDP is being spent way above the world average.

Some of these very, very important infrastructure development initiatives of the Government of India are the Sagarmala project and the Bharatmala project.

I will talk about these projects, uh, in little detail in my, uh, further slides and things like dedicated freight corridors.

India is a very large country.

It requires a train infrastructure for moving cargo.

These dedicated freight corridors are very, very important.

These are some of the very important initiatives Government of India, among others, which are under different stages of implementation.

We will talk about little bit in more detail about these initiatives.

If we talk of the different projects that the Government of India is taking up, these are supported by some regulatory and process-related reforms, which are possible only through the Government of India.

A very strong thinking process has gone into really, honestly, and religiously thinking about, uh, reducing the cost of logistics in India, which has a lot of implications for the international logistics from India.

The regulatory and process-related reforms, among many others, the most important ones are paperless exim trade processes through, for example, things like e-Sanchit or faceless assessment through Turant Customs.

The customs processes and faceless assessment are possible online through these customs. The introduction of mandatory electronic toll collection systems, so-called FASTag, has drastically reduced the waiting times on the Indian highways.

Now, other reforms have been introduced, like the introduction of logistics ease across different states.

India has many, many states, so the so-called "logistics ease across different states" in short, called LEADS.

This index has been introduced, and the scoring is being done for all the different states in India, so that the comparison can be made among the states that are performing better than others, and the introduction of GST, that is, goods and services tax.

These regulatory and process-related reforms have immensely contributed to increasing the efficiency of the logistics sector in India.

The target is that by 2025,

India is expecting to reduce the cost of logistics from the present more than 14% to less than 9%.

These are the targets. Talking about a very important index that has been introduced in India. that is the LEADS 2021 index.

If we talk about it, Gujarat, Haryana, and Punjab are some of the high-performing states that have emerged as the top performers in the LEADS 2021 index.

Haryana has secured the second position, followed by Punjab within the northeastern states and the Himalayan region, which is very, very important in the Indian context.

Jammu and Kashmir is the top-ranked, followed by Sikkim and Meghalaya. These states are performing very well, and they have a lot of potential. Delhi stands at the top rank among the Union territories. India is composed of states and union territories. Delhi is at the top among the union territories. Uttar Pradesh, Uttarakhand, and Jharkhand have witnessed a remarkable improvement in their ranks compared to the 2019 Index of LEADS and the rankings.  These states have emerged as the top improvers.

The LEADS index gives a competitive environment among states and union territories to perform better, as far as the logistics sector is concerned.

These are some very interesting and innovative initiatives of the Government of India.

Now, some of the key infrastructure projects that are being implemented in India are things like Western and Eastern dedicated freight corridors.

The target completion is 2022. Delhi Mumbai Expressway DME, the target is 2023. Sagarmala initiatives, phase-wise development will be taking place under the Sagarmala initiative of the road infrastructure, the port infrastructure, the logistics parks, and even the dedicated freight corridors.

It's a very big project and the development will continue till 2035. and the Delhi-Mumbai industrial corridor. DMIC.

What is it comprised of? It comprises the cluster development approach over the medium to long term.

Some of the clusters have been identified in Rajasthan in Gujarat, the states that fall on the major route between Delhi and Mumbai.

This industrial corridor is being implemented. MMLP, that is the Multi-Modal Logistics Parks network, is also under implementation.

Very, very important.

This has a lot of potential to reduce the logistics cost, and the target is in the medium to long-term future.

You will see these uh networks coming up and making a major difference in the logistics sector of India.

Talking about the dedicated freight corridor, the two corridors that are under development are the western and eastern freight corridors.

You can see here that, uh, this is the western dedicated freight corridor, and this is the eastern going towards Dankuni.

The development targets of these corridors are slated to be this year, that is, 2022.

And, uh, the 71% and 72% kind of progress, financial progress is already there.

And we will see the projects very soon under complete construction.

Now, another very important project is the Delhi-Mumbai Expressway.

This is being implemented on a war footing, which, uh, will reduce the time of travel between

Delhi and Mumbai because Mumbai is a very major international seaport and it requires very good connectivity with different capitals, state capitals, as well as the capital of India, that is Delhi.

This Mumbai expressway is, uh, one of its kind, and it is under implementation on a war footing.

And, uh, it is expected to be completed by 2023.

This will be a big project, almost 1350km, an eight-lane expressway.

Talking about one very, very major initiative by the Government of India that is the Sagarmala initiative, the status of the Sagarmala projects, uh, as of uh financial year 2020, projects under implementation are to be completed on a long-term basis, that is, by 2035.

Even at the current level, the project status can be seen here that, uh, out of a total, uh, investment of more than 2.12 lakh crore rupees, 80,000 crore has already been spent on these projects.

Progress is good.

Probably the whole project can be completed even before the target date, that is, 2035. Results of the projects that are there under this program, Sagarmala program, you will see that, uh, the results will be seen very soon of all these infrastructure projects.

And the major push by the Government of India.

Projects like port modernization or connectivity enhancement through roads, port-led industrialization, and coastal community development are some of the major focus areas of this Sagarmala project.

Then, talking about the Delhi-Mumbai industrial corridor.

Very, very important.

You can see here that the focus is on places like Rewari Phulera or Marwar Palanpur, Amli Road, Vadodara, and Gothangam. These are different clusters. It is a cluster approach; industrial clusters are on this corridor.

They will be connected very well through the Delhi-Mumbai Expressway.

Development, which is happening, has a lot of potential for employment for the very large population of the country.

This kind of investment is being made by the Government of India.

Some of the very important features of this project are also the multi-modal logistics hub and multi-modal transport hubs in places like Uttar Pradesh, the Multi-Modal Logistics Parks and Sanand, Gujarat, or the Pali Marwar industrial area.

The Industrial units, coupled with the multi-modal logistics hubs, are going to be game changers for India as far as the logistics scenario is concerned.

Talking about multi-modal logistics parks, which are very, very important for reducing the cost of movement of goods within India, as well as for international logistics management.

The Bharatmala program, which mainly comprises these MMLPs, that is, the Multi-Modal Logistics Parks, includes the development of almost 35 MMLPs throughout the country.

You can see here that they are located in different parts of the country.

These MMLPs will be very, very important for the overall smooth movement of goods through multi-modal logistics parks. In India, containerization of the domestic cargo movement is of the order of 50%, which is way below the world average of the industrialized countries, which is more than 90%.

There is a lot of scope for these MMLPs and the containerized movement of domestic cargo, which has the potential to drastically reduce the cost of logistics.

Friends, in this case study on the logistics sector in India, what are the key takeaways?

Let us look at those things.

In this section, which focused on the case study of India, things that are very, very clear and these things are very much telling about the logistics requirements for the robust development of the logistics sector in any country, are that in India's logistics sector, there is great growth potential.

India, being a country which is spending a hell of the money on logistics and containerization level that is low compared with the world average.

A lot of potential exists for growth. India's logistics costs, as I have just mentioned, are among the very highest costs in the world.

It is a matter of concern, and it is a matter of introspection also. What is going wrong, what has gone wrong in the past, and what right things are being done now?

What is the future scenario of logistics in India?

Whether we will be able to optimize the cost of logistics within the country, as well as at the ports and the airports where the goods are being received or being sent from India.

Many new initiatives of the Government of India, with the investment from both the government as well as from the private sector, and their full participation, are on the cards with the very impressive progress.

India is at the cusp of a logistics revolution for the country and has entered into the bandwagon of the most efficient logistics industries in the world.

Hi there!

I hope you are doing well and making great progress in this course.

I wanted to take this small moment to congratulate you on your remarkable progress in this course.

Your dedication and commitment to learning have truly impressed me.

I have been following you and your journey closely, and I must say, I'm delighted with the efforts you are putting in.

As a token of appreciation for your hard work, I would like to offer you a complimentary copy of my recent book in the similar topic that you are learning in this course, which I believe will further strengthen your learning and your grip on the course.

You can download this PDF copy of this book from the resource section of this lecture.

This course is part of the VJ Export Import Mastery Courses Series, a collection of 28 different courses targeting the area of export management, designed to equip you with the knowledge and skills needed to excel in the field of export and international trade.

On my part, I am committed to helping you expand your learning journey by providing access to more similar courses in the series, but at the same time, on your part, I have a small request for you as well.

Your feedback is incredibly valuable in refining this course and ensuring it remains world-class, and it is refined to its best.

So I kindly ask you to leave a rating for the course along with your honest feedback, if you have not yet done so. Your input will help me continue to improve and tailor the course to meet your needs and those of future learners.

Thank you once again for your dedication and enthusiasm.

Keep up with the fantastic work that you are doing, and remember, I am here to support you every step of the way.

Together, let's continue on the journey of learning and growth.

Welcome back to the new session of our comprehensive course on international logistics management. In this upcoming series of video lectures, we will delve into the multifaceted world of international logistics, exploring its scope, significance, and the evolving landscape influenced by technological advancements. The session will highlight key topics such as the scope of logistics, the growing impact of international trade, and the objectives and importance of logistics in the global marketplace. We will explore insights into logistics costs, the concept of green logistics, and how modern thinking is reshaping the industry towards sustainability. As we embark on this journey, we will unravel the complexities of managing international logistics, addressing challenges, and seeking innovative solutions for a sustainable future. So, let's dive into this session and unlock the knowledge that will shape your understanding of international logistics management.

Let us now go into the course with this first session, and let us see what our objectives are with this section.

In this section, uh, introduction to the International Logistics Management, the topics that are covered are the scope of this course.

Basically, whatever I have discussed in the earlier session here, I will be talking about the idea of logistics, which are the things that come under the scope of logistics.

Those things I am going to discuss which are a little different from what I have already discussed in the earlier videos.

I will also be talking about the increasing growth of international trade, whether logistics is affected by this growth, or the growth of international trade is happening because of the logistics, because reducing cost and reducing the time of movement of goods is also helping international trade to grow.

Those things I'll be talking about. I'll also be covering this in this session.

What are the objectives and importance of logistics in international trade?

Insights on logistics cost, I will also discuss what the real objectives of logistics management are, understanding what we are making, and what we are trying to achieve.

Herein, I will also be talking about the impact of logistics on the environment and the concept of green logistics, and the value chain.

These things we are going to discuss in this particular session.

Let us start this session.

The scope of logistics management in general, and international logistics in particular, is characterized by an expanding scope.

Why?

Due to the growth of international trade.

So, as I have just mentioned to you that as the industrial trade is growing, the importance and the functions of the international logistics management are increasing, and there is a reverse impact also.

As international logistics is becoming more and more sophisticated, more efficient, trackable, and more one-stop solutions for the clients, the growth of international trade is increasing.

It's a two-way impact.

The major areas that are covered in the scope of international logistics are the ability to forecast customer demands and international customers.

Depending on the world events, like the war that is happening between Russia and Ukraine at present.

How is it impacting the customer demand? How is the balance shifting of the demand from one country to another country?

What are the forecasting possibilities of the landscape of customer demand?

Those abilities to do that are part of the scope of international logistics.

Then, the areas related to the strengthening of the communication channels are considered.

What is the meaning of this, that this operation is on an international level?

How fast can the communication move from the port of origin, port of loading, to the port of discharge, or from the place of origin to the place of final destination, and in between?

What kind of communication happens between the buyer and the seller?

Communication happens between the logistics operator, multimodal transport operator, or the people handling the goods.

Port authorities, customs, whether this communication is available on the electronic data interface?

Communication, the protection of that communication, the robustness of that communication, and the strengthening of that communication are part of the scope of this international logistics, which actually has to be achieved. Maintain the distribution channels.

The main part of marketing, any kind of marketing, whether domestic marketing or international marketing, is the four Ps of marketing.

One of the major Ps is the place.

Place relates to the segmenting, targeting, and positioning and distributing the goods at the right time, at the right place, in the right quantity, at the right price.

Those distribution channels, whether the understanding of the international logistics management can maintain those distribution channels, or support those distribution channels.

This is part of the scope of this international logistics management. Then, the management of the inventory and the control of inventory.

If the logistics professionals can maintain those inventory requirements, can they predict those inventory requirements?

Can they make it available, those inventories at the right place, at the right points in the international movement of the goods, which are the points where inventory is required, whether it is required in between or at the origin, or the destination?

That control is part of the international logistics management, also, if not theoretically, but practically so.

Handling materials requirements is also one of the scopes of international logistics.

The material required for the movement of goods, packing material, or the material required by the manufacturers, the buyers in different countries, the material coming from different countries, and the raw material.

The satisfaction of the manufacturing units with the logistics management is that they will be able to provide the material just in time, so that there is no overriding cost of warehousing or inventory management.

Just in time, and there are no stockouts.

Whether those handling can be done by the logistics professionals efficiently, by the right communication, by the right distribution, whether it is possible, and to a great extent, depending on the abilities of the logistics providers, can they also take up the work of processing the orders from the clients, international clients from different countries?

And the orders can be large orders, individual orders, retail orders, wholesale orders, whatever the type of orders are, whether the logistics provider, the goods movement provider can also take up this responsibility of processing the orders and make it more efficient.

Make it a third-party logistics kind of environment, wherein the processing of the orders can be done more efficiently.

These scopes can be there for international logistics. Selecting the location for the plant and warehouse.

Whether the logistics provider can also help in the forward and backward integration, in the sense that it can locate the right places for manufacturing of the goods for the companies and warehousing of the goods throughout the world.

For example, if you take the example of DHL, DHL is a worldwide logistics provider for small and large consignments.

They can provide very deep services, including the right places for the final assembly of the goods, packing of the goods, and making available the right quantity of the goods at the right warehouses throughout the world.

Then, the procurement of the raw material for the companies. Can these third-party logistics providers provide the procurement of the raw materials at the right place, adding more value for the manufacturers? Managing the packing and packaging requirements. like what DHL does.

DHL has a joint venture with Dell Computers.

It provides complete packing and packaging solutions to the joint venture, and it provides the logistics of the laptop computers of this Dell DHL combined anywhere in the world.

Regulating the traffic and transportation.

Very important scope of international logistics.

The traffic movement of the charter ships or the liner ships.

Finding the right movement of the goods.

The right flow of goods in the right manner, in the right direction, is more efficient.

This kind of regulation can be a very, very important part of international management and creating the time and place utilities.

Not only the right place but also the right time, right quantity.

Time and place utility.

Providing the value for time and place utility is one of the major scopes of international logistics management. Consolidation of the clients with smaller quantity requirements, needing the consolidation to minimize the cost of transportation by containers, for example. Concept of less than container load and full container load.

Whether the logistic providers can provide this consolidation at all levels, even at the chartering level.

Charter ships.

Charter movement of goods by charter ships.

Can the logistics provider provide the consolidation of several clients into a single or multiple charter ships?

Handling of the reverse logistics, the returns, or the different types of reverse logistics, which I will be talking about later in this course, about reverse logistics.

Logistics handling can be an irritation for the companies.

A third-party logistics provider can also have this function as their scope.

Maintaining the customer service and supporting the post-sale services or the sale during the sale.

Can the logistics provider integrate with their functions so as to minimize the cost of the overall functions?

The overall scope of logistics management, not just the transportation movement of the goods, or not just of the warehousing, or not just of the inventory management, but the overall solution, end-to-end solution, one-stop solution that is the need of the hour.

That is the reason that we have such a large scope of international logistics management, which is emerging, and this is the objective of this course: to provide you with a complete understanding of this subject, keeping in account these different types of scope, which can be there for the international logistics management professionals.

Then, friends, we have to appreciate the fact that in the last few decades, especially when we claim that post-World War Two, we have had the longest peace time for the humanity.

This is a big achievement that, until very recently, when Russia invaded Ukraine.

Before that, till that time, we can claim to have done incredible work of having the longest peacetime in the world.

During this period, we put all our efforts into increasing globalization and privatization.

The result of this has been the growth of the world economy as well as international trade.

We have made very important advancements in technology, which have helped in increasing the size of consignments that can be moved by different modes of transportation.

Thereby, we have reduced the transportation cost, and not just the transportation cost, but all the related costs that are associated with this, which we refer to as trade Transaction cost.

These trade transaction costs. humanity, the people, the professionals of logistics management, in one way or the other way.

They have been able to achieve a lot of reduction in the cost.

That is one of the benefits of the so-called longest peace time we have seen in the history of humanity.

The world economy has grown, but there has been an even, even larger rise of the international trade and which has been driven by technological development and advancements, concerted global efforts to reduce the trade barriers, where the role of World Trade Organization in making the international trade fair and free, there is tremendous work has been done by the World Trade Organization in many sectors, while it has failed in certain sectors.

In most sectors, the World Trade Organization has been able to bring down the cost of tariffs and remove non-tariff barriers.

These global efforts have given results.

And the result is that these trade barriers have definitely reduced, and it has really impacted the trade transaction cost, which has definitely reduced, and has visibly reduced.

Tariff barriers are the most visible part of this trade transaction cost, which we have been able to reduce drastically.

We have been reaping the benefits of trade liberalization by especially by emerging markets and developing countries.

This is privatization, liberalization, and globalization.

This LPG is, you know, embraced by the emerging markets and the developing countries has benefited the world economy.

This has even benefited more significantly with the rise of international trade.

This is the thing that I wanted to share with you about the growth of international trade, which has been helped by the longest peacetime that we have claimed since WWII.

Friends, the core objective of logistics in international trade remains the maintenance of the ensured flow of goods and services from the seller to the buyer internationally, ensuring the right products, right quantities and assortments, right places to make it available at the right time, right place and at the right cost of movement of the goods, as well as the final price, and in the right conditions.

Right situation, the right form of the goods reaches the destination in good order and condition, and with the right justified terms and conditions.

These are some of the core objectives.

That makes this international logistics trade a very, very important part because it has a direct bearing on the cost.

It has a direct bearing on the availability of the goods at the right time.

It has a direct bearing on the goods being available and the right quantity in the right conditions, with the right terms to the buyer.

The entire satisfaction of the buyer is in making the purchase.

It adds to the importance in a very, very important way as far as international trade is concerned.

Friends, now if we talk about the overall logistics cost, I just introduced the concept of the overall trade transaction cost.

The manufacturer manufactures goods ex-factory, there is a certain cost, and the buyer purchases the goods, which is the landed cost, and there is a gap between the cup and the lip.

Ex-factory price and the landed price are different, and that constitutes the trade transaction cost from country to country.

The question arises: why would a manufacturer like to sell its goods to some other country when the trade transaction cost may be prohibitive?

It may make it impossible to sell goods internationally. That is not the case.

Over time, humans have found ways and means of reducing the trade transaction cost.

At the same time, there are examples like India and many other countries that are really spending a lot of money on logistics costs.

For example, India spends more than its export value on logistics.

You can understand that we are talking about very high logistics costs, but still, the business works. Still, the overall trade transaction cost per unit is viable.

How does the world do this?

As the world has reduced logistics costs, the trade transaction costs have also been reduced.

If we take the overall trade transaction cost perspective, total logistics cost perspective, for example, we are talking about the importance of trade-offs because if we reduce one cost, another cost increases. If we reduce one cost, a different cost increases.

Can we have a trade-off between one cost and another so that the overall transaction cost is reduced?

With that kind of total logistics cost perspective, humans have been able to reduce overall trade transaction costs. For this, a very broad understanding of the total cost perspective and finding the right trade-off is required. This is where the use of ICT, information communication technology, and the role of digitalization come in.

With the help of digitalized systems, like ERP systems, it is possible to find this trade-off.

By manual means, you cannot find such complicated total prospective data. It is not possible.

Using new technologies of digitalization like IoT (Internet of Things), smart logistics, smart sensors, and very soon to be introduced concepts like NFTs (non-fungible tokens) and the metaverse, day by day, we are progressing in finding a more efficient, more optimized trade-off from the total logistics perspective.

What I mean to say about this total logistics cost perspective and trade-off is something like this: we have inventory cost, transportation cost, and order processing cost, which together constitute the overall trade transaction cost.

We are not including tariffs and non-tariff barriers, which we have already talked about, and which have been significantly reduced.

For example, in this case, if we take these three costs, we have variables: logistics costs increase if we reduce one item’s cost, while other costs increase.

With this kind of graphical plotting by digital means, we are able to find the trade-off.

This kind of trade-off is used to reduce the overall transaction cost. That is only possible through digital technologies.

We have the spectrum of costs in this example. At one end: few warehouses, premium transport, high-speed order processing. At the other end: many warehouses, low-cost transport, and medium-speed order processing.

Between these two extremes, using the example I just gave of the three different costs (and there can be many others), we have to find the trade-off.

This is a very broad idea of the insights into logistics cost and overall transaction cost that we are talking about.

At the same time, if we talk of the trade transaction cost from the complete marketing perspective, the gap between the cup and the lip is the end user and the manufacturing origin. In between, we have the movement of goods, customs clearance, tariff barriers, and inventory cost.

We also have distribution cost, marketing cost, sales, distribution cuts, and commissions. If you include all those things, it becomes even more complicated.

A simple digitalization cannot really help with this. From a system perspective, we probably require even more advanced emerging technologies, like NFTs and metaverse technology, wherein unnecessary movement of goods through distribution and marketing chains can be drastically reduced by trading virtual NFTs instead of physical goods. Final goods can then be made available at the right time, at the right place, in bulk quantities redeemed through NFTs at the last layer of consumption.

These developments are already being done and have a lot of potential to reduce overall trade transaction costs, including marketing, sales, and distribution costs.

A new type of system perspective is also emerging.

These were some of the insights into the logistics costs.

Let us now, friends, talk about the impact of all these things we are talking about on the environment.

Are we able to protect our environment and make sure that the carbon footprints of what we are doing on the sea, what we are doing on the surface, what we are doing in the air transport, whatever we are doing on the dry ports or the seaports, or the airports, are adding to the carbon footprint we are adding?

Whether this increased growth of international trade, increased movement of goods, has a kind of impact it is having, an ecological impact it is having on the climate, on the environment, on the sustainability of this planet.

The environment, the economy of the world, as well as the local governments, and the needs of the customers, the needs of the society, and the overall good of the society, require the concept of green logistics requires our activities be done with the least ecological impact.

As per the recent declarations by the United Nations on climate change, we probably require activities with zero ecological impact.

The time has come when we cannot even afford the lesser ecological impact.

We cannot have the liberty of any carbon footprint.

Whether we can carry out the activities that, you know, regain or redeem the shape of the planet, what we had inherited, and what we are going to give to our grandchildren.

These things have to be thought about and are being thought about and are being bugged about, because the time is running short now.

As I just told you, the contemporary thinking was that we simply look at the logistics systems and the approaches that use some kind of digital technology, some kind of advanced technologies, and the equipment in such a way that they minimize the carbon footprint or the ecological impact on the environment and the damage it causes to the environment during the logistic operation.

But the modern thinking is to redefine the concept of doing global business and the international logistics to drastically reduce the overall carbon footprint due to international trade and logistics activities.

For example, what do you mean by saying that if you can do complete digitization through NFTs and

Metaverses, so unnecessary movement of physical goods may be done away with, and the virtual

NFTs can be traded among the distribution chain, and the goods can be made available at the last layer of consumption.

Paperwork is reduced using digitization.

This is a very simple way of talking about the importance of modern thinking.

But the modern thinking is a complete system perspective.

What are the section takeaways from this session?

Let us understand what has been the learning from this session.

There is no doubt that there has been a very high growth of trade, which we have also discussed in this session.

This growth has given a lot of freedom, a lot of flexibility, a lot of choices to the consumers.

This growth has been welcome everywhere in the world.

With this, high growth has come the bigger sea and air traffic, the increased level of logistics, increased level of movement of goods.

Many things, the rampant increase of international logistics, its complications, its complexity, volume of movement of cargo, and the number of vehicles, whether it is sea vehicles or air vehicles, or train vehicles.

The number of vehicles that carry goods the numbers have increased.

The result of this is reflected in many other sectors, many other concerns of humans.

These are also posing some challenges, which I'll just talk about in this particular section, Takeaway.

At the same time, the cost of logistics has become important.

There has been a concerted effort to reduce the cost.

The sole objective is to optimize the cost, reduce the cost, and find the trade-off among the different costs.

The particular aim of the trade to reduce the cost has ignored many other challenges, many other concerns.

I'll just talk to you about this, and this is the most important takeaway from this section.

That is the purpose of this session I wanted to drive upon.

International logistics, we learnt, is becoming more complicated, more complex with the use of artificial intelligence, the use of digital technologies, a lot of the processes, and international logistics are getting automated.

The result of all these things has been an impact on the climate.

Climate concerns. The seas are very, very important for humans, for the planet, for the natural cycles.

The sea plays a very, very important role. To minimize the cost, to find the optimum costs, or to reduce the cost of the goods that are moving from one country to another country, we have forgotten this part that we are using sea transport extensively.

Seas have their roles, so this is not the most important role of the very important topology of this planet.

That is the seawater.

Their role is much more.

It supports marine life.

It supports methods by which carbon is absorbed from the atmosphere.

Those roles are more important, but we are giving more importance to reducing the cost or making things more complex and automated.

These climate concerns are real concerns.

If you are a student of international logistics management, you are adopting new technologies, and you are coming out with out-of-the-box ideas.

It is very, very important that you find solutions so that it is win-win for humans as well as for the Earth's cycle, the planet.

Whether we can reverse this climate damage, climate change, and what we can do in the international logistics domain that has to be kept in mind all the time.

That is the objective of this course also.

Greetings, everyone! I'm thrilled to welcome you to an exciting and insightful journey through the intricate world of international logistics. Today marks the beginning of our video lecture series on "Different Modes of Transportation in International Logistics," a topic that lies at the core of efficient supply chain management across the global economy. Imagine the vast web of global trade, connecting producers and consumers worldwide, and at its heart lie the modes of transportation. From the smartphone in your pocket to the food you enjoy daily, these goods traverse continents through various transportation modes. In this section, we will delve into road, rail, sea, air, and pipeline transportation, exploring their characteristics, advantages, and limitations. Whether you're a seasoned logistics professional or new to the field, this section promises valuable insights. Join me in actively engaging, asking questions, and sharing experiences as we embark on this journey together. Let's make this section a valuable and enriching experience for all. Without further ado, let's dive into the dynamic world of transportation modes in international logistics. Thank you for joining, and let's make the most of this learning adventure!

Good day, everyone.

I hope you are all feeling enthusiastic and ready to dive into today's session.

The topic of which is Modes of Transportation in International Logistics.

This topic is at the very heart of effective and efficient supply chain management and international logistics, and it is a subject that touches virtually every corner of the global economy.

What is the importance of the different transportation modes?

That is our focus.

Before we embark on this journey of exploration, let's take a moment to reflect on the significance of transportation modes in the realm of international logistics.

Imagine for a moment the intricate web that is global trade. Goods and commodities crisscross the planet, connecting producers and consumers across continents, countries, and cities all over the world.

At the center of this web are the modes of transportation that make it all possible.

Think about the smartphone you carry in your pocket.

The clothes you wear, or even the food you enjoy every day.

Chances are, these items have travelled vast distances before reaching, and they have done so using various modes of transportation.

The choice of transportation modes can determine whether your smartphone arrives on time, whether your clothes are fresh, and whether your food is still at its best.

What would you be expecting out of this session?

I'm going to spend another 40 45 minutes. During our time together, in this session, we will explore the main modes of transportation used in international logistics, including road, rail, sea, air, and even pipelines.

We will examine the characteristics, advantages, and limitations of each mode.

Furthermore, we will delve into the practical scenarios to understand when to choose one particular mode over the other.

Whether you are a seasoned logistics professional seeking to sharpen your skills or someone new to the field, eager to learn, you will find valuable insights in this session.

By the end of this session, you will be equipped with knowledge that can significantly impact your ability to make informed decisions about how your goods move across the globe.

In this session, I encourage all of you to actively engage in this session.

Feel free to ask questions, share your experiences, and participate in discussions.

We are here to learn from each other, and your input is highly valued.

Now, without any further ado, let's embark on this journey through the world of transportation modes in international logistics.

We'll begin by exploring the fundamentals, and as we progress, you will gain a deeper understanding of the complex logistics web that connects our world.

Thank you for joining in this session, and let's make this session a valuable and enriching experience for all.

Welcome to this first segment of this session.

Modes of transportation in International Logistics.

We are kicking off our exploration with a fundamental understanding of the main transportation modes that underpin the global movement of goods.

These modes are the lifelines of international trade, connecting businesses, consumers, and economies worldwide. To navigate the complex world of international logistics effectively.

It is crucial to grasp the key transportation modes at our disposal.

Let's see what these different available modes.

Let's begin with the road.

Roads are the arteries of logistics, connecting local, regional, and even international destinations.

Trucks and other vehicles are the workhorses of road transportation, offering flexibility and accessibility that make them indispensable.

Talking about the rail transportation.

Railways form the backbone of many countries' logistics networks and even across borders.

Trains are the champions of efficiency when it comes to long-distance overland transportation.

We will explore how rail transportation factors into international logistics.

When it comes to vast expanses of oceans and seas, ships reign supreme.

Sea transportation accounts for a substantial portion of global trade.

We will delve into containerization and the role of ships in connecting continents across the globe.

For those seeking speed and reliability, air transportation is the answer.

The aviation industry plays a crucial role in international logistics, especially for high-value and time-sensitive cargoes.

Not visible as the other mode pipelines are the unsung heroes of certain cargo types like oil and gas.

We will briefly touch on their significance.

As we journey through these transportation modes, keep in mind a few takeaways.

Each mode has its unique strengths and limitations.

The choice of mode depends on factors like cargo type, destination, time constraints, and cost efficiency.

Intermodal and multi-modal transportation often involve the strategic combination of these modes for optimized logistics solutions.

By the end of this segment, you will have a solid foundation in understanding the role and significance of each transportation mode in international logistics.

This knowledge will serve as a valuable compass as we progress through our discussion.

Let us embark on this learning journey together, starting with our exploration of road transportation.

Stay engaged, ask questions, and let's make the most of our time together in the world of transportation modes, in international logistics.

Let's hit the road, both figuratively and literally, as we delve into one of the most versatile and critical modes of transportation.

Roads are the lifeline of logistics, connecting cities, towns, and even remote areas.

Today, we are going to explore the characteristics, advantages, and limitations of road transportation in international logistics.

Transportation involves the movement of goods via trucks, vans, and other vehicles on paved or unpaved roads.

Here are some key characteristics to consider.

The first one I'll talk about is the flexibility.

Transportation offers unparalleled flexibility, allowing goods to reach locations with varying accessibility from bustling urban centers to remote rural areas.

The second characteristic is last-mile delivery.

It excels in the crucial last-mile delivery, ensuring that goods are delivered to their final destinations, even in densely populated city centers.

The third characteristic of road transportation is accessibility.

Roads cover vast networks, providing access to regions where other modes of transportation may not be feasible.

Another very important characteristic of road transportation is its adaptability.

It can accommodate a wide range of cargo types, from perishable goods to oversized machinery.

Now, let us explore the advantages that make road transportation a preferred choice in many logistics scenarios.

The first is speed and timelines.

Road transportation is often the fastest mode for short to medium distance shipments, ensuring timely deliveries.

The second advantage is its versatility.

It is well-suited for a diverse range of cargo, from everyday consumer goods to construction materials, for example.

Then it can provide door-to-door services.

Trucks can pick up and deliver cargo directly from the sender to the recipient's doorsteps, simplifying logistics and, very importantly, their reliability.

Transportation is known for its reliability, offering consistent schedules and minimal disruptions due to weather or natural obstacles.

However, like any other mode, road transportation has its limitations to consider.

The first one refers to the distance constraints.

It becomes less cost-effective and time-efficient for extremely long-distance hauls, especially compared to rail or sea transportation.

Another limitation is the possibility of traffic congestion. In urban areas, traffic congestion can cause delays and impact delivery schedules.

The other disadvantage of road transport is environmental impact.

Fuel consumption and emissions from road transportation can have environmental consequences, leading to sustainability challenges. Very specific Limitation of road transportation refers to road quality.

The quality of roads can vary widely, affecting the ease and speed of transportation.

As we wrap up our overview of road transportation, here are some key takeaways.

Transportation is a versatile and flexible mode that excels in last-mile delivery and short to medium distance shipments.

It offers speed, reliability, and door-to-door service, but may face challenges with long distances, traffic, and environmental impact.

Transportation is a cornerstone of international logistics, working in tandem with other modes like rail, sea, and air to ensure that goods reach their destinations efficiently and on time.

In our next segment, we'll explore additional transportation modes and discover when to strategically employ each one for optimal results in the complex world of international logistics.

Stay with me on this journey of knowledge and discovery.

Let's switch tracks and explore another vital mode of transportation in international logistics, rail transportation. Often referred to as the iron backbone of logistics, railways have played a crucial role in the movement of goods across countries and continents.

In this segment, we will delve into the characteristics, advantages, and limitations of rail transportation.

Rail transportation involves the use of trains and railways to move cargo over land on dedicated tracks.

Here are some key characteristics to consider.

The first one refers to the efficiency.

Trains are highly efficient for transporting large volumes of cargo over long distances.

They are particularly well-suited for hauling heavy and bulk goods.

A characteristic of rail transportation is its fixed infrastructure.

Railways have fixed infrastructure, which means they offer predictable routes and schedules.

Then its connectivity. Rail networks connect various regions within a country and can extend across borders to facilitate international trade and its safety.

Very important. Trains are generally considered a safe mode of transportation, with lower accident rates compared to road transportation.

Let's explore the advantages that make rail transportation a preferred choice for certain logistics scenarios.

The first one is its cost-effectiveness.

Rail transportation is often more cost-effective than road or air transport, especially for long-distance hauls and heavy cargo. Its capacity. Trains have substantial cargo capacity, making them ideal for transporting bulk goods such as coal, minerals, and grains.

Its reliability.

Railways offer consistent schedules, and the fixed infrastructure reduces the impact of weather-related disruptions.

Importantly, its environmental benefits.

Trains are generally more fuel efficient and produce fewer emissions per tonne of cargo compared to road transportation by truck.

However, like any mode, rail transportation has its limitations that we should consider.

The first refers to infrastructural constraints.

Rail networks may not be as extensive in some regions.

Limiting accessibility.

The second limitation of rail transportation refers to the need for transshipment.

Ocean cargo often requires transshipment between road and rail at specific points, which can introduce complexities.

Then the speed. Trains are not as fast as, for example, air or road transportation in certain cases, making them less suitable for time-sensitive shipments.

Another limitation refers to the cargo type.

Rail transport is best suited for certain specific types of cargo, such as bulk goods or heavy machinery, and may not be suitable for perishable or high-value items.

As we conclude our overview of rail transportation, here are the key takeaways.

Rail transportation is highly efficient, cost-effective, and well-suited for long-distance transportation of bulk and heavy goods.

It offers predictable schedules and has environmental advantages, but may face infrastructural constraints and speed limitations. In the world of international logistics, rail transportation complements other modes like road, sea, and air, offering a valuable means of moving goods overland efficiently.

In our next segment, we will continue our journey exploring additional transportation modes and understanding when to strategically employ each one for optimal logistics outcomes.

Stay on track with me.

Welcome to the segment where we set sail on the vast blue highways of international logistics.

In this part of the session, we are delving into the world of sea transportation, a mode that plays a pivotal role in connecting continents and driving global trade.

Join me as I explore the characteristics, advantages, and limitations of sea transportation.

Sea transportation involves the movement of goods by ships across oceans, seas, and waterways.

Here are some key characteristics to consider.

First is the scale.

Ships can transport massive quantities of cargo, making them ideal for bulk shipments and large-scale trade.

It has global reach.

Seaports connect major ports across the world, facilitating international trade on an unprecedented scale.

Then, the advantage of containerization has helped in sea transportation.

The use of standardized containers has revolutionized sea transportation, streamlining cargo handling and enhancing efficiency, and minimizing cost.

Then it can handle long distances.

Transport is particularly efficient for long-distance shipments, especially for goods traveling between different countries and continents.

Let's explore the advantages that make sea transportation a preferred choice for many international logistics scenarios.

First is its cost-effectiveness. On a per tonne basis, sea transportation is often the most cost-effective mode, making it ideal for low-value, high-volume cargo.

Then, its capacity. Ships can carry a wide range of cargo, from raw materials to consumer goods, and they excel at transporting goods in very large quantities.

Then, economies of scale.

The sheer size of container ships and bulk carriers allows for economies of scale that reduce per-unit transportation costs.

Then its environmental efficiency.

Ships are generally more fuel efficient and produce fewer emissions per tonne of cargo compared to other modes.

However, sea transportation also has its limitations.

The first refers to the speed.

Ships are not the fastest mode of transportation, which can be a drawback for time-sensitive cargo.

Then, Talking about the infrastructure. Ports and terminals must be equipped, and accessibility can be a challenge in some regions, especially with Motherships. Then the transshipment requirement.

Cargo often requires transshipment between sea and land-based transport, which can add time and complexity.

Then, about weather and piracy risks.

Seaborne transportation can be vulnerable to weather-related delays and, in some regions, piracy risks.

As we conclude our exploration of sea transportation, here are the key takeaways.

Seaborne transportation is cost cost-effective, high-capacity mode, suitable for long-distance transport of bulk and low-value goods.

It offers global reach and environmental efficiency, but may face speed and infrastructural challenges. In international logistics, sea transportation is an indispensable mode that connects countries and fuels a very large scale of global trade.

It complements other modes like road, rail, and air, offering a vital means of transporting goods across countries and continents.

In our upcoming segments in this session, we'll continue our journey through transportation modes, gaining a deeper understanding of each one's role in the dynamic world of logistics.

Stay with me as we sail ahead.

People are talking about the transportation of goods by air,

I must tell you that it is the medium of choice for shipping some categories of items like time-sensitive goods, belongings, documents, and information. Generally, the choice is shipment by air.

The benefit that accrues from air shipment is the speed and convenience.

Generally speaking, there are two types of air cargo carriers in this particular industry.

One type of air cargo carrier is what we call a dedicated cargo carrier, and the other one is the cargo division of commercial passenger airlines.

That's a mixed use of commercial passenger lines. Because of the speed and convenience, and because of the fact that the categories of goods that are the best choice for air shipment, which are time-sensitive goods, high-value items, belongings, documents, and information, it is possible to use the passenger lines. Airlines also offer the leftover spaces, those spaces that are not occupied by passengers, which are used in the belly of the aircraft as commercial cargo, and that's what we call the second type of air cargo carrier, that is the cargo division of commercial passenger airlines.

So we have both dedicated aircraft for carrying cargo as well as mixed-use aircraft.

Now, if we talk about different features of the air cargo craft, that is the first item.

These are generally wide-bodied aircraft with a tall fuselage cross-section.

This is a very special feature of the cargo planes because this way they can carry more voluminous goods.

The weight may be a limitation, but if it is voluminous, this wide-bodied aircraft design and tall fuselage can be very, very useful.

A high wing to allow the cargo area to sit near the ground is another very interesting feature of the dedicated type of air cargo aircraft that is meant for cargo only, not to carry passengers.

Also, another very important feature of cargo aircraft is the numerous wheels to allow it to land at unprepared locations or difficult airstrips.

Finally, a very important feature of a cargo aircraft.

A dedicated cargo aircraft has a high-mounted tail to allow cargo to be driven directly into and off the aircraft.

These are some of the features.

Aircraft may be tailor-made to certain requirements, and they may be used for special types of cargoes; and accordingly, their designs are made. Certain designs are meant for very special cargoes.

Now, if we try to see some data to find out the importance and uses of these two classifications of aircraft. In 2015, of the 700 billion ATK that was moved internationally, 43% was served by dedicated freighters and 57% was served by cargo hold.

In 2035, it is expected that of 1200 ATK, 37% will be served by dedicated freighters and 63% by cargo hold.

The meaning of this is significance of the cargo hold, the movement of commercial cargo by international airlines is becoming more popular.

It makes a lot of sense, actually, in industry to use the aircraft internationally to carry a mix, airfreight load, including the passengers and commercial cargo.

This is what is happening.

This is the trend you can see from here.

Now, if you look at the classifications of the aircraft that are available for this purpose, we have generally four types of aircraft that are available.

The first one is the derivatives of non-cargo aircraft.

Whatever is available, whatever way goods can be moved, different types of cargo, special cargo, whatever types are available.

Those containers, those ULDs, if they can be put on any of the derivatives of cargo aircraft, that is one type.

The second type is the dedicated civilian cargo aircraft, those aircraft that are meant for civilian cargo.

The third type is joint civil and military cargo aircraft.

Those are also available.

The sorties made by those joint civil and military aircraft cargo aircrafts, they can be used for this purpose, and they are used nationally as well as internationally.

The fourth type that has emerged in recent times, because of the advancement of technology, is the

Unpiloted cargo aircraft.

These are drones.

These are different types of aircraft that are available.

These are the choices that the cargo moving agencies and organizations in logistics management have these choices available as far as the cargo is concerned.

If we look at it just for our knowledge, what are the major airports in India?

There are many, many large and big airports.

Many of them are international airports, including airports at New Delhi or Srinagar, or in Amritsar,

Chandigarh or Jaipur, or Ahmedabad, or in Bangalore, Mumbai, Kolkata, Chennai.

So many major airports are in India, and that is the case in most countries.

You will find both national and international airports, which are equipped to carry out all types of air cargo operations.

If you look at the major airports in the world in this diagram, you can see that we have so many international airports.

If you look at the world's top 100 airports, that list I have provided in the resource section of this lecture, you can download this list.

There are rankings also that are available that keep changing from year to year.

These rankings are also available for these airports.

Can you also find out through your research what the different facilities that are available on these major airports are concerning air travel?

If you look at different international regulations that are impacting the air cargo industry.

The first very important regulation refers to the regulations of IATA.

Mostly, these regulations of IATA are directed towards dangerous goods.

How are these dangerous goods or hazardous goods to be carried?

What type of packing is required?

What kind of documentation is required?

What are the handling requirements of that cargo and their costs?

All these things are regulated by IATA, and there are guidelines that are available.

All shippers of goods of the nature of the dangerous category they have to comply with these regulations.

Regulations of ICAO, for example, regulations of safety, security, efficiency, and regularity, as well as those regulations that relate to environmental protection.

These are the different subjects of the regulations of ICAO. Regulations concerning international agreements and conventions, for example Warsaw Convention of 1929.

All these regulations apply to this particular business of air cargo movement.

Local regulations may be there in different countries.

If we take the example of India, there is the Carriage of Goods by Air Act of 1972 of India.

Similar kinds of Acts are there in different countries.

Regulations have to be adhered to by the shippers and the carriers.

Now, if we look at the air cargo industry, and if we dissect the different features and characteristics of the air cargo industry, we find that it is a service industry.

It is a very service-centric industry, and that's why it is a costly affair.

It is also very capital-intensive.

Lot of capital is required to run this industry; any kind of services that are provided by different operators in this particular industry have a very big ticket business to start with.

They have to spend a lot of capital initially. High cash flow is required in this industry to operate and to be successful.

It is labor-intensive, too. A lot of skilled and semi-skilled labor is required in this industry.

It is also highly trade unionized in different countries.

It depends from country to country, but in most countries you will find that this industry is highly trade unionized.

Finally, it is a seasonal business in different times and different regions, and different zones on this planet.

It becomes a seasonal business.

These are the characteristics of air transportation.

All these characteristics, all these features and characteristics you should be aware of.

Now we venture into the world of pipeline transportation, a mode often hidden from plain sight but critical in ensuring the flow of vital resources in international logistics.

In this segment of the session, we will explore the characteristics, advantages, and limitations of pipeline transportation.

Pipeline transportation involves the movement of liquids, gases, and even solids through a network of pipelines.

Here are some key characteristics to consider.

The first is specialization.

Pipelines are specialized for transporting specific substances such as crude oil, natural gas, water, or minerals.

Secondly, it is point-to-point.

Pipeline networks are designed to transport resources from one fixed point to another, often over long distances.

The third thing refers to the safety and efficiency.

Pipelines are known for their safety and efficiency, with minimal environmental impact when well-maintained.

The fourth characteristic of pipeline transportation refers to constant flow. Pipelines over a continuous flow of resources, which is critical for industries like energy and petrochemicals.

Let's explore the advantages that make pipeline transportation a preferred choice for certain logistics scenarios.

The first is the efficiency.

Pipelines are incredibly efficient for transporting large quantities of resources, reducing transportation costs.

Then, about the environmental impact.

They have a relatively low environmental impact, with fewer emissions and reduced risk of spills compared to other modes.

Then it's safety. Pipelines are equipped with safety measures, minimizing the risk of accidents and theft.

Then, continuous flow.

The constant flow of resources is essential for industries that rely on a steady supply, like energy and manufacturing.

I just told you about. However, pipeline transportation has its limitations.

First, it is resource-specific.

Pipelines are designed for specific resources, so they lack versatility for transporting different types of cargo.

Then the infrastructure investments are involved. Building and maintaining pipeline networks requires significant investment and infrastructure development.

Then, about its accessibility.

Pipelines are not as accessible as other modes, primarily due to their point-to-point nature.

Then its regulatory considerations.

Pipelines are subject to regulatory oversight, which can impact their operations and expansions.

As we conclude our overview of pipeline transportation, here are some key takeaways.

Pipeline transportation is highly efficient, cost-effective, and safe for the specialized movement of liquids, gases, and some types of solids.

It offers environmental benefits and constant resource flow, but may face limitations related to resource specificity and infrastructure investments. In international logistics, pipeline transportation plays a critical role in ensuring the steady supply of resources, particularly in industries such as energy and petrochemicals.

More visible than other modes, its significance cannot be understated.

In our upcoming segments, we will continue our journey through transportation modes, gaining deeper insights into their roles and applications in a dynamic world of international logistics.

Stay with me as we explore further.

Here is the summary of the advantages and disadvantages of each transportation mode discussed until now.

If you talk of road transportation, the advantages include flexibility suitable for reaching various destinations, including remote areas.

Last-mile delivery is effective for delivering goods directly to their final destinations.

Accessibility.

Extensive road networks provide access to many, many regions across the globe.

Adaptability.

Extensive road networks provide access to many regions.

Adaptability accommodates a wide range of cargo types, and what are the disadvantages of road transportation?

Distance constraints.

Less cost-effective for extremely long-distance shipments.

Talk about congestion if you talk about it. Delays and disruptions can occur in urban areas with heavy traffic.

Its environmental impact contributes to pollution and carbon emissions.

Road quality.

Road conditions may vary, affecting transportation efficiency.

If we talk of rail transportation, the advantages include efficiency for transporting large volumes of cargo over long distances. Predictability.

Provide consistent schedules and routes.

Then connectivity. Connects regions within a country and extends to international borders. also. About the safety.

Generally considered a safe mode of transportation.

What are the disadvantages of rail transportation? Infrastructure constraints.

Limited accessibility in certain regions. transshipment requirement.

Freight often requires transshipment between road and rail.

The speed is slower compared to air transportation for time-sensitive shipments, and the handling capacity of the cargo type.

Best suited for bulk goods and heavy machinery.

Regarding sea transportation, the advantages include cost-effectiveness, cost-efficient for long-distance and bulk shipments. It's a very large capacity, and can transport massive quantities of cargo. And the economies of scale, large vessels allow for cost savings and their global reach. Connects major ports worldwide.

Disadvantages.

Speed. Slower compared to air transportation.

Not suitable for time-sensitive cargo. Infrastructure.

Ports must be equipped to handle large vessels, including motherships.

Transshipment requirement.

Cargo often requires transshipment between sea and land transport, and sometimes also among the ships. weather and piracy risks. Vulnerable to weather-related delays and piracy in certain regions.

Regarding air transportation, the advantages include speed and timeliness, ideal for time-sensitive and high-value cargo.

Global connectivity. Provides access to almost any destination. Reliability. Consistent schedules and high cargo safety, security. Stringent security measures are their on airports across the world, and the disadvantages include very high costs.

More expensive per ton-kilometer compared to other modes.

It has less capacity.

Limited cargo capacity is there in air transportation compared to ships for large shipments, and it has an impact on the environment.

Higher carbon footprints are the characteristics of air transportation per ton of cargo, and the cargo handling capacity.

Versatile, but not suitable for oversized or extremely heavy cargo.

About the pipeline transportation, the advantages include.

Efficiency. Highly efficient for specific resource transportation.

Environmental impact.

There are minimal emissions and minimal environmental impact is there in pipelines. Safety angle?

Equipped with safety measures, reducing risks. continuous flow. Critical for industries requiring a steady supply of resources.

Talking about the disadvantages of pipeline transportation, resource specific it is resource-specific. Specialized for specific resources.

Lacks versatility.

The infrastructure is very high.

Requires very substantial investments in pipeline networks.

Accessibility, if we talk about. Not as accessible due to to point nature. Due And regulatory considerations, it is subject to regulatory oversight, impacting operations and expansion.

Each transportation mode has its unique strengths and limitations, making them suitable for different logistics scenarios based on cargo type, destination, time constraints, and cost efficiency.

Effective logistics strategies often involve combining these modes strategically to optimize supply chain operations.

Now that we have explored the diverse world of transportation modes, it is time to delve into our logistics strategists' heads and explore the art of choosing the right mode.

Selecting the most suitable mode of transportation is a pivotal decision in international logistics, impacting everything from cost to delivery times.

In this segment of the session, we will discuss the key factors to consider when making this critical choice.

The first critical factor is Cargo Type. The nature of your cargo is the first and foremost consideration.

Are you transporting perishable goods, high-value electronics, bulky machinery, or bulk commodities?

Each mode has its cargo preferences.

The second factor is the destination.

Where is your cargo headed?

Different regions may have varying levels of accessibility and infrastructure for specific transportation modes.

Consider the destination's proximity to ports, airports, railways, and roads.

Talking about the time constraints, is your cargo time sensitive?

Requiring a swift delivery?

Air transportation is unmatched for speed.

While sea or rail may be more time-effective for less urgent shipments.

And talking about the cost efficiency, budget considerations are always in the spotlight.

Calculate the overall cost of transportation, including not only freight charges, but also handling, storage, and any potential delays that can cost you. Balance costs against the other factors.

If you take certain practical examples, let's explore a few practical examples to illustrate the importance of these factors I just talked about.

Let us take the first example.

You are a florist shipping fresh flowers from South America to Europe.

Time sensitivity is critical to ensure the flowers reach the market in peak conditions.

Air transportation is the obvious choice for this perishable cargo.

If you take another example, suppose your company manufactures heavy construction equipment and needs to move several pieces from a factory in the Midwest to construction sites in the Middle East.

While speed is essential, cost efficiency becomes a significant consideration.

Sea transportation, followed by road or rail inland, offers a balance of cost and time.

If you take another example, suppose you are an e-commerce giant shipping consumer electronics globally.

The high value of your products calls for secure transportation.

Air transportation provides speed and security for such cargo.

In conclusion, here are some key takeaways.

Cargo type.

Destination.

Time constraints and cost efficiency are the cornerstones of mode selection.

Careful evaluation and a holistic approach are essential to choosing the mode that best aligns with your logistics goals.

As you embark on your logistics journey, remember that the right choice of transportation mode can be a strategic advantage in global trade.

It is not just about moving goods.

It is about moving them efficiently, cost-effectively, and reliably to drive success in international logistics.

In our next segment, we'll continue to unravel the intricacies of international logistics, exploring additional aspects that contribute to the successful supply chain management internationally.

Stay with me as we navigate the Logistics decision maze together.

Yes.

Please go ahead with your question. Sir,

How do I decide between sea and air transportation for my goods when they're time sensitive, but also bulky?

Okay, that is an excellent question.

When you have time-sensitive and bulky cargo, it is a matter of weighing the urgency against the cost.

If your cargo is both bulky and time sensitive, you might consider a combination of modes using air transportation for a portion of the journey and sea for the rest, or maybe some other possibilities out there, depending on what is the case.

This way, you can achieve a balance between speed and cost.

Okay, you are the next.

What's your question?

What role does technology play in making these mode selection decisions?

Right.

Technology plays a significant role in modern logistics.

It provides real-time tracking, data analytics, and forecasting capabilities that can help you make informed decisions, logistics

Decisons. For mode selection, it enables you to monitor cargo in transit.

It also helps you to assess traffic conditions and optimize routes.

It is a valuable tool for enhancing efficiency and making data-driven choices.

Yes, please.

Your question.

Professor, how do I ensure the safety and security of my cargo, especially when it's transported over long distances?

Cargo safety is paramount. To ensure it, choose reputable carriers and logistics providers with a strong track record for security.

Additionally, consider cargo insurance to mitigate risks for long-distance shipments.

Monitor the shipments' progress and utilize technologies like GPS tracking to enhance security measures and gain visibility into your cargo's journey.

Go ahead.

Can you provide an example of a situation where multimodal transportation is the best choice?

Certainly.

Let's say you are a retailer importing goods from Asia to Europe.

In this case, you might use a combination of sea and rail transportation.

Sea transportation is cost-effective, as you already know, for long ocean journeys.

And once the cargo arrives at the port, rail transportation can efficiently move it inland to various distribution centers across Europe.

Multimodal transportation allows you to leverage the strengths of each mode that you use in this.

Yes.

Your question, please.

How do regulatory factors impact mode selection?

Can regulatory factors significantly impact mode selection?

Different regions have varying regulations concerning the transportation of specific goods, safety standards, and environmental rules and considerations.

It is crucial to be aware of and comply with these regulations.

For example, hazardous materials may have strict transportation requirements in different places in different ways.

Ensure your chosen mode aligns with the relevant regulations to avoid delays and legal issues.

Okay, go ahead with your question.

Is there a specific technology or tool you recommend for optimizing mode selection decisions?

There are several software solutions and logistics platforms available that can assist with mode selections.

Very popularly, these software are called TMS or Transport Management Systems and Logistics optimization software.

So, depending on your region, your country, you can find it online.

What software that are available cost-effectively? These tools consider various factors, including cost, time, and capacity, to recommend the best mode for your specific logistics needs.

It is a good practice to explore these tools and select one that aligns with your organization's requirements.

Thank you all for your thoughtful questions and active participation.

Mode selection is a complex decision, and your inquiries have shed light on various aspects of this critical process.

Remember, the key is to analyze your unique logistical needs and leverage the information and tools available to make well-informed decisions.

In our next segments and sections, we will continue to explore the intricate world of international logistics.

So stay engaged and keep these questions coming in each section.

Ladies and gentlemen, as we near the end of our journey through the diverse modes of transportation in international logistics, in this section. Let's reflect on the wealth of knowledge we have gained in this particular section.

We have explored the highways, railways, oceans, skies, and even the pipelines that facilitate the movement of goods and resources across the continents all over the globe.

What are the key takeaways?

The first one is that there are diverse modes.

We have learned that there is no one-size-fits-all solution in logistics.

Each mode of transportation has its unique characteristics, advantages, and limitations.

Another key takeaway is to have a cargo-centric approach in decision-making.

Cargo type is a critical starting point for decision-making, whether it is perishable goods, bulky machinery, or high-value electronics. your cargo's nature shapes your mode selection.

Then we also learned that destination matters.

The destination of your cargo plays a pivotal role.

Accessibility, infrastructure, and geographical location influence the choice of transportation mode.

Then we also learned about time sensitivity.

Time constraints are a crucial factor when speed is of the essence; air transportation excels. For less time-sensitive cargo, sea or rail can be more cost-effective.

And then we also talked about cost efficiency.

Balancing the budget is paramount.

Analyze the overall cost of transportation, including handling, storage, and potential delays, to optimize cost efficiency.

We also learned the technology's role.

Technology empowers us with real-time tracking, data analytics, and forecasting capabilities, enhancing our ability to make informed logistics decisions, especially in an international context.

Then we also talked about safety and security.

That is very, very important in international logistics.

Cargo safety is paramount.

Choose reputable carriers, consider cargo insurance, and leverage technology for monitoring and enhancing the security of cargo.

Then we also touched upon multi-modal opportunities.

Multimodal transportation offers flexibility and optimization.

It enables you to combine modes strategically to leverage their strengths for complex logistics needs.

We also mentioned regulatory compliance.

Regulatory factors can significantly impact mode selection.

Be aware of and comply with regional regulations to avoid delays and legal issues.

Then your decision-making should be holistic.

Mode selection is an art that requires this holistic approach.

Consider all factors collectively to make the best choices for your logistics goals.

As we conclude this session, remember that logistics is not just about moving goods.

It is about moving them efficiently, cost-effectively, and reliably to drive success in international trade.

The right choice of transportation mode can be a strategic advantage.

Our journey through international logistics continues with more insights and knowledge to gain.

Stay curious, stay engaged, and keep exploring the intricacies of this dynamic field.

The world of logistics is ever evolving, and your understanding of its nuances will undoubtedly contribute to your success.

Thank you all for your active participation and thoughtful questions.

Safe travels on your logistics journeys, and may your supply chain always run smoothly until the next section.

Good morning, everyone.

Today in this session, we are diving into the fascinating world of international logistics, especially focusing on the critical concepts of intermodal and multimodal transportation.

By the end of this short talk, you will have a clear understanding of what these terms mean and why they are essential in the world of global trade and shipping.

Let us define in a very short way about intermodal transportation.

Intermodal transportation is like the Swiss Army knife of logistics.

It involves the seamless movement of cargo using multiple modes of transportation, for example, trucks, trains, ships, or even airplanes.

The key here is that each mode of transport is separate, and at some point in the journey, the cargo is transferred between them.

This kind of transfer takes place in between. Intermodal transportation offers several advantages.

One of the most significant benefits is its versatility.

It allows us to leverage the strengths of different modes of transport.

For instance, trucks are great for local deliveries, while trains are efficient for long-haul journeys, and ships can carry enormous quantities of goods across oceans across continents.

By combining these modes strategically, we can optimize efficiency and cost-effectiveness.

Let us consider some examples.

Imagine a shipment of goods starting at a factory in Chicago, destined for a retail store in Beijing, China.

This cargo could travel by truck to a nearby rail terminal, then by train to a coastal port, and finally by a container ship to China, and maybe in China, it can also travel with different modes.

Each leg of the journey utilizes a different mode of transport, making it intermodal.

Now, let us move on to multimodal transportation.

If you want to understand the difference between these two.

Multimodal transportation is very similar to intermodal, but with a twist.

It also involves multiple modes of transportation, like in intermodal transportation, but unlike intermodal, these modes are integrated under a single transport operator or carrier.

This means that the responsibility for the cargo remains with one entity throughout the journey, even as it switches between different modes.

The key advantage of multimodal transportation is simplicity.

With a single entity overseeing the entire journey, it is often more straightforward to manage and track shipments.

This can be especially beneficial when dealing with complex supply chains or time-sensitive cargo.

Imagine the same shipment that we discussed earlier in intermodal transportation, which is from Chicago to Beijing, but this time it is managed by a single logistics company that handles the cargo transfer between different modes, like truck, rail, or ship.

This integrated approach characterizes multimodal transportation.

So what is the key difference between intermodal and multimodal transportation?

Well, the crucial distinction lies in how the cargo is managed and who takes responsibility at each transfer point.

In intermodal, the cargo may change hands between different carriers, whereas in multimodal, it remains under the care of one carrier throughout the journey.

As you embark on your journey into the world of international logistics, it is vital to consider when to choose intermodal or multimodal transportation.

Factors such as the type of cargo, the destination, time constraints, and cost efficiency will influence your decision.

The right choice can make all the difference in ensuring smooth and efficient global supply chain operations.

Concluding about the introduction to intermodal and multimodal transportation.

They are integral to international logistics.

Both are integral.

They offer unique advantages and suit different scenarios depending on your specific needs and circumstances.

By understanding these concepts, you are better equipped to navigate the complex world of global trade and shipping.

Thank you for your attention, and I hope you find the rest of this course equally enlightening and informative.

A very important area to talk about when we talk of the movement of goods by land.

We talk of intermodal/ multimodal transportation.

Intermodal/multimodal transportation includes all kinds of modes of transportation, including sea transportation as well as air transportation.

But it can be talked about in the context of the movement of goods by landalso, uh, that mainly comes from the development of, uh, and the popularity of the movement of goods by standardization through containers.

When we talk about in the earlier section about containerization, i.e., Palletization, Unitization, and containerization, we are talking of, uh, making movement of goods to ports or handling of the goods mechanized. And intermodal transportation comes into the picture and becomes very important when we are talking of movement of goods within, uh, countries or between countries through land, land routes, uh, it becomes very important for moving goods in containers.

And that is the most popular way of moving goods.

And it has got many dedicated freight corridors.

For example, in big countries like India and China, you have dedicated freight corridors that move goods through intermodal transportation, through land.

But definitely it has got applications in all the modes of transportation, including sea and air.

We have already discussed, actually, in an earlier section, the advantages of moving goods by land.

Also, by using intermodal and multimodal transportation. Here, so what happens in this kind of movement also, very importantly, intermodal transportation plays a very important role by eliminating the loss of time and risk of loss and damage to cargo, which is incidental to the conventional way of moving goods.

When you are moving goods through containers, which has become the norm now, you are eliminating such losses of time as well as the risk of damage.

And the movement of cargo becomes faster using the intermodal transportation, when we are talking of land that we have discussed earlier, also the burden of documentation and other formalities connected with the different segments or legs of transportation is reduced from the point of view of the shipper. And the resultant cost savings tend to increase through freight rates and the cost of cargo insurance.

This is what happens because specialized people are handling all the legs.

They can reduce through freight rates and insurance costs.

The consignor has to deal with only one agency that we had discussed earlier.

The multimodal transport operator, which in short is called MTO in all matters related to the movement of its goods, including the settlement of claims.

And on an international level, including other modes of transportation, sea and air, this becomes even more important. Through rates offered by MTOs, multimodal transport operators make it easier for exporters to negotiate sales contracts with foreign buyers on the basis of delivered prices.

It becomes easy to calculate landed cost.

In this segment of our International Logistics Management course, we are going to bring the concept of intermodal transportation to life by exploring some real-world examples. We will journey through various scenarios where intermodal transportation shines, highlighting how it seamlessly combines different modes like trucks, trains, and ships to move goods efficiently.

Let's dive right in with some concrete examples of intermodal transportation scenarios.

Let us consider this scenario: the transcontinental journey.

Imagine a scenario where a manufacturer in Chicago needs to ship a large volume of goods to a distributor in Shanghai.

This isn't just a simple delivery.

It is a transcontinental journey, as you can understand. The cargo might begin its journey with local trucking, moving from the factory to a nearby rail terminal.

In scenario two, we are talking about embracing rail efficiency.

In this scenario, let us consider an agricultural producer in Kansas looking to export wheat to a destination in Europe.

Rail transportation proves highly efficient for the landlocked state.

The wheat is loaded onto rail cars, which transport it to the coastal port, where it is then loaded onto a container ship bound for Europe.

And after it reaches Europe again, it may travel through either trains or trucks.

Let us consider scenario three.

Crossing oceans with ease.

Now, let us explore an international shipping scenario.

A clothing manufacturer in Bangladesh is ready to export its garments to retail stores in North America.

The cargo begins its journey with truck transportation from the factory to a nearby seaport in Bangladesh, where it is loaded onto a container ship.

After crossing oceans, it arrives at a North American port, and then trucks take over for the final leg to reach the retail stores.

Let us consider scenario 4, combining air and other modes of transportation. In a more time-sensitive scenario, consider an electronics manufacturer in South Korea.

It needs to ship a high-value, high-tech product to a customer in the US.

The cargo starts with a short truck ride to the nearest airport, where it is loaded onto an international flight.

Upon arrival in the US, it is seamlessly transferred to trucks for last-mile delivery to the customer.

And finally, let us consider scenario 5, which refers to seasonal agricultural exports.

For our final scenario, let's look at the export of seasonal agricultural products.

A fruit grower in Chile wants to send fresh produce to various destinations worldwide.

Trucks transport the produce to a nearby refrigerated rail terminal.

The refrigerated rail cars ensure the goods stay fresh as they travel to a seaport.

From there, they are loaded onto a container ship that sails to multiple international ports, allowing for global distribution.

In these scenarios, we witness the power of intermodal Model transportation.

It is not just about moving goods, it is about optimizing each leg of the journey. By selecting the most suitable mode of transportation for each segment, we reduce cost, enhance efficiency, and ensure the safe and timely delivery of goods across vast distances.

These examples underscore the versatility and adaptability of intermodal transportation.

It is not a one-size-fits-all approach.

Rather, it is a strategic way to tailor logistics solutions to specific needs.

As we continue to explore the world of international logistics, remember that the ability to apply these concepts in real-world scenarios is what sets successful logistics professionals apart.

Thank you for your attention, and in the next part of the session, we will delve into the world of multimodal transportation, providing a comprehensive understanding of how it differs from intermodal and when it might be the right choice for your logistics needs.

Good day, everyone.

In this segment of our International Logistics Management course, we'll be shifting our focus to another essential aspect of logistics, that is, multi-modal transportation.

Over the next five minutes, we will be unpacking the concept by defining it and delving into its distinctive characteristics and notable advantages.

First things first, what exactly is multimodal transportation?

At its core, multimodal transportation is a logistics strategy like intermodal transportation that involves the integration of multiple modes of transportation under a single transport operator or a carrier.

Unlike intermodal, where cargo may change hands between different logistics companies or carriers as it switches modes, multimodal transportation ensures that a single entity manages and oversees the entire journey of the goods from the origin to the destination.

Now, let us explore the key characteristics that set multimodal transportation apart.

The first is the seamless integration.

The defining feature of multimodal transportation is its seamless integration.

Under this approach, multiple modes of transport, such as trucks, trains, ships, or airplanes, are seamlessly coordinated to facilitate the movement of goods.

Cargo transitions between these modes smoothly, with a single entity responsible for the entire journey that

I just talked about.

The second characteristic of multimodal transportation refers to single-carrier responsibility.

I just mentioned.

Therefore in multimodal transportation, the cargo remains under the care of one carrier throughout its journey.

So it's like a window system to deal with the customers.

Even as it switches between different modes.

It is going to be the same carrier.

The single carrier responsibility simplifies logistics management from the point of view of the customer and offers a more unified and coordinated approach, reducing the complexities often associated with intermodal transport.

The third characteristic of multimodal transportation refers to streamlined tracking and accountability, with a single entity overseeing the entire transportation chain, making tracking and accountability much more straightforward.

From the moment the cargo leaves its origin to its arrival at the final destination, the carrier is accountable for its safe and timely delivery.

This transparency is crucial for supply chain visibility, and I just mentioned customer satisfaction.

Similarly, the fourth characteristic of multimodal transportation refers to flexibility and efficiency.

Multimodal transportation retains the flexibility to adapt to diverse cargo requirements, like, for example, in the case of intermodal transportation, whether you are shipping perishable goods, oversized equipment, or standard consumer products.

This approach can be tailored to meet the specific logistics needs of the customers.

This adaptability contributes to the overall efficiency of the logistics management.

Now that we have explored its characteristics of multimodal transportation, let's delve into the advantages of this strategy.

The first advantage refers to the simplified logistics management.

The foremost advantage of multi-modal transportation is simplified logistics management.

With a single carrier overseeing the entire journey, logistics professionals can more efficiently coordinate and execute complex shipments.

This streamlined approach can be especially beneficial for companies with intricate supply chains.

The second advantage of multimodal transportation refers to enhanced accountability.

As we have discussed several times in this session, multimodal transportation enhances accountability.

The single carrier remains accountable for the cargo's safety, security, and timely delivery throughout its entire journey.

This accountability minimizes the risks of miscommunication and transfer-related issues.

The third advantage of multimodal transportation refers to improved cargo security. So cargo security in international logistics management is a paramount concern.

By reducing the number of handovers and transfers, multimodal transportation can enhance cargo security.

There are fewer opportunities for theft, damage, or loss during the transportation process.

The fourth very important advantage of multimodal transportation refers to time and cost efficiency.

Ultimately, multimodal transportation aims for time and cost efficiency by optimizing the choice of transportation modes and routes.

Businesses can reduce overall transportation costs while ensuring goods reach their destination on time.

In conclusion, we can say that multimodal transportation is all about seamless integration and accountability.

It offers simplified logistics management, enhanced cargo security, and the potential for cost and time efficiency.

Understanding these concepts is essential as we navigate the complex landscape of international logistics.

Thank you for your attention to this part of our discussion on multimodal transportation.

In the next part of our session, we'll explore specific examples and scenarios where multimodal transportation shines, helping you to appreciate its practical applications in the world of international logistics.

Welcome back.

In this part of our International Logistics Management course, we are going to take a closer look at multimodal transportation by exploring some real-world examples.

We will delve into scenarios where multiple modes of transport are seamlessly combined, showcasing the power of this logistics strategy.

Let's dive right into some practical examples of multimodal transportation scenarios.

Let us talk about this scenario on the Cross-continental Trek. Imagine a scenario where a manufacturer in Los Angeles needs to transport machinery to a construction site in New York.

This journey spans the entire continental United States. In a multimodal approach, the cargo could begin its journey with truck transportation from the factory to a nearby rail terminal.

Here it is loaded onto specialized railcars designed to carry heavy equipment.

The train transports the cargo across the country to a rail yard closer to the construction site.

From there, the truck takes over for the final leg of the journey, delivering the machinery directly onto the construction site.

Now, let us talk about another scenario.

Scenario two: temperature-sensitive pharmaceuticals.

It refers to.

So in this scenario, let us consider a pharmaceutical company in Europe shipping temperature-sensitive vaccines to a distribution center in Africa.

The cargo initially travels by truck to an international airport, where it is loaded onto a refrigerated cargo plane.

The plane transports the vaccines across continents to an African airport.

Upon arrival, the cargo is seamlessly transferred to refrigerated trucks, ensuring that the vaccines maintain their required temperature during the entire journey.

Now, talking of another scenario, that is number three.

We call it. International auto exports.

In this example here.

Now, let us explore an international auto export scenario.

So here in this case, an automaker in Japan wants to export a batch of cars to a dealership in Australia.

The vehicles start their journey with truck transportation to a nearby seaport, where they are loaded onto a roll-on on roll-off vessel.

We will talk about this vessel later on in another session.

This specialized ship is designed for the efficient loading and unloading of motor vehicles.

The RoRo vessels I just talked about set sail for an Australian port, where trucks wait to receive the cars and distribute them to dealerships across the host country.

Therefore, in these scenarios, we witness the versatility and efficiency of multimodal transportation.

It is about selecting the right combination of transportation modes to optimize the journey for the specific needs of a particular cargo.

By seamlessly integrating trucks, trains, ships, airplanes, and more modes of transportation, we can overcome geographical distances, manage temperature-sensitive cargo, and efficiently transport vehicles to international markets.

So, multimodal transportation is a strategic approach that empowers logistics professionals to tailor solutions to the unique challenges posed by various types of cargo and destinations.

Thank you for your attention to these practical examples of multimodal transportation.

In our next segment, we will wrap up our discussion by comparing intermodal and multimodal transportation, as I had promised earlier. I will help you to make informed decisions in your logistics endeavors.

Welcome back, everyone.

In this part of our International Logistics Management course, we are going to draw a clear line between intermodal and multimodal transportation.

What are the key differences?

By understanding the main differences, you will be better equipped to make informed decisions in the dynamic world of international logistics.

Let's start with the first crucial difference, the ownership and responsibility of the cargo I just mentioned.

In intermodal transportation, cargo may change hands between different carriers as it switches modes.

This means that the responsibility for the cargo can be distributed among multiple entities throughout its journey.

While each carrier is accountable for the cargo under their care, this handover process can introduce complexity in terms of accountability and coordination, and also safety concerns. In the case of multimodal transportation, the cargo remains under the care of one carrier throughout its journey, even as it transitions between different modes.

This single carrier responsibility simplifies logistics management and provides a unified point of accountability.

The carrier is responsible for ensuring the cargo's safety, security, and timely delivery from the start to the finish.

Another key difference refers to simplicity and complexity.

So, Therefore, the next key difference lies in the simplicity or complexity of the transportation process.

In the case of intermodal transportation, it often involves multiple carriers that we have discussed and transfer points, which can add layers of complexity to the logistics chain.

Each transition between modes requires careful coordination and may introduce opportunities for miscommunication or delays or thefts, and many other possibilities are there.

Multimodal transportation, on the other hand, streamlines the process by having a single carrier overseeing the entire journey.

This approach simplifies logistics management and reduces the complexities associated with multiple handovers.

It is like having a single conductor orchestrating a symphony of transportation modes.

Lastly, let us explore the flexibility and cost considerations that differentiate these two approaches.

In the case of intermodal transportation, it offers a high degree of flexibility when it comes to selecting the most suitable mode of transport for each leg of the journey.

This flexibility is advantageous when dealing with diverse cargo types and complex supply chains.

However, it can also introduce added costs and coordination efforts due to the involvement of multiple carriers.

Multimodal transportation, while still flexible, simplifies decision-making by having one carrier manage the entire journey.

This can lead to more efficient cost management, as the carrier can optimize the choice of transportation modes and routes to reduce overall transportation costs.

It is a more holistic and streamlined approach that balances flexibility and cost-effectiveness.

In summary, the main differences between intermodal and multimodal transportation revolve around ownership and responsibility for the cargo, the simplicity or complexity of the logistics process, and the balance between flexibility and cost considerations. As you navigate the logistics landscape, understanding these distinctions will be instrumental in selecting the most suitable approach for your specific cargo and supply chain needs.

Thank you for your attention to these critical differences.

In the next part of our course, we will be exploring when to choose intermodal or multimodal transportation, providing you with practical insights for your logistics decision-making.

Now, before we talk about the key takeaways of this session, one last thing is that I want to discuss with you.

It refers to deciding between intermodal and multimodal transportation.

What are the key considerations?

How do you choose between these two strategies?

The first thing to consider is the cargo type.

The type of cargo you are transporting plays a pivotal role in the decision-making process of this type.

You need to consider the nature of your goods.

Are they perishable, fragile, oversized, or standard consumer products?

What are they?

Intermodal transportation's flexibility may be well-suited for a variety of cargo types, especially when specific handling requirements must be met.

Conversely, multimodal transportation with its streamlined coordination may be preferable for goods with less specialized handling needs.

The second consideration in this decision-making refers to the destination.

The destination of your cargo is another very important critical factor.

Are you shipping domestically or internationally?

Do you need to reach a remote area or a major urban center? It can tap into various modes of transport tailored to specific routes.

Multimodal transportation, with its single carrier oversight, may be favored for straightforward, well-established routes or when delivering to major urban hubs.

The third consideration in this decision-making refers to time constraints.

Time is often a paramount consideration in logistics.

Are your shipments time sensitive?

Do they need to reach their destination quickly, or is there more flexibility in the delivery schedule?

For urgent shipments, multimodal transportation may have the edge due to its streamlined coordination and single-carrier responsibility, which can reduce the risks of delays.

However, intermodal transportation can still be effective for time-sensitive cargo when planned meticulously.

The fourth consideration in this decision-making refers to cost efficiency.

Cost considerations are ever-present in logistics decision-making.

Are you looking to optimize cost while maintaining service quality?

Intermodal transportation can provide cost efficiency by selecting the most cost-effective mode for each leg of the journey.

Multimodal transportation offers the potential for cost savings through its ability to manage transportation modes holistically.

Careful cost analysis is crucial to making an informed choice in this regard.

Now, it is significant to understand the importance of balancing considerations.

It is important to emphasize that these factors do not exist in isolation.

The decision between intermodal and multimodal transportation often involves balancing these considerations.

For instance, if you have a time-sensitive, fragile cargo bound for a remote destination,

Multi-modal transportation may offer the most efficient and reliable solution despite potentially higher costs.

Therefore, in conclusion, the choice between intermodal and multimodal transportation is a complex decision that depends on several factors.

By carefully evaluating the nature of your cargo, the destination, time constraints, and cost efficiency, you can make informed choices that optimize your logistics operations. As you navigate the international logistics landscape. remember that the right choice will vary from one shipment to another, and a deep understanding of these factors will be your compass in making logistics decisions that align with your business objectives.

Thank you for your attention to these critical considerations. In our next and final segment, let us talk about some of the key takeaways from this session.

As we conclude this session of our International Logistics Management course, let us recap the key takeaways and underscore the critical importance of making informed decisions about transportation modes in international logistics management.

What were the main points of this session?

Throughout our session, this session, we explored a wealth of valuable insights.

We began by defining and differentiating between intermodal and multimodal transportation, emphasizing how they influence the flow of goods and the responsibility of the cargo.

We then dived into real-life examples of both intermodal and multimodal transportation scenarios, highlighting their versatility and efficiency in diverse logistics contexts.

Next, we examined the main difference between these approaches, including the ownership of the cargo, the simplicity versus complexity of logistics, and the flexibility and cost considerations that set them apart.

We also discussed when to choose intermodal and multimodal transportation, emphasizing that cargo type, destination, time constraints, and cost efficiency are the pivotal factors that influence the decision-making process of this type.

We also underscored the importance of making informed decisions about transportation modes in international logistics.

We also learned that your ability to navigate the complex logistics landscape depends on efficiency, so choosing the right transportation mode can lead to streamlined operations, reduced cost, and timely deliveries, enhancing overall efficiency and customer satisfaction.

Meeting or exceeding customer expectations is crucial.

Informed decisions ensure that the goods reach their destinations intact and on schedule, enhancing buyer satisfaction.

Customer satisfaction.

We also learned that informed decision-making can lead to competitive advantages.

Making the right logistics choices can give you and your business a competitive edge as efficient supply chains can lower costs and improve market responsiveness, and it can also lead to sustainability.

Informed decisions can contribute to sustainability goals by reducing emissions, optimizing resources, and minimizing waste in logistics operations.

In conclusion, we can say that international logistics is a dynamic and complex field.

By understanding the nuances of transportation modes and making informed decisions, you position your business for success in the global marketplace.

Your ability to adapt, optimize, and choose the right logistics strategy will be a driving force in achieving your business objectives.

Thank you for your active participation in this entire session.

As we move forward into the future of international logistics and supply chain management, remember that knowledge and informed decision-making will be your most valuable assets.

Safe journeys, and may your logistics endeavors be as efficient as they are rewarding.

Friends, welcome back to this new episode of this course, International Logistics Management.

The focus of this particular session is on understanding the different types of logistics service providers, the very common types of classifications.

There are different ways of classifying the logistics service providers.

In this particular session, my focus would be on the, uh, the nature of the logistics provider, that's how many parties are involved, like when we say 1PL logistic provider or 2PL logistic provider, 3 PL, which is very, very common, 3 PL is very, very common type of term which is used for defining the logistic service provider and the nature of the provider, the status of the provider and the position of the logistics provider.

3 PL, for example, third party logistics provider, these different types we are going to discuss in this particular session, and we will try to understand what the difference is between 1 PL, 2 PL, 3 PL or 4 PL, or even 5 PL service providers.

There are different types, and they have their own different roles, actually.

We'll try to understand what these roles are and how they justify their position in the overall logistics management.

And we will also be talking about what the related terms are when we talk of 1 PL, 2 PL, 3 PL, and different types of service providers.

What are the common concepts and different terms that are commonly used?

For example, when we say that, uh, certain types of logistic providers, you know, bank upon their assets, assets means trucks or aircraft or sea vehicles, which means the ships.

The service providers' key success factor, or the basis of their role in the OVERALL logistics cycle, is based on the assets that they have, or certain service providers do not have any assets.

What are the asset-based service providers, and what are the non-asset-based service providers?

These kinds of terms, assets-based, non-assets-based, these terms,

And the other terms, like what is reverse logistics?

What is the concept of an aggregator or the concept of a consolidator?

These kinds of terms will be discussed in this particular session.

Let us look at the differences between the so-called 1 PL, 2PL, 3PL, 4PL, and 5PL service providers, logistics service providers.

Let me tell you that the 3PL, that is, the third-party logistics providers, are the most common, at least in the context of India.

But in many of the countries, you will find that 3PL service providers. this particular type is very, very common.

But let us first understand what a 1 PL logistics service provider is.

A 1PL logistic provider actually is a firm or an individual that has its own cargo or the freight, and it can transport goods by itself, whether it can transport the goods, does it have the assets, which means the vehicles to do that? Like for example, small vendors who are selling B2B, what they do in 1PL logistics, that is the first party logistics.

They have their own setup, warehouse, or whatever it is, and they have their own assets. Using those assets they provide, distribute the goods which they have in the warehouse or in the manufacturing unit or wherever, whatever may be the source of the goods of this particular party, they themselves distribute the products in a repeated manner in certain schedules or daily, every week, whatever may be the method of distribution.

But the fact remains that in the first-party logistics, the party has its own goods, its own assets in the form of a warehouse or a manufacturing unit, whatever it is, and the vehicles to distribute the goods.

This is what is called the first-party logistics.

In the second party logistics, that is, 2PL goods movers using their own or contracted carriers for the distribution of goods.

The main difference between the first party logistics and second party logistics is that the second party logistics moves goods that may be of a different party, so it is not necessary that the goods being distributed are of the same party.

Examples of such second-party logistics providers are the wholesale goods distributors, heavy goods distributors. Adani, for example, moves coal from all over the world to India from different sources, or Jaipur Golden moves cement from factories to the wholesalers.

There are so many examples.

Indian example, the foreign examples wherein the second party logistics, that is, the second party logistics provider, which specializes in moving goods, either using its own fleet of vehicles or has contracted the fleet of carriers.

These contracted carriers can be the trucks, it can be the train, it can be the aircraft, it can be the ships.

Whatever it is, the idea is that it moves goods of the other parties.

Now the third-party logistics, which is also called in short, 3PL.

They are not only the goods movers like 2PL, but they also provide other logistics functions like warehousing, terminal handling, which means loading and unloading of the goods, or uh customs brokerage.

What is the meaning of this that, uh, they carry out the clearing and forwarding work also, for example, the freight forwarders or clearing and forwarding agents, they are generally regarded and known as the third-party logistics providers.

They provide a very large number of services, including storage, handling, moving, and clearing the goods and dealing with the port authorities or customs, and many other intermediaries in the international logistics, as well as the domestic logistics.

These are the 3PL service providers, logistics service providers.

Now there is another one that is called the fourth-party logistics.

What is this fourth-party logistics or 4PL?

Basically, in the fourth party logistics, what happens is that it appoints a person, there is a person to oversee different 3PLs.

That means the third party logistics, which may specialize in certain areas, for example, third party logistics with uh strong uh assets in the form of trucks or the surface logistics, or 3PL, which specializes mainly in the ocean movement of the goods.

And uh, 3PLs, third-party logistics, which specialize in air cargo.

And uh, the third-party logistics, which specializes in arranging the warehouses at the different multimodal points, especially in the multimodal transport of the goods, and also the 3PLs, which specialize in consolidation or aggregation, or integration of the goods.

Basically, the third-party logistics, which are integrator or aggregator, or consolidator, are their specialties, although they provide many other services.

A person or an agency that oversees all these third-party logistics is called the fourth-party logistics or fourth-party logistics aims to reduce the headache of dealing with the different third-party logistics.

Some of the examples of fourth-party logistics are supply chain consultants, lead logistics providers, one roof logistics solutions, which, uh, actually provide premium services of logistics.

These can be examples of 4PL, which is the fourth-party logistics.

Finally, the concept of 5PL, that is, the fifth party logistics, is also there, in which case what the role of this fifth party logistics is that they work as the logistics aggregators who basically aggregate demand of the third party logistics in bulk volumes.

Why do they do that?

That by aggregating the demand in bulk, they are in a position to get better rates from the main carriers, for example, shipping lines, airlines, or very big truck services.

If the volume is good, they can negotiate a better price.

That is where the role of third-party logistics comes.

These are the differences between the first party logistics or the second party logistics, the third party logistics, the fourth party logistics, and the fifth party logistics.

Depending on their role, depending on their strengths, depending on the assets which they have of their own, we can classify the different logistics service providers.

Now, in order to understand what this consolidation is, what this aggregation is, the aggregation can be of the cargo. It can be the aggregation of the demand to enable, for example, the third-party logistics providers to get better rates.

The same principle is enshrined in the concepts of full container load cargo and less-than-container-load cargo.

In the present times, we have containerization, which has completely revolutionized the way goods are transported in international trade, whether for exports, imports, or movement within the country. Containerization has made it very efficient, very swift, fast, and cost-effective.

What happens that these containers has to be totally stuffed, which means they should be full, which means the full container load, but the demand can be less than container load because even though containers can be of different size, 20ft, 40ft, and many other sizes, the common being the 20ft or 40ft according to which the handling is possible.

Mechanized handling is possible.

The machines have been designed for these standard containers.

What happens if the demand is less than a container load?

The role of consolidator and aggregator comes when they cluster the demand of different clients and make it such that they can negotiate better prices with the main carriers.

Now, herein also comes the concept of so-called inbound and outbound logistics.

It is better to understand at this stage what inbound and outbound logistics.

Every company has its core business.

It can be a manufacturer, it can be a trader.

It can be some kind of e-commerce company.

Whatever it is, the core business may be doing the manufacturing, using the different processes, or doing some kind of refining of the goods, or simply manufacturing or assembling the goods at the factory or some other place.

Or it may be simply a company that is a distributor.

Whatever the core business may be, depending on what is the core business, the inbound logistics can be of different types for different types of core businesses.

For example, for process or refining companies, the raw material is the inbound logistics, while the supplies, which are made to B2B clients, other manufacturers, or distributors, are the outbound logistics.

After the process has been done, it becomes the outline of outbound logistics.

Similarly, for manufacturers, the refined materials, the materials that can be used in manufacturing without further processing.

Those would be the inbound logistics.

While the components and assemblies that have been manufactured in the factory would be the outbound logistics, which is the product.

Then the other core businesses, which are doing assembly work, the components that have to be assembled would be the inbound logistics, and the finished product would be the outbound logistics.

Similarly, for distributors, finished goods will be the inbound logistics, and customers will be the outbound logistics.

Starting from raw material to refining to supplying others to manufacturers, these processed items, which manufactures the components and assemblies and these components and assemblies are then assembled in the core businesses and finished goods are created.

These goods are distributed by the distributors to the customer.

You can see that, depending on whatever the channel partners in this whole system of material to the finished product, to the consumer end user, you will find that different companies have their different core businesses, and every company has its own inbound logistics and outbound logistics.

These are some of the very simplistic ways of looking at the inbound and outbound logistics.

It can be much more complicated.

Now talking of another concept of logistics, which relates to cold chain logistics, which means a special type of logistics, with special requirements of the goods, which is also called the chill chain logistics. The idea is to transport temperature-controlled goods or temperature-sensitive goods, goods that are not normal, goods that can be perishable.

The goods that are sensitive to temperature variations, like vaccines.

These kinds of goods are part of the so-called cold chain or chill chain logistics.

Some of the examples are the temperature-sensitive food items, fresh fruit or vegetables, or processed foods which are temperature-sensitive, and beverages which may become stale with time and the temperature, and biopharmaceutical products, including the vaccines and many other types of biopharmaceutical solutions.

These are some of the examples of the chill chain logistics or cold chain logistics.

The concept of cold chain logistics has been discussed in this session, in order to make you understand that in this course, we will be using these terms, these concepts, which should be very well understood by you.

Now, similarly, we have the concept of reverse logistics.

Once a customer receives the products, Processes, such as return or recycling, require the intervention of the logistic providers in the form of reverse logistics.

This kind of reverse logistics can include processes where the end consumer is responsible for the final disposal of the products. Even if the end-user is responsible for the final disposal of the products, there can be a role for the logistics providers in the form of reverse logistics.

Reverse logistics supply chain is that there is the end consumer and the end consumer, who, for whatever reason, returns the goods.

Return shipping takes place, and return shipping is processed, then movement to disposition.

Some kind of transport is required to settle the return, whatever is to be done.

These so-called movements for the disposition of the goods by the reverse logistics providers, which may be in the form of recycling or refurbishing, or it can be resale, depending on the condition of the return products, and it may end up again with some different end consumers.

This is the very typical type of reverse logistics cycle.

This is the concept that should be very clear before we go forward in this course.

The idea is to make you understand the different terms, the type of service providers, what their role is, and what kind of services they provide.

When we say one PL two part three, part four, part five, we also talk of the reverse logistics service providers.

We have the roles of the people who do consolidation, aggregation, and they provide services in such a way that the containers are full and the empty containers are minimized.

These kinds of concepts are there, which will make it much easier for you to understand this course.

Finally, the concept of assets and non-assets comes.

When we say 1PL, 2PL, 3PL, 4PL, 5PL, we have already discussed.

What we find is that, uh, the two major types, that is, the fourth logistic provider and the fifth logistic provider, do not have any assets.

Basically, they have the idea of innovation. Uh, the role is there, which is non-asset-based.

The idea is management-based or the integration of the services.

We have already discussed. While first party logistics, second party logistics, and third party logistics are increasingly based on the assets that they have assets in the form of warehouses, assets in the form of carriers assets in the form of, uh, the handling equipment.

Those are generally missing among the type of service provider, which are, uh, depending solely on the knowledge of the management of the services under logistics, to minimize the cost or optimize the cost or provide better services, premium services, or the integration of the different, uh, types and stages of logistics supply chain.

These are basically the ideas of understanding the logistics service providers.

What types of forms are there?

These kinds of things we have discussed in this particular session. In this session, basically simple idea was that every intermediary in the logistic supply chain has their own role.

They do some kind of, uh, benefit for the clients.

They justify their role by either minimizing the cost or providing better services or handling of the cargo, which is special cargo, for example, in this particular session, we talked about the temperature-sensitive cargo.

What I am trying to explain with all these kinds of concepts, especially the cold chain logistics or the reverse logistics, is that there are service providers that specialize in those kinds of special requirements also.

It is not just the minimization of the cost.

It is not just, uh, the strength of the assets or non-assets or management or integration ideas.

It is also a specialization.

The firms can also be identified in terms of the type of services they are providing, which may be special in nature, for example, cold chain logistics, or it can be reverse logistics.

All these things we discussed to explain to you what type of logistics service providers are there, either in terms of first party, second party, third party logistics providers, like that, or in the form of assets or non-assets, or in the form of a special type of service provider that talks of the reverse logistics and cold chain logistics.

That was the idea of this particular session.

Now friends.

I will be talking about some very important things about international logistics management, which actually forms the basis of the new thinking of international logistics. And the ideas, innovative ideas which have totally revolutionized the way international logistics management is done and how these small, small ideas have made big things possible, especially in terms of moving very large quantities of goods in more safer manner, more swiftly.

The speed of the movement of goods. And more affordably, more in more economically, the movement of goods can happen using certain very innovative ideas.

The most important ideas, the modern ideas, are the unitisation, palletization, and stowing of the cargo on the ships.

These simple ideas, with a scientific mind, innovation, and the mechanisation of the loading and unloading of the cargo, all these things have really helped in economizing as well as in making the operations smooth and more automated, so that more cargo can be handled.

We'll be talking about these things in this session.

The agenda of this session is that, uh, we will try to understand what actually is the unitisation, what is the importance of unitisation of cargo.

And in the unitisation, the most important role has been played by the very innovative idea that is the pallets.

What is the evolution of the pallets?

We will discuss. And what actually is the standardization in cargo handling in terms of the standard sizes of the pallets?

These things will be discussed, and also the different ways of doing palletization.

What do these different ways result in? What is the significance of these different ways of pelletization?

We'll be talking about that.

You will get an idea exactly what palletization is, and what all is involved in Palletization.

These things we will be discussing.

And then finally, we'll be discussing the role of the stowing of the cargo on the ships. Because the ships have become so large, due to this palletization and unitization, they require the very important planning of the placement of the goods.

We'll be talking about that placement that is stowing, and we'll also be discussing, finally, the actual real benefits of the palletization and this idea in the international logistics management.

These things will be discussed in this session.

If we talk about the Unitization.

Basically, what is happening is that you can understand that the moment the volume of business and the volume of the shipment becomes very, very large.

Especially when we talk of sea shipment, it is really very large.

If we talk about the cargo in the air, the shipment may not be that large.

When the shipment is not large, we can talk about the shipment from the individual boxes.

That kind of packing we can talk about.

But when we are dealing with the very large shipments and the time available for loading and unloading, and handling of the cargo is very less, like, for example, in sea shipments where hundreds and thousands of tons of cargo are moved per ship.

We are talking about that kind of cargo.

Individual boxes, individual cartons do not have any meaning.

What is happening in this sea shipment that instead of the individual cargo cartons or boxes, we are talking of the pallets?

And what is a pallet?

The pallet means unitization.

We have what we have done.

We have clustered these boxes, cartons into some kind of standardized units.

That has been helped by the idea of the pallets.

Those things have happened that kind of unitization standardization, so that standard sizes of those unitized pallets can be handled with the automatic mechanical heavy equipment.

Basically, what is happening is that essentially unitization means the grouping or bundling of the cargo wrapped into packages and loaded onto or inside the bigger units.

For example, here we are talking about the bigger units, which again is a unitization part of Unitization, and that is the container pallet is another level of unitization.

The containers are the next level of unitization.

What happens is that a certain number of pallets can slip into containers using the mechanized handling equipment, and then with the help of very heavy gantries and cranes, you can load or unload the containers on the ship container becomes the unit for the ship, and the pallets become the unit of the handlers or the people who are stuffing the containers.

And these pallets will have their own cluster of uh, uh, boxes and cartons.

That is the other level of the unit.

This kind of standardization unitization is happening.

Basically, what we are doing, aggregating these smaller packages, which I just talked to you about, the boxes, the cartons. The smaller packages, cargo into higher-weight or volume packages in order to minimize the handling. Instead of handling individual cartons and boxes, we are handling a standardized unitized pallet.

And that too, because of the standardization, can be handled by the mechanized handling equipment.

What happens? By doing this, there is a very high level of improvement in the productivity in the transport delivery chain, to avoid handling damages, the handling time, and the leakages, and improve the turnaround of the equipment.

The equipment, the mechanical equipment which are trained to handle certain sizes and volumes of the units, can be reused and immediately turned around to take up the next unit or pallets.

This improvement in the turnaround of the equipment in the system, for example, the equipment like containers or the ships or the trucks, because of the speed of the loading and unloading, these, uh, equipment, the container ships and any other uh, vehicles can be immediately deployed for the next shipment.

This time is reduced.

Basically, all this has happened with the concept of Unitization.

After all, why?

This we are going to discuss.

Bigger units in the form of pallets or in the form of containers, which are also standardized.

Those sizes are also standardized.

These bigger units can then be handled by the mechanized equipment's machines, such as forklifts or cranes, or a gantry.

The efficiency of the cargo handling increases, as the heavier units can combine many packages that are clustered and packed in pallets into one large package.

This large package can be at one level, the pallet, or on the other level, it can be a container.

These containers are also of standard size, like a 20ft container or a 40ft container.

The most common container size today is the 40ft container, which is 40 by length, eight by height, and eight by width.

These very sturdy containers made of steel contain the smaller units, that is, the pallets.

And these pallets are standard-sized pallets, unitized pallets that contain the individual cartons and the boxes, which can be of different sizes.

But they are arranged in such a way that the final pallet is of standard size.

That is the idea of standardization and unitization.

Friends, this whole idea has become possible with the help of the base, the base which is used for the pallets. That base can be of plastic, it can be of wood, and it can be disposable, or it can be permanent.

There can be different types of these bases, which are basically called pallets.

These are the pallets, basically.

These pallets can be the standard pallet, or they can be a slip sheet pallet, or they can be a skid pallet.

In short, they are called a pallet, a slip sheet, or a skid.

The idea of these plain standard sizes of pallet, slip sheet, pallet, and skid depends on the way handling is done.

Different kinds of products, different types of situations, and different types of handling equipment are available.

There may be a need for a different type of these bases.

Very common and very popular type of these bases which are used for pallets, slip sheet type, and skid.

This process of what is happening in the normal pallet and the slip sheet, pallet and skid, you can see here, I will just show you this video on how this is done.

You will get an idea that, uh, what is the difference between the normal pallet handling and the slip sheet pallet handling, and the skid pallet handling?

From this video, you will get an idea.

Friends, the palletization when we are talking about there a very normal different types of handling of the ways of palletization are you know, it can be done manually also, although increasingly the manual operation is very seldom done, or it may be semi-automatic palletization, or it can be fully automated palletization.

For this, I will also show you a video.

You will get an idea of what automated palletization is.

And it can also be robotic palletization.

Look at this video.

You will get an idea of what kind of automatic palletization and robotic palletization videos look like.

We have seen the different types of operations using the unitisation at the level of the pallets.

These pallets can be stackable and non-stackable, so that they can be handled once they are used.

If they are stackable, it becomes easier to carry them back, or it can be two-way or four-way from the forklift point of view, which means either they can be lifted from the two sides, or they can be lifted by the forklift from four sides.

Design is accordingly made, or these pallets in the final form can be the shrinkwrapped pallet or the stretch wrapped pallet, or it can be the strapped pallet.

The strapping can also be done depending on the different types of requirements.

Now the pallets themselves can be made of different materials.

They can be permanent or they may also be a disposable type.

Increasingly disposable types are being used because on the permanent pallets, carrying it back and keeping track is becoming difficult.

Disposable-type pallets are also increasingly used.

Now, this concept of palletization, unitization, and standardization has given rise to very large volumes and very large ships.

These large ships require proper planning of the cargo to be placed on the different parts of the ship, in the front of the ship, or in the middle of the ship in the middle, where the gravity is.

A certain kind of cargo requires less jerking or less vibration.

They are given certain instructions that certain types of cargo should be in the middle of the ship, or it can be on or below the deck.

Depends on the cargo, depends on the situation, the weight, and the volume. Many things.

This kind of whole planning is done using the ERP systems, IT software. This planning is done with the help of the handling equipment on the ship of the type, which can handle containers of different sizes, like 20ft or 40ft or any other size of containers, mostly being the 20ft or 40ft containers.

The equipment which are available on the jetty can place the goods as required or as understood by the captain of the ship.

This arranging and packing of the cargo in the vessel for the shipment is called stowing.

For example, a to is placed below deck if it may be damaged by exposure to the elements above the deck.

Any environmental elements or environmental conditions above the deck, like rain or stormwater it can damage the cargo.

It has to be below the deck.

As I told you, the different parts of the ship, when we talk of the amidships, which means the cargo is near the center of gravity of the ship, so that there is very little movement of the vessel.

The impact of the movement of the vessel is very less. Or in the fore, that is the front.

There, the movement of the vessel is quite large.

Any good that is not affected by that movement, movement is because of the floating of the vessel on the waves, sea waves. Or aft, that is the rear section.

Both the rear section and the fore section, that is, the aft section and the fore section of the ship, where the movement of and the vibration of the cargo is very, very high.

Certain cargo does not qualify to be kept there.

These have to be near the center of gravity, that is, amidships.

This kind of work is done in the stowing.

Friends, what are the benefits of unitisation and palletization in international trade

Logistics can be understood from the sixth S.

What are the 6 S? What does the 6 S mean?

The six S of Unitisation & Palletisation means the first is the savings.

What it means the economizing of international logistics, economizing on the cost of handling, economizing on the cost of freight, and the savings coming from the scale of operations, which is very, very large.

And the safety, because of the utilization, palletization, and the mechanized handling, the chances of fall of the units and the pallets falling are very, very low.

Safety is there. Speed definitely is very, very good.

Speed is there because of the mechanized operations, standardized operations, and unitized operations.

Speed becomes the biggest benefit in this. Simple to do because in spite of the fact that they are mechanized, they are helped by the IT support, which is uh, the uh, totally automated, robotized also in certain places.

And it is sustainable.

It makes the overall operation sustainable, and it makes the operation smart.

We are talking of smart logistics, which is based on smart sensors, which are based on the RFID tags, and in present times, even artificial intelligence.

Basically, talking of the smart logistics that is making the next level of revolution in the international logistics management, and it has a lot of potential to further make the international logistics management much more economical, much more safe, and much swifter.

Many, many new benefits will be emerging from these smart logistics.

Now, let us talk about the biggest revolution in international logistics that has taken place in the world in recent times.

That is containerization.

What is this containerization?

Containerization is the practice of carrying goods in standard containers.

You remember we talked about unitization, palletization, and standardization.

It comes from that only.

Standard containers of uniform shapes and sizes are used for shipping.

If it is by sea, there are certain specifications, certain types, and sizes.

If it is by air, they have different features of containers and sizes.

Almost anything can be stored in a container of this nature for shipment purposes, but they are practically and particularly useful for transporting manufactured goods generally.

These are generally not used for commodities or bulk cargo.

It is a method of distributing goods.

These containers have revolutionized this industry.

The international logistics industry has been in recent times.

Because of these containers, their handling has become optimised and mechanised, and that has helped in carrying very large quantities of goods on very big ships, especially in sea transportation. In air transportation, containerization has also helped a lot, especially in mechanizing the handling of the cargo.

If we look at the classification of the containers, we are talking about the sea containers. Containers are generally classified according to size in sea shipments.

Common sizes in sea shipments are 20ft, 40ft, 45ft, 48ft, 53ft.

In present times, the most common containers are 40ft and 20ft containers are available.

Generally, you also have 10-foot containers, but they are not very popular.

Similarly, in air transportation, we have something called ULD, which is the unit load device that also has a standard size.

If we look at different types of containers, we categorize these containers. Generally, we have two types of containers that I just mentioned: sea freight containers and air freight containers.

And I just mentioned to you, air freight containers are called ULD, Unit Load Device.

You can classify these containers by their uses because different containers are meant for different types of cargo.

For example, these containers, especially sea containers that carry a very wide variety of cargo.

The uses of these containers can be dry storage containers, flat rack containers, open top containers, open side storage containers, refrigerated ISO containers, ISO tanks, half-height containers, and special purpose containers. And in recent times, some innovations have also come.

One example of such innovation is collapsible containers.

This is the most common type of container that we call it as dry storage containers.

You will very commonly find these containers moving on trains and on ships. In general, you can see it when you are in the countryside or when you are going on highways, you will find these containers on trucks also.

Many times, these are dry storage containers, very, very commonly found containers.

Then you have something called containers for heavy load, which are of this shape and type. It can be of different colors.

There is no generally no standard color, but you will generally find it in 2 or 3 different colors.

This is the container shape that you can see for a heavy load.

Then you have specialized containers for easy loading of bulk cargo of this type.

The shape is made in such a way that the loading of bulk cargo can be done easily in this type of container. They are also called open-top containers.

Then we have this type of container that I just mentioned, an open-sided storage container.

These are generally used for carrying a wide range of cargo in international waters.

For temperature-sensitive cargo, you can see that these types of containers are used on dry ports or airports, which are called refrigerated ISO containers.

This is what they look like.

And we have special containers for liquids of this type.

These are called ISO tanks.

Then we have these half-height containers, generally used for coal or for stones of different types.

Sometimes they are also used for carrying marbles and ceramic tiles.

Then we have some different special-purpose containers of this type.

This is one example of a special type of cargo.

If we look at this revolution of containerization, what impact it has made on global trade, you can see that because of this containerization, things that have happened, I can give you some examples, like loading and unloading time has drastically reduced.

Generally, it is said that it has reduced from an average of ten days to just 24 to 48 hours.

It has also resulted in lower berthing times for the ships at the ports, and that's a very major impact containers have on this business.

Containers have also helped in the decongestion of ports. The nature and type of cargo that are handled by these ports, and the kinds of volumes these ports handle around the world, it is bound to become so much congested, thanks to the container revolution, that this kind of congestion has been drastically reduced because of containerization.

And also these containers have helped in the creation of ICDs and CFSs, that is, inland Container depots or container freight stations that have become part and parcel of the integrated international supply chain, intermodal and multimodal transportation.

Those kinds of concepts have totally revolutionized logistics and international logistics management.

It has only become possible due to containerization. Multimodal transportation, as I have just mentioned, is only possible because of this containerization.

Without containerization, this kind of multimodal transportation is impossible.

Also, a major impact of containerization is on the safe passage of the cargo from continent to continent.

This has made it possible to reduce the damage and the theft of carbon drastically, and also it has helped in the safety of the crew, ground crew handling the cargo, because very high level of mechanization.

Standardization of the sizes and shapes of containers has made it possible to almost fully mechanize the handling of the cargo.

A lot of help has been done by containerization in maintaining the safety of the ground crew, as far as the handling of the cargo is concerned.

And if we look at the impact of containerization on overall global trade, what many things we can say about it, but what we can definitely say is that there has been a rapid expansion of international trade, helped by the revolution in containers, in the last 50 years. We have seen this data that the total world export increased more than 65 times from almost 384 billion to 25 trillion in the last 50 years.

After adjusting for inflation, total exports have still grown tenfold at least ten times. And also, the fraction of internationally traded goods and services worldwide increased from less than 14% of the global GDP to more than 30%.

A lot of contributions, a lot of research papers are there.

A lot of contribution to this is due to the revolution of containerization.

For example, in the US alone, the ratio of exports to GDP went from 5.6% to 12.2% in the last 50 years. 17 million containers are in circulation worldwide, as calculated in the year 2000.

This is the kind of revolution I'm talking about.

Friends in this session, our idea was to appreciate the ideas of unitization, palletization, and standardization throughout unitization, palletization, and standardization.

It was very difficult to make the kinds of investments, which is to be needed to make the logistics management more modern, more mechanized, and more reliable, and the requirement of the ships to berth at the port, which has to be reduced.

The turnaround time has to be reduced for these vehicles, the floating vehicles, which can only be possible by speeding up the operations, which cannot be done manually.

To make it optimized, standardization Unitization has played a very, very important role, and the

The right type of investment has come, which is very highly capital-intensive, investments that are made by very, very large companies.

We have companies like Dubai Ports or the companies that are owned by the Adani Group.

They have come out with, you know, for example, in India, they have come out with many modern ports, these modern ports, and that kind of infrastructure is impossible without the unitization and the standardization. When we are talking of different levels, we are talking of the pallets or we are talking of the containers.

Later on in this course, we will be talking more about containers and what kind of revolution that has happened due to containerization.

Those things we will be discussing later in this course.

Okay, friends, now let us talk about packaging in trade logistics.

Here in this particular topic, we'll be talking about how do you define packing and packaging.

How do you differentiate between packing and packaging, and what is the importance of packaging?

What are the purposes that are served by packaging?

What are the legal and regulatory compliance requirements in global trade as far as packing and packaging are concerned?

These things we'll be talking about. We will also be talking about the rationale of different types of packing and packaging.

Let us start with the definition and significance of proper packing and packaging in international logistics.

Diving into this particular topic, we must know that as we embark on a crucial aspect of international trade logistics, the often underestimated heroes of supply chain, that is, packing and packaging, let's delve into understanding their definition and unravel their immense significance in the global movement of goods.

To start with, if we define packing and packaging, packing and packaging, often used interchangeably, they constitute the systematic arrangement and enclosing of the products within protective materials for safe transportation.

Packing involves the arrangement of the goods within containers, while packaging encompasses the materials and design used to protect and present these goods.

This is the definition of packing and packaging.

If we talk of the significance of packing and packaging in international logistics, we need to consider why packing and packaging matter in the grand scheme of international logistics.

We will try to answer this question.

Firstly, consider a journey across continents.

Your product, meticulously crafted or manufactured, embarks on an international voyage.

This journey is fraught with potential hazards, vibrations, shifts in temperature, and handling along multiple transit points.

Herein lies the significance of packing and packaging.

We are talking of protection in transit.

Therefore, proper packing and packaging act as the guardians of your goods, shielding them from the perils of transportation, especially international transportation.

Sturdy boxes, cushioning materials, and secure seals aren't just mere adornments; they form an armor, safeguarding against impact, moisture, and rough handling.

Then, if we talk about the aspect of preservation and quality assurance of the goods that you are sending internationally, effective packaging actually prolongs the shelf life and preserves the quality of the goods.

Imagine perishable items traversing continents, with correct packaging methods maintaining their freshness, ensuring they reach their destination in a state that meets consumers' expectations.

Here we are talking about the buyer, international buyers, overseas buyers. And then the aspect of reduced risks and increased efficiency.

Therefore, investing in proper packing and packaging mitigates risks, reduces damage or loss, translates to fewer disruptions, and minimizes financial losses and delays.

Thinking of it as an investment in the reliability and efficiency of your supply chain, and not to forget about the environmental considerations.

In this era of sustainability, the role of packaging extends beyond protection.

It embraces eco-friendly materials and practices.

Sustainable packaging not only safeguards your goods but also minimizes environmental impact, aligning with global efforts towards a greener future.

Concluding on this aspect, the significance of proper packing and packaging packing and packaging are not just a logistical component; they are the silent guardians of your products, ensuring their safe passage through the intricate web of global trade and trade routes.

This significance lies not merely in protection, but in the assurance that they provide.

They assure the integrity of your products, the trust of your overseas buyers, and the smooth flow of international commerce.

Remember, in the realm of international logistics, the way you pack and package isn't just a matter of protection; it's a statement of commitment to quality, reliability, and sustainability.

Now, if we try to understand the need for packaging in trade logistics here, we will try to understand this need of packaging in trade logistics from the point of view of different logistics activities like transportation, inventory, warehousing, and communication.

These are the four areas we will try to delve into the need for packaging.

Here is what we'll try to understand that if we focus on certain aspects of packaging, increasing the importance or decreasing the importance of certain aspects of packaging, what is the trade-off involved?

What benefit do we accrue? What happens better? What happens that may not be that good?

If there is any increase or decrease in the benefit, let's try to understand.

If we talk of transportation, the first logistics activity, and if we increase the package information.

Now, if we increase package information, what happens is that the trade-off is like this.

What it does is decrease shipping delays.

And this increase in package information also decreases the time required for tracking lost shipments.

This is a decrease.

Decrease in the timings.

Decrease in the time required for tracking the shipment.

It's a positive impact.

There can be positive as well as negative impacts.

There can be certain kinds of trade-offs.

We will have to make the right decisions to meet those tradeoffs.

If we look at, for example, another handle in the transportation activity in logistics, and we talk of the increased package protection.

Suppose we increase the package protection and make more efforts.

It definitely decreases the damage and theft in transit, but it increases package weight and transport costs.

Again, we are talking of an identified trade-off.

And let us look at the third logistic activity in transportation.

And if we increase standardization, we'll talk about unitization, palletization, and standardization in packaging and their importance, and you will understand it better.

What is the meaning of increasing standardization?

You can understand it in the sense that we are standardizing the dimensions.

If we increase the standardization of the way we pack and package with certain dimensions, it definitely decreases the handling cost because of the mechanized means we can employ. It also decreases the vehicle waiting time for loading and unloading of the goods. It also helps if you increase the standardization. It also helps in increasing modal choices.

That means the different modes that we can use for shippers and decreases the need for specialized transport equipment.

We can identify these kinds of trade-offs very easily from this particular information that I have derived from a research paper.

This information is very popular and very useful.

If we talk of inventory, that is the second logistics activity; inventory increases product protection. If we increase the product protection in packing and packaging, it decreases theft, damage, and probably the insurance cost also, and increases the product's availability.

Because protection is there, it increases the sales of course. You have better protection, you have more sales, and more availability.

It increases the product value and carrying cost also.

That's the flip side of this: increasing the protection, we increase the cost of the product and also the transportation cost.

And if we, for example, also talk about the logistics activity of warehousing. Here, increased product information.

If we increase the information of the product and the package, actually, it decreases order-filling time, of course.

And also it decreases the labor cost.

But it has more different side effects that we have to understand on a case-by-case basis.

If we increase product protection in this particular activity, there is the warehousing.

It increases the cube utilization because of stacking.

Because we have increased the product production, it is easier to stack it.

We can take it from one another, we can take the package from one another, and put more stacks.

Definitely, it increases the cube utilization of the warehouse, but it also decreases the cube utilization by increasing the size of the product dimension because of more production, more dimensions of the product.

Therefore, it decreases the cube utilization in such a way.

It depends on the case to case that by doing what, what overall result you are getting.

And if we talk of the same activity that is the warehousing activity, and if we talk of the increased standardization that we talked about, it decreases the material handling equipment cost because the standardization in warehousing also helps a lot.

Then last activity, if we talk about this logistic activity of communication. In the case of communication, increased packaging information, if we increase the packaging information, it decreases other communications about the product, such as telephone calls or any type of calls that are to be used to track down the lost shipments.

Definitely, it helps.

When we are talking of a stock of things that by handling and by having the different drivers to handle in this logistic activity, what will be the effects, what will be the increase, what will be the decrease, and what kind of trade-offs are required in what activities?

This particular account that I have just shared with you can be very useful to you in your overall planning of packing and packaging.

Now.

There is a concept of the different levels of packaging systems in international logistics.

And what are these three different levels?

That's very important to understand.

The first level, of course, is the box of the product that is in touch with the product.

That is the outer covering.

It can be retail packing or it can be display packing, whatever it may be.

Different types of packing may be there, but they do not touch the product.

It is the primary packing, as you can see here, followed by the secondary packing, which is a group of very similar kinds of retail packs.

Maybe that is the primary packs, maybe ten packs, 15 packs, or whatever it is to form a secondary packing like this.

And then for stuffing into the containers, we'll talk about it more later, also, in pallets, so-called pallets.

This is the tertiary packing.

You have these different bundles of primary packaging into secondary packing, and the secondary packing is stacked on pallets to form the tertiary packing.

These are mainly three levels of packaging in international logistics that need to be understood.

If we go in little detail about I just shared with you the things that I've just shared.

Different types of packaging.

If you talk about whether we start with the primary packaging or the so-called consumer packaging or so-called sales packaging, the packaging that is in contact with the product, I just mentioned to you the packaging that the consumer usually takes home, generally.

It's clearer to you what is primary. Secondary packing I just mentioned to you, is designed to contain several primary packages, 10, 15, 20, that I just showed you in the image in the last slide.

And tertiary packing is used when several primary or secondary packages are assembled on a pallet or roll container.

For simplicity, you should understand the concept palette that we will be talking about as well.

What are these pallets in unitization, palletization, and standardization?

This section will be talking more about Palletization.

This is tertiary packing.

And then we also talk about the term called Group packaging.

What is Group packaging?

Packaging is conceived to facilitate the protection, display, handling, and transport of a number of primary packages.

It is also called group packaging.

Sometimes the secondary packing is also called group packaging, with some displays there.

It is easy to handle.

Certain things are there.

The design is such that it is easy to handle and transport.

Manually also mechanically, sometimes pallets are called group packaging.

It depends on a case-by-case basis.

Now we sometimes use the word transport packaging or it is also called industrial packaging or it is also called distribution packaging.

What is this?

This packaging is which is conceived to facilitate handling, transport, and storage of several primary packages to provide efficient production and distribution, as well as to prevent physical handling and transport damage.

Design again, we are talking about design.

The thing that can be designed in such a way that it facilitates handling and the design of the transport, packaging or packaging or packaging probably depends on what item it is.

Is it liquid? Is it solid? Is it brittle?

Is it a special type?

What kind of item is it?

Is it a hazardous item?

All these things will dictate what type of transport packaging we are talking about.

We use this particular term in international logistics.

And then sometimes we also use a very common term, which is called display packaging.

What is this display packaging?

Display packaging is nothing but similar to group packaging.

Quite often, the emphasis is on display features. What are display features?

That is our emphasis in this.

That's why it is called display packaging.

And then we also use a term that is very, very common and very easy to understand.

That is the retail packaging. Retail packaging is, same as group packaging with a special emphasis on the design to fit in retail.

Here we are talking of a design that fits into retail, which means on display on the stand in a retail showroom or supermarket, to be picked up by you, and you take home retail packaging.

And finally, we also use the term "used packaging".

What is "used packaging"? Packaging or packaging material that remains after the removal of the product it has contained.

It's the leftover of the retail packaging.

These are very common terms that we use, uh, that we say of different types of packaging, but more or less for this course's purpose, you should definitely understand the difference between the primary packing, secondary packing, and tertiary packing.

That's very important.

If you look at the role of packaging very broadly, the role of packaging in the overall process of international trade logistics.

This particular diagram that I have prepared for you talks about production factors.

That includes your labor, resources, materials, including energy, and the information.

That means information that is there on the packages is the input to the logistics system.

So here we are talking about logistics systems.

And it encompasses logistics cost.

Depending on how much labor is there, how many resources are there, what materials have been used, how much energy is used, and what kind of information is available about the product.

That all adds to the cost, logistics cost, and that is the input to the logistics systems.

And this logistics system comprises four important things.

And what are those four important things?

Inventory management system, transport system, packaging system, and warehousing system.

If you understand this and all these four important elements of this logistic system, along with the order processing system, they interact with each other.

They form something of this type is some type of diamond in form.

It's a diamond model of a logistic system wherein four pillars, that is, the transport system, warehousing system, packaging system, and inventory management system.

They are interacting with the order processing system to give an output of this type.

And what is the output?

The output is logistics performance, as you can see here.

Here is what we are getting the benefit of this output supply and delivery service.

That means the right product and right conditions at the right time at the right place.

And that forms our judgment about the logistics performance based on this whole system. Their packaging system plays a very important role.

You will now understand it very easily because whatever I have said in earlier slides, you will understand the role of the packaging system very clearly.

Here, it is very, very important for you to understand what the different types of transit hazards are that have to be dealt with using your packing and packaging.

In general, there are four types of packaging-related hazards.

First is the shock that could result from drops or impacts in handling.

The second, which is very important, is the vibrations during the movement of the goods in transportation.

Third, the type of transport hazard could relate to compression. Packages stacked in storage or vehicles.

And finally, the fourth type of transport hazard refers to atmospheric hazards.

And when we say atmospheric, we are talking of temperature, humidity, altitude, static electricity, and similar types of atmospheric hazards.

These are the four categories of hazards that have to be looked into, and your packaging has the role to mitigate risks associated with these four categories of transport hazards.

Finally, I want to talk to you about the regulatory compliance that is required in packaging for global trade.

What are the most important regulatory compliances?

Here, we'll navigate through this crucial aspect of global logistics that often operates behind the scenes.

That is the regulatory compliance in packaging that

I just talked to you about. Let's delve into the world of international regulations and standards and understand their paramount importance in ensuring seamless global trade.

What are these international regulations and standards?

If we try to talk a little bit about them, these are the intricate tapestries of global commerce.

Adhering to international regulations and standards governing packaging materials and practices is pivotal.

Various regulatory bodies, such as the International Organization for Standardization (ISO and regional authorities, impose guidelines to ensure safety, environmental sustainability, and product integrity during international transportation.

All types of transportation actually

These regulations encompass a wide spectrum of aspects.

What are these aspects?

These can be from material specifications to design requirements to handling and to disposal guidelines.

They are crafted to safeguard not only the products, but also the environment and consumer well-being across borders.

Then what is the importance of these compliances for global trade?

International logistics?

Why is this compliance crucial for global trade?

Imagine shipping your goods to diverse destinations worldwide.

Each country may have distinct packaging regulations.

Non-compliance could lead to rejected shipments, customs delays, or even hefty penalties.

Ensuring adherence to these regulations mitigates these kinds of risks and paves the way for smoother, uninterrupted trade.

Navigating the compliance landscape might seem daunting, but it is imperative.

Familiarizing oneself with the regulations pertinent to different regions and industries becomes pivotal.

These regulations encompass diverse aspects such as the use of specific materials, product labeling, symbols denoting recyclability, for example, and hazardous substance restrictions.

And what is the role of standards in packaging compliance?

Standards play a crucial role in achieving compliance.

Adhering to recognized standards not only ensures conformity but also signifies commitment to quality and safety.

ISO standards, for instance, offer comprehensive guidelines for packaging that align with global practices, fostering smoother cross-border trade.

And then we ensure these compliances for seamless trade.

In the realm of international logistics, ensuring compliance is a strategic imperative.

Engaging with regulatory bodies, staying updated with evolving standards, and integrating compliance checks into your supply chain process.

Collaborating with packaging experts and industry peers also aids in navigating the maze of regulations.

Hello, friends.

In the last section, I talked to you about packing and packaging.

I also discussed the difference between packing and packaging.

Now you have a fairly good idea about what is the rationale of packaging in industrial trade logistics.

In this section, we'll move forward and we'll be talking about choosing the right packaging material for trade logistics.

What is the importance of choosing the right packaging material for trade logistics in international logistics management?

This is what you will understand.

Why is it important for you?

Your knowledge about material is connected with not only the cost of packing and packaging, but also various other concerns that may be needed in the present context, as well as they may be regulatory concerns in nature.

International regulations also require certain compliance in terms of materials that you use for international logistics management, packaging, and shipping of the goods. Those things we are going to discuss in this particular section.

So in this section, I will also talk to you about what the objectives of packaging are, and what different purposes we expect from packaging. those things I'll be discussing with you, and what are the factors to consider when choosing a packaging material?

What are the different things that come to mind when we choose packaging material?

Those things I'll be discussing in this section.

I will also be talking about are different types of packing materials that are used in international trade logistics, the shipping of goods.

What options are available?

Then only you will understand what material is to be used.

I will also discuss what is at stake,

If you are not concerned with the material that you use in packaging the right material.

What can be the consequences of that?

That's also what I'll be discussing with you.

I will also discuss with you the major functions of an ideal package. That will also help you to understand what material is to be used for packaging.

I will also discuss in this section with you what common materials are currently available for packaging that are popularly used in international trade logistics. I'll also share that with you. And very importantly, I will discuss with you the urgent need for sustainable packaging.

Why is it required?

Why is it becoming so important in international trade logistics?

What are the facts behind these things?

These things I'll be discussing with you. And I will also discuss with you some of the solutions that are available to have Sustainable packaging in international trade logistics.

We will be taking certain examples, small case studies I'll be taking in order to understand what is being done, what the deliverables are from industry and from international leaders when it comes to international packaging, international packing, and packaging for international trade logistics.

Those things I'll be discussing with you, some of the solutions.

Examples will be very, very useful to you.

What we are actually trying to do in this section we are trying to increase your knowledge about different types of materials that are available for packing and packaging of international shipments, goods that you are selling in the international market. And why is this knowledge important to you?

You will get a lot of confidence about the overall understanding of packaging when you know what materials you have, the options available to use and why, you need a different type of or a specific type of material for your goods.

That understanding will be very, very helpful to you.

You will get a lot of grip on this topic in this section.

Let's go into this section.

I will start with a small discussion on what the objectives of packaging or packaging, whatever it is.

What are these objectives?

First of all, if you think from the perspective of a marketer international marketer, the first thing that comes to mind is a delightful unboxing experience for the customer.

As a marketer, it is very, very important and pertinent for you that it happens.

This experience of unboxing is delightful, even if it is a shipment.

Even if it is a container. That is going to an overseas buyer; this is the first impression that you get.

And of course, pellets inside the containers, those pellets when they come out, what do they look like?

What communication do they give? What visual impression do they give? What observations are there of the overseas buyer about your efforts to protect the goods in the international journey?

What efforts have you put in, what material have you used?

What are the concerns that you have? If you have a concern that goes beyond the overseas buyer?

It goes beyond business.

It goes up to society and the sustainability of this planet.

Think of the kind of experience that overseas buyer is going to have with your shipment, and their impression of you as a seller.

Another objective of packaging is to bring new customers.

Ultimately, as a marketer, your objective is to get business and continue to get business.

Continuous business.

Ongoing business.

So you need new customers, and you would also be keen to retain your existing customers.

As I told you overseas buyer, what is his impression of you as an organization and about you as a marketer?

What are the things that you are going to do to retain existing customers?

There is a strong role of packaging in international trade logistics, especially when goods need to be protected when goods have to be able to do things much beyond just protection or movement.

It has to convey a lot of things.

What are those things that are going to decide whether a customer will be interested in giving you repeat orders?

And then, of course, environmental concerns and compliance, regulatory compliance, or packaging that we discussed in the last section.

Those objectives cannot be forgotten.

Environmental concerns and compliance play an important role for any seller anywhere on the globe, from any nation.

Environmental concerns are important. And a very basic thing that is the goods protection.

How well are you able to protect the goods, depending on what item you're exporting?

What is the status of the goods?

What is the condition of the goods?

What is the need for the goods?

What kind of protection do your goods require to traverse a very, very long journey?

That has to be one of the major objectives of packaging, and obviously, smooth transportation of the goods without any hassles, without any issues with the people who are handling the goods.

Ground crew, people who are there on the ship.

People who are there on boats, who are handling your goods, even if they are mechanized.

Handling may be mechanized. At various places, humans are involved in this.

It cannot be complete mechanization.

What kind of packaging did you use?

What materials you have used are going to decide on the smooth clearance of the goods at different points of the journey, and smooth transportation becomes another very important objective of packaging.

And finally, we should not forget about the need for branding.

Very important.

Ultimately, your branding has to be successful.

Packaging also has a role in deciding the status of your branding.

Your brand value is increased by your packaging.

And what are the factors to consider when choosing the right packaging material?

Let's talk about them.

Mode of transportation.

Moisture.

What are the characteristics of the products? What is the size of the product? What are the temperature conditions on the way?

In this international journey, at different points. What are the other atmospheric conditions on the way?

What is the budget? What is the strength of the material that is required to protect the goods, depending on the weight and size of the goods?

And who are your overseas buyers?

Who are the people you are dealing with?

What kind of pricing do you have in your business, and what are the expectations of the overseas buyers?

So your business audience becomes very important in this.

These are different factors to consider when choosing the right material, right packaging material for international trade logistics.

It becomes very, very important.

What different types of packaging materials are generally available and used in international trade logistics? What options do we have? Starting with wooden boxes, we have corrugated boxes or boards.

We have plywood crates, and then we have steel-based packaging. We have plastics to be used in different places. We have plastic containers, and we also have options that are based on jute.

Very environmentally friendly material that is jute.

These different options, starting from wooden boxes to corrugated boxes to plywood crates to steel-based packaging, plastics, and jute-based packaging, are different packaging materials that you have. But it is not

the end of the story.

Innovative materials are coming to the market.

A lot of experimentation is being done, and many recycled items or materials are available in the market that can be used.

We will be taking some very innovative examples at the end of this section. You will get an idea of what I'm talking about and why they are important.

your knowledge about what different types of packaging materials are available or which can be made available or in the future, what materials are possible and practical, also.

That kind of information and knowledge is very, very important for you to become a successful international logistics manager or exporter, or international trader.

Then let's talk about when we are choosing the right packaging material, and if we make mistakes, what is at stake?

This thing will tell you why choosing the right packaging material is so important.

At stake is product safety, the reputation of the company, the whole business, the business model, commercial aspects of business, and definitely the environment.

Ultimately, the environment is becoming a very major factor in international trade.

Sustainable ways of carrying out international trade are becoming very, very important in the present time.

The environment is very, very important.

Then, local and international regulations, regulatory compliances that we discussed in the last session also and goods of other suppliers.

What is the meaning of the goods of other suppliers?

Your shipment is not alone on the ship.

It is in conjunction with many other containers and shipments, as I had told you also about, uh, especially sea shipments.

These vessels, sea vessels, are huge vessels. Giant vessels.

They contain an enormous amount of goods on these ships.

Goods of other suppliers are also there.

If there is any problem with your shipment, that may result from the wrong material used in packaging.

It can spill into the goods of other suppliers that are adjacent to your shipment on the vessel.

Those goods are also at stake in international shipments.

Let us talk about what are the five major functions of an ideal packaging.

And when we say ideal packaging, we include the right material, that you use shape, dimensions, and design of the packaging and material.

Everything is to make it ideal packaging.

So five major functions include things like:

Protection, protection of the goods. protection of the shipment.

International shipment on the voyage. International journey.

Identification of the goods in a sea of goods on the ship that are lying in a huge number on big ships.

Identifying your goods on board.

Off board. On the board.

In the warehouse.

It becomes very, very important.

Identification for intermediaries. Identification for goods handlers.

Identification for the customs department. of the port of loading as well as the port of discharge, it becomes a major function for the right and ideal packaging. identification of goods. And communication, right communication.

Communication with regard to what is there inside that is already packed.

Nobody knows what is inside.

Are you able to communicate correctly if the material is hazardous?

Whether you have put the right labels and markings on the packages, and whether you have used the right material to mitigate any risk of the type of things that are inside the shipment, so that everybody is fearless while handling your goods.

All the people on the way who are handling your goods should feel safe, and they will feel safe if you communicate correctly, honestly, and rightly.

That is a very important function of an ideal package.

And definitely convenience.

Convenience of everybody, convenience of you, convenience of people who are handling your goods at the port. Convenience of people on board, off board, everybody. including the ground crew.

Intermediaries, agents, clearing and forwarding agents, and people from customs.

It should be convenient for everybody.

They should feel comfortable with your goods to ensure your shipment moves smoothly. And definitely about marketing.

Ultimately, to remain in business, your marketing has to be in place at every point, even during shipment.

Even when goods are being shipped from your country overseas.

In international logistics, everything should be as per your marketing strategies.

So an ideal package should be able to market yourself, market your company, and market your product at every stage.

These are the five functions of an ideal package.

That is what I wanted to discuss with you.

And if you talk about what common materials are currently used for packaging.

In different forms, whether it is primary packing, whether it is secondary packing, whether it is tertiary packing, what are the materials that are currently used, including plastics, metals, papers, foils, aluminum foils, or any other material, glass, and others?

All these different types of materials are currently used.

But it does not mean that you are confined to these materials only. To mitigate the risks of environmental damage, new materials are coming to the market.

Those have to be used, and depending on the size of your operations, you may need to consider a lot of factors to zero in on the right material that you're going to use for your packaging.

And if we talk about the need for sustainable packaging, why is this need there?

In fact, I did not tell you.

But I want to give you some background so you have a fairly good idea of how important it is now to have sustainable packaging.

Packaging materials constitute about 65% of global solid waste.

Approximately 3 million tons of plastic are produced every year across the globe.

As of 2018, a total of about 6.3 billion tons of plastic had been produced over the last 68 years.

Of this, only 9% has been recycled, and only 12% has been incinerated, and the remaining 79% is stranded as pollution contaminating both land and oceans.

The contribution of international trade logistics in this percentage is very, very high.

As I told you that 65% of global solid waste is attributed to packaging materials, and a very large portion of this packaging material is associated with international trade logistics.

So what is the solution to this?

We have talked about the materials and types of packing that are available in the market.

But the need is to find innovative materials, which are biodegradable, which can be used for packaging in International trade logistics, especially. Which should be compostable, which preferably should be plant-based.

It is possible.

And packaging design can also be a solution.

A lot of advancements have already taken place.

Those advancements, if you can get hold of and adopt on the need basis on case to case basis, those packaging designs.

If you can adapt to using the right materials, those designs will also dictate to you what materials should be used.

If you use the right material with the right packaging, design solutions are possible and will definitely improvements in the distribution and use-phase period.

If you can improve distribution methods, and if we can elongate the use of the material that we are using, if we can reuse those items, or we can do some innovative ideas in the sense that it does not damage the environment, this can be a good solution. And improvements in the end-of-life processing.

Whatever material you are using in packaging, it will have an end of life.

Are you concerned with that, your concern with its end of life, and how it is to be disposed of?

How is it to be processed at the end of life?

If you can make some improvements, you have some ideas that are business-friendly ideas.

It can become a very good solution in this regard.

Let us talk about this small case study of Coca-Cola, the Coca-Cola company. Coca-Cola labels in Sweden issue calls to action in support of a circular economy, end-of-life processing, circular economy that says recycle me again.

I am made of 100% recyclable Plastics.

So you have 100% recycled plastic.

You have plastics, but it is 100% recyclable.

That is suited to the circular economy, which means the packs, which means in this case cola bottles, have to come back.

So I'm talking about this innovative idea, an innovative solution for a company like Coca-Cola.

So the familiar brand colors of Coca-Cola, Fanta, Sprite, and Bonaqua are turning all white with a powerful and simple message.

Recycle me again.

I'm made of 100% recycled plastics. Made in Sweden.

It is a very business-friendly message, but it is also environmentally friendly.

So efforts are being made to contribute to a circular economy by encouraging consumers to recycle their plastic bottles.

So these keep coming back as new bottles in the market. Because it is made of 100% recyclable plastic.

That's the catch point.

So it is important sustainable message of recycle me again. Very important.

I want to talk to you about some of the discussion questions that come to mind when we are talking about these small case studies.

And I want you to think about these questions.

Question 1 is: How effective would this campaign be?

I talked to you about the Coca-Cola company campaign.

If it is introduced in your country, think about it.

How can you improve this campaign to make it more effective in your own country?

If you feel comfortable with this idea, and if you feel bullish about this idea that I just shared, can it be replicated in your country?

What would be the biggest barriers for such efforts that are depicted in this particular small case study by big brands in your own country?

Think about it.

What should your government, your country, government should do to support these efforts by the industry?

Similar to what Coca-Cola did.

So on these questions, I encourage you to take up this assignment that I'm just giving to you in the next lecture.

Look at this assignment and try to answer the questions that are asked in this assignment.

Let me show you some of the innovative ideas that are there in the market.

And those are very promising in nature.

Let us start with this idea of edible water bubbles.

This edible water bubble is set to replace plastic bottles.

Do you think that this idea can be useful?

Look at this idea.

I'll just show you what this idea is all about.

This is Designboom.

I will just show you this video.

Look at this video.

You will have an idea what I'm talking about.

Hi.

We are skipping Rocks Lab, and our goal is to make packaging disappear.

Our first product is a membrane that can encapsulate water or any kind of liquid.

It's made of seaweed, and it's so natural that it's biodegradable and even edible.

Cheers.

Since we started the company in 2014, we've been developing the technology and improving the properties of the material here at Imperial College London.

With our industrial partners, we have developed an innovative manufacturing process that can produce

Ohos are cheaper than plastic bottles.

Ohos is perfect for hydration on the go.

Think festivals, marathons, and on the street.

For the past six months, we've been doing pilot events, and people love it.

Now we're ready to take Ohos to bigger audiences, and we're targeting major events such as the London Marathon and Glastonbury. As part of this scale-up, we are developing a manufacturing machine that will produce Ohos automatically.

Skipping rocks lab is bigger than just Ohos, and we are currently working on our second product.

Continuing to pioneer the use of seaweed for other sustainable packaging solutions. Our fast-growing team is composed of chemists and engineers, and a strong advisory board.

Liz brings the business skills. She has seven years of professional experience in the finance industry, private equity, and commercial development at BP.

Pierre and Rodrigo both graduated from the Royal College of Art and Imperial College London

Master's in innovation design, engineering.

Pierre was a packaging engineer at L'Oreal, and Rodrigo is an inventor and senior lecturer in product design.

We are now raising our first round, and that's where you come in.

Up until now, we've funded ourselves successfully through grants and awards, but it's time to let everyone share and Skipping Rocks Lab's success and be part of the movement to reduce plastic waste.

You can buy now shares of Skipping Rocks Lab for as little as $10 or as much as you want.

Think outside of the bottle.

Invest in the skipping rocks lab.

This was an edible water bubble getting set to replace plastic bottles.

Let us take some more examples.

This is a loliware dot com.

It is talking about introducing AI-driven seaweed biomaterials.

They are another very environmentally friendly alternative to plastics.

Actually, it's a total evolution.

I want to talk about it.

You can visit the website of this company, loliware dot com, and they are very innovative people.

They have come out with some very revolutionary ideas.

Look at those ideas.

This is about L'Oréal's latest innovation for more sustainable packaging.

The paper bottles. L'Oreal innovates for a sustainable beauty routine with an exclusive paper bottle developed hand in hand with the paper bottle.

Another very interesting idea in the market.

So these were some of the things that I wanted to discuss with you in this section.

And this section, I'm sure, was able to give you some background on the things that generally people tend to ignore and disregard, but are very, very important.

What kind of material are you using?

What are the packaging designs, and accordingly, the materials that have to be used?

What is your case?

How do you choose the right material, and what are the functions, the philosophy behind the packaging, and the actual functions?

Actual role of packaging.

If you understand that, and if you have these ideas in your mind, you are confident that you have a better understanding of packaging, packaging and the materials that you use.

That was the purpose of this particular session.

I'm sure this session must have given you good thoughts to think about, when we talk of packing and packaging, and the right materials to be used for meeting all concerns, your concerns, your biases, society concerns, and the concerns of the planet.

Environmental concerns.

Thank you.