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Innovative Transportation Solutions
 
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GLOBAL LOGISTICS CHAIN II
 

CONSOLIDATOR:

  • If involved responsible for receiving freight and issuing the Forwarder's Cargo Receipt (a negotiable document), ensuring the goods received are in good order, that all marks and numbers are complete, that the shipment is staged and ready for loading, that the document package is complete, a booking is made with the steamship carrier and truck/rail arranged to the pier/shipside, and that the importer, manufacturer, buying agent, et al., are informed of all particulars of the receipt of the goods and eventual shipment from the consolidator's facilities.
  • In addition they must supply and distribute all information/documents necessary for compliance with the Letter of Credit and/or sales agreement/Purchase Order.

Possible barriers:

  • Untimely coordination with steamship carrier and/or truck/rail company.
  • Incomplete or inaccurate preparation of the document package or incomplete distribution of this document packet.
  • Poor communications with the manufacturer, local truck line/rail company, shipping company, banking institution, or importer.
  • Lack of ability to get space bookings in the heavy shipping season: which means they could not get containers dispatched to the manufacturer and/or to their own Container Freight Station. This is largely based on their relationship or lack of same with the shipping company.
  • Lack of the technology to receive, hold, and move cargo and transmit documents to the ocean carriers and Importers, and to communicate with banks, manufacturers, truck and rail lines, etc.

CUSTOMS AT ORIGIN:

  • Responsible for issuance of quota, Export License control, document control, coordination with manufacturer, shipping companies, et al.

Possible barriers:

  • Untimely completion of documents by brokers and/or manufacturers, and/or Importers of record.
  • Changes in procedures and staffing restrictions, etc.
  • Lack of technology to transmit documents and information vis-à-vis those documents, lack of experience in handling sophisticated documents packets, and a lack of trained staff to handle all of the above.
  • Lack of funding to improve technology and to maintain a trained staff.

BANKING INSTITUTIONS:

  • Responsible for assisting the manufacturer and importer with all financial documents, with assuring there is compliance to all Letter of Credit terms and conditions, that payment is timely after compliance with Letter of Credit requirements, is assured, that all documents are forwarded on a timely basis to the importer and/or a designated agent of the Importer so delays at destination are avoided and subsequently payment to the manufacturer/buying agent is also delayed.

Possible barriers:

  • Untimely handling and issuance of documents by origin customs, manufacturer, buying agent, et al.
  • Lack of attention to details of the Letter of Credit.
  • Poor communications with the manufacturer and/or Importers.
  • Slow payment to the manufacturer (this can be most crucial since most manufacturers need cash flow to be very timely, many are cottage industry level and simply survive order by order).
  • Late or partial shipments by the manufacturer may be a difficulty.
  • Lack of trained staff sufficient to handle the task.

PORTS OF ORIGIN (applies to Destination Ports as well):

  • Responsible for shore side operations, maintenance of facilities, development of technology that will enable it to accommodate vessels and operations suitable to its trade, management and administration of all of the above, pricing for its services and/or real estate and/or development, development of connecting linkage for highway/road access and intermodal linkage may even be a responsibility of the Ports dependent on local circumstances.
  • When evaluating Port responsibilities it must be understood that not all Ports are operating Ports and some may have developed or be subject to a strategy that simply calls for land development and nothing more.

Possible barriers:

  • Lack of understanding of their clients' strategies and future needs including operational, infrastructural, technological, administrative, and service needs.
  • Lack of market knowledge regarding trends and overall trade movements for their economy and regional economies, et al.
  • They may also suffer from a lack of professional staff and management, or funding sufficient to keep up with needed improvements on technological basis.
  • Port congestion caused by poor access to Intermodal connectors, rail, or even direct connections to their National Transportation System.
  • Lack of funding and/or revenue stream to support the technological advancements and to maintain trained staff sufficient to the task.

NON-VESSEL OPERATOR COMMON CARRIER (NVOCC):

May also function as a consolidator (see points listed under Consolidator: receives goods and prepares documents).
Basically ships cargo under their own rate structure and buys wholesale or low retail and resells space at low retail or better.
Usually a non-asset based company.
If involved, prepares the Forwarder's Cargo Receipt which substitutes for the Original Bill of Lading in the initial stages of the transaction, creates their own BL and issues it for banking purposes and Letter of Credit compliance, may arrange local truck/rail and makes the booking and arranges steamship carrier equipment to be dispatched to the manufacturer and/or to their own Container Freight Station.
Communicates directly with the Importer, possibly Customs, origin and destination transportation entities, and/or the Importer.

Possible barriers:

  • See comments under Consolidator and Steamship Operator.

STEAMSHIP OPERATOR:

  • May be conference (rate agreement) or rate non-conference (non-rate agreement) members and may derive additional income from consolidation, rail/truck operations including Intermodal operations, warehouse/distribution, etc.
  • Obviously an asset based company.
  • Responsible for vessel availability, schedule integrity, space and equipment on the vessels, all landside operations unless seconded to agents (stevedores, husbanding agents, terminal operating companies) and, of course, for all the attendant costs associated with vessel operations.
  • Customer service, documentation, and all other administrative and managerial detail involved with the vessel and shore side operations.
  • Dependent on their own strategy they may be directly involved in intermodal operations (origin and destination), distribution, etc.
  • They may negotiate directly with rail lines, truck lines, etc. for equipment, space, pricing, service, etc., and along with these may address issues such as congestion, port access, Intermodal connectors, etc.

Possible barriers:

  • Port congestion.
  • Port access: Intermodal connectors included.
  • Staffing: manpower needs may not be adequately addressed.
  • Lack of technology, i.e., Electronic Data Interchange.
  • Lack of schedule integrity.
  • Changes in vessel rotation, vessel size, container size and availability.
  • Lack of coordination with truck and rail entities.
  • Lack of coordination with Governmental agencies, i.e., Customs, Agriculture, Port Authorities, etc.
  • Flag changes.
  • Inconsistent pricing (this usually would be a problem between carriers in a trade rather than a problem internally with a carrier).
  • Lack of a revenue stream to maintain the technology as demanded by the market, and to maintain a staff sufficient to the task.

DESTINATION CUSTOMS AND OTHER GOVERNMENTAL REGULATORY AGENCIES:

  • Responsible for enforcement, tariff compliance, collection of duties, assistance to the Importer on what can and cannot be imported and at what duty rates, under what quota requirements, etc. They have a very positive side and if approached properly can be a great asset, and can be quite helpful in the through movement of goods.
  • They are a possible revenue source for and government involved.

Possible barriers:

  • Untimely handling of documents with brokers, forwarders, importers/exporters, and steamship operators, et al.
  • Lack of adequate staff to handle the volume and/or the sophisticated level of imports (there are manpower freezes in a number of countries).
  • Lack of proper and adequate assistance to the Importer and manufacturer before exportation/importation takes place.
  • Lack of coordination with origin Customs and other governmental agencies.
  • Lack of technology for a direct interface between brokers, forwarders, steamship companies, ports and other governmental agencies.
  • Inter-Agency rivalry.
  • Lack of funding sufficient to maintain the technology demanded by the marketplace and by the volume they may be handling, and to maintain a trained staff.

CUSTOMHOUSE BROKERS:

  • Responsible for documentation and direct interface with Customs, Agriculture, and other governmental agencies. May possibly deal with rail/truck/distribution facilities, if the Importer so desires.
  • Charges a fee for various services.

Possible Barriers:

  • Untimely handling of documents by importer/exporter, freight forwarders, consolidators, ocean carriers, etc.
  • Lack of well-trained staff and also lack of well-trained Customs' staff to interface directly with them.
  • Lack of technology to directly interface with clients, governmental agencies, etc., etc.
  • Lack of sufficient revenue stream to support the maintenance of a trained staff, and the technological development demanded by the market they may be in.

DESTINATION PORTS:

  • See Comments under Origin Ports above and please note that Barriers are basically the same.

RAIL LINES/TRUCKING COMPANIES: Including entities offering Intermodal operations/services, and this group would include all Third Party entities

  • Responsible for interface with Customs Brokers, Steamship companies, warehouse/distribution facilities/companies, and in the case of line haul operations may interface with local trucking companies for local distribution.
  • Responsible for scheduling and schedule integrity, equipment availability, equipment control, documentation, line and terminal facilities control and maintenance, technological support for their operations consistent with accepted industry standards for service and operations, i.e., Electronic Data Interchange, direct interface with ocean carriers, brokers, etc.

Possible barries:

  • Lack of equipment to cover normal and peak periods.
  • Poor fleet management, i.e., equipment control.
  • Lack of sufficient direct communications with Importers, shipping companies, Brokers, et al.
  • Lack of staffing sufficient to handle normal and peak periods, etc.
  • Lack of technology to complete direct interface for documentation, et al.
  • Insufficient revenue stream to support the technological advancements needed, and for the maintenance of staff sufficient to the task.

DESTINATION WAREHOUSE/DISTRIBUTION ENTITIES (either controlled and/or owned by the Importer or independent of the Importer):

  • Possible need to interface with Customs and other government agencies.
  • Responsible for coordination with rail/truck, direct interface with Importer and/or store level personnel, proper storage, adequate inventory and record keeping for all goods received and dispatched/distributed, equipment control and return on a timely basis of rail/truck/ocean carrier equipment, etc.

Possible barriers:

  • Untimely distribution to importer and/or store level.
  • Lack of coordination with rail/truck/ocean carrier.
  • Improper record keeping.
  • Lack of inventory control, inadequate facilities, staffing, and lack of technological development sufficient to handle the clients' needs, including updated computer systems would be an area of continuing concern.
  • Capital to keep up with the increasing demands on the system