CONTAINER HANDLING GLOBAL TRENDS

8/7/2019 CONTAINER HANDLING GLOBAL TRENDS

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CONTAINER

A typical container has doors fitted at one end, and is constructedofcorrugated weathering steel. Containers were originally 8 feet(2,438 mm) wide by 8 feet (2,438 mm) high, and either a nominal 20 feet(6,096 mm) or 40 feet (12,192 mm) long. They could be stacked up toseven units high. Taller units have been introduced, including 'hi-cube' or'high-cube' units at 9 feet 6 inches (2,896 mm) and 10 feet 6 inches(3,200 mm) high. The United States often uses longer units at 48 ft(14.63 m) and 53 ft (16.15 m). Some rare European containers are oftenabout 2 inches wider at 2.5 m (8 ft 2.4 in) to accommodate Euro-pallets.Lighter swap body units use the same mounting fixings as Intermodalcontainers, but have folding legs under their frame so that they can bemoved between trucks without using a crane. Each container is allocateda standardized ISO 6346reporting mark (ownership code), four characterslong ending in either U, J or Z, followed by six numbers and a check digit.

Container capacity is often expressed in twenty-foot equivalentunits (TEU, or sometimes teu). An equivalent unit is a measure ofcontainerized cargo capacity equal to one standard 20 ft (length) 8 ft(width) container. The 45 ft (13.72 m) containers are also commonlydesignated as two TEU, although they are 45 and not 40 feet (12.19 m)long. Two TEU are equivalent to one forty-foot equivalent unit(FEU).

Containers can be transported by container ship, semi-trailertruck and freight trains as part of a single journey without unpacking andthey are transferred between modes by container cranes at containerterminals. Units can be secured during handling and in transit using

"twistlock" points located at each corner of the container. Every containerhas a unique BIC code painted on the outside for identification andtracking, and is capable of carrying up to 2025 tonnes. Costs fortransport are calculated in twenty-foot equivalent units (TEU).

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http://en.wikipedia.org/wiki/Corrugated_galvanised_ironhttp://en.wikipedia.org/wiki/Weathering_steelhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Pallethttp://en.wikipedia.org/wiki/Swap_bodyhttp://en.wikipedia.org/wiki/ISO_6346http://en.wikipedia.org/wiki/Reporting_markhttp://en.wikipedia.org/wiki/Twenty-foot_equivalent_unithttp://en.wikipedia.org/wiki/Twenty-foot_equivalent_unithttp://en.wikipedia.org/wiki/Container_shiphttp://en.wikipedia.org/wiki/Semi-trailer_truckhttp://en.wikipedia.org/wiki/Semi-trailer_truckhttp://en.wikipedia.org/wiki/Freight_trainhttp://en.wikipedia.org/wiki/Container_cranehttp://en.wikipedia.org/wiki/Container_terminalhttp://en.wikipedia.org/wiki/Container_terminalhttp://en.wikipedia.org/wiki/Twistlockhttp://en.wikipedia.org/wiki/ISO_6346http://en.wikipedia.org/wiki/Twenty-foot_equivalent_unithttp://en.wikipedia.org/wiki/Corrugated_galvanised_ironhttp://en.wikipedia.org/wiki/Weathering_steelhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Pallethttp://en.wikipedia.org/wiki/Swap_bodyhttp://en.wikipedia.org/wiki/ISO_6346http://en.wikipedia.org/wiki/Reporting_markhttp://en.wikipedia.org/wiki/Twenty-foot_equivalent_unithttp://en.wikipedia.org/wiki/Twenty-foot_equivalent_unithttp://en.wikipedia.org/wiki/Container_shiphttp://en.wikipedia.org/wiki/Semi-trailer_truckhttp://en.wikipedia.org/wiki/Semi-trailer_truckhttp://en.wikipedia.org/wiki/Freight_trainhttp://en.wikipedia.org/wiki/Container_cranehttp://en.wikipedia.org/wiki/Container_terminalhttp://en.wikipedia.org/wiki/Container_terminalhttp://en.wikipedia.org/wiki/Twistlockhttp://en.wikipedia.org/wiki/ISO_6346http://en.wikipedia.org/wiki/Twenty-foot_equivalent_unit


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OBJECTIVE OF CONTAINER TRACKING

To create a Vessel tracking network to track vessels to enhance maritime safety and security,environmental protection and emergency response.

STRATEGY

To study the major trends shaping the market and the implications for port andterminal development

Forecast demand growth by region and type.

The impact of new industry structures

An analysis of productivity and regional trends

A definition of changes in the terminal market place

An analysis of port-wide service and cost levels - the true position

The effects of emerging new rules and regulations

Tendering approaches to container terminals

A guide to reducing the environmental impact and congestion levelsin container terminals .

CONTAINER HANDLING GLOBAL TRENDS

TWIMP = T + W + I + M + P

LOGISTICS INTEGRATED

Where

T = Transportation by Air, Sea and Land

W = Warehousing & Inventory Management

I = Information Technology

M = Materials Handling

P = Packaging,Marking & Labelling

Container shipping has been the fastest growing sector of the maritimesector in the last two decades. Today container traffic is estimated toaccount for more than 70% of international seaborne trade by cargo value. In2004, an estimated 928 million tons of containerized cargo was transportedby sea in international and domestic trades. In their 2005/06 ContainerMarket Review, the Drewry Shipping Consultants indicate a solid growth of11,2% container activity, reaching 400 millionTEU

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http://dev.ulb.ac.be/ceese/ABC_Impacts/glossary/teu.phphttp://dev.ulb.ac.be/ceese/ABC_Impacts/glossary/teu.php


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THE FORCES BEHIND GLOBALIZATION

1. INCREASE IN THE EXPANSION OF TECHNOLOGY

Vast improvements in transportation and communicationstechnology- including the development of the internet- havesignificantly increased the effectiveness and efficiency ofinternational business operations.

2. LIBERALIZATION OF CROSS-BORDER TRADE AND RESOURCEMOVEMENTS

Over time most governments have lowered restrictions on trade andforeign investment in response to the expressed desires of theircitizens and producers. In addition, the general Agreement on tariffsand trade, the development of economic blocs such as the EuropeanUnion, and other such facilitating mechanisms have providedincreased access to many foreign markets.

3. DEVELOPMENT OF SERVICES THAT SUPPORT INTERNATIONALBUSINESS

Services provided by government, banks, transportation companies,and other businesses greatly facilitate the conduct and reduce therisks of doing business internationally.

4. GROWING CONSUMER PRESSURES

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Because of innovations in transportation and communicationstechnology, consumers are well-informed about and often able toaccess foreign products. Thus competitors the world over have beenforced to respond to consumers demand for increasingly higherquality, more cost- competitive offerings.

5. INCREASED GLOBAL COMPETITION

The pressures of increased foreign competition often persuade toexpand internationally in order to gain access to foreignopportunities and to improve their overall operational flexibility andcompetitiveness.

6. CHANGING POLITICAL SITUATIONS

The transformation of the political and economic policies of theformer Soviet Union and the peoples Republic of China has led tovast increases in trade between those countries and the rest of theworld. In addition, the improvements in national infrastructure andthe provision of trade-related services by governments the worldover have further led to substantial increases in foreign trade andinvestment levels.

7. EXPANDED CROSS-NATIONAL COOPERATION

Governments have increasingly entered into cross-national treatiesand agreements in order to gain reciprocal advantages for their ownfirms, to attack problems jointly that one country cannot solvealone, and to deal with areas of concern that lie outside the territoryof the countries. Often, such cooperation occurs within theframework of international organizations such as the United Nations,the International Monetary Fund, The World Trade orgn., and theInternational bank for Reconstruction and Development (WorldBank).

Electronic Cargo Tracking System and SolutionElectronic Cargo Tracking Solution including container security tracking isonly effective when the transport history are tracked and monitored fromend-to-end with holistic approach.

According to Research, the GPS and other electronic container tracking

technologies. Time has come due largely to security issues and the

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promises of substantial commercial benefits from a supply chain andenterprise resource planning (ERP) perspective.

While the use of electronic container tracking solutions is projected toclimb steadily, less than 10 percent of containers will utilize this

technology until the later part of this decade. Leading primary marketbarriers cited were: Lack of standards (28 percent); lack of apparent ROI(20 percent); technology immaturity (19 percent); industry fragmentation(18 percent); and prohibitive costs (15 percent).

GPS 16%Cellular Messaging 15%Wi-Fi 12%RFID-UHF 10%Bluetooth 9%

Satellite Messaging 9%RFID-HF 8%RFID-LF 7%RFID 6%UWB 5%

Tracking Technology

Location tracking is not one, single technology. Rather, it is theconvergence of several technologies that can be merged to createsystems that track inventory, livestock or vehicle fleets. Currentlytechnologies being used to create location-tracking and location-basedsystems include:

1. Geographic Information Systems (GIS) - For large-scalelocation-tracking systems, it is necessary to capture and storegeographic information. Geographic information systems can

capture, store, analyze and report geographic information.

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2. Global Positioning System (GPS) - A constellation of 27 Earth-orbiting satellites (24 in operation and three extras in case onefails). A GPS receiver, like the one in your mobile phone, can locatefour or more of these satellites, figure out the distance to each, anddeduce your location through trilateration. For trilateration to work,

it must have a clear line of sight to these four or more satellites. GPSis ideal for outdoor positioning, such as surveying, farming,transportation or military use (for which it was originally designed).

KEY COMPONENTS OF CTS IN GPS(i) Antenna(ii) Receiver Module(iii) RFM (Radio Frequency Module)(iv) Battery

3. Radio Frequency Identification (RFID) - Small, battery-lessmicrochips that can be attached to consumer goods, cattle, vehiclesand other objects to track their movements. RFID tags are passiveand only transmit data if prompted by a reader. The readertransmits radio waves that activate the RFID tag. The tag thentransmits information via a pre-determined radio frequency. Thisinformation is captured and transmitted to a central database.Among possible uses for RFID tags are a replacement for traditionalUPC bar codes. See How RFIDs Work for more information.

4. Wireless Local Area Network (WLAN) - Network of devices thatconnect via radio frequency, such as 802.11b. These devices pass

data over radio waves and provide users with a network with arange of 70 to 300 feet (21.3 to 91.4 meters).

Any location tracking or location-based service system will use one or acombination of these technologies. The system requires that a node or tagbe placed on the object, animal or person being tracked. For example, theGPS receiver in a cell phone or an RFID tag on a DVD can be used to trackthose devices with a detection system such as GPS satellites or RFIDreceivers.

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GLOBALIZATION AND INTERNATIONAL BUSINESS

Factor Advantage

Standardtransportproduct

Can be manipulated anywhere in the world (ISOstandard).Specialized ships, trucks and wagons.

Flexibility ofusage

Raw materials (coal, wheat), manufactured goods, cars,frozen products.Liquids (oil and chemical products) and reefers (50% of allrefrigerated cargo)..

ManagementUnique identification number and a size type code.Transport management not in terms of loads, but in termsof unit.

Costs Low transport costs; 20 times less than bulk transport.

Speed

Transshipment operations are minimal and rapid.Port turnaround times reduced from 3 weeks to about 24

hours.Containerships are faster than regular freighter ships.

Warehousing

Its own warehouse; Simpler and less expensivepackaging.Stacking capacity on ships, trains (double stacking) andon the ground.

Security

Contents of the container is unknown to shippers.Can only be opened at the origin, at customs and at thedestination.Reduced spoilage and losses (theft).

Factor Challenge

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Site constraintsLarge consumption of terminal space; move to urbanperiphery.Draft issues with larger containerships.

Infrastructure

costs

Container handling infrastructures (giant cranes,warehousing facilities, inland road, rail access), areimportant investments.

StackingComplexity of arrangement of containers, both on theground and on modes (containerships and double-stacktrains). Loaded to avoid any restacking.

Managementlogistics

Requires management and tracking of every container.Recording, (re)positioning and ordering of containers.

Emptymovements

Many containers are moved empty (20% of all flows).Either full or empty, a container takes the same amountof space.

Divergence between production and consumption;repositioning.

Illicit tradeCommon instrument used in the illicit trade of drug andweapons, as well as for illegal immigration.Worries about the usage of containers for terrorism

People , firms, and other organisations have expanded their access toresources, goods, services, and markets across wider geographical areas,they have also become more deeply affected by conditions outside theirhome countries. Globalization refers to the ongoing social, economic, andpolitical process that deepens the relationships and broadens theorganizations, and their governments. International business involves allcommercial transactions- private and governmental between parties oftwo or more countries. Global events and competition affect almost allfirms large and small. However, the international environment is morecomplex and diverse than a firms domestic environment.

CUSTOMER SERVICE & STEPS FOR IMPROVEMENT(On-time deliveries and cultural variables)

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On-Time Deliveries: - It is important to measure delivery efficiency. Thisway, one can ensure its companys delivery system is efficient in carryingout on-time deliveries of products and services.

1. No matter what product or service business offers, one of the

primary goals is undoubtedly customer satisfaction. Let us say, forinstance, that your products and services have become one of themost coveted in the industry. Your company has become one of thelargest names as well. But all of these would not matter if yourcompany fails to deliver the products and services to the clients ontime. There is no room for customer satisfaction in that at all. Thus,it is of equal important to measure delivery efficiency with keyperformance indicators. This way, one can make sure that yourdelivery system is indeed efficient so that you can provide qualityservice to your customers who surely deserve the best from you.

2. Supply chain and logistics are usually managed by diverse groupsfor a single business unit. Quite often third party logistic is used forincorporating the various logistic services under one roof. Fiercecompetition and rising customer expectations have forcedbusinesses to go for third party logistics. These collaborationsusually score over individual vendors, as amalgamation of servicesbeneath one head assures greater flexibility, operationaleffectiveness along with improved customer satisfaction levels andsuperior supply chain management, besides the most importantfactor of reduced costs.

3. The foremost task in embracing the third party logistic program is to

build a relationship on quality information and clearly definedrequirements, thereby avoiding any ambiguity and doubt.Outsourced logistics services must be critically controlled andsupervised and moreover, the reporting methodology must beclearly outlined. The success of the outsourced venture isdependent on the administering, clear negotiation and facilitationfactors.

4. Mutual benefit and trust are the principles for nurturing arelationship between the two parties; however from the serviceprovider must strive to get insights of the business involved, andknowledge, and add value in the process. Establishing relationships

at different levels will assist in fostering relationships favorable toboth in the long run.

5. Thus there are different tasks that logistics company might face, themost important one is improving performance, e.g. doing the samedelivery faster and more efficiently just in time (JIT).

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Cultural VariablesSimply describing differences in the behavior of firms by country of originsuggests that each individual country maintains a unique set ofcharacteristics that will affect decisions made within the firm. While thismay be true in some situations, many countries and their workers alsoshare common factors such as language, religion, customs, borders,beliefs, rules, and ethnic heritage. Therefore, calculating the number ofmiles between countries, or manufacturing plants, to infer the magnitudeof their differences would be a critical error in logic that fails to

systematically consider that perceptions and actions of managers in eachcountry differ .For senior-level managers responsible for globalmanufacturing operations, the important question to ask is: why manyresident managers based in different countries pursue significantlydifferent approaches when faced with the same set of decisional factors?Neo-classical economists prefer that all managers are motivated bymaximizing profits, international business researchers have suggested avariety of possibilities beyond the classic profit-maximization that includesinterest in the protection of national culture, exploitation of uniqueproducts or resources, unique approaches to internationalization, ordevelopment of national infrastructures.

The four cultural dimensions are: -1. Individualism-collectivism- Individualism describes the

relationship between the individual and the collective. Thisrelationship is not only a matter of ways of living together, such asin nuclear or extended families, but it is closely linked with societalnorms. Thus, individualism will affect not only the functioning offamilies, but also education, religion and politics.

2. Masculinity-femininity- Different societies cope in different wayswith differences in gender roles. A higher level of masculinity is thedominant role pattern in the majority of societies. Althoughbiological differences between men and women are the same for allsocieties, the actual division of labor between women and men

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varies widely. This gender pattern is transferred to each societythrough families, schools, peer groups, and the media.

3. Power distance- The power distance dimension reflects humaninequality in the areas of prestige, influence, wealth, and status ineach culture. The extent to which people accept unequal power is

culture-based.4. Uncertainty avoidance- Coping with the inevitable uncertainties

in life is partly a non-rational process that different individuals,organizations and societies resolve in different ways, including theapplication of law, religion, rituals, rules, and uses of technology. Allthese cultural inventions can make life seem more predictable orless uncertain.

MAIN STAKEHOLDERS FOR BBC BOX

Toledo ChicagoL.A

Tremont

Pennsylvania Cleveland

PittsburghGallup

Amarillo

New Mexico

The Boxs journey began in September , transporting Scotch Whickybottling plant in Paisley. Here a consignment of Chivas Regal has beenbotled for the Chinese market. Even with the slowdown in many leadingeconomies , demand for Scotch is holding.

SINGAPORE ; From the Suez Canal to South East Asia ,the Box a BBC-branded container that travels the globe to illustrate how globalisation isaffecting us all has made its way across the Arbian ocean is good time. Ithas landed here on the island nation of Singapore abroad the MVCopenhagen Express. This is a routine stop over hundreds of shippingcrates are unloaded into replace them. The Box lies deep in the shipshull ,buried somewhere among 1500 of its metallic comrads. The globaleconomic slowdown ,however ,has cut into shipment volumes across theindustry. CHINA Shanghai : During the next leg it carry productsloaded by a major US retail chain ,including a variety of health andpersonal care products ,beauty supplies and gardening supplies for

American consumers. At a large warehouse in Shanghai the BBC Box isbeing loaded with the cargo from the factory in Ningbo. It travel from

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China to Los Angeles on the west coast of the United States ,and fromthere by rail to Pensylvania .There the goods will be distributed to a chainof homeware stores across the United States.

South America (Brazil ) ; The BBC Box had reached the busiest

container port in South America , carrying an eclectic mix of items fromink for pens to spearmint flavouring to additives to polyester fibre. Brazil,the country who is worlds biggest exporter of everything from beef andchicken to orang juice and cofee is struggling in that time because ofeconomic crisis.

JAPAN (Port of Yokohama) : It is the end of a long journey of BBC Boxfrom Brazil across the Atlantic ,round the Cape of Good Hope an then onacross the Indian Ocean. Now ,inside is a cargo of foodstuffs ,ingredientsthat had been ordered by one of Japans biggest food manufacturingcompanies. Japan is mountainous place where not enough food is grown

to supply its large populations needs ,so imports like this are vital.

Track the route of the Box

1. The Box is an ambitious and unique year-long project for BBC Newsto tell the story of international trade and globalisation by tracking astandard shipping container around the world.

2. BBC container and bolted on a GPS transmitter so all year round asit criss-crosses the globe. The Box will hopefully reach the US, Asia,the Middle East, Europe and Africa and when it does BBCcorrespondents will be there to report on who's producing goods andwho's consuming them.

Major challenge

It is a technically challenging project and things may go wrong along theway - powering the GPS transmitter and linking that to this website hasbeen challenging. They call the project The Box from a fantastic book ofthe same name by Marc Levinson, which tells the story of how the humbleshipping container changed the face of world trade.

IMPORTANCE OF BOX (Differentiation, costleadership and / or customer response)

A company can achieve a competitive edge by various means, e.g.,by manufacturing products more cheaply than competitors, byoffering unique products or services, or by concentrating on smallmarket niches. Logistics supports each of these business strategiesin its own way. Such logistics concepts as mass customization orpostponement even allows cost Leadership and differentiationstrategies to be achieved simultaneously.

Business strategies determine the products with which and themarkets in which a company intends to achieve competitiveadvantages. Three promising types of generic competitive strategies

that enable companies to outperform their sectoral competitors:

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1. Comprehensive cost leadership- The strategy of comprehensivecost leadership in a sector requires the rigorous exploitation of theexperience curve effect to reduce unit costs. This requires an

aggressive build-up of capacities and strict cost control. The job oflogistics systems is to handle large volumes of goods ingeographically spread-out markets at the lowest possible cost. Acompany that pursues a strategy of cost leadership must rely onlogistics process capacities that allow for simple and far-sightedlogistics systems. This includes technological capacities forimplementing flows of material, the capacity to simplify proceduresand the capacity to anticipate necessary processes .In this strategy,profits are earned by selling large quantities of items at low prices.The lower unit costs mean that these margins can still be achievedwhen competitors are no longer profitable due to lower experiencecurve effects.

2. Sector-wide differentiation- The differentiation strategy strivesto lend a special status to a product from the customersperspective, enabling it to be perceived as unique throughout thesector. The differentiation can result from a special brand image, theproducts quality or special product-related services. This alsoincludes a high-level delivery service .Customer-oriented capacitiessuch as rigorous market segmentation, accessibility and a high levelof flexibility have a positive impact on a companys success.Differentiation shields the company from its competitors and creates

a customer relationship with the product. Because customers areprepared to pay higher prices for the image, the quality and/or theadditional services, profits generated by this strategy result fromhigher margins, not high sales volumes.

Concentration on focal areas such as market niches - Thestrategy of concentrating on focal areas such as market nichesrequires the companys focus to be placed on a particular customergroup, a regional market or a small range of products within asector. The competitive edge results from the adjustment to thespecific requirements of a market segment as well as from cost

advantages in this market segment. The differentiation takes placelargely on the individual customer level as the company constantly

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offers new services and responds as flexibly as possible to specificcustomer needs.

In logistics, it is also possible to pursue hybrid strategies - that is,strategies that aim for cost leadership and differentiation at the

same time. One case in point is the mass-customization concept.Here, large unit numbers of standardized product components ormodules are initially produced. End production, which churns out amultitude of product versions, follows only at the end of the value-creation process.

Here is an example: Large numbers of white T-shirts are pre-produced in China and imported to Europe. But the T-shirts are notdyed until they reach their final destination. This postponementconcept, in which product customization is put off, generateseconomies of scale and synergy effects in production ofstandardized modules. This can result in both a high level of addedvalue for the customer thanks to variety or differentiation and incost leadership.

3. Customer Relationship Management (CRM) has beengrowing steadily for the last few years and is now seen as the wayforward for any business wishing to thrive in the "e-future'.CRMconcentrates on the retention of customers by collecting all datafrom every interaction, every customer makes with a company from"all' access points. The company can then use this data for specificbusiness purposes, Marketing, Service, Support or Sales whilst

concentrating on a customer centric approach rather than aproduct centric.

Customer Relationship Management is developing into a majorelement of corporate strategy for many organisations.CRM, alsoknown by other terms such as relationship marketing and customermanagement, is concerned with the creation, development andenhancement of individualized customer relationships with carefullytargeted customers and customer group resulting in maximizingtheir total customer life time value.

PORT PRODUCTIVITY (YARD CAPACITY) & LOGISTICS

FACTORS AFFECTING PRODUCTIVITY

Capacity of the subsystems within the terminal

Equipment

Processes

Flow of information / Data integrity

Labour / Unions

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1. The globalization of production and consumption and the structuralchanges, which have occurred in inter-port relations, port-hinterlandrelations, and logistics, have made the role of ports significant asvery important nodes in the global transport system. Under suchcircumstances, port productivity has a significant role in theconsideration of management of ports.

2. The rapid rise in the competitive nature of the marine transportationsector has given cause for the demand in the increased requirementfor port productivity. A number of quantitative measures weredeveloped for the assessment of port productivity. However thereare problems that have arisen in these quantitative measurementsof port productivity. Physical and institutional factors or both thesefactors working in tandem limit the productivity of every port.Productivity comparisons in relation to ports may cause misplacedattempts to improve the productivity of particular operationalelements in a bit by bit manner. In contrast the better way to do itwould be to develop a strategy for managing productivity that wouldinvolve the linking of productivity and cost data in such a manner as

to shifting the existing productivity constraints from one are ofoperations.

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3. For the last few decades the focus of the port society has been ontechnological advances that make productivity less dependent onhuman effort, knowledge and skills. At some point attention mustalso turn to productivity improvements through people. Ports shouldbe seen as "Socio-technical" systems because, in practice,

operations in port terminals are carried out by a partnershipbetween human beings and technology. This partnership, however,can only be successful if the appropriate emphasis is given toHuman Resource Management (HRM), an often over-looked areawhich can have a significant impact on port productivity.

OPERATIONAL PERFORMANCE INDICATORS

Primary measures of vessel performance are the ship turn-round time andthe tonnage handled per ship day in port. The ship turn-round time is theduration of the vessel's stay in port and is calculated from the time ofarrival to the time of departure. Traditionally expressed in days, it is nowcommon to express turn-round time in hours. The average turn-roundtime per ship is determined by dividing the total hours by the totalnumber of ships calling at the port.

The length of stay of a vessel is influenced bya. The volume of cargob. The facilities made availablec. The composition of the cargo

Thus it becomes necessary for the port to break the basic ship turn-roundtime down for tankers, bulk carriers, container vessels and general cargovessels, and even subdividing these into domestic trade, regional tradeand ocean going vessels.

While the tonnage handled per ship day (or hour) is a measure of thevolume of cargo handled per unit of time of the vessel in port, productivityin ports is generally measured in terms of the tonnage of cargo handledper unit of work station per hour. In the case of general cargo, the workstation is the gang, with containers, it is the crane (or hook). Thusproductivity is measured in terms of :

a) tons per gang hour for general cargob) TEUs/per crane (or hook) hour

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With tons per gang hour, the size of the gang is a material factor, asgenerally and up to a point, the larger the gang size the greater its output.Hence a more useful indicator of productivity for general cargo is the

tonnage handled per man hour. In establishing the size of the gang, itshould be noted that some ports have separate stevedoring and wharfgangs while some have an integrated gang that works on board vessels(stevedoring). It should also be pointed out that very often the size andnature of the consignment has an influence on gang performance.Generally, the larger and more homogeneous the consignment the greateris the productivity.

The assessment of a port's performance from the point of view of :(i) The exporter/importer is quite basic in that there is only one indicatorof interest(ii) The dwell time of cargo in port measured in terms of the number ofdays that a ton of cargo remains in port.A high dwell time is generally an indication that all is not well with theport. It does not, however, identify areas where improvements may besought since, unlike ship time in port, it does not have a breakdownaccording to the various procedures that have to be gone through beforecargo can be shipped or delivered (e.g., customs clearance, waiting forinstructions, waiting for ship, waiting for transport, etc.).

1. ASSET PERFORMANCEPerformance in asset utilization is measured in relation to thetonnage of ships calling at a port and/or the tonnage of cargo

handled. Since the main assets of a port are its berths, it isimportant to measure the performance of the berths in terms of the

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throughput handled per berth. Most ports obtain an average berththroughput by dividing the total tonnage handled at berths with thenumber of berths available at the port. A preferred method is todetermine individually for each berth the total tonnage handled atthe berth and then arrive at an average for all the berths.

Throughput at berth is also measured in terms of tonnage handledper linear meter (or foot) of wharf. The degree of utilization of aberth is measured by the berth utilization rate. This is thepercentage of actual working time at the berth in relation to thetime that the berth is occupied. Like ship turn-round time, berththroughput is influenced largely by the class of commodity handledat the berth so that it becomes necessary to establish indicatorsthat measure berth throughputs in the context of the class of cargohandled (general cargo, container, bulk, etc.).

2. FINANCIAL PERFORMANCEIn addition to the financial performance that can be determinedfrom the usual financial statements (income statement, profitandloss account, balance sheet), a port may wish to relate its incomegeneration operating surpluses and expenditures to total GRT/NRTof shipping and the total tonnage of cargo handled at the port.Examples are income/expenditure per GRT (or NRT) of shipping andoperating surplus per ton of cargo handled. The merit of relatingincome, expenditure and operating surplus to the tonnage ofshipping or the tonnage of cargo handled is that a commondenominator now exists for purpose of comparison.

SYNOPSYS

TEU- Twenty-foot equivalent unit

FEU- Forty-foot equivalent unit

ISO- International Standard Organization

ROI- Return of investment

ERP- Enterprise resource planning

GPS- Global Positioning System

GIS- Geographic Information Systems

RFID- Radio Frequency Identification

RFM- Radio Frequency Module

WLAN- Wireless Local Area Network

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JIT- just in time

CRM- Customer Relationship Management

GRT- Gross registered tonnage

NRT- Net registered tonnage

SUMMERY

OBJECTIVE & STRATEGY OF CONTAINER TRACKING

Forecast demand growth by region and type.

The impact of new industry structures

An analysis of productivity and regional trends

A definition of changes in the terminal market place An analysis of port-wide service and cost levels - the true position

The effects of emerging new rules and regulations Tendering approaches to container terminals

THE FORCES BEHIND GLOBALIZATION

INCREASE IN THE EXPANSION OF TECHNOLOGY

LIBERALIZATION OF CROSS-BORDER TRADE AND RESOURCEMOVEMENTS

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DEVELOPMENT OF SERVICES THAT SUPPORT INTERNATIONALBUSINESS

GROWING CONSUMER PRESSURES

INCREASED GLOBAL COMPETITION

CHANGING POLITICAL SITUATIONS

EXPANDED CROSS-NATIONAL COOPERATION

Electronic Cargo Tracking System

Geographic Information Systems (GIS) Global Positioning System (GPS) Radio Frequency Identification (RFID)

Wireless Local Area Network (WLAN)

CUSTOMER SERVICE & STEPS FOR IMPROVEMENT

Individualism-collectivism

Masculinity-femininity

Power distance

Uncertainty avoidance

MAIN STAKEHOLDERS FOR BBC BOX

SINGAPORE

CHINA

South America

JAPAN

IMPORTANCE OF BOX

Comprehensive cost leadership

Sector-wide differentiation

Customer Relationship Management

FACTORS AFFECTING PRODUCTIVITY

Capacity of the subsystems within the terminal Equipment

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Processes

Flow of information / Data integrity

Labour / Unions

OPERATIONAL PERFORMANCE INDICATORS

Volume of cargo

Facilities made available

The composition of the cargo

REFERENCES

Wikipedia

CONTAINERIZATION AND MULTIMODAL TRANSPORT IN INDIA By Dr. KVHariharan

Handbook of shipping management

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Ahn, S.(2002) Korea's Integrated Logistics Information System andCommercial Vehicle Operation, 5th Asia-Pacific ITS Seoul Forum.

Bock, H., U. Hugentobler, T. Springer and G. Beutler (2002) Efficient preciseorbit determination of LEO satellites using GPS, Advances in Space

Research, 30 (2), 295-300

Chen, C.(2002) A Real Time Monitoring and Dispatching Fleet Management

System for Formosa Plastics Transport Corporation in Taiwan, 5th Asia-

Pacific ITS Seoul Forum.

UNCTAD. 1983. "Manual on a Uniform System of Port Statistics and Performance Indicators."

Geneva.

UNCTAD. 1987. "Measuring and Evaluating Port Performance and Productivity." Geneva.

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