UNITIZATION 1 UNITISATION Unit load quantity of material

UNITIZATION 1

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

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

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

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

Types of Unitisation n ISO Container - It revolutionised port operations & ocean-going shipping since 1960 - Basic concept is strong box: 8 ft & 20 ft or 40 ft long - Height not been standardized, majority are 8 ft or 8. 5 ft high - Difference in height cause a major problem in container operation - Complete movement system: Cellular ship, ports & cranes, infrastructure to ensure delivery to final destination 6

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

High Cube Container General Purpose (GP) Container 8

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

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

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Types of Unitisation n Demountable - This system is often used for products which are bulky, difficult to unload quickly & need to be protected from rain e. g. mattresses - Have a demountable body on a rigid lorry - The body fitted with landing legs for loading or discharge in a yard - It is detachable from the vehicle which carries it by a simple jack arrangement, the lorry chassis to be driven 12 away to pick up another load

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Types of Unitisation n RO/RO Trailer Semi trailers used as part of an articulated lorry combination which “rolls on” to a ship or a train and “rolls off” at the other end of sea or rail leg, continue its movement by road - Piggyback rail routes, movements through long rail tunnels, RO/RO trailers are alternative form of unit load to container - “Accompanied RO/RO”: tractor unit & driver go with semi trailer (short distance) - “Unaccompanied RO/RO” movements are used for long hauls by sea or rail e. g. New York to Chicago - 14

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Types of Unitisation n Roll Cage - Most extensively used by the retail distribution industry - It comes in all shapes and sizes and is generally collapsible - Usually compatible for movement by machine - It takes up minimal space when nested awaiting collection - Very expensive & high maintenance - It requires good surface for loading & unloading - Susceptible to theft and even sold as scrap metal 16

Example for Roll Cage 17

Types of Unitisation n Rigid Cage (Rigid Steel Cage) - Used by manufacturing companies which require a robust system of unitisation for moving stock and materials - Usually same dimension across the base as pallet - Can be stacked in vehicles, racking, on the floor (warehouse) - Durable, machine compatible, easy to restrain 18

Rigid Cage 19

Types of Unitisation n Skips - A simple form of containerisation - Slow and spasmodic loading - Full load can easily lifted by tipper lorry for depositing at a suitable site - Normally for commercial waste, contractors’ spoil, domestic refuse from blocks of flats 20

Example of Skips 21

FACTORS INFLUENCING THE CHOICE OF ROUTE OR MODE OF TRANSPORT n n n n The Nature of Goods The Time Factor Route Availability & Frequency Contractual & Other Limitations Strikes, Wars and Climate Factors Limitations of the Modes of Transport Limitations of the Terminals, including the efficiency of agents 22

The Nature of Goods n n n Can affects choice of transport Some goods are: too broad; too high; too long; too heavy to send by road Weight is very important I travel by air Size of railway tunnel decides the carriage by container i. e. 8 ft(w) X 8. 5 ft (h) Goods nature: heavy lifts, value, pilferability, fragility, perishability, livestock, hazardous cargo 23

The Nature of Goods-Heavy Lifts - Some problems of indivisible heavy loads: weight; dimension (length, width, height) - These problems require specialist heavy lift haulier to handle - Special heavy lift is required to handle indivisible heavy load e. g double steering vehicle - Major ports have either fixed or floating heavy lift facilities - Vessels carrying heavy lift has own facilities (gear) to handle such cargoes e. g. ‘jumbo’ derricks 24

The Nature of Goods-Heavy Lifts - - Pick up and put ashore is another problem as quays have a maximum load capacity Nowadays, RO/RO method is used to handle heavy lifts Pre-booked at true weight is absolutely important to justify cranes and derricks capacity (SWL-Safe Working Load) Most liner tariffs & port charges take into account a heavy lift surcharge Heavy lift on railway locomotive is securely lashed Dimensions not a major problem for carriage by sea or rail transport For road transport, demensions are fairly 25 crucial

The Nature of Goods-Value - - - The more valuable, the higher freight charges The speedier the transit, the greater the saving i. e. less interest on capital & lower insurance premium Security is important for high value cargoes Exporter must select a transport system with the smallest number of intermediate handling In certain cases, specialist security service may be used i. e. police ascort 26

The Nature of Goods-Pilferability - - Goods need not be very valuable to be pilfered If goods are desirable and readily accessible, it is sufficiently tempting e. g. packed chocolate Once opened, it may suffer further pilferage due to constant attraction Containerization has certainly helped reduce such losses 27

The Nature of Goods-Fragility - - Fragile consignments require special packing & handling e. g. glass Some electronic equipments which is highly sensitive to engine vibrations, turbine vessel is recommended rather than a motor ship 28

The Nature of Goods-Perishability - - - Refrigerated & cool chamber facilities are required to handle perishable goods Item such as newspaper & fashion wear are best sent by air freight Road haulage operators carrying perishable foodstuff under refrigeration to and/or through most European states must comply with the European ATP agreement ATP regulations specify the minimum ‘lay down’ temperature (must maintain) and transit time must not exceed 48 hrs 29

The Nature of Goods-Perishability - All frozen meat product require official Veterinary Certificates - All imported food are subject to inspection by Health & Food Inspectors employed by the local authority 30

The Nature of Goods-Livestock - - - Most large airports have their own livestock reception areas including Veterinary Services In ship, livestock is usually carried as deck cargo Veterinary certificates to show animal has a clean bill of health have to be provided Vaccination Certificates may be necessary Exporter must ensure compliance of animal importations regulations 31

The Nature of Goods-Hazardous Cargo - Board of Trade regulates carriage of dangerous goods (DG) by sea in “Blue Book” - International Maritime Organization (IMO) come out more recent four-volume International Maritime Dangerous Goods Code (IMDG), the regulations for carriage of DG by road - ADR is international agreement on the carriage of DG by road (1968); on road traffic in road tankers & tank containers (revised 1992); classification, packaging, labelling of dangerous substances in packages 32 regulations (1984)

The Nature of Goods-Hazardous Cargo n Information required for full compliance: - Name of Vessel - Ports of loading & discharge - Number, kind & size of individual packages and total quantity (gross & net weight in kg) - Proper shipping name of substance (as defined in IMDG code) - Classification of substance (IMO) e. g. poison gas - UN number of substance 33

The Nature of Goods-Hazardous Cargo n Information required for full compliance (c’ntd): - Properties of substance - Marine pollutant (if applicable) - Packaging group - Flashpoint (if any) 34

The Nature of Goods-Hazardous Cargo - Information submitted on DG Shipping Note incorporates DG packing certificate signed by packer & exporter - Certificate states that - Container fit to received goods - No incompatible substances packed into the container - All packages were inspected & found to be sound - Container & packages are properly marked & labeled - Packages have been properly secured in the container - DG declaration has been received and completed for each dangerous consignment packed in the container 35

The Nature of Goods. Hazardous Cargo - - If DG only part of the loads (in container), it normally stowed close to doors area To mark & label all packages (tested) with IMDG code showing the contents, the principal and secondary hazards Container needs to be marked on each side and both ends including the class number & the UN number Notify carrier at pre-booking for dirty substances 36

The Nature of Goods. Hazardous Cargo n Hazardous Cargo Description - Corrosives - Poisons - Substances liable to spontaneous combustion - Substances liable to react on exposure to air or water - Substances with a low flashpoint - Compressed gases - Radioactive materials - Magnetic materials 37

The Nature of Goods. Hazardous Cargo (HC) n The department of Trade & Industries ‘Blue Book’ & regulations cover carriage of HC by sea, detailing: - Inner & outer packaging - Amount per package - Marking - Stowage - Amount per stow - Type of vessel which can carry such cargoes 38

The Nature of Goods. Hazardous Cargo (HC) n HC cargo must be pre-booked & to issue three-part stowage by Cargo Superintendent loading the vessel - 1 st copy – send to the docks & advises when the cargo is to be delivered - 2 nd copy – returned to the shipper and then forwarded to the docks with the cargo - 3 rd copy – retained by the cargo superintendent 39

The Nature of Goods. Hazardous Cargo (HC) - - - DG shipment requires a seven page DGN (Dangerous Goods Note) Shipper responsible to give all the relevant details: correct technical name; hazard & UN number Shipper also responsible to ensure all DGs are properly packed & labeled (marked with technical name & UN number) so that it receives safe handling & proper stowage during transit ADR is the European agreement concerning the international carriage of DGs by road ADR lays down standard for packing & labeling of DG and also special conditions covering the vehicle e. g. tankers – to be certified that it has been built & maintained 40 to ADR standards

The Time Factor n n Affects the choice of a mode of transport Speedier transit means less warehousing at destination e. g. 2 weeks replacement of stock vs 4 reorder points Re-order points is a minimum stock level of which new orders must be placed If speed or transit increased, minimum stock level can be reduced, saving warehouse space & inventory costs such as depreciation & finance 41

The Time Factor n n Possible gain arising from earlier use of goods e. g. machinery, deliver early (speedier transport), install & use early Emergency shipment to facilitate the repair of a ship awaiting of spare part is an obvious example of time factor (paramount important) New generation of container vessel can actually offer faster delivery than their latest competitor, the Trans-Siberian railway Combination of both sea & air services e. . g. Flying Tiger Service – Far East to San Francisco (by sea), San Francisco to Eastern USA (by air) 42

Route Availability & Frequency Another factor which is changing as new services begin operations to more & more destinations n Routes reflect traditional patterns of transport n New concept & transport system can give impact on routes n E. g. Development of container ship – fast turn around, short sea routes & trade-diverting activities to avoid costly patterns by using unimportant ports n 43

Route Availability & Frequency n n Growing number of alternative routes/modes which are now available to most destinations Transport revolution in the past 3 decades emphasis on increasing capacities of various modes, unitisation & speedier turnaround at termini Growing application of computers (IT) to carrier & forwarding operators reinforce competition Increasing in ro/ro operations at smaller ports and short sea crossing contributed to route availability 44

Route Availability & Frequency n n n Transhipment, unitisation, modern aircraft, air/sea combination services contribute to speedier turn-around at termini and resulted more voyages per year Comprehensive & up-to-date freight guide is appreciated ABC Freight Guide gives a comprehensive coverage of road, rail, sea and air services in all ports of the United Kingdom 45

Contractual & Other Limitations n n n Agent must consider principal’s wishes as regards to route Non-conference vessel may break contractual obligations with a freight conference Some country have flag discrimination i. e. cargo had not been carried in a ship of the nationality of the importer not allowed to berth Compliance of the letter of credit (LOC) requirements Bank refused to accept an airway bill instead of bill of lading due to non-amendment of LOC (sea to air for urgent shipment) 46

Strikes, Wars and Climate Factors Major dock strikes could interrupt transit of goods n Civil wars, political embargoes could influence the choice of route or mode of transport n Ice, monsoons, fogs or hurricanes may delay or closure at certain ports n 47

Limitation of the Modes of Transport Rail has a set of track or permanent way n Air freight charges are high n Sea transport can cause extensive delays due to adverse weather, fog or icing n Road transport (for goods & passenger) compete for space and priority n 48

Limitation of the Terminal, including the efficiency of agents n n n Climate & tidal factors may influence both in the port approaches & along the berth Relationship of the port to natural trade routes both by land & sea i. e. nature of hinterland & the respective transport links such as railways, roads, canals, pipelines or rivers Containerization & development of multimodal operations, conference ports retain traffic. 49

Limitation of the Terminal, including the efficiency of agents n n Availability of freeport facilities are ideal for both entrepot & transhipment traffic Cheap bunkering is another factor which attract vessels to a port Cargo handling & storage facilities vary enormously even between major ports For example, America ports have 1 st class specialist cranage facilities for ore discharge or container handling but they do not provide appropriate crane for general cargo handling 50

Limitation of the Terminal, including the efficiency of agents n n n Storage facilities such as open storage, unpacked car yard are important Specialist storage such as tank farms, grain silos, refrigerated stores & bonded warehouse are also important features Availability of groupage facilities - First appeared on the transport when IATA air consolidators (i. e. freight forwarder) dispatched consignment with a common destination - Advantage: lower freight rate, save the airline paperwork 51

The Nature of Goods, the Time Factor, Route Availability & Frequency, Contract, Facilities, Bunkering, Strikes, Wars, the efficiency of agents and seamless connectivity among others, influence the choice of Routes and Modes of Transport. Discuss. 52

THANK YOU 53