...GENERAL ISTRUCTIONS The method guide is constructed according to “Fundamentals of Transportation Processes and Systems Theory” course syllabus of the field of study 6.070101 “Transport Technologies”. The course syllabus of “Fundamentals of Transportation Processes and Systems Theory” course is intended for studying the fundamentals of transportation process and operations in cargo transportation. The main purpose of studying this course is comprehension of basic transportation processes’ concepts related to transportation of cargo by two transport modes (or with cross-docking) with warehousing of the specified cargo type. The key objective of the given course is for the students to gain skills in management of transportation processes at micro level. The course will also improve the research skills and develop independence and responsibility of the students. According to the study plan of the major, the students complete a term paper entitled “Calculation of efficiency indicators of transportation processes in industrial transport systems”. The term paper deepens the knowledge on the course, allows practical application of the acquired skills of calculating the basic parameters of transportation processes and systems, and is an important stage in mastering the material of the course. Writing, documentation and presentation of the term paper is completed individually by the student in accord with the given method guide. The time necessary for completing the term paper comprises...
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...Flat Cargo Berhad: An Auditor’s Conundrum Flat Cargo Berhad (FCB) a well-known and one of the largest air freight companies in Malaysia that operate as air cargo carrier. FCB also registered as an investment holding company with several subsidiaries that operate with the same operating principal of the FCB. Their primary operating principal was to provide air freight transportation which includes air charter and leasing. Started their operation in 1997 and became the only dedicated Intra-Asian overnight express cargo based in Malaysia. The company also had access to an international cargo complex at the Sultan Abdul Aziz Shah Airport in Subang. FCB also have secured agreement with well-established companies. FCB had appointed Kenchana & Associates as their external auditor. In 2006 audit team from Kenchana & Associates found several suspicious finding in finalizing their report. It is also said that FCB can remained as the nation’s leading cargo carrier if not because of the scandal. Mr Chuah Mun Soong, head of the audit team from Kenchana & Associate, is the decision maker or protagonist in this case. Been informed by his subordinate, he show some dissatisfaction towards the FCB due to the scandal. He needs to present the financial report to the audit committee of FCB in two weeks. However, the inconsistencies in the account make him feel restless. Dilemma face by Mr Chuah is that the FCB also might be high possibility involved in fraud. Mr Chuah state that his...
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...sometime things fly because it is better to keep the planes moving instead of just sitting on the ground. History of Air Cargo Even before there were airplanes in the sky, mail was being moved by balloons, dirigibles and ravens. The first cargo moved by aircraft occurred on 7 November 1910 when a few bolts of silk were transported by air from Dayton to Columbus, Ohio. Phillip Orin Parmelee used a Wright Brothers Model B to travel 65 miles carry 200 pounds of silk for the opening of a store. It was the first cargo only flight that was commissioned by a merchant solely for the transport of goods. Tis was also one of the first times multimodal transport was used to include aircraft since it was first moved by car. In 1911, the united states postal office experimented with the moving of mail by way of air and Germany followed in 1912. It wasn’t until 1925 before air mail was a regular service. World war 2 helped increase the freight movement by using large scale cargo was moved by C-46 and C-47’s to help support the war effort in India and China also known as “Flying The Hump”. Over 650,000 tons of cargo was transported between India and southern China between the years 1942 and 1945. Later from 1948 to 1949 the largest airlift in history occurred to support the blockaded city of Berlin, Germany. Wide body jets that were introduced in the 1970’s helped move air cargo...
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...FLAT CARGO BERHAD: AN AUDITOR’S CONUNDRUM The case portrayed Flat Cargo Berhad (FCB), a public listed company which known as one of the largest air freight companies in Malaysia. FCB was registered as an investment holding company with several subsidiaries where the subsidiaries primarily provides air freight services and aircraft ground handling services. As the only Intra-Asian overnight express cargo operator based in Malaysia, FCB provides air freight transportation involving aircraft charter and leasing. Due to landing rights in Asia Pacific region, FCB has the opportunity to provide express air services to international integrators, freight forwarders and major airlines within the Asian region. Thus, secure its major landing rights throughout countries in Asia. Moreover, FCB also has well-established customers and offers air freight forwarding services to its major shareholder, Cargo Malaysia Berhad and Bangor Berhad. Meanwhile, FCB was engaged with expansion plan to handle large shipments by expending freighter fleet size in order to cater customers demand. In 2005, FCB’s turnover is expected to be higher than year 2004 due to its expansion plan. However, FCB has higher gearing ratio and weak debt servicing ability. Besides, FCB has governance structure which adhered to the Malaysian Code of Corporate Governance in configuring its Board of Directors. Based on the case, Mr. Chuah Mun Soong is identified as a protagonist where he is one of FCB’s audit team from Kencana...
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...PRAKASH NAIR - MANAGER NETWORK CARGO SALES DEVELOPMENT. EMAIL ADDRESS : SKYCARGODXB@EMIRATES.COM Emirates’ strong fl eet of 150 aircraft is one of the youngest in the skies. Emirates SkyCargo’s fleet includes seven freighters (three Boeing 747-400Fs, two 747-400ERFs and two 777Fs) and now serves over a 100 destinations in 63 countries on six continents. In the 200 9-10 fi nancial year, Emirates SkyCargo carried 1.6 million tonnes of cargo, an improvement of 12.2 percent over the year’s previous 1.4 million tonnes. Cargo revenue, at AE D 6.3 billion (U S$ 1.7 billion), including mail and courier , contributed 17.2 percent of the airline’s total transport revenue. In June 2009 Emirates SkyCargo took delivery of its second Boeing 777F. Scheduled freighters now operate to 20 destinations. Over the next few years, the airline will welcome 203 aircraft to its fl eet, including two B oeing 777Fs and five Boeing 747-8Fs (with options for a further four 777Fs and fi ve 747-8Fs). T he total value of aircraft now on its order books is US $67 billion. In 2010, the carrier has already won a clutc h of awards: ‘Cargo Airline of the Y ear’, ‘Best Cargo Airline to the Middle East’ (22nd year running) and ‘Best All Cargo Airline’ (3rd year running) at the prestigious Cargo Airline of the Y ear Awards 2009 from Air Cargo News. It was bestowed the Gold Award at the Annual Air Cargo Excellence A wards at the Iat a World Cargo Symposium in V ancouver, Canada, as well as Cargo Airline of the Y ear presented...
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...Proposed title : Ensuring the safety of cargo carried Article 1 : NTSB Issues Safety Recommendations about lithium batteries as cargo on aircraft This article is about the safety recommendation issues by NTSB regarding on the lithium batteries as cargo on aircraft. The NTSB recommendation to separate the lithium batteries from flammable hazardous material in the cargo aircraft. This safety recommendation is made after the in-flight fire and crash of Asiana Airlines Flight 991 on July 28, 2011. The NTSB strongly believes the circumstances and findings in the Asiana Flight 991 accident show the need for new cargo segregation and loading density requirements. http://aviationtribune.com/safety/item/3465-ntsb-issues-safety-recommendations-about-lithium-batteries-as-cargo-on-aircraft Article 2 : The United States grapples with a relatively high accident rate in freight operation According to Commercial Aviation Safety Team, the accident rate in US airline all-cargo operations is two to five times higher than the accident rate in passenger and combined passenger/cargo (combi), operations. This articles detailed on the factors of the accident and the number of air cargo accident happen in US. The articles also show the graph of the fatal accident and the stage where the accident always happen and comparison between air cargo and passenger operations. http://www.flightsafety.org/asw/nov06/asw_nov06_p28-33.pdf?dl=1 Article 3 : How safe is the cargo on passenger flights? This articles...
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...Break Bulk Cargo Cargo that is too big or too heavy to be loaded onto a flat rack container can be loaded directly onto the vessel. These are known as Break Bulk Cargoes. On Deck Stowage Cargo such as ships that are too large to be loaded into the hold and are not damaged by water can be directly loaded on deck. On rare occasions, cargo can be stowed directly atop the hatch covers. Under Deck Stowage Usually empty flat rack containers are stacked in the second or third tier from the top side-by-side in the hold and cargo is loaded on top of these. One of NYK's many strong points is the long years of experience which has built up in the safe stowage of cargo such as in dispersing loads and securing. The size of holds depends on the vessel. Just as an example, when 40 foot flat rack containers are lined up in groups of four it is possible to make effective use of a 40' x 32' space. Heavy cargo that exceeds the weight restriction on gantry cranes is handled by floating cranes. Since direct loading and direct delivery are the rule in such cases, loading and unloading are coordinated with the vessel's cargo handling schedule. Therefore it is necessary to fully coordinate matters with all concerned beforehand. In shipping the term Break bulk derives from the phrase breaking bulk Break bulk products are mainly steel, lumber and wood. Before containers, goods were shipped in individual boxes, barrels, bales, bags, crates and many other methods of enclosing...
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...Brian Kim April 18, 2012 Airline Cargo Regional Analysis Southeast Asia is a region that has been growing in terms of economics and in turn that includes the amount of exports and imports moving via aircrafts. They have a major hand in the international trade market that has to provide for a large demand. This includes everyday commodities such as cell phones, computers, home appliances, etc. South Korea has been a bigger player in all the trade between Asia and North America. These products are sold all around the world and they need the demand to grow if they want their country to survive. The dependency is obvious due to the imports of natural resources as they have minimal amounts in their country. In the past decade South Korea has been able to see large growth in their cargo that move in and out of the country. Their biggest airline is Korean Air and they handle a large portion of the freight. Even with all the positive signs for their cargo fleet, they are facing obstacles like every other airline such as the rising cost of fuel. They need to compete with airlines such as Cathay Pacific, China, Japan and others which are all trying to find ways to make Air cargo profitable. The problem is that almost all the crude oil used in countries such as Japan and Korea are imported via ships. This automatically makes it even more expensive for the oil refineries than countries such as China and America, where oil can be produced. The 4 dollar average Americans pay per gallon...
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...Running Head: AIR CARGO SECURITY ISSUES Air Cargo Security Issues Following the 9/11 Act Abstract In August 2007, the Implementing the 9/11 Commission Recommendations Act of 2007 was signed into law requiring the Department of Homeland Security to establish more stringent procedures for the security screening of air cargo. The law required that by February 2009, 50 percent of all air cargo on passenger aircraft would be security screened, and by August 2010, all air cargo traveling on passenger aircraft must be 100 percent screened individually. The requirement presents numerous logistical, financial, and technological challenges to airlines and all entities involved in air cargo shipping. The Transportation Security Administration has lessened some of the burden by creating the Certified Cargo Screening Program, enabling the screening of cargo by certified shippers prior to aircraft delivery. On August 3, 2007, President Bush signed the Implementing Recommendations of the 9/11 Commission Act of 2007, commonly known as the 9/11 Act, into law. The Act required the Transportation Security Administration to establish a system for the 100 percent security screening of all cargo transported on passenger aircraft within three years. Additionally, the 9/11 Act required that 50 percent of air cargo would be screened on passenger aircraft by February, 2009. Air cargo handlers in all aspects of the logistical arena have responded well to the 50% mandate, but the 100% requirement...
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...1.0 Introduction Flat Cargo Berhad (FCB) is an air freight services and ground handling company. Its company’s operations cover Asian Pacific region including China, Japan, Thailand, Singapore and many more. Their main customers are United Parcel Services (UPS), City Link and Nationwide Express. The main shareholder for FCB is Bangor Sdn Bhd which is part of Miri Group represented by 26.5% of the company interest. Kencana & Associates is the auditor company that audit FCB’s account. The leader of the auditors is Mr Chuah Mun Soong. The auditing team found some irregularities in accounting record of FCB. There are two parties which Mr Chuah has to report, they are his superior, Mr Keong Chee Wah and FCB Audit Committee. However, Mr Chuah concerns that FCB might have a fraud due to the past experience such as Media Com and Blue Vital. 2.0 The Root Cause of the Problems As per our discussion about this case study, we managed to find out several root cause of the problems. 2.1 Rising of Oil Price The first root cause is the rising in oil price in the year 2005. In the year 2005, there was an international crisis occurred with the exceptional increase in oil prices. The hike started in mid-2004 at US$40 per barrel but eventually, the increase continued to stages of US$50, US$60, US$65, US$70 and US$80 per barrel. The price hike in fuel surcharges drastically affected the freight forwarding industry significantly because of its reliance on fuel for operations. This...
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...The Cargo Preference Act of 1954 - The law requires that at least 50 percent of the gross tonnage of all Government generated cargo, meaning cargoes procured, furnished, or financed by the United States Government, shall be transported on privately owned, U.S.-flag commercial vessels to the extent such vessels are available at fair and reasonable rates http://www.marad.dot.gov/ships_shipping_landing_page/cargo_preference/cargo_laws_and_regulations/Laws_Regs.htm AFF- This act helps to ensure jobs for Americans and provides tax revenues. “These laws have played a vital role in ensuring that America has a strong domestic shipbuilding base. Cargo preference laws help create good-paying jobs for American workers and provide tax revenues at the local, state, and federal level.” Maritime Trades Department, AFL-CIO (MTD) Executive Secretary-Treasurer Daniel Duncan http://www.seafarers.org/seafarerslog/2011/11_November/cargopreference.htm AFF- This law is an important part of our national security and economy “There should be no question that, in order to grow and maintain the U.S. Merchant Marine, U.S.-flagged vessels should be used to the greatest extent possible when shipping government-impelled cargoes,” said William Doyle of MEBA. “Without oversight and enforcement from MarAd, the presence of the U.S.-flag fleet in the foreign trades would cease to exist, leaving a glaring hole in our national defense capabilities and negatively impacting our economy.” William Doyle of...
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...Impact of unstable Economic on Transportation Like many economic activities that are intensive in infrastructures, the transport sector is an important component of the economy impacting on development and the welfare of populations. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, and the unstable economy hey can have an economic cost such as reduced or missed opportunities. Transport also carries an important social and environmental load, which cannot be neglected. Thus, from a general standpoint the unstable economic impacts on transportation can be direct and indirect: • Direct impacts related to accessibility change where the unstable economy is disabling larger markets to save time and costs. • Indirect impacts related to the economic multiplier effects where the price of commodities, goods or services drop and/or their variety increases. Mobility is one of the most fundamental and important characteristics of economic activity as it satisfies the basic need of going from one location to the other, a need shared by passengers, freight and information. All economies and regions do not share the same level of mobility as most are in a different stage in their mobility transition. Economies that possess greater mobility are often...
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...Port Policy December 1995 Ports & Fisheries Department Government of Gujarat India INTRODUCTION Gujarat, situated on the western coast of India, is a principal Maritime State endowed with favourable strategic port locations. The prominence of Gujarat is by a virtue of having nearly 1600 kms long coastline, which accounts for 1/3rd of the coastline of India and being the nearest maritime outlet to Middle East, Africa and Europe. In 1991, Government of India initiated various economic, trade and industrial reforms, through the policy of liberalisation to enhance industrial and trading activities. The rationalisation of import duties and stress on export promotion have seen imports increasing by 24% and export by 25%. Gujarat State, is one of those frontline States that can take up the policy of liberalisation and privatisation, announced by the Govenment of India through a process of globalisation. Gujarat itself is experiencing a phenomenal interest in investment both from MegaIndustrial sectors within the country and also from top Multi Nationals abroad. Investment to the tune of $ 30 billion are already in the pipeline. From an analysis of the present investments and those that are flowing in, one can perceive a particular trend which is manifesting itself - investments are converging in and around potential port sites. Investments of over Rs. 16.000 crores are taking place at Hazira, Rs. 15,000 crores are planned at Vagra. Rs. 20,000 crores are planned in areas near Pipavav...
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...A Project Report on “A Distribution Channel of Gati Logistics Ltd.” In partial fulfillment for the requirements of Legal Aspects of Business course in the Two Year Full-time Master of Business Administration Programme, Gujarat Technical University SUBMITTED BY: Clifford Dsouza | NR13035 | Royston Dsouza | NR13036 | Mittal Patel | NR13098 | Atit Sakhidas | NR13125 | Akash Shah | NR13130 | Manali Sharma | NR13145 | Tejas Vasani NR SUBMITTED TO: Dr. Jasmin Padiya N.R. INSTITUTE OF BUSINESS MANAGEMENT BATCH 2013-2015 * Industry Overview The Indian logistics industry was valued at an estimated US$ 130 billion in 2012-13. It has grown at a CAGR of over 16 per cent over the last five years. The industry comprises the following main segments: * Freight and passenger transportation via road, rail, air and water * Warehousing and cold-storage. The contribution from the movement of goods including freight transportation and storage is about 90 per cent. Aggregate freight traffic is estimated at about 2-2.3 trillion tonne kilometres. Road dominates the mode of freight transport mix and constitutes about 60 per cent of the total freight traffic. Rail and coastal shipping account for about 32 per cent and 7 per cent, respectively, while the share of inland waterways transportation and air is less than 1 percent. Warehousing comprises industrial and agricultural storage...
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...Main functions of a bill of lading Bill of lading fulfills three main roles and several sub-roles, as stated below: 1. Receipt for cargo a) Receipt for the quantity of goods; b) Condition of the goods when they were taken on board; 2. Evidence of a contract of carriage 3. Document of title (the right to ownership of property with or without possession) a) Right of ownership (the right to claim cargo; it is a negotiable document); b) Security for payment; I would like to describe how the above-mentioned functions operate. Bill of lading as a receipt for cargo means that the document is issued to evidence that the consignee received the goods. Quantity of goods should be stated on the face of a bill of lading in the section “Particulars declared by the shipper but not acknowledged by the carrier”. The number and description of goods including their gross weight (in kilograms) and measurement (in cubic meters) shall be stated as the evidence of cargo’s quantity. The words “shipped on board in apparent good order and condition…” give the evidence of the good condition of shipper's cargo when received, loaded or shipped by carrier. In this case the bill of lading is “clean”. If cargo is damaged when presented for loading the damage has to be referred to in writing on the face of the bill of lading. If any adverse endorsements are included the bill of lading the document is known as “claused”. Bill of lading is an evidence of the terms of the contract of carriage, but...
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