INTRODUCTION
\nThe needs and expectations of a rapidly growing world population can only be met by
\ntransporting the products. Due to the geographical extension and dispersion of production
\nplaces, global transportation modes getting more attraction in the last decade. UNCTAD (2014)
\nstated that almost 85% of international trade in products is carried at sea by shipping industry.
\nThus, the shape of the world economy is highly dependent on maritime industry.
\nPorts are the milestones of that industry in all over the world. Ports measure the volume of
\ncontainers they handle in twenty-foot equivalent units (TEU), the standard size of a container.
\nIn 2014, approximately 650 million TEU were handled by all ports world-wide (UNCTAD,
\n2014). Based on Clarkson (2014), global containerized trade is project ( help with nursing paper writing from experts with MSN & DNP degrees)ed to grow by 5.6 % in
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\nyear 2014. Lam and Yap (2011) told that containerization has fragmented the shipping
\noperations and network integration.
\nIn the maritime industry, there exist a range of actors which offer various activities and stand
\nfor different functions. Suppliers (shipyards, educational institutes, bunker, provision), ship
\nowners and ship management companies, intermediaries (ship agents, ship brokers, freight
\nforwarders), customers (charterers, shippers), port authorities, customs, stevedores, class and
\nsurvey institutions, insurance companies, and banks are the actors in maritime transportation
\nsystem (Deveci, 2013, p.24). These actors as represent different activities and stand for different
\nfunctions, must act in an integrated and coordinated manner to offer efficient, effective,
\neconomic, sustainable and environmental friendly maritime activities.
\nThe reality is that the deep meaning of maritime activities can be defined by logistics activities.
\nLogistics is defined as the process of planning, implementing and managing the movement of
\nproducts and information from one point to another. Logistics is a highly broad concept which
\ninvolves many businesses and management related functions and also it is divided into many
\nactivities\/functions which can be listed as follow: Transportation, inventory management, order
\nprocessing, warehousing, customer services, handling, packaging, labelling, information
\nmanagement, returned product management, salvage scrap disposal, and site\/location selection
\n(Lambert, Stock, &Ellram, 1998; Ballou, 1999; Wood, Barone, Murphy, & Wardlow, 2002;
\nBowersox, Closs, & Cooper, 2010). Correspondingly maritime industry is also highly broad
\nconcept in which all maritime related fields such as ship owning, chartering, agents, brokering,
\nforwarding, stevedoring, supply management, port management, maritime business
\nadministration, etc. are involved. The broad nature and scope of logistics and maritime industry
\nmake it more difficult to specify the borders of maritime logistics. In this chapter it is tried to
\ndraw the framework of maritime logistics concept as far as possible with the help of topic (sample nursing essay examples by the best nursing assignment writing service)s
\nnamely; transportation and traffic management, inventory management, demand forecasting,
\nmaterial handling, packaging and labelling, port logistics, green maritime logistics and decision
\nproblems in maritime logistics
\nBACKGROUND
\nMaritime logistics is formed by a combination of transshipment functions and maritime services
\nat ports. But it is not easy to define \u2018maritime logistics\u2019, surprisingly to prove this difficulty,
\nany clear definition, scope and role of maritime logistics have not been appeared in the
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\nprohibited.
\nacademic literature yet (Lee, Nam, & Song, 2012, p.9). Hult et al. (2007) defined the value of
\nmaritime logistics as facilitating the higher efficiency and effectiveness of a maritime logistics
\nservice. According to Panayides (2006), \u201cthe integrated demand for maritime transport brings
\non a maritime logistics concept\u201d. Lee and his friends (2012, p.11) define maritime logistics as
\nfollow:
\n\u201cMaritime logistics is referred to as the process of planning, implementing and
\nmanaging the movement of goods and information involved in the ocean carriage.\u201d
\nThe main issue in maritime logistics lies down in the concept of integration which has to be
\noccurred in physical level (intermodal or multimodal), economic\/strategic level (vertical
\nintegration, management structure) or organizational level (relationship based, people and
\nprocess integration between organizations) (Tuna & Arabelen, 2013).
\nThere are three important actors in maritime logistics system: shipping, port\/terminal operating,
\nand freight forwarding (Table 1). The main function of shipping is to move cargoes of shippers
\nfrom one port to another. By adding logistics activities to the main function like collecting the
\ncargoes in one point, informing the delivery position, helping customers who want special
\nservices, preparing bill of lading, container tracking, performing intermodal services and
\ninformation flow (Heaver, Meersman, & Van de Voorde 2000), the shipping service gets more
\nclose to the value added shipping logistics concept.
\nThe main port\/terminal operations are; loading ships, discharging ships and preparation of
\ncargoes for final destination. In modern logistics system ports also contain value added services
\nlike warehousing, packaging, inland connections, repairing and assembly which make ports a
\ncluster of organizations to fully become a link in supply chain (Bichou & Gray, 2004; Carbone
\n& De Martino, 2003).
\nTable 1. Main Function and Supportive Activities of Maritime Logistics (Lee, et al. 2012)
\nShipping Port\/Terminal operating Freight forwarding
\nMain function Moving cargoes
\nbetween ports
\n-Shipping reception
\n-Loading\/unloading cargoes
\n-Stevedoring
\n-Connecting to inland
\ntransportation
\nBooking vessels and
\npreparing for requisite
\ndocuments for ocean
\ncarriage and trade on behalf
\nof shippers
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\nSupportive
\nlogistics activities
\n-Documentation
\nrelating sea trade
\n-Container tracking and
\ninformation flow
\n-Providing intermodal
\nservice
\n-Warehousing
\n-Offering distribution center
\n-Testing
\n-Assembly
\n-Repairing
\n-Inland connections
\n-Inventory management
\n-Packaging
\n-Warehousing
\nIn general, freight forwarding can be considered as a dimension or a function of logistics
\noutsourcing which deals specifically with the transportation of freight. Lambert et al. (1998)
\ndefined freight forwarders as companies that serve both to shippers and carriers by organizing
\nand coordinating the transportation of goods. So in the international trade process, sometimes
\nfreight forwarders act on behalf of shippers by providing the main activities like reserving a
\nvessel, preparing bill of lading and other documents and with the supportive logistics activities
\nlike inventory management, packaging and warehousing (Table 1). On the other hand, Yang
\n(2012) claimed that ocean freight forwarders must respond promptly to clients\u2019 complaints and
\ncargo claims, and must provide customized logistics services to compete in this dynamic
\nmarketplace. Lately, customers are willing to pay annual fee and to make contract with the
\nfreight forwarders networks (IFLN, WCA, Pacific Shipping, Combined Logistics Network,
\nAsian Groupage Service, Planet Logistics Network and Mac-Nels).
\nThe maritime logistics definitions discussed previously indicate activities for which the
\nmaritime industry actors might be responsible. It can be said that maritime logistics is not a
\nconcept that just shows the performed logistics activities like warehousing in addition to the
\nmain activities like shipping. It is a concept with broader philosophy which contains integration,
\ncoordination, value added customer services, lower costs, higher flexibility, reduced response
\ntime and higher quality. The list is quite comprehensive; it is worthwhile to discuss important
\nmaritime logistics functions and their relationship with other functions in the firm\u2019s supply
\nchain.
\nMARITIME LOGISTICS FUNCTIONS
\nTransportation and Traffic Management
\nTransportation is the operational main activity in the maritime logistics system. Because of its
\nfundamental importance, all decision makers have directed significant attention toward
\nreducing cost of transportation. Economies of scale benefit and reduction in unit cost can be
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\nachieved by carrying high volume of cargo in one voyage. Maritime transportation can be
\nclassified into three types: industrial, tramp and liner shipping. Under this topic (sample nursing essay examples by the best nursing assignment writing service) we will handle
\nthese three maritime transportation types in general.
\nIndustrial Shipping: Industrial shipping refers to the case where the cargo owner also owns the
\nship and aims to minimize shipping costs (Ronen, 1983).
\nTramp Shipping: Tramp ships are similar to taxis as they try to catch up the available cargo that
\ncargo shipped generally belongs to one owner. Tramp shipping is a kind of shipping which in
\nthe long run does not have a fixed itinerary, and which carries mainly bulk cargoes over
\nrelatively long distances and from one or more ports to one or more ports by any vessel with a
\ntonnage of 4,000 dwt or above (Metaxas, 1972, p.271). The freight rate in tramp shipping
\nfluctuates seasonally according to the ship size, charter durations and market conditions. The
\nmajor difference between tramp and liner shipping is the unscheduled, open market mode of
\noperation (OECD, 2002, p.20). The cargoes that carried in tramp shipping are generally in the
\nform of semi-product or raw material that will be used in industry to produce final products.
\nThere are three main categories of bulk cargo carried in tramp shipping (Stopford, 2009, p.64):
\n\uf0b7 The five major bulks: Iron ore, coal, grain, bauxite\/ alumina and phosphate rock
\n\uf0b7 Minor bulks: Agri-bulks, fertilizers, metals, minerals, steel and forest products
\n\uf0b7 Liquid bulk: Crude oil, petroleum products, and liquid chemicals cargoes
\nLiner Shipping: Liner shipping offers a special service for the shippers who prefer a constant
\nrate rather than a fluctuating market rate. Liner shipping; specializes in the transport of small
\ncargo parcels, which do not fill the hold of a ship, on regular services. The main classes of
\ncargoes in liner shipping are loose cargo, containerized cargo, palletized cargo, pre-slung cargo,
\nliquid cargo, refrigerated cargo, and heavy cargoes (Stopford, 2009, p.65).
\nTable 2. Maritime logistics versus maritime transportation, (Lee, et al., 2012, p.12)
\nMaritime Transportation Maritime Logistics
\nConcept The process of carrying and
\nhandling cargoes across the ocean.
\nThe process of planning, implementing and
\nmanaging the movement of goods and
\ninformation involved in ocean carriage.
\nFocusing
\npoint
\nMaritime transportation emphasizes
\nindividual functions relating to sea
\ntransportation. Each function
\nMaritime logistics is concerned with not only
\nindividual functions relating to sea
\ntransportation, but also an effective logistics
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\npursues its own aims or
\ncompetitiveness.
\nflow as a systematic entity of the logistics
\nintegration system.
\nManagerial
\nfunction
\nSea transportation activities:
\ncontracting, shipping, sea voyage,
\nmoving cargo, and
\nloading\/unloading.
\nSea transportation activities:
\nContracting, shipping, sea voyage, moving
\ncargo, and loading\/unloading.
\nAdditional logistics services:
\nStripping\/stuffing, storage, warehousing,
\noffering a distribution center, quality control,
\ntesting, assembly, packaging, repacking,
\nrepairing, inland connection, and re-use
\nAs seen in the Table 2 while maritime transportation is just focusing on the individual functions
\nrelating to sea transportation, maritime logistics focuses on the effective and efficient cargo and
\ninformation flow in the scope of logistics system. Maritime logistics does not only interested in
\nsea transportation activities like shipping, loading and unloading but also in value added
\nlogistics activities like warehousing, packaging, repairing, stuffing, storage, etc. Maritime
\ntransport operators are accordingly encouraged to keep pace with other logistics functions as a
\ncentral member of a global logistics integration system (O\u2019Leary-Kelly & Flores 2002;
\nPanayides 2006; Panayides & Song 2008).
\nTraffic management and routing is a part of transportation sub-function of logistics. In maritime
\ntransportation routing depends on the type of shipping. Routes in liner shipping are
\npredetermined, the loading and unloading ports are fixed and time schedules are certainly
\nestablished. In tramp shipping there is not any predetermined thing related with routing. Route,
\nports and the time are determined with the order of cargo carriage. Kendall and Buckley (2001)
\nalso consider the industrial shipping in which there are fixed ports but flexible sequences and
\nschedules.
\nInventory Management
\nInventory management concerns with trying to reduce the stock level and relating costs as low
\nas possible. Song and Lee (2012) suggested that maritime managers who obtain significant
\ncustomer information can constantly update on market demands. Later, they can forecast the
\nmarket situation and that gives them a positive effect to coordinate their inventory management
\nsystems. Inventory planning has a critical role in customer service level. Service level can be
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\nmeasured as an order time, lead time, case fill rate, line fill rate, order fulfillment rate or any
\nmix combination of these.
\nIn the old times, both shipping companies and ports offered just basic logistics functions to their
\ncustomers. Now days, the competition is getting larger each day, the new logistics services
\nhave been offered by shipping companies to gain a competitive advantage. Inventory
\nmanagement is a kindly new service for the ports to manage customer inventory and fulfill their
\norders. In maritime transportation most often occur in vertically integrated companies, where
\nthe same company controls all inventories as well as the fleet of ships transporting the products
\n(Stalhane, Andersson, Christiansen, & Fagerholt, 2014).
\nMany firms prefer to decentralize the inventory management in charge of the flow
\nsynchronization between overseas assembling plants and first tier suppliers in the port (Carbone
\n& De Martino, 2003). They suggested that procurement and pre-assembly stages are becoming
\nan important significance and shape the inventory management of ports. With using some
\ninformation technologies ports should provide some inventory control activities such as;
\npalletize racked-unracked option, lot and serial number control, cycle count review process and
\nvendor managed inventory – wherever products are in transit from the port or moving to their
\nfinal destination.
\nVendor managed inventory (VIM) is a stock management method that a supplier of products is
\nresponsible for optimizing the inventory held by a distributor. VIM agreements in which the
\nsupplier takes control of their tanks inventory levels, ensuring that adequate service levels are
\nmaintained. In maritime logistics, a fleet of ships transport multiple bulk goods from a set of
\nproduction ports to a set of different customers, have their facilities (Giesen, Munoz, Silva &
\nLeva, 2007).
\nOn the hand, inventory management also can be defined as controlling all contract affairs
\nrelating to rental, equipping and usage contracts for land areas, buildings, floating installations,
\nas well as the clearing of contaminated sites and the removal of explosive ordinance on rented
\nland areas which is located in the p<\/p>\n","protected":false},"excerpt":{"rendered":"
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