QOTW3 – USE BULK CARRIEREconomies of scale -Global Transportation –Major International Transportation ModesOceanThe most pervasive and important global shipment method, accounting for two-thirds of all international movements. Major Advantages are low rates and the ability to transport a wide variety of products and shipment sizeThree Major Categories –Liner ServiceCharter VesselsPrivate CarriersAirFast transit timesAn Advantage in packagingDisadvantage of air carriage is high ratesSpeed allows large compression of transit timesLinkages with package delivery and courier services provide true point-to-point serviceRates have traditionally restricted cargo to low density, high value goodsVolume is approximately 1% of movements, but nearly 20% of the valueNew Air-Freighters………….Motor –Use motor transport when shipping goods to between the united states and Mexico/CanadaIt is very common in EuropeMotor also plays a large part in intermodal shipmentsRail -International railroad use is also highly similar to domestic rail useIntermodal container shipments by rail are increasingMaritime Bridge ConceptsLand BridgeOcean Structure –Charter – two kinds of charters; 1) Time Charter – ship owner leases the vessel to the charterer for a stipulated period of time at an agreed rate per vessel DWT per month OR 2) Voyage Charter – ship owner leases the vessel for the transport of the charterers goods on a single voyage from one port to another, at an agreed rate per ton of cargo carried.No regular schedulesNo regular routesMostly shiploads of one commodityUsually for a single shipperCost oriented and competitiveA Contract CarrierLinerPrivateInclude bulk, container, RO-RO (roll-on – roll-off)Most pervasive and important global modeBareboat (demise) Charter –Special type of Time CharterTransfer everything but the title to the vesselNo crew, fuel, or stores made availableCharterer has the entire burdenUsed for Financial ReasonsUsed to Supplement9.23.14 – SCMT309 Chapter 3 and 11 [from other text] LectureQOTW3 – USE BULK CARRIEREconomies of scale - -Global Transportation – oMajor International Transportation ModesOcean The most pervasive and important global shipment method, accounting for two-thirds of all international movements. Major Advantages are low rates and the ability to transport a wide variety of products and shipment size-Three Major Categories –oLiner ServiceoCharter VesselsoPrivate CarriersAir Fast transit timesAn Advantage in packaging Disadvantage of air carriage is high ratesSpeed allows large compression of transit timesLinkages with package delivery and courier services provide true point-to-point serviceRates have traditionally restricted cargo to low density, high value goodsVolume is approximately 1% of movements, but nearly 20% of the valueNew Air-Freighters………….Motor –Use motor transport when shipping goods to between the united states and Mexico/CanadaIt is very common in EuropeMotor also plays a large part in intermodal shipmentsRail -International railroad use is also highly similar to domestic rail useIntermodal container shipments by rail are increasing Maritime Bridge Concepts -Land Bridge -Ocean Structure – oCharter – two kinds of charters; 1) Time Charter – ship owner leases the vessel to the charterer for a stipulated period of time at an agreed rate per vessel DWT per month OR 2) Voyage Charter – ship owner leases the vessel for the transport of the charterers goods on a single voyage from oneport to another, at an agreed rate per ton of cargo carried.No regular schedulesNo regular routesMostly shiploads of one commodity Usually for a single shipperCost oriented and competitiveA Contract CarrieroLiner oPrivate-Include bulk, container, RO-RO (roll-on – roll-off)-Most pervasive and important global mode-Bareboat (demise) Charter –oSpecial type of Time CharterTransfer everything but the title to the vesselNo crew, fuel, or stores made availableoCharterer has the entire burdenoUsed for Financial ReasonsoUsed to