TERMINAL

 Terminal is the place for interchange different mode of transportation and also can maintenance   depot.

=airport terminal= a building at an airport


=bus terminal=a bus station



=container terminal=a facility which handles shippiung containers and cargo


=ferry terminal=a facility for bring passengers and vehicles


=shipping terminal=sea port


=railroad terminal=have a railway that bring passengers and cargo

INCOTERM

IMPORTANT OF INCOTERM IN INTERNATIONAL TRANSACTION

Incoterm are agreement between seller and buyer. Its about a delivery of goods in international transaction from the seller to the buyer.This incoterm can makes transaction are more easily to both party. Their must agree as what it is in that agreement. This incoterm also can change ownership from the seller to the buyer base on the agreement and their must agree about it. Its like base on agreement, the both party will choose what the term their will use. Their will take a risk, cost of transportation,and insurance base on their agreement in incoterm. It can easy to identify where the location should seller or buyers takes a risk and responsibilities of transportation. Without incoterm, gross profit on international transaction cannot be determined.

TERMS IN INTERNATIONAL COMMERCIAL TERMS ( INCOTERM 2010 )

Ex Works ( EXW)

Seller just have responsibilities to the goods until the goods are packaging at factory of seller's place. After that buyers must responsibilities for cost of transportation, risk, and insurance.

Free Carrier (FCA)

Seller just have responsibilities to the goods until the goods are put in the lorry at the seller's place.

After that buyers must responsibilities for costs of transportation, risk, and insurance.

Free Alongside Ship (FAS)

Seller just have responsibilities to the goods until the goods are loading at port of shipment at the seller's place.After that buyers must responsibilities for costs of transportation, risk, and insurance.

Free On Board (FOB)

Seller just have responsibilities to the goods until the goods are put in a ship at port of seller's place.After that buyers must responsibilities for costs of transportation, risk, and insurance.

Cost and Freight (CFR)

Seller just have responsibilities a costs of goods until a goods in a ship at port of customer's place. After that buyers must responsibilities it.For a risk and insurance, a seller must responsibilities until a goods in a ship at port of seller's place. Then the buyers will responsibilities it.

Cost, Insurance and Freight (CIF)

Seller just have responsibilities a costs of goods until a goods in a ship at port of customer's place. After that buyers must responsibilities it.For a risk and insurance, a seller must responsibilities until a goods in a ship at port of seller's place. Then the buyers will responsibilities it.

Carriage Paid To (CPT)

Seller just have responsibilities a costs of goods until a goods arrive at terminal charges of buyer's place. After that buyers must responsibilities it. For a risk and insurance, a seller must responsibilities until a goods are put in the lorry at seller's place. Then the buyers will responsibilities it.

Carriage and Insurance Paid To (CIP)

Seller just have responsibilities a costs and insurance of goods until a goods arrive at terminal charges of buyer's place. After that buyers must responsibilities it. For a risk of goods, a seller must responsibilities until a goods are put in the lorry at seller's place. Then the buyers will responsibilities it.

Delivery Duty Paid (DDP)

Seller have responsibilities a costs,risk,and insurance of goods until a goods are put in the lorry at seller's place.Then the buyers will responsibilities it.

Delivery At Place (DAP)

Same with DDP. Seller have responsibilities a costs,risk,and insurance of goods until a goods are put in the lorry at seller's place.Then the buyers will responsibilities it.

Delivery At Terminal (DAT)

Seller have responsibilities a costs,risk,and insurance of goods until a goods are arrive at terminal charges of buyer's place.Then the buyers will responsibilities it.

..Market Structure..

Type of Market Structure:

1. Oligopoly

• Only few large seller in market (their quantity can calculated)
• Difficult exist and entry market but not difficult as perfect monopolitic competition
• pricing influenced by other oligopoly firm
• It has subtitute product 
• In long run super normal
• Price are determine by two ways

                            - competitor pricing

                            - cartel (associated) < --  IATA ( body that determines the price )

• For example :

                           - Air Asia, Firefly, Air Lines

                           - Celcom , Digi, Mobile

                           - Tesco, Giant, Crefore

                           - Petronas, Petron etc

   2. Monopolitic Competition

• Many buyer in market
• Many seller in market but not many as perfect competition
• Product not homogeneous but differentiated physically ( creativity, design, types of material used ) or psychology ( advertising, publisity, ranking )
• Free entry and exist a market but not easy as perfect competition
• Existance of known price competition. 
• One firm can lower the price without effecting other
• For example: 

                          - Detergen

                          - Flour

                          - Cooking oil

    3. Perfect Monopolitic Competition

• Single seller and large buyer
• For example:

                         - KTMB

                         - ASTRO

                         - TNB

• Put in any price,but the customer will still be paying
• Corncern a sports
• Product not subtitute (water, and electricity)
• the constraints into the market 

                           - High capital cost

                           - regulation varience

                           - control over raw materials

                           - in the long run , firm will obtain supernormal profit because their price maker

    4. Pure Competition / Perfect Competition

• Large number of sellers and buyers ( too many customrs )
• Price determine by market ( market determined prices )   
• Product are homogeneous
• The buyer cannot identified which suppliers the product come from
• Free regulation varience and low capital ( free entry and exist a market )
• Many competitor
• For example:

                       - Supermarket's

                       - Restaurant's

DIFFERENTIATED LINER & TRAMP IN SEA TRANSPORT

DIFFERENTIATED LINERS & TRAMPS

LINERS

  

Liner is a big company like Mearsk Sealiner their same like a buss liner. Their have a fixed schedule,the shippers that wants to use their services for delivers the goods must follow the rules and a schedule that a liner's provides. It is because the liner wants to more efficent and effectives in their services. If their not follow the schedule that will be accidents between other vessels. Other than that, its possible to will get extra charge like a demurrage and switching charge. Liner also publish their schedule and services ipublic suggest in magazine and website because it easy to update and now people most like to use the internet to find information in website. Moreover, when a shipper want use a liner services, they will offer the space available to a shipper. The ship will move on time, although the space not fully utilize. Types of Company Liners like as Evergreen, APL, NYK, K.Liners, and Hanjin.

ADVANTAGES 

1. They have fixed schedule that shipper have to follow
2. Charges based on space that shipper use
3. The carrier must to responsible the goods
4. All shipper can use it 
5. On time to delivery the product, that is efficient and effective services
6. Publish their services and schedule in public

DISADVANTAGE

1. Space may not available, it is because have a multiple shippers that use liners every time and every day.
2. High risk, because mixing with others shippers cargo can damage
3. Complicated procedure when their is diversion
4. Fixed route, just one way and cannot follow other way and cannot to stop other port.
5. High transit time, have near road  but in schedule must follow long way distance because want to avoid from collides and have high risk
6. Move on time, although the space not fully utilize

TRAMPS

Tramps same like a taxi. They cannot have fixed schedule, but the carrier must follow the shipper schedule. The carrier also must follow the way and port that shipper inform in schedule. Only one shipper that can use the services and the shipper must pay for the rent. The carrier will provide a special equipment to handle shipper product if shipper required  for the services. The price are also not fixed  because the shipper will pay based on the services that they use. Tramps carry the product such as coal, grain, and sugar. Tramps can give services anytime that shipper want to used. Tramps usually used for sesonal demand and can carry in bulky cargo. 

ADVANTAGES

1. Can go any port any time follow the demand from customer
2. Provide the services anytime if shipper want use it
3. They should deliver the product in fast
4. Can handle urgent product to deliver or emergency product

DISADVANTAGES

1. Only one shipper can use it
2. Route are not display in public
3. Not on time because they want to utilize the space 

IATA & ICAO

                                       

What is IATA? IATA is International Air Traffic Association.Some of the company Airlines can follow or not the regulation that IATA make. IATA have standardized the price for cost of aviation for example Malaysia Airline and Fire Fly there is follow the regulation of IATA make. There charged same services for their customer. But for Air Asia they did not follow IATA because they focus more on the lower cost for their services. For them, the cost is most important for their customer. Customer no need for comfortable services but the cost is the main important. If Air Asia provide lower cost of services they will get a lot of competition. Air Asia have competitive advantage because they provide lower cost service and customer will attrack with their charges service and Air Asia will get more profit than another company.

                                     

ICAO is International Civil Aviation Organization. All of company Airlines must follow the regulation of ICAO make it is because their developed the regulation of Airlines. For example like  regulation in country, if the any people not follow the regulation that will be make act from government or police. It is same with the regulation in industries Airline, if their not follow the regulation that will be act, this cause as to make sure the all of Airlines care safety of passenger. For company that not follow the ICAO regulation they must own protect if has any eccident.

Competition of air carrier and water carrier

          

Port is depend the economic in a country like Malaysia, China, Singapore and others. Normally the ports in a country is a major contributor to economic growth in a business. As in Malaysia, Malaysian ports function as entry and exit of merchandise goods for import and export in the production of an article to the others country and the places for loading and unloading process. Most of normally the freights can deliver and move use of mode of shipping transportation. Ship is also suitable for use in long distance for delivery of goods and can carry in bulky size. Event the sea transport is very lower in movement and takes a long time to arrive but it is a very important in move the goods with that much capacity where other transportation is not able to carry more cargo from ships.

In the commercial world there are also several types of ships competition diversity of modes such as is Air transportation. Air transportation is highest movement speeds to deliver the product compare with sea transport movement is low but, air transportation normally use by multiple shipper for transfer the high value of product. That are many transportation services provided to facilitate the delivery of good quickly and easily, the air transport also easy to handle and manage. The types of air transport carry such as perishable product, documentation, high value of product, goods quickly exhausted date like as magazine, newspaper and others..

                     

In addition, there are a lot of growth in the port and shipping activities is recognized as an important contributor in facilities trade in Malaysia. In Malaysia is also at the same time, provide the many modes of transportation and compare between shipping and air transport system. Knowing the challenges, have many port in a domestic has improve their effort to become one of the most important ports in world in International levels.With the have many growth of the port in the world it will caused of competition between the country. 

                                       

                                            

Types of shipping Company:

1. K.Line
2. OOCL
3. Mearsk Sealand
4. P&O Nedlloud
5. Yang Ming
6. APL
7. ZIM
8. Tripple E
9. Wan Hai
10. Hanjin
11. Evergreen
12. COSCO
13. MISC

Freight Transportation Structure

Freight transportation structure have five. That's are highway, pipeline, air, rail and sea. Each of that must have a terminal that they will stop and continuous their delivery . At a terminal, they will do loading and unloading process by using a materials handling. At the terminal also they will change mode of transportation.

For road transportation, it based on road transportation. The terminal is like at a rest and recovery (R&R) and bus station. Cost of transportation is cheaper than air. The mode of transportation like a bus, lorry, taxi and motorcycles. A product also can delivery in bulky size. But, it will be a long term delivery when a supplier deliver in far location. It also provide door-to-door service.

For air, it based on air transportation. The terminal is  like at a airport. Cost of transportation is more high than other mode of transportation. The example of this mode is airplane. The product cannot bring in bulky size because it has a limited capacity. But, it will be a short term delivery when a supplier when deliver their products at a far location. It suitable for high value products. It has no door-to-door service because only stop at their terminal only. They will stop at certain terminal for send and pickup passengers or products. If wants door-to-door service, they must contact with other modes like a road transportation. Usually, road transportation provide door-to-door service. 

Next is pipeline.It based on pipeline transportation. The terminals are like a tank, bathroom and toilet. The liquid or gas are flow at every terminal but just one types of liquid or gas can flow at own pipeline. That only have one ways. Cost of transportation for pipeline is lower than road transportation. It can bring a product in bulky size. That also have high security.

While, for the rail, it based on rail transportation like a train. Many types of rail car are have it like hopper car, boxcar, flatcar, tank car and so on. Their terminal is at rail terminal. The cost of transportation is lower than road transportation. It can bring in bulky size. At the same time, it can carry passengers. That will stop at certain terminal for pickup and sent a passengers or goods. It have own terminal and flow each train. It suitable for low value of products such as grain, sand, clothes and so on. Rail has no door-to-door service because they only stop at one terminal to another terminal. That also not flexible geographic.

For the last is sea transportation like a ship. They have many types of ships such as tugboat, dredger, roll-on roll-off, barges and so on. They have own terminal also at seaport. Cost of transportation is also low cost because carry in bulky size. But they have high transit time. Because sea transportation is a slow movement. Sea transportation suitable for long distance. At the same time, they can carry passenger like a Ferry. It also not provide door-to-door service because it also stop at each of terminal. Their documentation also more complex. Their material handling also more complex for loading and unloading products.