Two, Three, Four, and Five PL Models
1. 2PL (Second Party Logistics):
o Involves asset-based carriers like transport and warehouse
providers.
o Focuses on physical movement of goods.
2. 3PL (Third Party Logistics):
o Provides comprehensive logistics services (transportation,
warehousing, etc.).
o Integrates supply chain functions to improve efficiency.
3. 4PL (Fourth Party Logistics):
o Acts as a supply chain integrator, managing 3PLs and other
resources.
o Offers strategic planning, consultation, and complete oversight.
4. 5PL (Fifth Party Logistics):
o Focuses on e-commerce and technology-driven logistics solutions.
o Emphasizes end-to-end supply chain management and
optimization.
Domestic and International Trade Logistics
1. Domestic Trade Logistics:
o Simplified regulations and shorter transit times.
o Involves localized networks and smaller supply chains.
2. International Trade Logistics:
o Complex due to customs, tariffs, and international regulations.
o Requires multimodal transportation and global coordination.
Freight Forwarding by Road, Rail, Sea, and Air
1. Road: Suitable for short and medium distances, flexible routing.
2. Rail: Cost-effective for heavy and bulk goods over long distances.
3. Sea: Best for international shipping of large volumes.
4. Air: Fastest mode, ideal for high-value or time-sensitive cargo.
Multimodal Transportation Models and Packing
1. Multimodal Transportation:
o Combines two or more transportation modes (e.g., road-sea-road).
o Reduces costs and improves efficiency.
2. Packing Models:
o Optimize material usage and minimize transportation costs.
o Focus on reducing damages and facilitating handling.
LCLs and FCLs
1. LCL (Less than Container Load):
o Suitable for smaller shipments; multiple shippers share a container.
o Cost-effective but may involve longer transit times.
2. FCL (Full Container Load):
o Entire container used by one shipper.
o Faster transit and reduced handling risks.
Freight Consolidation, Freight Forwarders, and NVOCC
1. Freight Consolidation:
o Combines smaller shipments into one larger load.
o Reduces costs and optimizes capacity utilization.
2. Freight Forwarders:
o Arrange transportation and handle documentation.
o Act as intermediaries between shippers and carriers.
3. NVOCC (Non-Vessel Operating Common Carrier):
o Acts like a carrier but does not operate its own vessels.
o Issues bills of lading and leases shipping capacity.
Outsourcing of Logistics Services
1. Cost Efficiency: Reduces fixed costs and capital investments.
2. Focus on Core Competencies: Allows businesses to concentrate on
main operations.
3. Access to Expertise: Leverages specialized skills of logistics providers.
Overview of MMTG Act (1993)
Regulates multimodal transportation of goods in India.
Ensures streamlined operations across different transportation modes.
Establishes legal framework for liability and claims.
Shipping Intermediaries and Formalities
1. Shipping Agents: Represent shipowners and manage port operations.
2. Customs Brokers: Handle import/export clearance and compliance.
3. Documentation: Includes bills of lading, invoices, and export licenses.
Incoterms: Meaning and Types
1. Meaning:
o International Commercial Terms set by the ICC.
o Define responsibilities of buyers and sellers in global trade.
2. Types:
o EXW (Ex Works): Seller makes goods available at their premises.
o FOB (Free on Board): Seller delivers goods on board a vessel.
o CIF (Cost, Insurance, and Freight): Seller covers costs,
insurance, and freight to the destination port.
o DAP (Delivered at Place): Seller delivers goods to a named
location, excluding import duties.
