Chapter 8
INTERNATIONAL LOGISTICS
Learning Objectives
1 International logistics
2 International freight forwarders
3 Shipping process & documentations
INTERNATIONAL LOGISTICS
• International logistics refers to the management of processes and activities
related to the movement of goods, services and information across borders.
• There are two categories of business logistics: Materials management and
Physical distribution
• One of the major contribution of logistics to international trade is in the area of
efficient allocation of resources
INTERNATIONAL LOGISTICS
• Factors influence international logistics decisions: regulations, competition, and
technology
• Firm must use a logistics system that best fits its product line and strategy
FREIGHT FORWARDERS
• Because of the multitude of considerations involved in physically exporting
goods need assistance from air carrier or freight forwarder
• A freight forwarder is an agent that ships cargo to an overseas destination
FREIGHT FORWARDERS
• FWD familiar with foreign countries’ rules and regulations, shipping methods,
and necessary documents for foreign trade
• FWD assist exporters in preparing price quotations, freight costs, port charges,
insurance costs, other related fees, and packing the products.
• FWD can also make arrangements with customs brokers overseas to ensure that
the goods comply with customs import documentation regulations
PACKING
• be aware of the demands that international shipping puts
on packaged goods
• potential problems when designing an export shipping crate: breakage,
moisture, pilferage, and excess weight
• Follow buyers’ specific packaging requirements
• Popular method of shipment: use containers obtained from carriers or private
leasing companies
PACKING
• Depends on the delivering methods (air/ocean shipments) determine the
adequately protected packing
• transportation costs are determined by volume and weight proper materials
may save money and ensure that the goods are properly packed.
LABELING
• Export shipping cartons and containers have specific markings and labelling that:
• Buyer usually specifies which export marks should appear on the cargo for easy
identification by receivers.
• Products may require many markings for shipment.
AIR SHIPMENTS
• Depend on Incoterms to determine party in charge in each step
• Usually involve FWD for timing delivery
• AWB: Airway Bill
CONTENTS:
• AWB number, Airlines
code
• Shipper / Consignee
information
• Airport Departure,
Destination
• Description of goods,
weight
OCEAN SHIPMENTS
• Depend on Incoterms to determine party in charge in each step
• Usually involve FWD for timing delivery
• B/L: Bill of lading
• Bill no., shipper, consignee,
notify party
• Vessel name, POL, POD,
party to contact for cargo
release
• Description of goods,
weight
EXPRESS COURIER
• Premium service offering fast, reliable, and time-definite delivery of packages.
• Delivers time-sensitive documents, parcels, letters and packages on behalf of businesses
and individuals.
• Can use only one service provider (FedEx, UPS, DHL…) without involvement of FWD
SHIPPING COST
• Total shipping cost include: ocean/air freight + surcharges + local charges
• Freight: cost of transporting goods from one point to another, calculated based on the
weight or size of the goods and the distance of transportation.
• Surcharges: additional fees arised from various factors such as market conditions,
weather conditions, or legal regulations.
• Local charges: costs incurred at the point of origin and destination at seaports, airports,
or road transport stations, paid for specific services or procedures at each location.
• Vietnam local charges
CASE STUDY
• PAGE 145
READING MATERIALS
• Chapter 12 - U.S. Commercial Service - A Basic Guide to
Exporting
