Assignment - 'C' Section

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    Assignment Topics:

    1. Singapores geographical location and having head start in infrastructure development playeda key role in its development and growth .Discuss how such factors influenced the port

    competition is South East Asia and its growing transhipment cargoes traffic giving advantage

    to certain ports like Singapore .Also keep in mind that although geographical location is a

    prime factor for a hub status it is also worth noting that many ports without such good natural

    conditions have obtained very large market shares by promoting competitive factors .In

    Europe for example Felixstowe and La Spezia are now the largest container ports in UK and

    Italy.

    2. Generated in its sixth year, UNCTADs Liner Shipping Connectivity Index (LSCI) aimsatcapturing how well countries are connected to global shipping networks. In 2009, China

    continues to have the highest LSCI, followed by Hong Kong (China), Singapore, the

    Netherlands and the Republic of Korea .As regards global developments of the individual

    LSCI components, the 2009 data also reflects the impacts of the economic crisis. Between

    July 2008 and July 2009, the number of ships, their total twenty-foot equivalent unit (TEU)

    carrying capacity, the number of services and the number of companies have alldecreased.

    Only the maximum vessel size has continued to increase as new and larger vessels are being

    delivered by the worlds shipyards. Many of these larger ships then replace smaller vessels,

    leading to a significant reduction in the average number of vessels per country .Discuss the

    impact this will have on trade and especially in terms container traffic from hub ports to other

    ports via feeder vessels.

    3. Indian Ports are currently operating at over 90 per cent of its capacity .To keep pace with theincreasing cargo traffic, capacity expansion is required .Lack of well-developed infrastructure

    inadequate regulatory regime and several other factors have created barriers for a healthy

    commercial activity .Discuss this statement and explain how we can remove such bottlenecks

    in order to promote trade in this area.

    4.

    Shipping is the life line of world economy discuss this statement and also explain the howstake holders such as Ports & infrastructure, government policies have a role to play in it.

    5. Customers today expect green logistics by the service providers such as 3PL. In developedeconomies such as Europe there has been a modal shift from road transport to short sea

    shipping discuss the reasons for this especially in context with environmental management

    and fuel efficiency.

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    6. With the geographical shift of the world trade from being Euro centric in the past tomore Asian centric now there is exists a great opportunity for India to emerge as a

    regional hub of shipping activities .Its 7000 kms coastline which offers a great potential

    for it in becoming a regional hub of shipping activities .Review the existing shipping

    policies and discuss ways and means how governmental agencies and shipping

    companies can work together in achieving this.

    7. Establishing trade logistics as a separate area for management within a business firm createsan additional set of interface activities and additional set of interface activities cause concern

    in most companies .In order to focus on its core competency many companies now tend to

    outsource its logistics activity .Discuss this statement from a risk management perspective

    and strategies to be adopted in order to ensure proper controls in place.

    8. According to According toDan Purtell, Senior Vice President, Supply Chain Solutions cargotheft. BSIs worldwide annual cargo theft loss forecast for 2010 is $20.5 billion. This amount

    is up fractionally from BSIs 2009 loss estimate of $19.4 billion. BSIs 2010 loss forecast in

    the US alone is $3.7 billion .And according to another survey report the theft of material

    goods continues to be the top security concern. But the changing business environment means

    that companies must focus more attention on other causes of supply chain disruption from the

    theft of intellectual capital and natural disasters, to the closure of ports and product tampering.

    How do we address this discuss and formulate strategies to meet the current challenges facing

    the industry.

    9. According to a paper published by IIM Calcutta in 2005 one of the key challenge faced byIndian 3PL providers is that most of the most of the shipments from India are on the FOB

    (Free on board) basis where the freight is paid by the client at the destination. The client, in

    this case specifies the forwarder for shipping of cargo, and the multi-national 3PL providers

    through their contact with the clients are able to corner most of the business from India .How

    would be address this problem and thus making Indian 3PL providers competitive to their

    multi-national counter parts.

    10.Oil is the major energy source powering the global economy and supplying 95 per cent of thetotal energy fuelling world transport. Like other modes, maritime transport relies heavily on

    oil for propulsion and, in view of limitations imposed by existing technology and costs is not

    yet in a position to adopt effective energy substitutes (e.g. biofuels, solar and wind). At the

    same time, fossil fuel reserves are finite, oil extraction is becoming increasingly costly and oil

    production overall is believed to either already have peaked or to reach its maximum level

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    soon The dependency of the maritime transport sector on a source of energy that is becoming

    increasingly scarce and more costly to produce, compounded by limited prospects, at least in

    the short term, for using alternative energy may entail some serious implications for the cost

    of maritime transport services With over 80 per cent of the volume of global merchandise

    trade being carried by sea the question of how changes in oil prices affect ocean shipping

    rates is of considerable relevance and as an International Transport Logistics strategist how

    will you gear your organization for such challenges.