You are on page 1of 7


hree channels are discussed to help under- (2) Payment for goods
stand international marketing and (3) Legal title to the goods
distribution better. (4) Responsibility for:
● insuring the goods
● paying for transporting the goods
● controlling — or caring for — the goods (in the
case, say, of livestock).

International Transfer of these can be expressed in terms of calendar

time or geographic location or on completion of an event.
One must:

Logistics ● think in terms of both time and location;

● know when and where to assume or relinquish
responsibility and control;

Channels ● mesh perfectly with the other party.

A list of different locations or stages for quoting a price
to an overseas buyer could include when:
(1) at seller's dock (known as ex-works);
Donald F. Wood (2) at seller's dock, packaged for export;
(3) loaded aboard surface carrier that will take it to
port or airport of export;
(4) delivered alongside exporting ship (known as FAS);
(5) crossed ocean and unloaded at port or airport of
import (C & F means cost andfreightcharges to
this point; CIF means cost,freight,and insurance
Introduction changes to this point);
Channels are networks and are used to explain the (6) passed through customs and other inspections;
functioning of marketing arrangements. The transaction
channel handles contracting and trading; and the (7) delivered to importer's receiving dock.
distribution channel deals with the physical movement of The parties are sometimes not free to contract the terms
product. The channels are separatedfromeach other, i.e. to suit their needs. Often governments "pressure" their
a firm may locate sales offices in a different set of cities own firms to insist on terms which result in more of the
from where it locates distribution warehouses. However, services associated with moving the products being
the channels are linked to the extent that sales or performed by firms of that nation. The reason is to
payments "trigger" the release of goods to the buyer. conserve that nation's own currency and improve its
This article adapts and expands this approach in an attempt balance of payments position.
to understand better international logistics operations.
Many terms of payment are used. Since there is no
We will discuss three channels: the transaction channel, universally accepted international equivalent of our uniform
the distribution channel, and the documentation/ commercial code, the seller must take precautions to
communications channel. We shall also mention the role ensure that the payment is received. Sometimes, making
of intermediaries who help the channels operate better. payment is beyond the control of the buyer; the buyer's
government may ban the outward flow of currency.
The International Transaction Channel The most common payment device used is the irrevocable
Choosing the terms of sale within the international letter of credit, an escrow-like agreement between the
transaction channel involves looking at the distribution buyer's bank and the seller's bank to guarantee payment
channel and determining when and/or where to transfer provided the seller meets specified terms. Letters of credit
between buyer and seller: must be perfect; if not the bank may refuse to pay. In 1980
there was a story about a sunspot (a dark spot on the
(1) The physical goods sun linked to disturbances in the earth's magnetic field)
that may have caused an extra "L" to creep into a telexed
Received June 1990 message involving the letter of credit associated with a
Revised August and November 1990 shipment of watches. The buyer's bank refused to pay
4 IJPD &LM20,9

because of the extra L. "Ordinarily,...the buyer condensation, the rigours of an ocean voyage or having
authorizes payment despite such insignificant mistakes. to lie outside, exposed for long periods of time while
(A spokesman for the importer said) the watches arrived awaiting inspections. Large exporters employ experienced
too late (i.e. after the Christmas sales period) and were personnel for packing their export shipments, or private
useless"[1], packers travel to the exporter's loading dock or to a cargo
consolidation point. Or there may be an additional node
From a logistics standpoint, the letter of credit's wording or loop in the channel since the cargo may move to their
controls the shipment's movement, specifying ports (and, shops for packaging. Some export packers have rail tracks
sometimes, carriers), departure dates and labelling. If through their building and the exporter sends them the
changes are to be made both the buyer and seller must cargo using a switch engine; the packer packs and labels
agree and the letter of credit must be amended through the cargo and ships it to the port terminal for export.
the two banks. The risk is that the market value of the
product may have changed since the orginal agreement,
and one party may want to renegotiate the price.

For international shipments, one needs insurance. The Goods must be labelled
firm providing the insurance influences channel decisions
since it will quote higher premiums for what it believes so that they can be handled
are less safe alternatives. in the distribution
There is one further difference between international and channel
domestic transaction channels and that deals with relative
fluctuations in currencies of both the buyer's and seller's Goods, or their packing, must be labelled so that they
nations. These fluctuations are also in the price of the can be handled in the distribution channel and also be
goods and of most of the logistical services. Today, on presented for retail sale in the country of import. This
shipments from the US to Japan there is a currency involves use of other languages and metric measurements.
adjustment surcharge because it takes more US dollars Sometimes there are labelling requirements in addition
to purchase the yen to pay port charges in Japan. Rates to those imposed by the importing nation. Goods sold in
for transport are given in terms of currency of both the Quebec must be labelled in French, and this is a Provincial
exporting and importing nations. In real terms they may requirement; it has nothing to do with having goods
differ and this might influence the terms of sale with imported into Canada. Sometimes goods are labelled as
respect to which party "pays" the carrier. "for export" products, to discourage their grey market
sales, as mentioned above. Once goods are labelled, they
Other factors result in more complicated international sales are less interchangeable in the inventory.
arrangements or routeings. "Grey" markets are for goods
made in nation A and orginally shipped to contract Pre-shipment inspections are imposed by about 25 Third
distributors in nation B. However, the distributor in nation World nations which are short of hard currency, and have
B may decide either to ship the goods back to nation A problems with illegal flights of currency. In 1965, the
for sale or ship to a third nation, in either event cutting African republic of Zaire felt that some importers:
into the markets of regular distributors. The US and other ...eager to get money out of a country with a treacherous
nations have controls banning the export of specific currency exchange, would over-invoice and end up collecting
products to certain nations, or quotas that limit imports more than the value of what was being sold. Or, to avoid heavy
from certain nations. These controls are circumvented by import duties, an importer might under-invoice the cost of the
having the goods sold (and shipped) via circuitous goods. (The seller would then transfer excess funds to the
channels. buyer's account in another country.)[3, p. 12].
A number of nations now use the pre-inspection service
and US exporters complain: "You'd better add $500 to
The International Distribution Channel your quote and five weeks more lead time if you're
Many of the steps in the international distribution channel shipping to a country that employs a pre-inspection
steps are complicated and costly. "William C. Copacina service"[3, p. 11].
(manager of Arthur D. Little's logistics and manufacturing
group) estimates that international logistics costs range Choice of Transport Mode and Route
from 25-35 per cent of a product's sales value. This is When shipping to Canada or Mexico, one has as wide a
opposed to 8-10 per cent for domestic shipment"[2, p. choice of modes as exist for domestic movements. To
101]. reach other markets, one uses sea or air. Aside from
physical considerations, such as perishability or time
Protective packing is an early step. When goods move sensitivity, value per unit of weight is the usual
internationally, additional problems can be caused by determinant for use of air freight. For example, of the US

exports to Japan in 1985, 55 per cent of those worth more unloaders' conveyor belt systems, the Canadian and
than $16 per kilogram moved by air compared with only American coal is blended as it is being discharged into the
3 per cent of those worth between $1 and $2 per ocean vessel so as to meet the specifications of the Japanese
kilogram[4]. Air freight reduces the length of time one's steel mills[6, p. 68].
money is invested in inventory. There are various levels Blending of products is sometimes used to work around
of air service, ocean service, or combined air/ocean an importing nations's tariff specifications.
service that provide a range of delivery times. Once the
transport type is selected, this influences the route, carrier There are influences on the choice of port or airport of
and type of packaging. import. There must be Customs inspections services
available. Several years ago, during a trade disagreement
Because of the long length of time that products are with Japan, France insisted that all Japanese electronics
moving in the international distribution channel it is products be funnelled through an obscure French customs
conceivable that priorities change while the goods are en post, which delayed the movement until after the
route. This can be accommodated. Burroughs receives Christmas market had passed. In late 1989, Customs
materials from the Far East. As containers are loaded in inspectors in Southern California were overloaded with
Asia, information is sent electronically to the US regarding work, and some cargoes diverted to other ports in order
the contents of each. Comparison is then made of to avoid the bottlenecks. If one is moving hazardous cargo
forthcoming needs and a priority list is established. there are many additional restrictions of routeing (as well
Incoming containers are pre-cleared with Customs and as other international requirements for labelling,
containers sorted and shipped according to the new documentation and placarding).
priority Burroughs has assigned. Four-day truck, two-day An initial consideration when using ocean liners is whether
air, or overnight Federal Express are assigned to move the shipper has signed a "conference" agreement. In
goods across the US. market areas where shipping conferences (combination
of vessel lines) are active, shippers sign "loyalty"
Choice also depends on the importance of the shipper contracts with the conference, agreeing to give them all
and the size of shipment. If one deals in shipload lots, of their business and, in return, receiving a 10-15 per cent
the ship will come to the port of one's choice. Or, one discount off published rates. For US exporters, loyalty
could charter a cargo plane. For most transactions, contracts were once more significant; today, "service"
however, one goes to the port or airport that the carrier contracts between shippers and ocean conferences relate
serves. Some ocean vessel services will call at a port "on discounts to volume. In either event, existence of a
inducement", meaning that they will stop at a non- conference contract influences choice of carrier.
scheduled port to take on or discharge a shipment above
a certain size.

There are many other concerns in selecting the port of

export. For example, in 1986 Union Carbide anticipated
a longshoremen's strike. So the company routed cargo
All international carriers
through non-ILA (a longshoremen's union) ports "to fly the flag of the nation
establish a pattern of use and acceptability with the
intention of precluding carrier's consideration of Union in which they are
Carbide's business as strike diverted". Also they signed
a service contract with a carrier which stated if there was
a strike the ship would call at specific non-ILA ports[5].
In 1990 there was an issue of overweight containers and However, there are options that make it possible for the
shippers preferred ports where adjoining highway weight shipper to escape from the obligation to use the conference
limits were not rigorously enforced. in situations where non-conference vessel operators are
offering much lower rates. Both of these involve the
Sometimes the choice of port is influenced by the desire transactions channel. The first would be that, if either the
to consolidate cargo from several ports. At Seven Islands, exporter or the importer (but not both) had a contract
Quebec, near the mouth of the St Lawrence River, Great with the conference, an option would be to select terms
Lakes self-unloaders can load coal directly into ocean of sales so that the party responsible for ocean transport
vessels. In one instance a Japanese customer loaded the was the one without the contractual obligation to use the
base of his ship with coal at Hampton Roads. At the same conference. The second option is to work through a
time, Great Lakes self-unloaders loaded with Devco coal "dummy" firm that does not have an obligation to use
at Sydney, Nova Scotia and at Lake Erie ports with the conference.
Appalachian coal. All international carriersflytheflagof the nation in which
The two self-unloaders then rendezvous with the partially they are registered. In the case of international aviation,
loaded ocean vessel at Seven Islands. Using the self- nations — through the use of bilateral agreements —
6 IJPD & LM 20,9

control the number of carriers, routes and operations "break down" ten days before Valentine's Day, for example.
between each other. Ocean commerce is freer as a vessel At the same time, it would fly a charter plane with half the
flying any flag can call at almost any port in the world. capacity of a jumbo aircraft. And that cost...twice as much
(A current exception is the Arab boycott of Israel: a vessel per kilo weight... To counter the Avianca monopoly,
cannot call both at ports of Israel and some Arab nations.) Martindale imported flowers on smaller airlines owned or
leased by Columbians living in Miami; they could avoid the
landing fee because they were Columbians[9].
The term "cargo preference" is used to describe those
rules and treaties that limit the choices shippers have in
choosing the flag of the carrier they use. When major grain Manufacturing Site Location
sales are negotiated with the Soviet Union, a common This is a complicated topic when thinking of movements
clause is that one-third is to move on US-flag vessels, one- through international channels. While the same principles
third on Russian-flag vessels and one-third on any vessel. apply as do domestically, the problem has more
In the US, cargo preference is usually interpreted to mean dimensions. Note it is also related to routeing; sites for
that 50 per cent of shipments of products supported in distribution channel activities are selected because they
one way or another by federal funds have to move on US are on trade routes. Sometimes an issue is boundaries
ships. Starting in 1989, 75 per cent of "Food for Peace" of labour union jurisdiction.
crops and grain sold under the Agriculture Department's
export promotion programme were to be shipped on US- Most readers are familiar with foreign trade zones, often
flag vessels. In 1988, Korea tried to enforce regulations known as "free ports" which are sites where materials
calling for carriage of 100 per cent of its steel exports on are stored that have not yet cleared Customs. We think
Korean-flag vessels. The US objected, and Korea lowered of them as usually located next to a seaport or airport.
the limit to 70 per cent[7]. They are used for storage, to delay paying Customs duties,
light assembly, and labelling. To the smallfirmusing them,
they definitely are an additional stop along the distribution
channel. However, for larger firms, it is possible to have
a foreign trade zone established at an inland site, so the
The geographic location location should not be considered as unique.
A large number of facilities can be found just south of the
of nodes can be explained US-Mexican border. These are maquiladora plants owned
in terms of low labour by US, Japanese, West German and other interests but
employing Mexicans at about one dollar per hour. The
costs Japanese firm Hitachi "employs 500 workers in Tijuana
to make wooden cabinets for the televisions assembled
Early in the 1980s, a worldwide code for sharing liner by its 300 workers in Anaheim... Nineteen per cent of
traffic was adopted, known as the "40/40/20 rule". It the 42,235 maquiladora employees in Tijuana work at
states that, as a principle, ocean liner traffic between Japanese-owned factories"[10]. There are now container
nations A and B shall be carried in the following trains running between Mexico and the US, and "between
proportions: 40 per cent on vessels flying nation A's flag, 600 and 700 trucks a day cross the bridges for maquiladora
40 per cent on vessels flying nation B's flag and 20 per operations in El Paso alone"[11]. What is described here
cent on vessels flying any nation's flag. In the early days is not unique to the US-Mexican border. The geographic
of the rule, nations using it found their rates went up since location of nodes in many channels can be explained in
they did not have the tonnage to carry that much traffic, terms of low labour costs.
and little was done to implement the code. However, in
late 1988, it was reported that:
Nigerian officials want to use their right to carry 40 per cent
not actually tofillNigerian ships but to sell thatrightto other
carriers. They would, in effect, put their Liner Code share Documentation flows are
on the open market for bidding by shipping companies[8]. as much a part of the main
Here is an example of flag preference being enforced
through airport user fees:
logistical flow as flows
Air carrier monopoly is the greatest problem flower
of product
importers face, according to Christine Martindale, Esprit-
Miami's president. For a long time, the Columbians wouldn't
grant landingrightsto US airlines unless they paid a landing There are other reasons for choosing sites or nodes:
fee of $10,000. Avianca Airlines, the national air carrier of Marco Polo Associates of San Francisco, which has built
Columbia, had a monopoly on carryingflowers.Anytime it a million-dollar scarf business buying raw silk in China,
got upset with theflowergrowers, its planes would suddenly weaving it in Korea, pattern-printing it in Italy, stitching

it in France and marketing it in the United States, Eastern ● ask vessel schedules;
Europe and elsewhere. A key to (the firm's) suc­ ● book space;
cess...was setting up a complicated import-export plan
that routed a scarf through as many as four countries before ● make queries about information on specific bills of
it was marketed — as opposed to the more traditional route lading;
of directly from a single producer country to a single ● "telex" queries to other Sea-Land offices; and
consumer country[12]. The manufacturer felt that there ● learn cargo availability (imports)[16].
were marketing advantages from being able to state that
these were French scarves made from Chinese silk. EDI interchanges between Customs and its clients are also
being developed. One recent study, performed for the US
Customs Service, indicated that: "concern over inventory
The Documentation/Communications Channel costs dictated the extent to which importers themselves
depend upon electronic interaction" with Customs[17].
Gray and Davies used the expression "international
logistics" to mean "a system in which documentation flows
are as much a part of the main logistical flow as flows of
product"[13]. Usually about ten documents are required Logistics Intermediaries
for an export shipment; the number can run to over 100. Intermediaries, or middlemen, are well-known in channel
Assembling all the documents is a major logistical exercise literature. They arise "in the process of exchange because
in itself. Nearly all of the documents must be ready at they can improve the efficiency of the process" [18, p. 5].
the port of export; all are required at the point of import. They abound in foreign trade, with the most widely known
One could develop documentation channels for any product intermediary being the freight forwarder. In a study of US
and this channel would have linkages with both the firms engaged in international sourcing:
transactions and distribution channels.
Respondents reported that logistics management for well
over half of all foreign-sourced materials and products was
handled outside the corporate logistics function, primarily
because corporate logistics managers were believed to lack
expertise about international logistics operations[19].
Some ocean carriers allow
Listing and discussing all the international logistics
cargo to be booked intermediaries would form another article. Banks and
by computer export packers have already been mentioned. Freight
forwarders and non-vessel-operating common carriers
(NVOCCs) handle many of the exporter's traffic
In US foreign trade the average cost of processing a single management and movement practices. Other
set of documents for a shipment of goods in 1982 was intermediaries deal with activities such as currency
$395[14]. hedging, market intelligence and overseas advertising. The
functions of only one form will be described to give an
The direct cost per consignment, due to documentation for idea as to the degree of specialisation: the services for
an exporter not employing one or more of the various distributing periodicals in other nations. KLM, the Dutch
systems available to aid the management of export airline, has a publications distribution service that includes
administration, can be estimated by using the formula:
current retail price index x 0.23[15]. wrapping, destination sorting, addressing and database
management for magazines. Also handled are the business
From these examples, we can see that documentation is reply mail and collections of subscription payments in local
a major cost item. Interestingly, some of the overnight currency. The magazines move across the ocean by air
express services handling international shipments now and are then given to post offices for local delivery[20].
advertise that they will assume many of the shipper's Virgin Atlantic Airways provides a similar service. "Virgin
documentation burdens. International Print Distribution is the airline's service for
globally distributing trade and technical magazines,
Communications are obviously more complex, although publications and journals, books, corporate mail and direct
EDI is being used for buyer-seller, and shipper-forwarder- promotional mailings"[21]. Sometimes the wrapping and
carrier linkages. Some ocean carriers allow cargo to be labelling is done in the country of destination to save the
booked by computer. Sea-Land allows shippers direct weight of wrapping materials going by air.
access to its computer network. The customer can bypass
a Sea-Land customer service representative and, by using
a telephone hook-up, personal computer and Sea-Land-
provided software, can: Friction and Fraud in the Distribution Channel
To this point, the discussion has dealt with the positive
● perform cargo tracking; forces and activities which co-ordinate to move products
● learn shipment status; forward to the buyers. Within channels — whether
8 IJPD & LM 20,9

domestic or international — there are points of friction. charts were constructed for the export process in the early
These are often addressed by some combination of adding 1970s[24]. Over the years, commercial software has been
inventory as a cushion, lengthening lead times, or developed to assist those managing international
improving communication. transactions and shipments; so, in a sense, computers are
integrating the various international logistics channels.
In addition to friction, there is fraud and theft. Outside By way of example, at the Council of Logistics
parties examine the long links of others' overseas Management's 1988 meeting, Clayton et al. presented an
distribution channels, searching for vulnerable spots where example of applying an integrated systems approach to
they might be attacked or robbed. While it is not unknown international transactions[25]. The system described was
in domestic channels, it is worth mentioning for anyone for Unisys Corporation, and is probably typical of
interested in how international channels function, or sophisticated programmes in use. Once an order is
malfunction. Anyone designing a channel must be aware received it is validated and a decision is made whether
of these hazards and make certain that the channel is applicable export licenses allow the product to be shipped.
sufficiently strong. The order is then transmitted either to a factory for
production or to a warehouse for shipment. Commercial
invoices, and duty drawback requests are prepared as are
the documents needed to transfer title to the goods at
the appropriate site or time. Transport routeing is
Terrorism aimed at airlines determined as carrier and customs documents are also
is an ongoing problem of
great concern
Terrorism aimed at airlines is an ongoing problem of great
The complexities of
concern. Without belittling the tragedy of losing lives, international logistics
there are also disruptions in movement of cargo and mail.
Sometimes terrorists sabotage products, with a 1989 channels can be viewed as
example being cyanide placed into Chilean grapes[22].
both a problem and an
Most common hazards are to vessels. Best-known are opportunity
the attacks in the Persian Gulf which occurred during the
hostilities between Iran and Iraq. There is still piracy, both Despite the advances of computer modelling, it must be
actual and "paper work". In 1985, approximately 20 recognised that the distribution channels are still very
attacks on merchant vessels occurred in West Africa. complex. Our discussion confirmed the Stern and El-
Targets were usually European roll-on/roll-off and container Ansary statement that:
vessels. The ships were attacked "by gangs of up to 30
men armed with knives, and many with guns" [6, p. 74]. Explanations of channel structure in terms of economic
variables alone are obviously insufficient, even though such
In 1990 there were reported attacks on ships calling at economic models provide an appropriate starting point for
Ethiopia. "Paper work" piracy involves the use of phoney understanding why specific structures emerge. The
cargoes or phoney vessels which "disappear" at sea. necessity for going beyond economic variables is made
Cargo theft is common. especially clear when one attempts to answer the question
of why uneconomic channel structures persist over time[18,
The Octonia Sun was fitted with a special pipe — known p. 26].
on board as "the thief" — that connected one of the ship's
cargo lines to a fuel line[23, p. 1]. Some companies...maintain Conclusions
blacklists of tanker operators they consider disreputable...
The blacklisted operators stay in business by submitting low Three channels have been discussed. The decisions
bids for their services, attracting clients who factor agreed to in the transaction channel influence, if not
anticipated theft into their costs[23, p. 26]. control, the movement of product in the distribution
channel. Documenting international movements is so
This is a form of designed shrinkage in a logistics system. complex that it deserves to be considered as a separate
channel. In some instances, the complexities and costs
associated with documentation are greater than those
Integrating the Channels associated with movement of the physical product.
We have treated the transaction, distribution and Because of the complexities of many international
documentation channels as separate while acknowledging transactions, numerous middlemen or third parties exist,
that they need co-ordination. Computer modelling has making their living by helping the users find short-cuts
been used to arrange all the flows in some order. PERT in time or savings in money. Goods moving through

cumbersome international channels are often targets for 4. International Commodity-Flow Analysis, Boeing, Seattle,
theft and terrorism and special precautions are often 1986, p. 21.
needed. 5. American Shipper, July 1986, p. 14.
The complexities of international logistics channels can 6. American Shipper, December, 1986, p. 68.
be viewed as both a problem and an opportunity. They 7. American Shipper, September 1988, p. 32.
add to the cost of any transaction, thereby discouraging 8. American Shipper, November 1988, p. 20.
sales or even interest in developing export sales activity. 9. "The Risky Business of Transporting Perishable
They offer opportunities to third-party providers to find Commodities", Inbound Logistics, January 1987, p. 29.
and fill niches in the world of trade. 10. San Francisco Chronicle, 1 March 1988, p. A8.
11. Distribution, October 1987, p. 58.
12. San Francisco Chronicle, 1 February 1990, pp. C1, C6.
13. Cited in Davies, G.J., "The International Logistics
Channels theory could be Concept", International Journal of Physical Distribution
& Materials Management, Vol. 17 No. 2, 1987, p. 20.
applied to describe the 14. American Shipper, August 1984, p. 16.
functioning of international 15. Danes, G. and Freebury, C., "The Management of
Documentation by British Exporters", International
movements of Journal of Physical Distribution & Materials Managemen
Vol. 17 No. 6, 1987, p. 15.
products a 16. American Shipper, January 1987, p. 20.
17. American Shipper, May 1988, p. 36.
18. Stern, L.W. and El-Ansary, A.I., Marketing Channels, 3rd
This article was written in response to a challenge given ed., Prentice-Hall, Englewood Cliffs, 1988.
in 1985 that: 19. Anderson, D.L., "International Outsourcing: Radical
"International logistics lacks a theory... Thirty years after Changes Ahead for Logistics Management", Proceedings
the landmark logistics texts were written, there is still no of the Annual Conference of the Council of Logistics
textbook available to university instructors on the "Principles Management, Vol. II, 1986, p. 116.
of International Logistics"... The academic process begins 20. "From Press to Public", KLM Cargovision,
with a theory. The theory is then refined, refuted or November/December 1988, pp. 14-5.
improved by the subsequent efforts of others[2, p. 55].
21. "Virgin does Everything in International Print
The purpose of this article was to demonstrate that Distribution", Global Trade, January 1988, p. 26.
channels theory, long-practised in marketing study, could 22. Lowe, D., "Crisis Management Marketing for Tampering:
be applied to describe and understand the functioning of Strategies for International and Domestic Marketplace
international movements of products. Terrorism", San Francisco State University School of
Business Journal, Vol. 1, 1990, p. 81.
23. The Wall Street Journal, 13 October 1987.
References 24. Tatterson, J.W. and Wood, D.F., "PERT, CPM and the
1. "How a Glitch Can Ensnarl Foreign Trade", The Wall Export Process", OMEGA, The International Journal of
Street Journal, 4 November 1980. Management Science, Vol. 2 No. 3, 1974, pp. 421-6.
2. Stevens, C. (Ed.), Logistics: International Issues, 25. Clayton, B.R. et al., "International Transactions, An
Leaseway Transportation, Cleveland, 1985. Integrated Systems Approach", Proceedings of the Annual
3. Distribution, March 1987. Council ofLogistics Management, Vol. I, 1988, pp. 133-60.

Donald F. Wood is Professor of Transportation at San Francisco State University, California, USA.