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SIKKIM MANIPAL UNIVERSITY, DE

Registration No: 1302012256
Student Name: Gaurang Sharma
Subject Name: IB SPECIALIZATION

Course: MBA
LC Code: 00918
Subject Code: C E I M

Q1. What is containerisation? Describe the advantages and disadvantages of
containerization.
 Description of containerisation
 Advantages and disadvantages of containerization
Ans: Containerization is a system of intermodal freight transport using intermodal
containers (also called shipping containers and ISO containers) made of
weathering steel. The containers have standardized dimensions. They can be loaded
and unloaded, stacked, transported efficiently over long distances, and transferred
from one mode of transport to another—container ships, rail transport flatcars, and
semi-trailer trucks—without being opened. The handling system is completely
mechanized so that all handling is done with cranes and special forklift trucks. All
containers are numbered and tracked using computerized systems.
The system, developed after World War II, dramatically reduced transport costs,
supported the post-war boom in international trade, and was a major element in
globalization. Containerization did away with the manual sorting of most shipments
and the need for warehousing. It displaced many thousands of dock workers who
formerly handled break bulk cargo. Containerization also reduced congestion in
ports, significantly shortened shipping time and reduced losses from damage and
theft
Advantages and Drawbacks of ContainerizationEven if containerization conveys
numerous advantages to freight distribution, it does not come without challenges.
The main advantages of containerization are:

Standardization. Standard transport product that can be handled anywhere
in the world (ISO standard) through specialized modes (ships, trucks, barges
and wagons) and equipment. Each container has an unique identification
number and a size type code.

Flexibility. Can be used to carry a wide variety of goods such as commodities
(coal, wheat), manufactured goods, cars, refrigerated (perishable) goods.
Adapted containers for dry cargo, liquids (oil and chemical products) and
refrigerated cargo. Reuse of discarded containers.

Costs. Lower transport costs due to the advantages of standardization. Low
transport costs; 20 times less than bulk transport. Economies of scale at
modes and terminals.

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rail access). The container is its own warehouse. move to urban periphery.  Illicit trade. Port turnaround times reduced from 3 weeks to about 24 hours. a container takes the same amount of space. Reduced spoilage and losses (theft).  Capital intensiveness. Containerships are faster than regular freighter ships.000 containers are lost at sea each year (fall overboard). warehousing facilities. High value goods and a load unit that can forcefully opened or carried (on truck). Stacking capacity on ships. Large consumption of terminal space (mostly for storage). Simpler and less expensive packaging. but this advantage is undermined by slow steaming. Instrument used in the illicit trade of goods. are important capital investments. Many containers are moved empty (20% of all flows). DE  Velocity. both on the ground and on modes (containerships and double-stack trains). drugs and weapons. Restacking difficult to avoid and incur additional costs and time for terminal operators. The main drawbacks of containerization are:  Site constrains. Complexity of arrangement of containers.  Warehousing. Draft issues with larger containerships. Contents of the container is unknown to carriers. Can only be opened at the origin (seller). About 10.  Repositioning. Vulnerability between terminal and final destination. Container handling infrastructures and equipment (giant cranes. at customs and at the destination (buyer). A large postpanamax containerships requires a draft of at least 13 meters.  Theft and losses.  Security and safety.SIKKIM MANIPAL UNIVERSITY. inland road.  Stacking. as well as for illegal immigration. Concerns about the usage of containers for terrorism. trains (doublestacking) and on the ground (container yards). Either full or empty. 2 . Divergence between production and consumption at the global level requires the repositioning of containerized assets over long distances (transoceanic). Transshipment operations are minimal and rapid.

Served from India scheme 7. Vishesh Krishi Upaj Yojana The Government has formulated a number of export promotion schemes to support and promote exports.SIKKIM MANIPAL UNIVERSITY. Duty Free Replenishment Certificate (DFRC) scheme 3. List out the various export promotion schemes currently available to exporters. Except for Duty Drawback Scheme. Export Promotion Capital Goods (EPCG) scheme 5. Duty drawback scheme 4. Target Plus scheme 8. Export Oriented Units (EOUs). the government is committed to providing a stimulus to exports through various export promotion schemes from time to time. Software Technology Parks (STPs) scheme 6. a) List of various export promotion schemes b) Description of MDA Ans: a) List of various export promotion schemes: To achieve the objectives laid down under the Foreign Trade Policy 2004-09 and double India’s percentage share of global merchandise trade by the year 2009. Explain MDA in detail. Advance licensing scheme 2. Details of the existing Export Promotion Schemes are as follows: 1. DE Q2. Electronics Hardware Technology Parks (EHTPs). the policy framework for 3 . Duty Entitlement Pass Book (DEPB) Scheme 9.

DE various export promotion schemes is laid down in the Foreign Trade Policy 2004-09. VoI-I 2004-09. The Drawback Scheme intends to neutralize the incidence of central taxes paid on inputs used in the manufacture of export goods. design. MDA derives its three primary goals from this idea: portability.SIKKIM MANIPAL UNIVERSITY. This separation of business functionality from computing technology and methodology preserves a company’s core software assets in the constantlychanging world of information technology. there are other schemes in operation which are basically in the nature of reward schemes to reward high performing exporters. construction. DEPB allows drawback of import charges on inputs used in the export product. choosing a particular platform for the system. Duty exemption schemes enable duty-free import of inputs required for export production. Besides.” An MDA approach starts with the well-known and long established idea of separating the specification of the business functionality of a system from the details of the way that system uses the capabilities of its underlying platform technology to achieve that functionality. and 4 . Rewards are given on the basis of incremental exports / export turnover and such rewards have no linkage whatsoever with the duties and taxes borne on export goods.MDA provides an approach for. whereas the procedures governing the schemes are detailed in the Handbook of Procedures. specifying platforms. An Advance Licence is issued as a duty exemption scheme. The Department of Revenue has issued notifications to operationalise the scheme. Served from India and Vishesh Krishi Upaj Yojana are reward schemes. The objectives of most schemes are to neutralize the incidences of levies and duties on inputs used in export products. (b) DEPB Scheme and Drawback. Presently. and enables tools to be provided for:    specifying a system independently of the platform that supports it. based on the fundamental principle that duties and levies should not be exported. interoperability and reusability through architectural separation of concerns. Target Plus.” An MDA approach is independent of development methodologies as well as technology. maintenance and modification. A Duty Remission Scheme enables post export replenishment / remission of duty on inputs used in the export product. It is model-driven because it provides a means for using models to direct the course of understanding. deployment. DFRC permits duty-free replenishment of inputs used in the export product. which increases the power of models in that work. operation. b) Description of MDA: “MDA is an approach to system development. Duty remission schemes consist of (a) DFRC. the major schemes are either duty exemption or duty remission schemes.

Airlines bill you by what is called a chargeable weight. you will hear that shipping by ocean is cheaper than shipping by air. If 5 . you have a budget. As a business person. While weight can factor into the price from sea carriers. Chargeable weight is calculated from a combination of the weight and size of a shipment. Q3. you’re going to want to know which will cost you less. This is achieved through MDA’s extensive use of modeling and abstraction. Sea carriers charge per container rates for shipping in standard containers (20’ and 40’ being the most common sizes).  Comparison of air and sea freight  Air Way Bill and its use Ans: Comparison of air and sea freight: 1. DE  transforming the system specification into one for a particular platform. it helps to be educated about how carriers charge for international shipping. their charge tends to be based more on the size of a shipment. To make the best decision. you consider the bottom line and as an individual. air freight or ocean freight. What are the advantages and disadvantages of air freight as compared to sea freight? Describe Air Way Bill and its use. Naturally. Cost You probably don’t have to be told to consider the costs before an undertaking. Typically.SIKKIM MANIPAL UNIVERSITY.

How does ocean freight and air freight stack up against each other in this category? Air freight shipping has a much. it is often much cheaper to ship by sea. this factor could more than make up for a higher cost of flying cargo. For most business shipping. it is often good to have the extra time to prepare for the arrival of household goods in a new country. Ships are getting faster. Environmental Impact Not everything is about the bottom line and convenience. Reliability Reliability is something we all look for in people. products. Flights get delayed by weather and other factors. there are usually daily flights back and forth between major cities around the world. much shorter history than ocean freight shipping. we all have a responsibility of taking care of the planet on which we live. While the social awareness of environmental issues can change the way the public looks at a company and affect its bottom line. It would seem that ocean freight wins this category. Many sea shipments can take around a month to arrive while an air shipment takes a day or two. There are many ocean freight shipments crossing the oceans and being delivered in as few as 8 days. As a shipment gets smaller. the margin between the prices gets smaller and sometimes air will even end up less expensive. but airlines tend to be very on top of their schedules. With larger and heavier shipments. It is not uncommon for ships to be off schedule. Missing the cutoff at a seaport means a longer delay. Ocean lines tend to have weekly schedules. 3.SIKKIM MANIPAL UNIVERSITY. the warehousing fees at seaports are many times more expensive than those at airports. When it comes to the individual moving a household. a day or two here or there doesn’t hurt. your price is often determined by cubic meter. a day or two could have serious cost effects. Speed When it comes to speed. Shippers should note that there are destination charges to consider. This causes 6 . businesses. and services. there will be customs and destination fees. Since time is money. there is no question that air freight is usually much faster. however. While the actual shipment cost of sea freight is usually cheaper than the shipment cost of air freight. Because of this. For many. 4. faster is better. With airlines. Canals have created shorter shipping routes. Whether shipping by air or by sea. for many businesses. It should be noted that technology keeps moving forward in the international shipping world. Ocean carriers are notorious for being bad about this. CO2 emissions are much higher in air freight transport than ocean freight transport. 2. yet air freight tends to win the battle of reliability. missing a flight doesn’t cause much of a delay for a cargo shipment. DE you are shipping less than a container load.

By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued. Air Way Bill and its use: The air waybill is the most important document issued by a carrier either directly or through its authorised agent. The last digit is what is called the check digit. coloured Blue. The first original. The number consists of:  1. check the status of delivery.  Description of requirement of cushioning materials  Main types of cushioning materials used and their application Ans: Description of requirement of cushioning materials: Cushioning materials must in particular fulfill four main requirements: 7 . It is a non-negotiable transport document. coloured Pink. The second. The remainder becomes the check digit. is the Issuing Carrier's copy. is the Shipper's copy. It covers transport of cargo from airport to airport. That is why no AWB number ends with a figure greater than 6. The next seven digits are the running number/s . The other three copies are white. The first three copies are classified as originals. It is arrived at in the following manner: The seven digit running numbers are divided by 7. Describe the main types of cushioning materials used and their application. considering oil spills and the water ecosystems affected by ocean freight.  2. Q4. by using a long division calculation. Air waybills have eleven digit numbers which can be used to make bookings. Green in colour. so from the prefix we know which airline has issued the document. Air waybills are issued in 8 sets of different colours.SIKKIM MANIPAL UNIVERSITY. gives pause. However. Explain the requirement of cushioning materials in export packaging. Perhaps the jury is still out on this final factor. or proof of delivery.one number for each consignment  3. and current position of the shipment. is the Consignee's Copy. A fourth Brown copy acts as the Delivery Receipt. Each airline has been assigned a 3-digit number by IATA. DE cargo shipping by air to have a much larger carbon fingerprint than cargo shipping by sea. The third. The first three digits are the airline prefix.

the braking distance declines on constant exposure to stress. such that the resultant kinetic energy can no longer adequately be absorbed and the package contents may be damaged. such as moisture due to elevated relative humidity. They will often retrofit their factory-built saddles with SunMate and 8 . which could contribute towards corrosion. SunMate is often used in wheelchair cushions to distribute weight evenly and alleviate pressure on ischial tuberosities or coccyx vertebrae. Use of the cushioning material should be effective. Liquid SunMate Foamin-Place Seating is used to create custom-molded wheelchair inserts for clients with complex contours and more fixed support requirements. a SunMate-Pudgee combination cushion. If recovery is too low. The cushioning material and package contents should not interact and possibly impair each other's properties. it is important that the cushioning materials are not hygroscopic and consequently do not promote corrosion. direct solar radiation and extreme variations in temperature and their action must not be impaired by such exposure. it ensures that the package contents continue to be protected even when repeatedly subjected to similar stresses. our firmest SunMate formulation. they can be used for many different types of applications in many different disciplines. Especially in the case of package contents which are at risk of corrosion. Motorcycle No one is more enthusiastic about SunMate and Pudgee cushion materials than motorcyclists. They should furthermore not contain any aggressive constituents (neutral pH). Aircraft Laminar. Pilot seats are built with softer layers of SunMate or Pudgee on top of the crash protection layer for added comfort and support. environmentally compatible and cost-effective. Some of the more common uses of our materials include: Medical Dynamic Systems' cushions are used throughout the healthcare industry. Pudgee is a gel foam used to prevent or aid the healing process for bed sores and decubitus ulcers. Main types of cushioning materials used and their application: Dynamic Systems manufactures specialty cushion materials that are so versatile. provides the ultimate in seating comfort for those who have to sit long-term. T50E. Cushioning materials must be insensitive to climatic conditions. is often used as a crash protection or energy absorption layer in ejection seats.SIKKIM MANIPAL UNIVERSITY. simple. It has excellent vibration and impact absorption properties. DE Recovery is one of the most important properties of a cushioning material.

transport details. A prospective overseas client has shown interest in your products. Write a letter making a firm offer mentioning all relevant facts regarding product features.? Assume all relevant details about the product and the client. payment terms.. The special nature of these materials has also earned them inclusion in exhibitions in some of the most prestigious museums and galleries in the world. Custom SunMate. Pudgee and FIPS are often used with horses and other animals to improve their quality of life. SunMate is a favorite material for use as saddle shims to balance saddle-fit or as impact absorbing inserts in saddle pads for horses. from unsolicited order filling to deliberate export planning. and T50E have been used in a myriad of other custom applications. delivery schedules. a marketing mix decision. DE Pudgee so they can travel in comfort without the fatigue caused by long hours on the road and prolonged vibrations. both supply customers with products manufactured outside the country. FIPS. packaging etc. innovators and engineers. these specialty cushion materials appeal to creative individuals like architects. Equine & Veterinary SunMate. Racing & Sports SunMate is used in a variety of sports applications. Export marketing requires a knowledge of the target market. Due to their unusual texture and other physical and technical properties. Liquid SunMate can be used to fashion specially-molded cushion parts and custom prosthetics for animals with limb injurues. Its excellent performance in impact testing has qualified it as one of only a few FIA-approved cushion materials for use in Formula One headrest design.SIKKIM MANIPAL UNIVERSITY. Ergonomic seating designed SunMate and Pudgee improves operator comfort and health. planning. as well as drivers of a number of competitive sports vehicles. Mining and Heavy Equipment SunMate and Pudgee cushions have been studied by outside parties and proven to excel or surpass other cushion materials with their ability to absorb vibrations that aggravate physiological functions. Ans: Exporting and importing are two sides of the same coin. Race car drivers. You are a merchant exporter. Q5. Pudgee. No doubt few firms will export unless 9 . insurance. industrial designers. Exporting is often an incremental process. experience better performance and handling in addition to knowing they are safer with SunMate. organisation and control and information systems. Exports now account for over 15% of global GNP and are growing at an annual compound rate in excess of 10%.

Usually the Shipping Bill is of four types and the major 10 . Some food and pharmaceutical product may require a health or sanitary certificate for export. Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. List out the Principal Export Documents along with a brief description of each of them. DE Q6. Special documents may be required depending on the type of product or destination. Certain export products may require a quality control inspection certificate from the Export Inspection Agency.  List of Principal Export Documents  Description of Principal Export Documents Ans: List of Principal Export Documents: Export procedure describes the documents required for exporting from India.SIKKIM MANIPAL UNIVERSITY.

/ c. The formats presented for the Shipping Bill are as given below   White Shipping Bill in triplicate for export of duty free of goods. total f.  Contract. quantity.  4 copies of invoices which contains all relevant particulars like number of packages. L/ C. value. unit rate. quantity. Green Shipping Bill in quadruplicate for the export of goods which are under claim for duty drawback.b.  4 copies of the packing list mentioning the contents.  Inspection/ Examination Certificate. Purchase Order of the overseas buyer.  Blue Shipping Bill in 7 copies for exports under the DEPB scheme 11 . correct & full description of goods etc.SIKKIM MANIPAL UNIVERSITY.i.  AR4 (both original and duplicate) and invoice.  Yellow Shipping Bill in triplicate for the export of dutiable goods.f.o. DE distinction lies with regard to the goods being subject to certain conditions which are mentioned below:  Export duty/ cess  Free of duty/ cess  Entitlement of duty drawback  Entitlement of credit of duty under DEPB Scheme  Re-export of imported goods The following are the export documents required for the processing of the Shipping Bill:  GR forms (in duplicate) for shipment to all the countries. gross and net weight of each package.

The American Lumber Standard Committee (ALSC) and the National Wooden Pallet and Container Association (NWPCA) provide phytosanitary certification for wood packaging materials (WPM). The IPPC is an international treaty to secure action to prevent the spread and introduction of pests of plants and plant products. copies are available from the destination country's embassy or consulate in the U.SIKKIM MANIPAL UNIVERSITY. and value of the shipment. consignee. DE EXPORT-RELATED DOCUMENTS Consular Invoice Required in some countries. APHIS will issue a phytosanitary certificate for wood package materials only if WPM are the cargo. Canadian Customs Invoice Although not required by regulation. The cost for this documentation can be significant and should be discussed with the buyer. It is issued in Canadian dollars for dutiable and taxable exports exceeding $1600 Canadian dollars. Import License Import licenses are the responsibility of the importer and vary depending upon destination and product. a consular invoice describes the shipment of goods and shows information such as the consignor. and to promote appropriate measures for their control. this customs invoice is a preferred document by Canadian Customs and customs brokers. including a copy of an import license with the rest of your documentation may in some cases help avoid problems with customs in the destination country. Detailed invoice requirements can be obtained at the Canadian Customs website. If required. However.S. ISPM 15 (Wood Packaging) Marking The International Standards for Phytosanitary Measures Guidelines for Regulating Wood Packaging Material in International Trade (ISPM15) is one of several International Standards for Phytosanitary Measures adopted by the International Plant Protection Convention (IPPC). Dock Receipt and Warehouse Receipt A dock receipt and warehouse receipt are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the ship line for export. Shipper’s Letter of Instruction 12 .

13 .SIKKIM MANIPAL UNIVERSITY. DE The shipper’s letter of instruction is issued by the exporter to the forwarding agent and includes shipping instructions for air or ocean shipment.