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CONTENT

TRANSPORTATION MODE.1
SEA TRANSPORTATION
WHY CHOOSE SEA TRANSPORTATION

LOGISTICS ACTIVITIES (FLOW).. 4


EXPLANATION OF THE ACTIVITIES

RELATED DOCUMENTS. 8
DOCUMENTS RELATED TO GOODS
DOCUMENTS RELATED TO SHIPMENT
DOCUMENTS RELATED TO PAYMENT

REFERENCES... 11

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TRANSPORTATION MODE
SEA TRANSPORTATION

For the arrange a shipment of 2000 pallets


(1m x 1m x 1m) from Tanjung Pelepas
Johor Bharu to Amsterdam, Matsushita
Electronics (M) BHD will use the water
transportation or called as sea port for
export the pallets. Sea freight means
shipping

services

through

shipping

industries. The cargo or the goods that are


shipping will be transported from one
country to the other by sea. Sea freight
takes much longer time than air freight.
Water transport is the process of transport that a watercraft, such as a barge, boat, ship
or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If a
boat or other vessel can successfully pass through a waterway it is known as a
navigable waterway. The need for buoyancy unites watercraft, and makes the hull a
dominant aspect of its construction, maintenance and appearance. When a boat is
floating on the water the hull of the boat is pushing aside water where the hull now is,
this is known as displacement.
The characteristic of sea transportation is providing a relatively low cost transport
solution. Besides that, Lower cost rather than airfreight or inland transport and using
container will be less costing. Lastly, the characteristics of sea transportation is Low
rates but long transit times and Low accessibility but high capability

WHY CHOOSE SEA TRANSPORTATION?


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TRANSPORTATION SELECTION DECISION


Matsushita Electronics (M) BHD choose transportation for the shipment activities is
besides the cost, time, type of transportation that the characteristics and the advantages
of the mode transport. Effective logistics management has been recognized as a key
opportunity to improve both the profitability and competitive performance of company.
Logistics is concern with demand satisfaction, whereas marketing seeks to create
demand. The Transportation and Total Logistics relationship is the main point for our
company do the decision for choose sea transportation in this shipment. Firms need to
recognize that the lowest cost carrier does not necessarily guarantee that this carrier
will result in the lowest landed cost. Therefore, firms need to keep the big picture in
mind when attempting to select a carrier. Because of choose sea transportation Suitable
for bulk cargo, Easy to bring large scale of cargo, Maintain delivery, Maintain quality of
the cargo and Reduce of internal thief.

ADVANTAGES OF SEA TRANSPORATION


It is a relatively economical mode of transport for bulky and heavy goods.

It is a safe mode of transport with respect


to occurrence of accidents.

The cost of maintaining and constructing


routes is very low most of them are
naturally made.
It promotes international trade.
Ideal for transporting heavy and bulky
goods
Suitable for products with long lead times
Cheap for large volumes

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LOGISTICS ACTIVITIES (FLOW) INVOLVED IN THE MOVEMENT OF


2000 PALLETS.

PRODUCTI
ON
COMPANY
PRODUCE
THE
PALLETS

SHIPPING

STORAGE
/ PORT
WAREHOU
SE

CUSTOM

TRANSPOR
TA-TION

STORAGE
WAREHOU
SE
CUSTOM
CLEARAN
CE
AMSTERD
AM
(BUYER)
FORWARDI
NG AGENT

TRANSPOR
TA-TION

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LOGISTICS ACTIVITIES INVOLVED IN THE MOVEMENT OF 2000 PALLETS


PRODUCTION COMPANY
Production Company in Malaysia has the order from
Amsterdam of 2000 pallets (1m x 1m x 1m). The
company will produce the pallets with follow the
customer want. Follow the size, shape, weight,
color, and design.

STORAGE WAREHOUSE
After Production Company finished the order 2000
pallets, the product will storage in warehouse. A
warehouse is a commercial building for storage of
goods. Warehouses are used by manufacturers,
importers,

exporters,

wholesalers,

transport

businesses, customs, etc. They are usually large


plain buildings in industrial areas of cities and towns
and villages. They usually have loading docks to
load and unload goods from trucks. Storage in the
warehouse before goes to the shipping process.

FORWARDING AGENT
Company will use the forwarding agent to clearance the all documents with custom.
Freight forwarding is a service used by companies that deal in international or multinational import and export. While the freight forwarder doesn't actually move the freight
itself, it acts as an intermediary between the client and various transportation services. A
freight forwarding service handles the considerable logistics of this task for the client,
relieving what would otherwise be a formidable burden.

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TRANSPORTATION
Transportation in this area will use the road
transportation for next process after forwarding agent
complete the documents then the pallets will carry to
the port for checking by the customs before go
through to the shipping area.

STORAGE IN PORT WAREHOUSE


After finish the checking and complete the all
documents at the Customs clear, the pallets will keep
storage in the warehouse at the port. This storage is
for loading area before the pallets will go in to the
vessel for the shipping process. Storage in this
warehouse is not taking a long time just less than
24hours before shipping. They usually have loading
docks to load and unload goods from trucks. Storage
in the warehouse before goes to the shipping
process.
CUSTOM CLEARANCE (MALAYSIA)
In Malaysia the Custom goods declaration forms are the prime source documents for
trade statistics generated by the importer and exporters. In this case, the forwarding
agent will give and complete the document and customs form about the product its the
2000 pallets. In detail including providing true information regarding the number,
description of packages/ crates, value weight, quantity and type of goods. This applies
for goods meant for exports as well where the final destination of the goods is notified.
Completed custom forms will need to be submitted to customs offices at the place
where the Pallets are to be exported.

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SHIPPING
After finish all the process with customs area,
the pallets will go to the vessel and take a
process. The products will save safely in the
vessel. Besides that, company must know
what types of sea freight vessel. The
intermodal

aspect

characteristic

of

the

container is useful to shippers in terms of


speed, efficiency, security and low cost.
There are two types of containerships, first
Fully Cellular containerships and Ro-ro ships.
The pallets will save in the bulk vessel and
start the shipping to Amsterdam.

CUSTOM CLEARANCE (AMSTERDAM)


In this area is same goes like in custom Malaysia. Their will check the products before
go in the country or the buyer. A customs duty is a tariff or tax on the importation
(usually) or exportation (unusually) of goods. In the custom area, as usually custom do
the work. All document about the goods thats forwarding agent carries custom must
check and details about the documents and check the pallets.

BUYER (AMSTERDAM)
Buyer will receive the products of 2000 pallets (1m x 1m x 1m) like the order before.
The buyer (company) will keep storage the pallets in their warehouse for their usage.
The all documents the buyer company will get and do the payment to Production
Company.

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RELATED DOCUMENTS
All goods meant for import and export either it is under import/export duty or otherwise
must be declared in writing in the respective forms it is customs form No 1 for imported
goods and customs form No 2 for exported goods. The other documents are Bill of
lading, Shipping Bill, Letter of credit, Airway Bill, and Bill of exchange. Declaration forms
must be filled in detail including providing true information regarding the number,
description of packages/crates, value, weight, quantity and type of goods. The origin of
the goods will also need to be informed.

Documents related to goods

Export invoice (Custom form 2)


Export invoice is a sellers bill for the
pallets

and

contains

information

about pallets such as quantity, total


value, number of packages, marks
on packing, port of destination, name
of ship, bill of lading number, terms
of

delivery

and

payments.

document used in foreign trade. It is


used

as

provided

customs

by

the

declaration
person

or

corporation that is exporting an item


across international borders. These
invoices

are

often

used

by

governments to determine the true


value of goods when assessing
customs duties.

Documents related to shipment


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Shipping Bill
The shipping bill is the main document on the basis of which customs office
grants permission for the export. The shipping bill contains particulars of the
goods being exported, the name of the vessel, the port at which goods are to be
discharged, country of final destination, exporter's name and address and more
information about the goods

Bill of lading
Bill of lading is a document wherein
a shipping company gives its official
receipt of the goods put on board its
vessel and at the same time gives
an undertaking to carry them to the
port of destination. It is also a
document of title to the goods and
as such is freely transferable by the
endorsement and delivery.

Airway Bill
Like a bill of lading, an airway bill is
a document wherein an airline company gives its official receipt of the goods on
board its aircraft and at the same time gives an undertaking to carry them to the
port of destination. It is also a document of title to the goods and as such is freely
transferable by the endorsement and delivery.

Documents related to payment

Letter of credit
A letter of credit is a guarantee issued by the importer's bank that it will honor up
to a certain amount the payment of export bills to the bank of the exporter. Letter
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of credit is the most appropriate and secure method of payment adopted to settle
international transactions

Bill of exchange
It is a written instrument whereby the person issuing the instrument directs the
other party to pay a specified amount to a certain person or the bearer of the
instrument. In the context of an export-import transaction, bill of exchange is
drawn by exporter on the importer asking the latter to pay a certain amount to a
certain person or the bearer of the bill of exchange. The documents giving title to
the export consignment are passed on to the importer only when the importer
accepts the order contained in the bill of exchange.

REFERENCES
1. OFFICIAL CUSTOMS MALAYSIA WEBSITE http://www.customs.gov.my/
2. WEBSITE:

http://www.alibaba.com/countrysearch/MY/forwarding-

agent.html

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3. GOVERNMENT OFFICIAL WEBSITE


http://www.mof.gov.bn/English/RCE/CustomsMatters/customservices/Page
s/ApprovalPermit.aspx
4. WEBSITE; http://spblogger.com/tag/royal-malaysian-customs-department/
5. WEBSITE:
http://corporatelawreporter.com/seeks-amend-notification-532011customsdated-172011-indiamalaysia-ceca-10554.html

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