OBJECTIVE

To manage dangerous goods in sea transport effectively, a strategy has to be developed which is

directed toward three main objectives, namely:-

Cost reduction

Capital reduction

Service Improvement

i) Cost reduction is directed towards minimizing the variable costs associated with the movement

and storage of goods

ii) Service levels typically are held constant while cost minimizing alternatives are analyzed.

iii) Profit maximization is the prime goal.

iv) Capital reduction is directed towards minimizing the level of investment in the dangerous

goods in sea transport system.

v) Maximizing the return on investment is the motivation for this strategy.

vi) Service improvement strategies usually recognize that revenues are a function of the level of

logistical services provided.

vii) To be most efficient, the service strategy is developed in contrast to that of competitors,

providing differentiating services that customers value and that are not provided by competitors.