CARGO MANAGEMENT

Mgr. Cesar Augusto Díaz Moya

Lets start with some important definitions:
Merchandise Cargo

Packing Packaging
 What´s the difference between packing and
packaging?
Packing Packaging

Marketing Oriented Task Logistics Oriented Task

Show- Preserve-Attract Protect-Inform Carriers
Exhibition for sales Transportation and warehousing
Can products packaging have different levels?
• Primary

• Secondary

• Tertiary
So…. Let’s the “cargo” concept
*Cargo refers to goods carried by a large vehicle, like a plane, ship,
train, or truck. ... It's carrying cargo. Cargo originates from the Latin
word carricare which means "to load on a cart, or wagon." Cargo can
be loaded on a cart, but it's usually loaded on something much bigger.

*All articles, goods, materials, merchandise, or wares protected by

proper packing and carried onboard an aircraft, ship, train, or truck,
and for which an air waybill, or bill of lading, or other receipt is issued
by the carrier.

www.businessdictionary.com
So…. What is “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and
transporting goods from origin to destination.”
(Safety- Arrival-Cost)

Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy
1. Classify cargo by Type…
UNITIZED CARGO V/S LOOSE CARGO
1. Classify cargo by Type and Nature

PERISHABLE FRAGILE

SPECIAL
HAZARDOUS
 What to consider about Perishable cargo?
Keep Organoleptic Properties

Environmental
Exposure affection
Physiologic
Physic
Chemical
Damaged Perishable Goods
How can we deal with the ?

Technology
Storage
Transportation
Refrigeration Tecnology Devices
What to consider about Fragile cargo?

Keep it in one piece!!!

(Shape-Size-Vibration)

Caja Troquelada Bubblle wrap

Packaging
Marking
Absortion Materials Polietilene Foam Paper Air Bags
Polietilene Foam
What to consider about Hazardous cargo?
More paperwork
For crew
More marking
For aircraft- Vessel
More inspections
For other cargo
What to consider about Special cargo?
No packaging
Oversized No packing
cargo More consederations
• What are the ORGANOLEPTIC PROPERTIES of your
product? Do you know how to KEEP THEM?
• How is your cargo CLASSIFIED?
• How much KNOWLEDGE do you have of your cargo?
• Do you need BUFFERING or TEMPERATURE CONTROL?
 “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and transporting
goods from origin to destination.”
Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy
2. Select Packaging and Packing materials and design
“Materials or objects aimed to wrap or contain temporaliry good for
their handling during transportation, warehousing and exibition for
sales in origin and foreign markets”
Presentation

Design

Material
 2. Select Packaging and Packing materials and design
“Materials or objects aimed to wrap or contain temporaliry good for
their handling during transportation, warehousing and exibition for
sales in origin and foreign markets”

What are the 5 most relevant risks?!

2. Select Packaging and Packing materials and design
“Materials or objects aimed to wrap or contain temporaliry good for
their handling during transportation, warehousing and exibition for
sales in origin and foreign markets”

• Product characteristics
• Distribution cycle (Journey)
• Required buffering
• Material Selection
• Design
• Costs
2. Select Packaging and Packing materials and design
“Materials or objects aimed to wrap or contain temporaliry good for
their handling during transportation, warehousing and exibition for
sales in origin and foreign markets”

• Visibility

• Information

• Emmotional Appeal

• Workability
2. Select Packaging and Packing materials and design
Metal
Wood
Paper and Cardboard
Plastic
Glass
Natural and sintetic fibers
Compound Materials
Please remember …Premium Package
• What Packaging and Packing SYSTEMS will you use?
(Must compare 2 options)
• What is the BEST MATERIALS to be used for Packaging
and Packing? (Must compare 2 options)
• How is your Packaging and Packing DESIGN.
• How will you apply VIEW THEORY on Packaging?
 “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and
transporting goods from origin to destination.”
Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy
3. Define Labeling and Marking requirements
“Number of symbols that must be put on cargo units such as
pallets, boxes, containers, barrels to be identified as cargo”

Get to right destination

Arrive in good conditions

Avoid handling mistakes

3. Define Labeling and Marking requirements
ISO 7000 “Marcado y Rotulado”
Is it regulated? Marking & Labeling

ISO 780 “Marcado y Rotulado”

Marking & Labeling
3. Define Labeling and Marking requirements
 3. Define Labeling and Marking requirements
What must LABELING include? What must MARKING include?

1. Shipping Marks
• Depends on product type and (Buyer, seller, destination, origin country,
nature addresses, shipment number, customs)
• Depends on material used 2. Information Marks
(About the merchandise, name or nature,
• Depends on country norms number of units, weight, dimensions.
• Researching norm is compulsory 3. Handling Instructions
• Benchmarking competitor is (All pictoric symbols required for proper
recommended. handling- imagen)
 Example of Marking (including 3 elements)

1. Shipping Marks
(Buyer, seller, destination, origin country,
addresses, shipment number, customs)
2. Information Marks
(About the merchandise, name or
nature, number of units, weight,
dimensions.
3. Handling Instructions
(All pictoric symbols required for proper
handling- imagen)
3. Define Labeling and Marking requirements

How must LABELING

and MARKING be?
Pictoric symbols Norm ISO 780 (HANDLING)

PILE LIMIT
Pictoric symbols Norm ISO 780 (HAZARDOUS)
So…. What is your So…. What is your
LABELING STRATEGY? MARKING STRATEGY?
 “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and
transporting goods from origin to destination.”
Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy
4. Define the Palletizing method
“Grouping and placing goods on a surface (deck, pallet, tarima,
paleta) for making a handling unit which can be transported
and storaged with minimum waste of time”

DECK

PALLET
4. Define the Palletizing method

• Productivity
• Less Labor and Time
• Reduce Loading Costs
• Less Damage
• Better Classification
• Vertical Storaging
• Better use of Fleet
• Warehouse Profitability
RACKS
4. Define the Palletizing method
4. Define the Palletizing method
4. Define the Palletizing method
4. Define the Palletizing method
Not Only Boxes!
 Wood as the best option? NIMF 15 NORM

DEPENDS ON COUNTRY NORMS

4. Define the Palletizing method

STRAPS (PLASTIC-METAL) PLASTIC FILM

4. Define the Palletizing method (on trucks)

2,6 Mts
So…. What is your PALLET
SELECTION?
What is your pallet NORM, SIZE,
MATERIAL AND SHAPE?
How will you ACCOMODATE
PALLETS into truck?
So…What is your PILLING
STRATEGY?
HOW MANY PALLETS will you set
up?
How will you give STABILITY?
 “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and
transporting goods from origin to destination.”
Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy
5. Select the Containerization method
“Containerization is a system of intermodal freight transport using intermodal
containers (also called shipping containers and ISO containers). 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.”
Handling system is completely mechanized with cranes and special forklift
trucks. All containers are numbered and tracked using computerized systems
5. Select the Containerization method

TWIST LOCKS

PRECINTOS ADUANEROS
5. Select the Containerization method (STANDARD TYPES)
LAND AND SEA TRANSPORTATION - STANDARD CONTAINERS
5. Select the Containerization method (CODES)
5. Select the Containerization method
5. Select the Containerization method (SPECIAL TYPES)
5. Select the Containerization method (SPECIAL TYPES)
5. Select the Containerization method (AIR “LATAS”)
5. Select the Containerization method (“LATAS” TYPES)
5. Select the Containerization method (HOW TO PACK?)
• What TRANSPORTATION MODES will you use?
• What the TYPE OF TRUCK, PLANE or SHIP will you use?
• What is the TYPE OF CONTAINER will you use?
• How will you ACCOMODATE PALLETS into containers?
• HOW MANY containers will you need?
 “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and
transporting goods from origin to destination.”
Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy
 6. Manage Transportation strategy (Distribution channel-Middle Agents)

• Exporter-Seller
• Local Carrier
• Local Custom Agent
• Int. Cargo Agent
• Int. Carrier
• Foreign Custom Agent
• Foreign Carrier
• Insurance Agencies
• Importer-Buyer
6. Manage Transportation strategy (Aircraft Choise)
6. Manage Transportation strategy (Aircraft Choise)
6. Manage Transportation strategy (Ship Choise)
6. Manage Transportation strategy (Portacontenedores)
6. Manage Transportation strategy (Truck Choise)
 6. Manage Transportation strategy (How to choose a middleman?)

SELECTION CRITERIAS
• What is your TRIP ROUTE AND DISTRIBUTION CANNEL?
• What AGENCIES you will require?
• What SELECTION CRITERIAS will you use to choose?
• What the TYPE OF TRUCK, PLANE or SHIP will you use?
• HOW LONG is the trip?
 “Cargo Management”
“The process of making proper decision on classification,
packaging, packing, labeling, marking, unitizing and
transporting goods from origin to destination.”
Strategy Steps:
1. Classify cargo by Type and Nature
2. Select Packaging and Packing materials and design
3. Define Labeling and Marking requirements
4. Define the Palletizing method
5. Select the Containerization method
6. Manage Transportation strategy