Assignment 1: Logistics Management

1. What are the different job roles of logistics operation staff?

Ans- Planning and managing logistics, warehouse,

transportation and customer services. Directing, optimizing and
coordinating full order cycle. Liaising and negotiating with
suppliers, manufacturers, retailers and consumers.

1 Here are the top 5 job descriptions for the Logistics Industry
● Logistics Coordinator.
● Logistics Manager.
● Warehouse Manager.
● Shipping Manager.
● Supply Chain Analyst

Every individual in the logistics department plays an integral part

and therefore, numerous logistic tasks are to be performed on a
daily basis.

Unloading and unpacking of cargo

Assembling merchandise
Managing inventory stock levels
Optimizing pricing and ticking
Handling and managing of data entry
Providing customer service
Filling orders
The Logistics department is also responsible for the storage and
distribution of goods, analyzing data using information systems,
organizing cartons, stocking shelves in warehouses, providing
support to the sales department as and when required, and so
on.
Your staff should stay up to date with the latest developments in
the Logistics industry. To be successful in these roles, the
prospective candidates should possess logistics skills such as
an exceptional understanding of inventory management skills,
logistic management, and data mining and analysis.

Candidates should have a strong understanding and experience

working in different types of supply chain management
procedures. Most of the time, they have to work in collaboration
with the customer to solve their logistic queries.

Also, experience working with Logistics management software

and other related software is mandatory. Excellent
communication skills and physical stamina for heavy lifting is
also necessary

Here are the top 5 job descriptions for the Logistics Industry.

1.Logistics Coordinator

A Logistics Coordinator is responsible for creating, analyzing,

and managing the logistics plans. They are also responsible for
arranging efficient transportation, organizing storage, and other
shipment solutions. Maintaining a cordial relationship with
vendors, retailers, and customers is very essential in this role.
They should provide maximum customer satisfaction with
minimum cost.

Exceptional negotiation, customer service, time management,

and communication skills these Logistics coordinators should
possess.
2.Logistics Manager

The complete supply chain management and logistics operations

are managed by the Logistics Manager.

Logistics Manager is responsible for managing, organizing, and

monitoring the distribution as well as storage of the goods. A
successful Logistics Manager should be competent and reliable
so as to boost the business development process and ensure
customer satisfaction.

The ability to lead and manage the workforce and maintain

metrics of the current performance is also essential in this role.

3.Warehouse Manager

A Warehouse Manager is responsible for managing the receiving

warehousing and distribution functions. Their ultimate goal is to
ensure maximum productivity in the warehouse.

The candidates must perform various warehouse operations

such as dispatching products, managing receipts, and receipts
storage. Delivering excellent customer service is a must in this
job position.

4.Shipping Manager

A Shipping Manager is responsible for managing routine

shipping and distribution operations on a daily basis. The main
aim of the candidate is to complete the orders in a timely manner
and ensure that they are being shipped.

They should be comfortable with information systems,

documentation, and should have a strong understanding of
receiving and shipping procedures. In addition to this, the ability
to resolve issues related to shipping is a must.

5.Supply Chain Analyst

Supply Chain Analyst is responsible for analyzing the product

development life cycle. They are also responsible for identifying
errors and making recommendations for the improvement of the
supply chain process of the organization.Strong analytical and
problem-solving skills are very essential to be successful in this
role. Reducing cost and increasing efficiency of the supply chain
is the primary purpose.

2. What do you understand by ‘Scheduled’ departure of vehicle?

Ans- planned to happen at a particular time: This programme will

be broadcast half an hour later than the scheduled time. A
scheduled flight or bus is one that travels at the same time every
day or week: a scheduled flight.
The time when a train ,plane ,bus etc is scheduled to
depart/arrive.

3. What do you understand by ‘Feeder’ route and ‘Express’

route?
Ans-i. Feeder route , A route designated on instrument approach
procedure charts for aircraft to proceed from an en route
structure to the initial approach fix. Also called a transition route.

● Feeder routes connect or “feed” passengers in

lower-density neighborhoods to trunk route stations,
terminals or integration points where they can transfer to
other routes. In a physically integrated system, feeder
routes would stop at the station serviced by other routes.
● In electrical engineering, a feeder line is a type of
transmission line. In addition Feeders are the power lines
through which electricity is transmitted in power systems.
Feeder transmits power from Generating station or
substation to the distribution points.
Express route- Express route allows a private connection
between the local network and the Microsoft cloud. Using
express route organizations/users can connect to several
Microsoft cloud services (cloud products e.g. Microsoft
dynamics 365, Microsoft Azure and Office 365)

● The express. Router function is used to create a new router

object. This function is used when you want to create a new
router object in your program to handle requests.
● ExpressRoute provides direct connectivity to Azure cloud
services and connects Microsoft's global network. All
transferred data is not encrypted, and do not go over the
public Internet. VPN Gateway provides secured connectivity
to Azure cloud services over the public Internet.

4. What do you mean by ‘Transit-time’? How can the transit-time

be reduced?
Ans- Transit time is the total time it takes for goods to get from
Point A to Point B, measured in hours and/or days and also
called delivery time. The mode of transport could be a boat,
plane, train, truck, or a combination of multiple delivery
modes.transit is the time it takes for a shipment to be transported
and delivered once it has been picked up from the point of
departure. Basically, it is the amount of time spent shipping and
delivering products from a merchant's warehouse to the
consumer. It is the observed or predicted time of the transit of a
celestial body across the meridian.
Here we can see the ways to reduce transit time/ delivery time
which are given below :-

● Increase Inventory Visibility.

● Use expedite delivery
● Ship Directly from Your Vendor.
● Warehouse Products Closer to the End Customer.
● Outsource Your Transportation

1.INCREASE INVENTORY VISIBILITY

With detailed and timely knowledge of where your inventory is

anywhere in the supply chain, from raw materials to finished
goods, you can make more informed decision about your
shipments. You’ll also be able to identify and correct bottlenecks
sooner and address emergencies as they happen.

2.USE EXPEDITE DELIVERY

Expedited shipments are longer only an exception to be used in

certain circumstances. Instead, they help you show your
dedication to customer service and keep your delivery times as
short as possible.

3. SHIP DIRECTLY FROM YOUR VENDOR

Why be the middleman if it slows down your delivery times. The

advantages of drop shipping increase as the size and weight of
your products increase because of the costs of shipping oversize
and overweight freight.

4. WAREHOUSE PRODUCTS CLOSER TO THE

END CUSTOMER

If you give yourself the warehousing services to reduce the

distance between your products and the next link in the chain,
you will inherently create shorter delivery times.

5. OUTSOURCE YOUR TRANSPORTATION

REQUIREMENTS

While your customers demand it, your company might not be

set-up to minimize delivery times. Even if you have your own
transportation fleet, your business may have limitations that
make faster delivery times impossible. Limitations that can be
very costly to eliminate.
One option is to choose a transportation services provider with
the resources and options to always find the fastest way to move
your goods.

5. Explain what is ‘Bay’ audit? Why is bay audit required?

Ans- Bay Auditing – a structured counting of warehouse
locations by specialized resources; the contents of storage bays
are counted and compared to the warehouse management
system. A variance will trigger an investigation including a cycle
count if necessary. The audit cycle typically requires one to two
weeks to complete, at which point the process begins again.
This perpetual inventory process is a key procedural element
towards ensuring the highest inventory accuracy results.
Bay audit is required in logistics management for value added
services like labelling, packaging etc.

6. What does FTL stand for? Differentiate it FTL with LTL.

Ans- FTL refers to Full Truckload.Full truckload, sometimes

abbreviated as FTL, TL or OTR (over the road), generally refers to
surface transportation with a semi truck.Full-Truckload services
are generally required by businesses that are looking to haul
bulk items and heavy loads across long distances. LTL and FTL
are commonly used terms in shipping and logistics. LTL stands
for Less Than Truckload, and FTL refers to Full Truckload

Difference between FTL and LTL given below:

On the basis of definition :-

● In FTL shipping, only one shipment will occupy an entire

truck. This is used when 10 or more palettes are awaiting
dispatch. High-risk shipments often use FTL as it is
regarded as a safer option as the cargo stays on one truck
during the entire process. Thus, reducing the risk of
damage. Here, since there is only one shipment on board, it
 doesn’t make multiple stops. Hence FTL is regarded as a
quicker and time-saving transportation method than LTL. If
you have a large and relatively delicate shipment that needs
to be sent quickly, FTL is the best option. At times, even
smaller shipments can also benefit from using FTL
shipping.
. Whereas LTL shipping is. used when a shipment is not
large enough to occupy an entire truck. These shipments
typically weigh between 100 to 10,000 pounds. In an LTL
shipment, you only have to pay for the space in the truck needed
to accommodate your cargo. Suppose your shipment occupies
only 50% of the truck space, then you have to merely pay half the
shipping cost. The other vacant half is then filled with shipments
from other companies to complete the load, LTL shipment may
be an appropriate choice for small businesses that don’t ship in
large quantities as it helps them export limited goods within their
budget. If you are operating within tight deadlines, then LTL
might not be a suitable option for you. This is because LTL
shipments often take longer to reach their destinations as they
have to carry cargo from various companies having different end
destinations, resulting Advantages:-
IN FTL
1) Cost-effective for larger shipments

If there is a bulk order and the cargo can fill a trailer to its total
capacity, FTL is the right choice. Such a transport method will
cost you less when compared to using multiple LTL shipments.
This makes FTL a more feasible option to export large quantities
of cargo.

2) Lesser damage risk

As mentioned earlier, since FTL contains only one shipment,
there is no unloading/loading at multiple points, thus eliminating
considerably any significant risks of mishaps or mishandling.

3) A faster means of transport

The only factors associated with FTL shipping are the truck’s
route plan consisting of the freight’s origin and final destination.
FTL shipments ensure that the cargo reaches its end destination
as quickly as possible as it has already traveled from one point
to another without halting at various stops.

IN LTL
1) Cost-effective for small companies

LTL is cost-effective for small businesses operating on a limited

budget as their shipment is combined with others.

2) Flexibility

Exporting goods through LTL transportation mode is considered

a flexible way of shipping for small and medium-sized
companies. As demand changes, they can scale their space
needs too.

3) Minimal environmental impact

LTL works on the carpooling model. As goods from other

organizations are combined, less fuel is used for transport. If
those goods are shipped individually, the impact of
transportation on the environment would be more significant.
Handling

● FTL: Here, the shipper loads the goods at the point of origin
and affixes a seal on the trailer. The driver then takes the
trailer straight to the destination for delivery.

● LTL: In any LTL shipment, the the trailer is loaded with

products by an array of companies which are unloaded at
different destinations. Hence they stop at various
warehouses throughout the journey until they reach their
final destination.

Accessorial charges

● FTL: In this type of shipping, you have undivided attention,

and the services of the designated driver right from pick-up
through delivery. A single load means several days of travel
and that’s why FTL drivers are more flexible with
accessorial charges.

● LTL: As you are paying for only a miniscule portion of the

total capacity in a trailer, the work is divided amongst
several drivers and warehouses. LTL drivers must maintain
optimum efficiency to gain profit. Any hindrance in the
entire process can result in extra charges.

Knowledge of freight class

 ● FTL: Generally, FTL carriers are not very concerned with the
exact commodity specifications. To provide accurate
pricing, they just need to know whether the product is
palletized and what its hazmat and legal weight are.

● LTL: Depending on the shipment’s freight class, the rates

for different commodities may vary significantly, even if they
are placed in the same lane with the same number of pallets.
All LTL carriers use the standard freight classification
system created and approved by the National Motor Freight
Traffic Association to categorize commodities and
determine the pricing.There are 18 different classes, ranging
from Class 50 (least expensive) to Class 500 (most
expensive).

Reweighing product for accuracy

● FTL: Once a trailer is loaded, the driver may stop at a weigh
station to verify that the truck carries a load under the legal
limit of 80,000 lbs. Apart from this stop, there is generally no
product inspection until the seal on the shipment is broken
by the receiver at the delivery dock.

● LTL: Carriers possess the liberty to re-inspect any product

on its arrival at the origin terminal. Shipments are scanned
by a machine known as 'dimensioner,' which automatically
scans pallets to determine weight and dimensions. If there
is a difference in the results from the listed product
specifications on the bill of lading, the LTL carrier
reclassifies the freight and makes an updated offer based
on the new findings.
Transit route

● FTL: The driver collects the product and heads straight to

the consignee/receiver. The transit generally takes a
predictable and predetermined route. Unless there is an
equipment breakdown, the driver usually will arrive at the
destination at the calculated time. This time is estimated
based on a simple equation of total mileage, hours of
service, posted speed limit, and estimated traffic.

● LTL: The transit of goods through LTL usually takes longer

than FTL. Also, the delivery rates here are merely estimates
and not fixed charges. Many LTL carriers report service
levels above 90%. But they can vary depending on the lane
and the carrier.

FCFS pick-up windows

● FTL: Drivers of FTL trailers will accept firm appointment
times which means that pick-up times are not guaranteed
and flexibile on your end, as the shipper, is going to be
critical.

● LTL: LTL drivers have to complete multiple pick-ups and/or

deliveries per run, and their services are flexible according
to business needs. LTL offers a two-hour,
first-come-first-serve (FCFS) window. This is the industry
standard. Here, pick-ups are not guaranteed.

Trailer specifications
 ● FTL: Most FTL carriers have 53’ trailers with swing doors.
Trailers are typically 102" wide and have 110" clearance
height.

● LTL: LTL carriers generally use 53’ trailers. They are 102"
wide, but most are equipped with roll doors. This reduces
the clearance height to 96". Factors such as long delays,
empty miles, non-standard services, and under-utilized
trailer space can impact the profitability and efficiency of
LTL carriers when compared to FTL carriers.

7. Write down the names of the MHEs along with their application

Ans- Material handling equipment is used throughout the entire

chain of physical movement or storage of goods. It is used in the
movement of raw materials and during the process of
production. MHE is used to handle finished goods, during
storage of these goods, and their transport and distribution .
The types of material handling equipment are given below.
● Storage and Handling Equipment-
This is the simplest type, something so basic you might not even
think of it as equipment. These are shelves and racks where you
store your material in between receiving it and shipping it. They
are often designed to utilize vertical space so the warehouse can
hold more items. Bins, drawers, stacking frames, flow racks,
cantilever racks, and mezzanines are also included in this
category.
● Bulk Material Handling Equipment-
According to Thomas Network, this is, the storing, transportation
and control of materials in loose bulk form. If there’s a lot of
material altogether, you’re probably using bulk material handling
equipment. An example would be a silo, a large cylinder that can
hold stuff like grain.
Other examples include:

Stackers and reclaimers: -Large machines that are used

to dump things into piles or to pick them back up again.
They can be hard to visualize, so here’s an animation of one
working.

Hoppers:- Picture a large metal funnel. It stores material

and can release an exact quantity out the bottom.

Grain elevators:- Buildings used to store grain. They

include a series of buckets on a track that automatically
transports grain to the top of the building where it can be
funneled into different silos.

Bucket elevators:- Similar to a grain elevator, this device

features buckets that transport large amounts of material.

Conveyor Belts:- Moving belts that transport material.

They can be combined into more complicated conveyor
systems which are considered engineered systems. If you
want a conveyor system for your business, contact DCS.

Dump Trucks:- Also a type of industrial material transport

vehicle.

Screw Conveyor:- A screw-shaped device inside a tube

that turns to move material.
 Rotary car dumper:- A device that turns a rail car to dump
out its contents.

● Industrial Trucks- These are vehicles or equipment

that move materials. Sometimes workers run them, and
sometimes they are automatic. Automated Guided Vehicles
(AGVs) fall under both engineered systems and industrial
trucks.
● Engineered Systems-
This type of material handling equipment involves more
complicated systems with multiple components, usually
warehouse automation.

Examples would be AGVs, conveyor belt or robotic delivery

systems (complicated systems that come in different shapes and
sizes), or Automated Storage and Retrieval System (AS/RS),
which are automated systems often incorporating AGVs which
make warehouses more efficient-basically anything that moves
materials around the warehouse so workers don’t have to.

This category of equipment is the most complicated and

expensive, often incorporating elements from the other
categories into wider more expansive systems. These systems
require a lot of time and research before making an investment.

8. Which documents are checked on the arrival of a

transshipment vehicle at the hub?
Ans- Shipping documents you need when transporting your
cargo are as follows:-

● Commercial Invoice-
The Commercial Invoice is one of the most important documents
when shipping your ocean freight. It is the invoice that is issued
by the seller (exporter) to the buyer (importer). It is required in
the customs clearance process.

● Packing List-

The Packing List is another important shipping document when

transporting ocean freight internationally. It is a detailed
overview of the cargo mentioned on the Commercial Invoice
above. It also includes information on how the shipment has
been packed and which marks and numbers are noted outside of
the shipment boxes.

● Export/Import Customs Declaration-

An Export or Import Customs Declaration lists details of the

goods which are imported or exported. This declaration is
especially important when shipping international freight.
Describing it in legal terms, with a Customs Declaration, a person
shows the wish to place goods under a given customs
procedure. The Declaration is used for customs clearance and to
calculate the duties or taxes applicable to the cargo. It is
prepared by a customs broker using the invoice and packing list.
At Twill, we are here to help you with customs clearance

● Bill of Lading & Sea Waybill

The Bill of Lading is a detailed document you will receive from

us. It is the transportation contract, and important details on the
shipment are included in it. It is another relevant part of the
ocean freight and proof that the carrier has received the goods
from the shipper in good condition. The party holding this
document is also the party controlling the cargo.

9. What is the sequence of activities post the arrival of vehicle at

the transshipment hub?

Ans- Transshipment is a process where one package or

container is unloaded from one vessel and loaded onto another
and eventually shipped to its final destination.

A transshipment port is a hub that handles a lot of cargo, TEU or

otherwise, between multiple vessels, but what is the busiest
transshipment hub in the world? The cargo at these ports is
transported away to another port, rather than being shipped
inland via rail, road or waterway.

10. What are the features of VMI? How does the Logistics
Company play an important role? Discuss the repercussions of
an ill-managed VMI.

Ans- VMI stands for Vendor-managed inventory is an inventory

management practice in which a supplier of goods, usually the
manufacturer, is responsible for optimizing the inventory held by
a distributor. In traditional inventory management, a retailer
makes his or her own decisions regarding the order size.

Advantages of VMI

There are 5 Vendor-Managed Inventory Benefits

● Improved alignment of inventory with customer demand.

In a VMI relationship, the supplier takes charge of replenishment,
allowing the supplier to dynamically adjust inventories in
response to customer demand. VMI improves the overall supply
chain responsiveness to seasonal changes, special promotions,
and new initiatives.

By smoothing out the effects of demand variability, suppliers can

better coordinate manufacturer lead times. In turn, suppliers can
carry a leaner inventory of finished goods. The net effect is lower
carrying costs and reduced disruptions from stock-outs and
other inefficiencies.

● Streamlined processes and lower costs.

Because the supplier controls customer inventory in a VMI

relationship, the supplier can achieve significant efficiencies. The
ordering process is typically based on more accurate and
up-to-date data, which allows for cost savings by achieving VMI
benefits like these:
a. Reducing the frequency of costly last-minute orders,
b. Reducing the overall number of orders, and
c .Reducing returns due to product replacements.

● Improved data insights.

A VMI program takes the supplier’s data analytics to new levels

of sophistication that feeds into its entire operation. The benefits
go beyond the warehouse. For example, a better understanding
of actual demand helps sales managers improve performance
and develop stronger relationships with customers. As
customers share more and better data, the supplier’s insights
into its marketplace often expand in valuable ways.

● Closer collaboration with customers.

An effective VMI program develops through cooperation.

Suppliers who adopt VMI find that it enhances their relationships
with customers, who gain a significant competitive advantage
thanks to the superior service and on-time delivery that VMI
enables.

Customers quickly recognize that they can leverage their

supplier’s VMI program to improve results, both for day-to-day
operations and for special programs.

● Improved sales figures.

As the supplier develops a better understanding of actual

customer demand through its VMI process, it becomes a better
partner to its customers and therefore is more likely to see
increased sales. By encouraging greater transparency and
communication, the supplier can better respond to its customers’
conditions and future plans, ultimately helping customers and
suppliers alike grow in more efficient and predictable ways.

Important role of logistics

Process of logistic management includes organizing, planning,

implementing and controlling flow of goods, products efficiently.
Process of inventory management includes controlling, storing,
and keeping track of inventories of company or organization
Repercussions of an ill managed VMI

The disadvantages of vendor managed inventory include the

customer's loss of control. If they do not trust their supplier, this
would be a deal-breaker. Likewise, if the vendor is not able to
handle the added responsibility, or cannot provide excellent
service, the customer may experience frequent stockouts.

11. In case of VMI, who is the customer to the Logistics

Company? Who is authorized to manage the inventory SKUs?

Ans- In VMI , retailers are the customers of the logistics

company and supplier is responsible for creating and
maintaining the inventory plan. Under VMI, the supplier
generates the order for replenishment VMI inventory, not
customer. Hence, the term Vendor Manage Inventory

SKU stands for “stock keeping unit” and — as the name

suggests — it is a number (usually eight alphanumeric digits)
that retailers assign to products to keep track of stock levels
internally. If a product has different colors and sizes, each
variation has a unique SKU number.
A Stock Keeping Unit is defined as a set of letters and numbers
given to a product by a seller. Typically, the letters and numbers
in a SKU are abbreviated attributes that distinguish one product
from another products

SKU Number Tips

● You can reuse SKUs.

The first 2-3 digits should represent the highest category.
● Avoid beginning the SKU with the number 0.
 ● Do begin your SKU with letters.
● Avoid using letters that look like numbers.
● Don't use any of the manufacturer numbers within your
SKUs.
● Don't overload your SKUs with meaning.

A stock keeping unit (SKU) is an alphanumeric code that

identifies a product and helps you track inventory for your retail
business. You can create SKU numbers manually or using
inventory management or point-of-sale (POS) software.

12. Why do we maintain the dock height same as the vehicle

height? Explain.

Ans- A dock high truck is a truck at the dock door level. In other
words, it is a truck whose trailer should be roughly level with the
height of your dock door. The height in inches is usually between
48 and 52 inches.

A dock area should be flexible enough to accommodate any

vehicle. The most common dock height is 48” – 52”.One element
which has gained significant importance is a dock leveler, mainly
because it is crucial for unloading and loading trailers and
trucks. Most importantly, dock levelers help reduce the chances
of accidents.The Average Height of a Loading Dock

Truck beds typically stand anywhere between 40-60 inches. In

order to accommodate the different sizes of trucks, loading
docks are usually built with a height between 42-56 inches and
they use a dock plate or dock leveller to allow forklifts to easily
enter and exit trucks.
13. Which are the different types of containers? Which of them
are most frequently used and why?

Types of containers
1. Dry storage container
2. Flat rack container
3. Open top container
4. Open side storage container
5. Refrigerated ISO containers
6. ISO Tanks
7. Half height containers
8. Special purpose containers

● Dry storage containe

Dry storage containers are the most common containers used in

the shipping industry. They come in lengths of 20, 40 and 45 feet,
and they are designed to transport dry goods. These containers
do not allow for temperature controls, so they are not suited for
moving food or chemicals that require refrigeration. There are
about seventeen million intermodal containers in the world, and a
large proportion of the world’s long-distance freight generated by
international trade is transported in shipping containers. Their
invention made a major contribution to the globalization of
commerce in the second half of the 20th century, dramatically
reducing the cost of transporting goods and hence of
long-distance trade.

This type of container is handled by Spreaders. There is a very

wide variety of spreaders according to the number of cycles and
to the type of cranes to be used. if you need more info please
visit.
 ● Flat rack container

A flat rack container has no top and only two sides. This makes
room for heavy loads to be set the rack from above or from the
side. Most flat rack containers are either 20 or 40 feet long, and
they are made from steel for strength and durability. Some flat
rack containers are collapsible, and some come with additional
walls that can be attached to the frame.

This type of equipment is handled by Overheight Frames.

● Open top container

This type of container is basically a Dry Storage type but without

top. This allows for easy loading of bulk cargo. There is a roof
structure, plastic, that can be secured to the container with
ropes, and that provides protection against rain and other forms
of precipitation.

This type of equipment is handled by Overheight Frames as the

cargo might protrude from the top of the container.

● Open side storage container

An open side container has one long side that can completely
open. This is beneficial for wide merchandise that may be
difficult to get through the end of a tunnel container or dry
storage container. The side swings open as if it was made of two
large doors, but it can still be secured to protect the merchandise
inside.
This type of container is handled by Spreaders.

● Refrigerated ISO containers

A refrigerated container or reefer is an intermodal container used

in intermodal freight transport that is refrigerated for the
transportation of temperature-sensitive cargo. While a reefer will
have an integral refrigeration unit, they rely on external power,
from electrical power points (“reefer points”) at a land-based site,
a container ship or on quay. When being transported over the
road on a trailer or over rail wagon, they can be powered from
diesel powered generators (“gen sets”) which attach to the
container whilst on road journeys. Refrigerated containers are
capable of controlling temperature ranging from -65 °C up to 40
°C.

● ISO Tanks

Tanks are storage containers designed to hold liquids. They are

usually constructed out of anti-corrosive materials because of
the chemicals they are used to carry. Tanks may also be used to
store dry goods like sugar, but they are most often used
exclusively for liquids.

As the Refrigerated container or the normal Dry storage.

● Half height containers

Made mostly of steel, these containers are half the height of

full-sized containers. Used especially for good like coal, stones
etc. which need easy loading and unloading. This type of
container is being used more and more for Containerized Bulk
cargo.

This type of containers can be transported and lifted by standard

spreaders but lately, in the bulk materials market, are used with
rotatory spreaders such as the RAM Revolver.

● Special purpose containers

Special purpose containers can be made in nearly any shape or

dimension. They are used to transport items that require a
custom container to be made for them. Most shipping companies
avoid the use of special purpose containers as much as possible
because they are costly to create and transport. Nevertheless,
this is necessary for certain loads. The Spreader to be used with
this type of container may vary,

14. What is the difference between container classification

number and registration number? List a few companies which
are operating in the container segment.

Ans- The identification system provides uniform international

identification of containers, in documentation and in
communication associated with the movement of containers
from door to door. It consists of:

The owner prefix (BIC code): three capital letters of the Latin
alphabet to indicate the owner or principal operator of the
container,
The equipment category identifier: one capital letter as follows:
U for all freight containers,
J for detachable freight container-related equipment,
Z for trailers and chassis,
The serial number: six Arabic numerals, left at owner‘s or
operator‘s option,
The check digit: one Arabic numeral providing a means of
validating the recording and transmission accuracies of the
owner code and serial number.

Whereas Registration Number (or Serial Number).

A sequence of 6 digits where each container belonging to an
owner has a unique value. Therefore, each owner code can have
up to 1 million containers.

10 Largest Container Shipping Companies in the World in 2022

● MSC – Mediterranean Shipping Company

Maersk has been on the no. 1 spot since it overtook Evergreen in

1996. The domination of Maersk Line in terms of TEU capacity
has been broken first time in 25 years by Mediterranean Shipping
Company (MSC).It is a Swiss international cargo company
established in the year 1970. With a buying spree of the new and
old vessels, MSC added almost 100 ships in its fleet in the last
one year, having vessel line-up of over 645 container ships, the
conglomerate is rated to be one of the most extensive cargo
companies globally, with a TEU capacity of around 4,287,473
TEU.

● APM-Maersk

A shipping corporation based in Denmark, Maersk Shipping Line

dominated the world container shipping market holding the no.1
spot for more than 25 years. Maersk Shipping Line is an AP
Moller- Maersk company branch. Widely well-known for its fleet
of container ships, the Maersk Line made its debut in the
international container shipping arena in the year 1904. Now the
company is diversifying its presence in green fuel and digital
technology space.

● CMA-CGM

France’s leading container shipping company, CMA-CGM was in

the 4th spot last year (2021). With new mega-ships being added
to its fleet, it is now the 3rd largest company in terms of TEU
capacity. CMA CGM came into existence in the year 1978 as a
result of a series of mergers between previously established
shipping corporations. Jacques Saade, the head of the company,
was the instrumental force behind its coming into active
operation.

● COSCO – China Ocean Shipping Company

The China Ocean Shipping Company or COSCO, as it is

popularly known, is one of the leading conglomerates in terms of
container shipping companies. COSCO, pushed down in 4th
position by CMA CGM this year, has it’s operations spread over
40 countries with a fleet of around 480 container ships with a
container carrying capacity of 2,932,779 TEU. However, its order
book contains additional 5,85,000 TEU which will be added to the
company capacity in the coming year.

● Hapag-Lloyd

The German-based Hapag-Lloyd is one of the most renowned

and well-featured companies in terms of international shipping
companies. The company was established in the year 1970 due
to a merger between the Hamburg-American Line and the North
German company Lloyd.

● ONE – Ocean Network Express

Established on July 7th, 2017, One Network Express integrates

three major shipping companies, MOL, “K”-Line, and NYK. Setup
in Japan and headquartered in Singapore, ONE was founded to
strengthen services in Asia, Latin America, and Africa. The
alliance of these three companies currently has a combined fleet
of 209 vessels with a container carrying capacity of 1,531, 530
TEU, making it one of the largest container shipping alliance
companies in the world. However, compared to 2021, there is a
reduction of 2% in the TEU capacity mainly due to the reduction
in the number of chartered vessels.

● Evergreen Line

A shipping conglomerate based in Taiwan, the Evergreen Marine

Corporation was founded in 1968 by Dr Yung-Fa Chang, a
visionary in his own right. At present, the company has offices
established worldwide and with an operational capacity of more
than 204 container ships and a container carrying capacity of
1,477,644 TEU. It is regarded to be one of the largest cargo
shipping companies in the world. Currently, Evergreen Line has
the world’s largest container ships in its fleet.

● Hyundai Merchant Marine

HMM Co. LTD., formerly known as Hyundai Merchant Marine is a

leading container shipping company based in South Korea. With
a fleet of 75 vessels and cargo-carrying capacity of over 819,790
TEU, HMM Co. LTD. is one of the top 10 shipping companies in
the world, moving the largest portion of South Korea’s exports.
Being a top integrated logistics company globally, HMM Co. LTD.
plays an important role in Korea’s economic development.

● Yang Ming Marine Transport

Based in Keelung, Taiwan, Yang Ming Marine Transport is one of

the oldest and largest shipping companies globally. Established
in 1972, the company provides services across Asia, Europe,
America, and Australia with a fleet of around 90 vessels. It has a
container carrying capacity of around 6,62,047 TEU.

● Zim Integrated Shipping Services Ltd

Zim Integrated Shipping Services Ltd., commonly known as ZIM,

is an Israeli international cargo shipping company. It was
founded in 1945 as the ZIM Palestine Navigation Company Ltd.
Currently, ZIM has a fleet of 111 ships with a total container
carrying capacity of 4,19,064 TEUs. It has added more than 30
ships to its fleet in 2021, making it one of the top 10 container
shipping companies in the world.Container shipping is a huge
industry and these key players are aware of the minutest
operational manoeuvrings necessary to power them to be the
world leaders in the commercial enterprise, not just in their home
countries but also at an international level.