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INTERNATIONAL
COMMERCIAL TERMS
FOR CARGO SHIPPING
INTERNATIONAL COMMERCIAL TERMS
INCOTERMS
 Incoterms are used in global trade to establish the respective
responsibilities of the parties. It is an acronym of
International Commercial terms.
 Incoterms constitute a set of rules developed by the
International Chamber of Commerce(ICC) since 1936, latest
revision in 2010.
 Incoterms govern the international trade relationship and
distribution of responsibilities for risks and costs in a
transparent and mutually acceptable manner as per
internationally recognized rules and regulations
 Incoterms are guiding factors on the distribution of risk and
responsibilities
PROCESS OF FORMATION OF INCOTERMS
Inputs or feedback Incoterms

Chamber of commerce of E category
different countries
International
NGO ,Pressure groups chamber of commerce F category
Trade or merchant C category
association
Inter –governmental panel D category
EXW – EX-WORKS (NAMED PLACE OF DELIVERY)
 The exporter shall place the goods at the disposal of the

importer at his(Exporters premise) premises. The seller is
expected to have the goods ready for collection at the
agreed place of delivery (commonly the seller's factory,
mill, plant or warehouse)
 Such goods are yet to be cleared for export and are to be
loaded on any collecting vehicle of importer at his own
expense
 In this way EXW , indicates the minimum involvement of risks
of losses and damages to the exporter and maximum
involvement of losses and damages to the importer
EXW – EX-WORKS (NAMED PLACE OF DELIVERY)
Application:
 The importer would prefer to buy goods if he has better
logistical expertise than the exporter
 Monopoly of exporter
Incoterms 2010: Responsibility of costs and risk
incoterm Mode Packa Loadin Outbou Pre- Termin Sea Insuranc Unloadi Termin Inboun Deliver
gin g nd Positioni al Freig e ng al d y
g Cutoms ng Handli ht Handli Cutom
Clearan ng ng s
ce Charg Charg Cleara
es es nc e
Ex Works EXW All S B B B B B B B B B B
Free Carrier FCA All S S S S/B B B B B B B B

Free Alongside Ship FAS Sea S S S S S/B B B B B B B
Free on Board FOB Sea S S S S S B B B B B B
S S S S S S B B S/B B B
Cost and Freight CFR Sea
S S S S S B B B B B B
S S S S S S S B S/B B B
Cost,Insurance and CIF Sea
Freight S S S S S B B B B B B
S S S S S S B S/B B B B
Carriage Paid To CPT All
Carriage , Insurance S S S S S S S S/B B B B
Paid CIP All
To
Delivered at DAT All S S S S S S S S S B B
Terminal
Delivered at Place DAP All S S S S S S S S S B S
Delivered Duty Paid DDP All S S S S S S S S S S S
"S" =Seller and "B"= Buyer

Responsibility of costs and risk is same for all incoterms except CFR,CIF,CPT and CIP. For these incoterms
the FIRST iine(BLUE) shows the sharing of costs and SECOND line (orange) shows sharing of risk.
In mode "All" includes road, rail , air and seaway transportation.

FCA – FREE CARRIER (NAMED PLACE)
 In FCA shipping term , the exporter is under obligation to take

responsibility of all risks and costs involved in trade
transactions associated with the cargo until the cargo is
delivered to the named place of shipment and the same has
to be collected by the carrier nominated by the importer
 The responsibility of custom clearance is of the exporter
 Exporter is liable for all custom related expenses including
export duties
APPLICATION
 Exporter will be responsible for Special export license in case

of restricted category of exports
ITC-HS- Indian Trade Classification -Harmonised System

https://www.dgft.org/itc_hs_code.html
 FCA is best suited for air carriers

Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


FAS – FREE ALONGSIDE SHIP (NAMED PORT)
 The exporter is responsible for delivery of cargo to the named

port
 This port may or may not be the port of departure in case of
countries that have strong inland water transportation system
 The exporter is responsible for preparing export -import
documents, getting goods inspected, custom clearance of cargo
and all freight charges onto the named port in the contract
 The unloading of the cargo at the named port shall be the
responsibility of the exporter and any subsequent loading and
unloading shall be the responsibility of the importer
 Risks and costs are transferred to the importer once goods are
delivered at named ports
 Application :
 Best used in case of deliver y of goods at the named port which is
a port behind the main ports i.e. dr y port connecting inland
water transportation
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


FOB – FREE ON BOARD (NAMED PORT OF SHIPMENT)
 Most popular term used in international trade logistics

 The exporter shall be responsible for delivering goods to the
named port of shipment and loading the goods on the arriving
ship appointed by the importer
 Once the goods are loaded on the buyer’s appointed ship , all
costs and risks shift from the exporter to the importer
 The exporter is under obligation for all responsibilities before
loading of goods on ship
 Application :
 FOB is most suited for both trading parties in an ideally
competitive situations when the exporter is responsible for
covering all responsibilities of logistics in his country and
subsequent obligations have to be covered by importer
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


CFR – COST AND FREIGHT
( NAMED PORT OF DESTINATION)
 The exporter is required to cover all costs related to customs

clearance of export shipment, appointing carriers , paying freight
charges and unloading the goods at the named port of
destination
 The exporter is responsible for all charges till discharging the
cargo from the ship , including all port and terminal charges
 The risk of the exporter shall be limited to the port of loading
 Once the cargo is loaded at the named port of departure, all
risks shifts to the importer from the exporter
 Hence the exporter procures insurance cover only upto the port
of loading and the freight and unloading charges are calculated
upto the port of destination
 Application :
 Suitable for full container load or full ship for one kind of cargo
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


CIF –COST ,INSURANCE AND FREIGHT
(NAMED PORT OF DESTINATION)
 The seller is responsible for making goods available at the
named port of destination but not for unloading them from
the ship
 It means the exporter is responsible for all expenses from the
point of origin to the port of clearance such as export
clearance, freight forwarder charges, export duties etc
 Application :
 Competitive business relations with equal obligations
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


CPT-CARRIAGE PAID TO (NAMED PLACE
OF DESTINATION)
 The responsibility of the exporter up to the delivery of the
goods at named place of destination which can be container
freight station, inland container depot, terminal
 The exporter shall be responsible for all expenses related to
carriage of goods from the point of origin to the place of
destination
 The importer shall be responsible for all risks from the point
of arriving means of transport
Application:
Most suitable for warehouse/dry port shipment
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


DAT-DELIVERED AT TERMINAL (NAMED
TERMINAL AT PORT)
 Delivered at terminal incoterms has been incorporated in the
2010 revision for the first time
 Under DAT, an exporter delivers the goods to the importer
after unloading them from the arriving means of transport at
the port
 The goods are placed at the disposal of the buyer
 All charges are covered by exporter
 Application:
 To fulfill the increasing need of containerization
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


DAP-DELIVERED AT PLACE ( NAMED
PLACE OF DESTINATION)
 The seller is responsible for all costs and risks until the
delivery of goods to the named place of destination which is
in importers country
 The importer is responsible for all costs and risks from the
point of unloading of cargo at the place of destination such as
customs clearance and subsequent transfer to the factory or
warehouse
 Application:
 When clearance is dependent on importers license for the
specific commodity
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


DDP –DELIVERED DUT Y PAID (NAMED
PLACE OF DESTINATION)
 The exporter has the highest obligations and responsibilities
as he has to bear all the costs and risks involved in delivering
the cargo to the named place of destination which is ideally
the warehouse or factory of importer
 All the expense from the point of origin of cargo to the point
of destination such as custom clearance, octroi or local taxes
 The exporter must of fer price rate that must be suf ficient to
incur for ensuring safe and secure delivery of cargo at the
importers premises
Application
 E-commerce
Clearan ng ng s
es es nc e

Paid CIP All
To
Terminal


CONTAINERIZATION AND
LEASING PRACTICES
CONCEPT EVOLUTION
 A container is a special box designed to carry freight in

international trade operations
ADVANTAGES
 Permits door to door service

 Flexibility of usage
 Ease in operations
 Increase logistical efficiency -quicker transit time
 Increased cargo security -reduce risk of cargo theft
 Lower packing needs
 Increasing trade volumes generates greater economies of
scale
DISADVANTAGES
 Highly capital intensive

 Associated hazards
 Additional cost on reverse logistics
 Unsuitability for logistical operations for all types of
containers
AIR CARGO CONTAINERIZATION
 Air cargo pallets

 Lower deck containers
 Box-type containers
CLASSIFICATION OF CONTAINERS
 Classification on the basis of use of raw material

Raw material used in the development of container generally
from iron or steel. For special purpose they are designed from
aluminium
 Classification on the basis of size and building structure-

As per international standard of organization dimensions height
width is designed
 Classification on the basis of their use

General cargo container-consolidation of break-bulk cargo
Thermal container –temperature controlled for specific cargo
T YPES OF THERMAL CONTAINERS
 Reefer container
 Insulated container
 Ventilated container
T YPES OF SPECIAL CONTAINERS
 Bulk container
 Tank container
 half height open container
 Open sided container
T YPES OF CONTAINERS ON THE BASIS OF
CARGO
 Flat container
 Bulk container
 Liquid container
 Gas container
 Bin container
OWNING, LEASING AND HIRING CARGO
CONTAINERS
 Long term lease – such type of container lease takes place when
the shipper needs the container for long period of time usually
three to five years. Under this lesser gives container to the
lessee without any additional ser vices for use and maintenance
of containers
 Trip lease – This type of lease is usually for short term, for a
single trip ,to and fro from the shipper premises to place of
destination for making goods available to buyers
 Financial lease – Shipping lines usually buy containers on the
financial lease from the manufacturers of containers . Under this
lease , the payment is made on monthly or annuities
 Master lease – Due to financial difficulties, sometimes financing
for the container business is not arranged. In such cases a large
organized dealer in container business can of fer the option of
managing the container fleet as well as by pooling of resources
of various lessees and also looking after the maintenance ,repair
and other ser vices for the containers
NETWORK LOCATION MODELS
MODELS/TECHNIQUES
• Location factor rating

• Center-of-gravity
• Load-distance
LOCATION FACTOR RATING
• Identify important factors

• Weight factors (0.00 - 1.00)
• Subjectively score each factor (0 - 100)
• Sum weighted scores
SCORES (0 TO 100)
LOCATION FACTOR WEIGHT Site 1 Site 2 Site 3
Labor pool and climate .30 80 65 90
Proximity to suppliers .20 100 91 75
Wage rates .15 60 95 72
Community environment .15 75 80 80
Proximity to customers .10 65 90 95
Shipping modes .05 85 92 65
Air service .05 50 65 90
Weighted Score for “Labor pool and climate” for

Site 1 = (0.30)(80) = 24
WEIGHTED SCORES
Site 1 Site 2 Site 3
24.00 19.50 27.00
20.00 18.20 15.00
Site 3 has the
9.00 14.25 10.80
highest factor rating
11.25 12.00 12.00
6.50 9.00 9.50
4.25 4.60 3.25
2.50 3.25 4.50
77.50 80.80 82.05
LOCATION FACTOR RATING WITH
EXCEL
LOCATION FACTOR RATING WITH OM
TOOLS
CENTER-OF-GRAVITY
TECHNIQUE
• Locate facility at center of movement in

geographic area
• Based on weight and distance traveled;
establishes grid-map of area
• Identify coordinates and weights shipped for
each location
GRID-MAP COORDINATES
y n n
 xiWi  yiWi
2 (x2, y2), W2 i=1 i=1
y2 x= n y= n
 Wi  Wi
1 (x1, y1), W1 i=1 i=1
y1
where,
x, y = coordinates of new facility at
3 (x3, y3), W3 center of gravity
y3 xi, yi = coordinates of existing facility i
Wi = annual weight shipped from
facility i
x1 x2 x3 x
CENTER-OF-GRAVIT Y TECHNIQUE
y
A B C D
700
C x 200 100 250 500
600 (135) y 200 500 600 300
B
W 75 105 135 60
500 (105)
Miles
400
D
300
A (60)
200 (75)
100
0 100 200 300 400 500 600 700 x

Miles
n
 xW
i i
i=1 (200)(75) + (100)(105) + (250)(135) + (500)(60)
x= = = 238
n 75 + 105 + 135 + 60
 W
i
i=1
n
 yW
i i
i=1 (200)(75) + (500)(105) + (600)(135) + (300)(60)
y= = = 444
n 75 + 105 + 135 + 60
 W
i
i=1
y
A B C D
700
C x 200 100 250 500
600 (135) y 200 500 600 300
B
W 75 105 135 60
500 (105)
Center of gravity (238, 444)
Miles
400
D
300
A (60)
200 (75)
100
0 100 200 300 400 500 600 700 x

Miles
CENTER-OF-GRAVIT Y WITH EXCEL
Formula for
x coordinate
CENTER-OF-GRAVIT Y WITH OM TOOLS
LOAD-DISTANCE TECHNIQUE
 Compute (Load x Distance) for each site

 Choose site with lowest (Load x Distance)
 Distance can be actual or straight-line
LOAD-DISTANCE CALCULATIONS
where,
LD =  ld i i
LD = load-distance value i=1

li = load expressed as a weight, number of trips or units
being shipped from proposed site and location i
di = distance between proposed site and location i
di = (xi - x)2 + (yi - y)2
where,
(x,y) = coordinates of proposed site
(xi , yi) = coordinates of existing facility
LOAD-DISTANCE
Potential Sites Suppliers

Site X Y A B C D
1 360 180 X 200 100 250 500
2 420 450 Y 200 500 600 300
3 250 400 Wt 75 105 135 60
Compute distance from each site to each supplier
Site 1 dA = (xA - x1)2 + (yA - y1)2 = (200-360)2 + (200-180)2 = 161.2
dB = (xB - x1)2 + (yB - y1)2 = (100-360)2 + (500-180)2 = 412.3
dC = 434.2 dD = 184.4
LOAD-DISTANCE
Site 2 dA = 333 dB = 323.9 dC = 226.7 dD = 170

Site 3 dA = 206.2 dB = 180.3 dC = 200 dD = 269.3
Compute load-distance
n
LD =  ld i i
i=1
Site 1 = (75)(161.2) + (105)(412.3) + (135)(434.2) + (60)(434.4) = 125,063
Site 2 = (75)(333) + (105)(323.9) + (135)(226.7) + (60)(170) = 99,789
Site 3 = (75)(206.2) + (105)(180.3) + (135)(200) + (60)(269.3) = 77,555*
* Choose site 3
LOAD-DISTANCE WITH EXCEL
=B7*C11+C7*C12+D7*C13+E7*C14
LOAD-DISTANCE WITH OM TOOLS
EXAMPLE-SELECT THE LOCATION
Location factor Weight Shanghai Hong Kong Singapore

Political stability 0.25 50 80 90
Economic 0.18 90 80 75
growth
Port facilities 0.15 60 95 90
Container 0.10 50 80 90
support
Land cost 0.08 90 50 30
Transportation 0.08 50 80 70
Trade Duties 0.07 70 90 90
Trade 0.05 70 95 95
regulations
Airline services 0.02 60 80 70
Area roads 0.02 60 70 80
EXAMPLE –DECIDE ABOUT THE
DISTRIBUTION LOCATION
Federal parcel service wants to build a new

distribution centre. The centre needs to be in the
vicinity of uncongested interstate-77, interstate -85
and international airport. The co-ordinates are given
below. Determine the best site
Interstate -77 Interstate -85 International Airport

X=14 X=20 X=30
Y=30 Y=8 Y=14
W=17000 W=12000 W=9000
EXAMPLE-IDENTIFY THE SITE FOR SUPPLY
DEPOT
 Division commanders are limited to three possible sites for
the supply depot . The co -ordinates are site 1(400,250),
site2(100,200) and site 3(200,500). Determine the best site
Supplier A Supplier B Supplier C

X=14 X=20 X=30
Y=30 Y=8 Y=14
W=17000 W=12000 W=9000
INVENTORY
MANAGEMENT IN TRADE
LOGISTICS
FRAMEWORK OF
INVENTORY
MANAGEMENT
FRAMEWORK OF INVENTORY
MANAGEMENT IN TRADE LOGISTICS
Evaluate existing Classify and rank Calculate inventory

trade logistics existing suppliers cost of existing
network and network trade logistics
network
New cost is less Evaluate the new Modify and

than existing cost inventory cost for restructure
the firm existing trade
logistics system
Integrate customer Leverage logistics Continuously strive

values to trade decision matrix for improving the
logistics system customer service logistics system
versus inventory
carrying cost
POINT OF IMBALANCE IN INVENTORY IN
INTERNATIONAL NETWORK
 Suppliers
 Third party logistics
 Shipping companies
 Manufacturer
 Wholesaler
 Distributor
 Retailer
T YPES OF INVENTORY
 Raw material inventory

 Work in process inventory
 Finished goods inventory
 Spares (Parts) inventory
MODELS OF INVENTORY
IN TRADE LOGISTICS
ON-SITE IMPORTERS
HUB MODEL OF
INVENTORY
MANAGEMENT
ON-SITE IMPORTERS HUB
 Importers prefer to have inventory at their site to maximise

their control on logistics and manufacturing and sales
 This model is popular in case of goods where in lead time of
logistics is very high
 As a drawback huge inventory carrying cost is attached to it
ON-SITE EXPORTERS
HUB
MODELS OF INVENTORY IN TRADE
LOGISTICS
On-site exporters hub
 This method is also known as supplier hub as the exporter

maintains the on-site inventory hub in the country of import
 APEDA - Agricultural and processed food export development

authority started the supplier hub in Amsterdam. Amsterdam-
based marketing to help increase the volumes
 Now APEDA is having inventory storage all across importing

countries like,
APEDA Dubai inventory storage
APEDA Japan inventory storage
APEDA USA inventory storage
MMTC-MINERALS AND METALS TRADING
CORPORATION LIMITED INDIA'S LARGEST
INTERNATIONAL TRADING COMPANY
 MMTC Limited is the largest international trading company in India and

has been in existence for almost five decades. India’s largest international
trading house has always strived to outper form its own past records.
Logistic Suppor t
 At the loading por ts, MMTC ensures proper receipt, stacking, quality
control and deliver y of the cargo into the vessels for shipment. The entire
arrangement guarantees deliver y of minerals & ores contracted round the
year.
 Most Indian por ts loading Iron ore are equipped with mechanical loading
facilities.
Destination of Expor ts
 MMTC expor ts Iron ore/Chrome Ore/Chrome Concentrate/Manganese Ore to
Japan, South Korea, China, etc. The expor t is both on the basis of long term
arrangement and spot contracts.
Leader In M ineral Expor ts
 MMTC's per formance in mineral trade has been acknowledged by the
CAPEXIL (Chemicals and Allied Products Expor t Promotion Council) by
conferring the nation's highest award for excellence in mineral expor ts 24 th
time in successi on.
ADVANTAGES OF MODEL
 Importers need not to tie up their working capital into

inventory
 Importers get an advantage of JIT
 Exporter gets opportunity to widen the market and give
prompt services that helps to increase volume and which in
turn sets the cost on managing inventory
OFF SITE SUPPLIERS
HUB MODEL OF
INVENTORY
MANAGEMENT
OFF-SITE SUPPLIERS HUB
 In certain cases , it is not possible to have warehouses or

suppliers hub for each importer or an importer market
 Exporters in such scenario, prefer to have of f -site suppliers
hubs clustering nearby territories to supply
 The advantage is economical as compared to keeping
inventory at locations
 In case of absence of demand ,goods can be exported to
nearby untargeted market wherein opportunity seen without
paying any duties
CONTEMPORARY
DEVELOPMENTS IN
INVENTORY
MANAGEMENT
CONTEMPORARY DEVELOPMENTS
 Just in time
 Vendor managed inventory
 Inventory tracking system
INVENTORY
MANAGEMENT
TECHNIQUES
INVENTORY MANAGEMENT TECHNIQUES
 EOQ
 Re-order level
 P-model
WAREHOUSING
CONCEPT
 A warehouse is an establishment meant for storage or

accumulation of exportable and importable goods
 Warehousing refers to the activities involving storage of goods

on a large scale in a systematic and orderly manner and
making them available conveniently when needed
 Warehouse is the location with adequate facilities where

volume shipments are received from particular centre ,broken
down, reassembled into combinations representing a
particular order or orders and shipped to the customers
location
WAREHOUSING A LOGISTICAL
CHALLENGE
 Maximum utilization of storage space
 Higher labor productivity
 Maximum asset utilization
 Reduce material handling
 Reduce operating cost
 Increased inventory turnover
 Reduced order filling time
NEED/BENEFITS FOR WAREHOUSING
 Mass production to ensure regular supply/to meet global

demand
 Nature of commodities generates need to be warehoused
 Seasonal production but regular consumption
 Regular production but seasonal consumption
 Storage to keep buf fer stock/ speculative purposes
 To reduce the distribution cost by unloading the goods in bilk
 Enables international marketers to serve customers on a real -
time basis
 Helps in stabilizing the prices
FUNCTIONS OF WAREHOUSING
 Protection of goods
 Stabilizes the prices
 Stores goods
 Equalizes demand and supply
 Facilitates distribution of cargo
T YPES OF WAREHOUSES
ON THE BASIS OF OWNERSHIPS
 Co-operative
 Private
 Public
 Contract
T YPES OF WAREHOUSES
ON THE BASIS OF SERVICES
 General merchandise
 Special commodity
 Cold storage
 Field godowns
 Yard storage
 Grain elevators
 Institutional
 Automated
 Climate- controlled
WAREHOUSE SITE SELECTION CRITERIAS
 Availability of Land and other Infrastructure

 Market
 Access
 Transportation cost
 Type of product
 Regulations
DOCUMENTS IN WAREHOUSING
 Warehouse warrant
 Dock warrant
 Dock receipt
 Delivery order
 Warehouse keepers certificate
DISCUSSION ON
TECHNOLOGY BASED
INNOVATIONS TAKING
PLACE INTO
WAREHOUSING

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INTERNATIONAL

Inputs or feedback Incoterms

 The exporter shall place the goods at the disposal of the

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

 In FCA shipping term , the exporter is under obligation to take

 Exporter will be responsible for Special export license in case

ITC-HS- Indian Trade Classification -Harmonised System

 FCA is best suited for air carriers

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

 The exporter is responsible for delivery of cargo to the named

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

 Most popular term used in international trade logistics

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

 The exporter is required to cover all costs related to customs

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

Ex Works EXW All S B B B B B B B B B B

Free Carrier FCA All S S S S/B B B B B B B B

"S" =Seller and "B"= Buyer

In mode "All" includes road, rail , air and seaway transportation.

 A container is a special box designed to carry freight in

 Permits door to door service

 Highly capital intensive

 Air cargo pallets

 Classification on the basis of use of raw material

 Classification on the basis of size and building structure-

 Classification on the basis of their use

• Location factor rating

• Identify important factors

Weighted Score for “Labor pool and climate” for

• Locate facility at center of movement in

0 100 200 300 400 500 600 700 x

0 100 200 300 400 500 600 700 x