CONCEPTS AND DEFINITIONS

 LOAD FACTOR
 Volume of traffic carried, generally expressed as a
percentage (%) form
 An important indicator of performance
 For passenger,
Load factor (%) = No of seats sold* x 100%
Total no. seat available
* no of seats with revenue

 For cargo,
Load factor (%) = Loaded ton-miles x 100%
Capacity ton-miles

 The nearer the LF is to 100%, the better is the degree

of utilization and return
 It should be measured over a period and compared
with target load factor
 CONCEPTS AND DEFINITIONS
 PAYLOAD/CARRYING CAPACITY
 Part of the total load which earns freight or fares – the
revenue
 The payload of a vehicle is the revenue earning
potential in terms of:
 the weight/cubic volume of freight
 the seats capacity,

which can be accommodated

 The payload/carrying capacity can be determined by:
 load bearing capacity & dimension of unit of carriage
 load bearing capacity of the way
 size of the terminal
 no of hours per day system in use
 CONCEPTS AND DEFINITIONS
 LOADABILITY
 Payload or carrying capacity is related to the loadability
 It relates to goods traffic’s characteristics
 It relates to the maximum utilization of vehicle capacity
 It relates on how well loads can be stowed on the vehicle
 Traffic with good loadability has the property of being
able to accommodate itself within & make maximum use
of space that is available in the vehicles, vessels, aircraft,
etc
 Eg. coal, flour, cement
 Density refers to the cubic capacity needed per ton
weight of the freight
 Loadability and density are connected and important if
maximum use is to be made of vehicle capacity
↑ density, ↑ loadability
 CONCEPTS AND DEFINITIONS
 OPERATING RATIO
 This is management statistics which can give some idea
of the efficiency of operations
 Operating costs are expressed as a percentage of revenue

Operating Ratio: Operating Cost x 100

Revenue

 The closer the ratio approaches 100, the less profitable

are the operations
 Eg
Operating ratio of 80% shows that 80% of the revenue
gained from the operation is use to cover its operating
costs.
Thus, the profit is only 20%
 CONCEPTS AND DEFINITIONS
 PASSENGER-MILES/KILOMETERS
 The output of tpt operation must be measured
 We can count up the pax carried but this gives no
indication of the distance traveled and distance covered
is a major part of the output
 It represents the no of pax multiplied by the miles
traveled.

 TON-MILES/KILOMETERS
 This applies to freight mvmt
 To get a true measure of output, the weight of the load
must be multiplied by the distance it is carried
 Eg 20 tons carried for 200 miles = 4,000 ton-miles
 CONCEPTS AND DEFINITIONS
 THE PEAK
 The time of the day, week, season or year when the demand
for tpt is greatest – Dd exceed the average
 Demand on 3 aspects
 Unit of carriage for pax and goods
 The way
 terminals
 The problem is the imbalance in traffic flows. Therefore
need more provision of tpt infrastructure & facilities. But at
off-peak – lead to under utilization of capacity
 Eg
Hours of peak- Morning & Evening
Working Hours: 7am – 9am, 4pm – 7pm
School Hours: Morning, Afternoon, Evening
Festive Seasons: Hari Raya, CNY, Xmas
 Ways to reduce problem of peak:
 Staggering of working hours
 Use of more suitable/larger vehicle
 Special discounts at off-peak hours
 CONCEPTS AND DEFINITIONS
 LIGHT RAIL TRANSIT
 “A metropolitan electric railway system, characterized by
its ability to operate single cars or short trains along
exclusive rights-of-ways; at ground level, on aerial
structures, in subways, or occasionally, in streets; and to
board/discharge pax at track or car-floor level”
 ‘Light’ refers to light volume, more than light weight
 Most effective capacity 5,000 – 15,000 pax/hr/direction
 Main features of LRT is flexibility. It is able to:
 Negotiate steep gradients and sharp curves
 Be built at ground level or above/below
 Can operate unsegregated, partially or segregated from other
traffic
 Average speed of trains: 40km/h
 Designed to operate economically in smaller cities and
specialization in larger cities
 Environmental-friendly
 Have effective breaking & acceleration – offer more
frequent stops than heavy rail trains
 CONCEPTS AND DEFINITIONS
 MONORAIL
 A metropolitan electric railway system which uses only
one rail, instead of two
 Two main types:
 Safeg (suspended by sturdy hangers from overhead rail)
 Alweg (rides on top of a concrete beam and wrap around the
beam; called the supported monorail/straddled type)
 Characterized by the use of exclusive guideways & vehicle
operated without driver on board
 Speed: 20km/h t max 60km/hr
 Average capacity: 2,600 p/hr/direction
 CONCEPTS AND DEFINITIONS
 SHIP’S TURNARAOUND TIME
 The time a ship spends in a port can be divided into 2
components:
 Waiting time
 Ship’s time at berth

Turnaround time = Waiting time + ship’s time at berth

 Time taken to load/unload vessels and send them back
or get them moving again

 Waiting time
 ‘the delay betw the ship’s arrival in port and its tying up at
berth’
 Can be quite long when no vacant berths are available:
 Congestion
 Tides are against the vessel
 Strikes or other similar events, etc
 However, it is only a small portion of turnaround time
 CONCEPTS AND DEFINITIONS
 SHIP’S TURNARAOUND TIME (cont.)
 Ship’s time at berth
 ‘The total time a vessel spends at the berth, whether:
 Loading/unloading cargo
 Just lying idle
 Measured in hours or days
 Important in terminal and interchange arrangements
because mvmt under load earns revenue, while time in
terminals incur costs
 Factors influencing ship turnaround time:
 Weather conditions
 Adequacy/availability of cargo handling/equipment/dock
labour/berth, cargo clearance and collection
 Type of vessel
 Nature of the cargo & suitability of cargo handling
equipment
 Transhipment cost
 Documentation
 Port layout
 CONCEPTS AND DEFINITIONS
 SHIP’S TURNARAOUND TIME (cont.)
 Importance of quick turnaround time:
 Profitability of port authority and shipowner
 Minimum fleet size realised through the aid of quick port
turnaround
 Maximum utilization of resources
 Development of international trade
 Encourage quick transit
 Optimal number of berth, minimum capital investment
 CONCEPTS AND DEFINITIONS
 DEMURRAGE
 A penalty payment made on buyers of tpt services or
consignee, charged by the operators (eg port authority)
over and above the charges for mvmt when vehicles are
out of revenue service due to slow unloading/loading by
buyer
 Charges of use of vehicles beyond given time
 Aim/purpose
To speed up terminal work and reduce turnaround time
Reduction in turnaround time → allow more ships to
berth at port and better utilisation of terminal and
wagons
 CONCEPTS AND DEFINITIONS
 SHIPS’S SIZE MEASUREMENT
 Various measurement are used in maritime tpt for the
size of vessels:
 Volume (Isipadu)
 Gross Registered Tonnage
 Net Registered Tonnage
 Tonnage (Berat)
 Deadweight Tonnage
 Lightweight Tonnage
 Displacement Tonnage

 Gross Registered Tonnage (GRT)

 Measure of total internal capacity/enclosed volume of a ship
 Expresses in Total Internal Capacity of the ship in tonnage
units of 100 cubic feet
 CONCEPTS AND DEFINITIONS
 SHIP’S SIZE MEASUREMENT (cont.)

 Net Registered Tonnage (NRT)

 Measure the total enclosed volume available for cargo and
passengers
 Earning capacity of ship, usually 60% - 65% of GRT
 Calculated by deducting from gross tonnage, those spaces which are
necessary for operating a vessel

NRT
= GRT – (master and crew spaces + water ballast spaces + machinery)
 CONCEPTS AND DEFINITIONS
 SHIP’S MEASUREMENT SIZE (cont.)

 Deadweight Tonnage
 Measure of the total carrying capacity of a ship with all its
contents when loaded down to her loadline
 Weight of cargo + weight of fuel, stored water ballast, fresh
water, crews, pax and baggage
 Can also be known from the total weight of water displaced
by ship when loaded to the maximum draught permitted

 Lightweight Tonnage
 Weight of the ship as built + boiler water, lubricating oil and
cooling water system (in unit of tonnes)
 Weight of ship alone without cargoes or passengers
 Importance when considering the value of a vessel which is
to be broken up for scrap
 CONCEPTS AND DEFINITIONS
 SHIP’S MEASUREMENT SIZE (cont.)

 Displacement Tonnage
 Measure of the actual weight of ship plus all of the content
 Lightweight + Deadweight Tonnage
 The displacement represents the amount of water displaced
by the ship, expressed in tons
 Weight of water displaced = weight of the ship
 CONCEPTS AND DEFINITIONS
 LINER CONFERENCE/SHIPPING
CONFERENCE
 A form of association of liner companies operating in the
same trade
 Basically a conference is simply a meeting of all lines,
serving any particular routes for the purpose of evolving
any regular pattern of sailing to give the max service to
shippers and to reach common agreements on routes
 Can be national and international level
 Two types of conference:
 Close conference
 members can only join with the consent of existing member
and the shipowner must have a permanent interest in the
shipping trade
 Applicants must also have sufficient financial b/grd
 Open conference
 No restriction but they must have agreement from the
majority of the members
 Applicants must also agree to the common tarif rates and
other conditions set by the conference
 CONCEPTS AND DEFINITIONS
 LINER SHIPPING

 Refers to the operation of a fleet of vessels which

provides a fixed services at regular advertised intervals
between named ports
 The owners offer space to cargo or accommodation to
passengers
 Must seek its own cargo, which originates mainly in
relatively small consignments from a multitude of
shippers
 This involves an expensive organisation ashore at all
ports which its sailing schedule covers
 Usually carry general cargo
 CONCEPTS AND DEFINITIONS
 TRAMP SHIPPING

 Does not operate in a fixed sailing schedule

 Merely trades in all parts of the world in search of cargo,
primarily bulk cargoes
 Eg coal, timber, grain, sugar, fertilizers
 Seasonal
 Much smaller organisation than liner cargoes
counterparts
 Tramp owners sell their services by means of an
agreement known as charter party
 The contract may be:
 For single voyage at so much per ton of the commodity
carried, or
 It may be for a period at a stipulated rate of hire
 CONCEPTS AND DEFINITIONS
 VOYAGE AND CHARTER PARTY

 Voyage charter is a contract for a specific voyage

 Time charter is a contract for a specified period of time
which may cover several voyages
 Two types of time charter
 The charterer hires the vessel all found
 Bareboat or demise charter – charterer supply fuel, crew and
paying all operating costs, etc for an agreed rate of hire

 Voyage charter is a short term while time charter is often

a long term
 CONCEPTS AND DEFINITIONS
 PIGGY BACK

 Although technically there are differences, most logistics

people refer to Trailer on Flat Car (TOFC) and Container
on Flatcar (COFC) as piggy back service
 This form of tptn involves the use of a motor carrier
trailer or a container that is placed on a rail flatcar and
transported between two or more terminals
 Temporary axles can be placed under the containers so
that they can be delivered by truck
 At the terminal, a truck/prime mover performs the
pickup and delivery functions
 Piggy back services thus combine the low cost of long
haul rail mvmt with the flexibility and convenience of
short haul truck tptn