INTERNATIONAL LOGISTICS

MANAGEMENT
Introduction on Logistics
• The term "logistics" originated from an ancient Greek word
meaning ratio, calculation, reason, or oration.
• The planning, implementation, and coordination of the details of 
a business or other operation.
• The term logistics was first used by the military to describe the
activities associated with maintaining a fighting force in the battle
field and in its strictest sense, to describe the housing of troops
• A logistics system consists of a set of facilities linked by transportation
services.
• These transportation services move materials between facilities using
vehicles and equipment including trucks, tractors, containers, cars,
and trains. 
• Logistics is concerned with the organization, movement, and storage
of material and people.
Importance of Transport
• Transportation concern the movement of products from a source such
as plant, factory, or workshop to a destination such as warehouse,
customer, or retail store.
• Transportation may take place via air, water, rail, road, pipeline, or
cable routes, using planes, trains, trucks.
• The goal for any business owner is to minimize transportation costs
while also meeting demand for products.
Modes of transportation

• 1- Road Transport
• 2- Ocean Transport
• 3- Railways Transport
• 4- Airway Transport
Road Transport

• Cargo can’t be handled in every part of the country through

railway.
• Roadway plays a major role in handling cargo even in small
town.
• Roadways transportation is done through Lorries/Trucks
• There are a No. of lorries having different capacities
Types of vehicles
 Trucks with semi-trailers
• The car consists of a saddle truck and a semi-trailer
• Measurements of the semi-trailer are 13,6 x 2,45 x 2,7 meters (there
can be some variations)
• Maximum load-carrying capacity is 24000 kg
• Semi-trailer can capacitate up to 33 EUR pallets or 26 FIN pallets
• Capacity is 90m3
• Mostly suitable for goods that are packed on pallets
• The goods can be loaded either through the back, the side or the roof
 Trucks with full trailers
• The car consists of a saddle truck and two separate parts of trailers
• The length of the trailers is usually 7,3m plus 8,1m (there can be some variations)
• The allowed maximum length of both trailers is 15,65m
• The maximum load-carrying capacity is 24000kg
• Capacity is 110-120m3
• Full trailer can capacitate either 38 EUR pallets or 30 FIN pallets
• Full trailer is best suitable for goods with volume but light in weight (pillows, blankets,
wool, soft furniture etc.)
• The goods can be loaded either through the back, the side or the roof
 Trucks with jumbo (mega-) trailers
• The car consists of a saddle truck and a jumbo trailer
• The measurements of the jumbo trailer are 13,6 x 2,45 x 3m (the first 4 meters of
the jumbo trailer has lower height of 2,6m)
• The maximum load-carrying capacity is 24000kg
• The jumbo trailer can capacitate up to 33 EUR pallets or 26 FIN pallets, out of
which 23 EUR or 18 FIN pallets can be loaded up to 3 meters in height
• The capacity of the jumbo trailer is 96m3
• Suitable for lightweight and voluminous goods
• The goods can be loaded either through the back, the side or the roof
 Tail-lift truck
• Tail-lift truck is equipped with a lifting mechanism which can be used to load the
goods onto the truck
• Depending on the type of the tail-lift, the maximum weight load is from 500 to
2000 kg
• The cargo space in the truck is 7-9 x 2,45 x 2-2,5 meters (there are numerous
variations)
• Tail-lift truck can capacitate up to 18-20 EUR pallets or 14-16 FIN pallets
• The goods can be loaded only through the back of the truck
• Used mainly on distribution freights
Sea transport
• Waterway Is the cheapest means of transportation.
• Large volume of world trade is done through ships.
• Ships handle cargo from country to other through sea
• Large homogeneous parcels such as iron ore, coal and grain are
carried by the bulk shipping
• Industry, small parcels of general cargo are carried by the liner
shipping
• Industry and specialised cargoes shipped in large volumes are
transported by the specialized shipping industry.
Dry Container
Flat Rack Container
Open top container
Ventilated cargo
Refrigerator Container High Cube Container

20 foot Tank Container

Different Types of vessels
• Dry Cargo Ships:
• Bulk Carriers: ...
• General Cargo Vessels: ...
• Container Vessels: ...
• Reefer Vessels: ...
• Ro-Ro Vessels: ...
• Liquid Cargo Ships:
• Crude Carriers:
How Shipping Containers are Constructed

• Containers are fabricated from 4mm(⅜") thick non corrosive steel, square tubing frame. The sides
are constructed from14 gauge,(.075") non corrosive rolled steel, that is corrugated to add rigidity
and welded to the steel frame. The floor is made of the same square 4mm steel tubing used for the
frame and a plywood floor 28mm (1 ⅛") is screwed to the cross braces. The corner posts are
designed to withstand 153,000 pounds allowing the containers to be stacked 9 high. With a 7'2" x
7' 6" door opening at one end. A standard container is 20' X 8' x 8'6" but 40-foot and 45-foot are
just as common. An empty 20-foot container weighs approximately 5,500 pounds and can carry
65,000 pounds of goods.
• Cargo statistics are calculated in TEU, which stands for twenty foot equivalent units. The 40 foot
container is considered 2 TEU's . With the arrival of the new super freighters the sizes
of containers are increasing as well, with some as long as 57-feet
Interesting tidbit: The Euro Zone is hesitant to adopt the larger sizes because of older less
navigable narrow streets in many European cities. Preventing the large trucks from making turns
and causing congestion.
 Export supplies under GST
• Though as per Trade notice 9 dated 12.06.2017 issued by ministry of commerce & industry, DGFT system will undertake
this migration & the existing IEC holders are not required to undertake any additional exercise in this regard, exporters
should take utmost care to check whether the authority correctly updated the IEC or not. It will ensure flawless import-
export procedure under GST.
• Registered person should submit a bond or Letter of Undertaking (LUT), prior to export. [Refer rule 96A para 1]
• The said bond or LUT to be submitted to the Jurisdictional DC/AC in FORM GST RFD -11 either through online or offline
mode.
• Exporter to generate GST invoice as per section 31 & Rule 41 of CGST Rules 2017, mentioning GSTIN number.
• The said supply will reflect in GSTR -1 for the month having details of invoice no. & GSTIN.
• The details of the export invoices contained in FORM GSTR-1 furnished on the common portal shall be electronically
transmitted to the system designated by Customs and confirmation that the goods covered by the said invoices have
been exported out of India shall be electronically transmitted to the common portal from the said system
• Shipping bill forms have also been modified to capture details such as GSTIN, export GST invoice number etc. The
exporter shall declare item wise taxable value & corresponding IGST on the shipping bill.
• For services, realization of convertible foreign exchange is the criteria. Exporter of Services need to feed relevant details
to effect the same in GSTR -1
• Once export takes place, exporter will file for EGM (Export General Manifest). The confirmation of export details by
Customs shall be made accordingly once EGM is filed.
• Exporters are required to provide shipping bill details, BRC, GST invoice no. etc. in GSTR -1 once export is confirmed by
Customs.
• The information provided in GSTR-1 with regard to export of goods shall be validated by the customs EDI system to confirm
export.
• All the validation related to IGST refund or flow of IGST credit or generation of proof of export shall happen electronically
between Customs EDI & GSTN server.
• Taxpayers (exporters) shall be granted refund of IGST paid by him on the exported goods based on the above validation by
Customs EDI system. This validation will also act as the proof of export in case the exporter has made the supply under bond
or LUT.
• Time limit for export as per Rule 96A is:
• 3 months from the date of issue of invoice for Goods
• 1 year, or such further period as may be allowed by the Commissioner, from the date of issue of the invoice for export, if the payment of such
services is not received by the exporter in convertible foreign exchange
• Where the goods are not exported within the time specified above, the exporter needs to pay applicable duty along with
interest 15 days after the expiry of 3 months or 1 year as the case may be.
• Where the goods are not exported within the time specified and the registered person fails to pay the amount mentioned in
the said sub-rule, the export as allowed under bond or Letter of Undertaking shall be withdrawn forthwith and the said
amount shall be recovered from the registered person in accordance with the provisions of section 79.
• The export as allowed under bond or Letter of Undertaking withdrawn shall be restored immediately when the registered
person pays the amount due
• It may be seen that as per provision of GST law, the export as allowed under the bond or LUT shall be withdrawn forthwith
in case IGST with interest thereon is not paid within the period indicated above
• The provisions shall apply, mutatis mutandis, in respect of zero-rated supply of goods or services or both to a Special
Economic Zone developer or a Special Economic Zone unit without payment of integrated tax