Globalization refers to the shift toward a more integrated and interdependent world economy

Globalization has two side, The globalization of markets and production.

The globalization of markets refers to the merging of historically distinct and separate national markets
into one huge global marketplace.

The globalization of production refers to the sourcing of goods and services from locations around the
globe to take advantage of national differences in the cost and quality of factors of production like land,
labor, and capital.

Maritime logistics refers to the planning, coordination, and management of the movement of goods,
services, and information across maritime transport networks, ensuring efficient and cost-effective global
trade operations.

supply chain management relate to the coordinated management of the various functions in charge of
the flow of materials from suppliers to an organization through a number of operations across and within
the organizations, and then reaching out to its consumers.

Net-work factors Model of logistics structures the supply network around three main factors Flow of
materials, Flow of information, Time taken to respond to demand from source of supply.

Material flow of the physical goods from suppliers through the distribution centers to stores

Information flow of demand data from the end-customer back to purchasing and to suppliers, and supply
data from suppliers to the retailer, so that material flow can be accurately planned and controlled.

Net-work Structure comprises three main functions:

Distribution

Network and capacity planning the task of planning and implementing sufficient capacity in the supply
chain to ensure that the right products can be procured in the right quantities now and in the future

Supply Chain Development The task of improving supply chain so that its processes are stable and in
control, that it is efficient, and that it is correctly structured to meet the logistics needs of material flow
and information flow.

Supply Chain Drivers Facilities, Inventory, Transportation, Information, Sourcing, Pricing

Facilities are physical locations in the supply chain for storage, assembly, or fabrication, impacting
performance through role, location, capacity, and flexibility decisions.

Inventory includes raw materials, work in process, and finished goods, impacting supply chain efficiency
and responsiveness.

Transportation moves inventory across the supply chain, with mode and route choices impacting
responsiveness and efficiency.

Information drives supply chain performance by influencing facilities, inventory, transportation, costs,
and customer decisions for efficiency and responsiveness.
Sourcing determines who performs supply chain activities, impacting efficiency, responsiveness, and the
balance between in-house operations and outsourcing.

Pricing sets the cost of goods and services in the supply chain.

Maritime logistics consists of three key players

Shipping – Moves goods between ports and offers services like pickup, delivery, special handling,
container tracking, and intermodal services.

Port/Terminal Operations – Handles cargo loading/unloading, storage, packing, warehousing, and

Freight Forwarding – Manages vessel reservations, documentation for ocean carriage, customs,
insurance, inventory management, packing, and warehousing.

Maritime Logistics Value refers to the system's ability to meet customer demands by efficiently
managing the flow of goods, services, and information. It is measured by:

Efficiency – Reducing lead time and business costs.

Effectiveness – Enhancing service quality through flexibility, responsiveness, and reliability.

Firms must identify customer needs to maximize value in maritime logistics.

NVOCC Freight forwarders act as NVOCCs (Non-Vessel Operating Common Carriers) by utilizing
VOCC (Vessel Operating Common Carrier) space to offer maritime transport services without owning
ships. This setup allows flexible integration of sea and land transport to meet shippers' needs. Example:
PNSC issuing B/L.

Freight Forwarder: A company that arranges and manages the transportation of goods for shippers,
handling logistics and customs.

Export Haulage: Transport from shipper to warehouse.

Items Checkpoint: Inspection of goods.

Export Customs Clearance: Customs clearance for export.

Import Customs Clearance: Customs clearance at the destination.

Destination Arrival & Handling: Arrival and documentation management.

Import Haulage: Transport from warehouse to final destination.

Import & export documents

Invoice, packing list (GD List – Goods Declaration List), Bill of lading, Copy of the Letter of Credit or
Contract, Copy of the Sales Tax Registration Certificate as an importer, Copy of the National Tax
Number, Copy of the most recent sales tax return, E-form (for export only), EIF (Electronic Import
Form).
Foreign Exchange There is foreign exchange risk to someone in every international transaction – even
those payable in U.S. dollars

Four Basic Risks

Fluctuation risk, Transaction risk, Economic risk vs competitors, Translation risk

Common Uses of Foreign Exchange

Transactions, Precautionary hedges, Speculative positions, foreign investments

Customs: Taxes on goods imported or exported across borders.

Excise: Taxes on goods produced or consumed domestically, like alcohol and tobacco.

Criteria for Selecting Int’l Transportation

The first decision is choosing the mode of transport (air, land, or water). The second is selecting a carrier,
as services and costs vary. Some products require a specific mode due to their characteristics, while others
need careful analysis to determine the best option.

Advantages of Intermodal Transportation

Intermodal transport offers seamless door-to-door service, with operators handling all transport segments.
Consolidation reduces costs by increasing economies of scale. Container vessels are more cost-effective
per ton-mile than traditional vessels, and container terminals have lower loading/unloading costs
compared to manual handling.

Air Transport

Advantages: Fast, reliable for long-distance hinterland links, ideal for high-value goods.

Disadvantages: High cost, limited capacity, affected by weather and far from hinterland areas.

Land Transport (Road)

Advantages: Flexible, direct access to hinterland, door-to-door service.

Disadvantages: Limited by infrastructure, traffic delays, less efficient over long distances.

Land Transport (Rail)

Advantages: Cost-effective for bulk goods, good for hinterland access, eco-friendly.

Disadvantages: Fixed routes, slow, requires further transport to final destination.

Water Transport

Advantages: Cost-effective for bulk, efficient for coastal hinterlands, eco-friendly.

Disadvantages: Slow, dependent on ports, requires further land transport to inland areas.

Pipeline Transport

Advantages: Low cost, continuous flow, ideal for liquids/gases, direct hinterland connection.
Disadvantages: High setup cost, limited flexibility, vulnerable to damage