The behind of PETRONAS

PETRONAS is well known as the biggest manufactory oil in Malaysia. PETRONAS' Logistics and Maritime Business is mainly undertaken by shipping subsidiary, MISC Berhad. MISC is Malaysia's leading international maritime corporation. The principal businesses of MISC consist of ship owning, ship operating, other shipping related activities, owning and operating of offshore floating facilities as well as marine repair, marine conversion and engineering and construction works. MISC has grown from being purely a shipping line in 1968 to become a fully integrated maritime, offshore floating solutions, heavy engineering and logistics services provider. This was brought about when MISC became a subsidiary of PETRONAS in 1998, a move that produced synergistic benefits especially in the field of oil & gas transportation. As a subsidiary of PETRONAS, MISC adds value to petroleum and LNG business by providing the Group with reliable transport and logistics support as well as the flexibility to trade the products in the international markets. Its modern and well-diversified fleet of more than 130 vessels with a combined tonnage of more than 13 million deadweight tons (DWT) traverses the globe, calling at most major ports around the world. Through its subsidiary, Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), MISC has also built a strong foundation in the marine and heavy engineering industry. Today, MHB is well on its way to become a center of choice for marine repair undertaking the repair and maintenance of LNG carriers, Very Large Crude Carriers (VLCC), Ultra Large Crude Carriers (ULCC) and other marine vessels and marine facilities. Its marine conversion and engineering and construction business also offers a range of construction and engineering services of oil and gas production facilities, contributing in particular to the development of PETRONAS' deep water operations. MISC also offers total logistics services which include Freight Management, Transportation and Warehousing services through its wholly owned subsidiary, MISC Integrated Logistics Sdn Bhd (MILS). MILS' specialized Project Logistics and Supply Chain Management unit serve the upstream and downstream logistics requirements of PETRONAS and the global energy industry.

Downstream (Oil and Petrochemicals)

Oil

PETRONAS adds value to the crude oil produced by their exploration and production operations through their integrated oil business that encompasses refining, marketing, trading and retail operations. Comprising a range of significant grades from various regions, the crudes are traded and marketed internationally as well as processed into petroleum products at their refineries for both domestic and export markets. They own and operate four refineries with a total refining capacity of more than 448,000 barrels per day. The petroleum products from these refineries are marketed through their network of service stations in several countries, including in Indonesia, Malaysia, South Africa, Sudan and Thailand.

Petrochemicals

PETRONAS’ venture into the petrochemical industry adds further value to the nation’s gas resources. They partner foreign multinational companies to acquire the best petrochemical expertise and technological know-how. With adequate feedstock via the Peninsular Gas Utilisation (PGU) pipeline, PETRONAS is positioning Malaysia to be a competitive petrochemical hub with the establishment of two integrated petrochemical complexes (IPCs) with superior logistics and infrastructure capabilities. The Kertih IPC and the Gebeng IPC provide ready sites for petrochemical plants with the provision of industrial gases and utilities via the Centralised Utility Facilities, ports and a railway link for a more efficient delivery system. Since 1992, the IPCs have grown to become home to more than 20 petrochemical plants. The IPCs are aimed to enhance competitiveness through the establishment of synergistic linkages and integration both within plants as well as between common infrastructure and support facilities, making the entire manufacturing process more cost effective and efficient. PETRONAS is also promoting the plastics manufacturing sector by developing the Kertih Plastics Park to take advantage of readily available feedstock from the adjacent IPC. PETRONAS’ subsidiary, PETRONAS Chemicals Marketing Sdn Bhd (PCM), markets and trades their petrochemical products to both Malaysian and international customers.

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RELATIONSHIP MANAGEMENT

                                 
Relationship management is a professional who works to improve a firm's relationships with both partner firms and customers. Relationship management is generally divided into two fields’ customer relationship management and business relationship management. Both fields share the common goal of facilitating good relationships such that the business maximizes the value of its relationships and maintains a good reputation overall.

Relationship management also is one of the most important management systems that should be in place and as such it should be clearly documented both in policy and in practice. It uses its own virtuous action cycle that acknowledges the joint nature of the effort and ensures that performance increases become inevitable.

In relationship management the partners review the quality of their collaborative relationship and its achievements, adjust their way of working to keep their relationship in step, agree improvements to their processes and behaviors and operate together. Many advantage can we get when we implement the relationship management

.

Besides that, by formally managing the essential activities of the joint enterprise it becomes proactive and responsible. It must be supported by objective relationship performance measures that create clear joint

understanding between partners to time, cost and quality. This management system has the ability to always capture joint value within your collaborative business relationships.

Relationship management has the opportunity to create positive or negative customer perceptions based on how well the delivery process is performed. Taking these facts into consideration, it is easy to see that managing relationships between buyers and sellers of transportation services is a process that is critical to successfully meeting the transportation requirements of an organization. This section will discuss the different types of relationships that firms can be involved in, with special attention given to contracts and partnerships. Also discussed will be the concepts of outsourcing and third parties.

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THE INFORMATION TECHNOLOGY IN LOGISTICS PROCESS

 In logistic information, there several  types of system is use in order to smooth the logistics operation which is firstly RFID (Radio Frequency Identification) is involved in packaging, handling, storage, and transportation. RFID is an automatic identification method, relying heavily on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is a small object that can be attached to or incorporated into object, person or any appropriate design logistic item. There are several forms of identification, but the most common is to store a serial number that identifies the person or objects, and perhaps other information, on a microchip that is attached to an antenna (the chip and antenna together are called an RFID transponder or an RFID tags).The antenna enables the chip to transmit the identification data to a reader. The reader converts the radio waves reflected back from RFID tag into digital information that can then be transmitted to computers that can make use of it.

          The purpose of an RFID system is to enable data to be transmitted by a mobile device, called a tag which is read by an RFID reader and processed according to the requirements of the specific application. The data transmitted by the tag may provide identification or location information, or other specific about the item tagged, such as price, colour, and dates of purchase. The utilization of RFID in logistics has expanded dramatically because its ability to track objects moving within the logistics infrastructure. Besides, the Electronic Commerce. It is the term used to describe the wide range of tools and techniques utilized to conduct business in a paperless environment. Electronic commerce therefore includes electronic data interchange, e-mail, electronic fund transfers, electronic publishing, image processing, electronic bulletin boards, shared databases and magnetic or optical data capture. Companies are able to automate the process of moving documents electronically between suppliers and customers.

          Next, Electronic Data Interchange. Electronic Data Interchange (EDI) refers to computer-to-computer exchange of business documents in a standard format. EDI describe both the capability and practice of communicating information between two organizations electronically instead of traditional form of mail, courier, and fax. The benefits of EDI are:

1. Quick process to information.
2. Better customer service.
3. Reduced paper work.
4. Increased productivity.
5. Improved tracing and expediting.
6. Cost efficiency.
7. Competitive advantage.
8. Improved billing.

          Though the use of EDI supply chain partners can overcome the distortions and exaggeration in supply and demand information by improving technologies to facilitate real time sharing of actual demand and supply information. Another information technology is a Bar coding and Scanner. Bar code scanners are most visible in the checkout counter of super market.  This code specifies name of product and its manufacturer. Other applications are tracking the moving items such as components in PC assembly operations, automobiles in assembly plants. Data warehouse is a consolidated database maintained separately from an organization’s production system database. Many organizations have multiple databases. A data warehouse is organized around informational subjects rather than specific business processes. Data held in data warehouses are time dependent, historical data may also be aggregated.

          Next is Enterprise Resource planning (ERP) tools. Many companies now view ERP system for example Baan, SAP, People soft as the core of their IT infrastructure. ERP system have become enterprise wide transaction processing tools which capture the data and reduce the manual activities and task associated with processing financial, inventory and customer order information. ERP system achieve a high level of integration by utilizing a single data model, developing a common understanding of what the shared data represents and establishing a set of rules for accessing data.

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CARRIERS STRATEGIES

                 

    There are five types of carriers’ strategies that are operating strategies, technology and equipment, the hub-and-spoke route system, marketing and coordination. But, I will explain about operating strategies only. The operating strategies are the rule of efficiency states that it is most efficient to move in a continuous straight line whenever possible. This rule describes the most efficient movement of goods and people. (a) Intermediate handlings should be minimized. This rule of thumb bears special attention when a different transportation firm meets as part of a through move. Rail transports often use run-through trains with the engines and cars remaining intact in interline moves to minimize interchanges time loss. (b) The full capacity of the transportation vehicle should be maximized on each run. Transportation costs of trucks, trains, ships and plane are similar in that the costs of personnel, depreciation, licenses and taxes are relatively fixed costs that are incurred for each run. Each trip should be fully utilized by consolidation cargo with other shippers. (c) Consolidation and break-bulk activities should be used to achieve full capacity for long-haul movement. One means of attaining full equipment use is to use a pickup and delivery network to accumulate freight for the line-haul efficiency. Trucking firms do this with city vehicles that bring different shipments to a terminal for sorting, accumulation and shipping in a bulk quantity to the destination city terminals. For example, shipment from Johor Bahru to Perlis must be fully utilized then do break-bulk. It also can save cost, cost per unit become lower and it also can save time. (d) Empty mileage should be minimized. The cost of moving an empty vehicle is almost that of moving a loaded one without the offset of revenue. Energy is a major cost in transportation systems. In very few instances can a firm afford one-way loaded movements with empty return hauls. The truck is fully loaded by cargo. No empty movement and make sure return to Malaysia with a cargo back. (e) Movements should be scheduled and dispatched so as to fully use labour and equipment in line with the market. Transportation service cannot be stored it is because the service must be in place for the market. This rule calls for the optimal equipment levels to be in place with the required personnel. The transportation should be in scheduled. Neither the equipment nor the required labour should delay the move. For example, a waste occurs when crews arrive for work and there is no equipment available for the trip or little freight to be handled that day.

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UNDERSTANDING FREIGHT CHARGES

Freight charges are the costs entailed in transporting goods from one geographical location to another. They can include packaging and insurance costs in addition to various transportation charges. Some types of freight charges are incurred by the seller and some are incurred by the buyer. 

A combination of transport methods is often used in order to move purchased goods from one location to another. For example, when a customer purchases books from an online retailer, he may choose to have them shipped overnight. The seller will often enlist the services of a shipping company that will first use a truck or van to transport the package to an airport facility. A plane will then be responsible for transporting the package to the nearest delivery facility, where it will once again be delivered to the customer's address by van or truck. 

In this type of situation, the seller must pay the shipping company to ensure that its goods reach the consumer by the agreed upon delivery date. Most of the time, the customer will reimburse the seller for the freight charges at the time of purchase. This is what is sometimes referred to as free on board destination, where the seller actually continues to own the goods while they are being transported. If for some reason they do not reach the customer, he is not responsible for payment and the seller must file a claim with the shipping company. 

Sometimes sellers will offer to waive freight charges as a special promotion. This may be done to entice first-time purchases or a certain volume of purchases. The amount of profit that the seller makes from the sale of its goods more than makes up for the shipping costs.   

Certain types of freight charges incur higher costs than others. Ground transportation in the form of rail or trucks is usually considered to be the least expensive, although it can also take the longest. Some retailers offer to waive freight charges if customers choose to have the goods delivered to one of their store locations. They utilize their existing channels of distribution in order to move goods from one location to another, which does not result in any increased costs for the company or the customer. Company owned trucks that are already transporting other goods to the store location may be used to accomplish this. 

When goods are transported, packaging and insurance is a concern. The shipping company may allow customers and businesses to purchase supplemental insurance and delivery verification services for an additional fee. Some companies include these in the standard shipping rate. Packaging and labeling is usually included in the standard freight charge.

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MARKET STRUCTURE

The focus of this post today is regarding the market structure. There are four types of market structure which are pure competition, perfectly monopolistic market, monopolistic competition and also oligopoly.

Let first discuss about the perfect or pure competition. Perfect competition is rare in the real world, but the model is important because it helps analyze industries with characteristics similar to pure competition. Examples of perfect competition are stock market and agricultural industries. There are many characteristics of this type of market structure. The first one is there are having many sellers in this competition. But since they are having enough buyers in this competition, a single seller’s decision has no impact on market price. The products also can be categorized as homogenous or standardized products which mean that each seller’s product is identical to its competitors. The sellers in perfect competition also known as the price takers as individual firms must accept the market price and can exert no influence on the price. Lastly is this type of market structure also offered free entry and exit concept where there is no significant barriers that could prevent firms from entering or leaving the industry.

Next is the perfectly monopolistic market or pure monopoly. Perfectly monopolistic exists when a single firm is the sole producer of a product for which there are no close substitutes. For the examples is Telekom Nasional Berhad (TNB) or Kereta api Tanah Melayu Berhad (KTMB). The characteristic of perfectly monopolistic is, the first one, the perfectly monopolistic structure is conquered by one organization or can be said as single seller where the firm and industry are synonymous. The product also can be categorized as a unique product as there are no close substitutes for the firm’s product. For example is ASTRO , there are no other companies that offered the same service in Malaysia. Next, the firm is the price maker as they are free to fix the price. Lastly, to enter or exit the market, it is very strict or could be said that the entry or exit is blocked. This is due to the high requirements and the large investment needed.

The third market structure is the monopolistic competition. Monopolistic competition is refers to a market situation with a relatively large number of sellers offering similar but not identical products. For example is the fast food restaurant such as KFC or Pizza Hut or clothing stores likes Padini Concept Store or Nike. The first characteristics of this type of market structure is there are many sellers in the market but not as many as perfect competition and each of the firm has a small percentage of the total market. In the term of product, it could be said that this market structure is having a differentiated products where there are variety of the product which makes this model different from perfect competition market structure. The product can be differentiated in style, brand name, location, advertisements, packaging, etc. It is also easy to enter or exit the market but not as easy as perfect competition.

The last one is the oligopoly structure. Oligopoly exists where there are few large firms producing a homogenous or differentiated product dominate a market. The examples are automobile company like Proton or gasoline industries such as Petronas or BHP. For oligopoly, there are having only a few large firms where each must consider its rivals’ reactions in respond to its decisions about prices, output and advertising. In this market structure, they are producing standardized or differentiated products. For the price, it is determine by two ways where the first one is based on price leader. The price leader is the company who dominate the market and the price stated will be follow by the others firms. The second way is based on cartel. Cartel is a non-profit organization or associations. The entry into this market also hard as it needs a huge capital investments which could be said as the main barrier to enter this market.

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CONTAINERIZATION

WHAT IS CONTAINERIZATION


Containerization is a system of intermodal freight transport using intermodal containers (also called shipping containers and ISO containers) made of weathering steel. The containers have standardized dimensions. They can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another container ships, rail transport flatcars, and semi-trailer trucks without being opened. The handling system is completely mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems.

Containerization greatly reduced the expense of international trade and increased its speed, especially of consumer goods and commodities. It also dramatically changed the character of port cities worldwide. Prior to highly mechanized container transfers, crews of 20–22 longshoremen would pack individual cargoes into the hold of a ship. After containerization, large crews of longshoremen were no longer necessary at port facilities, and the profession changed drastically.

Meanwhile, the port facilities needed to support containerization changed. One effect was the decline of some ports and the rise of others. At the Port of San Francisco, the former piers used for loading and unloading were no longer required, but there was little room to build the vast holding lots needed for container transport. As a result, the Port of San Francisco virtually ceased to function as a major commercial port, but the neighboring port of Oakland emerged as the second largest on the US West Coast. A similar fate met the relation between the ports of Manhattan and New Jersey. In the United Kingdom, the Port of London and Port of Liverpool declined in importance. Meanwhile, Britain's Port of Felixstowe and Port of Rotterdam in the Netherlands emerged as major ports. In general, inland ports on waterways incapable of deep-draft ship traffic also declined from containerization in favor of seaports. With intermodal containers, the job of sorting and packing containers could be performed far from the point of embarking.

CONTAINER LOADING

1.FULL CONTAINER LOAD

A full container load (FCL) is an ISO standard container that is loaded and unloaded under the risk and account of one shipper and only one consignee. In practice, it means that the whole container is intended for one consignee. FCL container shipment tends to have lower freight rates than an equivalent weight of cargo in bulk. FCL is intended to designate a container loaded to its allowable maximum weight or volume, but FCL in practice on ocean freight does not always mean a full payload or capacity.

2.LESS-THAN-CONTAINER LOAD

Less-than-container load (LCL) is a shipment that is not large enough to fill a standard cargo container. The abbreviation LCL formerly applied to "less than (railway) car load" for quantities of material from different shippers or for delivery to different destinations carried in a single railway car for efficiency. LCL freight was often sorted and redistributed into different railway cars at intermediate railway terminals en route to the final destination.

LCL is "a quantity of cargo less than that required for the application of a carload rate. A quantity of cargo less than that fills the visible or rated capacity of an inter-modal container."It can also be defined as "a consignment of cargo which is inefficient to fill a shipping container. It is grouped with other consignments for the same destination in a container at a container freight station".

OTHER USES FOR CONTAINERS

Shipping container architecture is the use of containers as the basis for housing and other functional buildings for people, either as temporary or permanent housing, and either as a main building or as a cabin or workshop. Containers can also be used as sheds or storage areas in industry and commerce.
Containers are also beginning to be used to house computer data centers, although these are normally specialized containers.

There is now a high demand for containers to be converted in the domestic market to serve specific purposes. As a result, a number of container-specific accessories have become available for a variety of applications, such as racking for archiving, lining/heating/lighting/powerpoints to create purpose-built secure offices, canteens and drying rooms, condensation control for furniture storage, and ramps for storage of heavier objects. Containers are also converted to provide equipment enclosures, pop-up cafes, exhibition stands, security huts, and more.
Public containerised transport is the concept, not yet implemented, of modifying motor vehicles to serve as personal containers in non-road passenger transport.

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Importance Of Freight Forwarders

Firm specializing in arranging storage and shipping of merchandise on behalf of its shippers. It usually provides a full range of services including: tracking inland transportation, preparation of shipping and export documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo insurance, and filing of insurance claims. Freight forwarders usually ship under their own bills of lading or air waybills and their agents or associates at the destination provide document delivery, deconsolidation, and freight collection services also called forwarder.

Transshipment is an essential feature of modern container operations. Due to high operation costs, large container ships usually serve only a few so called ‘hub ports’. The carriage from such ports to regional ports is for most of the time sub-contracted by shipping lines to local operators of feeder vessels. At the hub ports the containers are transshipped from the mother vessel to feeder vessels or vice versa. Furthermore, as a result of modern technological developments, improved cargo handling facilities at port terminals, roll-on/roll-off ships, and the invention of standardized containers, which permit their integrated use on various modes of transportation, are frequently transferred to other means of transportation, truck, train, and airplane for inland carriage. Where cargo passes in transit through a country, the freight forwarder coordinates the transfer of the cargo from one transport vehicle to another. This involves booking space on a transshipment vessel, discharging, sorting, loading and distribution of the cargo to various consignees. Transshipment agents generally act as agent for the shipper/consignee or another freight forwarder. Within the context of multimodal transport the forwarder might also act as contracting carrier.

Then, freight forwarder may arrange for packing, warehousing and distribution of cargo. He keeps the goods in storage before export and subsequent to import whilst awaiting transportation or distribution. The freight forwarder can either operate his own warehouse and offer those ancillary services as principal to the shipper and other freight forwarders or function as an agent in procuring the service from independent contractors for his customers. The fact that the freight forwarder does not own the warehouse, does not automatically lead to the conclusion that he offers the service as agent. In providing multimodal services the freight forwarder might act as principal and then subcontract the physical performance. A contract of carriage can extend to storage services before and after discharge of the cargo awaiting custom clearance if so contemplated by the parties.

Freight forwarder also provides all necessary documentation for the import and export of goods having regard to legal and customs requirements and the terms of the sales contract. He performs this function as an agent of the customer. Also as agent of the shipper/consignee, the freight forwarder coordinates and effects payment of freight to the performing carrier and any local taxes, for example, government service tax on behalf of his customers to avoid delays.

Freight Forwarders are the communicating party to keep us aware of when specific shipments arrive to local terminals, and receive specific pickup information from them to coordinate the local. A good freight forwarder will constantly communicate the shipment location during transit, therefore giving the local transportation and customer an idea of when the freight will be available and when they can expect freight to be at a holding warehouse and available for the end user.

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THE URBAN TRANSIT CHALLENGES

Pickup and delivery terminal is one of the important transit places in the Logistics chain. This kind of terminal is normally situated in the middle of the urban area. With the high accessibility, the urban area had become the point of view for all the carriers. But, there are also many constraints that they need to face when they transit at this location.

One of the challenges is the regulation. As most of us already know, not all types of vehicles can move freely in urban area especially the truck which carries the freight load. There are regulations that had been stated by the government to all the vehicles in order to make sure that we will have the sustainable transportation system in our country. So, this has been one of the challenges that need to be faced by all the carriers when they transit in the urban area. With the complex documentation, all the carriers need to adapt with this situation.

Next is the congestion. In the urban area, there always the traffic congestion since there are many vehicles that moved on the road every day. This kind of problem will be the biggest challenges to the parties involved since this will affect the whole Logistics process. Just imaging, once there is the traffic congestion at the middle of the urban area where the transit terminal located, it will make the total transit time become more longer. This will automatically increase the lead time and customer waiting time. The inefficient process time will reduce the customer service level and at the same time affect our profit.

Last but not least is the safety challenge. When involve the safety, the urban area is the most critical location. This includes the safety of the vehicles and goods that they carried. The risk of loss and theft is very high at this area. When they transit at the urban location, the freight is exposed to the high risk as there are many cases which involve the losses of the cargo.

As a conclusion, the urban area is the only place where most of the carrier transit to complete the supply chain process. The area can be said as the intersection point of the carrier. But it also becomes the biggest challenges to the parties involves. So, they need to plan for their journey to ensure all the process are going smooth and served the best services to their customer.

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Intermodal Transportation

Intermodal transportation involves joint systems, point to point, and moving freight by using two or more modes of transportation. Usually, transportation modes include water, air, truck and railroad. Intermodal transportation positively influences the global economy by controlling the way the movement of the customer’s goods. Nevertheless, some factors need to be kept in consideration to avoid restricting the value of intermodal transportation.

Many freight forwarders favor intermodal transportation because of lower cost and increased security of the products being transported. Moreover, shippers can take advantage of lower rates, more predictable pricing, and the flexibility of loading and unloading goods in a dropped trailer environment, which reduces handling costs. Intermodal transportation is actually one of the top five trends impacting the transportation industry today. For the past couple of years, the transportation industry has been hit with driver shortages, increased demand, shrinking truck capacity and increased fuel prices. This is forcing shippers who would otherwise refrain from using multiple modes of transportation to rethink their logistic strategies.

The reasons intermodal transportation is gaining momentum include cost savings, environmental benefits, and highway safety results. Shippers can take advantage of lower rates, more predictable pricing, and the flexibility of loading and unloading goods in a drooped trailer environment, which reduces handling cost saving can greatly outweigh the speed by which shippers can move their goods via truck.

Intermodal transportation also provides shippers more access to equipment and standardized transit schedules. This translates into reliability, capacity and safety advantages. As companies move their fright to intermodal, they will also be able to reduces damage claims through containerization, streamline their reverse logistics and increase control of their supply chain management.

When looking at logistics strategies to deal with tightening truck capacity, company executives need to seriously look at how intermodal transportation can benefit their business. It provides significant cost savings, increased reliability, greater capacity, and offers substantial green and safety advantages.

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HANJIN SHIPPING COMPANY

History

            Hanjin Shipping Holdings Ltd was founded in 1949 at the South Korea as a global shipping and logistic company. Hanjin Shipping is Korea's largest and one of the world’s top ten container carriers that operates some 60 liner and tramper services around the globe transporting over 100 million tons of cargo annually. Its fleet consists of some 200 containerships, bulk and LNG (Liquefied Natural Gas) carriers. Hanjin Shipping, an operating company of Hanjin Shipping Holdings has its own ocean transportation, terminal operation, ship management, ship repair and third parties logistics serving various customers around the world. With 6,000 employees in 60 different countries and 230 branch offices, Hanjin Shipping is building its global logistics network, which is also supported by the company’s 13 dedicated terminals at the world’s major hub ports and 6 inland logistics bases.  In addition, Hanjin Shipping is trying to fulfil its duties as a corporate citizen by adopting eco-friendly container, developing CO2 emission calculator and establishing management system based on ethics and transparency of global standards. Hanjin Shipping Company has provided the service such as Freight forwarding and Contract logistics. In Freight forwarding, the Hanjin as an ocean forwarding by provides the transportation service for customer product and it also as an air forwarding by provides air carrier for the goods. It also has a multimodal service using sea and air and railway. This is the most efficient in terms of both lead time and logistic cost. Besides, Hanjin also provide service for the custom clearance by declaration services to Customs Authority for export or import. The expanded services for duty refund, duty pre-payment and inspection management. The consolidation concept also was practical by Hanjin in order to saving cost and transportation efficiency can be improved with order management and cross dock. From trucking services to value-added service, Hanjin logistics provides a wide range of contract logistics services. Hanjin first-class services offer not only basic transportation and storage services but also specialized value-added services. In their service such as container service, it transports approximately 3.7 million TEU containers a year. This service consists of 104 container ships which allows for this service to produce such an output per year. Recently, in 2010 the South Korean

 shipping company was the first to introduce a 10,000 TEU class carrier ship, which travels between Asia and Europe. They also transport in bulk quantity product.This division of the shipping company delivers a variety of resources and raw materials through its contract with other companies. The division's ships are LNG and VLCC ships which carry crude oil and chemicals. The shipping terminals for this company are distributed internationally. There are fourteen dockyards that this company owns: four in Korea, three in the United States of America, two in Japan, and the rest in Spain, Taiwan, Vietnam and Belgium. As the Third Party Logistics, Hanjin shipping and relative, Hanjin Logistics often conspires. Their teamwork allows the shipping division to provide logistics to third parties. Its logistics network includes 13 dedicated terminals in Long Beach, Antwerp, Kaohsiung, and Busan among others and six inland logistic bases in such locations as Shanghai,Qingdao, and Port Kelang. Hanjin Shipping is expanding its 3PL and more as part of its business diversification efforts.It also has serve the ship repair service.The ship repair yard is located at Shanghai’s Zhejiang Eastern Shipyard Co.,Ltd., which is an affiliate of Hanjin. All this give a benefit to the Hanjin Company to be a worldwide shipping company.So,it does not impossible to the Hanjin Company to achieve their vision for being the global leader shipping company.

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Tanker Carrying the ‘Dangerous Goods’!

Carrying goods by road transportation involves the risk of traffic accidents and many more. The more dangerous vehicle when involved in an accident is oil tanker. If the goods carried are dangerous, there is also the risk of an incident, such as spillage of the goods, leading to hazards such as fire, explosion, chemical burn and even environmental damage.

Most goods are not considered sufficiently dangerous to require special precautions during carriage. Some goods, however, have features which they are potentially considered dangerous if carried. But they must still need to make sure the delivery of goods in safe condition.

Dangerous goods involves liquid or solid substances and articles containing them, that have been tested and assessed against internationally-agreed criteria, a process called classification, and found to be potentially dangerous when carried. Dangerous goods are assigned to different classes depending on their predominant hazard.

There are regulations to deal with the carriage of dangerous goods, the purpose of which is to protect everyone either directly involved such as consignee or carriers, or who might become involved such as members of the emergency services and public. Regulations place duties upon everyone involved in the carriage of dangerous goods, to ensure that they know what they have to do to minimize the risk of incidents and guarantee an effective response.

Carriage of dangerous goods by road is regulated internationally by agreements and European Directives, with biennial updates of the directives take account of technological advances.

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OUR LOCAL AIR CARGO SERVICES (Transmile Air Services)

Transmile Air Services is a cargo airline with its head office in the Transmile Centre in the Cargo Complex of Sultan Abdul Aziz Shah Airport inSubang, Selangor, Malaysia.

It is an express freight and freighter charter company. The airline was established in November 1993. It has courier transportation services between Peninsular Malaysia and East Malaysia and services international companies such as DHL Worldwide Express, United Parcel Service,among others. Transmile also provides aircraft charters and wet leases specialists with experience operating cargo flights around the world. Transmile Air was designated a National Cargo Carrier by the Malaysian Transport Ministry in 1996. Transmile is a corporation listed on Bursa Malaysia or (Malaysia Exchange).

  BRIEF HISTORY OF TRANSMILE AIR SERVICES

1. Transmile began with one Boeing 737 and one Cessna Grand Caravan in providing air express transport service to Pos Malaysia Berhad for their courier business to East Malaysia in November 1993. It later developed into an international company and the only dedicated intra-Asian overnight express cargo operator in Malaysia. Their first Boeing 727 freighter service commenced in 2000 for the Kuala Lumpur/Penang-Bangkok-Hong Kong courier sector. It was an extended operation for their existing client, DHL International Limited. Over five years, owing to the increasing demand of freight services in the region, Transmile increased their Boeing 727 fleet to 10. As part of the strategy to expand their operations and network of connecting routes, Transmile acquired four MD-11s in 2005. They started the MD-11 operation for Kuala Lumpur-Hong Kong-Los Angeles sector in the third quarter of 2005. Transmile Group Berhad largest shareholder is part of the diversified international conglomerate, the Kuok Group. The Kuok Group has a Hong Kong based company, Kerry Logistics Network Ltd, which has an extensive logistics business in Asia.                                                                                       
2. From 2002 to 2006, Transmile provided air cargo service to Air Macau. Their subsidiaries are K-Mile Air of Thailand and now-defunct Megantara Air of Indonesia.           
3. In May 2007, Transmile shares saw a massive selldown following the company's announcement on 7 May 2007 concerning the reliability of its unaudited consolidated results for the financial year ended 31 December 2006, resulting from the Company's auditors not able to satisfy themselves on the fairness or validity of certain transactions. Consequently, the company commissioned a special audit relating to the matter. The Securities Commission had charged three former executives of Transmile Bhd, including its founder, with giving misleading financial statements.There three are ex-chief financial officer Lo Chok Ping, ex-executive director Khiudin Mohd and founder Gan Boon Aun, who resigned as chief executive officer in June 2007.He quit after Transmile had lodged a police report over false statements and documents on revenue, property, plant and equipment and payments to third parties as reported by Moores Rowland Risk Management Sdn Bhd in a special audit.                                                                                    
4. On August 19, 2009, Malaysia Airlines announces that its aircraft maintenance unit is planning to acquire Transmile engineering unit to achieve a revenue target of MYR500 million ringgit (US$140.9 million) for 2009. The plan involves the purchase of Transmile's base maintenance and engineering capabilities including 2 hangars, equipment, and employment of its skilled manpower.

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TERMINAL LOCATION

When you are getting involved in the supply chain industry which required you to send the commodities to the other place or provide service at the other place, you are frequently need the terminal to drop by in the middle of your journey. What is terminal? For the people involved in this industry, terminal is being very familiar to them but not for the public. Actually terminal can be considered as the place to drop by to complete the service or the items. There are the terminal for pickup and delivery, release terminal, break-bulk terminal and others. Terminal plays an important role in our industry, so the location of the terminal must be suitable. What are the factors in choosing the right terminal’s location?

The first one is the terminal must be situated in the center of the cities or the place that become the point of view of people. It is because it will be near to the market, supplier and also the customer. This is quite important as it will make the transaction becomes easier. The suitable locations will give the benefits for both of the parties which is the seller and the buyer. It means that the supplier can deliver the goods on time as the terminal located near to them and it will increasing the efficiency of the product flow and the customer can receive the goods easily which at the same time increasing the customer satisfaction. For example, we are locating the main terminal which focused on the pickup and delivery activity in the center of Johor Bahru. Both customer and supplier from district of Johor and Singapore can easily pick and deliver the shipment.

The second factor in choosing the location for the terminal is locating the terminal at the place which having complete infrastructure, complete infrastructure here means they are having the road, highway, customs place, warehouse, petrol station and also distribution center. It is also the advantage if we are locating the terminal near to the ports or airports. When there is the infrastructure near to the terminal, it will become more efficient to manage the transaction activity. Just imaging you are conducting a transaction at the terminal where there are no infrastructures at all such as bank, the customs place or even no petrol station. It’s gonna be hard to manage all the documents causing more additional time requirements to handle the shipment and at the same time, it will automatically increasing the cost.

The last factors in choosing the best location for the terminal is the accessibility. Accessibility means that you can connect to almost any geographical area. Activity of receiving and delivery will be hard if the terminal is located at the urban or rural area as not all the people can access to the place. For example, you are locating the terminal at one of the islands in Sabah, it’s gonna be weird as people need to across over the sea to reach to the terminal, increasing the time and cost of completing the service and the shipment.

As the conclusion, it is important to make the best decision in choosing the best location for the terminal as it will give the big effect towards many parties involved in the industry.

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SUSTAINABLE TRANSPORTATION FUTURE

Every single thing in this world is moving with transportation. Even the foods that you are eating are being move by transportation. You are moving to school, office, college or anywhere, its all using the transportation. It can be said that this world are being moved by transportation. Today, millions of transportation is moving everyday around the world causing many problems towards the people, communities and of course the bad one is towards the environment. This occurs because of our unsustainable transportation system. So, all the parties involved should paid a fully attention towards the issue in order to keep the sustainable transportation in the future.

The first one is in term of environment. The unsustainable transportation system today is bringing up the unbalance environment towards the people. Talking about the air environment, most of us will think about the cars or other transport as the main reason that lead to the causing of air pollution. The increasing of the carbon dioxide causing the ozone layer become more thin is one of the dangerous thing of unstable transportation system. There are the ways to keep the environment at the same time to make sure there is the sustainable transportation in the future. The first one is by asking the public to practice using a car pool. Why not you are being in the same car with your friends who are going on the same direction instead of driving different car which can causing the number of vehicle on the road become more increased and will lead to the traffic congestion. Besides, you are also should use public transportation or using bicycle if you are going to the near destination. This can help to save our mother earth for our future generation.

In the view of economy, we can see that the transportation had changed the world. As we can see, over the past year ago, people just walking to move from one place to another and there is not even any development occurs during that time causing no economy benefits towards the country. Transportation are really changed the world today. People or anything gets to move with transportation. Road, highway, railway, airports and ports are the thing that built up because of there is the transportation. With transportation today, the economy is moving fastest from day to day. This must be kept moving until the future in order to keep this sustainable transportation for our next generations.

Social equity is also the thing that we must consider in our way to keep the best sustainable transportation in the future. Most of people need transportation in order to manage their life such as going to work and for their personnel matters. Mostly today, people are having their own transportation. It can provide a quality of standard living. In future, more people will need transportation in their life. It can be consider as the necessity one. The number of people getting more increased from day to day and this had allowed to the more requirement of using the transportation. And this becomes one of the reasons of the important of having the transportation in the future. Besides, the government should provide a facility for cycling activities. This can increase a social relationship among the public.

To keep the sustainable transportation in the future, we need to keep our green environment. People may ask on how to keep our environment green? One of the ways is by change our transportation for example we should move to use hybrid car instead of using car that use diesel or petroleum. This can reduce the quantity of carbon dioxide that caused more pollution and at the same time it can help in reducing the user of diesel and petroleum. We can also use the electric busses. This is not only help in reducing the pollution but it also opens the wide user of another renewable energy such as solar energy. This can totally help in maintaining a sustainable transportation system in the future.

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