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SEA & OTHER TRANSPORTATION 
SYSTEM 
BY:- 
KUMAR JYOTIRADITYA
MODES OF TRANSPORTATION 
• AIR 
• SEA 
• ROAD 
• RAILWAYS 
• Other transportation system such as 
Ropeways, pipe line etc.
AIR TRANSPOTATION SYSTEM 
• Used wherever fast delivery required 
• IATA acts as medium fixing the tariff for 
airlines 
• Constituents of IATA rate structure- 
General cargo rates (GCR) 
Specific commodity rates(SCR) 
Freight all kind rates(FAK) 
Govt. Mandatory rates
Items transported by air 
• High value products 
• Perishable products 
e.g. short shelf life as cheery, strawberries. 
• Emergency products 
e.g. medical & spare parts for machinery 
• Live animals 
e.g. race horses 
• Fashion items 
e.g. short sales life items
Advantage & disadvantages 
ADVANTAGES 
• Faster 
• Broad service range 
• Increasing capabilities 
Disadvantage 
• High cost 
• Weather condition affect flights 
• Limitation for heavy products
WATER TRANSPORTATION 
• Used for low value to weight ratio products as 
timber 
• Offers less cost per ton kilometer for bulky 
products like iron ore, coal, chemical, 
petroleum products ,cements etc 
• Water transportation uses Ships.Two types of 
shipping service- 
Liner (fixed schedule) 
Tramp(not fixed)
WATER TRANSPORTATION CONTD… 
CLASSIFICATION:- 
• Inland waterways –rivers,canals,lakes 
• Domestic coast ways 
• Seaways
LINER CONFERENCE 
• Group of two or more vessel operating carriers 
providing international liner service for carriage 
of cargo on defined routes within specified 
geographical limit on mutually agreed terms & 
conditions at common freight rates. 
• Over 360 liners conferences working in world 
• It has its own constitution & organization setup 
• Freight rates determined by the committees
Advantages of Liner service 
• Regularities of sailing to scheduled 
• Uniform rates for all shippers 
• Cover wide range of ports 
• Sometimes give rebates based on loyalty 
agreements 
• Stable freight rates
FREIGHT RATES FOR LINER 
CONFERENCE 
• Conference rate system 
• Loyalty agreements 
Deferred payment system 
The dual rate system 
Immediate rebate system
Conference rate making 
• Conference determine tariff with its rules & 
regulation. 
• Rate fixation is based on characteristics, 
density,volume,distance, storage, DC & IDC , 
insurance charges etc 
• Two other factors are competitiveness & 
economic viability of the proposition.
Loyalty agreements 
• Some rebates offered on Freight rates 
determined by conference rate system for 
exclusive patronage of the conference 
members. 
• Three rebate system are in practice
Contd…. 
• Deferred rate system- Given for shipper who 
utilizes the vessels of member lines of 
conference for carriage b/w ports receive 
certain %(~10% )for his freight 
payment.Rebate is computed for a period 
called shipment period but paid after deferred 
period on the condition that shipper has 
supported conference line during shipment 
&deferred period.
Contd… 
• The dual rate system- Shippers who are 
exclusive patronage with conference get 
benefit of lower rate than others. 
• Immediate rebate system –Given immediate 
rebate or cash(~9.5%)for their cargoes.
Tramp shipping 
• Chartering of ships on an “ad hoc” or special 
purpose basis. 
• Tramp ship operate in all parts of world 
without a fixed shipping route & sailing 
schedule. 
• Ships are chartered either in voyage charter 
or time charter form or demise charter.
Contd… 
• Voyage charter- ships are charted for specific 
voyage.eg 10000 ton iron from china to Japan. 
• Time charter- ships charted for specified 
period of time. Charterer may employ ship in 
voyage acc. to his requirements. 
• Demise charter- Normally opted by a ship 
owner bcoz he has to equips the ship with 
fuel, floating personnel & other necessities & 
operate the ship.
Mode of cargo shipments by ships 
• General cargo 
• Containerization- It may be flat or collapsible or 
open top or tank container or refrigerated or 
specific designed container. 
• Tankers 
• Multi purpose vessels 
Liner type vessel 
Boro vessels 
Barge system 
Combination container & RO/RO vessels
Procedure for booking of cargo by sea 
• Goods forwarded by clearing & forwarding agent. 
• Preparation of shipping bill. 
• Pay export duty if any 
• Obtain carting order from shipping company 
&carts down goods from godown to docks. 
• Receiving of Mate’s Receipt by port authorities 
after shipper pays the port charges on the cargo. 
• Move to shipping company,takes Bill of Lading,fill 
it & submit the Mate receipt.
Bill of lading 
• It is the carrier’s receipt in ship transport. 
• It is negotiable & contains- Name of ship, flag 
of nationality, shipper's name, no. of 
packages, description of goods, freight rates, 
net weight, order & notified party. 
• B/L should be clean, any remark on Mate 
receipt should be indicated on B/L. 
• It is prepared at port of shipment. 
• It is prepared by shipping company.
Inland water transport 
• Started in India in 1823 but gradually losing tariff 
over the years due to lack of clarity,lack of 
expertise,devlopment of waterways,lack of 
awareness about waterways. 
• National transport policy committee then later 
declares some rivers as national waterways & 
develops viable policy. 
• Advantage- mass movement of bulk material, low 
cost, large capabilities. 
• Disadv.- suitable for specific items,not quicker 
transit
Pipe line movement 
• Ideal for transporting large qty. of fluids over 
long distance. 
• Also for solids in slurry forms iron 
ore,coal,limestone etc. 
• Now a days best mode for petroleum 
products,gases,crude.
Advantages of pipe line 
• Reliable,continuous,all weather means of 
transport 
• Low cost due to low energy consumption 
• Low maintenance &operating cost 
• No space occupied 
• Losses in transit minimum 
• Safe method 
• Traverse difficult terrain 
• Economic
Disadvantage 
• Not suitable for solids &heavy equipments. 
• Initial cost of laying pipeline is very high
Ropeways transportation 
• Connects two places with large difference in 
altitude easily 
• Rate of rise or altitude gain within a horizontal 
distance is much higher 
• Least damage to the ecology of region 
• Capable of transporting bulk materials over 
short distances 
• Ideal for hilly region
Advantages & disadvantage 
Advantage- 
 Suitable for hilly & Inaccessible areas 
Bulky items transportation 
 Short haulages(less than 50km) 
Areas for which other transportation method 
uneconomic 
Disadvantages 
Heavy initial investment 
 Limitation as to size & qty.of haul.
ANY QUESTION ?
THANK YOU

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SEA Transportation Systems Analyzed

  • 1. SEA & OTHER TRANSPORTATION SYSTEM BY:- KUMAR JYOTIRADITYA
  • 2. MODES OF TRANSPORTATION • AIR • SEA • ROAD • RAILWAYS • Other transportation system such as Ropeways, pipe line etc.
  • 3. AIR TRANSPOTATION SYSTEM • Used wherever fast delivery required • IATA acts as medium fixing the tariff for airlines • Constituents of IATA rate structure- General cargo rates (GCR) Specific commodity rates(SCR) Freight all kind rates(FAK) Govt. Mandatory rates
  • 4. Items transported by air • High value products • Perishable products e.g. short shelf life as cheery, strawberries. • Emergency products e.g. medical & spare parts for machinery • Live animals e.g. race horses • Fashion items e.g. short sales life items
  • 5. Advantage & disadvantages ADVANTAGES • Faster • Broad service range • Increasing capabilities Disadvantage • High cost • Weather condition affect flights • Limitation for heavy products
  • 6. WATER TRANSPORTATION • Used for low value to weight ratio products as timber • Offers less cost per ton kilometer for bulky products like iron ore, coal, chemical, petroleum products ,cements etc • Water transportation uses Ships.Two types of shipping service- Liner (fixed schedule) Tramp(not fixed)
  • 7. WATER TRANSPORTATION CONTD… CLASSIFICATION:- • Inland waterways –rivers,canals,lakes • Domestic coast ways • Seaways
  • 8. LINER CONFERENCE • Group of two or more vessel operating carriers providing international liner service for carriage of cargo on defined routes within specified geographical limit on mutually agreed terms & conditions at common freight rates. • Over 360 liners conferences working in world • It has its own constitution & organization setup • Freight rates determined by the committees
  • 9. Advantages of Liner service • Regularities of sailing to scheduled • Uniform rates for all shippers • Cover wide range of ports • Sometimes give rebates based on loyalty agreements • Stable freight rates
  • 10. FREIGHT RATES FOR LINER CONFERENCE • Conference rate system • Loyalty agreements Deferred payment system The dual rate system Immediate rebate system
  • 11. Conference rate making • Conference determine tariff with its rules & regulation. • Rate fixation is based on characteristics, density,volume,distance, storage, DC & IDC , insurance charges etc • Two other factors are competitiveness & economic viability of the proposition.
  • 12. Loyalty agreements • Some rebates offered on Freight rates determined by conference rate system for exclusive patronage of the conference members. • Three rebate system are in practice
  • 13. Contd…. • Deferred rate system- Given for shipper who utilizes the vessels of member lines of conference for carriage b/w ports receive certain %(~10% )for his freight payment.Rebate is computed for a period called shipment period but paid after deferred period on the condition that shipper has supported conference line during shipment &deferred period.
  • 14. Contd… • The dual rate system- Shippers who are exclusive patronage with conference get benefit of lower rate than others. • Immediate rebate system –Given immediate rebate or cash(~9.5%)for their cargoes.
  • 15. Tramp shipping • Chartering of ships on an “ad hoc” or special purpose basis. • Tramp ship operate in all parts of world without a fixed shipping route & sailing schedule. • Ships are chartered either in voyage charter or time charter form or demise charter.
  • 16. Contd… • Voyage charter- ships are charted for specific voyage.eg 10000 ton iron from china to Japan. • Time charter- ships charted for specified period of time. Charterer may employ ship in voyage acc. to his requirements. • Demise charter- Normally opted by a ship owner bcoz he has to equips the ship with fuel, floating personnel & other necessities & operate the ship.
  • 17. Mode of cargo shipments by ships • General cargo • Containerization- It may be flat or collapsible or open top or tank container or refrigerated or specific designed container. • Tankers • Multi purpose vessels Liner type vessel Boro vessels Barge system Combination container & RO/RO vessels
  • 18. Procedure for booking of cargo by sea • Goods forwarded by clearing & forwarding agent. • Preparation of shipping bill. • Pay export duty if any • Obtain carting order from shipping company &carts down goods from godown to docks. • Receiving of Mate’s Receipt by port authorities after shipper pays the port charges on the cargo. • Move to shipping company,takes Bill of Lading,fill it & submit the Mate receipt.
  • 19. Bill of lading • It is the carrier’s receipt in ship transport. • It is negotiable & contains- Name of ship, flag of nationality, shipper's name, no. of packages, description of goods, freight rates, net weight, order & notified party. • B/L should be clean, any remark on Mate receipt should be indicated on B/L. • It is prepared at port of shipment. • It is prepared by shipping company.
  • 20. Inland water transport • Started in India in 1823 but gradually losing tariff over the years due to lack of clarity,lack of expertise,devlopment of waterways,lack of awareness about waterways. • National transport policy committee then later declares some rivers as national waterways & develops viable policy. • Advantage- mass movement of bulk material, low cost, large capabilities. • Disadv.- suitable for specific items,not quicker transit
  • 21. Pipe line movement • Ideal for transporting large qty. of fluids over long distance. • Also for solids in slurry forms iron ore,coal,limestone etc. • Now a days best mode for petroleum products,gases,crude.
  • 22. Advantages of pipe line • Reliable,continuous,all weather means of transport • Low cost due to low energy consumption • Low maintenance &operating cost • No space occupied • Losses in transit minimum • Safe method • Traverse difficult terrain • Economic
  • 23. Disadvantage • Not suitable for solids &heavy equipments. • Initial cost of laying pipeline is very high
  • 24. Ropeways transportation • Connects two places with large difference in altitude easily • Rate of rise or altitude gain within a horizontal distance is much higher • Least damage to the ecology of region • Capable of transporting bulk materials over short distances • Ideal for hilly region
  • 25. Advantages & disadvantage Advantage-  Suitable for hilly & Inaccessible areas Bulky items transportation  Short haulages(less than 50km) Areas for which other transportation method uneconomic Disadvantages Heavy initial investment  Limitation as to size & qty.of haul.