MenuISSN (0970-2083)
ISSN (0970-2083)
V.A. Glinskiy*, E.N. Zaitsev, O.V. Belyy, V.P. Maslakov and Yu.I. Palagin
St. Petersburg State University of Civil Aviation, 196210, St. Petersburg, Pilotovstr, 38, Russia
Received 29 May, 2017; Accepted 04 June, 2017
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The article introduces the concept, development problems and options to improve the efficiency of international multimodal transportation (MMT). The main characteristics, functions, as well as organizational and logic structure of MMT are shown. We consider the basic stages of the formation of the terminal network, and the concept of shipping and forwarding activities. The principles and standards of documentation procedures in accordance with the basic rules are considered. The paper describes the terminal and network principle of cargo movement and its main characteristics, as well as the effectiveness of this principle. The comparative analysis of the ways of MMT implementation was conducted. The main advantages of these ways, as well as the advisability of separate ones, were shown. The principles of the classification of terminal and network products of the forwarder, as the main link in the organization of the system, were formulated. We have proposed some innovative modes of delivery allowing to increase the efficiency of the system and to ensure its reliability.
Multimodal transport, Concept, Terminal network principle, Terminal network, Terminal and network products
Multimodal transport is the system of organizational provisions and legal groundwork for international transportation performed with at least two different means of transport (Multimodal Transportation, 2017; Smurov, et al., 2016). Such cargo movement on traffic arteries is impossible without the standardized conditions for carriages which form the ingredient of transportation system. Considering that a forwarder plays a key role in the interaction of all participants of trade and transportation activities, this paper is focused on the ingredient of transportation system of the forwarder.
The basis for the transportation process is a sales contract, transport basic conditions of which are listed in the INCOTERMS classifier. The transport proforma presented as model contracts should be developed by the ICC and FIATA (Jones, 2008). Using a standard proforma of documents makes them easier to fill, which allows to improve the control of cargo flows movement, to simplify customs formalities, documentation procedures and mutual settlements, to reduce commodity stocks and warehouse requirements.
The concept of shipping and forwarding activities (SFA) is based on the need for a universal classification of transport products of forwarders to improve the reliability of transactions, to simplify documentation procedures, and as a result, to receive funds by documentary letter of credit (Fig. 1) (Intermodal/ Multimodal Freight Transportation; Multimodal and Intermodal Freight Transportation, 2017; Multimodal and Intermodal Transportation, 2017; Gubenko, and Ksenofontova, 2015; Multimodal Services That Optimize Air, Sea, Land, and Rail Transportation, End-To-End, 2017).
Table 1. The effectiveness of international multimodal transport (MMT)
To improve SFA efficiency in this part, it is necessary to introduce an e-document management, and to implement the automated processing of commercial documents. This will significantly reduce the time of confirming paperwork at dispatching points, customs, and facilitate the interaction between the transportation system participants.
Through the analysis of international multimodal transport technology (MMT) we determine the services for clients, the most convenient route, and calculate the through rate. The use of international transport corridors and discount schedule, the coordination of modes of transport at the hubs of interaction, the cargo consolidation for reducing logistic costs, all this allows to achieve efficiency in this part Table 1.
| MMT ways of implementation | Advantages |
|---|---|
| Terminal system | • Providing a wide range of services • The single cargo and distribution terminal • Reliability of delivery time • Increasing of cargo delivery speed • Reducing transportation costs • System flexibility • Decreasing in risk of cargo damage • Rapid order processing • Reducing stock reserves • Improvement of quality in transport and logistics service |
| Consolidation of goods | • Minimum financial costs for the delivery of a small consignment of goods to anywhere in the world • Facilitation of shipping documentationexecution • Availability of necessary storage and handling conditions • Different types of goods can be carried in one vehicle • Cargo of different senders can be placed in one vehicle • Delivery within the specific time frame |
| Unitization | • It ensures the safety of goods • Low labor costs due to the mechanization of cargo operations • Increasing of cargo delivery speed • Possibility of re-shipment of goods without repacking • Simplifying of cargo record • Wide range of the transported goods • Reduction of costs and speeding up the rolling stock processing • Reduction of warehouse facilities (containers can be used as storage; reservoirs of processing companies; the possibility of multitier stacking) • Simplification and unification of shipping documentation and freight forwarding operations |
| International transport corridors | • Rationalization of the interaction between different modes of transport in the intermodal transport chain • Safe passage of passengers and cargo across national borders • Providing the international through traffic • Unitary international standards • Minimizing the cost of transit carriage |
| Cross docking | • Reduction of cost of warehousing services due to renunciation of the storage and repetition some of cargo operations • Increasing of cargo delivery speed • Lessening of the need for storage facilities, and as a consequence logistics costs saving • Totals and performance improvement as the goods pass over the warehouse • Efficient utilization of automobile vehicles • Facilitation of documentation procedures |
| Advancedtransport technological system of delivery (Multimodal and Intermodal Transportation) | • Combining different modes of transport and their effective interaction • Application of new principles of movement in order to increase the speed of goods delivery • Increasing the intensity of cargo handling operations and reduction of material and labor costs • The high degree of organization, mechanization and automation of technological processes • Increasing the load capacity of vehicles • Reduction the number of shipping documents • Increasing the cargo safety • Increasing the transportation capacity of transportation providers |
| Information systems | • Quick exchange of the information flow between the parties • Transparency of the whole process of works and services • Provision of timely and reliable information that allows to improve a decision-making process • Single financial service system • Organization of the unified information data about the carriage participants, road infrastructure and services performed with the carriage |
| The unification of the transport documents | • Improving export possibilities • Increasing competitiveness in the choice of forwarder • Improving the national control of the transport system and the movement of cargo flows • Simplifying the customs formalities, the reduction of the volume of documentation • Increasing control over the aggregate transportation charges and forwarding costs and facilitating their settlements • Currency expenditures savings and improving the balance of payments, reduction of dependence on changes in interest rates and tariffs for cargo handling, port fees • Simplifying the procedures for filing claims and reduction of costs associated with the claims, insurance premiums, interest payments • Expediting of carriage and delivery of goods, provision of more reliable transactions |
| Logistic forwarders at different levels | • Complexity of logistics services • Focus on core competencies • Technological flexibility • Individual approach to each client • The high level of reliability of supply |
| Outsourcing of transport services | • Focus on core activities (core competencies) • Reduction of non-core spending in many areas • More efficient implementation of transport functions under the control of the experienced people • Guaranteed quality and reliability of service • Transport service management flexibility • Focus on the development of the main type of one’s activity. Optimization of transport costs |
| Forms of payment at foreign economic activities | • Safety of transactions • Mutual control of participants of the calculations and their liability for compliance with the order of payment • The legal regulation of noncash settlements in order to ensure its consistency |
| Societies, alliances, associations, conferences, organizations of carriers | • Protection of the interests of carriers • Development of uniform customs and documents |
Table 1. The effectiveness of international multimodal transport (MMT)
The foundations of terminal business are formulated as the first stage of the terminal network organization (AnyLogic Logistics Network Manager-Decision Support System for Network Optimization, 2017; Best Airports of, 2014): the focus on the container market, the model of hierarchically organized transport and terminal network, approaching the market of distribution services and cargo handling, the idea of creating a network by means of the route" container trains" (Airport Passenger Terminal Planning and Design, 2010).
The main indicators, reflecting the preferences of the MMT operator for customers, include the presence of a person responsible for the cargo and its transportation for the whole route; preservation of the goods; price characteristics; the possibility of customs clearance; the possibility of issuing the document of multimodal transportation received by domestic and foreign banks; financial transparency of the relationship with the client (CAST Terminal- Passenger Terminal Simulation, 2017).
Clients have need of terminals for optimization their logistics costs. The review of product policy of terminals is important for quality network organization, which is caused by the need for specialization in key services. The formulation of the basic products enables to plan the development of the terminal network at all stages more effectively; it allows to point some key customer groups and the potential for the development of competition.
The list of forwarding services in the terminal network is unusually wide (Freight Forwarding and Logistics: What the High Performers Know, 2017). The forwarder arranges the movable part of the process (including carriage monitoring); cargo operations, warehousing; interaction of modes of transports at gateways; storage, release, acceptance; execution of documents; settlements; legal support; contract work; consulting; customs clearance; selection of the optimum carriers and other participants in the transport and terminal organization (TTO); selection of the optimal route; minimization of transportation cost in the price of the goods; calculation of the through rate; insurance, etc. Financial relations between the parties of TTO are carried out by the banking system; the information support is carried out with the help of automated information systems (Palagin, 2014; Connectivity and Growth. Directions of Travel for Airport Investments, 2014). Information technologies allow to track the whereabouts of cargo, to carry out monetary settlements fast and convenient, to execute the necessary documents before the arrival of the goods at the place of destination (customs clearance). Thus, an MMT operator provides a complex of logistics services for a shipper, closing all the logistics flows and providing the transport product of high quality (Fig. 2).
Fig. 2 Formation of SFA transport products.
For better understanding of stock liabilities, (Ksenofontova, 2013) the classification of warehouse services Supplementary Table 2 is proposed. The code, obligations of the parties, and the price of services and groups of warehouses are indicated for each condition that allow to carry out the necessary works (Air Traffic Control, 2015).
| Group | Conditions | Code | The warehouse's liability and obligations of the parties | Price of warehouse services | |
|---|---|---|---|---|---|
| warehouse | client | ||||
| "C" (cross docking/reshipment/shiftment) |
CDO Cross docking only (reshipment/shiftment only) |
C01 | The warehouse liability comes from the unloading of the arrived cargo and ends with the completion of its loading on the customer’s vehicle. | PWS=CO+TR | |
| 1.Cargo operations, transportation through the territory of the warehouse; 2. In case of failure to carry out reshipment/shiftment indue time, the warehouse provides free storage of cargo for 24 hours. During this period reshipment/shiftment should be done. |
1. Delivers the goods to the warehouse; 2. Provides a rolling stock, for cargo transfer; 3. Takes the goods away after the loading operations are over. |
||||
| CPS Cross docking+pick-and-pack (reshipment/ shiftment+pick-and-pack) |
C02 | The warehouse liability comes from the unloading of the arrived cargo and ends with the completion of its loading on the customer’s vehicle. The warehouse is responsible for the quality of package and picking of the goods in accordance with the order. | PWS =CO+TR+P/P | ||
| 1.Cargo operations, transportation through the territory of the warehouse; 2. Picking and packaging of goods; 3. Packaging, labeling and inventory accounting. |
1. Delivers the goods to the warehouse; 2.Provides a rolling stock, for cargo transfer; 3.Takes the goods away after the loading operations are over. |
||||
| CDD Cross docking+delivery (reshipment/shiftment+ delivery) |
C03 | The warehouse liability comes from the unloading of the arrived cargo and ends with the transfer of cargo to the customer in the place indicated in the contract. The warehouse shall bear all risks and costs associated with the transportation of the goods outside the warehouse. | PWS=D+CO+TR | ||
| 1.Cargo operations, transportation through the territory of the warehouse; 2. Provides its own rolling stock; 3. Delivers the goods by its own rolling stock to the place(s) indicated in the contract. |
1. Delivers the cargo to the warehouse; 2. Cargo operations in the place(s) indicated in the contract. |
||||
| CPD Cross docking+picking/selection+delivery (reshipment/shiftment+packing/picking+delivery) |
C04 | The warehouse liability comes from the unloading of the arrived cargo and ends with the transfer of cargo to the customer in the place indicated in the contract. The warehouse is responsible for the quality of package and picking of the goods in accordance with the order. The warehouse shall bear all risks and costs associated with the transportation of the goods outside the warehouse. | PWS=D+CO+TR+P/P | ||
| 1.Provides its own rolling stock; 2.Celivers the cargo to the warehouse; 3. Cargo operations, transportation through the territory of the warehouse; 4. Selects and picks the goods; 5. Carries out the packaging, marking and inventory accounting; 6. Delivers the goods by its own rolling stock to the place(s) indicated in the contract. |
1. Cargo operations in the place(s) indicated in the contract. | ||||
| "P" (Place leasing) |
PLO Place leasing only |
P01* | The warehouse is responsible for the goods during the period of being the goods in the safe deposit boxes (Best Airports of 2014; [Decree of the Government of the Russian Federation No. 303, 2014) The customer bears all costs and risks associated with cargo operations and transportation of the goods through the territory of the warehouse. |
PWS=PR | |
| 1. Ensures the safety of cargo during the lease term. | 1. Delivers the goods to the warehouse; 2. Carries out cargo operations; 3. Transports goods in the warehouse; 4. Takes the goods from the warehouse at the end of the lease. |
||||
| PTR place leasing+transfer |
P02 | The responsibility of the warehouse comes from unloading of the goods and transferring them to the warehouse, and ends with the transfer of the goods to the customer. The customer bears all costs and risks associated with loading and unloading. |
PWS=PR+TR | ||
| 1. Ensures safety of cargo during the lease term; 2. Transports the goods in the warehouse. |
1. Delivers to the warehouse; 2. Carries out cargo operations; 3. Takes the goods from the warehouse at the end of the lease. |
||||
| PLT place leasing+load/unload+transfer |
P03 | The warehouse liability comes from the unloading of the arrived cargo and ends with the completion of its loading on the customer’s vehicle. | PWS=CO+TR | ||
| 1. Ensures safety of cargo during the lease term; 2. Transports the goods in the warehouse; 3. Carries out cargo operations. |
1.Delivers to the warehouse; 2. Takes the goods from the warehouse at the end of the lease. |
||||
| PLD place leasing+transfer |
P04 | The warehouse liability comes from the unloading of the arrived cargo and ends with the transfer of cargo to the customer in the place indicated in the contract. The warehouse shall bear all risks and costs associated with the transportation of the goods outside the warehouse. | PWS=PR+Q+CO+TR | ||
| 1.Delivers the goods from the designated in the contract place to the warehouse; 2. Carries out cargo operations; 3. Transports the goods in the warehouse; 4. Ensures safety of cargo during the lease term. 5. Delivers the goods to the designated in the contract place (s). |
1. carries out cargo operations at the places designated in the contract. | ||||
| PPS place leasing+picking/selection |
P05 | The warehouse liability comes from the unloading of the arrived cargo and ends with the completion of its loading on the customer’s vehicle. The warehouse is responsible for the quality of package and picking of the goods in accordance with the order. (Smurov, Gubenko, and Ksenofontova 2016) | PWS=PR+CO+TR+P/P | ||
| 1.Carries out cargo operations and transportation through the territory of the warehouse; 2. Selects and picks the goods; 3. Performs packaging, labeling and inventory accounting; 4. Ensures safety of cargo during the lease term. |
1. delivers to the warehouse; 2. by the end of the lease, provides the rolling stock for further transshipment; 3. takes the goods away by its own rolling stock. |
||||
| PPD place leasing+picking/selection |
P06 | The responsibility of the warehouse comes from the transfer of cargo to the warehouse’s representative in the place(s) indicated in the contract, and ends with the transfer of the goods to the customer in the place(s) indicated in the contract. The warehouse is responsible for the quality of package and picking of the goods in accordance with the order. The warehouse shall bear all risks and costs associated with the transportation of the goods outside the warehouse. | PWS=PR+Q+CO+PG+P/P | ||
| 1.delivers the goods from the places indicated in the contract to the warehouse; 2. cargo operations; 3. goods transportation in the warehouse; 4. selects and pick the goods; 5. perform packaging, labeling and inventory accounting; 6. ensures safety of cargo during the lease term; 7. delivers the goods to the places indicated in the contract. |
1. cargo operations at the places indicated in the contract. | ||||
| "M" (mixing product/ Creation of product range) |
MPR mixing product (creation of product range) |
M01 | The warehouse is responsible for the availability of the range and number of the unexpired goods in accordance with the contract (Gubenko, and Ksenofontova, 2015). | PWS=PR+CO+TS+PG | |
| 1. buys from manufacturers all products mentioned in the contract in the required quantities; 2.maintainthe availability of all the items as needed; control of the expiration dates. |
1. performs picking of goods for its own sales points; 2. delivers the goods to the sales points. |
||||
| MPD mixing product+delivery (creation of product range+shipping) |
M02 | The warehouse is responsible for the availability of the range and number of the unexpired goods in accordance with the contract, as well as timely delivery of goods to the client’s place. | PWS=PR+CO+TS+PG+D | ||
| 1. Buys from manufacturers all products mentioned in the contract in the required quantities; 2. Maintain the availability of all the items as needed; control of the expiration dates; 3. Performs picking of goods for it’s the client’s sales points (selection, re-packing, labeling, decoration); 4. The delivery of complete consignments in customer sales points. |
1.Cargo operations in the sales points. | ||||
Source: PWS-price of warehouse services; CO-cargo operations; PR-place rental cost; TR-transfer (transport of goods on the territory of warehouse); P/P –pick-and-pack cost; D-shipping costs (outside the warehouse); PG-price of goods
Table 2. Code list of MMT terminal and network products
The article introduces the concept, development problems and options to improve the efficiency of international multi-modal transportation (MMT). MMT operator plays a big role in the international multimodal transportation concept. It organizes the end-to-end control for transportation process. The principles of increasing the efficiency of the systems, their development and implementation are given here.
First of all, we have considered the terminal and network principle of cargo movement. Also, this article formulates the principles of classification of the forwarder’s terminal and network products.
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