Global Logistics Final Exam

Security (Air transportation)

-Advanced Manifest Rule: All cargo manifests must be sent to CBP at least four hours before the cargo is to arrive in the U.S. -Certified Cargo Screening Program: All cargo shipped on passenger aircraft must be 100-percent inspected prior to being loaded. Inspections must be conducted by Certified Cargo Screening Facilities.

On-Board Courier (OBC)

-An OBC is a passenger who uses his/her luggage allotment for cargo. -Such OBCs are used for urgent documents and small spare parts.

ISPS code

-International Ship and Port Facility Security enhances port security by requiring specific security measures that ports have to put in place, such as controlling access, monitoring activities, and having secure communication systems. - recommends similar measures for merchant ships.

Conventional Freighters

-Most air-freighters are "liners" in that they operate on a regular schedule. -Same type of plane used in passenger service except that it has roller deck to allow pallets and containers to be pushed into the aircraft

LCL Ocean Cargo

-The goods are likely to be handled more frequently and be placed near goods that may not have been well packaged. -should be boxed or crated with strong corners (in case another cargo is placed on top of it), protected from humidity with shrink wrap or stretch wrap, and well marked with handling instructions.

Types of Leases

-Wet Lease -Dry Lease -ACMI Lease

Combi Aircrafts

A combi aircraft is designed to carry both passengers and cargo on the main deck of the plane

Conventional Passenger Airplanes

A passenger aircraft is designed to carry passengers on the main deck of the plane. International cargo using conventional passenger aircrafts is usually extremely urgent.

Open Skies Agreement

An agreement between two or more countries where air carriers from one of the countries are allowed to serve any of the other countries' airports

FAA

Federal Aviation Administration is the US Government Agency that sets the standards and monitors the procedures for aircraft and people who work in the aviation industry.

FCL

Full-Container-Load utilizes the entire capacity of a container, whether it is by weight or by volume.

Dangerous Goods

Hazardous cargo can be shipped by ocean and by air, but most dangerous goods (flammable, explosive, or toxic goods) are shipped by ocean.

Flexible Intermediate Bulk Container (FIBC)

Includes unitized packages that can be handled by human labor, such as bags, bales, or drums and those can be only be handled with mechanized equipment

ISPM-15

International Standards for Phytosanitary Measures No. 15" (ISPM-15) was created by the International Plant Protection Convention (IPPC) to address the international shipment of potentially contaminated solid wood materials. To prevent the spread of insects and disease that could have a negative impact on plants and ecosystems as a result of solid wood packaging used in the international transport of goods.

Breakbulk Ocean Cargo

It is not placed in a container, but is placed directly into the hold of a ship. It is generally too large or too heavy to be placed in a container.

LCL

Less-than-Container-Load utilizes less than the entire capacity, and is mixed with other goods, so that an entire container can be utilized.

Breakbulk Cargo Markings

Marking international shipments with international handling pictorials help protect them from poor handling (they are not language specific), as well as from theft and pilferage.

Refrigerated Goods

Refrigerated goods usually require very specific handling, and therefore, most refrigerated goods travel "alone," and are not mixed with other refrigerated goods. Goods requiring refrigeration are placed in refrigerated containers that are self-powered, or powered through the ship's electrical system. They can also be placed in refrigerated holds in the ship.

C-TPAT

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a U.S. Customs and Border Protection program in which more than 10,000 importers participate.

IATA

The International Air Transport Association works with governments and airlines to ensure that goods move around the world as easily as if they were traveling domestically.

ICAO

The International Civil Aviation Organization (ICAO), an agency of the United Nations, designs and implements standards for international civil aviation practices regarding safety, security, and other operational issues.

Container Security Initiative (CSI)

U.S. Customs officials in about 60 foreign ports. Their role is to screen and inspect containers before they are loaded onto a ship that will call on a United States port.

Passenger Airplanes

Whether conventional passenger aircrafts or combis, passenger airplanes have the following constraints: - The size of airplane's belly limits the cargo that can fit - The size of the airplane's door limits the size of the cargo that can be loaded - There are many items prohibited from being carried on board passenger aircrafts

Dry Lease

a lease agreement in which the owner of the aircraft provides only the airplane to the lessee, who is responsible for all other costs.

Wet Lease

a lease agreement in which the owner of the aircraft provides the airplane, insurance, maintenance, fuel and a flight crew

ACMI Lease

a lease that is an Aircraft, Crew, Maintenance, and Insurance lease

Freight Tariffs (Air transportation)

based on the weight and volume of the cargo (much simpler than that used by the ocean cargo industry) an airline charges the higher of the actual weight and the volume weight

Charter Airfreight Services

do not operate on a regular schedule and depend on demand. they fulfill emergency shipments of large parts, or operate on seasonal traffic, such as wine, flowers, or fruits.

Rackable Pallets

engineered to be able to hold a specified amount of weight in an open span racking system.

Boxes

fully enclosed and can be made from either wood or plywood. They are labor intensive

Block Pallets

made of parallel pieces of wood. Also known as four-way pallets because forklifts can pick them up from any side.

Stringer Pallets

made of parallel pieces of wood. Also known as four-way pallets because forklifts can pick them up from any side.

Pallets

offers the lowest level of protection, both in terms of damage and theft. Generally, the cheaper option and more flexibility with how you store them.

Crates

open slatted - with a board then a gap, then a board etc.

Scheduled Airfreight Services

transported by airlines that operate on a regular schedule between two cities. -can operate a passenger aircraft, in which case the cargo is placed in the belly of the airplane, or a freighter, in which case the cargo is placed on the main deck of the aircraft or (rarely) the freight and the passengers share space on the main deck aka a "combi" -regulations restrict the type of cargo that is allowed to be shipped on passenger aircraft

Leased cargo airfreight services

used by carriers to reduce their capital costs, and to satisfy short-term demand fluctuations (end-of-year volume increases).

FCL Ocean Cargo

•The center of gravity should be at the center of the container, front-to-back, and side-to-side. •The heavier items should be at the bottom. •The goods should be braced with blocking or dunnage. •The goods should be placed on pallets or dunnage to raise them above the floor of the container (to protect them from water damage). •A desiccant should be used to protect from ambient humidity.