Ports in a Supply Chain

1. Ports in a Supply Chain By: Kari Butler Alexis Crawford Matt Richardson Joanna Schmidt Dan Scholz

2. MAP

3. What are ports? • Sites for transshipment of goods from one mode of transport to another. • Provide link between maritime and inland transport. • Interface between the sea, rivers, roads and railways. • Work in several directions: • Account for requirements by both senders and receivers

4. Imports/Exports

5. Why are Ports Important? • Transport is an integral part of the entire supply chain • 60% of cross border trade moves via water • Competitive position due to supply chain links • Support raw material acquisition, manufacturing and distribution of finished products • Objectives • Create synergies • Converge interests between port community players to guarantee: • Reliability • Continuous Service • Good Productivity Level

6. Raw Materials COTTON Group 1 • Export Papers • Certificate of Origin • Work permits • Bill of Lading • SED (Shipper’s Export Declaration • Export license • Commercial Invoice • Insurance Certificate • Export Packing List • Inspection Certificate • Dock & Warehouse Receipt • Destination Control Statement • Conditions • Container conditions • Perishable items

7. Transport TRAIN Group 2 • Infrastructure • Double-Stacked Trains • Congestion Problems • Micro-bridge: routing by rail of a container between a port and an inland point • Costs • $0.60 and $1.10 per mile

8. Port New Orleans, LA Group 4 • IAPH and Security • IAPH (International Association of Ports and Harbors) • Non-profit & non-governmental • Headquarters in Tokyo • 2001 – handled 85% of container traffic • 2002 – 60% of world sea trade • Security • Federal ID system • Container Inspection • Natural Disasters • Hurricane Katrina and Hurricane Rita • Opened earlier than expected afterwards • Cause bottlenecks at all ports and all transportation connections • Effects ripple across the world

9. Major Trading Partners

10. Ship Group 5 • Infrastructure • Canals • Provide water linkages between bodies of water separated by land, tunnels, and bridges • Panama Canal • Tunnels • Bridges • Speed of Container Ships and Increased Costs

11. Port Shanghai Group 6 • Choosing a Port • Efficiency • Port Competition • Costs of a Poor Choice • Mega-Ports • Capacity • Cargo Compatibility • Mexican Grain Import

12. Transport TRUCK Group 7 • Infrastructure • US • Highway Weight Restrictions • China • Lack of Roadways • Costs • Teamster: $1.25 & $1.30 per mile • Non Teamster: $0.90 & $1.25 per mile

13. Factory THREAD Group 8 • Import Papers • Bill of Lading or Transport Document • Invoice • Bill covering Freight Charges • Certificate of Origin • Import License • Confirmation of Authorization for Special Customs Treatment • Certificates

14. Manufacturing T-SHIRT Group 9 • Export Papers • Certificate of Origin • Work permits • Bill of Lading • SED (Shipper’s Export Declaration • Export license • Commercial Invoice • Insurance Certificate • Export Packing List • Inspection Certificate • Dock & Warehouse Receipt • Destination Control Statement • Packaging Requirements • Packages must be in correct volume that will remain safe and are acceptable for the packed product for the consumer. • Must be recoverable in according to specific requirements. • Packages shall have as minimal amounts that are safe of noxious or hazardous material contained within them. • IMO (International Maritime Organization)

15. IMO (International Maritime Organization) • Created in Geneva, 1948 • Focus on improving safety of life at sea • Each government implements treaties differently • Measures concerning: • Safety of containers • Bulk cargoes • Liquefied gas tankers • Crew standards • Training • Certification • Watchkeeping • Global Maritime Distress and Safety System

16. Retailer Group 10 • Tariffs/Free Trade Zones • Tariff – tax policy to encourage or discourage particular types of consumption or production in the jurisdiction. • FTZ – areas where tariffs and quotas are eliminated and bureaucratic requirements are lowered.

17. Customer Professor Pagell

18. Sources • Carbone, Valentina. "The changing role of ports in supply-chain management: an empirical analysis." Marit.Pol. MGMT. Vol. 30, No. 4October-December 2003 305-320. 21 Apr 2006 <http://www.tand.co.uk/journals>. • "Mineta Underscores Role of Ports in Global Transportation; U.S. Transportation Secretary Delivers Keynote Address at IAPH Meeting ." PrimeZone Media Network 07 Oct 2005 http://lexis-nexis.com.oasis.oregonstate.edu. 23 Apr 2006. • "World Ports Association." IAPH: International Association of Ports and Harbors. 2001. 15 04 2006 <http://iaphworldports.org/top.htm>. Hughes, David. "WTO stresses role of ports, calls for coherent policies." The Business Times Singapore 23 Sep 2004 http://lexis-nexis.com.oasis.oregonstate.edu. 23 Apr 2006. • IMO: International Maritime Organization. 2002. 15 04 2006 <http://www.imo.org/home.asp>. Associated Press, "Port workers, officials wary of federal ID system." Duluth News Tribune 23 Apr 2006 <http://duluthsuperior.com/mld/duluthsuperior/business/14410575.htm>. 27 Apr 2006 • Wood, Donald F., Anthony P., Barone and Paul R., Murphy and Daniel L., Wardlow. International Logistics.2nd ed. New York: AMACOM: American Management Association, 2002. • "ISSB: Iron and Steel Statistics Bureau." 20 04 2006. 17 04 2006 <http://www.issb.co.uk/>. • BUSS Ports + Logistics. 28 04 2006. 28 04 2006 <http://www.buss-group.de/41.0.html>. • "The World Bank Group." Ports & Logistics Overview. 17 04 2006 <http://www.worldbank.org/transport/prt_over.htm>. • Transport and Tourism Division . Commercial Development of Regional Ports as Logistics Centres. 2002 Transport and Tourism Division . Commercial Development of Regional Ports as Logistics Centres. 2002 • Export.gov. 17 04 2006 <http://www.export.gov>.

19. Questions