Master of Business Administration - Semester 4 IB0016: International Logistics & Distribution Management (Book ID: B1146) ASSIGNMENT

Q1.What are the rights and liabilities of a multi-modal transport operator? Liabilities of a Multi-Modal Transport Operator i) A multi-modal transport operator (MTO) shall be liable for loss resulting from (a) any loss of, or damage to the consignment; (b) delay in delivery of the consignment and any consequential loss or damage arising from such delay. But MTO shall not be liable, if he can prove that the loss is not because of any fault or negligence on his part. ii) The liability shall be restricted to two Special Drawing Rights (SDRs) per kg. of the gross weight of the consignment lost or damaged or 666.67 SDRs per package or unit lost or damaged, whichever is higher. If the multi-modal transportation does not include carriage of goods by sea or by inland waterways, the liability shall be limited to 8.33 SDRs per kg. of the gross weight of the goods lost or damaged. iii) When the nature and value of the consignment have not been declared and stage of transport where loss or damage occurred is known, the liability of MTO shall be determined in accordance with the provisions of the relevant law applicable in relation to the mode of transport during the course of which the loss or damage occurred. iv) Where loss is caused due to delay in delivery, liability of MTO is limited to the freight payable for the consignment so delayed. v) An MTO shall not be liable under any provisions of the Act unless action against him is taken within nine months of the date of delivery of the goods or the date when the goods should have been delivered or the date on which the party entitled to receive delivery of goods has the right to treat the goods as lost. Rights of Multi-Modal Transport Operator The MTO who has not been paid the amount of freight and other dues as stipulated in the multi-modal transport document shall have a lien on the consignment and on the documents in his possession. Q2.Discuss the role of Bill of Lading. Describe various types of Bill of Lading. Bill of Lading The transport document issued by the carrier for transportation is called Bill of Lading. It signifies a contract between the shipper (exporter) and the shipping company. Bill of Lading is a document of title which is negotiable by endorsement and delivery. B/L is issued in set of negotiable and non-negotiable copies. It is only the negotiable copy which is a document of title; non-negotiable copies are for record purpose only. The reverse side of B/L contains the terms and conditions of the contract of carriage. Contents of Bill of Lading Each shipping company has its own Bill of Lading. The format may differ from company to company. A B/L will have following contents:i) Name and address of the shipper ii) Name and address of the shipping company iii) Name and address of the consignee iv) Name and address of the Notify Party v) Port of Loading vi) Port of Discharge vii) Port of transshipment, if any viii) Name of vessel ix) Place of delivery x) Quantity, quality and markings Types of Bill of Lading i) Shipped On Board Bill of Lading Issued when the goods have been received on board the ship. A letter of credit normally requires shipped on board B/L. ii) Received for shipment B/L Issued when the goods have been received by the shipping company but not placed on Board the ship. iii) Clean Bill of Lading Issued when the goods received on Board are in apparently good condition and with no shortage. iv) Claused or Foul or Dirty Bill of Lading When the goods received on Board are damaged or short, and the Bill of Lading contains remarks to this effect, it is called Claused or Foul or Dirty Bill of Lading. v) To Order Bill of Lading A Bill of Lading issued to the order of a specified person, e.g., issued To order of L/C Opening Bank or To order of shipper.

vi) Charter Party Bill of Lading Issued when shipment is on a chartered ship. Chartered Party Bill of Lading is generally not acceptable under a Letter of Credit unless specified otherwise. vii) Through Bill of Lading A B/L which covers the entire journey by more than one mode of transportation. The transshipment is en route. This type of B/L is also known as Combined Transport Document or Multi-modal Bill of Lading.

Q3. Explain about any five types of containers. Types of Containers i) End Loading Fully enclosed, equipped with end doors ii) Side Loading Fully enclosed, equipped with side doors iii) Open Top Fully enclosed with open top, generally used for carriage of heavy, bulky items. iv) Ventilated suitable for cargo which should not be exposed to sudden temperature changes v) Reefer refrigerated container; insulated and equipped with a built in refrigeration system used in case of frozen foods.

Q4. What is the significance of logistics in international business?

Importance of Logistics in International Marketing Marketing experts feel that for developing a position of sustainable competitive advantage, superior logistics performance is a major source. They argue that distribution, marketing and manufacturing need to be united, particularly at a strategic level. Now many firms around the world think that market is not restricted to their home country only, but it encompasses the world. Accordingly, marketing managers are implementing logistics initiatives to international marketing. This is so because of following reasons:i) Increased volume of global business ii) Reliance on foreign countries for supply of raw materials and markets for finished goods iii) Removal of trade barriers iv) Increase in Global competition In the changing scenario, availability of product in stock has become a major consideration for the customer. Moreover, customers expectations of service have increased. Formal vendor appraisal systems are widely used and suppliers are expected to provide just-intime delivery performance. Product life cycles are becoming shorter which in turn create substantial problems for logistics management. Shorter life cycles demand shorter lead times. In some cases, life cycles are becoming shorter than the procurement-to-delivery lead time, creating further problems. From all these changes, one can understand the role of logistics in international marketing.

Q5.Explain the meaning of packaging. What are the different types of packaging boxes? Today packaging is considered as one of the most important elements for marketing any product. Nobody can underscore the need for good packaging when he decides to export his product. Packaging means packing of the product in some container to reach the ultimate consumer. Packaging is the inner wrapping or container which covers one or more units of a product. It should not be confused with packing. Packing refers to the external protective covering used for the safe transportation of the goods to the buyer. For example, the plastic bottles and the inner box used for cough cyrup is packaging whereas the corrugated box used for packing the plastic bottles for their safe transportation represents packing. Packaging fulfills a vital role in helping to get the export products to the market in the best condition, as well as in presenting goods to overseas buyer in an attractive way. In other words, packaging of a product performs the role of silent salesman as it, 1. Improves presentation of the product. 2. Protects the product during distribution, and 3. Makes handling and retail display of the product easier

While packaging quality should not be compromised merely to cut down the costs. Standards for suitable packing of several important export products have been laid down and enforced by Export Inspection Council under the Export Quality and Inspection Act. Often packing material and printing thereon are also suggested and prescribed by overseas buyer. Good packing is one, which protects its contents against hazards like dampness, rough handling, stacking, improper storage, insect infestation, pillage, tampering and pilferage. Products which are not adequately packed, and if there is danger of damage, goods may not be accepted for inspection and the Bill of Lading will be endorsed as packing is unsatisfactory. In the latter case, the Bill of Lading would become claused and that will be a sufficient ground for the rejection of documents by the exporter. The choice of a suitable package is primarily determined by the significant characteristics of the products like physical and chemical properties, and also by density, weight, distance to be shipped, trans-shipment etc. The Indian Institute of Packaging is a specialized Institute set up to help and guide the exporters in the matter of suitable packaging for different products for export to different markets. Types of Packaging Packaging: An exporter can use the following containers for packaging of the product: 1. Polythene bags 2. Box made of card paper or cardboard 3. Box made of fibre board/plastic/acrylic sheets The selection of packaging material depends upon the following factors: i) Nature of product ii) Transportation mode iii) Climate iv) Culture of the country of the buyer v) Technical standards of the buyer country vi) Competitors packaging Packaging Design The design of the packaging should be such that it ensures that: i) the packaging is environment friendly ii) It is safe to handle during transit iii) It is economical iv) It is attractive and presentable

Q6.Write short notes on (a) FOB (b) CIF F.O.B (named port of shipment) FOB means Free on Board, a term used in case of shipment by sea or inland waterways. The seller fulfills his obligation whe n he delivers the goods on the ship rails at the named port of shipment. The seller has to bear transport, inland insurance and other charges upto the time the goods are loaded on to a ship. The risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ships rail. FOB term in international trade is very common such as FOB Mumbai, FOB Coch in etc. Overseas freight and marine insurance from port of shipment up to destination are to be borne by the buyer.

CIF (named port of destination) CIF means cost, insurance and freight, a term used for shipment by sea and inland waterways. The seller is responsible for payment of freight and insurance up to port of destination. CIF=FOB + Freight +Marine Insurance OR CIF=CFR + Marine Insurance