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Table 2.1 Maritime logistics versus maritime transportationMaritime LogisticsMaritime transportationConceptThe process of planning, implementing and managing the movement of goods and information involved in ocean carriage.The process of carrying and handling cargoes across the ocean.Focusing pointMaritime logistics is concerned with not only individual function relating to sea transportation, but also an effective logistics flow as a systematic entity of the logistics integration systemMaritime transportation emphasizes individual functions relating to sea transportation. Each function pursues its own aims or competitiveness.Managerial functionSea transportation activities: eg contracting, shipping, sea voyage, moving cargo and loading /unloading. Additional logistics services: egStripping/stuffing, storage, warehousing, offering a distribution center, quality control, testing, assembly, packaging, repacking, repairing, inland connection, and re-use.Sea transportation activities: eg contracting, shipping, sea voyage, moving cargo and loading/unloading. Table 2.2 Maritime function and supportive activities of maritime logisticsShippingPort/Terminal operationFreight forwardingMain functionMoving cargoes between portsShipping reception;Loading/unloading cargoes;Stevedoring;Connecting to inland transportation.Booking vessels; and preparing for requisite documents for ocean carriage and trade, on behalf of shippers.Supportive logistics activitiesDocumentation relating sea trade; Container tracking and information; Intermodal service.Warehousing Offering a distribution centre;Testing; Assembly; Repairing Inland connection.Inventory management;Packaging;Warehousing.SOURCES Bernal al (2002), Bichou and Gray(2004), Carbone and De Martino (2003), Heaver et al (2000), Murphy and Daley(1992), Nottenboom and Winkelmans(2001), Robinson (2002), Roh et al (2007).FIGURE 2.1 Maritime logistics in the whole logistics systemSOURCES Extended from Coyle et al (1999)ShippingPort/Terminal Operating Freight ForwardingMaritimeLogisticsDemand forecastingPurchasingRequirements planningProduction planningManufacturing inventoryWarehousingMaterial handlingIndustrial packingFinished goods inventoryDistribution planningOrder processingTransportationCustomer service

Material ManagementLogisticsPhysicalDistribution+FIGURE 2.2 Process of maritime logisticsFreight ForwardersForwarding service:Planning shipping route;Arranging payment of freight; documentation required for customs clearance or insuranceShipping LinesShipping service:Providing shippers with cargo space of ships;Offering regular schedules of sails for maritime carriagePort OperatorsPort Operators :Shipping reception;loading./offloading;Stevedoring; delivery of goods via inland transportationArranging inventory management; packing; warehousing; inland transportation, etcInbound/outbound B/L;Container tracking and information; intermodal service, etc.Warehousing; repacking assembling; product mixing, etc.Logistics ServicesMaritime Logistics SystemShippersSecondary activityPrimary activityMaritime Logistics ValueMaritime Logistics ValueOcean MovementHuman resource management; information system; administrative skill; finance

Table 2.3 Measurement of efficiency and effectiveness in transport logisticsSupply chain processMeasurement criteriaPerformance indicatorsEfficiency-related(Internal facing)Cost

Assets Total logistics management costs Productivity Return processing cost Cash-to-cash cycle time Inventory days of supply Asset turnsEfficiency-related(Customer facing)Reliability

Flexibility and Responsiveness Delivery performance Order fulfillment performance Perfect order fulfillment Response Time Production FlexibilitySOURCES Lai et al (2002)