1. UNITIZATION

2. UNITISATION
Unit load – quantity of material either in full or individual items, assembled and if necessary restrained to permit handling as a single object e.g cartons, pallet
Traditional methods of moving goods – involved much handling, packing, loading, unloading, transhipping, repacking, reloading etc
ISO container – basic tool for movement of merchandise by sea

3. Reasons for Unitisation
Reduce transit time
More predictable transit times
Improved productivity of transhipment staff e.g. dockers
Improved productivity of ship
Reduce storage in warehouse
Easy storage and handling
Reduce damage and pilferage
Allow safer working practice to be used
Enable to use mechanical handling

4. Application of Unitisation
Its application not always standard
Professional house removal e.g packing boxes, small standard containers
Delivering 20-tonne payload service to supermarket
Use of ISO containers and their complimentary equipment i.e pallets and fork lift trucks

5. Types of Unitisation 7 main types of unitisation - ISO Container
- Pallet
- Demountable
- RO/RO Trailer
- Roll Cage
- Rigid Cage
- Skips

6. Types of Unitisation ISO Container - It revolutionised port operations
& ocean-going shipping since 1960
- Basic concept is strong box: 8ft & 20ft
or 40ft long
- Height not been standardized,
majority are 8ft or 8.5ft high
- Difference in height cause a major
problem in container operation
- Complete movement system: Cellular
ship, ports & cranes, infrastructure to
ensure delivery to final destination

7. Types of Unitisation ISO Container
- Goods (stuffed) may be palletized or
load manually by hand
- It depends on space penalty and
labour cost
- Almost totally secure from damage &
pilferage, accepted by customs
worldwide & easy multimodal
transportation
- Air movement by ISO containers is
rare
Non- ISO Container
Some freight movement take place in dedicated non-ISO containers built for a specific traffic.
Light-weight shells (igloos) are commonly built to the profile of an aircraft & loaded by scissors jack platforms.
Only few aircraft have sufficient cross section to carry an ISO container such as 747F and AN-124

8. High Cube Container
General Purpose (GP) Container

9. Types of Unitisation Pallet - One of the most basic items of any
material handling system
- Main function is to maintain a gap
between the floor and the load to be
handled
- Revolutionised & streamlined the
movement of goods
- Allows goods to be loaded in units
instead of individual

10. Types of Unitisation Pallet - Machine compatible for movement,
storage, loading and unloading by
mechanical means
- Enables goods to be stored in racking
within warehouse ensuring good use of
space
- Most pallets are wooden, unsuitable for
certain types of goods
- Hard plastics pallets are available but at
an extra cost

12. Types of Unitisation Demountable - This system is often used for
products which are bulky, difficult to
unload quickly & need to be
protected from rain e.g. mattresses
- Have a demountable body on a rigid
lorry
- The body fitted with landing legs for
loading or discharge in a yard
- It is detachable from the vehicle
which carries it by a simple jack
arrangement, the lorry chassis to be driven
away to pick up another load

14. Types of Unitisation RO/RO Trailer
- Semi trailers used as part of an articulated
lorry combination which “rolls on” to a ship
or a train and “rolls off” at the other end of
sea or rail leg, continue its movement by
road
- Piggyback rail routes, movements through
long rail tunnels, RO/RO trailers are
alternative form of unit load to container
- “Accompanied RO/RO”: tractor unit &
driver go with semi trailer (short distance)
- “Unaccompanied RO/RO” movements are
used for long hauls by sea or rail e.g. New
York to Chicago
Rail RO/RO movements are known as “piggyback” in the USA. “Kangerou” in France.

16. Types of Unitisation Roll Cage - Most extensively used by the retail
distribution industry
- It comes in all shapes and sizes and is
generally collapsible
- Usually compatible for movement by
machine
- It takes up minimal space when nested
awaiting collection
- Very expensive & high maintenance
- It requires good surface for loading &
unloading
- Susceptible to theft and even sold as scrap
metal

17. Example for Roll Cage

18. Types of Unitisation Rigid Cage (Rigid Steel Cage)
- Used by many manufacturing
companies which require a robust
system of unitisation for moving
stock and materials
- Usually same dimension across the
base as pallet
- Can be stacked in vehicles, racking,
on the floor (warehouse)
- Durable, machine compatible, easy
to restrain

19. Rigid Cage

20. Types of Unitisation Skips - A simple form of containerisation
- Slow and spasmodic loading
- Full load can easily lifted by
tipper lorry for depositing at a
suitable site
- Normally for commercial waste,
contractors’ spoil, domestic
refuse from blocks of flats
Advantage of skips – less investment in a mechanized system in term of handling

21. Example of Skips

22. FACTORS INFLUENCING THE CHOICE OF ROUTE OR MODE OF TRANSPORT
The Nature of Goods
The Time Factor
Route Availability & Frequency
Contractual & Other Limitations
Strikes, Wars and Climate Factors
Limitations of the Modes of Transport
Limitations of the Terminals, including the efficiency of agents

23. The Nature of Goods Can affects choice of transport
Some goods are: too broad; too high; too long; too heavy to send by road
Weight is very important I travel by air
Size of railway tunnel decides the carriage by container i.e. 8 ft(w) X 8.5 ft (h)
Goods nature: heavy lifts, value, pilferability, fragility, perishability, livestock, hazardous cargo

24. The Nature of Goods-Heavy Lifts
- Some problems of indivisible heavy loads:
weight; dimension (length, width, height)
- These problems require specialist heavy lift
haulier to handle
- Special heavy lift is required to handle
indivisible heavy load e.g double steering
vehicle
- Major ports have either fixed or floating
heavy lift facilities
- Vessels carrying heavy lift has own facilities
(gear) to handle such cargoes e.g. ‘jumbo’
derricks
Haulier to consider problems at both ports (ports of loading and ports of discharge/destination)

25. The Nature of Goods-Heavy Lifts
Pick up and put ashore is another problem as quays have a maximum load capacity
Nowadays, RO/RO method is used to handle heavy lifts
Pre-booked at true weight is absolutely important to justify cranes and derricks capacity (SWL-Safe Working Load)
Most liner tariffs & port charges take into account a heavy lift surcharge
Heavy lift on railway locomotive is securely lashed
Dimensions not a major problem for carriage by sea or rail transport
For road transport, demensions are fairly crucial

26. The Nature of Goods-Value
The more valuable, the higher freight charges
The speedier the transit, the greater the saving i.e. less interest on capital & lower insurance premium
Security is important for high value cargoes
Exporter must select a transport system with the smallest number of intermediate handling
In certain cases, specialist security service may be used i.e. police ascort

27. The Nature of Goods-Pilferability
Goods need not be very valuable to be pilfered
If goods are desirable and readily accessible, it is sufficiently tempting e.g. packed chocolate
Once opened, it may suffer further pilferage due to constant attraction
Containerization has certainly helped reduce such losses

28. The Nature of Goods-Fragility
Fragile consignments require special packing & handling e.g. glass
Some electronic equipments which is highly sensitive to engine vibrations, turbine vessel is recommended rather than a motor ship

29. The Nature of Goods-Perishability
Refrigerated & cool chamber facilities are required to handle perishable goods
Item such as newspaper & fashion wear are best sent by air freight
Road haulage operators carrying perishable foodstuff under refrigeration to and/or through most European states must comply with the European ATP agreement
ATP regulations specify the minimum ‘lay down’ temperature (must maintain) and transit time must not exceed 48 hrs

30. The Nature of Goods-Perishability
All frozen meat product require official Veterinary Certificates
All imported food are subject to inspection by Health & Food Inspectors employed by the local authority

31. The Nature of Goods-Livestock
Most large airports have their own livestock reception areas including Veterinary Services
In ship, livestock is usually carried as deck cargo
Veterinary certificates to show animal has a clean bill of health have to be provided
Vaccination Certificates may be necessary
Exporter must ensure compliance of animal importations regulations

32. The Nature of Goods-Hazardous Cargo
Board of Trade regulates carriage of dangerous goods (DG) by sea in “Blue Book”
International Maritime Organization (IMO) come out more recent four-volume International Maritime Dangerous Goods Code (IMDG), the regulations for carriage of DG by road
ADR is international agreement on the carriage of DG by road (1968); on road traffic in road tankers & tank containers (revised 1992); classification, packaging, labelling of dangerous substances in packages regulations (1984)

33. The Nature of Goods-Hazardous Cargo
Information required for full compliance:-
- Name of Vessel
- Ports of loading & discharge
- Number, kind & size of individual
packages and total quantity (gross &
net weight in kg)
- Proper shipping name of substance
(as defined in IMDG code)
- Classification of substance (IMO) e.g.
poison gas
- UN number of substance

34. The Nature of Goods-Hazardous Cargo
Information required for full compliance (c’ntd):-
- Properties of substance
- Marine pollutant (if applicable)
- Packaging group
- Flashpoint (if any)

35. The Nature of Goods-Hazardous Cargo
Information submitted on DG Shipping Note incorporates DG packing certificate signed by packer & exporter
Certificate states that
- Container fit to received goods
- No incompatible substances packed into the
container
- All packages were inspected & found to be sound
- Container & packages are properly marked
& labeled
- Packages have been properly secured in the
- DG declaration has been received and completed for
each dangerous consignment packed in the
Secure & safe stowage is vital with such containers and it is more important to guard against ‘fall out’ when the doors are opened.
For carriage by road – there must be supplied appropriate TREMCARD.

36. The Nature of Goods-Hazardous Cargo
If DG only part of the loads (in container), it normally stowed close to doors area
To mark & label all packages (tested) with IMDG code showing the contents, the principal and secondary hazards
Container needs to be marked on each side and both ends including the class number & the UN number
Notify carrier at pre-booking for dirty substances

37. The Nature of Goods-Hazardous Cargo
Hazardous Cargo Description
- Corrosives
- Poisons
- Substances liable to spontaneous
combustion
- Substances liable to react on
exposure to air or water
- Substances with a low flashpoint
- Compressed gases
- Radioactive materials
- Magnetic materials
CORROSIVES – Substance that destroy slowly e.g. rust, acids
POISONS – Substance causing death or harm if absorbed by a living thing
SUBSTANCES LIABLE TO SPONTANEOUS COMBUSTION – process of burning
SUBSTANCES LIABLE TO REACT ON EXPOSURE TO AIR OR WATER
SUBSTANCES WITH A LOW FLASHPOINT – Temperature at which vapour from oil may be ignited
COMPRESSED GASES – get into smaller space
RADIOACTIVE MATERIALS – of such metal (e..g. radium & uranium) having atoms that break up, in so doing, send out rays in the form of electrically charged particles capable of penetrating opaque and of producing electrical effects
MAGNETIC MATERIALS – Having the properties of a magnet; able to attract

38. The Nature of Goods-Hazardous Cargo (HC)
The department of Trade & Industries ‘Blue Book’ & regulations cover carriage of HC by sea, detailing:
- Inner & outer packaging
- Amount per package
- Marking
- Stowage
- Amount per stow
- Type of vessel which can carry such
cargoes

39. The Nature of Goods-Hazardous Cargo (HC)
HC cargo must be pre-booked & to issue three-part stowage by Cargo Superintendent loading the vessel
- 1st copy – send to the docks &
advises when the cargo is to be
delivered
- 2nd copy – returned to the shipper
and then forwarded to the docks with
the cargo
- 3rd copy – retained by the cargo
superintendent

40. The Nature of Goods-Hazardous Cargo (HC)
DG shipment requires a seven page DGN (Dangerous Goods Note)
Shipper responsible to give all the relevant details: correct technical name; hazard & UN number
Shipper also responsible to ensure all DGs are properly packed & labeled (marked with technical name & UN number) so that it receives safe handling & proper stowage during transit
ADR is the European agreement concerning the international carriage of DGs by road
ADR lays down standard for packing & labeling of DG and also special conditions covering the vehicle e.g. tankers – to be certified that it has been built & maintained to ADR standards

41. The Time Factor Affects the choice of a mode of transport
Speedier transit means less warehousing at destination e.g. 2 weeks replacement of stock vs 4 re-order points
Re-order points is a minimum stock level of which new orders must be placed
If speed or transit increased, minimum stock level can be reduced, saving warehouse space & inventory costs such as depreciation & finance

42. The Time Factor
Possible gain arising from earlier use of goods e.g. machinery, deliver early (speedier transport), install & use early
Emergency shipment to facilitate the repair of a ship awaiting of spare part is an obvious example of time factor (paramount important)
New generation of container vessel can actually offer faster delivery than their latest competitor, the Trans-Siberian railway
Combination of both sea & air services e..g. Flying Tiger Service – Far East to San Francisco (by sea), San Francisco to Eastern USA (by air)

43. Route Availability & Frequency
Another factor which is changing as new services begin operations to more & more destinations
Routes reflect traditional patterns of transport
New concept & transport system can give impact on routes
E.g. Development of container ship – fast turn around, short sea routes & trade-diverting activities to avoid costly patterns by using unimportant ports

44. Route Availability & Frequency
Growing number of alternative routes/modes which are now available to most destinations
Transport revolution in the past 3 decades emphasis on increasing capacities of various modes, unitisation & speedier turn-around at termini
Growing application of computers (IT) to carrier & forwarding operators reinforce competition
Increasing in ro/ro operations at smaller ports and short sea crossing contributed to route availability

45. Route Availability & Frequency
Transhipment, unitisation, modern aircraft, air/sea combination services contribute to speedier turn-around at termini and resulted more voyages per year
Comprehensive & up-to-date freight guide is appreciated
ABC Freight Guide gives a comprehensive coverage of road, rail, sea and air services in all ports of the United Kingdom

46. Contractual & Other Limitations
Agent must consider principal’s wishes as regards to route
Non-conference vessel may break contractual obligations with a freight conference
Some country have flag discrimination i.e. cargo had not been carried in a ship of the nationality of the importer not allowed to berth
Compliance of the letter of credit (LOC) requirements
Bank refused to accept an airway bill instead of bill of lading due to non-amendment of LOC (sea to air for urgent shipment)

47. Strikes, Wars and Climate Factors
Major dock strikes could interrupt transit of goods
Civil wars, political embargoes could influence the choice of route or mode of transport
Ice, monsoons, fogs or hurricanes may delay or closure at certain ports

48. Limitation of the Modes of Transport
Rail has a set of track or permanent way
Air freight charges are high
Sea transport can cause extensive delays due to adverse weather, fog or icing
Road transport (for goods & passenger) compete for space and priority

49. Limitation of the Terminal, including the efficiency of agents
Climate & tidal factors may influence both in the port approaches & along the berth
Relationship of the port to natural trade routes both by land & sea i.e. nature of hinterland & the respective transport links such as railways, roads, canals, pipelines or rivers
Containerization & development of multimodal operations, conference ports retain traffic.

50. Limitation of the Terminal, including the efficiency of agents
Availability of freeport facilities are ideal for both entrepot & transhipment traffic
Cheap bunkering is another factor which attract vessels to a port
Cargo handling & storage facilities vary enormously even between major ports
For example, America ports have 1st class specialist cranage facilities for ore discharge or container handling but they do not provide appropriate crane for general cargo handling

51. Limitation of the Terminal, including the efficiency of agents
Storage facilities such as open storage, unpacked car yard are important
Specialist storage such as tank farms, grain silos, refrigerated stores & bonded warehouse are also important features
Availability of groupage facilities
- First appeared on the transport when IATA
air consolidators (i.e. freight forwarder)
dispatched consignment with a common
destination
- Advantage: lower freight rate, save the
airline paperwork

52. The Nature of Goods, the Time Factor, Route Availability & Frequency, Contract, Facilities, Bunkering, Strikes, Wars, the efficiency of agents and seamless connectivity among others, influence the choice of Routes and Modes of Transport. Discuss.

53. THANK YOU