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Category Archives: Maritime Law

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Maritime Law

Packing and Packaging in Logistics

Many companies consider the packaging of their products to be a form of communication with their customers. Besides protecting the item inside the packaging, it is a marketing tool that gives information on the product as well as promotes it. The more visually pleasing a package, the more customers it attracts.

Packaging and packing are two words that are often confused with each other. To put it in simple words, packaging is the covering of the individual units of an item that is available to the final customer while packing is the protecting covering or support for such products when they are transported or handled in bulk quantities. Though both these words sound similar and are closely related, they are quite different.

It is the packaged individual products that are put on shop shelves for customers to choose from. The same products packed in bulk quantity are what is often found in the storage area or warehouse of the retailer.

It is from these bulk quantities that individual units are taken to replenish stocks on the shop shelves. Another way of putting it is that individual items are packaged, while the same items are packed when handled or moved in bulk.

Several different materials are used for packaging as well as packing, the most common being plastics, paper boards, and aluminium. These materials have to be sturdy and durable. There are two important aspects to packaging and packing – the technical aspects and the promotional aspects.

The Main Aspects of Packaging and Packing

Among the several technical aspects, most importantly, packaging and packing materials should be resistant to impacts, compression, and stress. During transport and handling, products may be subject to fluctuating temperatures, impact, vibrations, and compressions.

Its promotional aspects include the ability to print promotional matters, statutory information, details of the product, bar codes, shipping marks, handling instructions, etc. The need to affix labels may also be necessary in certain cases.

Packaging Materials

Packaging is the outer cover of a product. It may be a wrapper or a container that holds the item. Packaging may be generally categorized as follows:

  • Plastics
  • Paper and cardboard
  • Mixed plastic and paper
  • Metal
  • Other types of packaging

Packaging serves two main purposes. It protects the item from damage, deterioration, and tampering or pilferage. Proper packaging ensures that external factors such as extreme temperatures, moisture, light, etc. do not affect the contents of the packages inside. This is especially applicable to food items.

It also promotes the product to the end-user or customer. Packages should be convenient to use for the customer. They should be easily openable and closable besides being easy to dispense the product.

A well-packaged product is better protected from damage, pilferage as well as spoilage. Items that have been packaged well are easy to store and identify. The packaging industry has evolved over the years. These days we have disposable, recyclable, and reusable packaging for products.

Disposable Packaging Materials

Disposable packaging materials are usually for one-time use after which they are discarded. Foam materials and certain types of plastics used for packaging are examples. These find their way to incinerators or landfill sites that is a major cause of environmental pollution.

Besides causing environmental damage, if the disposal of such items is not managed scientifically and sensibly, it can have an adverse effect on the flora and fauna of the region. As such, most organizations go for recyclable or reusable packaging these days.

Recyclable Packaging Materials

Some materials can be reprocessed and reused a number of times before they are finally discarded. Such materials are called recyclable materials. Recyclable packaging materials are usually collected and sorted before being sent for reprocessing. The reprocessed material is used to manufacture packaging material or used to make another item.

An item that would have been otherwise discarded as waste is thus reprocessed and converted into another or even the same type of product. In this manner, such recyclable packaging materials are used several times before they are finally discarded and disposed of safely.

Biodegradable materials are also common these days. These are materials that decompose easily when left exposed to the elements of nature. Plastic wraps, shrink wraps, straps, cartons, etc. are examples of recyclable packaging materials.

Reusable Packaging Materials

Reusable packaging materials are used several times without having to undergo any major reprocessing. These materials are often very durable and easy to clean. Minor repairs can also be carried out on them to make them ready for reuse.

When reusable materials are used in packaging, most of the time they are returned to the manufacturer by the customer through intermediaries. Automobiles, electronics, and beverage industries are common examples of industries that use reusable packaging materials.

Packing Materials

When several small packages are placed together to form a larger unit for handling or transport, it is said to be packed. Packing also makes use of materials similar to packaging. The main purpose of packing is to protect the smaller packages from damage or theft and for ease of handling and transport.

Packing holds the smaller units together as larger units, which makes it more convenient to handle. Besides, attractive packing is also a form of marketing and communication.

Examples of packing range from modern shipping containers to cartons packed with smaller units inside, pallet loads, shrink wraps to wrap oddly shaped items, etc.

While packing goods, packers must ensure that the packages are secured properly and the load is evenly distributed within the packing. Since Material Handling Equipment (MHE) such as forklifts, cranes, hoists, lifts, conveyor belts, etc. may be used to handle such loads, packing should be in such a way that they can be handled easily by such equipment. They must also be compatible for storage in racks or other standard storage facilities.

New product development projects often include the packing and design of the product.

Trends in Packaging and Packing

Environmental concerns and the need for cost reduction have had an impact on packaging and packing. Organizations are laying more emphasis on the usage of packaging and packing materials keeping these two points in mind.

Innovations in the field of packaging and packing have helped organizations meet these goals. Reduction in the materials used, the use of smart packaging, usage of reusable or recyclable materials, and space-saving designs are some of the other methods employed by them to bring down costs while at the same time reducing the negative impact on the environment.

Marine Insight

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Functions of a Warehouse – A Detailed Guide

Warehouses in the olden days were used purely for the storage of goods. They were usually large buildings located near railway junctions, ports, or business centres.

These warehouses were given on rent wholly or partially for storage of goods, machinery, etc. with the customer having to arrange all activities such as unloading, loading, and packing of their cargo.

Gone are those days when a warehouse meant strictly ‘storage space only’. Most modern warehouses are architectural and technological wonders that cater to almost all the supply chain requirements of its customers.

A supply chain includes all the stages a product passes through, from its production until it reaches the hands of the end customer. Warehousing is an integral part of the modern supply chain and logistics operations. It is where most of the operations take place.

According to 2020 data released by the World Trade Organization (WTO), 17.5 trillion USD worth of goods were exported between countries (this is USD 2 trillion less compared with the figures of 2019, as a result of the slump in trading activities caused by the Coronavirus pandemic). As we can see, this does not include goods sold within countries.

The supply chain of the goods thus traded would have included its storage at some point in time. Imagine the warehouse infrastructures required to hold and handle this whopping quantity of goods!

Are Warehouses Necessary?
The simple answer to this is Yes. Warehousing of goods becomes a necessity due to the time gap between production and demand.

Even goods that are made on demand have to be stored for a brief period. The facility to store goods allows companies to produce or manufacture their products in advance to meet future demands.

For goods with seasonal demand, storage is a necessity. They are produced in advance and warehoused to meet future demand.

Economies of scale require production in prescribed large numbers that cannot be sold to customers all at once. Such goods have to be stored until there is demand for them. Temperature-controlled warehouses cater to the needs of storing ambient, chill, or frozen goods.

Classification of Warehouses
Warehouses may be broadly classified as government-owned, owned by private companies, or by cooperatives.

Bonded warehouses are either run by the government or licensed to private operators by the government. They allow storage of goods without having to pay customs duty until these goods are taken out of the bonded warehouse.

Bonded warehouses are usually used for the storage of high-value imported items such as alcoholic drinks, tobacco, certain electronics, etc.

Requirements of a Modern Warehouse

Besides a convenient location, good accessibility by road, availability of space, and the latest material handling equipment, a warehouse should be designed in such a way that receipt of goods, inspection, storage, issue of goods, and other functions can be done easily.

To avoid bottlenecks inside the warehouse, the Material Flow Planning (MFP) has to be perfect. Material flow may be planned, based on the U-Flow or Through-Flow methods.

In the U-Flow method, goods flow in the shape of ‘U’ through the warehouse. The receipt and dispatch of goods happen at the same side of the warehouse building with the same docks being used to receive as well as dispatch goods.

In the Through-Flow method, goods flow from one end of the warehouse building to the other, often in a straight line. To simplify, goods are received at one end of the warehouse, taken inside for storage, picked, and dispatched from the other end.

The layout of a warehouse has to be planned properly before construction, taking into consideration the following main factors:

  • Fire-fighting equipment
  • Sufficient spacing – aisles, passages, etc.
  • Sufficient space to manoeuvre modern material handling equipment.
  • Ventilation and lighting
  • Heating and refrigeration systems
  • Office space
  • Provision for future expansion of the facility

A good layout design is critical for the maximum efficiency and space utilization of a warehouse.

The Main Functions of a Warehouse
Warehousing is a key component of any supply chain. Let us take a look at the main functions of a warehouse that usually starts with the receipt of goods.

Unloading
Goods are delivered to a warehouse usually by road transport. Such goods are referred to as Goods Inward. Whether it comes by cargo ship, aircraft, or goods train it has to be moved to a warehouse, however, close it might be to the quayside, runway, or train station using a truck or other suitable vehicle.

The operations manager of the warehouse has to plan and ensure that the resources and arrangements to receive such goods are made in advance. This is called a Goods Inward Plan (GIP).

It may be necessary for the warehouse to arrange for the vehicles to shift cargo from the seaport, airport, or railway station. Staff to unload the goods inward have to be assigned and the necessary material handling equipment made available.

Goods that have come in are unloaded at the warehouse and arranged for an inspection.

Inspection
The warehouse operations staff have to ensure that what is shown on the packing list is what is actually received at the warehouse. The packing list and the invoice should also match. A goods receipt inspection includes, but is not limited to checking that the quantities are correct, prices shown are accurate, and that there is no damage to the goods or deterioration in quality when received.

Any inaccuracies or other issues should be documented and brought to the attention of the operations supervisor who would then take it to the attention of the stock administration staff. The stock administration staff informs the shipper, the transporter, or the insurance representative of such issues.

Once unloading and inspection of the goods are completed the warehouse operations staff prepares an Inventory Receipt Report (IRR) by consignment. The IRR would show details of the goods received including details of goods received short, excess receipts, expired or damaged goods received, and other such information.

Put-away and Storage
This is the stage when the goods that are received and inspected are moved to their respective system allocated locations on racks inside the warehouse. Very seldom is block-stacking followed in warehouses these days.

In block-stacking, loads are placed on the warehouse floor and stacked on top of each other to a stable height. While it saves space, it can be quite cumbersome to handle.

The IMS allocates locations for the goods inwards based on put-away rules as decided by the warehouse management. Goods for put-away are normally identified using bar codes. Bar codes are computer-readable. Bar code scanners convert the data into readable information such as product and package information, location, etc.

The IMS works out a pattern of storage whereby the stored goods can be accessed easily for later distribution based on the principles of FIFO (First In – First Out), FEFO (First Expiry – First Out), LIFO (Last In – First Out), etc.

Some warehouses use light technology where a system-controlled light guides the operator to the exact location to place the goods. A Put-away report shows the goods that have been received into the warehouse with their respective details and location in the warehouse.

Systems Receipt
Once the put-away of goods is completed, the received quantities are accepted in the warehouse Inventory Management System (IMS). The Stock Administrators of the warehouse are usually responsible for this. They will account for the exact quantities received, at the agreed prices, taking into account short receipts, damaged stocks, etc.

The output here is usually in the form of a Goods Receipt Note (GRN). Typically, with the issue of a GRN, the specific goods are available in the computer systems for re-distribution or sales.

Issue of Stocks
Stocks are issued from a warehouse based on orders received from their customers who could be internal or external. Stocks that are issued are known as Goods Outward.

Most IMS are designed to automatically uploaded orders into the systems for processing. Once orders are uploaded, the system detects out-of-stock items and generates a Pick List (PL) for the remaining ones showing the locations from where they are to be picked by the operator.

Similar to the technology used for put-away, light-based technology may be used to guide the operator to the exact location to pick the goods. Based on the final Pick List, an invoice or Goods Issue Report (GIR) is printed.

The stocks thus picked are moved to the loading area as per a loading plan. A Daily Loading Plan (DLP) is prepared by the operations supervisor taking into account the total number of orders to be dispatched for the day and the priority of each order. The required trucks or truck trailers have to be arranged for the transport of these goods and staff assigned to handle the loading functions.

Documentation
Goods that are taken out of the warehouse for delivery or dispatch have to be supported by their proper documentation. Invoice, packing list, shipping documents in the case of goods for export, clearance from Road Transport authorities in certain cases, etc. are just a few of these. These have to be collated and kept ready for the driver of the truck transporting the goods.

Cross Docking
Also known as Dock-to-Dock, cross-docking is a very productive method of transporting goods between locations without having to make use of intermediate storage. In this method, instead of storing the goods, they are checked and immediately loaded onto a mode of transport for direct delivery to the customer.

Cross-docking is carried out from a warehouse marshalling or staging area. This is the area where goods are assembled temporarily during their receipt or dispatch. In some cases, it may also be done from the port/airport/railway yard and sent directly to the customer. Cross-docking is usually done when goods are transported from the supplier to the distributor. It saves time, effort, and money.

Stock Counts
Warehouse stock counts or stock-takes help to confirm the accuracy of stocks held in the warehouse. In other words, it checks whether the stocks as per physical count match with the stock of goods according to the system, at a given point in time.

Generally, an annual stock count is a legal requirement for a registered business. It may also be conducted quarterly or half-yearly. Periodic stock counts help to spot errors or issues such as pilferage etc. Discrepancies that are found during a stock count are later corrected or written off after approval by the authorized manager.

Pest Control
Pests cause stock losses amounting to several billion US dollars every year. All warehouses have to be disinfected at regular intervals to prevent damages caused by vermin, rodents, or other pests. The damages caused by these creatures can result in major losses, both to the stocks as well as the warehouse infrastructure.

For example, rodents may gnaw into the wiring of machinery, or plastic and wooden parts, causing fires or other serious accidents. Fumigation, traps, poison baits, etc. are some methods of pest control.

Other Value-added Services
Warehouses often provide value-added services to their customers to retain them as well as attract new customers. Some of the value-added services include packing, labelling, documentation, and other such services.

Warehouse Security
Goods that are stored inside a warehouse and the warehouse infrastructure may be worth millions and require security from damage, pilferage, theft, arson, etc. Warehouses have an obligation to safeguard the goods that have been entrusted in their safekeeping by their customers.

CCTV cameras, motion sensors, alarms, and effective patrolling in and around the warehouse periphery are essential for the safekeeping of the property and goods. A large warehouse may have a security manager to look after such matters and to liaise and maintain a good rapport with the local police force, fire station, and other local authorities.

Insurance
Insurance cover is normally taken by the warehouse management for the stored goods as well as the warehouse infrastructure and all other equipment. There are various types of insurance for warehouses. These include partial as well as comprehensive insurance to cover incidents like fires, floods, and other types of losses.

However, it will have to be established that the loss was caused despite the warehouse having taken all possible measures to counter these. The customers may also take insurance on the goods owned by them.

Machinery and Equipment Used in Warehouses
Machines and equipment are used in warehouses and yards for the safe and efficient handling of goods and materials in bulk or as separate smaller units. These are known as Material Handling Equipment (MHE). They help to load and unload goods (goods outward – goods inward), move heavy cargo between locations, etc.

Examples of material handling equipment are forklifts, cranes, pallets, heavy-duty sheets for covering goods, etc. A warehouse manager has to ensure that all MHE are serviced according to their prescribed service intervals and maintenance contracts are in place.

Modern warehouses are designed to ensure the maximum efficiency of their operations. Such warehouses have the latest equipment and software such as an Inventory Management System (IMS) to optimize their inventory-related processes. The IMS is often integrated with an Enterprise Resource Planning (ERP) system to bring together the different functions and departments, thereby enhancing the organization’s system capability.

However, qualified and efficient staff are the backbone of any successful logistics operation. How much ever automation and digitalization that may have come in recent times, efficient staff to handle these is of great importance.

In an industry that is dictated by fierce competition, warehouses that make use of the latest trends in technology and which are run by efficient managers and staff are always the front-runners.

Please note that what we have mentioned in this article are some of the main features and functionalities of a modern warehouse.

There may be warehouses that are equipped with other latest and customized equipment. Warehouses may also offer facilities and services to their customers, other than what is mentioned here.

Source: Marine Insight

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What Is Break Bulk Cargo?

Trading centres of the world are separated by vast distances but globalization has brought them closer. Communication is almost instantaneous such as by phones, emails, and video calls. While this may be the case, goods still have to travel the distance between the seller and buyer.

Modern transport equipped with the latest technologies is a far cry from the horse-drawn carts, steam locomotives, and steamships of the past. Transport, as well as the equipment used in the handling of cargo, are bigger, much faster, and more efficient these days.

Modern intermodal containers have revolutionized the goods transport scene. The largest container carrier HMM Algeciras can take more than 24,000 TEU!

Even as you read this, more carriers with increased container-carrying capacities are getting readied in the world’s largest ship-building yards.

But can businesses across the world rely only on intermodal containers to transport their goods?

Grains, minerals, oil, etc. that need to be transported in large quantities are examples of goods that are often transported otherwise. They are stored as smaller units in the holds of a ship or on the storage areas on the deck. Such a consignment is called break bulk cargo.

A bill of lading of a break bulk consignment would normally show the commodity and its total volume or weight. The smaller units in which they are packed might be as bags, crates, barrels, pallets, etc.

Break bulk cargo is packed in smaller units for the ease of loading and unloading using cranes, conveyors, forklifts, or even by hand.

Cargo that is transported as break bulk is moved from land to a ship or vice versa by the above means, unlike a container that is pre-packed, sealed, and lifted from the quay onto the ship (or ship to the quay). Containers are loaded by gantry cranes that can lift such heavy loads.

Minerals, ores, oils, and gases are also transported loose. In such cases, they may be stored in large silos, containers, or special holds built on large ships.

Packing of Break Bulk Cargoes

Bags
Break bulk cargoes of grains, coffee, cement, etc. may be packed in bags of a standard size such as 25 or 50 KG bags. In such cases, to prevent damage to the goods caused by seawater or moisture, the bags are made of special water-proof and weather-proof materials.

They must also carry clear written and visual instructions on handling to prevent damage caused by hooks and other such lifting or carrying equipment. Bags are normally kept away from the sides of the ship or bulk heads to prevent damage caused by seawater. They may also be covered using water-proof sheets.

Crates and Corrugated Boxes
Crates help to transport certain types of goods as break bulk. They may be made of wood or plastic. Crates help to stack the cargo while protecting what is inside. Goods that are commonly transported in crates or corrugated boxes as break bulk are machines and machine parts, fruits, etc.

Corrugated boxes are usually made of cardboard or fiberboard but are quite sturdy. There are different grades of such boxes that are resistant to moisture and other inclement weather conditions. Care should be exercised while stacking corrugated boxes and not exceeding the prescribed limit for stacking.

Mostly, crates and corrugated boxes are palletized for transport to make the loads stable and for ease of loading.

Barrels and Drums
Barrels and Drums are used in the transport of liquid cargoes such as oils and associated products. Whiskies and certain other alcoholic drinks are also sometimes transported in barrels or wooden casks. Drums are made of metal and can be stored upright or on their sides.

When stored on their sides, special heavy-duty wedges are used to prevent them from rolling. Packing material is sometimes placed between barrels to prevent them from rubbing against each other.

Pallets
Pallets are either made of wood or plastic and come in different sizes. The widely recognized ones are the standard pallet and the euro pallet. The former measures 48” X 40” while the latter is 47.24” X 39.37”. Goods can be stacked and secured on such pallets for ease of loading and storage onboard a ship.

Loading of Break Bulk Cargo
Break bulk cargo is usually delivered to the quay by trucks or cargo trains and loaded directly onto a ship. In some cases, it is brought and stored in the port warehouse before a ship’s ETA (Estimated Time of Arrival).

When the ship arrives and it is ready for loading, these goods are moved to the ship. This is usually done when there is a large number of goods for loading and it has to be brought in several batches. Port warehouse storage is opted by shippers when goods have to be brought in from different locations.

The ship’s holds or the storage areas have to be washed, cleaned, and dried before receiving a break bulk load.

Unloading of Break Bulk Cargo
When a ship arrives at the port with its load of break bulk cargo, it is offloaded directly onto trucks or train wagons and taken to its destination. In certain cases, it may be offloaded and stored at the port warehouse from where it is taken by the consignee at a later point in time. This is often done when the consignee does not have a warehouse to store the goods.

Besides, port warehouse storage charges are usually lower than those of private warehouses outside the port area. Once unloading is complete, a ship’s stowage area is cleaned of all traces of the cargo that it had carried, washed, and dried before it is ready to receive the next load.

Break Bulk V Containerization
Availability of labour is a critical factor in the handling of break bulk cargo offering employment to many. This manual method of loading and unloading requires only the minimum shore facilities such as cranes and other equipment. Transfer of goods from ships to smaller feeder vessels is easier when it is break bulk.

Break bulk cargo used to be the only method of transporting cargo until the invention of the modern shipping container.

The multi-modal shipping container revolutionized the transport industry in the 1960s. Besides bringing about a drastic reduction in shipping costs, it made the movement of goods between different locations easy and safe. Containerization reduced handling damages and pilferage of goods.

Supertankers and carriers can carry liquids, gases, and grains in their large and specially constructed holds.

Innovations in packing and transport along with the above reasons are perhaps behind the steady decrease in the volume of cargo that is moved as breakbulk these days.

Source: Marine Insight

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What is Tare Weight of a Container?

Other than the container number and the Container Safety Convention (CSC) plate fixed on intermodal containers, various other acronyms and short forms can be found displayed on them.

Typically, all this information is found printed on the doors of the container. The most prominent among this data being the Max Gross or MGW, Tare or Unladen, Net or Payload, and Cu. Cap. Details.

The MGW is also required to be shown on the CSC Plate.

Just like the container number and the CSC plate that must be displayed on a container, the details regarding the different weights are also a requirement for any intermodal container that is used in shipping and freight.

Here, we will take a look at the term tare weight of an intermodal container, and understand its significance.

Simply stated, tare weight is the weight of an empty container. The term unladen weight is sometimes used in place of tare weight. Tare and unladen weight means the same and it is the weight of the container when it is not loaded with cargo.

The tare weight of a container is shown on the container along with the other essential details of the container. Typically, the container tare weight when added with the weight of the cargo gives the gross chargeable weight.

To understand tare weight better, we may quickly go through some of the other terms mentioned above. To begin with, a simple example would help us to understand these terms better.

Consider a bottle of tomato sauce purchased from the supermarket. The label on this bottle would show the net weight, while some other products might include the gross weight also on their labels.

Net weight is just the weight of the tomato sauce inside the bottle. It does not include the weight of the packaging or the bottle. The weight of the packaging or the bottle is the tare weight. If you add the weight of the tomato sauce and the weight of the bottle, then you have the gross weight. Gross weight is the weight of the product and the weight of its packaging.

Max Gross (MGW)
In shipping, maximum gross weight (MGW) is the total allowable weight of the container as well as the cargo that is packed inside it. Now, this may also include any extra packaging that goes into the container for the protection of cargo during handling and transport.

Maximum gross weight and gross weight are not to be confused with each other. While MGW is the maximum weight allowed for the container and cargo, that cannot be exceeded, the gross weight is the actual weight of the container and the cargo inside it. The gross weight should naturally be less than the maximum gross weight displayed on the container.

Net or Payload
The net weight, shortened to Net, is the weight of the goods inside the shipping container. It includes the weight of pallets or any other packaging materials that are used to pack the goods inside the container.

Cu. Cap. or Cubic Capacity
The cubic capacity shown on a container is its cargo-carrying capacity in volume. Cubic capacity is usually measured and shown in m3 (Cubic Meter) or f3 (Cubic Feet). Sometimes it is shown as CBM (Cubic Meter) or CBF (Cubic Feet). One CBM is the volume of a cargo that is 1 meter in width, 1 meter in height, and 1 meter in length.

The CBM or m3 of cargo is used in the calculation of its chargeable weight. Converted to kilograms, 1 CBM equals 1000 kilograms or in other words, 1 KG equals 0.001 CBM.

A 20’ GP container has a cubic capacity of 33 m3 (CBM) while that of a 40’ GP container is 67 m3 (CBM).

One thing to note here is that the cubic capacity shown on a container is the total that can be accommodated within and is inclusive of any packaging or palletization of the goods.

Tare Weight and Freight Calculation
How is the freight rate of cargo calculated? Factors such as the method of transport – whether by land, sea, or air, type of goods to be shipped, the distance from the port of origin to the port of destination, goods pick up and drop-off points, and the weight or volume of the cargo are used to arrive at freight rates.

While several factors are considered in the calculation of freight rates, the tare weight and the net weight of the cargo being shipped are among the main factors when it comes to the freight of cargo by an intermodal container. Shipping documents such as bills of lading, etc. show these two figures on them.

The correct gross weight, tare weight, and net weight are used to calculate the chargeable weight of a cargo being shipped. All the parties involved in doing business – the buyer, the seller, and the transporter should understand the importance of each of these terms. They should know how they are connected so that they are used correctly in documentation to avoid any misunderstanding or miscalculation.

The tare weight of a 20’ GP container (2.35 M width x 2.39 M height x 5.9 M length in meters) is 2230 kilograms. A container of this size can take a maximum load of about 26500 kilograms weight.

A 40’ GP container (2.35 M width x 2.39 M height x 12.03 M length in meters) has a tare weight of 3780 kilograms and it can take a maximum load of about 26700 kilograms weight.

How are Containers and Cargo Weighed?
Shipping lines normally accept the weights that are provided by the shipper. However, intermodal containers are sometimes weighed using weighbridges. A weighbridge is a heavy-duty platform scale that is mounted on a strong concrete foundation that can withstand the enormous loads and their weights.

Weighbridges are large enough to accommodate a trailer truck with a loaded container on it. The difference between the weight of the vehicle with the loaded container on it, and the weight of the vehicle without any load confirms the declared weights as per the shipping documents.

What are the Weights Shown on a Bill of Lading?
Being a legal shipping document, a bill of lading must show the correct weights, quantities, descriptions of the products, and all other required details of the consignor and consignee on it. With regard to weights, a typical bill of lading shows the tare weight of the container and the gross weight of what is being shipped.

Misdeclaration of Weights on a Bill of Lading
Misdeclaration of the weight of cargo on a bill of lading can have drastic consequences. It can result in accidents such as container stack collapse, failure of equipment, etc. There have been instances of ships running aground because of incorrect stacking based on the declared weights. Misdeclaration of weights on shipping documents is a serious offence for which the shipper can be held accountable.

Source: Marine Insight

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The History Of Containerization In The Shipping Industry

Container shipping is the most optimal method of shipping freight through sea routes. Bearing rich significance to the nature of maritime operations, the advent of containerization fueled a much need thrust into the marine sector propelling it to heights never seen before.

History of Container Ships

The history of containerization is a development that can be pinpointed to the mid-20th century. Pioneered by an US-based conveyance businessman Malcolm Mclean, cargo containers were fashioned in a bid to simplify the long-drawn processes involved in shipping of cargo through sea routes.

The extremely lengthy processes primarily meant that the cargo had to be suitably dismantled or separated before it could be loaded into the ships. This meant that effective labor was wasted in the initial dismantling and the later assembling procedures, and huge amounts of cargo had to be sub-divided merely because of technical restrictions and there was absolutely no standardization in the entire shipping processes.

Malcolm Mclean circumvented this protracted cargo transportation issue by modifying the basic structuring of a Second World War tanker vessel. The initial cargo containers utilised in the vessel were modified as well, and were wheel-less truck-carts. The entire success of such a novel initiative however depended on whether the modified truck-carts laded with cargo could be successfully placed into the vessel and thus transported to the necessary destination.

Exceeding expectations, the ingeniously devised contraption proved to be a huge success. This success meant that for the foreseeable future, shipping cargo – bulk or otherwise – could be carried out with the least possible problems.

Salient Features of Containerization

  • Transiting costs for the cargo to be shipped were reduced drastically on account of the elimination of the unwanted processes
  • Large amount of cargo could be transported which meant that transporters benefited from the economies of scale
  • The feasibility offered by shipping containers also ensured that the water navigable channels could be utilised for transiting freight internationally
  • Development of harbour facilities also took place simultaneously once the qualitative worth of container shipping began to spread far and wide

A major noteworthy development in the history of container ships was realized when major maritime organisations acknowledged the singularity that shipping containers offered to the marine domain. This acknowledgement was also marked by the establishment of set rules and regulations with respect to the sizing of the containers. In order to bring a common platform to all containers, the International Standardizing Authority (ISO) established the following:

  • Containers that measured 20-feet lengthwise. Such containers were soon referred to as TEUs (Twenty-foot Equivalent Units)
  • Containers that measured 40-feet lengthwise. Such containers soon came to be referred as FEUs (Forty-foot Equivalent Units) or more commonly, as Two-TEUs

Detrimental Effects to the Cargo Shipping Sector

Although containerization provided a breakthrough in the global shipping sector, there were several adverse effects that were felt because of the changes it wrought.

  • The labour force that was otherwise employed in the dismantling and the assembly-line operations, prior to the development of cargo containers started to become redundant
  • Motorised operational links meant that lesser number of labour force needed to be involved in the lading and unloading of the freight to be shipped
  • Semi-skilled labour force and even skilled labour force, engaged in carrying out only one kind of operations at harbour facilities were also negatively impacted

Present-era: Container Shipping

In the over 50-years of the initiation of shipping containers into mainstream maritime freight operations, a lot of advancement has been made. Today the global cargo shipping spectrum has widened to really enormous proportions while also helping several newer shipping conglomerates and even countries to enter the fray.

With the extent of containerised operations and technological developments in the same increasing almost every day, it wouldn’t be wrong to say that cargo movement in the present times cannot be visualised to fruition in the absence of container shipping.

Source: Marine Insight

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List Of Warehouse Material Handling Equipment (MHE) Used For Cargo

In warehouses, goods are handled either manually or by automated machines. Manual handling involves using various tools and equipment to lift heavy or sometimes out of gauge cargo.

Modern warehouses have a vast array of equipment, most of which are used in daily operations to receive, store, dispatch, and move goods within the warehouse.

Such equipment, known as warehouse Material Handling Equipment or simply MHE, help reduce manual effort while safely and efficiently executing various tasks.

Different types of material handling equipment are used to handle different kinds of cargo, such as bulk cargo or individual cartons. Bulk cargo could be solid, liquid, or gaseous.

Material handling includes the tasks that have to be carried out to move goods from one point to another – be it inside a warehouse or factory or between locations separated by a vast distance.

Material handling equipment is used throughout the entire chain of physical movement or storage of goods.

It is used in the movement of raw materials and during the process of production.

MHE is used to handle finished goods, during storage of these goods, and their transport and distribution. In short, MHE is required in all of the physical aspects of a supply chain.

Efficient handling of material using suitable material handling equipment throughout the supply chain is necessary to keep costs down and maintain a high quality of service.

The right MHE helps to prevent damage to goods while assuring the safety of the personnel handling them. They provide a continuous movement or flow of goods.

MHE eliminates unnecessary movements and minimises the required ones to the optimum, thereby helping execute the various functions on time.

Types Of MHE
Depending on the type of goods handled, some material handling equipment, such as certain types of conveyor belts or rollers, make use of friction or gravitational force to move the goods.

Typically, material handling equipment includes the following:

  • Manual pallet trolley
  • Battery-powered pallet trolley controlled by an operator
  • Forklift and Reach truck
  • Crane
  • Lift
  • Conveyor system
  • Robotics
  • Protective covers and safety equipment

Manual Pallet Trolley
Hand-operated pallet trolleys are wheeled, with a sturdy, strong fork in front. They are designed ergonomically to lift pallets from underneath, move, and lower them as required using a pumping action of the handle. Such pallet trucks are used to move pallets between short distances within a warehouse.

Battery-Powered Pallet Trolley
A battery-powered pallet trolley on the other hand uses electric power from batteries installed on the trolley to move, lift, and lower pallets. Some of them have a small platform for the operator to stand on while operating the MHE.

Both the hand-operated as well as the battery-powered trolleys typically carry up to 3000 kilograms load.

Forklift and Reach Truck
Forklifts or lift trucks are powered industrial trucks used to lift, move, and lower loads within a warehouse or over short distances. Forklifts can carry loads up to 50000 kilograms. The heavy-duty ones are used to move cargo containers, etc.

Similar to the forklift, a reach truck is much smaller and therefore more easily manoeuvrable. It can move quickly down narrow aisles to pick up or set down a load. Double-reach trucks that use a telescopic mechanism can go two pallets deep into a rack to pick up or set down a load.

Crane
The two most common types of cranes used in warehouses are the bridge crane and the jib crane.

Bridge Cranes
Bridge cranes are generally used to lift and move large, heavy objects in manufacturing and assemblies. It consists of a hoist on a bridge that carries on two rails that usually run the length of the warehouse. In addition, bridge cranes are used to access goods that are kept below the bridge.

Jib Cranes
Jib cranes are hoists that are mounted on a boom or a jib that is usually fixed to a wall or a sturdy, vertical post. Its access area is limited as the hoist moves only along the length of the boom.

Lift
Lifts are small platforms that can be operated manually or using a motor. These are used to move goods vertically from the floor to a higher level or vice versa, where it is received on a pallet trolley for further positioning.

Conveyor System
This is another type of equipment that is used to move goods along a metal or rubberised belt. Conveyor systems typically shift goods horizontally between fixed positions inside a warehouse or an assembly unit.

However, some systems use gravity or friction to move it at downward or upward angles. For example, belt conveyors and roller conveyors are commonly used in warehouses.

Robotics
Robots or machines that perform some of the tasks performed by humans are common these days. They are most useful in doing repetitive tasks or work that have to be carried out under hazardous conditions.

Robots can be programmed to do a job precisely and safely. They are instrumental in the handling and warehousing of dangerous chemicals or bio-hazardous materials.

Protective Covers and Safety Equipment
Some goods require protection from natural elements such as rain or sunlight, especially during their transport. The easiest and the most common method to protect such items is to keep them covered. Heavy-duty sheets made of nylon, plastic, or tarpaulin are normally used for this purpose.

Personal Protective Equipment While Handling Goods
MHE should be operated only by well-trained staff. To protect the operator from injury or accidents, Personal Protective Equipment (PPE) must be used. PPE includes items such as helmets or hard hats, protective clothing, masks, goggles, gloves, etc. They provide protection from flying objects, heat, electricity, chemicals, or particulate matter.

Using the appropriate PPE and following the prescribed safety procedures is key to preventing accidents.

With the current trend of standardised packaging and packing, the equipment used to handle goods also needs to be standardised as far as possible. Storage equipment worldwide such as racks, shelves, and pallets, are usually of standard sizes.

The most common equipment used to store and transport goods as a unit is the pallet. Goods can be stacked or stored efficiently, neatly, and safely on pallets. As a result, it is easy for buyers and sellers in different parts of the world to handle incoming and outgoing cargo using standard MHE and storage equipment.

Source: Marine Insight

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7 Major Ports of South Africa

The coasts of South Africa lie on the Southern end of the continent’s landmass. The country touches the Indian Ocean on its east and the South Atlantic on its West coast. This allows cargo and cruise vessels of all sizes to have 3-way access to the South African coasts. The major ports in South Africa line up along the 1,739 miles long coastline.

As of 2019, the country has over 8856 port calls that include ships of all sizes. Major credit to this goes to the mineral-rich diversity of the country. Moreover, South Africa’s developing economy also means that bunker and fuel oil resources are significantly cheaper. Hence, long route Ore Carriers, VLCCs, and other vessels often find South Africa as a suitable bunker port.

The deep mineral resources also see South Africa hosting 1.22% of dry bulk carrier port calls globally. Liquid bulk and container vessel calls reflect 0.3% and 0.45% of global traffic respectively.

The major ports contribute 92% of its 30,400 million dollar shipping trade. These ports export mainly to China, Germany, and the USA.

Let us review the 7 major ports in South Africa, their impact on the shipping landscape, location, operational information, and cargo attributes.

Port of Durban (Durban, South Africa)

The port of Durban has the highest vessel traffic in entire Africa. It also is the largest port facility in South Africa. This harborwas setup in 1824 under the British colonial identity. About 60% of the total shipping revenue of South Africa comes from the Durban Port Facility. The facility occupies Durban Bay, extending over 18.5 sq. km with 8.9 sq km of high-tide waterfront. Moreover, this port also handles 60% of the total container cargo shipping load of South Africa.

Cargo Handling

A collection of more than 58 berths handles container, dry bulk, and liquid cargo throughout the year. The facility operates vessels with DWT up to 2,30,000. Additionally, , their massive outer anchorage allows cargo lightening for vessels with heavier DWT. Ore carriers with a 300m+ length and a beam of 35m+ can easily ply alongside the facility. In 2019, the port recorded 3253 vessels (sea-going) calls with a cargo volume of 81.21 million MT. The volume is the largest amongst the major ports in South Africa by a significant margin.

Network and Layout

A large container inflow needs precise loading and handling facilities round the clock. The Durban port connects with more than 302 kilometres of railway network for transfers. The facility also holds two floating cranes with 23 MT and higher handling limits for off-shore handling. The network has 5 sections with the Durban car terminal, the container terminal, and the multipurpose terminal being the busiest. This facility operates with 1900 permanent employees and a total handling strength of 3000+.

Port of Richards Bay (The Richards Bay town, South Africa)

The establishment of Richards Bay in 1972 started with the Parliament’s approval for commercial harbour operations. The facility has 2.76 sq. kilometres of land area and 6 berths for sea-going vessels of all sizes. The port facilitates coal cargo operations and is one of the largest African ports to do so. In terms of gross volume, Richards Bay handles 55% of cargo amongst the major ports in South Africa. The facility easily welcomes large vessels with channel draught varying between 17.5 to 19.5 meters.

Cargo Handling

5 out of 6 berths specifically handle Coal as their primary cargo throughout the year. Moreover, vessels with 350+ meters length (VLOC) berth across the terminals for liquid and dry cargo. Richard Bay’s annual cargo handling reaches up to 80 million MT with coal occupying 2/3rd of the share. The commercial cargo operation for the year 2020 shows a high point of 92 million MT. Modern loading rates reflect a quantity of 50 to 65 thousand MT every day. The major sea-going vessels for these coal handling terminals fall in the 190,000 MT size range.

Network and Layout

The coal terminal connects with the railway loading facility expanding over 80 km. The cargo coming in the facility loads through four loaders (8500-11000MT/H) present across the terminals. Meanwhile, internal shifting and departure need pilot assistance with the varying tides.

Port Elizabeth (Gqeberha, South Africa)

The first mention of Port Elizabeth along the South African sea coast dates back to 1427. However, the British establishment in the 1830s is the beginning of its harbour status. The cargo operations of true commercial value date back to the year 1927. Transnet emerges as the major operator for container terminals in this port facility.

The quay length for the container terminal is approximately 1 km spread across 3 container berths. Moreover, 6 berths for breakbulk handling and 2 for ore bulk are present under Port Elizabeth authority.

Cargo Handling

The terminal allows bulk vessels with 12.1 m of draught to enter safely. Additionally, the cargo lightning operations for the bigger vessels (VLOC) take place at the outer anchorage. The channel allows over 310 meters of width for large ore carriers and tankers to enter. In addition to the bulk and container handling, Port Elizabeth has a berth for liquid cargo operations. An average of 1050 vessels over 36 months reflect in the port’s records. This amounts to 11.2 to 12.5 million MT of cargo volume operations yearly.

Network and Layout

The port utilizes railway and road transport for ore and breakbulk handling operations. Owing to its large size, the container handling capacity amounts to 375,000 containers. This comes with the port’s ability to handle standard containers over 5400 slots. Port Elizabeth also uses 2 ore berths and 1 liquid cargo berth for bunker operations. Manganese storage facilities, one of the few in the world, are present with a capacity of 350,000 MT.

Port of Cape Town (Cape Town, South Africa)

The port of Cape Town has a land area of 2.53 sq. km and a waterfront of 9.5 sq. km. Its establishment dates back to 1652 with a big part of the contribution by the Dutch. However, the cargo port facilities date onward to the mid-1800s with the British colonial setup. The establishment has 34 berths, including the repair and smaller boat layovers. 6 container berths serve the large container vessels with sea-going draughts up to 15.9 meters. The harbour also has a waterfall attraction and sees thousands of fishing and pleasure boat calls annually.

Cargo Handling

The port has a maximum of 24 MT handling capacity for road haulers and 22MT for cargo trains. This results in annual handling of 9.84 to 11.25 million MT of containers. Up to 2015, the port holds a record for 2520 vessel calls on average. However, a steep fall in the number due to port congestion show only 510 container terminal arrivals in 2020.

Network and Layout

The port facility has grain centres for handling 28 thousand cubic meters of sensitive grain cargo. Meanwhile, repair and drydock yards with a length of 369 meters are available for the large vessels. Transnet also facilitates inter-port connections as the major stakeholder of this port facility. Over 1200 handling and operation staff work over 360 days a year for terminal operations.

Port of Saldanha (Saldanha Bay, South Africa)

The Port of Saldanha, commonly the “Saldanha Bay” is one of the fastest Iron Ore terminals alongside Portland. The terminal exists since 1976 with Iron Ore exports to Asia and the Middle East leading the operations. Its expanse is over an area of 19.3 sq. km with water depth up to 23.7 m far out. Like many other major ports in South Africa, Transnet is the major operator for Saldanha Bay too. The facility is a primary loading point for cape size bulk carriers and VLOC vessels. It operates with 2 Iron Ore and 1 Crude oil berths and 3 berths for MPT. The maximum berth length is 318.5 meters.

Cargo Handling

The port of Saldanha operates with a conveyor loading system of semi-automatic nature. The loading design features 3 hydraulic rams of 16” design and no crane operations. Annual cargo handling statistics of 60 million MT are common for the facility. Meanwhile, the port facility runs 365 days a year for iron ore handling. However, the capsize vessels are dealt with only during daylight hours.

Network and Layout

The port of Saldanha employs over 670 people for routine cargo and port operations. An additional workforce of over 500 engages in the transport of cargo through trucks and smaller vessels. Transnet has an additional facility to connect major ports through roadways. An overall circumference of 91 km has railway tracks for cargo handling too. The Sishen-Saldanha line transports the ore from mines over a length of 861 km long tracks. The network is the spinal link between the mines at the Northern Cape to the port of Saldanha at the South.

Port of Coega (Port Ngqura, South Africa)

The port of Coega is also commonly known by its new name- Port Ngqura. While the Coega facility exists since 1999, Ngqura (new container terminal) dates back to 2002. Ngqura is the newest and deepest terminal for container loading with the highest draft amongst South African ports.

The berth draft is 18 meters for container handling and 16.5 to 18 meters for general cargo. A total of 7 berths operates round the clock for yearly cargo operations. The facility is 20 km from the nearest neighbouring port of Port Elizabeth and compliments Richards Bay too.

Cargo Handling

The first commercial container offloading operation in the port records is from 2009. Vessels with 12,500 TEU capacity are common berthing visitors at the container terminal. This terminal has an 18-meter datum and rounds off around the basin with 600 meters width. A 2 million TEU prospective handling capacity is possible as per port estimations. This facility aims to be the largest container terminal (by volume) amongst the major ports in South Africa.

Network and Layout

The port network facilitates 1680 reefer points for temperature-sensitive cargo handling. This comes under the 60ha container handling facility with an expansion plan for a further 30ha. Including the general cargo and industrial phase, the facility is spread over a 120 sq. km area. Starting with 12, the Ngqura port facility has over 500 regular workers with expansion plans of 1500.

Port of East London (East Cape Province, South Africa)

The port of East London is the solo river port amongst the major ports in South Africa. The coastal length of East Cape Province holds this facility at the Buffalo River. Formerly the Buffalo Harbour, this port dates back to 1836 under the colonial British setup for its start. A total of 12 berths (10 operational) for river vessels have alongside drafts between 9.1 to 10.4 meters. It consists of 3 containers, 2 general cargo, 3 ro-ro, 1 liquid, and 1 bulk loading terminal. The largest container berth operates with 90,000 TEU capacity per year.

Cargo Handling

A major ro-ro traffic inflow comes with the Mercedes Benz factory set up nearby. This means the facility handles as many as 180 thousand vessels every year. East London port has the biggest conveyor handling facility in South Africa with a length of 388 meters It works for incoming and outgoing cargo. The handling facility plans to expand the vessel roll over to 360,000 with additional 7,000 bay numbers. Moreover, a diverse range of breakbulk, container and liquid cargo operations take place.

Network and Layout

The port facility has an exclusive 8300 sq. meters of area for unit storage facilities. This allows them to handle a turnover of 125 vehicle units per hour. With the 8000MT per hour capacity of the conveyor, the annual grain volume network is over 2 million MT. A facility for loading vehicles for truck and rail transport is also available at East London port. It also employs over 180 cameras for automatic network monitoring and security features.

South Africa’s Shipping Expanse

South Africa’s geographical location makes it the pivot of global shipping. The Cape of Good Hope and the coastal region marks the approximate centre of Cape size vessel routes. Pairing with its mineral-rich natural inheritance, the country of South Africa has a major shipping role worldwide. The major ports of South Africa have direct sea routes to South America, North America, and Asian ports. This makes South Africa the biggest shipping presence in the African region with almost 2/3rd cargo traffic.

Source: Marine Insight

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Port of Laayoune (Port El Aaiun)

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LCL Shipping – Everything You Wanted to Know

When one thinks of shipping cargo by sea it immediately brings up pictures of gigantic freight cranes lifting containers onto giant freight carriers, that traverse the seas connecting different ports of the world. An estimated 85% of global trade is carried out by sea freight.

Large container ships, some that can accommodate as much as 23000 TEUs (twenty-foot equivalent units or 20’ containers) help to move this large volume of cargo around the world.

Remember the MV Ever Given that got stuck in the Suez Canal? It has a length of about 400 meters with a whopping cargo-carrying capacity of more than 20000 containers!

With some exceptions such as certain Out of Gauge (OOG) cargo etc., if all the cargo that is shipped in the world is by containers, how does one ship cargo that comes to less than a container load (LCL)?

A general answer to this would be – by container, once again!

Yang Ming launches extra loaders on transpacific and Asia-Europe tradesHowever, these less than container loads are consolidated with other similar LCLs and packed inside a container to form a full container load or FCL, and that is how we see the container-laden vessels going about!

Groupage is the activity whereby the groupage operator consolidates several LCL cargo for shipment as full container loads.

Upon reaching the destination port, these LCL cargoes are unloaded and segregated by the operator for delivery to their different customers or a single customer after completion of the port and customs formalities. This process is also known as Consolidation.

Documents Required for Shipping LCL

Are the documents required for shipping LCL different from what is required for an FCL? The answer is No. Almost all the documents that are required to ship cargo as FCL are required for LCLs too. In general, they are:

Bill of ladingCommercial invoicePacking listCertificate of OriginDangerous cargo certificate (if required)Insurance certificate

Packing Requirements for LCL shipments

Less than container load shipments need extra care while packing and labeling. This is because they are transported with several other small shipments. It may also involve multiple handling. Unless the packing is durable there are chances of damage to LCL cargo.

Normally, cartons made of corrugated cardboard are used to pack the cargo. Depending on its nature, shockproof packaging materials such as packaging cushions, bubble films, etc. are also used while packing to keep the cargo safe.

Such packed cartons are normally stacked on wooden pallets following the shipper’s instruction on the HI/TI. We will look at HI/TI later on in this article.

Pallets

Pallets are usually made of wood. Plastics or recycled materials are also used these days for the manufacture of pallets. It is a small platform on which goods can be stacked neatly. This is then shrink-wrapped (using a plastic stretch film) making it more secure for transport. Other than helping to hold the cartons together, shrink wrapping helps to protect these goods from any accidental spillage of liquids or moisture.

Warehouse and logistics MHEs (Material Handling Equipment) such as forklifts or pallet jacks can easily lift and place, or remove such pallets from their storage racks or intermodal freight containers.

Pallets make packing, handling, and transport of small cargo more orderly and secure.

The two common pallet models used are the Standard wooden pallets and the Euro pallets. While the standard wooden pallet measures 48” X 40” the Euro pallet has a dimension of 47.24” X 39.37”. There are several other pallets of different sizes available in the market. However, the ISO (International Standards Organization) has limited the different sizes to 6 to avoid confusion and ambiguity.

Pallets

A standard pallet can hold about 1000 kilograms (1 ton) or 1.8 cubic meters (CBM) approximately.

Wooden pallets need to be heat-treated or fumigated at regular intervals to prevent pests and disease-causing organisms from being transmitted through them.

What is HI/TI?

HI/TI is a common reference in logistics when it comes to configuring pallets. In some places, it is known as TI/HI.

HI/TI or TI/HI is the number of cartons that can be layered and stacked safely on a pallet. HI is the number of layers of cartons on a pallet while TI is the number of cartons on each layer. HI is the height of the pallet in tiers or layers and TI is the number of cartons per tier or layer.

It also shows the total number of cartons on a pallet. Let us take a simple example here:

HI (number of layers or tiers on a pallet): 8

TI (number of cartons in a layer or tier): 10

Total number or cartons on the pallet: 8 X 10 = 80

The HI/TI is critical for the stability of the pallet. This should be followed correctly while building a pallet load.

Labeling LCL Cargo

Another most important requirement is labeling. Labels with clear handling instructions and the address of the consignee ensure that the cargo reaches the correct address safely and is not mixed up with others.

Instructions help the loading and unloading staff to handle the LCL accordingly. Certain goods may require to be kept the ‘right side up’ always.

Fragile goods will have strict stacking limitations and instructions. Such cargo has to be always kept on top of other more-heavier cargo. The right instructions help to prevent damage during transport and handling.

Labels should be affixed on the cargo before shrink wrapping so that the shrink-wrap acts as additional protection for the labels from peeling or getting damaged.

Container Freight Stations

This is where your LCL cargo is taken to once it is picked up from your warehouse by the groupage operator or freight forwarder. Sometimes, depending on the shipping agreement between the buyer and seller, LCL cargo is packed and delivered to the CFS by the shipper (seller).

Container Freight Stations (CFS) are warehouses or yards where cargo from several different shippers is consolidated or deconsolidated. It can be considered as a staging area just before loading the cargo on board a vessel, as in the case of exports, or delivery to the customer, as in imports.

Container Freight Stations handle both full containers as well as LCL shipments. LCL shipments that are consolidated are for export while LCL cargoes that are received (imported) are segregated and prepared for delivery to their customers. Customs clearance and other procedures normally take place inside the CFS that are owned by the shipping line or by the terminal.

Container Freight Stations are normally located inside the port terminal area or close to it. The general services provided by CFS are drayage, movement of containers, stuffing and de-stuffing, storage, stacking, etc. Fees for these services are charged based on cargo volumes.

LCL shipping is cost-effective and can be tweaked according to the shipping needs of an organization. As soon as the goods are ready it is good to go.

However, some points that one should bear in mind while shipping LCL are as follows:

The shipper cannot decide the other goods with which their LCL cargo should be transported. The LCL cargo operator will want to fill a container to its optimum capacity at the earliest and get it shipped. They may not exercise caution while grouping the different goods and as such, there is always the danger of incompatible goods being put in the same container.

An example for this would be when a certain strongly scented product is loaded along with food items in a container. A strong smell inside the enclosed space of a container would easily get on to the food items making them inedible.

An example for this would be when a certain strongly scented product is loaded along with food items in a container. A strong smell inside the enclosed space of a container would easily get on to the food items making them inedible.

Also, any delay on account of a single LCL shipment inside the container, such as due to wrong customs documentation, etc., will delay the rest of the cargo inside the container.

Source: Marine Insight

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Guide To Types of Warehouses for Shipping

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Guide To Types of Warehouses for Shipping

Importance Of Warehouses
Goods in the process of shipping need safe and secure storage to protect them from the elements of nature, damage and destruction due to careless handling, pilferage, etc.

In business, goods require storage as they wait for the customer. Warehouses are buildings and related infrastructure that are used for the storage of goods.

Warehouses have the facilities for receiving goods, stacking or storing them safely, and picking these goods when it is time to ship them to a customer or a new location.

These activities have to be carried out while ensuring the safety and security of personnel handling the goods at the warehouse, as well as the goods.

Modern warehouses have come a long way from traditional goods sheds or goods yards.

A goods shed is a building without any storage infrastructure that is used for the stacking of goods. Usually, such buildings have no proper safety or security features. A goods yard is an open but usually enclosed compound where goods are kept.

Most modern warehouses are engineering marvels. They have the latest storage and handling equipment and inventory management technologies.

Guide To Types of Warehouses for ShippingWhile optimizing storage space, these latest features ensure accurate stock-keeping and picking of goods.

When the world is more conscious about the quality of products, food safety, etc. security and hygiene of the stored products are given utmost importance in such warehouses.

Important Features of Modern Warehouse
Let us take a look at some of the important features of a modern warehouse.

Availability of Appropriate Storage
Most modern warehouses have an ambient, chill, and frozen storage facilities to cater to the different requirements of the market. It is common to have a customer with the requirement for these three types of warehousing under one roof.

Accessibility to Markets and Ports
Most successful warehouses have proximity to ports. It makes transportation of goods easy – for imports as well as exports.

Safety and Security
For the safety and security of personnel as well as the goods stored within, warehouses these days, have well-trained security staff, CCTV, motion sensors, temperature sensors in storage areas, fire-fighting equipment, etc. They meet all the safety and security standards prescribed by the relevant authorities.

Efficient and well-trained staff
Well-trained and efficient staff help run a warehouse smoothly through proper planning and execution of operations.

Latest storage and handling equipment
Modern technology plays an important role in the success of any warehousing and logistics operation. Equipment, machinery, and software used should be upgraded periodically to meet the demands of the market while making it easy for the user to handle.

Latest storage and handling equipment

Cross-docking facilities
One important feature that most customers look out for in warehouses is the facility to cross-dock.

What is cross-docking?

When goods are received and picked immediately for dispatch and delivery without storing them inside the warehouse, it is called cross-docking. This saves time, storage space, and cost.

Warehouse Management System (WMS)
A Warehouse Management System (WMS) software optimizes storage and the receipt-stacking-picking procedures. It is a system of optimized inventory management.

Enterprise Resource Planning (ERP)
ERP software encompasses inventory management, principal and customer relationship management, as well as accounting. This all-in-one software integrates the functions of a warehouse or even the whole business.

Emergency backup
Facilities for backup in the event of power failures, machinery and equipment breakdown, and other unforeseen calamities should be in place.

Some modern warehouses even have agreements partnering with other warehouses to provide on a reciprocal basis, storage and other facilities in the event of a breakdown.

Large business houses may own warehouses. Those with no warehouse facilities have the option to go to public or private warehouses for their storage needs.

A broad classification based on ownership and running of warehouses includes public, private, and cooperative warehouses.

Types of Warehouses

Public Warehouses
Public warehouses are government-run but available to both the public and private sector businesses. They might not be state-of-art or technologically in front, but they serve the purpose of storage of goods at affordable rates.

Most such public warehouses are located in easily accessible areas that are close to markets as well as seaports or airports.

Private Warehouses
Private warehouses are run by private organizations. Some of them may be for the exclusive storage of goods of the owning company while others are available for the storage of goods to the public.

Other than accessibility, being technologically forward is their strong point. These days most private warehouses have moved from just being storage locations to logistics service providers.

Other than providing storage space for the goods of their customers, they help with planning, implementation, and execution of the customer’s transportation needs, ordering, picking of goods, and purchase requirements. In other words, it means all the inbound and outbound activities of the customer.

The terms ‘inbound and outbound’ broadly translate to purchases from principals and sales to customers. Modern logistics companies usually meet all the requirements of their customers.

Private Warehouses

They may offer warehouse management systems (WMS) for accurate inventory management and enterprise resource planning (ERP) for automation of all logistics-related activities including accounting and customer relationship management (CRM). In certain cases, the ERP includes WMS.

Cooperative Warehouses
Farmers, orchard and vineyard owners, aqua-culturists, etc. usually form cooperatives. These cooperatives may own warehouses that provide the appropriate storage space to their members at subsidized rates.

Depending on the availability of space, cooperative warehouses may also let it out to outside parties at a slightly higher rate.

A further categorization of warehouses based on utilities provided would include bonded warehouses, consolidation warehouses, smart warehouses, etc.

Bonded or Duty-Free Warehouses
Bonded warehouses are customs-approved warehouses that allow businesses to store their imported goods before payment of customs duties and taxes.

Good can be stored in bonded warehouses for an extended period until it has to be taken outside for sale or use after payment of customs duties and taxes.

The goods that are stored in bonded warehouses are classified as ‘duty-free’. Once customs duties and taxes are paid on the goods that are taken out, they are called ‘duty-paid’ goods.

Storing goods in a bonded warehouse does away with the need for immediate payment of customs duties and taxes upon receiving the goods.

It helps the working capital of a business as goods are cleared directly to the bonded warehouse without payment of customs duty and taxes.

This is beneficial to businesses that import high-value goods with a high rate of customs duty.

Customs duty is paid only when goods are cleared. Goods stored in bonded warehouses can be reexported easily. It also facilitates quality checks, sorting, packaging, or processing of such goods while in the bonded storage.

Consolidation Warehouses
When several cargo batches of small volumes from customers, meant for the same destination are combined and shipped, it is called consolidation. Such goods are collected, segregated, and sent by sea freight, usually as full container loads (FCL).

Consolidations help when the volume of cargo to be shipped is small. Consolidators collect cargo from the different customers, consolidate these quantities from their consolidation warehouse to full or near-full container loads for shipment. This helps to bring down the freight cost. This is also called groupage cargo.

Smart Warehouses
Smart warehouses use the latest in technology for receiving, storing, and picking of goods. Smart warehouses may also make use of drones or robots for picking, packaging, and stacking goods.

Enterprise resource planning (ERP) and warehouse management system (WMS) helps to ensure minimum human intervention in matters relating to finance, customer relations and the accuracy of stocks.

Such warehouses are found very useful for the storage of high-value electronic parts, pharmaceutical drugs, etc.

Warehouse Management System (WMS)
Warehouse Management System (WMS) records the receipt, storage location, picking, and dispatch of goods from the warehouse.

It optimizes storage space by suggesting the storage location based on FIFO, FEFO, or LIFO rules of picking goods. WMS provides real-time data to the user.

First-In First-Out (FIFO)
First-In First-Out (FIFO) is the principle of picking goods based on the receipt of goods. Those goods which were received first are the ones to be picked for dispatch.

First-Expiry First-Out is (FEFO)
In First-Expiry First-Out (FEFO), the stock with the earliest expiry date (or Best-Before Date) will be picked first. Both FIFO and FEFO help in maintaining stock freshness at the same time avoiding aged stocks sitting in the warehouse.

Last-In First-Out (LIFO)
Last-In First-Out (LIFO) requires the last item received to be picked first for dispatch. An order from a preferred customer is an example.

These picking rules are based on customer requirements. WMS helps with periodic inventory counts that are required to ensure that stocks are maintained accurately.

Enterprise Resource Planning (ERP)
Enterprise Resource Planning (ERP) includes inventory management, principal and customer relationship management, and accounting. Data from WMS is used in ERP to create accurate business forecasts.

ERP is used in purchase ordering and accounting. It, therefore, integrates all these functions and the organization does not have to invest in multiple software to handle them.

Temperature-controlled Warehouses
As consumer demands increase, they are also more aware of the need to get safe, clean, and hygienic products for the money they spend, especially when it comes to food items, pharmaceuticals, etc. Storage of goods under the correct temperature in hygienic conditions extends its shelf life.

Warehousing technology has kept pace with this demand by having temperature-controlled warehouses to meet the different requirements of storage of different types of items.

Depending on the type of goods stored, warehouses can broadly be classified as ambient, chill, or frozen.

Ambient Warehousing
Also called dry warehousing or warehousing at room-temperature, goods are stored in a dry, clean, and well-ventilated storage area at temperatures between 14° C and 24° C (57.2° F and 75.2° F).

Certain types of food items, vegetables, fruits, canned food items, electronics, etc. require storage at ambient temperatures. The temperature may vary slightly according to the type of item being stored.

Chill Warehousing
Chill warehouses are used for the storage of certain types of vegetables, fruits, dairy produce, meat, seafood, etc. Temperatures between 7° C and 14° C (44.6° F and 57.2° F) are maintained in such warehouses.

Frozen Warehousing
Frozen food, meat, seafood, and some types of pharmaceutical drugs require storage under frozen conditions. Frozen food usually needs to be stored at a constant temperature of -18° C (-0.4° F) or less. When the temperature rises above this, it affects the quality of such items resulting in spoilage.

Frozen Warehousing

Types of Warehouse Racking
Pallets are the flat wooden or plastic structures on which boxes or goods are kept in a warehouse. Pallets usually come in a standard size of 48 inches X 40 inches though pallets of other sizes are also available in the market.

Racking is the multi-level metal framework within a warehouse that holds several pallets.

An efficient racking system optimizes warehouse space making retrieval of inventory, product flow (FIFO, FEFO, LIFO, etc.), and accessibility of pallets easier.

MHE’s (Material Handling Equipment) such as forklifts, automatic pallet jacks, etc. should be able to put the pallets and remove them from the racks easily. Some of the different types of warehouse racking are as follows:

Selective Racking
Consisting of upright frames, horizontal beams, braces, supports, and footplates, selective racking is the most commonly found type of racking in warehouses.

Pallets can easily be put-away and removed from these types of racks as every pallet faces the aisle in front that can be used by forklifts or pallet jacks.

Selective racks are the easiest to assemble and disassemble, using bolts. However, in selective racking, warehouse space is not utilized to the optimum because of the space taken up by several aisles.

Selective Racking

Mobile Racks
Mobile racks are selective racks but with a wheeled-base. These racks can be moved along the tracks that are embedded on the warehouse floor.

Ideal for storing goods in bulk that do not require to be moved frequently, mobile racks provide the maximum space utilization within a warehouse.

Cantilever Racks
Cantilever racks consist of several upright single beams, each with arms that extend outward for carrying the load. It is especially convenient for the storage of long and unwieldy goods such as steel pipes, timber, metal trusses, etc. With a minimum number of parts, this type of racking is very easy to set up.

There are several other methods of setting up racks inside a warehouse. Each method is chosen to suit specific products that have specific storage requirements.

Cantilever Racks

Modern warehouses that meet the above customer requirements will always be in demand. Setting up a warehouse requires a lot of planning, keeping growth in mind.

Choosing the right type of warehouse depends on a company’s warehousing requirements, budget, and other such business factors.

Source: Marine Insight

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Port of Manila (Pantalan ng Maynila)

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in

Maritime Law

10 Major Ports In The Philippines

The Republic of the Philippines, located in South East Asia, is an archipelago of over 7,000 islands. Surrounded by prominent shipping routes and water bodies such as the Celebes Sea, South China Sea, and the Philippine Sea, it is a well-connected nation that has a large volume of ocean-going trade passing through it annually.

The Philippines lies close to other Asian nations that have sea trade, such as Japan, Taiwan, Vietnam, and China. It is also close to Oceania, with trade routes to-and-from New Zealand and Australia.

The capital city of the Philippines is Manila, which is also home to the largest port in the country and one of the largest container ports in the world.

A large component of the Philippine economy is tourism, with an annual cruise-liner and ferry traffic of nearly 10 million foreign passengers. Tourism contributes to 10.6% of the national GDP and Manila Port is one of the largest passenger hubs.

As the Philippines is surrounded by water, it has a well-developed and vibrant system of ports that regulate trade and transit through the country.

The public ports are all owned by the Government of the Philippines while the managing authority is the Philippine Port Authority (PPA). The country aims to inter-connect and regulate traffic between the various ports in the coming years, with a large emphasis placed on road and rail connectivity to ports from the surrounding regions.

In this article, know about the top 10 ports of the Philippines that have contributed to the economic development of the nation.

The figures for passenger traffic, container volume, and cargo tonnage are as per the latest records available for each port, ranging from 2012 – 2017.

Major Ports of the Philippines 

1. Port of Manila (Pantalan ng Maynila)

Luzon Island, Manila Bay, West Philippine Sea

UN/Locode: PH MNL

Port of Manila (Pantalan ng Maynila)

The Port of Manila is the largest port in the Philippines that also experiences the largest traffic. Like most ports in the country, it is run and managed by the Philippine Ports Authority (PPA).

The port harbours are divided into 3 main regions: the North Harbor, South Harbor, and the Manila International Container Terminal (MICT). Manila Port is classified as a natural-cum-artificial harbour covering 137.5 hectares.

Operational since the early 1100s, this port served as the primary trading harbour on Manila Bay. During the 12th century when the port was set up, it received significant trade from China, Japan, Malaysia, and India. To date, it is the premier domestic and international port in the Philippines.

The Manila North Harbor in Tondo measures 53 hectares and houses 7 berths. It includes the North Port Passenger Terminal and is the home base of 2GO, a major ferry service in the country.

The Manila South Harbor in Port Area measures 80 hectares and is operated by Asian Terminals Incorporated. It has 5 piers and the Eva Macapagal Super Terminal for passenger services.

The MICT is operated by International Container Terminal Services Inc. (ICTSI) based out of Manila and is one of the world’s busiest container terminals, ranked 38th globally in terms of TEU volume.

The modern port boasts of 22 berths and 12 piers, with average annual traffic of nearly 21,000 vessels. Manila Port has an annual footfall of 72 million passengers, a container volume of over 4.5 million TEUs, and a cargo tonnage of over 75 million tons.

The port is very well connected, with frequent bus services and a direct connection to the NLEX Harbor Link. There are planned projects to implement a rail transit line, an NLEX-CAVITEX expressway, and to link the North and South Harbors for increased efficiency.

2. Port of Cebu (Pantalan sa Sugbo)

Cebu Island, Mactan Channel, Inland Seas

UN/Locode: PH CEB

Port of Cebu (Pantalan sa Sugbo)

The Port of Cebu is the largest domestic port in the Philippines and one of the largest international ports in the country. It is classified as an artificial harbour and is operated and managed by the Cebu Port Authority. It primarily services the surrounding regions of Visayas and Mindanao.

The port is located in the North Reclamation Area and is divided into the domestic and international sectors. The domestic port covers 21 hectares and is further divided into 3 passenger terminals, 2 ferry terminals for the Cebu-Mactan ferries, and around 4 kilometres of berthing space for cargo ships.

The International Port covers 14 hectares and is divided into a bulk handling terminal and 0.5 kilometres of container and cargo ship berthing space.

The statistics for the port area are as follows- the annual footfall is 18 million passengers, the annual container volume is over 820,000 TEUs, and the annual cargo tonnage is nearly 31 million tons (as per 2015). The Cebu Port had 112,000 ship calls in the same year, one of the largest figures for the Philippines.

3. International Port of Batangas

Luzon Island, Batangas Bay, West Philippine Sea

UN/Locode: PH BTG

International Port of Batangas

The Batangas Pier or International Port is located in Barangay Santa Clara and is the 2nd largest port in the Philippines. Covering an area of 150 hectares, it is a seaport that primarily services passenger and cargo ships. The port is managed by the PPA and customs support is provided by the Bureau of Customs (BoC). In 2015, Batangas Pier received 32,777 ship calls, handled 2.3 million tons of cargo tonnage, and had a footfall of 6.3 million passengers.

The Batangas Container Terminal is run by Asian Terminals and handles trade with Philippine industries in South Luzon. It has lower tariffs than the neighbouring Port Manila, attracting foreign investment and encouraging shipping lines to shift their operations to Batangas. It primarily competes with Subic Port as the secondary facility to ease congestion at Port Manila.

The Batangas Passenger Terminal handles tourist cruises, Ro-Ros, and ferries. It consists of 3 terminals which mainly service ships and ferries heading to the neighbouring islands for sightseeing. The main issue with the passenger terminals at Batangas is the irregular schedule, complex system of taxes and fees for tourists, and the constant threat of falling prey to scams that are commonplace within the port.

In 2016, Asian Terminals planned to revamp the port and improve its features. For this, an investment of 3.8 million pesos was announced and the plan focused on improving port connectivity, offering attractive rates and services to incoming ships, and creating a passenger-friendly environment.

There were significant issues raised about the ease of doing business at Batangas, and this was also included in the project. Road congestion was a major issue that affected the port, and work began on connecting the port to the STAR Tollway and SLEx Expressway.

There were also plans to link Batangas Pier to Manila City to hasten development. As of 2020, the work on some projects is yet to start, while others are in the planning and deliberation phase. The linking of the STAR and SLEx systems to Batangas has been completed.

4. Port of Subic

Luzon Island, Subic Bay, West Philippine Sea

UN/Locode: PH SFS

Port of Subic

The Subic Bay Port and Freeport Zone are some of the largest commercial ports in the Philippines. It was the erstwhile base for the United States Navy after which it was converted into a bustling and vibrant harbour at Luzon.

The port is spread over Olongapo, Zambales, Bataan, and Morong. It is managed by the Subic Bay Metropolitan Authority (SBMA) which runs 25 berths. The average anchorage depth is 13.7 meters. As one of the busiest ports in the country, it is equipped to handle a maximum capacity of 600,000 TEUs.

The port has numerous investment projects, one of which is the Hanjin Heavy Industries and Construction shipyard (HHIC). At present, there are 12 piers with 3 container terminals, a grain bulk terminal (Leyte Wharf), a dedicated terminal for fertilizer shipments (Boton Wharf), and the Sattler Pier for general container cargo. A new development project envisions adding 2 berths capable of servicing Panamax and post-Panamax class vessels of 300,000 TEUs capacity.

Following the departure of the US Seventh Fleet, the base was repurposed to serve the commercial interests of the Philippines. It is connected to the Clark Air Force Base run by the government and provides revenue to the surrounding provinces in the form of exports.

5. Port of Cagayan de Oro (Dakbayan sa Cagayan de Oro)

Mindanao Island, Macajalar Bay, Inland Seas

UN/Locode: PH CGY

Port of Cagayan de Oro (Dakbayan sa Cagayan de Oro)

The Cagayan Port is located in Macabalan and is named after the Cagayan de Oro River that flows nearby. It is classified as a medium-sized artificial harbour that has an anchorage depth of 18 meters. Although it is one of the smaller ports in the Philippines, it boasts modern equipment including 4 gantry cranes.

The port was ranked 3rd in terms of first-quarter cargo tonnage behind Port Manila and MICT. It reported figures of 1.34 million tons in the April – July quarter in 2016 and witnessed an increase of 9.7% from the preceding year. The port is run and operated by the PPA.

The port also runs ferry services with the surrounding cities, and passenger influx through Port Cagayan is a major source of revenue. The main port hub includes private facilities run by General Milling and Del Monte Philippines within the premises.

The Cagayan Port includes the Mindanao International Container Port in Tagoloan and connects this harbour with top ports around the globe. The Mindanao facility is valued at $85 million and is used primarily by the PHIVIDEC Industrial Estate.

6. Port of Davao (Sasa Wharf – Daungan ng Dabaw)

Mindanao Island, Davao Gulf, Philippine Sea

UN/Locode: PH DVO

Port of Davao (Sasa Wharf – Daungan ng Dabaw)

The Port of Davao is a natural-cum-artificial harbour in the Philippines run by the PPA and the Davao Port Management Office. Owned by the local government and located in Brgy Sasa, Buhangin District, the port services ships on the Celebes Sea and the Davao Gulf.

It primarily handles shipments of containerized and bulk cargo from the surrounding raw material export industries. It also has local passenger traffic transiting between various islands. It is one of the busiest international container ports in the provinces of Mindanao and Visayas.

The annual statistics of Davao Port in 2013 are as follows: the port received 25,337 ship calls, handled container volume of 544,000 TEUs, handled cargo tonnage of 9.8 million tons and received 1.6 million passengers.

The main port can be approached through the Pakiputan Strait or from Samal Island, while the Pujada Bay acts as an entrance to the Davao Oriental Port.

The harbour is mainly divided into the government and private piers, and pilotage services are provided to incoming vessels. The Davao Port is divided into 2 government facilities and 9 private sections.

The Sasa International Seaport is the main port hub and is run by the government through the ICTSI. It runs an international container terminal and is the busiest and largest section of the port. Another important and busy section of the port is the Stevedorage Services Corporation Pier that services cargo ships of all types. The rest of the port is divided into the Sta.

Ana Pier for domestic vessels (which is the 2nd government-owned subport), the Mati Davao Oriental Wharf for timber and general cargo, the Pacific International Terminal Pier for banana and fruit exports, the Legaspi Oil Company Pier for coconut product exports, the Universal Robina Pier for grain imports, the Davao Union Cement Pier for ore exports, the Piso Point Port for mineral exports, and the Tefasco Port for asphalt and industrial good handling.

7. Port of Iloilo (Pantalan ng Iloilo)

Panay Island, Iloilo Strait, Inland Seas

UN/Locode: PH ILO

Port of Iloilo (Pantalan ng Iloilo)

The Iloilo Port is located on the Panay Gulf within the Visayas province. It is regarded to be the safest port in the country since Guimaras Island shields the harbor from a majority of storms and harsh wave conditions.

It is classified as a natural harbour and has been operational since 1855. Trade increased significantly with the opening of the Suez Canal in 1869 and Europe is a major trading partner with the Iloilo Port.

The Port offers bunkering facilities provided by Pilipinas Shell, Caltex Philipines Inc., Petrophil Corp, and Petroleum Corp. As a major port in Western Visayas, the Commercial Port Complex is built on reclaimed land and is outfitted with modern equipment.

The port is mainly divided into the International Port in Loboc, the Domestic Port in City Proper, the Lapuz Wharf in Lapuz, the Ortiz Wharf in City Proper, and the Guimaras-Iloilo Ferry Terminal (GIFT) in Parola.

There are regular ferry services offered by the Lorenzo Shipping Corp and 2GO. The ferries connect Iloilo with the surrounding regions, while the ro-ro services connect it to Guimaras and Negros (the name of a nearby island).

The Port is ranked 3rd in terms of overall ship calls and has an annual footfall of 2.4 million passengers. The annual cargo tonnage is 0.5 million tons. The port complex includes 400 meters of berthing space and an anchorage depth of 10.5 meters.

8. Port of General Santos (Makar Wharf)

Mindanao Island, Sarangani Bay, Celebes Sea

UN/Locode: PH GES

Port of General Santos (Makar Wharf)

The General Santos Port, known regionally as the Makar Wharf, is a medium-sized harbour facility in the Philippines, run and operated by the PPA. Located in Barangay Labangal, it is the primary international port in the city. The port consists of a 740-meter-long dock that can service 9 ships simultaneously.

With modern cranes and storage facilities, it is an export and import hub for many shipping lines. There are also several ferry services run from this port to the nearby islands and provinces. There are also international ferries, with the main service between the Philippines and Indonesia.

The Makar Wharf also runs a Fish Port nearby, which services reefer containers at the main port. The primary purpose of the Fish Port is as a retailer of high-grade tuna used for sashimi and a consolidation port for international export of fish caught by the local fishing industry. The Fish Port is run out of Barangay Tambler and is one of the most modern facilities in the country, with state-of-the-art facilities to process fish.

9. Port of Zamboanga

Mindanao Island, Basilan Strait, Celebes Sea

UN/Locode: PH ZAM

Port of Zamboanga

The Port of Zamboanga is a major port in the Philippines and is run by the PPA and the Port Management Authority – Zamboanga (PMO-Z or ZFA).

It is an artificial harbour covering 15.6 hectares and operates 19 wharves. The Zamboanga Free Port is also run by the ZFA. The port has received many laurels including the 2nd rank in the “Super-Efficient Ports in Asia” study. The primary export from Zamboanga is sardine which is shipped to the US, Europe, the Middle East, and over Eastern Asia.

To supplement the shipments, the port receives 25 different shipping lines within the 4 sub-ports. There are 19 docks of which 12 are run by private entities.

The size of each dock varies and the largest one can berth 20 vessels. Besides the cargo exports, passengers account for significant revenue to the port with the annual footfall exceeding 5.5 million in recent years.

The port handled 8.4 million tons of cargo tonnage and 2.7 million TEUs of container volume in 2012. It had over 14,000 ship calls in the same year with a majority being domestic ferries and passenger crafts.

10. Port of Lucena

Luzon Island, Tayabas Bay, Inland Seas

UN/Locode: PH LUE

Port of Lucena

The Port of Lucena is a major fishing and commercial port located on the Bay of Tayabas. It is known as the “melting pot” of South Luzon and plays a major role in revenue for the locals.

The port is operated under the PPA and is located in Barangay Talao-Talao. Built as a natural-cum-artificial harbour, it covers roughly 5,000 square meters with most of the area set aside for commercial activities.

The Dalahacian Fishing Port is located a short distance from Port Lucena and is another major fishing hub in Luzon. Both are located close to the ports of Manila and Batangas and handle the overflow of vessels from these larger ports.

While Dalahacian predominantly handles fish exports and local retail, Lucena doubles up as a cargo and fishing port. Both ports are inter-connected but lack a robust transportation system with major metro cities.

The port also has numerous ferries used by the locals to reach the neighbouring islands.

Source: Marine Insight

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