Chapter 1 – International Logistics

grey and yellow metal container van during daytime

Logistics stem from the Greek word “Logistikon” or “the science of computation” and the French word “Logis” which refers to the movement and billeting of troops. Obviously, the modern concept of logistics owes something to both sources (Smykay et al, 1961). The words ‘distribution’ and ‘supply chain’ are more synonymously used for the term ‘logistics’. Distribution refers to physical distribution; identified by marketing philosopher Philip Kotler as one among the p’s of marketing (other p’s are product, pricing, promotion; in the recent years yet another p – probe as 5th p, referring to research & development abbreviated as R&D too is studied).

The first and foremost function in international logistics is the container stuffing and it is largely influenced by the following environmental factors too:

– Macro-environmental factors such as GDP, foreign policy, port performance, port draft, cabotage norms, stuffing time regulations, customs’ mandatory requirements, etc;

– Micro-environmental factors such as skill of the stuffing workers, place of stuffing, availability of stuffing time, nature of the goods, buyer’s specification, etc;

– Macro-economic factors (such as wastage on prolonged port dwell time, container wharfage charges, consignment wharfage charges, inland/rail transportation cost, etc);

– Micro-economic factors such as stuffing labour cost, CFS/ICD cost, increase in cost due to uneconomical stuffing practice, container space wastage due to non-optimal or suboptimal usage of container space, increase in cost due to extended stuffing time, packing and packaging, etc.

The above environmental factors too play a significant role in the container stuffing process apart from the geometric parameters. Hence container stuffing in international logistics is influenced by multiple factors.

The featured image was randomly selected. It is an unlikely coincidence if it is related to the post.

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