PORT SERVICES: KEY INSTRUMENTS IN MARITIME LOGISTICS

PORT SERVICES  ARE ONE OF THE ESSENTIAL MECHANISM TO ENSURE THE PROPER EXECUTION OF THE DIFFERENT COMMERCIAL ACTIVITIES TAKING PLACE AT EVERY SINGLE PORT AROUND THE GLOBE. SOME OF THE MAIN FUNCTIONS COVERED THAT ARE WORTH MENTIONING INCLUDE  FREIGHT HANDLING, NAUTICAL TECHNICAL ASSISTANCE, SUCH AS TOWAGE OR BERTHING-CASTING OFF, OTHER BASIC SERVICES SUCH AS THOSE RELATED TO PASSENGER TRANSPORT OR SHIP BASED MANAGEMENT SERVICES.

COMPANIES SPECIALIZING IN PROVIDING THESE PORT SERVICES  HAVE SEEN INCREASE IN THEIR TURN OVER FOR PAST FEW YEARS.

THEREFORE, FREIGHT SERVICES (LOADING-UNLOADING, STOWING-UNSTOWING, TRANSPORT BETWEEN SHIP-PORT) ARE THE MOST IN-DEMAND PORT SERVICE AND RESPONSIBLE FOR THE HIGHEST FINANCIAL VOLUME IN 2016, ACCOUNTING FOR 51.5% OF THE TOTAL TURNOVER GENERATED IN THIS SAME YEAR, TOTALING MORE THAN 3.5 BILLION EUROS IN SPAIN. 

INDIA HAS A RICH HISTORY OF TRADE ACROSS SEAS. PORTS CONSTITUTE AN IMPORTANT ECONOMIC ACTIVITY IN COASTAL AREAS. PORTS ARE ALSO IMPORTANT FOR THE SUPPORT OF ECONOMIC ACTIVITIES IN THE HINTERLAND SINCE THEY ACT AS A CRUCIAL CONNECTION BETWEEN SEA AND LAND TRANSPORT

levels of outsourcing

Levels of Outsourcing in Third Party Logistics Services

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Not all third party logistics services are created equal when it comes down to the relationship in the way you as a shipper will outsource to them. So, after you understand what a 3PL is and the types of third party logistics services, the following are the different types of levels of outsourcing you can see:t

• Transactional Outsourcing: Based on transactions, with no long term contracts and no bonding between the 3PL and the outsourcing company.
• Tactical Outsourcing: Outsourcing on a long term basis with negotiated contacts and integrated IT systems to facilitate free information flow and create supply chain visibility.
• Strategic Outsourcing: Based on long-term relationships with successful outcomes, 3PL companies become partners in supply chain management and establish transactional transparency.

hird party logistics services are created equal when it comes down to the relationship in the way you as a shipper will outsource to them. So, after you understand what a 3PL is and the types of third party logistics services, the following are the different types of levels of outsourcing you can see:

 FINANCIAL BASED THIRD PARTY LOGISTICS SERVICES:

PROVIDE FREIGHT PAYMENT AND AUDITING,COST ACCOUNTING AND CONTROL,TOOLS FOR MONITORING BOOKING, TRACKING,TRACING AND MANAGING INVENTORY.

INFORMATION-BASED FIRMS THIRD PARTY LOGISTICS SERVICES:

SIGNIFICANT GROWTH AND DEVELOPMENT IN THIS CATEGORY OF INTERNET-BASED, BUSINESS-TO-BUSINESS, ELECTRONIC MARKETS FOR TRANSPORTATION AND LOGISTICS SERVICES.

SHIPPER/MANAGEMENT BASED THIRD PARTY LOGISTICS SERVICES:

• FOCUSED ON THE MANAGEMENT OF THE SHIPPING PROCESS FROM BEGINNING TO END.

• PROVIDES TECHNOLOGY, SUCH AS A TRANSPORTATION MANAGEMENT SYSTEM, AND INTEGRATED FREIGHT MANAGEMENT SERVICES TO ELIMINATE HEAVY PROCESS AND CUMBERSOME FEATURES SUCH AS CLAIMS AND ACCOUNTING (FREIGHT PAYMENTS) .

• PROVIDE MANAGEMENT OF CARRIER RELATIONS FOR ONGOING RATE MAINTENANCE AND NEGOTIATION.
• GIVES INFORMATION SUCH AS FREIGHT DATA AND MATRIX REPORTS FOR BETTER VISIBILITY AND CONTROL ON FUTURE LOGISTICS.

FORWARDER BASED THIRD PARTY LOGISTICS SERVICES:

A THIRD PARTY LOGISTICS PROVIDER, OR 3PLs PROVIDER, IS AN OUTSOURCED COMPANY THAT MANAGES A PARTICULAR PART, OR ALL PARTS OF YOUR LOGISTICS AND TRANSPORTATION OPERATIONS AND EXECUTE TRANSPORTATION, FREIGHT, WAREHOUSING AND OTHER ACTIVITIES

FREIGHT FORWARDER IS EXPLAINED AS UNDER:

• Very independent middlemen with forwarder roles.
• Non-asset or sometimes can be assets owner that provide a wide range of logistics services.

• INTEGRAL LOGISTICS SERVICES PVT.LTD. (ILS) is a freight forwarding company.

You Know the Definition of Third Party Logistics, 

Now We will discuss What are the Different Types 

of Third Party Logistics Services:

The following are the characteristics of the different types of third party logistics services:

Transportation Based Third Party Logistics Services

• Services extend beyond transportation to offer a comprehensive set of logistics offerings.
• Leveraged 3PLs use assets of other firms.
• Non-leveraged 3PLs use assets belonging solely to parent firm.

Warehouse/Distribution based Third Party Logistics Services:

Rather than pay the increasing costs of warehousing and distribution operations, many companies prefer to invest the capital into additional locations, or reserve it to reduce the corporate debt. Third Party warehousing and Distribution makes that possible.

For many Retail businesses, third party warehousing and distribution is the only viable option. The costs associated with owning and managing a warehouse, from space and infrastructure to labor expenses, it simply not feasible.

DEAR READER, I WILL START NOW  THE NEXT CHAPTER :  WHAT IS THIRD PARTY LOGISTICS

WHAT ARE THE THIRD PARTY LOGISTICS SERVICES AND THE DEFINITION OF 3PLs:

THIRD PARTY LOGISTICS PROVIDERS ARE BUSINESSES THAT PROVIDE ONE OR MANY  OF THE FOLLOWING THIRD PARTY LOGISTICS SERVICES:

• Transportation or Freight Management (including technology,freight accounting, services around claims, Public/Contract warehousing.

• Distribution Management

• Freight Consolidation

Now for a more academic definition.  the  define third party logistics services and 3PLs as:

Outsourcing all or much of a company's Logistics operations to a specialized company. The term "3PL" was first used in the early 1970s to identify inter modal marketing companies (IMCs) in transportation contracts, At that time contract for transportation had featured only two parties, the shipper and the carrier. When IMCs entered in the picture as intermediaries they accepted shipment from the shipper and tendered them to the rail carriers-they became the third party to the contract, the 3PL. Definition has broadened to the point where these days every company that offers some kind of Logistics Services for hire calls itself 3PL.

Preferably, these services are integrated, or “bundled,” together by the provider. Services they provide are transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. In 2008 legislation passed declaring that the legal definition of a 3PL is “A person who solely receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.”