CONTENT

TRANSPORTATION MODE………………………………………………………….1

SEA TRANSPORTATION

WHY CHOOSE SEA TRANSPORTATION

LOGISTICS ACTIVITIES (FLOW)………………………………………………….. 4

EXPLANATION OF THE ACTIVITIES

RELATED DOCUMENTS……………………………………………………………. 8

DOCUMENTS RELATED TO GOODS

DOCUMENTS RELATED TO SHIPMENT

DOCUMENTS RELATED TO PAYMENT

REFERENCES………………………………………………………………………... 11

Page 1

TRANSPORTATION MODE

SEA TRANSPORTATION

For the arrange a shipment of 2000

pallets (1m x 1m x 1m) from Tanjung

Pelepas Johor Bharu to Amsterdam,

Matsushita Electronics (M) BHD will use

the water transportation or called as sea

port for export the pallets. Sea freight

means shipping services through

shipping industries. The cargo or the

goods that are shipping will be

transported from one country to the other

by sea. Sea freight takes much longer

time than air freight.

Water transport is the process of transport that a watercraft, such as a barge, boat, ship

or sailboat, makes over a body of water, such as a sea, ocean, lake, canal or river. If a

boat or other vessel can successfully pass through a waterway it is known as a

navigable waterway. The need for buoyancy unites watercraft, and makes the hull a

dominant aspect of its construction, maintenance and appearance. When a boat is

floating on the water the hull of the boat is pushing aside water where the hull now is,

this is known as displacement.

The characteristic of sea transportation is providing a relatively low cost transport

solution. Besides that, Lower cost rather than airfreight or inland transport and using

container will be less costing. Lastly, the characteristics of sea transportation is Low

rates but long transit times and Low accessibility but high capability

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WHY CHOOSE SEA TRANSPORTATION?

TRANSPORTATION SELECTION DECISION

Matsushita Electronics (M) BHD choose transportation for the shipment activities is

besides the cost, time, type of transportation that the characteristics and the advantages

of the mode transport. Effective logistics management has been recognized as a key

opportunity to improve both the profitability and competitive performance of company.

Logistics is concern with demand satisfaction, whereas marketing seeks to create

demand. The Transportation and Total Logistics relationship is the main point for our

company do the decision for choose sea transportation in this shipment. Firms need to

recognize that the lowest cost carrier does not necessarily guarantee that this carrier

will result in the lowest landed cost. Therefore, firms need to keep the big picture in

mind when attempting to select a carrier. Because of choose sea transportation Suitable

for bulk cargo, Easy to bring large scale of cargo, Maintain delivery, Maintain quality of

the cargo and Reduce of internal thief.

ADVANTAGES OF SEA TRANSPORATION

It is a relatively economical mode of transport for bulky and heavy goods.

It is a safe mode of transport with respect to occurrence of accidents.

The cost of maintaining and constructing routes is very low most of them are naturally made.

It promotes international trade.

Ideal for transporting heavy and bulky goods

Suitable for products with long lead times

Cheap for large volumes

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LOGISTICS ACTIVITIES (FLOW) INVOLVED IN THE MOVEMENT OF 2000 PALLETS.

Page 4

PRODUCTION COMPANY PRODUCE

THE PALLETS

STORAGE WAREHOUSE

FORWARDING AGENT

TRANSPORTA-TION

CUSTOM CLEARANCE

STORAGE / PORT

WAREHOUSE

SHIPPING CUSTOM

TRANSPORTA-TION

AMSTERDAM (BUYER)

LOGISTICS ACTIVITIES INVOLVED IN THE MOVEMENT OF 2000 PALLETS

PRODUCTION COMPANY

Production Company in Malaysia has the order

from Amsterdam of 2000 pallets (1m x 1m x 1m).

The company will produce the pallets with follow

the customer want. Follow the size, shape, weight,

color, and design.

STORAGE WAREHOUSE

After Production Company finished the order 2000

pallets, the product will storage in warehouse. A

warehouse is a commercial building for storage of

goods. Warehouses are used by manufacturers,

importers, exporters, wholesalers, transport

businesses, customs, etc. They are usually large

plain buildings in industrial areas of cities and

towns and villages. They usually have loading

docks to load and unload goods from trucks.

Storage in the warehouse before goes to the

shipping process.

FORWARDING AGENT

Company will use the forwarding agent to clearance the all documents with custom.

Freight forwarding is a service used by companies that deal in international or multi-

national import and export. While the freight forwarder doesn't actually move the freight

itself, it acts as an intermediary between the client and various transportation services.

A freight forwarding service handles the considerable logistics of this task for the client,

relieving what would otherwise be a formidable burden.

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TRANSPORTATION

Transportation in this area will use the road

transportation for next process after forwarding

agent complete the documents then the pallets will

carry to the port for checking by the customs before

go through to the shipping area.

STORAGE IN PORT WAREHOUSE

After finish the checking and complete the all

documents at the Customs clear, the pallets will

keep storage in the warehouse at the port. This

storage is for loading area before the pallets will go

in to the vessel for the shipping process. Storage in

this warehouse is not taking a long time just less

than 24hours before shipping. They usually have

loading docks to load and unload goods from trucks.

Storage in the warehouse before goes to the

shipping process.

CUSTOM CLEARANCE (MALAYSIA)

In Malaysia the Custom goods declaration forms are the prime source documents for

trade statistics generated by the importer and exporters. In this case, the forwarding

agent will give and complete the document and customs form about the product it’s the

2000 pallets. In detail including providing true information regarding the number,

description of packages/ crates, value weight, quantity and type of goods. This applies

for goods meant for exports as well where the final destination of the goods is notified.

Completed custom forms will need to be submitted to customs offices at the place

where the Pallets are to be exported.

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SHIPPING

After finish all the process with customs

area, the pallets will go to the vessel and

take a process. The products will save

safely in the vessel. Besides that, company

must know what types of sea freight vessel.

The intermodal aspect characteristic of the

container is useful to shippers in terms of

speed, efficiency, security and low cost.

There are two types of containerships, first

Fully Cellular containerships and Ro-ro

ships. The pallets will save in the bulk

vessel and start the shipping to Amsterdam.

CUSTOM CLEARANCE (AMSTERDAM)

In this area is same goes like in custom Malaysia. Their will check the products before

go in the country or the buyer. A customs duty is a tariff or tax on the importation

(usually) or exportation (unusually) of goods. In the custom area, as usually custom do

the work. All document about the goods that’s forwarding agent carries custom must

check and details about the documents and check the pallets.

BUYER (AMSTERDAM)

Buyer will receive the products of 2000 pallets (1m x 1m x 1m) like the order before.

The buyer (company) will keep storage the pallets in their warehouse for their usage.

The all documents the buyer company will get and do the payment to Production

Company.

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RELATED DOCUMENTS

All goods meant for import and export either it is under import/export duty or otherwise

must be declared in writing in the respective forms it is customs form No 1 for imported

goods and customs form No 2 for exported goods. The other documents are Bill of

lading, Shipping Bill, Letter of credit, Airway Bill, and Bill of exchange. Declaration forms

must be filled in detail including providing true information regarding the number,

description of packages/crates, value, weight, quantity and type of goods. The origin of

the goods will also need to be informed.

Documents related to goods

Export invoice (Custom form 2)

Export invoice is a seller’s bill for

the pallets and contains information

about pallets such as quantity, total

value, number of packages, marks

on packing, port of destination,

name of ship, bill of lading number,

terms of delivery and payments. A

document used in foreign trade. It is

used as a customs declaration

provided by the person or

corporation that is exporting an item

across international borders. These

invoices are often used by

governments to determine the true

value of goods when assessing

customs duties.

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Documents related to shipment

Shipping Bill

The shipping bill is the main document on the basis of which customs office

grants permission for the export. The shipping bill contains particulars of the

goods being exported, the name of the vessel, the port at which goods are to be

discharged, country of final destination, exporter's name and address and more

information about the goods

Bill of lading

Bill of lading is a document wherein

a shipping company gives its

official receipt of the goods put on

board its vessel and at the same

time gives an undertaking to carry

them to the port of destination. It is

also a document of title to the

goods and as such is freely

transferable by the endorsement

and delivery.

Airway Bill

Like a bill of lading, an airway bill is a document wherein an airline company

gives its official receipt of the goods on board its aircraft and at the same time

gives an undertaking to carry them to the port of destination. It is also a

document of title to the goods and as such is freely transferable by the

endorsement and delivery.

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Documents related to payment

Letter of credit

A letter of credit is a guarantee issued by the importer's bank that it will honor up

to a certain amount the payment of export bills to the bank of the exporter. Letter

of credit is the most appropriate and secure method of payment adopted to settle

international transactions

Bill of exchange

It is a written instrument whereby the person issuing the instrument directs the

other party to pay a specified amount to a certain person or the bearer of the

instrument. In the context of an export-import transaction, bill of exchange is

drawn by exporter on the importer asking the latter to pay a certain amount to a

certain person or the bearer of the bill of exchange. The documents giving title to

the export consignment are passed on to the importer only when the importer

accepts the order contained in the bill of exchange.

Page 10

REFERENCES

1. OFFICIAL CUSTOMS MALAYSIA WEBSITE http://www.customs.gov.my/

2. WEBSITE: http://www.alibaba.com/countrysearch/MY/forwarding-

agent.html

3. GOVERNMENT OFFICIAL WEBSITE

http://www.mof.gov.bn/English/RCE/CustomsMatters/customservices/Page

s/ApprovalPermit.aspx

4. WEBSITE; http://spblogger.com/tag/royal-malaysian-customs-department/

5. WEBSITE:http://corporatelawreporter.com/seeks-amend-notification-532011customs-dated-172011-indiamalaysia-ceca-10554.html

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