Water
• Most supply chains use shipping to cross the oceans at some point, and over 90% of world trade is moved by sea.
• There are basically three types of water transport – rivers and canals (usually called inland waterways), coastal shipping (moving materials from one port to another along the coast) and ocean transport (across the major seas).
• Most shipping is done by large vessels travelling through the world’s shipping lanes.
• Ships get considerable economies of scale, so many aim at moving big loads at low unit costs.
There are many different types of vessel for various cargoes:
• General cargo ships are the standard design, with large holds that carry any type of cargo. Most of these are loaded by crane, although some have side doors that allow vehicles to drive on and off.
• Bulk carriers carry large quantities of cheap bulk materials in large holds, such as grain or ores.
• Tankers carry any liquid, but by far the biggest movements are oil. Because of the economies of scale, these ships are built as big as possible.
• Container ships are specially designed to carry standard containers and their capacity is commonly rated in TEUs (20-foot equivalent units) or FEUs (40- foot equivalent units). A typical container ship carries around 5000 of these, with larger ones carrying 10,000.
• Ferries are usually RO-RO (roll-on roll-off) vessels that carry road vehicles.
• Barges, which are towed behind ocean-going tugs. The advantage is cheaper to run than normal ships.
• Combination ships. In addition to the specialised ships, many other designs are used, often to allow for dominant patterns of trade.
• The main drawback with water transport is, of course, its inflexibility in being limited to appropriate ports.
• Journeys from suppliers and to customers inevitably need a change of mode, even if they are close to ports.
• The other problem with shipping is that it is relatively slow, and needs time to consolidate loads and transfer them at ports.
• One interesting aspect of shipping is the continued existence of conference services.
• This means that all carriers in a given area agree to charge a common price and regulate the frequency of their service.
Water• Most supply chains use shipping to cross the oceans at some point, and over 90% of world trade is moved by sea.• There are basically three types of water transport – rivers and canals (usually called inland waterways), coastal shipping (moving materials from one port to another along the coast) and ocean transport (across the major seas).• Most shipping is done by large vessels travelling through the world’s shipping lanes.• Ships get considerable economies of scale, so many aim at moving big loads at low unit costs.There are many different types of vessel for various cargoes:• General cargo ships are the standard design, with large holds that carry any type of cargo. Most of these are loaded by crane, although some have side doors that allow vehicles to drive on and off.• Bulk carriers carry large quantities of cheap bulk materials in large holds, such as grain or ores.• Tankers carry any liquid, but by far the biggest movements are oil. Because of the economies of scale, these ships are built as big as possible.• Container ships are specially designed to carry standard containers and their capacity is commonly rated in TEUs (20-foot equivalent units) or FEUs (40- foot equivalent units). A typical container ship carries around 5000 of these, with larger ones carrying 10,000.• Ferries are usually RO-RO (roll-on roll-off) vessels that carry road vehicles. • Barges, which are towed behind ocean-going tugs. The advantage is cheaper to run than normal ships.• Combination ships. In addition to the specialised ships, many other designs are used, often to allow for dominant patterns of trade.• The main drawback with water transport is, of course, its inflexibility in being limited to appropriate ports.• Journeys from suppliers and to customers inevitably need a change of mode, even if they are close to ports.• The other problem with shipping is that it is relatively slow, and needs time to consolidate loads and transfer them at ports.• One interesting aspect of shipping is the continued existence of conference services.• This means that all carriers in a given area agree to charge a common price and regulate the frequency of their service.
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