Wednesday, 16 October 2013

What are the Sea Transport System and the Concept of Parcel Size Distribution?

Thanks to the increasing economic growth there is a higher international trade market and this requires a sea transport system to operate. Seaborne trade is therefore linked to economic growth. Emerging countries have a much greater need for raw materials and usually have a high output level too. Much of the growth in the bulk trade therefore has come from countries in Southeast Asia.

Importing and exporting relies heavily on the sea transport system. The emerging markets are able to afford the imports because they can offset the costs by exporting their own goods. They are able to supply low cost labour so that goods can be produced for the export market. With importing and exporting playing such an important role in the economic growth of these new emerging markets the sea transport system has increased and it continues to grow.

The concept of parcel size distribution, PSD, is useful. The parcel in the concept is the individual consignment of the cargo that needs to be shipped.  PSD is used to determine the transport of the bulk cargoes and the general cargo being shipped. It answers the question ‘which cargoes go in which ships?’  It is used to classify what cargo is able to be shipped as general cargo and determine the type of carriers that will be used for the transportation. It is also used to determine the bulk cargo loads that will need to go on larger ships. So consignments of watches are smaller and therefore they can be stored in containers and shipped on liners. Bulk cargoes can sometimes fill entire ships and therefore the liners wouldn't be appropriate.

1 comment:

  1. Sea route shipping is critical to so many international supply chains. It's great that there is an online guide to show people how varied and complex international dry bulk shipping can be!