Logistics

INTL704-Mod-12-ActivityLoadPlanningandConsolidation4.docx

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INTL 704 CENTENNIAL COLLEGE Global Logistics

Course Code:	INTL 704
Course Name:	Global Logistics

Module 12: Activity: Load Planning and Consolidation

In this activity you determine how many and what size containers are needed with cargo that is not uniform for the best consolidation.

Consolidation is the so-called “bread and butter” of freight forwarders’ revenue.

Essentially, the forwarder will combine freight from 2 or more of his customers, load the cargo into a container, and ship to their office or agent at destination. The destination agent will de-consolidate the freight and move the goods to the respective consignees.

You have to determine what size and how many containers you need. In consolidations, the cargo is not uniform. One customer might have loose cartons, while another might have all pallets. This is when stowage becomes tricky. There is no one magical equation to solve this. You should try to visualize the freight and how it might piece together. Making a drawing always helps.

Estimating container size is the best way to start and it will “point you in the right direction.” When you have estimated what the container size requirements are, you then determine how all the cargo will be loaded, and if it indeed fits your estimate.

There are different documents required when “putting together a consol.” You will require a master bill of lading for the container move, accompanied by a cargo manifest outlining the contents of the container, as well as forwarders’ bills of lading, or NVOCC bills of lading for each shipment loaded into the container.

Consolidation Question

In this question, you have 2 customers who each have cargo to ship to Tianjin, China. Different shippers (consignors), different importers (consignees). All details are given below.

As the consolidator, your task is to:

1. Pick up the goods from the sellers’ warehouses and load the cargo into your consolidated container(s) at your Mississauga, ON, CA, warehouse. You need to determine the number of containers you need but 40’ standard containers are more available, less expensive, and should be used unless one TEU with the rest FEU’s makes more sense.

2. Complete all required documentation for this “consol box”. You may make up a name for your agent in China, as well as any inland carriers or ocean carriers (Vessel, Voyage). This exercise is adapted from exercise 12.2 from your CIFFA exercise book and will guide you but you must change all load planning and documentation to fit the weights, dimensions, and locations in this problem.

You are picking up the following goods from:

Shipper #1:	Consignee #1:
Ontario Maple Supplies Ltd.	Joe Badali Restaurants
147 Queen St. Brampton, ON,	134 North Street
M5R 2S4	Beijing, China

Shipment details:

· 1,350 cartons of Maple Syrup

· The dimensions of each carton are 20 in x 10 in x 11 in

· The weight of each carton is 20 kg

· Terms of trade: CPT Tianjin Container Terminal, China Incoterms® 2020.

Shipper #2: Consignee #2:

Canada Goose Parka Inc. Zapata Importers S.A.

468 North Drive, Mississauga, ON Port of Tianjin, China

L3T 5S1

Shipment details:

· 900 cartons of winter parkas

· The dimensions of each carton are 24 in x 18 in x 16 in

· The weight of each carton is 16 lb

· Terms of trade: CIP Tianjin Container Terminal; c/o CIFFA Forwarder, Incoterms® 2020.

Additional information: Neither shipment is palletized. Liquids and heavy cargo on the bottom, weight should be balanced side to side and end to end.

The inside dimensions of the FEU (40’ containers) = 473” long x 91” wide x 93” high and the net weight is 25,000 kg

The inside dimensions of the TEU (20’ containers) = 233” long x 91” wide x 93” high and the net weight is 20,000 kg

Carrier: STANLEY STEAMSHIP LINE BILL of LADING Multimodal Transport or Port to Port Shipment
Shipper:	Carrier References:	B/L-No.:
	Export References:
CONSIGNEE: (Non-Negotiable Unless Consigned to Order)	Forwarding Agent:
	Consignee’s Reference:
Notify Address (Carrier not responsible for failure to notify: see clause 20(1) hereof) :	Place of Receipt:
Pre-Carriage by:	Place of Receipt by Pre-Carrier:	Place of Delivery:
Ocean Vessel:	Port of Loading:
Port of Discharge:	Place of Delivery by On-Carrier:
Container Nos., Seal Nos., Marks and Nos.	Number and Kind of Packages; Description of Goods	Gross Weight (kg)	Measurement (cbm)
Above Particulars as declared by Shipper. Without responsibility or warranty as to correctness by carrier (see clause 11(1) and 11(2)
Total No. of Containers/Packages received by the Carrier:	Shipper’s declared value (see clause 7(1) and 7(2) hereof):	Received by the carrier from the shipper in apparent good order and condition (unless otherwise noted herein) the total number or quantity of containers or other packages or units indicated in the box opposite entitled. Total number of containers/packages received by the carrier for carriage subject to all the terms and conditions hereof (including the terms and conditions on the reverse hereof and the terms and conditions of the carrier’s applicable tariff) from the place of receipt of the port of loading, whichever is applicable, to the port of discharge or the place of delivery, whichever is applicable. One original bill of lading, duly endorsed, must be surrendered by the merchant to the carrier in exchange for the goods or a delivery order. In accepting the bill of lading the merchant expressly accepts and agrees to all its terms and conditions whether printed, stamped or written or otherwise incorporated, notwithstanding the non-signing of the bill of lading by the merchant. In witness whereof the number of original bills of lading stated below all of this tenor and date has been signed, one of which being accomplished the others to stand void.
Movement	Currency
Charge	Rate	Basis	WT/MEA/VAL	Payment	Amount

		Place and Date of Issue:
		Freight Payable at:	Number of original Bs/l:
Total Freight Prepaid	Total Freight Collect	Total Freight	Signature by Carrier or Agent
Carrier: CONSOLS R US NVOCC BILL of LADING Multimodal Transport or Port to Port Shipment
Shipper:	Carrier References:	B/L-No.:
	Export References:
CONSIGNEE: (Non-Negotiable Unless Consigned to Order)	Forwarding Agent:
	Consignee’s Reference:
Notify Address (Carrier not responsible for failure to notify: see clause 20(1) hereof) :	Place of Receipt:
Pre-Carriage by:	Place of Receipt by Pre-Carrier:	Place of Delivery:
Ocean Vessel:	Port of Loading:
Port of Discharge:	Place of Delivery by On-Carrier:
Container Nos., Seal Nos., Marks and Nos.	Number and Kind of Packages; Description of Goods	Gross Weight (kg)	Measurement (cbm)
Above Particulars as declared by Shipper. Without responsibility or warranty as to correctness by carrier (see clause 11(1) and 11(2)
Total No. of Containers/Packages received by the Carrier:	Shipper’s declared value (see clause 7(1) and 7(2) hereof):	Received by the carrier from the shipper in apparent good order and condition (unless otherwise noted herein) the total number or quantity of containers or other packages or units indicated in the box opposite entitled. Total number of containers/packages received by the carrier for carriage subject to all the terms and conditions hereof (including the terms and conditions on the reverse hereof and the terms and conditions of the carrier’s applicable tariff) from the place of receipt of the port of loading, whichever is applicable, to the port of discharge or the place of delivery, whichever is applicable. One original bill of lading, duly endorsed, must be surrendered by the merchant to the carrier in exchange for the goods or a delivery order. In accepting the bill of lading the merchant expressly accepts and agrees to all its terms and conditions whether printed, stamped or written or otherwise incorporated, notwithstanding the non-signing of the bill of lading by the merchant. In witness whereof the number of original bills of lading stated below all of this tenor and date has been signed, one of which being accomplished the others to stand void.
Movement	Currency
Charge	Rate	Basis	WT/MEA/VAL	Payment	Amount

		Place and Date of Issue:
		Freight Payable at:	Number of original Bs/l:
Total Freight Prepaid	Total Freight Collect	Total Freight	Signature by Carrier or Agent
Carrier: CONSOLS R US NVOCC BILL of LADING Multimodal Transport or Port to Port Shipment
Shipper:	Carrier References:	B/L-No.:
	Export References:
CONSIGNEE: (Non-Negotiable Unless Consigned to Order)	Forwarding Agent:
	Consignee’s Reference:
Notify Address (Carrier not responsible for failure to notify: see clause 20(1) hereof) :	Place of Receipt:
Pre-Carriage by:	Place of Receipt by Pre-Carrier:	Place of Delivery:
Ocean Vessel:	Port of Loading:
Port of Discharge:	Place of Delivery by On-Carrier:
Container Nos., Seal Nos., Marks and Nos.	Number and Kind of Packages; Description of Goods	Gross Weight (kg)	Measurement (cbm)
Above Particulars as declared by Shipper. Without responsibility or warranty as to correctness by carrier (see clause 11(1) and 11(2)
Total No. of Containers/Packages received by the Carrier:	Shipper’s declared value (see clause 7(1) and 7(2) hereof):	Received by the carrier from the shipper in apparent good order and condition (unless otherwise noted herein) the total number or quantity of containers or other packages or units indicated in the box opposite entitled. Total number of containers/packages received by the carrier for carriage subject to all the terms and conditions hereof (including the terms and conditions on the reverse hereof and the terms and conditions of the carrier’s applicable tariff) from the place of receipt of the port of loading, whichever is applicable, to the port of discharge or the place of delivery, whichever is applicable. One original bill of lading, duly endorsed, must be surrendered by the merchant to the carrier in exchange for the goods or a delivery order. In accepting the bill of lading the merchant expressly accepts and agrees to all its terms and conditions whether printed, stamped or written or otherwise incorporated, notwithstanding the non-signing of the bill of lading by the merchant. In witness whereof the number of original bills of lading stated below all of this tenor and date has been signed, one of which being accomplished the others to stand void.
Movement	Currency

Charge	Rate	Basis	WT/MEA/VAL	Payment	Amount

		Place and Date of Issue:
		Freight Payable at:	Number of original Bs/l:
Total Freight Prepaid	Total Freight Collect	Total Freight	Signature by Carrier or Agent

CONTAINER RIDER FOR:
DATE:		VESSEL/VOY.:			TYPE:
SHIPPER	CONSIGNEE		PIECES	VOLUME	WEIGHT	COMMODITY
TOTALS			PIECES:	VOLUME:	WEIGHT:

Logistics

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