Give synonyms to the following terms.

1. Hazardous

2. Premises

3. Net weight

4. Pick up

5. Payload

6. Oversee

7. Dimensions

8. Seagoing vessel

9. Consignment

10. Transport option

Complete the sentences using the necessary term from the box.

come up to insurance oversee Part Truck Load oversees trade consignment payload handling damage

1. __services are designed to accommodate small to medium sized businesses whose freight may be too large for a traditional container but too small for a full truckload.

2. Depending on the nature of the flight or mission, the __of a vehicle may include cargo, passengers, flight crew, munitions, scientific instruments or experiments, or other equipment.

3. Does this product __your standards?

4. In case of __goods are sent to the agent for the purpose of sale. The ownership of these goods remains with the sender. The agent sells the goods on behalf of the sender, according to his instructions.

5. __ is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment.

6. Unfortunately, __is quite common because of rough handling of cargo, so it is a good idea to insure the consignment.

7. Our managers __ the distribution of cosmetic products to more than 40 countries worldwide.

8. __ trade and logistics issues play a major role in the company’s business.

Find the odd word.

1. Risky hazardous unsafe harmful

2. Oversee watch supervise control

3. Capacity tonnage luggage burden

4. Consignment cargo load weight

5. Complete pick up collect gather

6. Selection option choice election

7. Delivery conveyance carrying handling

8. Journey time lifetime transit time moving time

 

Make up short texts (50-100 words) using the words given.

1.Dimension, consignment, tare weight, gross weight, net weight, insurance rate, transit times, pick-up and delivery, handling damage	2.Transit times, seagoing vessel, consignment, come up to the standards, tare weight, overseas trade, at your premises
3.Part truck load, overseas trade, oversee something, at your premises, recommend, single-car transport, non-hazardous, payload	4.Flexi train, single-car transport, part truck load, transport option, pick-up date, in transit, handle damage, payload, hazardous

Reading 1

a. Discuss the following questions in pairs:

1. What does transportation mean in management?

2. What are the main modes of transportation on local and international markets?

3. What challenges are logistics managers facing now?

4. What are current innovative trends in transportation?

5. What other industries are involved in transportation?

 

Transportation

One major component of logistics process is the movement or flow of goods from point-of-origin to point-of-consumption, and perhaps their return as well. The traffic and transportation activity involves managing the movement of products and includes selecting the method of shipment (air, rail, water, pipeline, truck, and intermodal); choosing the specific path (routing); complying with various local, state, and federal transportation regulations; and being aware of both domestic and international shipping requirements. Transportation is often the single largest cost process. Therefore, it is an important component that must be managed effectively.

The five basic modes of transportation – motor, rail, air, water, and pipeline – provide movement of products. Each mode varies in its economic and service characteristics and has different cost structure based on product- and market-related factors. Logistics executives must be aware of the characteristics of each mode as well as various intermodal combinations, nonoperating third parties, and other options (e.g. piggyback, containers, freight forwarders, IMCs, shippers’ associations, brokers, UPS, parcel post).

Transportation, together with warehousing, adds time and place utility to products. It also affects many decision-making areas of marketing and logistics, including new product development, target market areas served, purchasing/procurement, facility location, and pricing.

In making traffic and transportation decisions, the logistics manager must consider the differences between the domestic and international markets. Mode availability, rates, regulatory restrictions, service levels, and other aspects of the transportation mix may vary significantly from one market to another. It is vital that the differences be known and understood so that an optimal transportation network can be established for each international market.

When logistics executives evaluate international transportation options, their decisions are usually based on the following: cutting transportation/distribution costs, freeing up or reducing staff, focusing on core business, acquiring outside expertise, improving customer service and satisfaction, avoiding capital expenditures, and using providers’ logistics information systems.

Transportation Management System ^[56]

Worldwide, the transport and logistics services industry are in strategic chaos. Diverse factors, ranging from those that arise from the industry itself to other allied market forces, have set in an industry-wide value migration. The key functionality, i.e. transportation of goods, no longer exists in the traditional sense. What only a decade back had seemed a pure asset-play, has now turned into a maze of new and competing institutional and business enterprise models.

The road haulers, the rail operators, the shipping companies, the airlines, the freight forwarders, the warehousing companies, the postal companies, the packaging and distribution companies no more want to see themselves tied down to their traditional business models based on single services. They now want to be seen as a “one-stop shop” offering mode-neutral or multi-modal cargo carriers in the form of an integrated 3PL company or a lead logistics provider (LLP), an integrated express logistics company or, to cap it all, a 4PL consultant to customers. Many of the companies have already moved into these new business areas in a well-orchestrated drive for top line growth.

On a wider horizon, the lines between a delivery company and a manufacturer are starting to blur as well. We are now talking of 4PL and 3PM (third party manufacturing) and have begun to realize both are moving in the same direction. While 3PLs bring in distinct distribution capabilities, the 3PMs bring in manufacturing capabilities, even if they are presently limited in scope, confined to high-tech and short-life cycle products.

Developments in the information and communications technology (ICT) are again playing a major catalytic role in improving the service quality and reducing the costs. Transport Management Solutions (TMS) today demand a dynamic and proactive approach to understanding these changing contours of the industry and market. The next generation TMS now appearing on the market are trying to do beyond providing mere discrete functionalities, and are increasingly aiming to deliver great benefits and attractive returns on investment to the transportation industry.

b. Locate the following words in the text and translate them:

1. point of origin	2. point of consumption
3. routing	4. intermodal transport
5. piggyback	6. distribution company
7. logistics executive	8. freight forwarder
9. road hauler	10. cargo carrier
11. rail operator	12. shipping company

c. Find synonyms to the following words in the dictionary:

path	requirement
important	range
value	distinct
capability	presently
developments	dynamic
proactive	to aim
to benefit	international
domestic	consignment
option	intermodal

d. Match words to make word combinations as found in the text:

logistics	a) model
shipping	b) costs
freight	c) development
parcel	d) requirement
domestic	e) process
product	f) forwarder
to cut	g) post
business	h) market