Service Level Slide

A brief introduction to
the logistics industry

Some fun
facts
Sea transport is the oldest mode of transport for
international trade
Shipping is the most cost-effective means of

transporting cargo today
About 80% of global trade happens via sea 4
out of the top 5 seaports are in China.
In India, about 70% of trade happens via just 2

ports – Nhava Sheva and Mundra
In a year, a container ship travels 75% of the

distance of moon and back.
The relevance of the
container
When you go to an airline The inventory Cogoport sells is a Goods are almost always
website, and book a ticket, the container – simplified to it’s absolute transported inside of
inventory you’re purchasing is basics, we allow users to book containers
essentially a seat containers online
Containers are standardised – so Standardisation made moving

they can be stacked on ships/ trains, goods cheaper, faster, more
and can be put on trailers efficient across land and sea
Shipment modes
& services
Shipment modes &
services
● Ocean Freight – FCL – Full container load
● Ocean Freight – LCL – Less than full
container load
● Air Freight
● Haulage
● Trucking – FTL – Full truck load
● Trucking – LTL – Less than full truck
load
● Trailers
● CFS – Container Freight Stations
● Customs Clearance
● ICD – Inland Container Depot
Service Level
LCL
● Less than full container load
● Container is shared between multiple
companies
● Consolidation across multiple companies is
done by the freight forwarder themselves, or by
a consolidator
● Generally no visibility on goods that may be
stuffed together - onions may be stuffed with
potatoes with video game controllers
● Some customers may have a preference to
only stuff with some other goods – but no way
to verify this
Air Freight
● Goods transported via dedicated freight
aircrafts or via commercial, passenger
aircraft
● Air freight consolidation happens at airports –
dedicated centres around airport complexes
● In normal times, air freight can be 1.5-5x
more expensive than LCL shipments
● More reliable, faster
● Preferred when cost of goods being
transported is higher
Trucking
● You can book FTL – full truck load or
LTL – Less than full truck load
● FTL or LTL may not coincide with FCL
or LCL – trucks are of different sizes
● Trucks are typically used to carry
goods to a CFS (container freight
station) – where they can be loaded
into a container
● May also be used for domestic
trucking – shipping A to B within the
same country
Haulage
● Haulage refers to inland
container movement
● Taking goods from the warehouse
to the port/ ICD/ CFS
● This can be via trailers, railways
or barges (river transport)
Trailers
● Containers moved on land from one
place to another on Trailers
● Trailers are standard lengths, based on
container sizes
● Trailers carry containers from factory/
warehouse to ICD/ CFS
● Trailers also carry containers from ICD/
CFS to port for loading onto ships
CFS –
Container
Freight Station
● Containers are stuffed, unstuffed and
consolidation/ segregation of cargo takes
place here
● Always linked to a customs terminal, and
under the jurisdiction of that customs
commissioner
● Treated as an extension of a sea-port/
ICD/ air cargo terminal
ICD – Inland
Container Depot
● Dry ports for handling and temporary
storage of containerized cargo as well as
empty containers
● Containers are aggregated for onward
movement to or from the ports here
● Most ICDs have a CFS attached to them
where containers are stuffed/ unstuffed
● Most ICDs would also have a customs
section attached to them
Customs Clearance
● Any export or import shipment needs to be
cleared by customs
● Customs clearance methods are goods
specific
● Clients typically have CHAs (customs
house agents) they have worked with
for years on end
● It is a critical part of business, and only
handed to reliable entities
Some important stakeholders
1. Truckers
2. Trailer Company
3. Ocean Carriers/ Shipping Lines
4. Freight Forwarders
5. CHAs – Customs House Agents
6. Banks & financial institutions
7. Exporter
8. Importer
9. People within the Exporter’s organization
10. People within the Importer’s organization
11. Consolidators

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A brief introduction to

the logistics industry

Shipping is the most cost-effective means of

About 80% of global trade happens via sea 4

out of the top 5 seaports are in China.

In India, about 70% of trade happens via just 2

In a year, a container ship travels 75% of the

Containers are standardised – so Standardisation made moving

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