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  • 2. Handling financial risk in international trade (answers to frequently asked questions)

  • 3.Role of transportation in the supply chain

  • 4. What Does a Logistician Do

  • 5. Some instructions which US customs brokers handling international trade, provide on their website

  • 6. A list of documents used in foreign trade

  • Библиографический список

  • Английский. Государственный университет


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    НазваниеГосударственный университет
    АнкорАнглийский
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    Имя файлаEnglish_for_Transp_Logistics.docx
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    UNIT 3. TEXTS FOR READING AND TRANSLATION
    1.Questions and answers of the export manager for Jonston Cosmetics.
    How do you successfully manage shipping logistics at Jonston Cosmetics?

    I think it’s most important to work with good freight forwarders. So before we actually choose a freight forwarder, we check whether their service level comes up to our standards.

    What exactly does that mean?

    Well, it means that we only want to work with forwarders who meet certain requirements. One thing that’s really important is reliability. We need to be 100 per cent sure that our consignments are delivered to the customer at the right time. We also expect a high level of communication and co-operation between the forwarder and ourselves. And our forwarders must be able to provide flexible transport solutions at short notice.

    And what about transport costs?

    The price is also important obviously, but as I said, there are other things to consider such as quality of services, handling of paper work and advice. We usually ask for four quotations for each shipment.

    What about all the documentation required in overseas trade?

    We have a team of experience logistics people who discuss the best possible freight options with the customer and handle all paperwork. Documentation is really very important, especially if things go wrong. So we always make sure we have copies and duplicates of every document in case something is lost.

    Consignments can easily be damaged in transit. Are your customers aware of that?

    Yes, we always advise our customers on the risk and offer them most suitable insurance for their consignments. Unfortunately, handling damage is quite common so it’s always a good idea to insure a consignment. And insurance is less expensive that most people would expect; it usually costs between one and two per cent of the consignment’s value.
    2. Handling financial risk in international trade

    (answers to frequently asked questions)
    What are the main financial risks for companies doing business overseas?

    The first risk area is the customer’s credit rating and status. There is always the danger that the customer does not pay for the goods you have supplied. But there are quite a lot of other country – related trade risks which need to be considered.

    Could you give some examples?

    Well, this could be anything that delays or stops trade or payment e.g. some unexpected economic measures, political unrest, import bans, or breakdown of banking systems in the country you are doing business with.

    What can traders do to minimize financial risks?

    Before doing business abroad, it is essential to investigate both customer and target country carefully. Check whether the potential customer is solvent, then study your target country’s accounting and credit practices and learn something about import and export procedures.

    What payment methods would you recommend for exporting goods?

    That’s a difficult question to answer. The exporter should always try to minimize financial risk by choosing a secure payment method. On the other hand, you have to see what payment facilities your competitors are offering and offer something similar – even if that’s not what you really want.
    Vocabulary notes

    solvent -платежеспособный

    target country - страна-объект
    3.Role of transportation in the supply chain
    Before reading the text check the meaning of the Key Words in the dictionary.

    Nouns: costs, opportunities, party, mode, level, responsiveness, network

    Verbs: to transport, to amount, to lower, to exchange, to respond to, to invest, to create, to take place, to suit, to evaluate, to consider, to decrease, to increase, to communicate, to allow, to own
    The term “transportation” refers to the movement of product from one point to another as it moves from the beginning of a supply chain to the customer. In the United States, for example, freight transportation costs amount to about 6% of the GDP (Gross Domestic Product).

    Any supply chain’s success is closely linked to the appropriate use of transportation. Logistics companies effectively use responsive transportation systems to lower overall costs. They employ “Crossdocking” – a process, in which product is exchanged between trucks so that each truck going to a retail store has products from different suppliers. Today, the growth in shipments to and from China is creating both problems and opportunities for logistics companies. Many large corporations have already invested in buying offices in China and India.

    There are two key players in any transportation that takes place within a supply chain. The shipper is that party that requires the movement of the product between the point of origin and the point of consumption. The carrier is the party that moves or transports the product.

    The modes of transportation include water, rail, intermodal, truck, air, pipeline and package carriers. Water is typically the least expensive mode, but is also the slowest, whereas air and package carriers the most expensive and the fastest.

    Rail and water are best suited for low-value and large shipments that do not need to be moved in a hurry. Air and package carriers are best suited for small, high-value, emergency shipments. Intermodal carriers are faster than rail and water, but more expensive.

    Logistics firms should take into consideration a combination of a) transportation costs; b) inventory costs; c) the level of responsiveness to the customers’ requirements. Managers should consider an appropriate combination of company-owned and outsourced transportation to meet their needs. Managers must also use the information technology available to help decrease cost and improve responsiveness in their transportation networks. For example, satellite-based communication systems allow carriers to communicate with each other.
    4. What Does a Logistician Do?

    Logisticians work in nearly every industry. Most logisticians work for either large shipping firms or international distribution companies. They are responsible for organizing, scheduling, and managing the distribution of materials. This career experienced a rapid growth in the mid-1980s as manufacturing firms shifted to just in time delivery. As a result of this change, it was necessary to schedule and manage the movement of large volumes of materials all over the world. This career has continued to grow, with the enhancement of computer technology that allows more firms to take advantage of this cost-reduction measure. Managing the supply chain is the top priority for a logistician. The supply chain refers to every step in the process from the procurement of materials to the production and shipment of those materials to different locations.

    The timing, costs, and efficiency of this process is the responsibility of the logistician. Making transportation arrangements involves coordinating the efforts of the shipper from the supply firm, the selection and scheduling of the transportation company, and the completion of the customs documentation, if required. It is important to note that these shipments are typically very large and may require specialized containers, unique transportation solutions or include hazardous materials.

    5. Some instructions which US customs brokers handling international trade, provide on their website
    To ensure customs entry and avoid delays, please read the following instructions carefully:

    1. Provide clear and detailed description of the goods you wish to ship.

    2. Clearly indicate the value of the items.

    3. State where the goods were manufactured.

    4. Send six copies of the commercial invoice and packing list four day prior to arrival.

    5. The document must include the following details.

    6. List the quantity of each item.

    7. Include the name and signature of the person preparing the documents.

    8. Specify the contents, weight, and dimensions of each box.

    6. A list of documents used in foreign trade

    1. Commercial invoice

    A document that contains specific information regarding the goods shipped and the conditions agreed between buyer and seller.

    2. Certificate of origin

    Document used in foreign trade which states where the goods were produced. It is often required by customs authorities.

    3. Packing list

    A document which specifies the contents of any form of packaging, e.g. boxes, containers, cartons, without indicating the value of goods shipped.

    4. Air waybill

    A contract between airline and shipper. It is a shipping document which states the terms and conditions of carriage and it is also a receipt for the consignment.

    5. Consular invoice

    A special kind of invoice sometimes required by the importing country. It needs to be approved by the embassy.

    6. Pro forma invoice

    A graft invoice which the seller prepares before the actual shipment takes place.

    7. Export licence

    A document which is granted by a government authority and states that specified goods can be exported.

    8. Customs invoice

    A specific document required by customs in some countries e.g. US when importing goods. It includes more details than a commercial invoice.

    9. Dangerous goods declaration

    Certificate prepared by the shipper/consignor which states that hazardous goods are handled according to international shipping regulations.

    10. Bill of lading

    A contract between carrier and shipper which specifies the goods to be shipped and the delivery terms. It is also a receipt of shipment and accompanies the goods until they reach their destination.

    Библиографический список
    1. English for Logistics. Oxford University Press. Express series.2015.

    2. Полякова Т.Ю., Комарова Л.В. Английский язык в транспортной логистике.КНОРУС. Москва, 2014.

    3. Y.Stukalina. ProfessionalEnglish for Students of Logistics. Transport and Telecommunication Institute. Riga, 2014.

    Учебное издание

    Г.В.Ушакова

    ENGLISH FOR TRANSPORT LOGISTICS
    Сборник текстов и учебных заданий


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    Государственный университет морского и речного флота

    имени адмирала С.О. Макарова

    198035, Санкт-Петербург, ул. Двинская, 5/7

    Отпечатано в типографии ГУМРФ им. адмирала С.О. Макарова

    198035, Санкт-Петербург, Межевой канал, 2
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