Maritime Transportation: The Global System of Shipping and Ports Case Solution
Business terms and principles
According to the analysis of global systems for shipping and ports, following changes must be made for the improvements in the field of cost as well as operational efficiency of maritime transportation in order to provide better picture to execute in the future.
Access for demand management
The major problem for every maritime transportation company is the emergence of labor unions, which can damage the operational efficiency of import and export process as well as this may reduce the technological innovation and structural considerations. Therefore, every logistic company should reduce the risk of labor unions by introducing a new principle to hire the non-union labors in order to provide better results according to the work to be made.
Safety considerations
It has been analyzed in the past 50 years that there were several problems related to the safety concerns. Therefore, due to the technological innovation, every logistic company should implement the principle of safety by introducing the new equipment for inspecting the goods. In order to apply this principle, the company should strictly follow the process according to the law imposed within the country.
Use of land and other resources related to shipment
The lender’s strategy in the U.S was to lease the land of cargo to the terminal operators, therefore the union labor had total control over the use of process in transportation. It was also analyzed that lenders had no control over the labor of third party companies. According to the new principle, the owner of the land must take control over the operations andtry to hire his own labor which should subjected to non-union, as this will allow to connect with the other companies and may consolidate with them according to the expected performance each company will seek.
Cost and operational quality
According to the principle proposed for the case, every logistic company should determine the potential economic threat, which can increase the level of cost as well as reduce the capacity for transportation. Therefore, the structural changes should take place to introduce big vessels for large capacity in order to reduce the cost however, it should be restricted to a particular size because of the risk of damage for over weight of containers. Therefore, the principle of cost and quality shows that it can only be properly executed if the country’s economic scales will tend to increase by proper laws as well as to provide enough funds for the construction of two big ports of the U.S.
Analysis of historical and expected performance
The case analyzed the performance of different shippers as well as third party involvement for the process of import and export through maritime transportation. On the other hand,Wal-Mart is the most dominant importer which consists of 695, 000 containers all around the globe, the two expatriates of China were holding the most exports during the recent years.....................
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