The cost that is associated with ocean transport is a significant factor that heavily influences shipping and logistics. Time and size (product) constraints determine the mode of transport. In order to possibly overcome or reduce the cost of transportation of these products, one has the option to break bulk. To break bulk in shipping refers to the process of making the containerized product into smaller and easier to move. Using ocean transport in most cases takes more time to reach its destination as compared to using air as a mode of transport. The main advantage of ocean transport is that the amount of weight of the freight it can support as compared to other transportation modes is more. To control the individual cost element, which is associated with ocean transport, in my opinion, the easiest way is to break bulk and using other means. It ocean transport is the only available option; consolidation of all products to occupy the least space is the way to go.2. Compare and contrast EXPORTS and IMPORTS as the more desirable activity for a budding entrepreneur. Which activity would you prefer and why?
As a budding entrepreneur to choose which activity to undertake between export and import, one should consider a number of factors. In shipping and logistics, the exporter usually incurs the cost of insuring the freight. Therefore, exporting may require one to carry extra costs, which are very necessary. In importing, there are also some costs to incur such as duty for the freight. Another factor is that when exporting, the exporter is sure of a market at the other end that he/she is only exporting on request. In imports, the importer might be acting on hope that his product will sell as he anticipated.3. When targeting an overseas market, it is necessary to commission market research and market forecasting. How would you obtain these activities and what is their difference?
Market research aims to discover the available market and the demand of the product in the overseas market. When carrying out this research, one should carefully look at the niche he/she is trying to fill and whether it is underutilized or if there is great demand for the product to be offered. Market forecasting sees to ensure that the found market will be sustained for a long time to allow the entrepreneur to reap benefits.4. You are going to need excellent negotiating skills when developing your export and/or import business. What do you consider are the most important negotiating skills that will help you most?
Negotiation skills are vital to doing good business. They allow one to gain great deals in their businesses. Such skills include having great communication skills to enable proper communication and understanding between the clients and vendors to your business. Integrity in negotiations allows the other participants in the business activities to trust your word. In order for the different parties involved in this line of business to agree, each must have great problem solving skills. This will allows the involved parties to meet in the middle where they will all be happy with the decisions made.5. All commercial endeavors require some form of insurance cover to protect the merchant from any losses. Who pays for insurance cover for a containerized shipment that you are exporting? What risks are normally covered?
The risks that are involved in shipping are not limited to damages to the merchandise that may occur during transportation. This may be breakage and/or loss through accidents on the freight carrier such as fires. There is not a lot that a merchant can do to protect these products from such kind of incidence. This is because these incidences natural and sometimes unavoidable. To protect you, as the merchant, an insurance cover of the goods in freight should be obtained. Usually the owner of the container takes care of the insurance. The products contained in these containers are different and may not always be from the same exporter. The exporter will get into an agreement with the owner of the container to ensure safety of his/her merchandise.
