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International Trade, Procurement, Logistics and Shipping Essay Example

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International Trade, Procurement, Logistics and Shipping

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Logistics activity attracts attention as the magnitude of handling international cargo from one country to other and from region trading bloc to other has significantly increased for the last few years. Thanks to stabilizing and improving international financial transactions, international trade and commerce activities, international logistics has experienced a significant rise for its role for imports and exports through effective use of airport operations.International distribution is an essential component of the international logistics. The international distribution has been categorised into three classifications: Trans-shipment mode, import mode and export mode; in the trans-shipment mode, cargo comes from abroad and after processing in logistics centres, it is forwarded to destinations; in the import mode, imported cargo from abroad is distributed within the receiving country; in the export mode, domestically supplied cargo is exported to the international markets (Lin et al.When airport operations facility is compared with the maritime or seaport operations for handling the international logistics, various factors highlight the importance of airport operations over the seaport international cargo handling services. For example, type and number of runways indicate the infrastructural facility and capability of an airport handling the amount of international cargo (Coyle et al.In other words, based on this description, it can be deduced that for efficient and effective handling of international cargo, the air cargo firms prefer only those airports which are technically and technologically equipped to handle and quickly process the handling and dispatching the international cargo. Also, when the airport operations are compared with the seaport operations, it can also be highlighted that the airport operations are more effective as they are strategically and logistically equipped to handle the international cargo.Transportation cost has a substantial effect on the international logistics. For example, Korinek (2009) contends that a 10 per cent rise in seaport transportation services decreases 6 to 8 per cent trade between trading partners. This clearly reflects that the international transportation cost has a severe effect on the international trade and subsequently this affects on the international logistics as well. As the international logistics primarily relies on the fluctuations in the international trade, international transaction

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