Australia is famous for their iron ore mines that are mostly located in Pilbara region. Under an agreement, India and Australia decided to import and export goods to each other. Under this agreement, Australia will be sending iron cores to India and in turn India will be exporting LED televisions to Australia. This study will mainly focus on the transportation systems by which the products will be transported to those countries. In case of Australia, they will be transporting iron ores through ships and India will be exporting televisions through air. The processes that will be used while transporting LED televisions and iron ores will be mentioned in this study. In addition, a probable cost for those shipments and transportation will also be mentioned in this study.
Iron Ore Export Process of Australia:
As identified from the latest statistics, Australia exports maximum iron ore around the world. In this situation, it has been identified that Australia implements a very efficient and advanced model for transporting the iron ore to other countries (Maniatopoulos et al. 2015). There are several steps of the entire transportation process, which are discussed below:
- The extracted iron ore will transported to the exporting point via a dedicated railroad. The entire shipment will be heavily guarded with the various technical system as well as human guard (Nakamura et al. 2016).
- The extracted iron ore then will be loaded into ship for transporting to India.
- The sea freight will need around 20 days for travelling 4598 nm distance in the speed of 10 knots.
Australia will follow Electronic Cargo Tracking System in order to transport the entire shipment of entire cargo. The ship will be planted with a tracking unit that will assist to track the containers’ status. Every container of iron ore will be bolted via an e-seal which will indicate the status of the container (Yellishetty and Mudd 2014). At the same time, the e-lock integrated with the CCS and SPS will serve as a tracking unit that will depict the status of the container. A monitoring platform will be also developed in order to track the movement of entire ship. After reaching the destination at Indian port, the materials are unloaded via mobile transportation.
LED TV Export Process of India:
India will mostly follow an effective human based approach for transporting the shipment to Australia. Just like other transportation process it will need several major steps as well. These steps are discussed below:
- India will transport the shipment of LED TV from a manufacturing house to the nearest airport for exporting the goods to Australia. The cargo will be guarded with human guards as well as extensive surveillance system (Dalstra 2013).
- The cargo freight will be loaded with the entire shipment.
- The flight will take 15 days to transport from India to Australia.
India will follow Country-by-Country Tracking System in order to transport the entire shipment of entire cargo (Boucher and Dimitrakopoulos 2012). The shipment will be guarded under a control server that will track the movement of the shipment. However, the physical security will be based on extensive human observation and tracking system. In this case, the control authority will be exchanged at the time of entering the border of Australia. In this situation, Australia will be responsible for the security of the cargo.
Iron ore export process of Australia
LED TV export process of India
Around 20 days
Around 15 days
The shipment will be travelled through sea route
The shipment will be travelled through air route
The transportation will be conducted through Electronic Cargo Tracking System
The transportation will be conducted through Country by Country tracking system
The security of entire shipment will be based on electronic device as well as satellite surveillance
The security of entire shipment will be based on human observation and tracking system
Inter-Country Transportation Arrangements:
While considering the Electronic Cargo Tracking System, the entire transportation arrangements will be conducted through a close cooperation of both Australia and India (Duuring et al. 2012). The countries will sign a bilateral agreement for generating a framework for implementation of the transportation model. The major points that have to be considered in the memorandum of understanding (MOU) are mentioned below:
- Arrangements for exchanging the information regarding transport and cargo
- Using application software that is compatible for both countries
- The tracking units, e-lock and e-seals must be accredited jointly
- The temporary admission of the transportation must be mutually agreed
- The registration information must be mutually recognized
- The inspection results must be mutually recognized
- The accredited containers must be mutually recognized
- The countries must assist each other in case of any occurrence of exceptional events
Considering the Country-by-Country Tracking System, the countries may use limited cooperation. The individual control authority and have the proper autonomy to track the transportation within their geographical border (Zhou et al. 2014). However, the transportation have to wait in the border as the tracking units, e-lock, e-seals must be resubmitted. In addition, the security personnel also have to be changed or registered.
Cost and Efficiency
Australian Navy will be responsible for transporting iron ores in India through sea. The Navy is more than capable to transport antiques, fragile products, musical instruments that require special care and other defense related equipments (Murray 2014). As the import and export is taking place between two Governments, the Navy will be doing the part from Australia. Most of the Iron ore exports are done from Port Dampier, Port Hedland, Cape Lambert and Port Walcott. Transport cost would be $20/per ton for transporting Iron ore to India (Blanton 2012).
Australian shipping industry is highly trustable and efficient in exporting products to various countries such as Germany, Netherland, The United States, Singapore and Japan. The Government of Australia has implemented supportive policy measures which will allow the seafaring workforce to have trainings (Tavasszya and de 2013). Besides, as the shipment will be delivered via Navy, its guaranteed that it will reach on time.
For India, Air India will play the major role in transporting LED televisions to Australia. Air India has improved their fleet by adding new fleet of Boeing and Airbus aircraft carriers. That is why Air India is the logical choice by which LED televisions can be safely transported out of India (Maitra and Sadhukhan 2013). Cargo operations conducted by Air India will provide a capacity advantage over a network combined with more than 20 international stations. Globally, Air India is tie up with various foreign Airlines including Australia which will help the Government of India to export cargo to the country. In order to support any type of cargo, Air India have a group of highly skilled and experienced team of professionals who are supported by the company’s training division of International repute (Rawal and Devadas 2015). It helps the personnel of the organization to constantly upgrade skills and abilities. Air India on other hand uses the upgraded and latest state-of-the-art technology for their cargo activities which is also known as Logistics Management System. This system supports EDI interface which customs of India. The cargo can also be tracked via LMS.
From 1st August 2012, the rates of Air India were enhanced for transporting various types of cargo (Singh et al. 2014). They have a unique procedure for different types of goods for transporting them. The rates are mentioned in the table below,
Cargo rate (per kilogram)
Minimum rate per shipment
Special type of cargo that includes hazardous and cold storage
For fish the rate would be Rs. 0.65, for live stock the rate of the cargo would be Rs. 1.30 wherever exclusive facility is not allowed, for health care items such as vaccines the cargo price would be Rs. 2.65 wherever State of Art Facility is provided from APEDA.
For fish minimum rate per shipment would be Rs. 200, for live stock the rate would be Rs. 235/- and for vaccines the rate would be Rs. 235/-
Table 1: Cargo price structure in Air India
(Source: Tavasszya and de 2013)
The product is LED television therefore it will be categorized as general item and the cost would applicable as per mentioned in the table 1. Some other important notes that must be considered in order to maintain efficiency of the service are mentioned below,
According to (Balaraman and Kuresan 2015), he free period for cargo export would be twenty four hours for the purpose of examination and processing by the shippers. Once the free period is done, late clearance charges will be applicable.
No charges will be applied for Forklifts. Arrangement for consignment of 10 tons and above will be executed by agent and crane charges will be bear by them.
Charges for opening, repacking and strapping will be included in miscellaneous receipts.
Minimum strapping charges would be Rs. 45 per shipment especially for exporting goods. In case for extra straps, extra charges are applicable.
Bills related to exporting and all other operations must be rounded off to the next of Rs. 5/- and Rs. 10/-.
Taxes related to service and other statutory taxes will b collected as per government notifications.
Any kind of charges will be levied on the gross weight of the shipment or on the chargeable weight.
Ware house charges will be separately added. In case of special cargo rate per kg per day would be Rs. 1.44 where minimum rate per assignment should ne Rs. 235/-. Perishable cargoes will be charged as Rs. 2.00/- and minimum rate per shipment would be Rs. 200/- (Lloyd and Bansal 2013). However, LED televisions are neither perishable nor special goods. It will be counted as general cargo and the rate for general cargo is Rs. 0.72 per kilogram per day. Minimum rate per shipment would be Rs. 120/-.
Air Cargo operations are known as extremely complex. Precision delivery and safety entirely depends on how air cargo professionals are trained. Efficiency of such services also depends on it. That is why; Air India provides several courses where the main focus stays on industry best practices and change management that helps the workers to understand and adapt to increasingly complex air transport atmosphere. The organizations are also responsible for quality training solutions in order to respond to varied learning needs of the industry. The organization also motivates its employees to take IATA cargo training courses which are famous for helping thousands of air cargo professionals to learn important skills (Tavasszya and de 2013). They also offer the most dynamic and innovative training solutions for every part of air cargo operations that includes on-time performance, business management and strategic planning.
In the end, it can be concluded that the import and export procedure between India and Australia will be an easy operational process as both the countries have efficient transportation systems. Australian shipping procedures are highly capable and trusted as the country is connected with some major countries in the world by their sea transport. On the other hand, Australia is a famous place for their iron ore manufacturing capabilities. Therefore, the country is already exporting iron cores to various countries. Therefore, doing the same in India would be an easy task. On the other hand, India also has a reliable air transport facilities through their Air India fleet. Operations of Air India are more than reliable and all their staffs are professionally trained to handle any type of cargo with care. Besides, the organization has also added Boeing planes in their fleet which will help India to ship a large amount of LED televisions to Australia.
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