TPT346

MANAGING TRANSPORT OPERATIONS

CHAPTER 1

Learning outcomes

By the end of this chapter, you will be able to:

1. Understand the structure and Organization of Transpor tation based

on pattern of ownership, Third par ty transpor ter, Transpor t f irms and
enterprises licensing and others.

2. Explain the process and procedure of organization ownership in

Malaysia

3. Describe the types of various commercial vehicle permits in Malaysia.

1.1 Patterns of ownership (private, semi-
public and public, department of state)

What is Ownership in organization?

The legal control over a business is referred to as

ownership. It empowers the owner or the legal capacity to
direct corporate activities and transactions.

Type of ownership is the legal status of the company and

how it is owned. Continuity exists even if ownership
changes, for as when a member or shareholder dies or
retires.
There are four major corporate ownership structures

i. Sole Proprietorships

ii. Partnerships

iii. Private limited companies

iv. Public limited companies

There are different types of enterprises in Malaysia. Sole Proprietorship, Partnership,

Limited Liability Partnership, Private Limited Company, Unlimited Company, Public
Limited Company.
Sole Proprietorship

A sole proprietorship is the most Sole proprietorship is

basic type of business structure, appropriate for those who have
having a single owner. Only sufficient funds to establish a
Malaysian citizens are permitted business on their own with little
to be sole owners in Malaysia. difficulties.
What are the
In contrast to a partnership, the owner of a sole
advantages of a proprietorship has entire authority over the business. The
sole proprietorship proprietor does not partake in the profits made by the
business and has complete control over all business
versus a decisions.

partnership?
Partnership
• A partnership is made up of two to twenty persons who work together to develop
and run a business.

• To carry out a business, all partners share their resources. In the beginning, a
partnership agreement is signed outlining each partner's responsibilities.

• A partnership agreement specifies how decisions are made, how profits and losses
are distributed, and the amount to which each partner participates in decision
making.

• Only Malaysian citizens and permanent residents are permitted to register for a
partnership business in Malaysia.

• Although the partnership is not taxed, the partners are taxed as individuals and
must disclose their individual losses and earnings.
Limited Liability Partnership

• A Limited Liability Partnership (LLP) combines the features of a partnership and a

corporation.

• An LLP is made up of two or more parties or individuals.

• It exists independently of its partners.

• LLPs are commonly used by businesses such as law companies, accounting firms,
and asset management firms.
 • A partnership is an agreement between two or more
people to run a business together and share profits
and losses.

• Partners are subject to infinite responsibility.

• LLP, on the other hand, is a type of business that

combines the characteristics of a partnership and a
The Difference Between corporation.
Partnership And LLP?
• One of the benefits of an LLP is that it is a separate
entity, and each partner's responsibility is limited to
the amount contributed.

• A partner in an LLP is only liable for their own

activities and cannot be held liable for the actions of
other partners.

• Partners in a partnership business are not protected in

any other way.
Private Limited Company (Sdn Bhd)

• P r i vate L i mi t ed C o mp an y i s a l eg al en t ity d i s tinct f r o m i t s o w n er s .

• A S d n B h d can b u y an d s el l p r o perty as w el l as en t er i n to l eg al co n t racts .

• A P r i vate L i mi t ed C o mp an y can b e f o r med b y as f ew as o n e p er s on an d as man y as 5 0 p eo ple.

• F o r f o r eign i n v es tors, P L C s ar e t h e mo s t p o p ular t yp e o f en t ity.

• T h i s i s d u e t o t h e f act t h at f o r eigners ar e p er mi tted t o h o l d 1 0 0 % o f t h e co r p oration.

• H o w ev er, i n M al ays i a, s ev er al b u s ines ses d eman d a mi n i mu m o f 5 0 % M al ays i an o w n er ship.

• B an k ing, ed u cation, o i l , g as , an d ag r iculture ar e a f ew b u s ines ses t h at r eq u ire 5 0 % M al ays i an

o w n er ship.
Private Organization

Malaysia's transport Nonetheless, the The success of firms Private Unlike public travel, As the owner of a
sector is advanced, sector has been like Grab and MyCar transportation is you will not face private
with passengers transformed by demonstrates this. intended for large crowds transportation
having access to private personal or because this is not company, you will
world-class public transportation's e- individual usage. easily available to accept these
transport. commerce potential. the general public bookings from your
unless done through clients and then
a private booking. organize the
appropriate kind of
transportation.
In Malaysia, the private transportation industry can be divided into various
groups.

Vehicle Rental for Special Events: Company excursions, school trips, weddings, party bus, minibus charter.

• Corporate Services include executive carpooling, limo services, and airport transfers.

• Other services include a school bus, delivery services, e-hailing cabs, and exclusive hotel excursions.

• A business might specialize in any type of private transportation service. Bicycles, motorbikes, scooters, recreational
equipment, and even sailboats and private aircraft are included.
 • A P u b lic L i mi t ed C o mp an y, o f t en k n o w n as a " B er h ad, " i s
o n e o f t w o t yp es o f co mp an ies i n M al ays i a t h at ar e l i mi ted
b y s h ar es.

• S t r ucture an d o w n er ship: G o v er nment au t horities o r s t at e-

o w n ed co r por ations o w n an d r u n p u blic t r an sport.

• I t i s s u p ported b y a mi x o f l o cal, s t at e, an d f ed er al en t i ties .

Public Limited Company • I n M al ays ia, p u b lic o w n er ship i s mo s t l y o w n ed an d

r eg u lated b y s t ate o r f ed er al g o v ernments.

• M i n i stries, g o v er nment ag en cies , g o v ernment l i nk

co mp an ies ( G L C ) , an d v ar i ous p u b lic co r por ations s u ch as
P et r olium N as i o nal B er h ad ( P et ronas), S i me D ar b y B er h ad ,
P er mo d alan N as i o nal B er h ad ( P N B ) , C I M B , E mp l oyee
P r o vident F u n d ( E P F ), H aj P i l grimage B o ar d ( T H ) , an d
K h azan ah N as i o nal B er h ad ar e al l i n cluded.

• T h e C o mp an y A ct o f 2 0 1 6 g o v erns t h e f o r mation,
o p er ation, an d d i s s olution o f t h es e co r p orations .
 • Governs the formation, operation, and dissolution of these
corporations.

• In Malaysia, large-scale firms typically use a Public Limited

Company entity. A public company's major qualities are as
follows:

• A minimum of two (2) natural individuals who are at least

eighteen (18) years old and typically dwell in Malaysia by
The Company Act of
having a primary place of abode in Malaysia are required.
2016
• A minimum of one (1) shareholder, either an individual or a
corporation (local or foreign)

• Maintain a registered office in Malaysia to which all

messages and notices may be directed, and which shall be open
and accessible to the public during normal business hours.

• Appointment of a Company Secretary who is certified and

qualified in accordance with the provisions of the Company Act
2016.
Semi-Public

Government-linked corporations (GLCs) are businesses with a primary commercial goal

in which the Malaysian government has a direct controlling interest. Some of these
GLCs are:

a) Malaysia Airlines Berhad (MAB)

A GLC that is entirely owned by Khazanah Nasional, wh ich is totally owned by the
Ministry of Finance Incorporated (MOF Inc.). Prior to 2014, the airline was known as
Malaysia Airlines (MAS), however due to a reorganization exercise, the name was
changed to MAB.
Semi-Public
b) PLUS Malaysia Berhad

Khazanah (51% ownership) and EPF (49% ownership) jointly own this GLC. PLUS was
established in 1986 as a private firm. Following the Asian Financial Crisis, the
government took charge. A proposal to privatize PLUS was rejected earlier this year.
As a result, PLUS remains government owned.

c) Tenaga Nasional Berhad (TNB)

TNB evolved from a state-owned corporation to a privately held company completely

owned by the government to what it is currently, a publicly traded company on the
Bursa Malaysia.

The government owns a majority stake in several GLICs. TNB is critical to the
development of Malaysia's economy because it is the primary power utility business in
Peninsular Malaysia.

It is also the sole provider of power in Sabah, as TNB owns SESB.

Semi-Public
d) Malaysian Telecommunications Berhad (TM)

Jabatan Telekom Malaysia (JTM) was privatised in 1987,

which means it was moved from public to private
ownership and control. 25% of the company was listed on
the Kuala Lumpur Stock Exchange in 1990. Despite being
privatized, TM is a GLC because the government owns
more than 68% of the company through multiple GLICs.
Common carriers and non-vessel
operating common carrier (NVOCC)

Definition of carrier

A 'carrier' is simply an individual who transports cargo (or

passengers, but passenger carriage is outside the subject of
this Practice Note) for the benefit of others, whether
gratuitously or for payment (or ’ reward').
The types of carriers are:

1. Common Carriers: A common carrier is an individual or commercial enterprise that

delivers passengers or commodities for a fee and makes their service available to the
public. A shipowner, railroad, airline, taxi service, and other common carriers are
ty pical examples.

2. Common Carriers in logistics: A common carrier is a private or public corporation

or individual who delivers goods, or goods for a charge and is available for hire by the
public. Freight is transported by several third-party carriers on an as needed and
transactional basis in common carriage.
The types of carriers are:

3 . P r i v a t e C a r r i e r s : A p r i v a t e c a r r i e r, o f t e n k n o wn a s a c o n t r a c t c a r r i e r, i s o n e w h o a g r e e s t o t r a n s p o r t
p e o p l e o r p r o p e r t y f r o m o n e l o c a t i o n t o a n o t h e r o n a o n e - t ime b a s i s . S e mi t r a i l e r t r u c k s a r e t h e mo s t t yp i c a l
mo d e o f t r a n s p o r t c o n n e c t e d w i t h p r i v a t e c a r r i e r s , w h i l e l a rg e c o r p o r a t i o n s ma y a l s o r u n t h e i r o w n a i r c r a f t ,
r a i l c a r s , o r s h i p s a s p a r t o f t h e i r s u p p l y c h a i n ma n a g e me n t .

4 . N o n - Ve s s e l O p e r a t i n g C o mmo n C a r r i e r ( N VO C C ) : A n o c e a n c a r r i e r t h a t p r o v id e s a l l c a r r i e r s e r v i c e s
b u t d o e s n o t o w n i t s o w n v e s s e l ( s ) . T h e y o p e r a t e b y l e a s i n g o r p u r c h a s i n g a v a i l a b l e s p a c e i n c o n t a i ne r s a n d
c o n t r a c t i n g w i t h c u s t o me r s u s i n g t h e i r o w n H o u s e B i l l o f L a d i n g . A n N V O C C i s a t r a n s p o r t a t i o n
i n t e r me d i a r y s i mi l a r t o a f r e i g h t f o r w a r d e r, e x c e p t t h a t a n N V O C C c o n t r a c t s d i r e c t l y w i t h t h e s h i p p e r t o
t r a n s p o r t c o n t a i n e r s b u t d o e s n o t u s u a l ly o w n w a r e h o u s e s p a c e ( a s o p p o s e d t o a f r e i g h t f o r w a r d e r, w h o a c t s
a s t h e s h i p p e r ' s a g e n t t o b o o k t h e s h i p me n t f o r t r a n s p o r t w i t h a c a r r i e r b u t u s u a l ly h a s a c c e s s t o t h e i r o w n
warehouse space).
Third party transporter or contract transporter

Any upstream or downstream third

The four basic means of While each of these modes of
party that provides services required
transportation in logistics are transportation has distinct
for the delivery/redelivery of Gas
shipments by truck, ship, train, and advantages, determining which
to/from Transporter's Facility is
plane – often known as road, marine, option is best for company requires
referred to as a Third-Party
rail, and air shipments. careful analysis.
Transporter.
What is the difference between third party logistics and contract logistics?

Contract logistic businesses 3PLs offer a full range of logistics

often assist in the planning of services, including warehousing
transportation and routes, a 3PL and order fulfilment, inventory
company handles much more management, and automated
than just transportation. shipping.
Definition of Third-party transporter

O u t s our cing t r an sportation o r l o g istics s er v ices i s r ef er red t o as

t h i rd -party l o gis tics .

T h i s can i n clude t as k s s u ch as s h i pping, s t o ring, an d d i s tributing a

co mp an y's i t ems .

A 3 P L p r o vider o f t en t ak es an i n co rporated, s t r ategic ap p r oach t o

man ag i ng a cl i ent's t r ans portation an d s u p p ly ch ai n.

O t h er t r ans portation p r o viders, s u ch as f r ei ght b r o k erages, ar e l es s

i n v olved i n a cl i ent’s d ay- t o -day o p er ations, i n s t ead act i ng as a g o -
b et w een f o r s h i ppers an d car r iers w h en n eces s ary.
Definition of Third-party transporter

• A t h i rd -party l o gis tics s u p p lier w i l l b e co mp l etely f ami l iar w i t h

a cl i ent' s s h i pment, d eman d cycl e, an d s u p p ly ch ai n.

• T h e 3 P L may u s e t h is 3 6 0 -degree p i ctur e t o o p timi ze l o ads , f i n d

eff i ciencies , f o r ecast f r ei ght v ar i ations, an d d ecr ease
t r an sportation co s t s .

• T h e 3 P L can b e a s t r ategic p ar t ner w h o i s co n tinually

mo n i toring f r ei ght p er f o rmance, g i ving a cl i ent's s u p p ly ch ai n
g r eater i n s ight, an d mak i n g i t s i mp l er t o d i s cover o v er spending,
d el ays , an d o t h er i n efficiencies .
When is third party transportation required?

Third-party goods transport is used when:

• the products to be carried are owned by a client that hires the haulier.

• The vehicle in which the materials are delivered is owned by the company, which
takes control of the items and provides the client with a suitable fleet of cars.

• The major things in the balance sheet are the handling, the associated costs, and the
price agreed upon with the client.

• Finally, payment is made for third-party transportation.

Third-party transport
licenses are classified into
three types:

• License for third-party transportation up to

1.5 tonnes

• License for third-party transport up to 3.5

tonnes

• License for third-party transportation with

no restrictions or limitations.
Contract Logistics
• Outsourcing resource management responsibilities to
third-party service providers is referred to as logistics
contracting.

• These service providers manage every task, including

supply chain planning, order processing, transportation
and distribution of goods, inventory management,
payment collection, and other areas of customer
support.
EXAMPLES OF
CONTRACT
LOGISTICS

Freight transport, customs

clearance, warehouse logistics,
and freight forwarding
Elements of contract logistics

• Organizing warehouse items,

processing, order assembly, and • Preparing Custom documentation.
loading and unloading processes.

• Additional services such as

• Providing a performance
barcoding, packing, and stickering
evaluation report.
are available.
What is considered commercial vehicle in Malaysia?

A commercial vehicle is It contains a commercial

This usually includes lorries,
defined by Malaysian transport class A permit and
trailers, vans, taxis, and
legislation and is overseen by a commercial transport class
buses.
the Ministry of Transport. C permit.
Transport firms and enterprises
licensing – own account transport
T h e m a t e r i a l s t o b e h a n d l e d a r e o w n e d b y t h e c o r p o r a t i o n , p u b l i c b o d y, o r
p r i v a t e o rg a n i z a t i o n ( " l e g a l e n t i t y" i n j a rg o n ) t h a t i s d o i n g t h e t r a n s i t .

• The owner or an employee of the corporation is the vehicle driver (i.e., the
"natural person").

• The truck used to deliver the supplies is either owned by the company or
hired for this purpose.

• The handling and related costs represent a minor component of the

c o m p a n y ’s f i n a n c i a l s h e e t . I n o t h e r w o r d s , o w n - a c c o u n t t r a n s p o r t a t i o n i s n o t
a profitable business. A particular registration certificate certifies the
transport.

• F i n a l l y, t h e r e i s n o c h a rg e f o r t h e h a n d l i n g o f g o o d s .
Registration and Licensing
1. Commercial Vehicle and Haulage Licence

2. Transport License for Scheduled Wastes

3. Transport License for Radioactive and Nuclear

Materials

4. Policy on Equity
Commercial Vehicle and Haulage
Licence
Tr an spor tation P r o viders:

• C o mp an ies t h at ai m t o p r o vide t r an sportation s er v ices t o t h i rd

p a rt ies u s i ng co mmer ci al v eh i cles mu s t o b t ain a C ar r ier L i cen se
A.

• C o mp an ies t h at p r o vide s er v i ces f o r t h ei r o w n u s e mu s t o b tain a

C ar r i er L i cen s e C .

• I n l i n e w i t h t h e C o mmer ci al Veh i cl es L i cens ing B o ar d A ct , 1 9 8 7,

b o t h l i censes mu s t b e o b t ained f r o m t h e L an d P u b lic Tr an s port
A g en cy ( A PA D ) f o r o p er ators i n P en i nsular M al ays i a an d t h e
C o mmer ci al Veh i cl es L i cen s ing B o ar d ( C V L B ) f o r o p er ators i n
S ab ah an d S ar aw ak .
Transporting container bulk,
bulk liquid and general
haulage and goods…

must be registered with the Malaysian Road

Transport Department (JPJ).
 A company that transports scheduled waste must get
a license from the Department of Environment (DOE)
Transport under the Environmental Quality (Scheduled Wastes)

License for Regulations, 1989.

Scheduled
This license is valid for one year and can be renewed.
Wastes
Transport License for
Radioactive and Nuclear
Materials

Companies whose seek to transport nuclear

and radioactive materials must get a Class
D License from the Atomic Energy
Licensing Board (AELB).
Policy on Equity
Application for

License A: The corporation must have at least 51%

Malaysian equity (including 30% Bumiputera equity), with
foreign equity participation permitted up to 49%. The
Licensing Committee will make the final judgement on
approval. Foreign equity ownership of up to 100% is
permitted for courier service operators.

License C: Foreign equity ownership up to 100% is allowed.

 It is used to denote the sort of cargo being transported.

The meaning of For example, "F" represents for "Flammable", "T" refers for

alphabet codes
"Toxic", and "X“ stands for "Explosive".

It's vital to note that these codes are utilized as a national

on the rear of standard so that other drivers and emergency responders are
aware of the potential hazards of the cargo being transported.

trucks
It is also to adhere to the United Nations (UN) worldwide
standard for the transportation of dangerous products.
 A commercial vehicle is defined by

Types of
Malaysian legislation and is It contains a commercial transport class Types of commercial vehicles in
administered by the Ministry of A permit and a commercial transport Malaysia usually includes lorries,
Transport. This usually includes lorries, class C permit. trailers, vans, taxis, and buses.
trailers, vans, taxis, and buses.

various
Forklifts (with road tax), mobile cranes,
It contains a commercial transport class

commercial
sky lifts, backhoe loaders, hearses, and Taxis, commercial rental and drive
A permit and a commercial transport
ambulances are examples of special vehicles.
class C permit.
vehicles.

The operational of licensing for public

vehicle
transportation vehicles, tourist vehicles

permits.
and goods throughout Peninsular
Malaysia are regulated under the Land
Public Transport Act 2010 (Amendment
2018) [Act 715].
Taxi:

• Taxis are also known as taxi cabs or metered taxis (teksi

bermeter), and fares are automatically determined by an
electronic meter that measures the distance travelled or the
time spent in heavy traffic or while stationary.

• Taximeter, which records distance and fare, is commonly

referred to as a meter.

• Taxi is defined as a car driven by a person whose duty it is to

transport passengers in exchange for money.
Taxi (continued)
• Metered taxis are classified into three types: TEKS1M, budget, and executive.

• Although their fares differ, the vehicle model may be the same.

• Those interested in peninsular Malaysia should apply to the Land Public

Transport Agency (APAD).

• To manage road transport licensing concerns in their respective states, Sabah and
Sarawak each have their own autonomous Commercial Vehicle Licensing Board
(CVLB).

• Previously, applicants were required to have one to three years of experience

operating a taxi or rental automobile, as specified by the Taxi Industry
Transformation Program (TITP).

• APAD has now lifted this condition to allow new players to enter the taxi
industry, albeit a dying one.
Bus:

• B u s O p e r a t o r i s t h e o w n e r w h o p e r f o r ms v e h i c l e a n d t r a n s p o r t a t i o n o p e r a t i on s a n d s e r v i c e s .

• O p e r a t o r s i n c l ud e A s s o c i a t i o n C o o p e r a t i v e s C o mp a n y ( s i n g l e p r o p r i e t or s h ip / " e n t e r p r is e " / p r i v a t e
l i mi t e d ) a s w e l l a s G o v e r n me n t a l o rg a n iz a t i o n s / s t a t ut o r y b o d i e s .

• O p e r a t o r s mu s t p o s s e s s a v a l i d b u s i n e s s c e r t i f i c a t e o r r e g i s t r a t i o n , s u c h a s t h e C o mp a n i e s C o mmi s s i o n
o f M a l a ys i a ( S S M ) b u s i n e s s c e r t i f i c a t e , C o o p e r a t i v e R e g i s t r a t i o n C e r t i f i c a t e , R e g i s t r a t i o n o f S o c i e t i e s
C e r t i f i c a t e , a n d E s t a b l i s h me n t A c t a s a G o v e r n me n t A g e n c y / S t a t u t or y B o d y.

• A n O p e r a t o r ' s L i c e n s e c o n t a i n s t h e o p e r a t o r ' s p r i ma r y i n f o r ma t i o n, s u c h a s n a me , a d d r e s s , a n d
r e g i s t r a t i on n u mb e r o f t h e c o mp a n y / a s s o c i a t i on / c o o p e r a t i ve / G o v e r n me n t a g e n c y / s t a t u t o r y b o d y.

• Ve h i c l e P e r mi t I d e n t i f i c a t io n mu s t b e s h o wn i n t h e v e h i c l e / t r a n s p o r t w h e n i n o p e r a t i o n .
Light vehicle:

A vehicle that is up to 4.50 tonnes Gross Vehicle Mass (GVM) and exceeds one or more of the following dimensions will require
an exemption in the form of a light vehicle permit to operate.

A single motor vehicle not exceeding 12.5m in length; a combination not exceeding 19m in length; a vehicle not exceeding 2.5m
in width; and a vehicle not exceeding 4.3m in height. A driving license is necessary in Malaysia before driving any type of motor
vehicle on a road in Malaysia, according to Section 26(1) of the Road Transport Act 1987.

Section 26(1) of the Road Transport Act states that a person must have a valid driving license before being allowed to drive on
the road, or they would be penalized under section 26(2).

Commercial Driving License (CDL) or Vocational Driving License (VDL) is a commercial vehicle driver's special driving license
granted jointly by the Road Transport Department and the CVLB.
Heavy vehicle:

Heavy Vehicles are defined as motor vehicles

(other than Special Vehicles) with at least three Individual or corporate shares must be
wheels and a maximum allowable load greater registered with the Companies Commission of
than 3.5 tonnes. Heavy Vehicle Permit means a Malaysia (SSM) to acquire this permit.
permit required to operate a vehicle that Individuals and partnership companies must
exceeds the manufacturer’s Gross Vehicle additionally have a Goods Driving License (GDL)
Weight (G.V.W.) greater than forty-seven that is still valid.
thousand kilograms (47,000 kg).
Cargo that does not fit in a normal transport container involves additional traffic
concerns. As a result, state DOTs control OOG cargo and require truckers transporting
it to obtain special permits. Following state standards for oversize cargo helps to
ensure that y our load arrives on time, undamaged, and without legal issues. Out of
Gauge (OOG) freight is cargo that cannot be carried on a dry container due to its
dimensions (height, width, and length) or weight. This ty pe of merchandise is shipped
in an open top or flat rack container. Break Bulk Cargo is also a sort of OOG cargo;
however, a container loaded with OOG cargo can be transported on conventional
roadways and delivered into and out of a container terminal.

Out of gauge (OOG) and special permits:

 A load that is longer, wider, or taller than a standard
ocean container is usually transported in a specialized
cargo container such as an open top (like a standard
OOG Cargo container but uncovered at the top), a flat rack (a
container with open sides but walls at the front and
back), or a platform (a flat rack without any walls).
 1. A - Vehicles for the 2. B - Motorcycles (all 3. B1 - Motorcycles not 4. B2 - Motorcycles not
disabled person displacement) exceeding 500 cc exceeding 250 cc

Driving 5. C - Motorized tricycles

6. D - Manual transmission
cars with unloaded weight not
exceeding 3500 kg
7. DA - Automatic
transmission cars with
unloaded weight not
8. E - Trucks (all classes)

exceeding 3500 kg

License 11. F - Tractors / Light 12. G - Tractors / Light

9. E1 - Trucks with unloaded 10. E2 - Trucks with unloaded motorized machines motorized machines (chained)
weight not exceeding 7500 kg weight not exceeding 5000 kg (wheeled) with unloaded with unloaded weight not

Classes weight not exceeding 5000 kg exceeding 5000 kg

13. H - Tractors / Heavy 14. I - Tractors / Heavy

motorized machines motorized machines (chained)
(wheeled) with unloaded with unloaded weight
weight exceeding 5000 kg exceeding 5000 kg
 The shipper (consignor)

The recipient (consignee)

Stakeholders in the
Carrier and agents
transport industry

The government

The public
 The shipper (consignor)
• T h e en t ir e t r an sportation p r o ces s s t ar ts w i t h a co r p oration s h i f ting i t s
i t ems f r o m a w ar eh o use t o an o t her l o cation, s u ch as d i s tributors , cl i ents ,
o r ev en an o t her w ar eh o use.

• I n a t r an s portation co n tr act, t h e co n s ignor i s t h e s en d er o f a s h i p ment.

• T h ey ar e al s o k n o w n as t h e S h i pper, b ecau se t h ey w an t t h eir g o o ds

s h i pped as s w i f tly an d s af el y as p o s s ible.

• T h i s co u ld b e d o n e b y t h e s h i pper u s i ng t h eir o w n f l eet o r b y a 3 P L

b u s iness .

• I n an y cas e, b o t h t h e s h i p per an d t h e r eci p ient w an t t h e s al e o r p u r chase

t r an saction t o b e co mp l eted.

• A t r an saction i s r eg ar ded s u cces s ful w h en al l co mmo d i ties ar e car r ied

f r o m o r i gin t o d es t ination at t h e l o w es t p o s s ible co s t an d i n t h e s h o rtest
amo u n t o f t i me.
 The recipient
(consignee)

• The receiv er of a goods shipmen t is known as the

consignee or the recipien t.

• The consignee prefers low-cost, dependable

transpo rtation that can be delivered in the lowest
amoun t of time.

• On several occasions, the for-hire transpo rtation

comp an y may tempo r arily assu me ownership of
goods and products until they are finally delivered
to the consignee.
Carrier and agents

• A carrier is a corporation that provides air, sea, or land transportation services, whereas
an agent is someone who works on another's behalf when interacting with a third party.

• Sales and purchasing agents are the most familiar to businesses.

• Carriers are responsible for carrying goods and products.

• Unlike the shipper and the recipient, carriers aim to receive the greatest feasible rate for
their services while keeping labor, fuel, and vehicle costs to a minimum.

• There are numerous ty pes of carriers, including common and contract carriers, local,
regional, or national carriers, as well as for-hire carriers.

• While larger carriers have more capacity and better equipment, smaller players provide
their shippers better, more personalized service and flexibility.
 The Government

• The Government is involved through transportation regulation

and oversight.
• When certain constraints were relaxed, the country's transport
system was opened to more competition and operational
freedom.
• The Government's engagement stems from the importance of
dependable service to economic and social well-being.
• The Government want a stable and efficient transportation
environment since it has a direct impact on economic growth.
• Even in a deregulated economy, transportation professionals
must be aware of local, regional, and national Government rules
everywhere they go on business.
The public

• The public, which comprises both individual consumers and corporations, is the final
participant in the transportation industry.

• In general, the public expects and relies on easily available transportation,

reasonable and competitive costs, security, and safety.

• By purchasing things, the public indirectly creates transportation demand.

• While lowering transportation costs is vital, environmental factors and safety are
also key considerations, as the effects are felt by the public too.
 • The container shipping supply chain (CSSC) is formed
up of several key stakeholders, including the shipper,

Container freight forwarder, shipping line, port/terminal operator,

inland carrier, and intermodal terminal/depot operator,

Shipping who collaborate to transport containerized cargo via

various modes of transport (e.g., vessels, trains, and

Supply Chain trucks) and handle the containers via various types of
handling equipment and facilities (e.g., terminals,
cranes, trailers, wagons, lifters, and dray).