Shipping and Logistics refer to the shipment of the product you want to ship and the process of that shipping from the point of origin to the point of destination. Here the Shipping of the product is called Shipping while the process involved in that shipping is called Logistics.
Let us understand the two terms in a more detailed manner while understanding the differences between the two terms.
What is Shipping
Shipping is the transfer of goods from one place to another. There are many types of shipping like hazmat shipping for the movement of dangerous goods, Same-day shipping is for expedited movement of goods. Although both these shipping types require different documentation, handling, arrival, and means of transportation they both require movement of goods from one place to another.
Shipping is the act of carriage of cargo from point A to point using the ships which fall under the Maritime industry.
Cargoes are carried by various types of ships all around the world.
- Oil Tankers
- Dry Bulk Carriers
- General Cargo Carriers
- Container Carriers
- Gas Carriers
- Chemical Tankers
- Offshore Vessels
- Ro-Ro ships
- Ferries/Passengers ships
Shipping includes (but is not restricted to) activities as below :
- Booking cargo for specific vessels, sometimes weeks and months in advance
- Ensuring that all cargo booked is planned on the intended vessels
- Ensure that the cargo that is planned on the vessels is actually shipped
- Ensure that the stowage planning is done properly on the vessel to optimize the vessel loading
- Ensure that all containers loaded have their VGM
- Ensure safe loading and discharging of the cargo
- Issuing bill of lading and other documentation for all cargo loaded
A typical shipping line or shipping agency office has various departments such as planning, marketing, sales, container department, vessel operations, documentation, finance, administration, procurement, etc.
Shipping also involves planning and identifying the most profitable trade routes around the world, the volume of cargo available on these routes, the number of ships that must be employed on these routes, the ports that this service must call in order to maximize business, the transit days that a ship will take for a round trip, the cost per voyage including operational costs, port costs, fuel costs, the manpower required, etc for each voyage
What is Logistics
The term logistics is said to have originated from the military and is said to have been initially used to define troop and equipment movement in the various areas of military operations..
Logistics is a part of the supply chain which consists of several smaller areas of specialization, one of which is Shipping itself. Other areas of logistics include Material Handling, Warehousing, packaging, and warehousing. Logistics involves both the integration and management of these smaller areas in order to minimize costs and improve overall operations for businesses.
An LSP (Logistics Services Provider) should have the expertise to choose the best solution for the movement of the cargo. Cargo is moved using the road, rail, air and sea and each of these modes of transport have their own peculiarities and characteristics.
Logistics involves the planning, implementation, and execution of the various aspects involving the movement of cargo such as materials, services, information, shipping, documentation, scheduling, tracking, and delivery is the main function of logistics.
The primary difference between Shipping and Logistics is the scope and scale. Logistics operates on a significantly larger scale than shipping. Despite the differences between the two, successful businesses rely on both of these areas working together in order to operate efficiently.
Here are a few more terms that you should understand clearly to get a better insight into the Shipping & Logistics industry as these terms are well connected to each other as well as to Shipping and logistics.
- Maritime Industry
Maritime Industry is anything related to the ocean, sea, ships, navigation of ships from point A to point B, seafarers, and other related activities. Maritime transportation is a derived demand whose main purpose is to support trade, business, and commerce – whether global or domestic, whether cargo or people.
2) Ocean Freight
Freight refers to Cargo that is carried by a carrier (ship, road, rail, air) in exchange for commercial gain. Ocean freight refers to the cargo that is carried using the shipping services offered by the shipping lines using the ships which fall under the Maritime industry.
3) Supply Chain
Supply Chain is the whole granddaddy process comprising all aspects in a product cycle, for example from picking a good from Point A to delivering the good to Point B using all of the above-mentioned industries.
A supply chain involves a network of suppliers, transporters, warehouses, distribution centers, shipping lines, logistics services providers all working together from the creation and sale of a product till its delivery to its customers.
Trade is the basic economic concept involving buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods and services between parties.
Global trade, also known as International Trade and World Trade is simply the import and export of goods and services across international boundaries.
Why you should start a Career in Shipping & Logistics Companies
In the shipping and logistics role, your work life will be varied and interesting. You will have the opportunity to travel worldwide, meet new people and work with different industries.
Careers at the port include passenger and cargo loading, unloading, and distribution, and port security. Positions include longshoreman, truck and ship loaders, transportation manager, shipping broker, cargo and freight agent, marine engineer, chartering manager, and fleet engineer.
The Shipping Industry offers you one of the most diverse career paths within the industry today, especially to qualified people. Since the industry is broad and global one can transfer all their educational experiences into a successful career both on and offshore with one of many large and small global shipping companies.
According to the Chartered Institute of Logistics and Transport (CILT), shipping jobs tend to be promoted from within. Therefore one can reach a management position in less than five years. The list of career opportunities on international shipping vessels is extensive.
The Bureau of Labor Statistics projects employment in shipping & logistics companies to grow 4% from the period 2019-2029-on pace with the national average.
On completion of BSc or BBA in Logistics and Shipping, you can expect a starting salary of Rs 1.5 lakh to 2.5 lakh per annum. Once you complete your MBA in shipping and logistics your salary gets even better.
The average Logistics Manager salary in the United States is $115,491 as of June 28, 2021, but the range typically falls between $102,189 and $127,863.
Employees who specialize in International Logistics can earn an average of Rs 20.6lacs, mostly ranging from Rs10 lakhs to Rs 50 lakhs. The top 10% of employees earn more than 32.1 lakhs per year while the top 1% earns more than Rs 50 lakhs per annum.
After graduating in shipping and logistics, you can apply for various sectors including supply chain, shipping, and logistics. Here are a few of the domains where you can apply in the field of shipping and logistics.
- Bulk Carrier organizations
- Freight Organizations
- Merchant Navy
- Cruise SHIP
- Road transport and haulage
- Trade Compliance
- Exhibition and project forwarding
- Administration and IT.
- Customs compliance
Job opportunities are better once you have pursued MBA in shipping and logistics. Then you can apply for various management level profiles for reputed firms like DHL Express, Global Express, Safexpress, Aggarwal Packers and movers, DTDC, etc.
Job Profiles In Shipping and Logistics
There are various job profiles where you can apply after completing your course in Shipping and logistics. Following are top profiles in the shipping and logistics companies:
- Supply Chain Analyst
- Logistics Analyst
- Customer Service
- Production Planner
- Master Scheduler
- Sales Order Planner
- Logistics Manager
- Purchasing Manager
- International Logistics Manager
- Inventory Manager
- Supply Chain Manager
- Purchasing Marine Officer
- Deck Engineer
- Marine Coordinate
Top Countries for Exploring Logistics Careers
Here is the list of countries where you can groom your career in shipping and logistics.
- Central United States
Salary Profiles in Shipping and Logistics Companies
We also have Salary profiles of the employees in the Shipping and logistics companies.
|A.P. Moller Maersk
|MBA/PGDBM Management Development Institute 2016
B.Tech/B.E. Kamla Nehru Institute of Technology 2013
|Client Servicing/Key Account Manager Business Development Marketing Management Channel Sales Sales Operations Dealer Channel Management
|HCL Technologies India
|Senior Management Consulting & Solutions
|MBA Indian School of Business Management & Administration 2014
|AGM Head/VP/GM Supply Chain Management Logistics Operations Warehouse Management Freight Forwarding
|Syntegon Technology India P.
|MBA/PGDM IIMS, Goa 2004
BBA CSM Institute of Graduate Studies 2003
|Deputy General Manager Head/VP/GM-SCM/Logistics Purchase Operations Global sourcing vendor development International logistics
|Sterling and Wilson
|Senior Management – IT
|MBA/PGDM Indian Institute of Technology (IIT), Kharagpur 2007
B.Tech/B.E. College of Engineering, Pune 2002
|Strategic Sourcing Global Procurement Spend Analysis E-procurement SAP MM SAP PS
|shell India markets p.l.
|import export incharge
|B.Sc Mumbai 2006
|export import logistics international logistics customs documentation ocean freight warehouse operations
|DHL Express India
|Network Control Manager and Project Manager
|MBA/PGDM Faculty of Management Studies, Banaras Hindu University 2015
B.Tech/B.E. GIT Jaipur, Rajasthan University 2010
|Manager-Network Control Operations Manager Operations Management Process Engineering Project Management Process Improvement
|Senior Management administration and HR
|MBA/PGDM IIMS, Goa 2011
B.A Osmania University 1990
|Head -Administration & HR Head/VP/GM-Admin General Administration Facility Management Security Management HR Administration
|Senior Manager-Techno commercial
|B. E Gujarat University 2005
B Tech Gujarat University 2005
|Senior Manager-Fleet & Resources Head/VP/GM Techno-Commercial Operations International Marketing Export Documentation Sales
|Senior Management Operations
|Master Indian institute of export and import management 2000
B.Com Mumbai University 1994
|General Manager Head/VP/GM-SCM/Logistics Import/Export Operations International Logistics Supply Chain Management Warehouse Management
|Senior Management- SCM
|MBA/PGDM Vinod Gupta School of Management, Kharagpur 2002
B.Tech/B.E. National Institute of Technology (NIT), Tiruchirappalli 1992
|Purchase management,Global sourcing,logistics management,vendor development,supplier relationship management,contract management
World’s Top Brands in Logistics that you can Join
1) United Parcel Company(UPS)
United Parcel Service is an American multinational package delivery company and a provider of supply chain management solutions. Services also include a cargo airline, a freight-based trucking operation, and retail-based packing and shipping centers. UPS employs approximately 444,000 staff with approximately 240,000 drivers with international package operations delivering to more than 220 countries. Its CEO is David P. Abney and the brand value of the company is $22bn.
2) FedEx Corporation
FedEx Corporation is a US multinational courier delivery services company with its headquarters in Memphis, Tennessee. FedEx offers a complete suite of online services for shipment preparation, package tracking, shipment rates, and tools for international shippers and small businesses. Brand value, according to Brand Finance, is $18.1bn. The CEO is Frederick W. Smith.
3) Japan Railways Group
The Japan Railways Group is more commonly known as the JR Group and consists of seven for-profit companies that took over most of the assets and operations of the government-owned Japanese National Railways in 1987. The current brand value is thought to be $11.1bn.
DHL is one of the most recognizable logistics brands across the globe, specializing in international shipping, courier services, road and rail transportation, air and ocean freight, international parcel and express mail services, and contract logistics. Founded in the US in 1969, the company had gone global by the late 70s and its current value is thought to be in the region of $10.7bn.
5) Union Pacific
Union Pacific is a freight hauling railroad that operates 8,500 locomotives consisting of 43 different models, operating over 32,100 route miles. Its system is the second biggest in the US. The company started back in 1862 when it was called the Union Pacific RailRoad and its current CEO is Lance M. Fritz. The brand value of the company is thought to be $7.8bn.
There are few other companies in India that you can join through campus interviews like GMMCO ltd., Carnival cruise line, TMC Shipping Pvt. Ltd, ITT Shipping(P) Ltd., American cruise lines, Anglo-Indian ship management, The Great eastern shipping company ltd., Bridgeview Maritime Pvt. Ltd, etc.
How to start and grow in a Shipping and logistic
Any job profile you go for will require certain skills for you to grow in your career. So is the case in the business of shipping and logistics. To become a valuable asset in a shipping and logistic company you must possess a few of these skills given below.
- Project management
- Ability to see the big picture
- Proficient in project management
- Ability to understand financial statements
- Business ethics
- Staying calm under pressure
- Cost accounting skills
- Continually seeking improvement
- Effective problem-solving skills
- Great business communication skills
- Able to manage stress
- Understanding of e-procurement and e-business systems.
- Effective problem-solving skills
- Great business communication skills
- Able to manage stress
- Understanding of e-procurement and e-business systems
- Technical understanding
- Understanding of global issues
Shipping and Logistics Courses
There are many courses available in shipping and logistics. You can check some of the courses along with their fee and duration in the table below.
|MBA in Logistics and Supply Chain
|MBA in Shipping Management
|MBA in Shipping and Logistics
|MSc in Maritime Administration and Logistics
|MSc in International Trade
|MSc in Port Management
|BBA in Logistics and Supply Chain Management
|BBA in Logistics Management
|PG Diploma in Supply Chain and Logistics Management
|MBA in International Transportation and Logistics Management
Topics Included in Shipping and Logistics Courses
Here are some of the common topics that you will come across while pursuing a course in Shipping and Logistics Management.
|Marketing in shipping and logistics
|Trends in logistics
|Techniques of operations efficiency
|Supplier Relationship Management
|International transport conventions
|Logistics and Multimodal Transport
|Risk and Insurance management
|Shipping Operations and Management
|Business Process Re-Engineering
|Documentation and clearance processes
|Warehousing and supply chain management
|Industrial relation and Labor laws
|Global Supply Chain Management
|Safe and Emergency Towing Operation
|Lean Supply Chain Management
Eligibility Criteria for Shipping and Logistics Management courses
Here are the eligibility criteria for pursuing the Undergraduate and Post Graduate courses in Shipping and Logistics.
- For Diploma, B.Sc, and BBA programs, you need to complete 10+2 from a recognized board with the minimum passing marks.
- Some of the top BBA colleges/ universities will require you to clear one of the management entrance exams and secure 45% to 50% marks in class 12 board exams for admissions.
- For MBA courses in Shipping & Logistics, candidates must have completed their graduation in any field from a recognized university or institute.
- In order to get admission in MBA Shipping and Logistics program, you will have to qualify for exams like CAT, ATMA, CMAT, MAT.
- Final admission to most of the colleges is done after the Group Discussion and Personal Interview rounds.
Colleges offering Shipping and Management Courses in India
Here is the list of colleges offering management courses in Shipping and Logistics along with the course fees.
|International Maritime Academy
|Jaipur National University
|INR 1, 57,000
|IILM Academy of Higher Learning
|Krupanidhi School of Management
|International School of Business & Media
|Bangalore College of Management Studies
|University of Technology
|Jagannath Institute of Management Sciences
|Vels Institute of Science, Technology & Advanced Studies
|Amity Business School
|Nehru Arts and Science College
|Lloyd Business School
|Aarupadai Veedu Institute of Technology
The field of Shipping and Logistics management is very vast. Once you enter the industry, you will climb up the success ladder. . With various opportunities available in the industry, shipping and logistics can be a very advantageous career option.