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Hello and welcome back to Business English Pod for the second lesson in our series on English for Logistics.
In this lesson, we're going to focus on routing and capacity.
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Look at the labels of the items on your desk or in your home and you'll appreciate just how critical international trade is.
It's easy to take it all for granted and forget that the entire system depends on a very complex supply chain until, of course, politics gets in the way and suddenly the whole world is thinking about logistics.
Getting products and materials from point A to point B involves a lot of moving parts and a lot of important decisions.
Manufacturers' and retailers' business models depend on optimizing logistics, and central to that work is figuring out routing or the particular pathway of shipments, as well as storage and capacity.
Talking about routing requires special vocabulary related to transportation.
You will also need to talk about how cargo is handled and how it is stored or warehoused.
And in discussing these matters you'll find it useful to keep a broad perspective and be able to reject options that aren't quite right.
In today's dialogue, we'll rejoin a conversation between a production manager named Cam and a logistics manager named Anna.
Cam's company, Boston Vintage manufactures clothing in Eastern Europe for distribution in several parts of the world.
Boston Vintage is working with Anna's company, Global Freight Express, to support their complex logistics needs.
As you listen to the dialogue, try to answer the following questions.
One, why does Cam reject the regular carrier loop as an option for transporting their goods?
Two, what are some of the terms used to discuss shipping containers and capacity?
Three, what possible problems does Anna mention related to warehousing?
Good to know.
I just wanted to be sure we're aligned.
Now, let's talk about routing.
Quite a bit to cover here.
Yeah, okay.
So the regular carrier loop is Duras to Piraeus for transshipment, then onward to Newark.
But any little backlog in Piraeus could cause delays.
Ah, yeah, no, we can't afford that.
The mountain highline launches mid-April.
Delays would really screw up everything for us.
Well, in that case we could look at routing through Italy and going with one of the Mediterranean East Coast container loops.
But
If it's reliability and consistency you're after, I think we should look at overland to one of the northern European hubs like Rotterdam or Antwerp.
And that would take longer, am I right?
Sure, it adds a day or two in transit, but it improves reliability as we can get more direct sailings to Newark.
Okay, I like that.
That may be the way to go here.
But I also wanted to ask, how's container capacity looking?
Tight, but manageable.
You sure about that?
Yes.
We have a standing allocation with two major carriers, if we confirm this week.
We can secure space for full container loads.
For smaller batches, we'll use groupage to consolidate cargo.
Probably best to start with FCL for the first two shipments and switch to groupage later.
Yeah, probably best.
Also, just a heads up.
There's a short-term warehouse shortage in the region due to holiday stockpiling.
If you want a buffer, I can arrange temporary capacity.
Okay, that's good to know.
I can make a call if you like.
No, let's hold off for now.
Now that we've run through routing options...
I'd like to look at the cost side.
Tariffs, duties, the whole picture.
Yes, I know you have some concerns there.
Now let's go through the dialogue again and look at the language that Cam and Anna used to discuss routing and capacity.
We join the conversation just after they clarify responsibilities for transporting the goods.
Good to know.
I just wanted to be sure we're aligned.
Now, let's talk about routing.
Quite a bit to cover here.
Yeah, okay.
So the regular carrier loop is Duras to Piraeus for transshipment, then onward to Newark.
But any little backlog in Piraeus could cause delays.
Routing is the pathway of goods over land, by sea, and in the air.
Much of Cam and Anna's discussion will focus on ocean freight, which relies in part on regularly scheduled shipping routes with stops at major ports.
This is what Anna is referring to when she mentions the regular carrier loop.
Has stops in Durres Albania Piraeus, Greece and Newark in the United States.
Anna mentions the possibilities of delays on this route.
Let's hear how Cam reacts.
Ah, yeah, no.
We can't afford that.
The mountain highline launches mid-April.
Delays would really screw up everything for us.
Clearly Cam doesn't like the possibility of delays, especially because their company is launching or releasing a new product line soon.
So Cam is rejecting this option.
He says simply and directly, we can't afford that.
He's saying the regular carrier loop is impossible and provides some reasons.
What are some other ways we can clearly reject an option with reasons?
Let's practice some more examples.
No, this option really won't work because it will arrive too late.
I'm afraid this supplier won't work for us, as they don't meet our safety standards.
With ports being so busy right now, ocean freight is out of the question.
If the regular carrier loop isn't acceptable, then what else does Anna suggest?
Well, in that case we could look at routing through Italy and going with one of the Mediterranean East Coast container loops.
But if it's reliability and consistency you're after, I think we should look at overland to one of the northern European hubs like Rotterdam or Antwerp.
And that would take longer, am I right?
Sure, it adds a day or two in transit, but it improves reliability as we can get more direct sailings to Newark.
As you can hear, we can use the word route as both a noun and a verb.
We can choose a particular route or route goods through a certain place.
And many of those places we call hubs, which are central ports like Rotterdam, which much of the world's shipping depends on.
You'll also notice that routing always involves trade-offs.
Anna mentions that the reliability of going through northern Europe comes at the cost of more time in transit, which is how we describe goods that are moving from point to point.
Let's try some more examples of vocabulary related to the routing of shipments.
Why don't we route this through Dubai to take advantage of the connections there?
Looks like the carrier has adjusted its container loop to include additional ports in Asia.
In this case, I think going overland is the best option.
We'll bring all the cargo to our main hub in Chicago before delivering to local warehouses.
I just checked on the shipment and it looks to be in transit and scheduled to arrive tomorrow.
So what does Cam think about the idea of routing through a northern European port?
Let's listen.
Okay, I like that.
That may be the way to go here.
But I also wanted to ask, how's container capacity looking?
Tight, but manageable.
You sure about that?
Yes.
We have a standing allocation with two major carriers.
If we confirm this week, we can secure space for full container loads.
For smaller batches, we'll use groupage to consolidate cargo.
Cam likes the northern European route, but he's worried about cargo handling and capacity.
Capacity is about how much of something you can handle or contain.
In this case, he's asking about the capacity of containers, which are the large metal boxes used to transport goods by ship and truck.
Companies need to secure space or pay for capacity on these containers.
Sometimes they may fill up the whole container or have a full container load.
Other times they might have to use groupage, which is when different companies' cargo is consolidated or combined into one container.
Some manufacturers and logistics companies will have a standing allocation with certain shipping firms.
This means that they have reserved space for whenever they need it.
Let's try using some of this vocabulary related to cargo handling in some more examples.
Our standing allocation with the carrier means we've always got capacity on this route.
It looks like that freighter is filling up fast, so we'd better secure space quickly.
Any chance we can ship a bunch of smaller orders as groupage to control costs?
We'll have the cargo consolidated into one container before shipping.
Now let's get back to the dialogue. as Cam and Anna discuss a different aspect of capacity.
Probably best to start with FCL for the first two shipments and switch to groupage later.
Yeah, probably best.
Also just a heads up.
There's a short-term warehouse shortage in the region due to holiday stockpiling.
If you want a buffer, I can arrange temporary capacity.
After talking about container capacity, they are now discussing warehouse capacity.
A warehouse is a large building where materials and goods are stored before being transported or between different means of transportation.
Anna is talking about a challenge related to stockpiling, which is when companies build up a large supply of goods and materials.
Stockpiling can create a shortage of space, which means there's simply not enough to meet demand.
This is a huge challenge for manufacturers since, even if they can arrange transportation, they might not be able to arrange storage.
For this reason, sometimes companies rely on temporary capacity or short-term space for their goods.
Let's run through some more ways of using warehouse terms like temporary capacity.
The warehouse is close to the airport, so it's ideal for fast distribution.
I've heard that many manufacturers are stockpiling supplies before prices go up.
Any chance we can get some temporary capacity around the holiday season?
Unfortunately, we've got a shortage of space and employees at the warehouse.
Now let's hear the last part of the dialogue, as Cam introduces some other important aspects.
Okay, that's good to know.
I can make a call if you like.
No, let's hold off for now.
Now that we've run through routing options, I'd like to look at the cost side.
Tariffs, duties, the whole picture.
Yes, I know you have some concerns there.
We've heard them discuss routing, container capacity, and warehouse capacity.
Now at the end here, Cam is introducing the issue of cost.
In particular, he mentions tariffs and duties, which are fees that need to be paid to governments to move goods across their borders.
Obviously, these decisions are influenced by many complex factors, and we can hear Cam trying to take all these things into consideration as he discusses options.
He's taking what we call a holistic perspective, trying to think of all the factors rather than just one or two.
What are some other ways we can keep a broad perspective when discussing logistics?
Let's run through some more examples.
We really need to think of cost, timing and quality before choosing a route.
This decision needs to take all those factors into account, not just one.
It's not just about this shipment, but long-term efficiency as well.
As you can hear, there are many different considerations in moving goods and materials from one side of the world to the other.
Cam and Anna have had to work through several different options and still haven't even discussed the costs involved.
Now it's your turn to practice some of the key terms we've looked at in this lesson.
In a moment, you'll hear a series of sentences with a word replaced with a beep.
Repeat the whole sentence, including the missing word.
Pay close attention to the words before and after the beep as clues to the missing word.
For example, if you hear We run several container around the Mediterranean.
You can say, We run several container loops around the Mediterranean.
After each response, we'll provide the correct answer.
Ready?
Let's give it a go.
After four days in the, shipment finally arrived at the warehouse.
Answer after four days in transit, the shipment finally arrived at the warehouse.
During the busy season it can be hard to secure on this route.
During the busy season, it can be hard to secure space on this route.
Are there any direct from Vancouver to Singapore?
Answer.
Are there any direct sailings from Vancouver to Singapore?
We will consolidate into one container at the port.
Answer we will consolidate cargo into one container at the port.
If you need more space, we have some temporary.
If you need more space, we have some temporary capacity available.
We've reached the end of this lesson on discussing logistics.
We've learned some important terms for discussing routing, cargo handling, and warehousing.
We've also covered how to reject an option and how to take a holistic perspective.
In our next lesson, we'll take a look at the cost of transporting goods, including duties and tariffs.
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Thanks for listening, and see you again soon.
