Chairman’s Reflection
A perfect storm seems to be brewing in the global trade scenario with increased ocean freight rates and limitations in container capacities. There are talks that freight rates might even touch the heights it reached during the pandemic era.
Rising Freight Rates
According to Xeneta, the leading ocean and air freight rate benchmarking and market analytics platform, the Far East to North Europe route saw a 30% increase from April to May. Rates from the Far East to the US West Coast rose by 29% in the same period, 214% higher than the previous year. Global spot rates for air freight have also surged. The rise in shipping rates can be attributed to fluctuating demand, port congestion, and geopolitical tensions.
The Red Sea Situation
The complexity of the situation in the Red Sea has intensified forcing cargo vessels to lengthen their journey, resulting in additional time and costs to get the cargo to its destinations. Other effects include bottlenecks in sea routes along with delays, and equipment and capacity shortages.
Moving Forward with Agility
Logistics powers global economies. However, logistics service providers face increased disruptions and uncertainties in the post-pandemic era. On the positive side, this has helped the industry to focus on risk and resilience. The current scenario demands a collective effort and strategic agility from all of us. At CSS, we are committed to overcoming these obstacles, ensuring seamless and efficient delivery for our clients and partners. By staying informed and adaptable, we can mitigate the adverse effects on our operations. We have leveraged advanced analytics and real-time data to make informed decisions, optimize routes, and manage costs effectively.
The CSS CSR Initiatives
With the start of the new academic year, it’s that time of the year when we see children carrying their school bags, packing their lunch boxes, and marching into school gates. Every year, the CSS Group gifts school bags, umbrellas, and pencil boxes to the children of the pre-primary and primary grades in schools in Kerala. We also organize a delicious lunch at the schools, wholeheartedly enjoyed by the students, teachers, and parents. As an initiative of the company’s CSR efforts, it reflects our commitment to giving back to society and fostering a nurturing environment for future generations.
Leadership Through Personal Growth
The book “The Journey of Leadership” written by four McKinsey senior partners is a must-read. It reveals why leaders must first connect with themselves. At CSS, every person is a leader. We need to embrace personal growth to inspire and empower our teams. The book throws light on the inside-out leadership journey emphasizing the importance of self-awareness, empathy, and resilience. By focusing on these qualities, we can lead our organization with authenticity and vision. This approach not only enhances our leadership capabilities but also fosters a culture of trust and collaboration within our teams, driving overall success and innovation.
In these times of unprecedented challenges and opportunities, our commitment to excellence and innovation remains unwavering. By understanding the complexities of the container crunch, adapting to the driving factors behind shipping rate surges, and cultivating a leadership style rooted in personal growth, we are well-positioned to navigate the future. Together, we will continue to deliver exceptional value to our customers and stakeholders, reinforcing our position as a leader in the logistics industry.
Thank you for your continued support and dedication.
Innovation was a key theme at the Breakbulk Futures Zone, where leading industry innovators showcased their latest products and services. The event also emphasized education, with 14 main stage sessions featuring over 52 speakers, Breakbulk Futures sessions with 13 speakers, chartering workshops mentored by the Institute of Chartered Shipbrokers, and an Education Day involving 191 students.
The Breakbulk event provided CSS with an invaluable platform to forge strategic alliances and network with global companies. It also offered a venue for discussing the latest developments and technologies in handling breakbulk and project cargo. The knowledge and experiences gained at Breakbulk Europe have empowered the CSS team to develop new ideas and create innovative solutions for future projects.
Rakesh’s success story is a testament not just to his efforts, but also to the incredible support he has received from his colleagues, customers, and mentors. He extends his heartfelt thanks to all those who have been a part of his journey at CSS. Their guidance, encouragement, and contributions to his professional development have been invaluable, and he is deeply appreciative of their role in his success.
The 2024 Neptune Cargo Network Annual Partnership Meeting in Phuket was more than just a conference; it was an enriching experience that combined professional development with the allure of a tropical paradise. Attendees left with not only new business insights and contacts but also cherished memories of their time on one of Thailand’s most beautiful islands. As the Neptune Cargo Network continues to grow and evolve, events like these play a crucial role in fostering a global community of logistics professionals. The success of the Phuket meeting sets a high benchmark for future gatherings, promising even more impactful and enjoyable experiences in the years to come. As delegates departed Phuket, they left with renewed connections, fresh insights, and the anticipation of future gatherings that will continue to build on the success of this year’s landmark event.
Thekkinkadu, shining in the light of the beautifully decorated ‘pandals’ (temporarily erected man made structure illuminated with colors and lights) and the torchlights along with the elephant’s caparison or ‘nettippattam’ lures us again into the grandeur of tradition.
I believe is blessed by the Gods & Goddesses of Thrissur to commentate Pooram for Television channels, and with this year Pooram which was celebrated on May 19th and 20th 2024 completed Nine blessed Years. I feel, am fortunate to be appointed to speak about my Thrissur Pooram for a Global audience, particularly the ‘Kudamaatom’, which is a swift and rhythmic changing of colored & sequined parasols. This is listed as one of the major events of Pooram, where both the Thiruvambady and Paramekkavu deities on caparisoned elephants meet face to face, accompanied by other elephants, and we title this moment as “Divine Durbar”.
The DWC airport expansion in Dubai South is all set to have a huge impact on the shipping and logistics industry. The expansion would include the usage of solar power and green aviation fuel. This is a huge step in reducing the environmental footprint of Dubai. Incorporating sustainable transportation in the future is the way to go ahead for shipping and logistics companies.
The expansion of the DWC airport has brought several benefits to freight forwarders. The expanded facilities of the airport can now handle a higher volume of cargo, accommodating the growing demands of the logistics industry. The infrastructure is designed to scale with future growth, ensuring long-term sustainability and adaptability. Enhanced processes and state-of-the-art technology have streamlined operations, reducing turnaround times and increasing productivity. Larger volumes and efficient processes lead to cost savings, benefiting businesses and customers alike. The unique corridor connecting rail, sea, and air networks maximizes logistical efficiency and flexibility.
The business landscape will become increasingly competitive moving forward; however, the market is poised for substantial growth, with expectations of exponential expansion. The United Arab Emirates Freight and Logistics Market is projected to be valued at 20.11 billion USD in 2024, with an anticipated increase to 30.19 billion USD by 2030.
Approximately 30 percent of global trade passes through the Red Sea via the Suez Canal, the most direct route between Europe and Southeast Asia. Heightened security risks have necessitated increased measures, prompting shipping companies to reroute vessels away from high-risk areas, thereby incurring additional costs for enhanced security. These challenges have also influenced insurance premiums for ships operating in these waters, impacting global trade.
Etihad Rail: Etihad Rail is a major project that will transform freight logistics in the UAE. Once completed, it will connect Abu Dhabi to key cities and ports across the Emirates, facilitating efficient and cost-effective transportation of goods. This rail network is expected to reduce road congestion and lower carbon emissions.
On June 1st 2024, 600 students in total from three primary schools received essential school supplies, such as school bags, umbrellas, and pencil boxes aiming to bring joy and encouragement as they start their educational journey. In addition, there also a lunch hosted for students, teachers and parents enhancing the sense of togetherness.
CSS’s journey in the Friends Super Cup was defined by collective effort. Each match showcased the team’s hard work and determination. From the very first game, the team set a high standard. What made them emerge as victorious was Safwan’s incredible penalty save. Team members like Praveen, Adul, and John further highlighted the team’s strengths. Their contributions on the field were instrumental in their success, with each player showcasing exceptional skill and a relentless drive to win. Behind the team’s on-field success was the unwavering support and encouragement from key team members who were not always in the spotlight but have been indispensable to the team’s achievements.
“With a team of seasoned professionals committed to excellence in sales, operations, coordination, and customs clearing, CSS Group’s decision to open a branch in Kenya in 2023 marks a strategic move to tap into new markets & strengthen its presence in East Africa.” The company is expanding its operations beyond the Middle East and Indian subcontinent. We have established the benchmark for excellence and efficiency in Kenya’s shipping industry. Our skilled team members illustrate our commitment to offering top-notch services, as they bring expertise and abilities to every project. LCL Import and Export Consolidations supplies warehouse and distribution facilities throughout Kenya, overseeing complex customs clearance procedures, creating effective sales campaigns, implementing efficient coordination strategies, or ensuring smooth operations. With the resources available, the CSS Kenya Team can effectively and competently handle a wide range of shipping requirements.
A surge in ship power – Get ready for a tidal wave of new ships flooding the container shipping scene as we see, like a wave crashing onto the shore. This wave follows a period of big profits for shipping companies, who spent some of their extra cash on ordering brand-new ships. The scale of this wave is huge, as the capacity of the new vessels ordered is equivalent to good of the global fleet, which stood at lower 2020. But here is the catch: this significant increase is happening just when there is a drop expected in how much stuff needs to be shipped around the world, estimated to be around 3% to 4% for both 2024 and 2025. And there is more. Notably, a lot of these new ships are mega-ships, the giants of the sea. But here is the problem: they are not very flexible at ports, which makes it harder for shipping companies to choose where to send them. While companies can try moving ships around or getting rid of older ones, the shadow of this significant increase in ability still hangs over their profits and plans.
Extreme weather conditions and their impact on shipping – This year as forecasted, which could result in extreme weather conditions affecting international shipping. For instance, low water levels caused by drought are affecting the Panama Canal, reducing its ability for fully laden vessels. Similarly, the Rhine River in Germany and the Great Lakes in the US are experiencing low water levels, posing challenges for inland navigation. These weather conditions have implications for container shipping, such as reduced volumes, changes in trade patterns, and increased pressure on alternative modes of transportation. The limited ability of waterways will also lead to a shift towards road and rail transport, resulting in higher costs and increased emissions. These extreme weather conditions are expected to continue influencing international shipping.
The changing face of global trade – In the past, Western powers dominated global trade, while the East provided raw materials and affordable goods. But times are changing. China has become the world’s manufacturing hub, with emerging players like India and ASEAN countries gaining prominence. As a result, the economic focus is shifting towards the East. Meanwhile, Europe is facing challenges with slow growth and recessionary trends, stepping back from its earlier global dominance. What does this mean for us in shipping – Get ready for increased trade with these growing markets. We will need smaller ships to adapt to these contemporary trends. Brace yourself for a transformative journey as we navigate through these changing waters, setting sail towards new opportunities in global trade!
