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CSS BAHRAIN TAKES PART IN THE PROJECT LOGISTICS ALLIANCE MEETING IN ESTONIA

CSS Bahrain took part in the Project Logistics Alliance Meeting, which was held at the Hilton Tallinn Park in Tallinn, Estonia, from the 9th to the 12th of October, 2022. At the 5th Annual Meeting of the Project Logistics Alliance, Amal Hareendran represented CSS at this prestigious event.

This year’s Project Logistics Alliance (PLA) conference had over 70 delegates from 50 companies. The platform brings together PLA network members from various countries under one roof and provides immense networking opportunities. The discussions touched upon the various projects handled by the PLA network members during the past year and the future project opportunities across the worldwide network.

Project Logistics Alliance

The Project Logistics Alliance (PLA) was founded in 2016 by industry experts around the globe to address the special demands of project freight forwarding for small and mid-sized enterprises. An independent network designed to form a global alliance of project cargo experts, the Project Logistics Alliance, connects the best people, agents, and companies in the industry in one network. PLA works with a mission to build on the expertise possessed jointly by its members, thereby focusing on maintaining high-quality service and furthering the unique knowledge required to service the project forwarding industry appropriately.

By creating a platform on which solely industry experts can communicate and collaborate, PLA aims to be the pinnacle towards which the industry aspires. Other attempts to form networks like this have encountered issues with knowledge and expertise diluting due to a lack of entry requirements. Many networks are pay-to-join with uncapped numbers on membership which may result in exceedingly high memberships of unproven quality.

The Project Logistics Alliance aims to mitigate this by enforcing strict entry barriers and qualification requirements to join. Membership applications are subject to a rigorous application process. The PLA requires applicants to demonstrate a track record of projects and prove that they are financially sound. By enforcing strict application requirements, the Project Logistics Alliance ensures its community consists of a global network of approved and qualified members. PLA membership is limited to two members per country; however, larger markets are allowed more representation to ensure sufficient coverage. The members can offer a wide range of project-logistical services.

Hareedran had a tightly packed schedule with meetings with numerous PLA network members, inlcuding Aditi Ailavajhala from Germany, Cristina Molina (AC Project & Forwarding, SL from Spain, Roberto Santarossa from FCL Argentina, George Kwakwa-Sarpong from OMA Logistics Ghana, Rok Strukelj from Centralog Croatia and Slovenia. On the second day, he had discussions with other agents, including Margus Rool from Transocean Eesti Oü, Estonia, Mustafa Özcan from Logistics Plus, Turkey, and others like Abhijeet Vikram Singh of Pt Total Movements International, Indonesia. On the last day, several strategic meetings were lined up with agents like Brett Malcolm from CEA Projects Co. Ltd, Paolo Franco from Partnerships Manager United States, Coadou Philippe of Philco International, France, and several other agents.

A perfect networking platform to build synergies

The guests kicked off the event with a cocktail reception. The next day was a long one with 1 : 1 meetings. CSS met with other PLA members across various regions during this excellently organized conference. The three days were choc-a-block with meetings with agents from across the world. CSS established relationships with PLA members of other regions to engage in project opportunities in the Middle East region and beyond

CSS OMAN OPENS NEW PREMISES IN MUSCAT

The CSS Group set foot in Oman from the year 2016. Operating under the registered name of Comprehensive Consolidated Trade and Shipping LLC in Oman, the base office is in the commercial and administrative capital city, Muscat. The company has opened a brand-new office space to conquer this burgeoning market. This is in line with the group’s growth and expansion plans. The swanky new office space is within the same complex.

CSS Oman is in its growth phase and is developing its core competency as an ocean consolidator and diversifying into a full-fledged freight forwarding and logistics provider offering complete range of freight forwarding and logistics services. Backed by a small yet focused team of 10 professionals, the vision and drive is to develop CSS Group as the best logistics company in Oman in terms of customer satisfaction, reliability, profitability and with a sustainable growth.

The Sultanate of Oman, Known as the Pearl of Arabia, simultaneously surprises with its diversity of landscape, history and culture – and encapsulates the epitome of the Arabian experience.

Sultanate of Oman is one of the prominent Arab states, located on the south-eastern edge of the Arabian Penin- sula, bordering the Arabian Sea and the Gulf of Oman at the Musandam Peninsula in the north of the country, it borders the Strait of Hormuz and the Persian Gulf. Oman shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen, and it shares maritime borders with Iran and Pakistan.

Oman covers an area of 309,500 km2, making it slightly smaller than Poland, or about twice the size of the US state of Georgia.

Today, the country has a population of 4.5 million people (in 2020), of whom 61% (2.7 million) are Omanis and rest is consisting of multinational expat community.

The Omani Economy

Gross Domestic Product (GDP) in Oman is expected to reach USD 91.02 Billion by the end of 2022, according to Trading Economics global macro models and analysts’ expectations. Oman’s GDP growth is projected to grow at 4.3 per cent in 2022 supported by increased oil production and continued recovery of non-oil economic activity.

Oman’s economic stability and modern commercial system make the county an attractive hub, especially for logistics and trade in the Middle East. The government of Oman has entered into significant international trade agreements, which have increased foreign direct investment and enhanced opportunities for small and medium businesses.

Ocean and Air Freight Volume Growth through Oman’s Sea Ports and Airports

Ocean volumes : Oman’s ports reported an increase in the volume of bulk, general and liquid cargo by 5 per cent during the first half of 2022, reaching 42.76 million tonnes, compared to 40.61 million tonnes in 2021, according to the latest data issued by the Ministry of Transport, Communi- cations and Information Technology.

The container volume through the major ports: Sohar, Salalah and Duqum collectively reported a growth of 2% in the first half of 2022 reaching 2.58 Million TEUs compared to 2.53 Million TEUs during the same period in Year 2021.

Air freight volumes : Statistics at Muscat have remained strong throughout the pandemic and the figures for the first half of 2022 show air cargo throughput 67% higher than the same period in 2021 and it has recovered around 63% of 2019 volume for the same period.

Oman is pursuing a development plan that focuses on diversification, industrialisation and privatisation, with the objective of reducing the oil sector’s contribution to GDP. His Majesty Sultan Haitham bin Tarik has endorsed the launch of the future vision.

The blueprint for the economic and social development of the Sultanate, named ‘Oman Vision 2040’, is applied from 2021 through to 2040. The key components of the govern- ment’s diversification strategy are tourism, shipping and logistics, mining, manufacturing and aquaculture.

Major Trade partners and commodities imported into and exported out of Oman:

Among the country’s major trading partners are the United Arab Emirates, China, Japan, Saudi Arabia, and India. Its trade relationship with Qatar increased significantly after 2017, when the latter came under blockade by its neigh- bours and sought new trade partners. Oman has been a member of the World Trade Organization since 2000, and it enjoys duty-free trade with the other members of the GCC and with the United States.

Crude oil, refined petroleum, and natural gas account for most exports, while imports consist mainly of machinery and transport equipment, basic manufactured goods, and foodstuffs. Exports in the nonoil front products, mainly chemicals are also on the list.

CSS Oman office address is as follows:

Comprehensive Consolidated Trade and Shipping L.L.C

P.O Box 815, Hatat Complex, Building A – 121,

Wadi Adai, Muscat, Sultanate of Oman.

Phone.: +968 2 4566 0094, Fax.: +968 2 456 6093

CSS GROUP STRATEGY MEET 2022 AT ZANZIBAR, TANZANIA ON 18, 19 NOVEMBER 2022

As we enter the 28th year of our operations, we realize that it has been a long, arduous, and relentless journey. The CSS Group has gone from strength to strength under the able leadership of our founder Chairman, Mr T. S. Kaladharan. He has carved a place of prominence in the business realm as a well renowned and respected entrepreneur in both the Middle East and Indian sub-continent. CSS has earned tremendous goodwill across the globe amongst agents, network partners, customers, financial institutions, shipping lines, airlines, customs, warehouses, professionals, employees, and other key stakeholders in the supply chain industry

KALA – THE UNCROWNED KING OF GOOD TIMES

Kala is how he is known by his people. It is undebatable that he is the uncrowned king of good times in this business. He believes in living the good life along with his entire team of professionals and employees whom he considers as an extended family.

It is in this spirit of camaraderie that this year’s Strategy Meet was organised at The Sea Cliff Resort and Spa, in the exotic destination of the island of Zanzibar in Tanzania. Almost 60 participants from all the CSS Group offices in Dubai, Abu Dhabi, Sharjah, Oman, Saudi Arabia, Qatar, Bahrain and India landed on the 17th of November at the Abeid Amani Karume International Airport in Zanzibar in their Boeing 737 max airplanes and checked into their beachside resort rooms

The evening was filled with dancing and revelry when everyone joined together with Kala’s family and brought in his birthday with cake cutting, aperitifs, scrumptious live grilled appetizers, and alfresco beachside dining along with the champagne, drinks and spirits.

Brainstorming for the Year Ahead

On 18th November, we got back to business with our COO, Ms CK, opening the meeting by inviting all participants to present succinctly prepared PowerPoint presentations within the allotted time slots.

In fact, the 7-7-7 rule of strategy was met perfectly for the Strategy Meet.

So, what are these?

The 7 steps to holding a strategy meet are:

Choose attendees
Set a date
Gather information
Establish an agenda
Moderate and listen
Take notes
Follow up

This followed by setting the 7 key elements of strategy:

Have a vision
Make a mission
Initiate SWOT analysis
Recognise core values
Define medium and long-term goals
Aim for objectives
Write down action plans

The 7 requirements to conduct a professional strategy meeting are:

Breaking the ice
Setting clear expectations from the meet
Open communication
Establishing ground rules for behaviour and conduct
Encouraging full participation
Using visual and audio methods to convey the message
Brainstorming ideas

We crossed all the checkboxes of this 7-7-7 rules thanks to the participation and contribution of each and everyone involved including the organizers, attendees, resort staff and the management.

Heads of all business verticals across products like Sea Freight, Airfreight, Warehousing, Logistics, NVOCC, Freight Forwarding, Agency Networks, New Focus Areas made brilliant and in-depth presentations. These presentations were followed by healthy brainstorming sessions, team building activities with a multi-cultural and well-experi- enced audience. The top management team discussed the points. They gave their inputs on expectations, and strategies were mutually accepted, going forward into 2023. The corporate group photo session was held at the elegant foyer of the resort.

A vote of thanks along with the new mission and vision statement of the group was presented by the Chairman and he congratulated everyone on their performance and commitment to CSS.

On the last evening in Zanzibar, we organized a beach party. Everyone had a gala time with dancing, lavish dinner, drinks, and a DJ party. The air was lived with shouts of laughter, bonhomie and merriment, the perfect way to enter the Christmas season ahead!

As they say, those who party together, stay together!

LAST MILE DELIVERY PROVIDERS IN INDIA ARE ADOPTING ELECTRONIC VEHICLES

In the last two years, last-mile delivery services have witnessed a massive change and growth. This shift has seen last-mile delivery service providers adopting electric two and three wheelers for their services. Last-mile delivery service providers can ride electric mobility for sustainable and greater business growth. Electric two wheelers in the price range of INR 80,000 to 100,000 are most famous for logistical operations and last-mile delivery. At least 80,000 electric two wheelers have been added to the country’s last-mile two wheeler delivery fleet of 450,000 – 500,000 vehicles this year, according to industry estimates.

EV makers are focusing on the B2B business segment

Much demand today in the EV segments, especially when it comes to electric two wheelers and three wheelers, is driven by the logistics market. Greaves Electric Mobility, which sells EVs under the Ampere brand, has seen a five times growth in offtake of electric two wheelers to e-commerce, logistics, and FMCG companies, its executive director and CEO Sanjay Behl said. B2B sales account for 10% of Greaves’ total sales, up 5% a year back.

Electric fleet providers such as Zypp, Electrev, Zyngo, and Yulu Bike are ramping up their capacity and increasing orders to EV makers.

Zypp Electric started operating a fleet of three wheeler trucks six months back and has about 100 vehicles now.
Electrev Mobility providing last-mile delivery services to e-commerce and FMCG companies, started with 300 EVs, and it now plans to add another 2,000 EVs to its fleet.
Zyngo has created a fleet of 1,200 EVs in a short span, and by March 2023 they plan to add another 1,800 units.

Cost-effectiveness of e-vehicles

At a time when petrol and diesel costs are sky-high, electric vehicles are continuously proving to be the alternative solution. Using electric vehicles for last-mile delivery services ensures a significantly lower operation price. “Converting to electric does not involve any costs for any e-commerce companies; in fact, it helps reduce their operating costs,” said a logistics company executive.

A leading business newspaper in India, The Economic Times reviewed the price list of Amazon, which shows the payout for EVs to be lower than that of petrol or diesel vehicles. Despite e-commerce giant Amazon shutting down various businesses, they continue to double down on converting their delivers fleet to electric. Amazon is prioritizing more orders with fleet operators that have electric vehicles in their fleet.

Over the last two years, several last-mile delivery service providers have shown interest in adopting electric mobility in India. While India is still at an early stage of adoption, electric two and three wheelers are demonstrating some tangible potential in the last-mile transportation ecosystem, said Manu Kohli, cofounder of Electrev Mobility. In FY22, the Indian EV industry witnessed a three-time growth. EV sales in the current fiscal year are expected to grow further, with last-mile logistics service providers expected to contribute more. “As our main customers push aggressively for e-vehicles, we have been increasing our procurement of e-vehicles Kohli said of Electrev Mobility.

“SAFE BERTH” OR “SAFE PORT” CLAUSE IN VESSEL CHARTER AGREEMENTS

Ensuring safety in ports and berths is one of the most important issues in maritime law. Many standard forms of time charter parties contain an express warranty of safe ports whether it’s a load port or discharge port or berth by the Charterer. The Baltime 1939 (Revised 2001) Charter Party, expressly states that “The Vessel shall be employed in lawful trades for the carriage of lawful merchandise only between safe ports or places where the Vessel can safely lie always afloat within ….”. Similarly, New York Produce Exchange Form 1946 (NYPE 1946) states that the Vessel is to be engaged in lawful trades “between safe ports and/or places”. With regard to Voyage Charter Party Agreements, the express obligation towards the port’s or berth’s safety is not always stipulated.

The most classic definition that is being used to identify a safe port (or berth) is the one given by Sellers J. in Leeds Shipping vs. Société Francaise Bunge (The Eastern City) [1958] 2 Lloyds Rep. 127, where he said “A port will not be safe unless, in the relevant period of time, the particular ship can reach it, use it and return from it without, in the absence of some abnormal occurrence, being exposed to danger which cannot be avoided by good navigation and seamanship”. This definition has become a starting point in examining the problem of safety in judicial courts and arbitration proceedings. When a claim is filed against the Charterer for nominating an unsafe port or berth, the Court examines the following which is based on the aforementioned definition.

Whether that particular ship can proceed to a port, use it, and return without being exposed to danger.
If not, whether good navigation and seamanship could have helped to avoid the danger.
If not, whether the danger stemmed from any event other than an abnormal occurrence in the port.

Particular Ship : while nominating a “Particular” port or a berth, consideration shall be given to the “particular” ship involved and the particular condition she is in. The particu- lar port or berth must be safe for the particular ship, taking into account her type, class, dimensions, features, laden or ballast, etc. The particular port or berth must be safe not only for the particular ship but also for its crew as well. During the outbreak of Covid– 19 or Ebola, many ports and berths were considered unsafe since the crews were likely to get exposed to these health hazards. The safety of the port or berth may also get affected by the season or time of the year, or even may be due to civil and political issues.

Relevant Period of Time : It indicates the entire period of time when the ship is using, staying, and returning from the port/berth. In practice, the charterer is considered liable, if an unsafe circumstance exists, at the time of the charter- er’s order, despite it being remedied prior to arrival.

Safety : Physical risks include the grounding of the ship due to rocks, bars, submerged objects, hidden wrecks, berth characteristics, etc. whereas political unsafety includes the risk of war, epidemics, terrorism, etc. and also the risk where the ship is being blacklisted or detained at a subsequent port.

Abnormal Occurrence : The charterer is not in breach if the cause of any danger is due to an abnormal occurrence. A port will therefore only be unsafe if the danger flows from its own qualities or attributes.

Good Navigation and Seamanship : The charterer shall not be liable when the danger was avoidable by ordinary good navigation and seamanship. If more than ordinary skill is required to avoid danger, then the port will not be safe.

This being said, each claim of the unsafe port dispute requires a unique analysis of the evidence that is likely to be relevant. A ship owner has his own duties and obligations in response to an order from the charterer. Any order given by a charterer directing a ship to an unsafe port is a breach of the charter party and the owner is not obliged to follow it. However, if the master reasonably obeys the order and the owner suffers loss as a consequence, it will be entitled to damages.

Chairman’s Message

Is recession in the air?

Recent reports predict that a recession is looming on the horizon. Freight labor unrest has gained global proportions and severely impacting global supply chains. The Biden government managed to broker an agreement between US freight rail companies and unions representing rail workers; to avert the first US national rail strike in 30 years. The strike would have affected millions of Americans and resulted in a USD 2 Billion loss to the American economy every day.

However, the scenario does not seem bright. We need to dig deeper into our proven playbook of success in the face of slower growth and higher inflation rates.

Growth-oriented Leadership

Interestingly, McKinsey Global Institute’s research reveals that growth-oriented leaders react decisively to disruptions that can be turned into opportunities. The leaders who choose growth; think, act, and speak differently. Their commitment to development ensures that they stay resolutely faithful to their growth vision in the face of unexpected challenges. They even turn disruptions to their advantage, which are called “timely jolts”, these disruptions can eventually build organizational resilience and agility to respond to change.

I want to draw attention to the fact that growth-oriented team members have the power to break inertia as they set to prioritize progress and advancement. It’s a choice we make, and it can shape our behavior and mindset and create a ripple effect across the entire organization.

We should rely on scenario planning and prepare a set of long-term moves to help us thrive in a tight environment. Research reveals that a strong sustainability strategy can accelerate growth by creating value in a slowing economy. As we plan for the future, let’s adjust our business goals to capture segments with green growth potential.

A Target Story

Existing businesses have achieved impressive growth during recessions of the past. USbased retailer Target is one such example. In 2000, Target strengthened its investments by adding new locations, products, and partnerships. This led to double-digit growth in both sales and profits. In 2008, Target added more fresh meat and produced in its food category after analyzing customer trends. Since then, the food category has generated billions in the company’s annual revenue. The pandemic times were also a windfall season for Target. The company boosted its online services, accelerating its ability to use stores as distribution centers and enabling online-order pickups from their parking lots.

Modern yet Traditional

Let’s work on building greater organizational cohesion and resilience to weather the storms ahead of us. With more than 25 years of experience in the logistics arena, let’s remember to keep our feet rooted in our traditions as we straddle to conquer the future. Our feet are firmly planted as we evolve and change to keep up with the times. The foot on the floor is kept firm for the other that takes the step forward. At CSS, we are modern yet traditional at the same time.

As we end 2022, I thank our network partners for their continuous backing. I also want to thank our valuable customers, bankers, and business associates who have enabled us to come thus far.

Last but not least, I want to thank every member of Team CSS, you are the heroes of the CSS growth story and should continue to steer us towards success.

I want to end with a quote from the famous American psychologist Abraham Maslow, “One can choose to go back toward safety or forward toward growth. Growth must be chosen again and again; fear must be overcome again and again.”

CSS CELEBRATES ONAM 2022 WITH MUCH APLOMB AND GAIETY

It was that time of the year again, with strains of “Onam Vannallo” resounding in the air! The Malayalam phrase, Onam Vannallo, translates to Onam has come. The biggest festival of the state of Kerala, Onam, is the harvest festival celebrated with joy and enthusiasm by Malayali and the worldwide Malayali diaspora. This year, Thiruvonam, and most important day during the Onam festival, was celebrated on 8th September.

An Auspicious Beginning

On 9th September 2022, Onam was celebrated at the CSS HQ and CSLC. On Friday afternoon, the celebrations sparked off at 3.00 pm. It gathered momentum and gaiety and lasted till 5 pm. The festivities b e g a n w i t h Mr. T S Kaladharan, Chairman of CSS Group, lighting the lamp as an auspicious sign to start the Onam festivities this year.

All the women adorned the traditional cream and gold sarees, and the men dressed in coordinated black mundu (dhoti) and floral shirts. The celebrations took off on the “Chenda melam” (drum beats), and several staff members got into the groove by dancing in step with the reverberating beats of the chenda.

The Pookalam or the Floral Carpet

Traditionally, on Thiruvonam day, an elaborate Pookalam or a rangoli with flowers is made from every house in Kerala. The Onam pookalam designs are intricate patterns filled with various colored flowers that are a sight to behold. This year also, there was a Pookalam competition here at CSS. Team members got together to design, assort and lay the pookalam. The Pookalam (flower carpet) competitions saw an explosion of creativity and of the vibrant colors of the flowers.

Onam Games Bring in Unity and Fun

Back in Kerala, families and friends get together during the Onam time and engage in traditional games and activities such as Vallam Kali (boat race), Pulikali, Onathappan, Thumbi Thullal, and Onapottan, to name a few. Taking a cue from this, many competitions were held to mark the celebrations. Some competitions were the lemon and spoon race,uriyadi, and musical chairs. The enthusiasm and vigor with which everyone participated were quite remarkable. Unlike the previous year, many competitions and games added to the jovial spirit. The most anticipated of all competitions was the tug of war. After a fierce battle of muscles, the team from CSS HQ won the match.

The Myth of Mahabali

Mahabali, a mythical king who once ruled Kerala, is believed to visit his people on the day of Onam. No Onam celebration is complete without King Mahabali. Siva Subramanian from the Administration department was the cameo as King Mahabali. His regal presence, dressed in royal garb, added splendor to the Onam celebrations.

The scrumptious Onam sadhya is the main highlight of every Onam celebration. This traditional Kerala meal, essentially vegetarian, served on a banana leaf, has two to three dozen dishes. For the festivities this year, a parcelled “Sadhya” was distributed.

Chandra Kala, Sasi Kala, Krishna Kaladharan, Alan Ramesh, and Unni Krishnan from the Accounts department, and Jayandan & Suresh from CFS were the key coordinators for these celebrations. The planning and organization of the event were impeccable, making it a fun day for all. All the staff enjoyed the fun and celebrations of the Onam festival as it brings people cutting across all differences.

Onam symbolizes the end of the monsoon season and a renewed spring season. This is the second year Onam was celebrated at CSS with traditional fervor, get-togethers, and plenty of merrymaking. The festival marks a communion of everyone irrespective of age, caste, or creed. The spirit of Onam is universal, and may this spirit of unity continue to reign in CSS.

LAUNCH OF NATIONAL LOGISTICS POLICY IN INDIA

The much-awaited launch of the National Logistics Policy by the Indian government has been hailed by India Inc, particularly by the logistics industry. Launched on 17 September, it is a framework that caters to all the key stakeholders in the logistics sector across the country. While launching the policy, Prime Minister Narendra Modi said, “From 13 to 14% logistics cost, we should all aim to bring it to single-digit as soon as possible. This is a low-hanging fruit if we have to become globally competitive.”

The PM further asserted that the PM Gati Shakti National Master Plan would support the National Logistics Policy. Mr. Modi announced the PM Gati Shakti program in October 2021. Under this program, a portal would be set up to bring 16 Ministries together for integrated planning and implementation of infrastructure connectivity projects. Prime Minister Modi had urged State governments and the private sector to adopt the Gati Shakti portal to plan infrastructure projects and develop special economic zones.

Benefits of the New Framework

This new framework enables streamlining processes for seamless coordination, resulting in reduced overall logistics costs. There will also be a surge in employment generation and workforce skilling. The government has stated that the Unified Logistics Platform, ULIP, will bring all digital services related to transportation under a single portal, freeing the exporters of long and cumbersome processes. The E-logistics service-elogs also allow the industry associations to take up issues faced in their operations with the government. Industry observers say that this will lead to increased efficiency across supply chains and boost employment. With the introduction of logistics and supply chain courses for students, manpower issues will also be solved.

Ushering a Major Shift in Logistics Sector

The new policy will bring about a modal shift in logistics as it is a giant leap forward for the country’s logistics sector. Industry experts like Vineet Agarwal, MD, Transport Corporation of India, believe that multimodal transportation and modern connectivity will shift the stress from roads to other modes of transport. Others say this will further increase warehousing capacity and take products closer to the consumption points. There are various new measures in the policy adopted by the government, pushing towards increased technology adoption, like:

Paperless EXIM trade process through e-sanchit
Faceless assessment for customs
Provision for E-way bills
FASTag etc.

of 2018, India ranks 44 in logistics costs. The government’s latest policy comes with a Comprehensive Action Logistics Plan, CLAP, which includes reducing India’s logistics costs, aiming to be among the top 25 countries by 2030 in the Logistics Performance Index, PLI.

Reduction in Logistics Costs

Union Minister Nitin Gadkari said there is a need to reduce logistics costs in the country, which are higher than that of China, the US, and other European countries. The plan is to make waterways a popular transport mode for passengers and goods. This will eventually cut the import cost of petrol and diesel.

“Our priority is waterways, second railways, third road, and aviation. Bringing down logistics costs will help generate employment in the country,” he said at a program by Young Indians and the Institute of Chartered Accountants of India.

“There is a need to connect rail and road transport with the waterways,” reiterated Mr. Gadkari. He suggested the use of more sustainable fuels like biodiesel and bio CNG. According to him, the government is keen to make a corruption-free system, which will help in Fastrack decision making.

Modernizing The Support System

With global experts viewing India as an emerging democratic superpower, the policy will bolster the logistics sector. The Prime Minister further stated during the unveiling of this new policy that:

Capacity of ports has increased, and the container vessel turnaround time has been cut to 26 hours
The Sagarmala project will connect ports and dedicated freight corridors, improving logistics connectivity and system infrastructure development.
India is now the world’s fifth largest economy, emerging as a manufacturing hub.
The world has accepted the productionlinked incentive, PLI, announced by the government for boosting domestic manufacturing.

Overall, this policy will streamline rules, address supply-side restrictions, reduce fuel costs, and lower logistics costs. Although the draft policy was released in 2019, it was delayed by the Covid pandemic. This will provide a single reference point for all logistics and trade facilitation matters.

EMPLOYEES OF THE MONTH

ANANDU PRAKASH

Tally Clerk – Operations CKL Saif Zone awarded by Ranoop Kallampunathil – warehouse incharge

ANIMON KARUNAKARA PANICKER

Customs Documentation Executive CSLC awarded by Ambili Don – Senior Manager -Operations

ELIAS RAJU

Sales Coordinator – Customer servoce, Twin Info Solutions awarded by Sajith S Pillai – Team Leader, Forwarding Sales

IS 2023 HEADED FOR A RECESSION? GET TO KNOW IF IT WILL AFFECT YOU

The economy is been pretty unpredictable post the pandemic. For this very reason, we do not know for sure if we are headed for a recession in the year 2023. Presently economists from the Federal National Mortgage Association familiarly called Fannie Mae are predicting a recession to start in early 2023. The expectations for these figures to have been arrived at are as a result of economic growth of 1.2% in 2022 all set to fall at 0.1% in 2023. Analysts estimate economic growth in 2023 to be around 0.1% whilst others are predicting a growth rate of -0.4%.

This means that investors can still make money in a recession but at a difficult stance. Though this mixed economic data has shown two consecutive quarters of negative economic growth, the National Bureau of Economic Research NBER has yet to confirm if we are in recession territory as of now. This doubt still lingers due to the exhibited consumer confidence that has remained pretty resilient over recent months as the labor market has been strong.

The Pasta Bowl Recession

With all the continuous speculation of whether or not a recession is up ahead, a new term has been coined namely “the pasta bowl recession”. Like the name, it is to represent a recession that may be quite long but shallow like a pasta bowl. The US economy contracted 3.4% in 2020, 2.6% in 2009, 1.8% in 1982. The International Monetary Fund is projecting continued economic growth for the US through 2022 and into 2023.

Though the economists at the IMF are expecting GDP growth to slow they are projecting an overall increase of 2.3% in 2022 and a 1% increase in 2023. With these numbers, they are expecting the US economy to narrowly avoid a recession which is good news for investors and workers. With both these economists stating that 2023 is expected to be a slower year for economic growth compared to 2022, there is no big button that gets pressed and no immediate impact on regular people. Whether economic growth is 0.2% or -0.2% it won’t present much of a difference in daily life. But yet again that means that careful decisions around money need to be taken and how you need to continue to grow in the challenging background.

The Strength of Artificial Intelligence Amidst the Challenges

Investing in a bullish market makes more sense as the investors can get away with a less than optimal investing strategy as the overall market trend can drag up many stocks that do not warrant a rise in their price. But that’s so not the case in a bear market or a flat market. It is a tough economy where the predictions are hard. There is too much information to consider and different interpretations that it is not easy to cut through the noise. Humans learn out of the experience so much that they have an in-built bias that is very hard to counteract. We tend to remember certain things that impacted us and we put weight on them even if they are not relevant. For example, the odds of being struck by lightning are about one in a million. It is a very rare event and not even worth considering. But if you have been hit by lightning before, it will probably play in your mind in the future.

In such a case, Artificial Intelligence (AI) acts differently. An algorithm process millions of data points in a second, assess them, and make projections with zero emotion involved. It’s one of the reasons Q.ai started to make cutting-edge trading technology available to everyone. Q.ai is an AI-powered investment strategy wherein when you deposit $100 an additional amount of $100 is added on. It was created with the intention that you can implement sophisticated and fast-acting strategies that can react to the market conditions and predict the future alongside.

Getting Positive from An Investor’s Perspective

An expected recession means an open market for opportunities as long as you know where to look. During periods of low or no economic growth, large companies outperform small ones. This is primarily because they have diversified revenue streams, a better customer base, and a more predictable supply chain.

Smaller companies tend to struggle as it gets challenging for them to continue at a pace they were following initially. And in the case of companies that aren’t generating profits, a drop in revenue can be tough to get through. In such a case the Large Cap kit makes sense.

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RAILROAD STRIKE 2022, U.S.A

The rail network carries about 28% of U.S. freight and is second only to trucking, which carries about 40% of freight, according to government data. Railroads are a lifeline for bulk commodities. Freight capacity is already tight across the U.S., and experts say airplanes, trucks, and barges can absorb only a small portion of the big volumes moving by rail if railway workers strike. A potential railroad worker strike could have cost the U.S. economy $2 billion every day.

With rail unions making clear that their workers were prepared to walk off the job, the pressure was building on freight carriers to avoid an economically devastating strike that was set to inflict financial pain on them as well as businesses, farmers, and consumers by crippling the movement of many critical goods. A walkout “could have quickly impacted supplies for fall application and led to a reduction in U.S. production when 70% of European production has been curtailed or ceased due to Russia’s shut-off of natural gas supplies,” Mr. Rosenbusch said.

How The Industries Braced Up for The Potential Railway Strike and its Impacts

Companies from food suppliers in the Midwest to retail importers across the U.S.

Braced for a potential national rail strike by seeking alternative transport to keep their supply chains running.

Bulk commodities such as ethanol and coal: A biofuel shortage could increase gas prices. Alternative sources of transportation needed to be sorted for these, said Debnil Chowdhury, vice president of refining and marketing at S&P Global Commodity Insights.

Transporting of hazardous materials: In anticipation of a strike, transportation of all hazardous material were placed a week before the strike. Any further restriction could have profoundly impacted the industry’s ability to deliver critical energy supplies.

Manufacturers of food, beverages, and healthcare products: These manufacturers were seeking assurances from logistics operators whether they can switch from rail to trucks in the event of a strike, said Tim Humbert, vice president of North American intermodal at C.H. Robinson Worldwide Inc.

Farmers and crops: Corn and Soybeans were at their peak harvest time. U.S. railroads hauled more than 18,000 carloads of grains before the strike, according to the Association of American Railroads. Potential delay of Soyabean to a hog farm in China would have pushed overseas buyers towards other countries, said Peter Friedmann, Executive Director of the Agriculture Transportation Coalition, a Washington, D.C.-based association representing farming interests in shipping. The strike would have crippled U.S. agricultural production and supply chains and exacerbated food price inflation.

Hazardous cargoes: Some railroads were already accepting these cargoes to ensure dangerous chemicals weren’t stranded in unsecured locations in the event of a strike. Cargoes like ammonia are used in fertilizer, and chlorine is used in water treatment, etc. The fear among several groups representing the water sector was that if freight rail service for chlorine does not return to normal, communities would be unable to produce safe drinking water, resulting in many boil water advisories and the threat of waterborne disease outbreaks.

Railroad Strike Impacts on Other Modes of Freight

In the U.S, freight capacity is already tight across the country, and airplanes, trucks, and barges can bear only a small portion of the big volumes that move by rail.

Trucking sector

This could have triggered delays in getting goods from warehouses to some stores
Trucking sector is the biggest single customer group for U.S railroads and funnels tens of thousands of loads each week into intermodal rail networks. “The volume freight shippers would try to move and would overwhelm all trucking sectors,” said Dean Croke, an analyst at DAT Solutions LLC.

Sea Freight sector

This last year seaports have coped with big volumes of containers. They were prepared for a build-up if rail service halts and would have to create space to store boxes at cargo-handling yards and off-dock depots.
Outside the ports, many logistics facilities remain swamped by the flood of imports.

Craig Grossgart, senior vice president of global ocean for freight forwarder Seko Logistics, said his firm’s 3.5 million square feet of warehouse space near the ports of Los Angeles and Long Beach, Calif., is so full it couldn’t cope with a surge in new cargo.

Congress intervenes in the railroad strike 2022

of railroad union workers, were holding out on a deal until policies on attendance, vacation, and sick days were addressed. The unions claim members are getting fired for missing work due to illness and doctor visits. The deadline was on Friday September 16 at 12:01 a.m., two unions were going to walk out at an impasse over a new labor contract. Labor Secretary Marty Walsh took all efforts to avert a strike. Wall Street analysts had predicted that any walkout wouldn’t last long because they expected Congress to order rail workers to return to their jobs, as lawmakers have done in earlier strikes. Last month itself, President Joe Biden appointed a Presidential Emergency Board to help negotiate a compromise.

Freight rail companies and unions representing tens of thousands of workers reached a tentative agreement to avoid what would have been an economically damaging strike, a relief for businesses and consumers.

The breakthrough on Thursday morning (September 15)came just hours before a critical deadline that would have allowed workers to strike and had already begun affecting rail service across the United States.

US PORTS ARE STILL STRUGGLING

US ports are having productivity issues due to congestion, even as container volume from China is lower than usual. More cargo has been moved away from the U.S. west coast because of an increase in container vessels anchored off Savannah and Houston. Meanwhile, East and Gulf coast warehousing is a big beneficiary, where many container volumes are pushing up prices.

Crisis Faced by the U.S. and Canadian Ports

According to earlier CNBC reports, ocean carriers have a cut in vessel services due to the congestion at the U.S. and Canadian ports. The latest report shows that it is not receding. “It comes as no surprise ocean carriers are blanking (canceling) sailings,” said Alan Baer, CEO of OL USA. “It needs to be done to regain some sort of schedule reliability.” The outcome is that all these vessels will not be in a position for the return voyage, moving containers, loading U.S. exports, and, finally, will only load imports.

“A lot of this was the result of moving freight away from USWC arrivals due to labor disruption risk,” Baer said. According to Captain Adil Ashiq, United States Western Region executive, more complications from the East Coast ports are anticipated due to the strike at Felixstowe. “This means holiday goods could end up reaching shelves closer to the start of the holiday season — it may be prudent to seek alternative modes of transport, if possible,” Ashiq said.

Shift Of Freight

Ocean carriers, most recently MSC, have been announcing modifications to their vessel schedule due to port congestion. In July, East Coast congestion was impacting the arrival of vessels back to the Port of Shenzhen for reloading. The warehousing costs are increasing fast on the East Coast, a consequence of the increase in the vessels, Jordan Brunk, CMO of WarehouseQuote, reported. He added, “We are seeing a shift of freight traditionally held on the West Coast now moving to the Northeast and Southwest.” As a result, there is a decrease in the pricing on the West Coast.

A pullback on Manufacturing Orders and Ocean Bookings

There is a decrease in container bookings due to the pullback in manufacturing orders and all the congestion at the ports is skewing it.

“As booking levels, which indicate future import volumes, continue their descent, peak season demand on the ocean looks muted,” Mulvey said. “Softer demand on the ocean leads carriers to increase the number of blank sailings to slow the rapid decline in Trans-Pacific spot rates.” According to OrientStar Group, currently, space is open for all lanes, and more bookings with freight adjustments weekly and some daily, are being pushed by ocean carriers.

Impact Of Strike at German Ports And Felixstowe

China to West Coast Ocean freight rates is down to 6%, and China to the East Coast is down by 3%, tracked by Freightos. The strike at Felixstowe and the previous labor strife in Germany have led to massive port congestion resulting in the freight rates going up from Europe to North America and China to Europe.

It will take the first quarter of 2023 for the congestion to be eased, reported Crane. Those who have the information about the German deal state that it will take two weeks for the union to announce its final decision. The union negotiation committee has approved the deal for a retroactive pay increase of 9.4%, followed by 4.4%. There is a trade slowdown of $4.7 billion due to the current strike at Felixstowe.

“If the strike action goes for the full eight days or longer, massive delays will be seen across the U.K., with spillover effects into the E.U. as containers get diverted to other ports such as Rotterdam or Le Havre. Moreover, many U.K. and E.U. ports are already experiencing maximum capacity volumes, so their ability to handle even more may be limited,” Brazil said.

The strike will impact significant companies that use the port at Felixstowe to transport their goods. It will also harm the U.S. companies and industries that export to the U.K. If the pay demand is not met, the port disruption could last until Christmas, union Unite has warned. Sources say that if the request is approved, there will be no more strikes till March 2024.

FREIGHT FORWARDER NOT LIABLE FOR THE LOSS DUE TO THE THEFT OF CARGO BY EMPLOYEE: SUPREME COURT OF APPEAL OF SOUTH AFRICA

A recent judgment by the Hon’ble Supreme Court of Appeal of South Africa, in an Appeal named Schenker South Africa (Pty) Limited vs. Fujitsu Services Core (Pty) Limited (508 of 2020) [2022] ZASCA 7 (18 January 2022), overturned the Judgment of the High Court of South Africa and pronounced that the Freight Forwarder is not liable for the loss due to the theft of Cargo by Employee for various reasons.

In the said case filed by Fujitsu Services Core (Pty) Limited against Schenker South Africa (Pty) Limited before the Hon’ble High Court of South Africa, the claimant Fujitsu imported a consignment of laptops and accessories from its affiliate company in Germany to the value of $516,887/- and engaged the services of Schenker South Africa (Pty) Limited to assist with the logistics, freight forwarding, warehousing and clearing of the consignment. Thus the scope of services by Schenker included receiving the consignment from the Carrier; delivering them by road to Fujitsu after performing the necessary customs clearance and other logistical services. Once the consignment arrived in the storage at the South African Airways Cargo Warehouse and was ready to be delivered to Fujitsu, Schenker issued necessary documentation to its drawing clerk, one Mr. Wilfred Lerama, authorizing him to collect and deliver the Cargo to Fujitsu. On 23rd June 2012, Mr. Lerama arrived at the warehouse to collect the laptops on behalf of Schenker and Fujitsu. The consignment was then loaded onto his truck, which was “not marked with the Schenker Branding,” and drove off, never to be seen again. Consequently, Fujitsu filed a claim for damages against Schenker in relation to the theft of its consignment.

In the said case, even though the High Court pronounced its Judgment holding the Freight Forwarder, Schenker, liable on the grounds of Vicarious Liability (Holding liable for the fraudulent act by its Employee) and on the terms and conditions of the National Distribution Agreement entered into between both the Parties, the Hon’ble Supreme Court of Appeal, dismissed the Judgment of High Court. The Supreme Court of Appeal, while interpreting Clause 17, titled “Exemption Clause” of the said Agreement, determined that Schenker had been “handling or dealing” with the Cargo at the time of the theft, as contemplated by the Exemption Clause and was therefore executing the contract. The exemption clause 17 of the National Distribution Agreement reads, “Except, under special arrangements previously made in writing, the Company (Schenker) will not accept or deal with bullion, coins, precious stones, jewelry, valuables, antiques, pictures, human remains, livestock or plants. Should Customer (Fujitsu) nevertheless deliver such goods to Company or case Company to handle or deal with any such goods, otherwise than under special arrangements previously made in writing, Company shall incur no liability whatsoever in respect of such goods, and in particular, shall incur no liability in respect of its negligent acts or omissions in respect of such goods….”. The Supreme Court of Appeal further observed that if Fujitsu had informed it that the Cargo was valuable, it could have reduced the risk by taking appropriate steps, including but not limited to employing security guards or taking out fidelity insurance.

The difference of opinion, observation, and comments by both the High Court and the Supreme Court of Appeal, though, has raised a concern among the Parties from various industries, who are now being advised about the importance of careful drafting of the contractual terms and the difficulty in recovering the stolen goods, however, has allowed the Freight Forwarders to breathe a sigh of relief.

Even if there are few circumstances where the Court declares the Freight Forwarder not liable for the loss or damage to the consignment or any other claims against them, different Courts of different jurisdictions consider various factors depending on which role they assume when agreeing to make the shipping arrangements. In any case, experts advise the Parties who engage as Freight Forwarders to take a Freight Forwarder’s Liability Insurance Policy with any reputed insurance company so that they would get the required assistance to deal with the claims as appropriate.

Chairman’s Message

Supply chains and logistic companies like ours are not new to digital transformation. When the pandemic hit us, we quickly adopted digitization to enable our teams’ remote working, ensuring business continuity in the midst of the lockdowns.

Logistics in the Metaverse and Web3

In October 2021, Facebook rebranded itself as Meta. The Metaverse is a digital 3D universe that creates a digital space that is then translated into the physical world. It is considered the next big step in the future of digital interaction. It has become a popular trend pursued by several organizations, not just by Facebook alone. At the Intersec conference held in Dubai early this year, the experts said that the Metaverse also shows a demand for jobs, which is definitely portending a future digital economy.
This also means that the Metaverse can affect how supply chains operate. It will enhance collaboration across all supply chain tiers, both internally and externally. This environment will also help create better warehouse designs as it can be simulated, experienced, and improved in the Metaverse before the physical build, saving money and time from concept to reality.
Web3 is another revolutionary concept in which platforms and data are owned by the people who build and use them. Considered to be the next iteration of the internet, supply chain and logistics start-ups are built on decentralized ledgers with a backbone of cryptocurrencies. These solutions can help manage and track the shipment of anything worldwide.

CSS -The Technology Adopters

Reuters Events surveyed 488 logistics and supply chain professionals worldwide between January and February 2022 in partnership with CargoWise. In the survey report titled Global logistics: The link between technology and productivity, the key takeaway is that technology is essential to unlocking consistent productivity gains for logistics providers. At CSS, we have always been at the forefront of adopting robust digital infrastructural facilities so that we can deliver on customer demands and respond quickly to change.

Disruptive Thinking

We need to adopt disruptive thinking to succeed in an increasingly uncertain business landscape. It means thinking differently or a way that challenges the usual way of doing things. The architect of the disruption theory, Clayton M. Christensen, explains, “Disruption describes a process whereby a smaller company with fewer resources can successfully challenge established incumbent businesses.”

India Staff Meet at New Delhi

We had a great time at the India Staff Meet, which was held on 31st July 2022 at ‘The Umrao’, a much sought-after luxury hotel in the National Capital Region (NCR) of New Delhi. It was a night of grand festivities and a time of honoring the stupendous efforts of the CSS India team.
Many breakthrough technologies will emerge and evolve in the days ahead. We are at the birthing stages of new tech like the Metaverse and Web3. Team CSS has always been one step ahead of the others in the industry. As we adopt a disruptive mentality, it will help us provide valuable offerings to our customers. Let us be future-ready to go beyond physical workplaces to envision a future with virtual working environments.
This has made me think that even our future staff meetings might be on the Metaverse!

CSS INDIA STAFF MEET IN DELHI

The CSS India Staff Meet was held on 31st July 2022 at ‘The Umrao’, a much sought-after luxury hotel in the National Capital Region (NCR) of New Delhi. The CSS Group Chairman Mr. T S Kaladharan and the CSS Management threw a scintillating cocktail party and DJ night to rebuild the connections that were restricted due to the pandemic-induced constraints over the past two years.
The party was well attended by CSS team members from every CSS office across the Indian subcontinent. Mr. Fida Asghar represented the Dubai office, while Mr. Rahat came with a strong contingent of 14 employees from the CSS Mumbai branch. From the South, Mr. Vishwanath represented the Coimbatore and Tirupur offices, while Mr. Jitendra & Mr. Sathiya Narayanan came from the Chennai wing. There was also Mr. Sudeep and Mr. Jinu from our Kochi Office, while Mr. Naveen represented the Bangalore branch. Mr. Anirban was representing the Kolkata office from the eastern part of the country. Since the meeting was held in Delhi, the entire team attended the party from our Delhi and Ludhiana offices.

An Exhilarating Night of Celebrations, Joy, and Laughter

The party was organized at ‘The Umrao’, one of the most sought-after venues, CSS always ensures that our team gets nothing but the best, the poolside party kicked off with the DJ’s foot-tapping numbers that set the mood for the night. The dancing session was followed by a sumptuous dinner and spirits that brought mirth and revelry to the event. The CSS India staff made most of the night as they enjoyed every moment of the party.
Fida entertained the audience with witty and rib-tickling jokes, roaring with laughter throughout the night. Mr. Rahat had everyone spellbound with his remarkable dialogues filled with witticisms and anecdotes. The party’s highlight was the melodious voice of Mr. Pramod Dubey from the Ludhiana office, who revealed timeless hits and Bollywood songs to the audience.

Welcoming the New Additions to Team CSS

We also took the opportunity to introduce our new joiners to the CSS team. We also remembered our revered colleague Mr. Rinku, whom we have lost due to Covid. His wife, now part of the CSS Team, was introduced to our guests.

Awards and Felicitations

Our Honourable Chairman, Mr. T.S Kaladharan, also felicitated the company’s outstanding employees by giving mementos to them. He also felicitated the respective vertical heads, Mr. Rahat, Mr. Rajeev, Mr. Jinu, Mr. Sudeep, and Mr. Vishwanath, with signature gifts.
The Chairman also gave rewards to Mr. Sanjay Dutt and Mr. Ajay Kumar from the Delhi office. They were the two outstanding dancers who set the floor on fire with their unique steps and moves.
Mr T S Kaladharan and Mr. Fida praised and felicitated Ms. Nishu Jain from the event management company The Impresario for meticulously planning and conducting the whole event without any glitches.

Connections are the Key to the CSS Success Story

At CSS, our Chairman, TS Kaladharan, has always been at the forefront of nurturing connections between team members. Even though CSS operates with teams across multiple geographical boundaries, it is important for the teams to be connected no matter where they are. Mr. Kaladharan has always encouraged building a rapport between team members. He believes that along with recognition and rewards, these connections go beyond the celebrations. The company will gain intangible rewards that reap benefits that even affect the company’s bottom lines.
Here’s to more celebrations and new connections!

AIRCRAFT ENGINE MOVEMENT COMPLETED BY CSS KINGSTON

Over the last few years, CSS has set an enviable track record in air shipments of large equipment, luxury cars and bikes. CSS Kingston Logistics, Ras Al Khaimah recently had the opportunity to undertake the movement of an aircraft engine all the way to Antwerp, Belgium from Jebel Ali. The Air Craft Engine was shipped on a HAPAG LLOYD on a 40 feet flat rack.

CSS Kingston Logistics, Ras Al Khaimah

CSS Kingston Logistics’ Ras Al Khaimah branch started it operations in the midst of the pandemic in August 2021. With the backing from our leading networks and global partners, the division soon emerged as a trusted and reliable logistics partner catering especially to the northern Emirates of UAE. The branch has specialized in 3PL services and offers reliable cargo movement to LCL hubs. CSS Kingston also offers documentation, storage and logistics, all under one roof. Above all, it has a dedicated team of professional manpower who are willing to go the extra mile till the project is completed. Team CSS Kingston has been providing exceptional tailor-made solutions to meet the specialized client requirements.
The shipment of the aircraft engine was undertaken on 13 June 2022. It had to be delivered securely all the way at Antwerp, Belgium. Our clients had entrusted this highly costly and sensitive cargo in our safe hands!

Aircraft Parts Transportation

In the world of aviation, even seemingly small aircraft parts can cost a lot of money, making their transportation both risky and costly. Aircraft parts transportation needs special handling and immediate response. Aircraft engines are highly valuable with highly sensitive components. Therefore, adequate safety precautions need to be taken when transporting them. Keeping this in mind, safety was our priority.
Partnering with experts with specialist knowledge was the key. For shipping the aircraft engine, a dedicated vehicle with a large capacity was required to secure the cargo. With this type of high-value shipment, the question is not how much it will cost or how long it will take, but rather trustworthy partners who will be fully committed to the project till its delivery. We collaborated with experts, trusted shippers to provide services that comply with all the safety regulations to ensure that the parts arrived as intended.

A Transcontinental Shipment

Apart from all this, the shipment delivery location was in Belgium, Europe. This required cross-channel logistics support combined with inventive thinking and innovative strategy. The operations team closely aligned with the manufacturer’s guidelines to safeguard the integrity of the engine throughout the entire transportation process. The result was a secure transport solution with minimal hassles and maximum attention to detail.
CSS carried out this specialized operation for this cargo along with expert freight carriers and a dedicated team of logistic experts. We successfully delivered the aircraft engine securely and intact at the client’s location in Belgium. It was indeed a mammoth operation; at the end of the day right combination of top technology, expert human resource inputs and experience got the job “well done”. We completed movement with minimal loading time and maximum attention to detail.

PROJECT AT A GLANCE

The Water Treatment Package embarked on its journey to KSA from Kuwait , CSS Industrial Project Team moved this beautiful piece of Over Dimension Heavy cargo weighing 96 tons with dimensions of ( L26.19m x W5.34m H6.07m) which posed the main challenge for the move of city and port approach roads.

This OOG unit movement was facilitated with precise planning of CSS in co-ordination with our sub contractors after removal of overhead signboards / gantries en-route to port and the move was enabled under close coordination with Police for permission and escort. The move was accompanied by CSS private escorts / boots on ground supervision and delivery was made under the hook of the vessel at Shuaiba port using suitable multiaxle trailers.

EMPLOYEES OF THE MONTH

REJITH REMANI -Coordinator (CFS) Awarded by Jayandan PI -Team Leader (CFS)

PRAHLADAN KESAVAN – Sr. Forklift Operator (CFS) Awarded by Manish Kesavan, Manager, Operations-NVOCC & CFS

VINOD VISWANATHAN – Driver (Transport) Awarded by Jayasankar Vasudevan- Manager (Transport)

DP WORLD AND SAUDI PORTS AUTHORITY SIGN DEAL TO BUILD $133M LOGISTICS PARK AT JEDDAH PORT

Saudi Arabia, the Arab world’s largest economy, is focused on diversifying its economy away from oil as part of its Vision 2030 program. The kingdom is forecast to be a vital driver of global trade growth. Its exports are projected to expand at an average annual rate of more than 7 percent to $354 billion by 2030, Standard Chartered said earlier this year. “The strategic Vision 2030 framework includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidates its status as a global logistics hub,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World. The Jeddah Islamic Port, which is strategically located on the Red Sea, has historically played a pivotal role in facilitating the movement of trade between the East and the West.

Logistics Park at the Jeddah Islamic Port

Further strengthening the deep ties shared between the UAE and Saudi Arabia, DP World and Saudi Ports Authority (Mawani) have signed a 30-year agreement to build a state-of-the-art, port-centric logistics park at the Jeddah Islamic Port. An investment value of more than Dh490 million ($133.4 million) aims to establish a 415,000 sq. m logistics park with an in-land container depot capacity of 250,000 TEUs (twenty-foot equivalent units) and a warehousing storage space of 100,000 sq. m.
The Authority’s move to develop a holistic logistics park will enhance the competitiveness of the Jeddah Islamic Port. The park will boost Jeddah Islamic Port in terms of:

Re-export activities
Help to reduce the time and cost of logistics for importers and exporters
Provide an integrated service platform linking port operations with last-mile activities.
Enable to offer processing, consolidation /deconsolidation, labeling, and fulfillment
Offer temperature-controlled storage for cargo
Advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new logistics park.
Help raise the quantity of trans-shipped goods

DP World Managing the South Container Terminal

In April 2020, DP World signed a new concession agreement with Mawani to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for 30 years. DP World has committed to investing more than Dh2.94 billion to expand and modernize the terminal. The overhaul project will take place over four phases and be completed by 2024.
The project will involve:

New infrastructure upgrades
Broadening of draft depth and quay
Installation of advanced equipment and technologies
Automation and digitalization programs
Decarbonization initiatives

The revamped terminal is projected to increase Jeddah Islamic Port’s container handling capacity from the current 2.5 million TEUs to 4 million TEUs. This will enhance Jeddah Islamic Port’s status as a major trade and logistics center on the Red Sea coast.

Metals and minerals, plastic and rubber, chemicals, and pharmaceuticals will dominate the kingdom’s exports over the next decade, with India, China, and South Korea being the principal export markets.

DP World makes inroads across the world

DP World is one of the world’s biggest operators of marine ports and inland cargo terminals, with gateways from London and Antwerp and hubs in Africa, India, Russia, and the Americas. The Dubai-based company has been on an acquisition spree as it attempts to become a more diversified and integrated logistics company. In the recent past, they have signed agreements with the Angolan government to develop the country’s trade and logistics sector and acquired South Africa’s Imperial Logistics to strengthen the port operator’s position in Africa.
The agreement to build a “port-centric park” at the Jeddah Islamic Port was signed under the patronage of Eng. Saleh bin Nasser Al Jasser, Saudi Arabia’s Minister of Transport and Logistic Services and Chairman of Mawani. The logistics park will expand DP World’s regional footprint and bring multi-modal logistics solutions to the nation. DP world being an end-to-end supply chain provider, will help build logistical services that will bridge the existing market gaps. This port-centric logistic park will empower to provide the best-in-class logistical services by collaborating with leading service providers.
“This partnership will connect the port’s operations to the new logistics park to offer end-to-end logistics services with high efficiency,” Omar Hariri, president of the Saudi Ports Authority, said.

HOW THE METAVERSE WILL REDEFINE THE SUPPLY CHAIN

What Is the Metaverse?

Metaverse has become very trending since Facebook changed its name to Meta. Though it was acknowledged as simply a name change initially, it did not confine itself merely to that factor alone. The Metaverse technology includes virtual and augmented reality, digital and physical worlds, and VR and AR. The Metaverse device’s access to PCs, game consoles, and mobiles are significant. This point defines Metaverse’s ability to revolutionize consumer behavior- a unique blend of gaming, social, entertainment, and e-commerce. Metaverse gives the user a store experience as well as comfortable customer service, all at the convenience of shopping at home.
Let us take the example of a customer buying a TV online. In a 3D immersive world, he gets to visit digital stores, get served by store employees, and personally interacts with the TV set he intends to purchase. Some big fashion houses like Ralph Lauren have their digital store to sell digital clothes and collections on the platform called Roblox which has an active 47 million users daily.

The Metaverse Effect on Digital Supply Chain

Many supply chains have already been engaging in certain digital transformations. Interestingly, with the coming of the Metaverse, these digital transformations seem so outdated as they are limited as they are only physical meaning. They do not give us the see and feel option, unlike the Metaverse, whose goal is to create a digital space that gets translated into the physical world. In this context, the question that arises is whether Metaverse will completely takes over and diminish the importance of the supply chain or will it enhance and redefine the supply chain experience. Let’s find out how Metaverse could bring a redefinition to the existing technology.

Metaverse Effect on Manufacturing

With the Metaverse making available 3D and virtual tools accessible to general consumers, it will ignite the ability to digitally simulate products, production processes, and factories to optimize the allocation of assets across the supply chain. It can also run production scenarios and provide operator training in a more immersed environment. It will facilitate a stop to physical manufacturing facilities, long downtimes, and learning curves in factories. Instead, it will push forward for more customized products that were challenging to produce cost-effectively in traditional factories involved in mass manufacture.

Metaverse Will Create Shortened Product Life Cycle

As the Metaverse helps in sharing ideas and ideals for collaboration, it will shorten the product life cycle for new products and increase the speed of development of a workable design

How the Metaverse Can Help with Efficient and Transparent Purchasing

The introduction of the Metaverse takes collaboration up to the next level. It improves collaboration across all tiers in the supply chain, not just with direct vendors vendor for innovating and cost engineering but also limitless and concurrent collaboration up the value chain. This connectivity makes the end-to-end chain more transparent and efficient, including effective cost negotiations between buyers and vendors. This wide-scale collaboration, detailed production optimized designs, and reduced margin of error for production leads to improved product quality and service and reduced customer churn and return rates. Furthermore, there are more chances of efficiencies owing to less travel to vendor locations and reduced costs for quality control.

Metaverse Brings Supply Chain Transparency

Both corporate and consumer customers opt for transparency on the environmental and collateral impacts of the supply chains. Here, the Metaverse will enhance supply chain transparency with 3D representations of how products are made, distributed, and sold. This leads to stakeholders gaining visibility into lead times, transit times, shipping delays, and even real-time shipping costs. This transparency and visibility will only increase trust and effectiveness in supply chains.

Metaverse Will Improve Warehouse Operations

As the Metaverse is a 3D World, the unlimited collaboration offered by the Metaverse will mean that every stakeholder, from worker onions to ESG and sustainability teams, will be involved in a better and more efficient warehouse design and optimal location, thus having a dynamic voice. This can be simulated, experienced, and improved in the Metaverse before the physical build, thus saving money and time from concept to reality.
If local bodies adopt Metaverse, they could review and approve new designs and proposals and copy the final approved design version to their records for archives as it provides a realistic environment where key operator training can take place without any disruption in the day-to-day operations and also test adjustments to warehouse flow and layout.
The use of Metaverse does not end there as better dynamic space modeling, slotting, and racking optimization are observed due to growth in SKUs or product characteristic change.
The immense capabilities of the Metaverse offer potential for huge benefits and applications. Its true worth happens only on how it improves the experience of its users and customers.