THE SEVEN RULES THAT WILL HELP IN UNDERSTANDING THE WORKINGS OF THE SUPPLY CHAIN

The pandemic threw the supply chain out of gear, making people sit and take note of the supply chain industry and how it can impact their lives.

So, what exactly is a supply chain?

Supply chains are networks that link producers to consumers, often with dozens of steps from beginning to end. The core job of supply chains is to match supply with demand; when things are going well, we tend to take them for granted. But as we have seen over the past 2½ years, this process can break down under stress.
We can understand why supply chains are in such turmoil if we know the seven fundamental principles that rule every supply chain.

Rule #1: The Presence of Several Layers in a Supply Chain

Supply chains have two parts – a production side and a distribution side. The production is where the final assembly of a product takes place, while the distribution side is where the products reach the buyer.
The disruption in the supply chain is evident at both ends, i.e., at the manufacturing or production side and the distribution side. In the case of the production side, where multiple parts are involved, companies turn to several suppliers to provide components. One of the best examples that can be cited is the case of a notebook computer that uses different companies to make the microprocessor chips, memory chips, display screen, keyboard, disk drive, battery, charger, etc. With several suppliers being involved and most of them not knowing exactly who is concerned, it’s hard to track the right supplier.
It’s almost like a layer cake. Companies end up with several tiers of suppliers. Layer-one firms supply them directly, layer twos supply layer ones, layer threes provide layers twos, and the train can be extended. The lower layer supplier might have shut shop at the start of the pandemic. However, the manufacturer might not be aware of this fact until the layer 1 supplier refused to deliver the parts.
On the distribution side, a simple supply chain might have several steps that connect a manufacturer to a retailer. The steps are bound to get compounded if the factory is far away. The hassles in the supply chain have happened on both the distribution side and the product side because companies ran out of parts, and on the distribution side, where shipping companies ran into bottlenecks due to such factors as labor shortages and congested ports.

Rule #2: Misinterpreting Sudden Spike in Demand

Demand forecasting is done based on past histories. But the pandemic created a spike in haywire. This was primarily because most people were into panic buying. This was the case with toilet paper and later exercise bikes. Also called the “bullwhip effect”, because of the amplification and oscillation in product volumes moving along the chain, looking like the cracking of a bullwhip. This is primarily because people make erroneous judgments about demand signals. The manufacturers add capacity, and suppliers stockpile the raw materials. With the delays in the chain, a flood of products comes down to retailers, which is when they decide to reduce future orders. The manufacturers slash production, leading to future shortages, and suppliers are left with raw materials.

Rule #3: The Just in Time Versus Just in Case Prediction

The bullwhip effect triggered the just-in-time production strategy. This was okay in cases where the suppliers and factories are closer geography-wise. This meant lean supply chains with better quality and less money getting tied up in inventory, leading to lower costs and better financial performance. However, this could not be worked on in scenes where the suppliers are spread worldwide. Scheduling deliveries just in time failed here. When demand spikes, bottlenecks start disrupting the international cargo shipments, and parts get delayed, which automatically results in higher costs.

Rule #4: Excess Demand Leads to Frantic Shortages

Ordering the raw materials over what is needed gives rise to two scenarios. First, they move in short supply or become harder to get. The second one is where the company gets stuck with excess inventory. Either way, much money gets spent. This does not mean you need to get off with the just-in-case prediction. It only means the right balance needs to be maintained. Communication is key here. It’s best if you are in open communication with the suppliers. It’s when people are guessing that they end up messing up the forecast signals.

Rule #5: Longer Distribution Tend to have more disruptions

Most of the distribution supply chain has several series of steps. This invariably results in many disruptions happening along the way. Before the pandemic, there was fair timing. But with labor shortages and several other bottlenecks, delays at one or two steps rippled the whole distribution chain.

Rule #6: Congestion Clogs Capacity

During the pandemic, container lines assigned more ships and containers to the trade lane owing to the high demand from US customers. But the increased number of ships and containers only froze the speed and capacity, which was otherwise on track. This resulted in higher freight rates and stuck inventory in the ships due to the traffic.

Rule #7: Unidentifiable Bottlenecks

Bottlenecks come in as ripples. When 100 ships are waiting to offload, it is easy to think that the problem is at the Los Angeles or Long Beach ports. But in reality, the problems caused by the distribution centers were closer to the consumers. Trying to increase ports’ capacity by running them 24 hours a day didn’t help because the problem was there was no place for the containers to go. Many warehouses were and are still chockablock with inventory, so they have difficulty unloading containers. That backs up the whole chain—to the ships sitting at sea.
The above seven principles will help understand how the supply chain works and disruptions. Several phenomena, from misread demand spikes to congestion and bottlenecks, have led to hindrances.

IMPERIAL’S STAKE INCREASES DOUBLE FOLD IN BOTSWANA

DP World-owned logistics firm Imperial has doubled its PST Sales & Distribution stake. PST is Botswana-based enterprise offering services like supply chain management, financial and administrative management, and sales and branding. With its origins in Botswana, this home-grown company has more than 30 years of experience in the field. Imperial has raised its stake from 38 percent to 72 percent, which came into effect on July 1, 2022.

Mohammed Akoojee, the Chief Operating Officer of DP World Logistics and Group CEO for Imperial, spoke about this move, “PST’s sound knowledge of the consumer landscape in Botswana, coupled with its comprehensive distribution and sales solutions, aligns well with DP World’s strategic objective of leveraging assets and logistics to create an integrated global supply chain – from the factory floor to customer door.”
He added, “PST further entrenches Imperial as the leading distributor of consumer goods in Southern Africa, providing brand owners with informed and unparalleled access to their end consumers by leveraging our in-market networks and in-country infrastructure.”
Johan Truter, the CEO of Imperials Market Access business, emphasized that PST has the infrastructure to provide a nationwide route to market solution and a team of product specialists that enables it to serve the entire trade universe and has unmatched local knowledge with all employees being local including top management.
Autash Arora, the Managing Director at PST, underlined, “This transaction further cements PST’s relationship with Imperial and bodes well for our vision of being the best FMCG distributor in the country and delivering well-known brands and household names to the people of Botswana.”
Imperial has highlighted that PST has the infrastructure to provide a nationwide route-to-market solution. PST also has an expert team of product specialists, enabling the business to participate in every category of the FMCG industry.

BOUNCED CHEQUES AND THE LATEST AMENDMENTS IN THE UAE

The new amendment to Federal Law No. 18 of UAE’s Commercial Transactions Law, 1993, regarding the decriminalization of bounced cheques and the partial payment of cheques, took effect from January 2, 2022, as per the directive of the UAE Central Bank. These changes align with the practice in countries such as France and the USA. Being a criminal offense before the amendment, the modifications have been enacted to make it a civil offense where people can discuss and settle the case amicably.

Cheques returned due to insufficient funds ha been decriminalized to a large extent, and criminal liability will only accrue in cases where the cheque has been issued for an illegal purpose, bounced as a result of being delivered in bad faith, or as a result of fraud or forgery, or has been deliberately written or signed in a way that makes them untenable. It may also accrue criminal liability if proven that:
1. The drawer had ordered the bank not to cash the cheque before the due date;
2. The drawer had closed the account or withdrawn the available balance before the due date.

Moreover, the previous beneficiaries of bounced cheques must notify a police station regarding the situation, providing details of the drawer, drawee, the cheque, and the bank where it was to be cashed. Before visiting a police station, the complainant should first ascertain in which area of the city the cheque was first submitted for clearing, as it is the police station in the corresponding area where the cheque was first submitted that shall have jurisdiction over the complaint.
Once the complaint is accepted, after review of the original cheque along with the return memo and other relevant documents, the cheque issuer, or the counterparty, in this case, will be notified by the police to come to the station for questioning. Once the police record the statements of all parties involved, they will prepare their report, and the complaint will be transferred to the Public Prosecution. The Public Prosecution has exclusive jurisdiction to initiate and prosecute criminal proceedings under AED 200,000/- by issuing a fine only. For cheque amounts over AED 200,000/-, the Public Prosecution will have to transfer the case to the criminal court for their review. If the amount is less than AED 200,000/-, then the case would be transferred to a civil court that could force him to pay the amount mentioned in the cheque along with a fine. At this point, the courts would determine whether or not an element of bad faith existed.

On the contrary, the new amendment enables the beneficiary to directly approach the court’s execution judge, after obtaining a certificate from the bank, to order payment of the full or partial payment of the cheque’s value or even enforce the right to seize the drawer’s assets, in an accelerated and easy procedure that preserves the rights of all parties involved. To that extent, partial payment of cheques has also been made mandatory, with the bank required to pay the drawee the partial amount if the amount in the account is less than the value mentioned in the cheque unless the drawee rejects such payment. In such cases, the bank shall follow the protocols for partial payment of Cheque value, as stipulated in the new amendment law.
As part of the changes, administrative penalties for issuing cheques without funds will also be toughened, including withdrawal of checkbooks from the transgressor, denying them the right to receive new checkbooks for a maximum of five years, and suspending their professional or commercial activity.
This move to amend the Commercial Transactions Law that decriminalizes bounced cheque cases are expected to come as a huge relief to hundreds of businesses that earlier had to pay hefty fines at risk of imprisonment without trial in the UAE.

BETTER COMMUNICATION IS THE SOLUTION FOR MEETING THE AIRFREIGHT VOLUME CRUNCH

Worsening ocean freight capacity issues is continuing without a pause.
Brandon Fried, executive director of Airforwarders Association (AfA) has spoken about the dire situation, The forecasted surge in demand for US air cargo capacity will be largely driven by a lack of sailing with ocean suppliers, but air cargo forwarders must “learn to be adaptable” in the current climate of already constrained airfreight capacity.
Better communication can help in managing an oncoming air cargo capacity crunch.

lighthouse-better-communication The US capacity crunch is expected to be driven by a perfect storm of canceled China to US sailings, congestion at US airports, limited warehouse space, labor shortage, and rising inflation, said Fried. Fried has, in fact, emphasized this factor to the Los Angeles Air Cargo Association (LAACA).

“The challenges for ocean carriers are well documented, and we understand that they are looking after profit margins, but multiple factors already constrain air capacity. Congestion at major airports exacerbates the strain on supply chains across the US.
To tide over these challenges, the air forwarding community should communicate well and learn to be adaptable.” said Fried.
The AfA launched its Airport Congestion Committee (ACC) to formulate realistic solutions to relieve airport congestion. The ACC is responsible for presenting findings to private, public, and government entities as workable policies for urgent new legislation.

Chairman’s Message

“An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage,” remarked Jack Welch, the former CEO of General Electric. This adage gains more significance today than at any other time in history.

The pandemic has ruthlessly exposed the systemic vulnerability of the global supply chain over the past few years. Global indicators tell us that the supply chain scenario may worsen in the coming months. The war in Ukraine and the re-emergence of new Covid variants have further constrained cargo movement. The invasion of Ukraine has complicated the logistics world map. We see major shipping lines avoiding the Baltic and Black Seas, insurers hiking premiums, and major European ports flagging Russian vessels.

Further, Singapore’s world’s largest refueling port has seen a 66% increase in marine fuel price from last year. Port level inefficacy continues. We expect air and sea freight rates to remain high until the middle of the year. All these have a domino-like negative compounding effect across various markets.

Be Future-Ready!

While we wrap up the second quarter, let us look at what lies ahead for us in the next season. The disruption caused by Covid has been experienced in full force by the emerging markets. We can be optimistic that some of the factors contributing to this will unwind by the end of the year. Experts predict some uneven recovery for emerging logistics markets shortly.

At CSS, we must prepare for the very first sign of recovery. Taking a cue from Jack Welch’s statement, the ability to learn and unlearn quickly builds stronger organizations. The key to healing and growth in the next ten years would be technology adoption. And this will be particularly relevant for emerging markets like the UAE.

Transport Intelligence and Agility research reveal that the UAE tops the Digital Readiness ranking for adaptability and preparedness for the digitally-driven and sustainable post-pandemic global economy. Emerging markets rely heavily on technology, innovation, skills, and sustainability to unlock a country’s potential and integrate into global value chains.

Digitization – The Game Changer

Digitization and innovation will be the game-changer. Smaller and medium-scale companies lacking scale can attain competitive advantage with a digitally skilled workforce, a globally compatible and future-oriented mindset, and entrepreneurial risk culture.

This is an opportunity beckoning us. Today, CSS is a quarter of a century strong. Steady with our experience, resolute with our determination, and distinct in our value offering. We have consistently adapted to changing economic scenarios. While we brace ourselves to weather this rough season, let us make it a season of opportunity. An opportunity to look for new avenues, unlearn old ways, learn new skills, innovate, and think differently. Our agility is the reason why we stand tall today. It is best summed up in the quote by the futurist Alvin Toffler, “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn and relearn.”

Once again, let’s come together, learn, and unlearn. And together, we will emerge all the stronger.

CSS TEAM PARTICIPATES IN BREAKBULK, EUROPE 2022 AT ROTTERDAM

After a break due to the pandemic, Team CSS participated as an exhibitor in the prestigious and the biggest project cargo Breakbulk event at Rotterdam. The team was helmed by Chairman T.S Kaladharan, Krishna, Chandrakala, Ramesh, Sunny, Robin and Renjith.

At this landmark event, a few freight forwarders represented the Middle East region, and CSS was one of them. “The customer interaction, meetings ( both scheduled and Adhoc), and connecting with the networks were encouraging and having our team of experts made it extra special.” Sunny commented.

Strategic Networking and Deep Learnings

The Breakbulk exhibition offered an opportunity for forging strategic alliances and networking with companies worldwide. The event also provided a platform for deep discussions on the latest developments and new trends in handling breakbulk and project cargo. At CSS, the project team has well-versed and experienced personnel with in-depth knowledge of the domain. Adeptly skilled at handling breakbulk and project cargo, we have been able to tap into several opportunities from across the Middle East region. The exhibition has further cemented the team’s prowess with several prospects in the pipeline. The team will also leverage the learnings and key takeaways from the Breakbulk event to forge new ideas and innovations in handling future projects.

Breakbulk Europe – 2022

The International Exhibition of Transport, Logistics, and Transport Innovations, Breakbulk Europe – 2022, was held at Rotterdam in the Netherlands. Held from May 17th to May 19th, thousands of companies from 118 countries took part in the exhibition. The top representation was from countries in Europe and also from the United States of America. Nearly 9000 attendees were present at this event in Rotterdam.

Exhibitors and sponsors included cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies, specialized freight forwarders, and other associated service providers. More than 500 exhibitors and 4000 companies took part in Breakbulk Europe-2022. The event fosters an atmosphere for building new business opportunities for all its participants and a marketplace for port companies, shipping companies, and logisticians who focus on transporting, handling, and storing breakbulk and project cargo.

The program was driven by the Breakbulk Europe Advisory Board, an exceptional group of leaders from across the supply chain spectrum. An event was birthed by several notable organizations like the Rotterdam Ahoy, Rotterdam Partners, the Municipality of Rotterdam, Rotterdam Port Promotion Council, and the Port of Rotterdam Authority. Hosted in six large inter-connected halls, the international visitors were welcomed at the breathtakingly impressive entrance of the building. The focus feature was the touchscreen which could be used to navigate the respective ports using a remarkable 360° tour.

Key Areas of Discussions

The three-day event, held in Rotterdam, was the first of its kind, providing a platform for numerous visitors to exchange ideas. An important topic discussed at the event was “optimal marine fuel to power the current and future generation of cargo vessels.” Ship owners should consider next-generation, scaled-down nuclear-powered engines and wind asset technology as the future fuels.There were 66 keynote speakers across 26 sessions. Popular sessions included Managing Rates & Capacities, Breakbulk and Project Market Outlook, Global Economic Conditions and Breakbulk, Women in Breakbulk, and Digitising End to End.

Breakbulk Europe was the largest event for the project cargo and breakbulk industry, bringing the industry leaders to congregate in the port city of Rotterdam. It was an expo for the industry, offshore wind, oil and gas companies, carriers, ports, logistics companies, specialized freight forwarders, and other associated service providers. In keeping with this scale of the show, the event slogan was “Bigger Better Breakbulk.”

Now for Breakbulk 2023

According to Port Authority Breakbulk Director Danny Levenswaard, the Breakbulk Europe will be held in Rotterdam Ahoy next year between June 6th to 8th. In 2023, Breakbulk Middle East is slated to be held between 13th-14th February. The team at CSS has expressed our earnest interest in being part of this landmark event by offering our service and being the industry leaders in the logistics landscape of the region we operate in.

The 2022 Breakbulk event was an unparalleled opportunity to connect with colleagues, new business partners, and project cargo decision-makers. The event helped forge new ties and a much-needed impetus to expand our business horizons.

 

CSS CELEBRATES THE SPIRIT OF RAMADAN WITH IFTAR MEAL DISTRIBUTION

As part of our Ramadan initiatives of giving, this year, CSS took a step forward by distributing iftar meals to the needy, reflecting the true essence of the holy month. We conducted the iftar food distribution drive on 29 April 2022 distributing 101 iftar meals to blue collar workers who toil hard under the hot sun during Ramadan

The team that went on the streets to fulfill the initiative included Alan Ramesh (Marketing Assistant), Rajeesh Rajendraprasad (Operation Co-ordinator), Chuchu Viswanathan (Operation Executive – Forwarding), Amal George (Operation Co-ordinator), Aneesh Leela (Messenger) and Babu Krishna Pillai (Messenger). The iftar meals were distributed in the Karama and Burjuman areas of Dubai.

The iftar initiative reflects CSS’s continued commitment to the community we operate in. Speaking about the Ramadan initiative, T S Kaladharan, Chairman of CSS, explained, “It is essential to foster a culture of caring and giving to inspire the next generation to be community builders.”

The Ramadan initiative extends CSS’s strategic corporate social responsibility goals and fosters a spirit of volunteerism within the organization. Kaladharan emphasized, “We are inspired by the spirit of giving exemplified by the great leadership of his wonderful nation. We want to drive  home the message of charity and social responsibility that is embedded in its tenets of our country.”

Ramadan is the holy season where goodness abounds, and CSS would like to show that we are not just about business, we also mean business regarding community building.

Click here to watch the video of the CSS Ramadan initiative:

www.youtube.com/watch?v=gyfgSNyBz3U

 

CSS CHAIRMAN T S KALADHARAN FELICITATES QADRI TRANSPORT FOR THEIR 20 YEARS OF SERVICE

 

In recognition of their entrepreneurial success, Chairman Mr. T. S. Kaladharan felicitated Mr. Qamar Sultan Qadri, Managing Director, Qadri Transport, commemorating the company’s long and reputable service in the industry.

20 Years of Operations

Recently, Qadri Transport completed 20 years of commendable operations in the UAE. Beginning with the forklift rental and repair business, Qadri Transport expanded into various business verticals in 2002. The business specializes in heavy transport, forklift rental and repairs, packing and packaging, and trade. The company has been associated with CSS for a long time, being a valued stakeholder in CSS operations. Apart from CSS, the company provides its services for several multinational companies, including Aramex, DHL, UPS, Caterpillar, Continental Alloys, Hellmann Worldwide Logistics, and Expo 2020.

Qadri’s Journey So Far

The young Qamar Sulthan Qadri has reached this enviable position after considerable hardship. Having lost his father at 16, Qadri had to step in to work to bring in income for his family. He started as a forklift operator and worked his way up to being an owner of forklifts. His success can be attributed to his rock-solid values of honesty, integrity, and hard work. He also has an impeccable track record and, therefore, enjoys amicable relationships with his clients and also his team. Today, Qadri has a strong footing in the UAE, especially in the Jebel Ali Freezone. He has also added a brand-new mobile crane to his fleet.

Kaladharan Congratulates Qadri for the UAE Golden Visa

This timely recognition from the Chairman comes when the UAE government has awarded Mr. Qadri the Golden Visa. In an interview with Emirati TV Channel and Khaleej Times, Mr. Qadri has been distinguished as the first Pakistani recipient of the Golden Visa. He is also the youngest business person in his field.

The Golden Visa is a long-term residence visa that enables foreign talents to live and work or study in the UAE while enjoying exclusive benefits. Investors, entrepreneurs, scientists, outstanding students and graduates, humanitarian pioneers, and frontline heroes are eligible for the Golden Visa.

On this heartening occasion, CSS team joins the Chairman in wishing Mr. Qadri and his company more tremendous success.

CSS TAKES PART IN NEPTUNE CARGO NETWORK’S FOURTH ANNUAL PARTNERSHIP SUMMIT

2 DAYS OF INSPIRATION, NETWORKING, AND LEARNING!

CSS Group took part in the Neptune Cargo Network’s Fourth Annual Partnership meeting held on May 11-14th at the Grand Hyatt, Dubai. It was attended by approximately 210 consolidators , NVOCC, and LCL forwarders from 41 countries.

After a two-year hiatus, the in-person networking summit kicked off with a fun-filled and hi-octane welcome cocktail party which was sponsored by our UK consolidation agent Cardinal. Day Two of the event was all about opportunities to learn, get inspired, and connect. The opening session was ably headed by Nils Walle, Director, and Co-founder of Neptune Cargo Network. Mr. Walle presented network updates from Neptune. This was followed by the exhilarating “Newbie Open Mic segment,” where the new members introduced themselves and their companies.

A Stellar Key Note Address by Mark Millar

The inspiring and informative keynote address was delivered by Mark Millar, one of Asia’s foremost speaker on supply chain and logistics industry. With over 30 years of global business experience spanning four continents, Millar has worked for leading service providers, including DHL and UPS. Focused on the key shaping of the logistics industry, especially in the air and sea sectors, his approach made the attendees think laterally as he provided relevant information based on key industry insights.

Millar compelled the attendees to confront and analyze tomorrow’s most significant supply chain challenges. Attendees left the session empowered with the knowledge, confidence, and motivation to implement innovative solutions for their companies.

The Ice-Breaker Session

Several well-crafted video presentations by sponsors followed the thought-provoking keynote address. In one of the ensuing sessions, consolidators and LCL forwarders took the opportunity to express their immense pleasure and gratitude to other members. This was indeed the “ice-breaking” event of the conference. The customary Neptune group photograph for this year’s conference was taken as this was not possible in the past two years.

The delegates also went on a desert safari to experience the sandy dunes of the Dubai desert. It was another opportunity to forge ties and friendships within the industry.

Mashie Escando, Marketing Manager of Neptune Cargo Network, expressed the sentiment of every attendee, “It was our much-awaited event after the long 2-year hiatus of staying at home and attending virtual meetings, so it was a huge success and indeed a memorable and extraordinary experience.”

About Neptune Network

The Global NVOCC & Consolidators Network, Neptune Consol, addresses the massive gap between consolidators, forwarders, and sea freight professionals. Many sea freight consolidators face the challenge of finding the right partners worldwide. The Network allows consolidators to forge lasting partnerships and secures a reliable global platform for logistics companies to grow and flourish. The members are guided by a standard code of ethics and guidelines. In the first year of its launch, the Consol had just above 100 members, which grew to 200 participants in the following year.  The third meeting hosted in Manila, Philippines, had more than 230 Consolidators & LCL Forwarders were present.

CSS group has been an active member of the Consol and has enthusiastically participated in Neptune Network’s conferences in the past years. Being a part of the Network has helped Team to equip themselves with specific tools and solutions that aid us to excel in the industry.

 

EMPLOYEES OF THE MONTH

MOHAMMED MARVAN – Team Leader, Operations Forwarding awarded by Ambili don, Manager, Forwarding Operation
PRAMOD KUMAR – Coordinator, FCL Transport awarded by Jayasankar Vasudevan, Manager, Transport
SHIVAKUMAR- Operation Assistant, Airfreight awarded by Baiju Sadanandan – Manager, Airfreight Operations
EDHU KRISHNAN – Coordinator, NVOCC, awarded by Fida Asghar, General Manager, NVOCC Sales

SHIPMENT OF TOYOTA SUPRA

CSS on “Fast and Furious” lanes!

CSS Group’s Automobile Logistics wing had yet another opportunity to undertake an across-the-ocean shipment of a luxury vehicle to Kerala, India. This time it was to transport the luxury sports car Toyota Supra 2022 from Dubai port to Kochi. The Toyota Supra is a car with a 335-horsepower inline six-cylinder turbocharged engine that is paired with an eight-speed automatic transmission and rear-wheel drive. The orange 1993 Supra driven by the late Paul Walker in the original ‘Fast and Furious’ movie sparks a love for this Toyota model amongst the millennials.

CSS Automobile Logistics Does It Again… And Again

The CSS Group’s Automobile Logistics division specializes in handling shipments of high-end vehicles. In the past, it has undertaken many successful shipments. In 2020, CSS facilitated the shipment of the vlogger Shakir Subhan aka “Mallu Traveller’s bike which was stuck in Azerbaijan due to the COVID-19 pandemic. Later, a Ford F150 Raptor was safely shipped from Dubai to Cochin. In the recent past, CSS handled the shipment of a Ford Mustang from Jebel Ali to Cochin on 19th January 2021. On 18th October 2021, there was an air shipment of a Lamborghini Huracán belonging to a Dubai-based businessman from the Malappuram district of Kerala. It was even returned to Dubai after the stipulated time of six months.

ATA Carnet – The Passport for Goods

For transporting vehicles across borders, the ATA Carnet is vital. ATA Carnet, referred to as the “Passport for goods,” is an international customs document that permits the tax-free and duty-free temporary export and import of non-perishable goods for up to one year. It has all the unified customs declaration forms that can be used at every border crossing point.

Smooth sail for Toyota Supra

Upon receiving this carnet, the “Toyota Supra” undertook its voyage from the Dubai port. The transit time across the Arabian Sea from Dubai to Kochi is around five days. On arriving at the Kochi port, the CSS office in Kochi sprang into action. They provided all the support and guidance needed to release the vehicle along with clearances required by the Customs department. The luxury sports car was delivered to the esteemed customer with minimum wait time and zero hassles. The customer also remarked that they were delighted with the whole process and were impressed by the smooth flow. The CSS Group’s Automobile Logistics division has once again proved its prowess in handling shipments of automobiles seamlessly.

Despite being a Non-Vessel Operating Common Carrier, CSS possesses a unique combination of talent, resources, and partners across the globe. With facilities in Dubai, Abu Dhabi, Sharjah, Bahrain, and Oman, CSS has an exceptionally strong worldwide network. With large storage facilities, specialized racking of vehicles, and a technology team that fully manages the end-to-end operations, CSS has become a trusted name in Auto Logistics. CSS arranges for door-to-door delivery of the vehicles under carnet, including the return shipment to Dubai within carnet validity and destination clearance, thus assuring customers have a smooth sail and hassle-free loads all the way through.

CSS remains committed to delivering efficiency and seamless movements of high-end cars through its trusted network operations year after year.

 

CONFIDENCE IS NOT THAT THEY WILL LIKE ME. CONFIDENCE IS THAT YOU WILL BE FINE IF THEY DON’T!

By: Abhilash Nair

Global CEO of ISS Relocation

Self-confidence is the belief in one’s own skills, goals, and ability to succeed:

†      A confident person doesn’t think what others think of them and tries everything to full capacity.

†      Confident individuals set the bar high, aim high and try new things.

†      They can stand up for their beliefs and values.

†      They Believe in success. Confident people are 25% more likely to overcome challenges at work.

†      They perform better than their less-confident peer.

†      Living with low self-esteem and confidence can harm mental health, leading to problems like depression and anxiety.

†      The lack of confidence affects the ability to reach full potential.

If you feel low confidence, you may indulge in:

†      You socially withdraw yourself or hide away from social situations. Hesitant to meet any new person

†      You are unwilling to take on challenges, have fears of failure, fear the unknown

†      Don’t speak up in a group conversation. They are afraid of what others think

†      Need approval, validations for small things

†      Don’t trust their judgment.

†      Rely on your phone in social situations.

†      Always back down during disagreements.

†      Take constructive criticism personally.

†      Blame others.

†      Make excuses.

†      Use defensive body language. like crossing arms or giving a stern facial expression, sweating face

†      They are a pessimist. Afraid of the future

†      They are ashamed.

†      Apologize easily

†      Avoid eye contact.

†      They have anxiety and emotional turmoil.

†      They are unable to accept compliments.

†      They neglect themselves. Indulge in negative self-talk

†      If someone else looks directly in the eye, they feel uncomfortable.

†      They are looking around or down at their feet. You aren’t comfortable or confident in the situation.

†      They have self-deprecating humor.

Causes

†      Unhappy childhood where parents, teachers, and classmates were highly critical of poor academic performance, personality, nature, habits, etc. They don’t feel loved and appreciated.

†      Appearance, image issues.

†      Abuse

†      Career Issues

†      Lack of Confidence at Work

†      Peer pressure

†      Sibling rivalry or comparison

†      Not able to meet social standards of a successful person like- high qualification, high salary, a job in a reputed company, happily married life, etc.

How to Overcome Low Confidence

†      Confidence isn’t an accident. On the contrary, it has to be cultivated over a period of time.

†      You might not see results immediately, but the longer you practice, the more you gain confidence.

†      Confidence can be inculcated through small practices throughout life.

†      We can rewire our brains with focus and intention and genuine efforts.

†      And although our fears and limiting beliefs won’t completely disappear, over time, they lose their power over our daily thoughts and actions.

Here are a few ways through which you can boost your self-confidence

†      Practice Personal Grooming

†      Take the time every morning to properly groom yourself and look presentable for the day.

†      It is surprising how much of a difference it can make when you feel like you look your best.

†      You can also dress nicely, so your clothes look presentable and appropriate for whatever you do that day.

†      Appearing confident can help us get on better in our lives.

†      If required, do a personal grooming course online.

Change your thinking patterns:

†      Be Positive – It is also essential to think positively. Replace your negative thoughts with positive ones by learning to become aware of your self-talk and your actions. Instead of telling yourself that you can’t do something, allow yourself to look forward to the challenges. Repeat some positive statements.” I am the best,” “I can do it,” I know this,” “I shall win, “…etc.. Each day create a small task to stretch beyond your comfort zone. Do something unexpected on purpose to let go of your inhibitions. Achieve small and easy-to-attain goals to help you feel successful. Don’t depend on external validation.

†      Be Grateful – Another way to stay positive is to take a few minutes each day to reflect on what you’re grateful for. Being grateful can reduce stress hormones in your body by 23%! Never envy. When you’re thankful for what you already have, you appreciate new accomplishments even more. Never compare yourself with others. Feel from the core of your heart that You are Unique. You have your destiny. Write five things daily you are grateful for and feel confident to have.

†      Fake confidence – A cool thing about confidence is that it can be faked. If your fake confidence, not only does your mind begin to believe that you’re confident, but other people also begin to see you as confident. This, in turn, makes you feel more confident, making other people see you as confident. Eventually, this will result in inner confidence. Confidence doesn’t compensate for lack of skill or hard work, but it helps amplify those qualities to take you further than you’d get without it.

†      Do Eye Contact – Do eye contact when speaking to others. Averting your gaze entirely sends a very different message. It can mean that you’re lying or even thinking you’re better than the person you are talking to. Initiating and keeping eye contact is a quick way to boost how confident you appear to others instantly.

†      Challenge Your Inner Critic – Often, the biggest hurdle to increasing our confidence is that little nagging voice in the back of our heads. “You’re going to fail this.” “The client won’t like your idea. “When your brain starts this to you, stop right there. Tell it you’ll do great, and the client will love your work. This is more likely if you’ve done your homework. Silencing your inner critic takes much practice. Make a good image of yourself—no harm in indulging self-appreciation at times.

†      Think Yourself as a Brand – Create your own set of values. Think of yourself as a brand. What do you believe in? How do you look at the world? What do you want people to think about you or feel when they see you? Regardless of how you answer those questions, ensure your actions align with them?

†      Pay Attention to Your Body Language – Your body language gives away a lot about your true level of confidence. If you’re trying to impress someone, like in an interview, how you carry yourself has a lot to do. Body language is up to 13 times more influential than spoken words! “Don’t slouch!” or, “Stand up straight! Science has discovered several postures that can boost your confidence.

†      Find Self-Care that Helps You Relax – When you’re stressed out, you will not feel confident. You should relax by dining out, watching a movie with friends, or doing anything you love to do.

†      Be True to Yourself – Doing what everyone else is doing won’t do anything for your confidence.

It would help if you were yourself to feel truly confident. Admit when you’re wrong, be genuinely interested in people you talk to, and be passionate about what you do.

CHINA’S COVID LOCKDOWNS AND THEIR RIPPLE EFFECT

Dozens of mainland Chinese cities, including the financial hub of Shanghai, have been locked down as authorities work towards their “Zero Covid” policy. The lockdown was enforced from the beginning of April and has dealt a heavy economic blow to China.

The impacts of the lockdown have been far-reaching, and they are:

†      After-effects in other ports: Wreaked havoc at Shanghai, the world’s biggest container port, which is now causing problems at other major ports worldwide.

†      Export slowdown: Chinese export growth slowed to its weakest pace since June 2020

†      Contracted imports: Chinese imports contracted, a sign of weak consumer spending as millions of residents were in lockdown.

†      Impact on Big tech: The supply chains of businesses from big tech to consumer goods have been impacted.

†      Effects on the global economy: As a “manufacturer to the world,” the disruptions in China weigh on the global economy.

Some Chinese cities, including Shanghai, have lifted Covid restrictions, but experts say that the damage has already been done, and global shipping will suffer well into the summer. The Chinese government is trying to get production back on track. Yet many foreign businesses say they’re still unable to resume operations. South Korean exports, a barometer of worldwide demand, grew by double digits in April. However, shipments to China dropped, suggesting China’s slowdown is a product of its Covid restrictions.

“Disruptions to production and deliveries may adversely impact shipments. The output and delivery components in April’s official PMI data deteriorated to the worst levels since the nationwide lockdown in early 2020.” by the Asia Economists Team.

This will exert even more pressure on global supply chains already reeling from Russia’s invasion of Ukraine and keep inflation running hot.

Inflation across the globe

China’s lockdowns triggered inflation. Consumer price growth is forecast to accelerate. Factory gate inflation will likely remain elevated in April. Apart from this, a “complicated and grave” employment situation will persist. Chinese Premier Li Keqiang instructed all government departments and regions to prioritize measures aimed at helping businesses retain jobs and weather the current difficulties. The government of China is working on stimulus packages to meet an economic growth target of about 5.5% this year. Credit data for April due this week will show whether monetary and fiscal support has had the desired effect of stoking borrowing.

U.S. may see high inflation figures; however, it’s projected to have moderated on both a monthly and annual basis, partly reflecting a dip in gasoline prices that have since picked back up. U.S. measure of prices paid to producers in April is slated for release and is expected to show some moderation in the pace of wholesale inflation. Inflation peaked in March at 8.5%, the highest in four decades. Price pressures are expected to remain elevated. Therefore, Federal Reserve officials will steadily lift borrowing costs in the months ahead.

U.K. gross domestic product data for the first quarter might already hint at stalling growth. Economists forecast a 1% increase in U.K. GDP for the first quarter, which may cover a period with no growth in March. Bank of England says that the situation is turning “starkly sour,” with double-digit inflation likely to crush any growth toward the end of the year. The BOE delivered a fourth consecutive rate increase this month.

Asia

In Malaysian markets, inflation remains tame, but economic slowdown risks remain. Officials in Malaysia are taking steps to bolster economic growth in the region.  In India, the Reserve Bank of India hiked the repo rates. After scrutinizing the April inflation data, economists will reassess their policy forecasts.

Europe

Germany’s ZEW gauge of investor expectations was forecast by economists to have dropped further in April from a level that was already the worst since the pandemic erupted in 2020.

Euro-area industrial production for March contracted noticeably.

Inflation reports from the Czech Republic show a new high above 13% for April.

In Russia, economists anticipate inflation may have exceeded 18%. It’s a dramatic surge in the space of just two months, doubling since the invasion of Ukraine. The central bank predicts further price surges. Russia is also reporting bleak trade data pointing to the impact of sanctions on imports and exports.

Latin America

Mexico’s full-month and bi-weekly consumer price data reflects a two-decade high.

With inflation now more than twice the 3% target. It is expected that Banco will raise the key rate to around 8.5%

In Brazil, April’s annual consumer-price reading vaulted past 12%. After raising its key rate to 12.75% on May 4, the central bank signaled that a rate hike is likely for next month.

Argentina’s monthly consumer prices annual pace pushed past 56%. Many local economists see that hitting 60% by year-end.

Peru is battling the fastest inflation in two decades. The central bank is expected to extend a record tightening cycle and raise the key rate to 5%.

IMPROPER ASSESSMENT OF DETENTION FEES CARRIER WAN HAI PENALISED WITH A HEFTY FINE

The Carrier Wan Hai has come to the forefront for the wrong reasons. Wan Hai is paying for an investigation into the detention fees it had wrongly charged against 21 containers in Southern California in 2021. Wan Hai has been forced to cough up USD 850,000.00 as a civil penalty as per the agreement with the US Federal Maritime Commission (FMC) Bureau of Enforcement (BOE)

When is A Detention Fee Imposed?

Detention fees surface in cases where the shippers fail to return an empty container within the time limit specified in the ocean freight contract. The carriers can charge the shipper in such a case. But in the case of the Wan Hai penalty, the shipper complained that the carrier was carrying improper assessment, as they knew that the containers could not be returned “knowing and willingly.”

This is the second major penalty two weeks after Hapag Lloyd was charged USD 822,220.00 in April for the same improper assessment. In the Wan Hai penalty, the FMC’s BOE assessed that 21 empty containers were wrongly charged with detention fees when their owners were offered no return locations or when the designated terminals were not accepting the container chassis or appointments were made unavailable for the containers.

The Findings of the Investigation

In an investigation led by the FMC in December, it was found that invoiced amounts for detention ranged from USD 125.00 to USD 1,550.00. It was noticed as a finding that the shipper had made an earnest attempt to return the containers but was refused to be acknowledged and slapped detention fees instantly as the carrier could not provide them terminal space or even schedule a reappointment. The investigation produced proof by the shipper showing screenshots where they asked the carrier to waive the amount as no promised service was provided, and they were refused.

The Wan Hai penalty follows immediately after the Hapag Lloyd case, which happened in mid-2021, where the drayage operator Golden State Logistics tried to return 11 empty containers but could not do so owing to uncontrollable factors. The judge in the Hapag Lloyd case stated, “it was looking into the ruling and will then decide further legal action.” This pushed forward the Wan Hai penalty as a settlement between BOE and the carrier Wan Hai. The carrier has agreed to pay the fine and no longer collect such detention fees from unnamed parties related to the 21 containers. The agreement said that it is not to be construed as an admission by the carrier on the violations in the December investigation and also stipulates that the BOE will take no further action against the carrier.

Ripple Effect of the Penalty

The CEO of the Harbor Trucking Association, Matt Schrap commented about the decision as “another chink in the armor for carriers on this issue; the veil has been pulled back.” The volume of complaints has risen since March, as the penalties levied in these cases have helped the offended parties file cases involving what they deem improper assessment of detention and demurrage fees by carriers.

As a part of inviting such complaints, the FMC issued a Dec 28 notice as part of an ongoing investigation regarding excess fees with a shipper advisory group urging the commission to investigate further from carriers to terminal operators. Presently, California’s federal and state legislation is actively involved in tackling the issue.

THE NEW JUDICIAL FEE LAW OF THE KINGDOM OF SAUDI ARABIA

 

Recently the Courts and Legal System of the Kingdom of Saudi Arabia introduced a new Royal Decree No. M/16 on 30/1/1443H to amend the judicial cost systems and implement the court fee for the newly filed legal suits. The new Law came into effect on 13th March 2022, encouraging litigants to settle their disputes amicably.

Even though the filing charges are already in existence in most countries, this is the new implementation by the Courts in Saudi Arabia, where there have been no filing charges or court fees since the inception of the Civil Courts in the jurisdiction. Since there were no filing charges earlier, the courts in Saudi Arabia were struggling with voluminous cases, which resulted in lengthy court proceedings and delays in pronouncing decisions.

The new Law applies to all lawsuits, petitions, and requests submitted to the Courts except Criminal Cases, Disciplinary Cases, or Cases relating to the Provision of Bankruptcy Law. The Law also exempts specific categories from paying the court fee, including the claim brought by the employees about their employment contracts and claims commenced by ministries and government bodies.

The new Law, or “Judicial Fee Law,” stipulates the different fees applicable to claims and applications. When the Law sets a certain percentage of the claim amount as the court fee payable for various categories of Civil Suits, including but not limited to the legal suit to nullify the Arbitral Award, the maximum ceiling of court fee is set out is SAR 1,000,000 under all categories. However, the fee shall be reduced to 25% of the fee payable if the parties settle after the first hearing but before the court’s decision in the case, and the balance shall be refunded if paid. Further, the Law also states that if a request results in a change in the estimation of the value of the case, the judicial costs of the case will be calculated based on the estimation of the new value thereof.

The Law also has a provision for refunding the entire amount of Court Fee paid in the event of (1) If the decision or Judgment pronounced in favor of the Plaintiff or the Claimant; Appellant or Applicant; (2) If the Claimant withdraws the claim by the applicable rules before the first hearing; (3) If the Parties settles the dispute before the end of the first hearing; (4) If any Civil claim was raised alongside the Criminal Proceedings and the Civil Claims is settled between the Parties regardless of the stage of the case.

However, it is also to be noted that except in limited circumstances, failure to pay the court fees does not prevent the court from hearing and determining the claim and application.

Chairman’s Message

The first months of 2022 have seen a couple of curveballs thrown our way. The transport and logistics sector has teetered under economic, industrial, and geopolitical pressures.

An Inclement Season

We have seen the rise in fuel prices that have impacted all modes of transportation. The pandemic-induced restrictions in oil production would require time to shake off and scale to capacity. The present Ukraine war has further imperilled the global commodity markets. International sanctions on Russia, one of the largest oil exporters have deepened the situation. All this is in addition to the foregoing supply chain challenges and labor shortages.

The sector witnessed soaring inflation and a weaker dollar. Crude oil prices have reached record levels in the US, and the current volatility exposes the uncertainty in the global energy landscape. There has been a weakening in connectivity between North Asia, including Japan and South Korea, to North America. This has led to more short sea services to China and trans-shipment to trans-Pacific services.

Meanwhile, the closure of the Ukraine – Russia air space would translate to longer lead times, and the impact of this crisis would only be realized in the months to come. Further, China reeling under strict quarantine measures would create further production and transportation disruption. We can expect higher cost pressures, especially between Asia and Europe.

However, consumer demand has seen an uptick in recent months, and this trend will continue. While demand increases, ports have seen increased vessel bunching, berthing delays, and reduced-yard capacity. Carriers are using blank sailings to reduce congestion.

Keys for Success Amidst Rough Times

Again, e-Commerce has been growing, amplifying demand, especially in the US. Experts call on us to focus on localizing the supply chain networks. Success would depend on agile supply chain systems and better forecasting for inventory and delivery. Technology would be a key driver towards achieving this. Companies are increasingly moving to last-mile solutions and crowdsourced delivery agents.

Amidst the human tragedy in Ukraine that is disheartening, the crisis has compelled the shifting of traditional trade routes. For instance, UAE’s food retailers have opted for alternate sourcing from destinations like India, Pakistan, and Australia.

Changes and uncertain times always bring to us not just risks but a platter of opportunities.

At CSS, I believe three actions would become our competitive advantage in these uncertain times. Firstly, we must maintain a strong relationship with key customers. Having our feet on the ground, eyes, and ears on the markets, and our hands quick to act. Thus, we proactively shape the future. Secondly, we must foster an organizational drive towards digital fitness. We must be able to innovate, focusing on cost efficiency and asset productivity. Thereby, we drive our strategic goals into our daily and weekly targets.

Finally, the critical factor in driving the above would be our culture. Building a culture of agility and flexibility would be crucial to achieving the first two paradigms. The Culture Conduit by Steph Honami is a practical take on what helps make human connections work at the office and in everyday life. Our culture drives the core of all our interactions. This often dictates how we conduct our business and personal life. Let us build a culture that makes it easier for people to work together across regions and boundaries.

At CSS, I am confident in our team that is moulded to face tomorrow. The future is challenging which makes it interesting, and with the right attitude, we can surely make it a WIN-WIN situation!

CSS TAKES PART IN THE ICONIC EXPO 2020 DUBAI RUN 3

Hailed as the most iconic Run Event of the year, Expo 2020 Dubai Run 3 was the last opportunity to be a part of one of the landmark events of this era. Never to be left behind, CSS marked our support with the enthusiastic participation of our athletic and agile employees – Emson Tomy (Sales Coordinator), Edhu Krishnan (Sales Coordinator), Ranjith Haridas (Sales Manager-NVOCC), and Shabas CP (BDM-NVOCC).

Expo 2020 Dubai Run 3 lowered the curtain on the hugely successful sporting series on March 26th, which started with Runs 1 and 2.

Resilience in the Face of Challenges

The Dubai Expo 2020 was the biggest event ever held in the Arab world. The event displayed massive resilience in the face of unprecedented challenges. With 192 countries coming together to showcase their nation’s best, Expo 2020 has proved to be an unparalleled amalgam of cultural, educational, and entertainment experiences, attracting nearly 3 million visitors since its launch on October 1st, 2021 successfully completing on March 31st, 2022

A Run for the People and the Planet

The March 20-26 Run was a part of the Programme for People and Planet, which seeks to explore humanity’s challenges and opportunities. 26th March 2022 was the final part of the trilogy for all abilities. In this spirit of optimism, more than 15,000 runners came together for the Expo 2020 Dubai Run 3. This Fun Run series was designed to promote active communities and a healthy lifestyle, attracting runners of all abilities and nationalities.

With the run beginning at 7 am, it was the fastest way to see the whole world in one place, taking in the best of the Expo 2020. The amazing route mapped for the runners went past the international pavilions, the stunning architecture of the Expo’s magnificence in the Sustainability, Mobility, and Opportunity Districts, and finally, the incredible Al Wasl Dome.

The event offered three race lengths to its participants -three km, five km, or ten km. The Minister of Sports of the Grand Duchy of Luxembourg, Georges Engel, joined runners in the Expo 2020 Dubai Run 3 in the morning. He also gave away prizes for winners of the 3, 5, or 10 km fun run. The third and final run of the successful community running series was a unique sporting event. The first two community runs also had resounding success, and Expo 2020 Run 3 was the grand finale of this epic Fun Run series.

The able CSS contingent participated in the 10 km course. All the CSS participants completed the 10 km course. “Finishing a marathon isn’t just an athletic achievement. It is a state of mind that says Anything is Possible!” said John Hanc, the author of “The Coolest Race on Earth”.

We want to commend the CSS runners for their stamina and grit and display sportsmanship spirit.

Bravo Emson, Edhu, Ranjith and Shabas!

UAE TRADERS OPT FOR FOODSTUFF FROM OTHER COUNTRIES TO MAKE UP FOR UKRAINE SHIPMENTS

The Russia-Ukraine conflict has paralyzed not just Ukraine but also many countries. Food supply constraint is a major concern for most of them. Wheat, a key commodity, has seen a sudden surge in its price as Ukraine has been its major exporter. All shipments have been barred, with the strife between the two nations still raging on. UAE foodstuff trader and major retail player Dr. Dhananjay Datar, MD at Al Adil, states that wheat can be brought in from India, Pakistan, and Australia. He also expressed his opinion about the shipments from the Mumbai port, “Yes, rising container costs are a worry, but that’s something all importers in all industries have been dealing with. Our shipment costs are at $950 for a TEU presently. It used to be $50 – $100. The important thing is to absorb the costs and try not to pass them to the customers.

Sky High Container Rates

Roshmon Manoli, Vice President, Freight Forwarding at Consolidated Shipping Services, expressed his views to the Gulf News, “On shipments from Jebel Ali to East Africa – a major food export route from here – carriers are releasing bookings only with a premium.” Shipment premium is based on sea priority and shipping guarantee. The container space situation is tight, and space is available only for bookings made two weeks in advance. The Ukraine situation has impacted cargo ships that pass through the Black Sea and created backlogs at European ports, another reason for higher shipping rates.

Rising Oil Prices

Another factor that has fueled the rocketing food cost is the never-ending rise in oil prices. When the year started, it was $100 a barrel, which spiked to $200 since the invasion of Ukraine.

Farad Mourad, a senior market analyst at XTB MENA, admits that the price hike raises the transport cost for all agricultural products, leading to inflation, which again could affect a country’s monetary policy. “Countries like Egypt could feel a significant impact as it remains largely exposed to the spillover effects of the war in Ukraine. Egypt’s import of agricultural products comes mainly from Russia and Ukraine as they provide 58 percent of cereals and wheat needs. Following this, they have diverted attention towards other producers like France, Canada, and the US. However, these countries could struggle to respond to the rapid increase in demand.”

According to commodity market analysts, the food commodities have started to show an upward pull, and the impact is severe. The Russia-Ukraine invasion has disrupted shipments, with the trade ministry suspending exports of fertilizers.

Steeper rates in oil have directly added to foodstuff production and transportation costs, although vacillating within a smaller band. The escalating geopolitical tensions also have a direct bearing on foodstuff, especially since both Ukraine and Russia are export giants in key food commodities like wheat, corn, and sunflower oil. Wheat futures have soared to a high not seen since the year 2008. The higher prices will eventually affect customers as it proves to be expensive for food makers who are likely to mark up their product pricing.

Wheat or Rice – Which Is Most Affected?

The wheat price has shot higher, making it an expensive food item. Interestingly, rice prices have not risen. As Sudhakar Tomar, President of India Middle East Agro Trade Industry & Investment Forum states, “Rice prices have not risen as much as other grains, but because it is an alternative staple, prices will climb up owing to freight and logistical expenses as well as increased demand.”

The price rise is not restricted to wheat and rice but includes corn and sunflower, which have gone up since February 24th at the onset of the Russian invasion. Sudhakar Tomar added, “Russia and Ukraine are two of the world’s top wheat exporters exporting more than 60 million tons of wheat each year, accounting for 25 percent of global wheat commerce. If the conflict and sanctions continue, the supply chain for food and fertilizers, petroleum, and banking transactions will remain disrupted, causing hardship for millions who rely on imports. Weather problems in Iran, Syria, Iraq, Turkey, and Egypt have exacerbated worldwide wheat shortages.”

ODYSSEY

Rahat Talreja

Vice President – CSS India Operations

…Tring Tring…

Steve, the freight forwarder: Hi it’s Steve

Exporter: Morning Steve, I have urgent cargo to airfreight from Heathrow to

JFK New York

Steve: What’s the tonnage?

Exporter: About 1 ton.

Steve: That’ll be 2 Pounds and 10 cents on British airways.

Exporter: Got that, Steve; sending the cargo today to your warehouse. Has it shipped on the 1st flight?

Steve: Don’t worry about it. We have daily flights to New York from

Heathrow, the cargo won’t wait.

Are you shocked? Not at all. It’s 2022, not 1940. This is a very, very normal conversation in 2022.

So now, let’s see the next conversation, sometime in 2045.

…Tring Tring…

Suzy, the space forwarder on Space Station Mars.

Exporter on Earth: Suzy, it’s Sven from Earth.

Suzy: Sven, how can I help you.

Sven: I got cargo to ship to Mars for my cosmic hotel this week. If you ever need a room, let me know. I got a Mars view room.

Suzy: Thanks, Sven. I have options on Virgin, Space X, Axiom , ESA,

Roscosmos.

Sven: I also have an accompanying technician with the cargo. Tell me the price

Suzy: 60 Million Space Francs

Sven: I’ll have it wired today. You’d like a 50% advance on the Mars account?

Suzy: Sure. Thank you, Sven.

Are you shocked? Yes, but no. We know it’s coming. This is going to be an everyday conversation in the next 20 years.

So as exporters, importers, entrepreneurs, and logistics executives, we ought to know the kind of cargo that will be transported to and fro Earth to Space Stations across the solar system. And the opportunities available for future business ventures and investment.

Protective Suits

Space First Aid Kits

Space batteries for vehicles

Space horn to send signals to other astronauts

Terraforming

Space base construction technology, glues, mortars

Meteorite protection technology

Solar Batteries

Spacecraft Navigation and communication services, repair and insurance

Components and Accessories for Space rockets

Space weapons

Space debris

Space Production: Zero gravitational manufacturing

Space backpacks

Creams and Products for ultraviolet radiation protection, force fields protection.

Components and Accessories for spacecraft, rockets, and space stations

New durable materials for building structures in space like graphene and fullerene

Space energy charging points

Space weather forecasting and remote sensing

Space internet and communication systems

Space tourism: Cosmic Hotels, Hostels, Cosmic Holidays, and Travel

stations, trips to planets, moons, asteroids

Space Taxi

Space sanatoriums

Space Summer schools

Space Healthcare and Therapy for muscle wasting due to lack of gravity

Space Food

Space Law

NORTH ASIAN EXPORTERS ARE UNDER PRESSURE DUE TO HIGHER RATES AND FEWER PORT CALLS

With the drop in direct trans, and Pacific calls with carriers, Japanese and South Korean cargo owners are paying high rates to ship their products to North America. China, however, has been offering transshipment to mainline services. The fall in connectivity has led shippers to use short sea services from Japan and South Korea to China.

The transpacific container volumes have shown a significant fall in 2020 The transpacific calls fell from 400 in 2019 to 350 in 2020. This figure was pegged at Yokohama, Japan’s second-busiest container port. However, it triggered the feeder services connecting ports in China, totaling 1,860 in the same year.

Managing Director at Geodis China, Ivan Siew, said “Carriers have rescheduled their vessels and implemented recovery plans to improve schedule reliability. In some cases, port calls have been cut off from Japan and South Korea. Some routings from Japan to the US West coast will ship via Shanghai. US East Coast services will keep the original ex-Japan/South Korea port schedule.” The spot rate to ship a 40-foot container from Japan to the US West Coast stands at 64 percent, higher than China, while South Korea stands at 32 percent higher. This has compelled most shippers to use short sea services from Japan and South Korea to China, where cargo is shipped to mainline services.

VOLUME DECLINED FROM MAJOR JAPANESE PORTS

The top ports in Japan like — Tokyo, Yokohama, Kobe, Nagoya, and Osaka, showed that volumes plunged in 2020. “Most shippers suffer from space availability, especially to the US West Coast,” said Keiko Kiso, managing director of Rhenus Sankyo Logistics Japan. He further indicated, “From Japan, we have only one direct service — the Far East Pacific 1 (FP1). The situation is worse now, as there have only been three vessels coming to Japan over the past eight weeks.”

AFFORDABLE RATES IN CHINA

Presently the freight rates from Japan to the US West Coast stand at $14,000 per FEU, South Korea to the US West Coast stand at $11,200 per FEU, and China stands at $8500 per FEU. The rates have been provided by the freight rate benchmarking platform Xeneta. Xeneta chief Peter Sand states, “Chinese ports are consolidating cargo before leaving the region. Since May 2021, the rates out of China on the trans-Pacific have become much cheaper than those out of Japan and South Korea.

2020 saw downward plunges in all of Japan’s ports -Tokyo, Kobe, Nagoya, and Osaka while China climbed upwards. The prices per FEU for spot export cargo from Busan to Los Angeles have gone up by 50% in January compared to August last year. At the same time, the prices from Shanghai to Los Angeles were down by 8%. Eunice Yu, Dacshers head of Ocean Freight Asia Pacific, mentioned, “Capacity from Busan and Japanese ports is always tight. Most of the time, Busan serves as the call on the trans-Pacific trade, so carriers tend to drop the Busan call to catch up on overall service reliability.”

SURGE IN RO-RO VOLUMES AT NORTHWEST SEAPORT ALLIANCE

The Northwest Seaport Alliance (NWSA) saw a surge in roll-on/roll-off (Ro/Ro) volumes from cargo out of boxes, with the increasing trend of port congestion and high container rates in 2021. The overall breakbulk volumes are up by 25 percent, with port executives expecting the movement to strengthen in 2022. The NWSA is a marine cargo operating partnership of the Port of Seattle and Port of Tacoma and manages the container, breakbulk, auto, and some bulk terminals in Seattle and Tacoma. This partnership also connects to the second-largest concentration of distribution centers on the West Coast.

Andre Elmaleh, senior manager of non-container business development at Northwest Seaport Alliance, spoke about this scenario, “The surge in the breakbulk tonnage is driven by rate increase on containers. The big factor is the increase in the rates in the trans-Pacific trade for container ships”.

RORO – A FASTER ALTERNATIVE

The supply chain conundrum changed the scenario from container ships being the transport mode of choice for many RO-RO shippers. Elmaleh explained, “Ro-ro became more reliable, faster, and cheaper to the benefit of NWSA.”

The NSWA is slated to top its 2021 breakbulk volume in 2022. Elmaleh states, “Our customers indicate another record year, with a potential 10 percent improvement over 2021. RO-RO becomes more reliable, faster, and cheaper.” The ports handled 246,411 MT breakbulk in 2019, which shot up to 25.6 percent in 2020, which again grew to 366,184 MT in 2021. So the numbers speak for themselves. Companies like Caterpillar, John Deere, and Case New Holland Industrial, predict an increased demand for their goods. Growth is expected in all sectors, including construction and agricultural equipment. The NWSA operates breakbulk terminals handling automobiles and heavy cargo. “We attract RO-RO carriers but do not work on traditional lift-on, lift-off high, and heavy project cargoes,” Elmaleh added.

As per port data, RO-RO construction equipment constituted 67 percent of 2021 tonnage. Some RO-RO carriers involve EUKOR car carriers, Hyundai Glovis, MOL RO-RO, K-Line Ro-Ro, and NYK Ro-Ro.