PROJECT- ROUTE 2020

A part of the leadership’s vision to promote the UAE’s sustainable development, “Route 2020 Project” is a part of Roads and Transport Authority’s (RTA) master plan to provide integrated multi-modal mass transit systems comprising metros, tram, buses, and marine transport.

Focused on building a globally benchmarked infrastructure and services, it aims to meet UAE’s aspirations themed “Towards the Next 50 Years”. Inaugurated by H.H Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai by unveiling an artwork inspired by the phrase “I believe in God” written in Arabic and taken from His Highness poem “The Beginning of the Fifty”, the ceremony was attended by H.H Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai, H.H Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, H.H Sheikh Ahmed Bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority and CEO and Chairman of the Emirates Group, H.H Sheikh Ahmed Bin Mohammed Bin Rashid Al Maktoum, Chairman of Dubai Media Council.

“The UAE has exceptional goals and ambitions. Today we are moving with confidence, determination, and a clear vision to attain the highest levels of excellence in various fields. Our objective is to provide people with everything that ensures their well-being, stability, and happiness and establishes a prosperous future for the coming generations. The world is entering a phase that brings unprecedented challenges that some may not be prepared to deal with. However, we have a strategy designed to tide over unforeseen challenges and create a positive future. Our nation is equipped with the plans, competencies, and expertise needed to navigate these challenging global circumstances. We can overcome all obstacles while sustaining our progress and generating new opportunities,” said Sheikh Mohammed.

The AED11 billion Route 2020 project links seven stations and is a 15 km extension of the Dubai Metro Red Line from Jebel Ali Station to Expo 2020 Station and is scheduled to open to the public in September this year.

The brainchild of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Dubai Metro, and Route 2020 reflects His Highness’ belief that the superior Metro infrastructure system serves as the backbone of transit systems connecting the key areas of Dubai.

Route 2020 has 46,000 riders per hour in both directions (23,000 riders per hour per direction). RTA’s studies expect the number of riders using Route 2020 to reach 125,000 per day in 2021, and 275,000 riders per day by 2030.

The Expo 2020 Station is expected to record about 35,000 Expo visitors during weekdays and increase to 47,000 during weekends. This number accounts for 29% of the total expected number of daily visitors of the Expo”, explained Al Tayer. The new project aims at creating a vital future link between several Dubai communities and serves as a symbol of sustainability, progress, and innovation for present and future generations.

MOHAMMED AL TUWAIJRI NOMINATED AS DIRECTOR GENERAL AT WTO

Saudi Arabia’s former minister for Economy and Planning, Mohammed Al Tuwaijri, has been nominated for the position of Director General at the World Trade Organisation (WTO). Mohammed Al Tuwaijri had been the head of risk management at Saudi British Bank before becoming the Managing Director and CEO of JP Morgan Saudi Arabia, after which he moved on to serve as the Group Managing Director, Deputy Chairman, and CEO of HSBC Bank Middle East and North Africa.

He was the kingdom’s minister of economy and planning from 2016, before being relieved in March. As a minister, Al Tuwaijri oversaw sweeping changes the economy initiated as part of Vision 2030, which has set a target of raising the private sector’s contribution to the GDP of 65 percent from its current 40 percent.

In an interview with Al Arabiya at this year’s World Economic Forum in Davos, Al Tuwaijri stressed the importance of the non-oil sector in securing growth. The race is on to lead the World Trade Organization out of the worst crisis that it has faced in its 25 years of existence. “We care to increase the local content and provide jobs when looking into the economic growth, and this is one of the main objectives of Vision 2030, from the privatization program to the industry program,” he stated.

Responsibilities endowed

The newly appointed leader will be entrusted with the task of rebuilding the trust and credibility of the organization, rebooting its deadlocked negotiating agenda, and restoring its paralyzed dispute settlement system keeping in mind the worldwide recession, the pandemic strike, the US-China battle for trade supremacy, an American election season, and also against Brexit’s threats to add instability in the economic relationship between the UK and the European Union.

DR. JINAN AL OMRAN AS DIRECTOR OF SUPPLY AND LOGISTICS

Saudi Arabia has yet another feather in its cap. Dr. Jinan Al Omran was appointed as the Director of Supply and Logistics in Prince Sultan Military Medical City, becoming the first woman appointed to head logistics in this sector.

Dr. Jinan stated that the state has helped women assume responsibilities in areas like construction and, therefore, stress their intention to work in the Supply and Logistics Department to achieve leadership aspirations. Dr. Jinan also pointed out the long term and short-term plans to improve the supply chain of medicines, medical and surgical materials, and non-medical materials in transportation, storage, packaging, distribution, and all logistical services to ensure the supply chain localization and focus on digital transformation. She further emphasized that these goals can be achieved only with team spirit, development of all skills, and strengthening mechanism for developing the performance of management that I aspire to be the perfect model among the catering and logistics departments in all sectors.

Logistics – the backbone of global trade

The growth of logistics services in Saudi Arabia and the Middle East is one of the most developed areas and accounts for up to 40%, making it sure that the logistics industry is the backbone of global trade. Employing 15% and 20% of the workforce in developed countries, this sector plays a vital role in the Vision 2030 strategy.

Dr. Jinan Al Omran has also hailed the appointing women leaders in catering, supply chains, and logistics services. It is a very promising venture that accommodates diligent and ambitious talents from among men and women without any exception.

She further added, “The aspirations of the Saudi citizen have no limits. We, as women, are part of the ambitious nation. We have a passion to work together, to keep pace with aspirations to achieve the best”.

FROM ‘FREEZER FARMS’ TO JETS, LOGISTICS OPERATORS

PREPARE FOR A COVID-19 VACCINE

Logistics providers are building giant cold-storage facilities, or “freezer farms,” and lining up equipment and transportation capacity as they gear up for the rapid delivery of millions of doses of potential coronavirus vaccines worldwide.

Drugmakers have been racing to build supply chains for their coronavirus vaccine candidates, finding manufacturing sites, and ordering specialized production equipment. As some drugs advance to final-stage clinical trials, logistics providers are making preparations to deliver them securely.

The distribution operation—taking drugs from far-flung manufacturing sites to medical teams via warehouses, cargo terminals, airports, and final storage points, all in a matter of days—promises to be a logistics high-wire act with risks at every stage. Breakdowns in refrigeration equipment, transportation delays, broken packaging, or other mishaps could leave many thousands of doses useless.

Drugmakers with vaccines in final-stage clinical trials expect their products to require strict temperature controls. Moderna Inc. said it expects its vaccine to require minus 20 degrees Celsius storage. Pfizer Inc. said the vaccine it is developing with German partner BioNTech SE will probably have to be stored at minus 70 degrees Celsius, plus or minus 10 degrees. AstraZeneca PLC said it expects the vaccine to develop with University of Oxford researchers to require refrigeration, but declined to give details.

Logistics operators have been expanding their refrigeration and freezing capabilities in recent years, particularly as the health-care industry has grown, and pharmaceutical transport has become a more significant business.

ADNOC L&S AND WANHUA CHEMICAL GROUP FORM SHIPPING JOINT VENTURE

ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics subsidiary of the Abu Dhabi National Oil Company (ADNOC), has announced the formation of a new strategic joint venture (JV) with Wanhua Chemical Group (Wanhua).

The new company named AW Shipping Limited is incorporated in Abu Dhabi Global Market (ADGM) in the United Arab Emirates (UAE).

This strategic JV agreement further strengthens the collaboration between ADNOC and Chinese companies and builds on the deep-rooted bilateral relations between China and the UAE. The JV underscores ADNOC’s focus on value-creating deals and will support the delivery of its 2030 smart growth strategy.

AW Shipping Limited (AW Shipping) will own and operate a fleet of huge gas carriers (VLGCs) and modern product tankers. The company will be responsible for transporting LPG cargoes and other petroleum products, sourced from the ADNOC Group and global suppliers to Wanhua Group’s manufacturing bases in China and around the world. To deliver maximum fleet efficiency, the company may also pursue other market opportunities.

H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said: “We are very pleased to establish this strategic joint venture with Wanhua Chemical Group. This creative win-win partnership strengthens our growing relationship and will deliver greater value and efficiency for both our organizations.”

Mr. Liao Zengtai, Chairman of Wanhua Chemical Group, said: “We are very glad that joint venture has been established with the concerted efforts of both parties. The new company will strengthen the strategic cooperation between ADNOC and Wanhua and will also ensure the stable supply of LPG cargoes and other petroleum products for Wanhua system. More importantly, the cooperation will make contribution to the “One Belt, One Road” project.”

ADNOC L&S was formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and ESNAAD. The integration created synergies between shipping, marine services, offshore logistics, and onshore logistics to create the largest integrated shipping and maritime logistics company in the GCC. ADNOC L&S provides safe, reliable, and cost-competitive maritime and logistic solutions to ADNOC Group companies and more than 100 global customers.

Wanhua Group is one of the world’s leading producers for methylene diphenyl diisocyanate (MDI). It is a key ingredient in the manufacture of high-performance adhesives, and synthetic fibers go into a wide range of industries.

UAE’S FIRST “E- DELIVERY ORDER” INTRODUCED BY DUBAI TRADE

The “Electronic Delivery Order” has been introduced by Dubai Trade, DP World’s single window platform for cross border trade. This sophisticated new technological tool will allow supply chain stakeholders to handle complex import processes with the click of a mouse.

Beneficial in COVID Times

The E-Delivery Order is tailored to support trade, logistics, and supply chain players from the pandemic’s operational disruptions. With the new highly digitized process in place, shipping agents, freight forwarders, and Beneficial Cargo Owners (BCO’s) can avoid over the counter operations that require physical visits.

The company has successfully processed more than 17,000 transactions for 1400+ customers and aims to keep growing and adding to this number. Few of the global customers who have availed of Dubai Trade’s services include shipping agents Ocean Network Express, Peninsula Shipping, Hapag Lloyd Middle East, Gulf Agency Company (GAC), and top freight forwarders Globelink West Star Shipping Kuehne+Nagel and Freight Systems DWC. The E-Delivery Order promises and delivers a cost-effective, efficient, and time-saving mechanism on the Dubai Trade Portal to users from the safety of their homes.

Mohammed Al Muallem, the CEO and Managing Director, DP World, UAE Region, said, “Adapting to new technological innovations in the trade and logistics industry has become imperative in these days of global uncertainties created by the COVID-19 pandemic.”

Dubai Trade’s “E-Delivery Order” minimizes cargo clearance turnaround time, increases competitiveness, eliminates paperwork, creates greater visibility in cargo flow, thus liberating the UAE’s trading community from the inefficiencies of manual intervention and related costs.

Hussain Alblooshi, Chief Operating Officer of Dubai Trade, added, “We have always been pro-active when it comes to innovation for companies using the Dubai Trade e-platform and aim to provide unparalleled trade solutions in the UAE. We are proud to introduce a country-first Electronic Delivery Order in the UAE’s trade ecosystem. This automation will make the existing manual process redundant and reduce the operational costs while helping the company adopt sustainable delivery processes. Our customers will be happy to know that the new system eliminates 80% of paperwork and physical visits and cuts turnaround time by a similar count. Additionally, customers will experience seamless automated payment collections and reconciliations, lower overhead costs, and costs related to operating counters.”

Throughout history, Dubai Trade has been known for its best-in-class e-services and its ability to integrate various trade and logistics service providers in Dubai under a single window. Indeed the “E-Delivery Order” marks a step forward in digitizing the management of logistics to increase the resilience of the trade and logistics sector, which has been classified as an essential service by the UAE government.

TENTATIVE SIGNS OF RECOVERY IN THE UAE

IN THE MONTH OF JUNE

For the first time since March 2020, the private sector activity recorded improvements in June. This has been due to ease in restrictions that had been initially imposed due to the COVID-19 pandemic. Though there has been a tentative rise in work orders, a reduced workforce is being done due to the pandemic. According to the latest Purchasing Manager Index (PMI) issued by the research firm-IHS, Markit, “Confidence about the business outlook continued to improve, reaching the highest since March.”

Hopeful signs with June scores

David Owen, an economist with the IHS Markit, has stated, “The latest survey data offered hopeful signs for the Dubai non-oil private sector.”

The IHS Markit numbers show the immediate beneficiaries to be the construction sector, wholesale, and retail sectors for the first time since March as they have shown significant “activity growth.” These sectors have benefitted from the ease of restrictions, while the travel and tourism industry did not show a positive note.

Another significant point that cannot be missed is that though more orders keep coming in, severely hit firm had laid off staff due to the pressure to lower costs. Since March, the drop in employment has been sharp and broadly in line with the average. This led to a record low in April, thereby showing that the business expectations were much weaker than before the onset of the COVID-19 pandemic.

Owen reaffirmed, “Firms direly need a boost to cash flow, as many have been left struggling with low revenues and high-cost burdens in June.”

Comparatively, June’s 50 scores showed significant improvement on May’s 46 reading. A score below 50 signifies an economy and business activity in contraction mode.

COVID-19 RESHAPING THE WORLD OF LOGISTICS

With an increasingly interconnected global economy, the impact of the pandemic is widespread. With the overall decline in economic activity, even large corporates are beginning to feel the heat. The governments’ wide range of containment measures has resulted in the shutdown of manufacturing and labor disruption through enforced isolations, travel bans, and border controls.

The pandemic made organizations rethink ways to reposition the supply chain to be more resilient in future threats and disruption.

The key areas are:

1. Safeguarding employees: Employee’s physical and mental wellbeing is to be taken care of. Exercise best in practice corporate social responsibility (CSR) for employee stability. A backup plan should be in place to help affected staff, including increased automation, remote working arrangements, and other flexible resourcing in response to constraints.

2. Assessing supplier risk: A response team needs to be created to facilitate an open and consistent flow of accurate information between key stakeholders, maintain stakeholder confidence, and also to focus on supply chain assessment and risk management. The response team should be able to use alternative modes of transportation and conduct trade-offs according to the needs, cost, service, and risk scenario analysis. Regularly reviewing contracts with key customers and suppliers helps understand the liability involved in the event of the supply shortage. Maintaining a value chain assessment of other risk factors involved helps to understand the reasons for escalating costs.

3. Managing working capital and business plans: It is important to revise cash flow, working capital management, and inventory to predict demand and supply conditions. Review organization-wide sales and operations planning and integrated business strategies to ensure tactical and strategic business planning gets synchronized amongst all business functions. Businesses with data-rich environments can harness procurement, operations, and research and development (R & D) using advanced simulations to identify optimum performance trade-offs.

4. Micro supply chains: The existing model of supply chains is such that the reduction of costs has led to the creation of large, integrated, global networks that gain profit through outsourcing manufacturing to emerging economies backed by long term contracts. However, the pandemic and the increasing trade tensions are encouraging organizations to question the best operating model. At this point, they need to consider the benefit of shifting their present operating model towards micro supply chains.

5. Collaborative supplier relationship: The pandemic simulated environment can be used as a platform with time and investment to build a foundation of trust and transparency that leads to a collaborative relationship with critical suppliers. A shared vision of goals, motivations, and partnerships develops organizational resilience.

DIVERSIFIED SUPPLY CHAIN-QATAR’S ANSWER DURING THE PANDEMIC

The global supply chain system had already been a victim of the rising tide of economic nationalism and protectionism. The COVID-19 pandemic only added to the stress on the already suffering economy.

Speaking at the opening of the digital roundtable “Qatar at the Crossroads of the World” organized by The Business Year (TBY), H E Ahmad Al Sayed, Minister of State and Chairman of QFZA stated, “Qatar and the Qatar Free Zones Authority (QFZA) had a head start in dealing with the coronavirus crisis due to the country’s experience, and has greatly benefited from its diversified supply chain.”

He further added, “Cost-efficiency can no longer be the only guiding principle of the supply chain. And the world must now ensure that supply chains deliver value for money and have resilience built-in that they are resistant to their future disruption, so the global economy can keep moving.”

The need to accept the added complications by building resilience in the supply chain and maintaining the customers’ operational efficiency is the need for the hour.

The roundtable also featured many experts like the international trade leaders from the United Nations on Trade and Development and World Economic Forum and representatives from the Pharmaceutical, Food, and Beverages, and Logistics sector.

Al Sayed also emphasized that Qatar and QFZA had already diversified the supply chain to ensure the world and Qatar remain connected. For this, they have a tried and tested system that proved its worth during the pandemic. He pointed out the various opportunities available at QFZA included new infrastructures with tailor-made solutions, support for the Qatar 2020 Legacy Project, and the opportunity to partner with top Qatari companies like Qatar Airways and Qatar Petroleum.

As the pandemic leads to disruption and shift in the existing business models, it is ideal for increasing reliance on technology and innovation. This would only help accelerate Qatar’s diversification efforts, said Lim Meng Hui, CEO of QFZA.

Hence the Free Zones are now focusing on creating partnerships with non-oil sector companies. He further added, “We continue to study this development, and we hope to develop new policies and strategies. Post COVID-19, emerging technologies, and advanced industries sectors are expected to grow even more. We have already identified these as strategic areas for QFZA, and we will continue to identify innovative companies in these areas, such as IoT, electric vehicles, and more”.

Hui added that the QFZA plans to expand to new areas such as logistics, e-commerce, regional distribution, and small-scale production in certain value chains.

Ayse Valentin, CEO of TBY, who was present during the webinar, stressed the role of Free zones in attracting direct foreign investment to develop a balanced, diversified economy.

She also stated that global trade is currently facing a harsh period due to the COVID-19 pandemic and rising protectionism by the governments.

7 KEY AREAS TO BOOST INDIA’S EASE OF DOING BUSINESS RANKINGS BY THE CII

The exorbitant logistics cost has always been the bane while doing business. Confederation of Indian Industry (CII), the industry body has highlighted this as a deterrent in India’s mission to be a self-reliant nation.

Mr. Chandrjit Banerjee, Director General, CII said, “While many policies have been announced for a facilitative investment climate, effective translation into ground-level outcomes will help investor perceptions and further boost confidence. We believe that taking the ease of doing business route can unlock huge potential when the world is seeking new investment opportunities”.

The premier industry body also stated, “India’s high logistics costs impact its competitiveness. This will require medium-term action such as increasing the share of railways and waterways in transport, improving first mile and last-mile connectivity and reducing port dwell time. Cross subsidization of freight should be rationalized.”

More outcome-oriented action on Ease of Doing Business (EODB) is the route to India’s mission of self-reliance and should be the way forward. Sustaining this reform momentum can drive in new investments, including overseas investment.

If strong measures are taken up in the following seven areas, it can pave the way for the reduction of cost and time, making the Indian industry competitive.

1. Single Window System
Effective implementation of an online Single Window system is needed for strengthening EODB.

2. Regular Monitoring
Single interface, regular monitoring by the Chief Secretary of a state, and time-bound approvals are to be implemented in all states.

3. Compliance
Compliances for labor regulations need to be speeded up at lower costs for which a quick and low-cost trade facilitation mechanism should be in force. For example, the states can follow the example of Uttar Pradesh by exempting the industry from specific labor laws for three years.

4. Digital Reforms
Digital reforms like virtual court proceedings, e-filing, and work from home could help speed up the court deliberations and the challenges faced while enforcing contracts due to insufficient commercial courts and infrastructure.

5. Inspections
Computerized risk-based inspections, synchronized joint inspections, and differentiated inspection requirements for low-risk industries reduce the inspection burden on companies.

6. Exemptions
The CII has also suggested that the MSME sector be exempted from approvals and inspections for three years under state laws while following all rules.

7. Self-Certification
For those MSMEs with a good track record, a self-certification route can help for renewals and approvals.

The latest World Bank report reveals that India’s ranking has significantly improved from 142nd to 63rd. This leap of 79 positions is due to the series of reforms across various areas introduced by the Central and State

PEAK PERFORMANCE – QATARI PORTS MARK 100% INCREASE IN CARGO

The COVID-19 outbreak has not affected the strong performance of the maritime sector. Qatari Ports exhibited excellent all-round performance in the first quarter, showing a 100 percent increase in cargo handling this year.

Compared to last year, the ports – Hamad Port, Ruwais Port, and Doha Port registered a 102 percent increase in general cargo handling during the first six months. The first six months witnessed 1,509 ships being docked at Hamad Port, Doha Port, and Ruwais Port, marking it the busiest period in Qatar’s maritime sector. During the first six months this year, the ports took in 727,716 tonnes of general cargo, while in 2019, the figures stood at 360,644 tonnes.

According to the official twitter account of Mwani Qatar, 32,799 vehicle units and 305,504 livestock were handled during this period. During the first half of the year 2019, the port received 673,399 containers. This indicates a 2 percent increase this year. This year the ports handled 110,398 tonnes of building materials in the first quarter, which stood at 37 percent growth compared to 2019.

The measures taken by the port authorities, along with the Ministry of Public Health were way ahead as the pandemic started in China. This is one reason why the maritime sector has significantly managed to remain safe in these turbulent times. These measures covered the installation of thermal cameras and container sanitization, necessitating the submission of COVID-19 disclosures and IMO accredited medical declaration by ship agents and educating the workforce on necessary means to limit the spread of the virus. the workforce on compulsory means to limit the spread of the virus.

CORONA VIRUS: INVOCATION OF FORCE MAJEURE CLAUSE

TO AVOID LIABILITY FOR NON PERFORMANCE OF OBLIGATIONS UNDER THE CONTRACT

The outbreak of Corona Virus in China, for the last few months, has affected the lives of numerous people which also resulted in the loss of their life, that the World Health Organisation (WHO), on January 2020, declared that the outbreak of this Corona Virus constituted a “Public Health Emergency of International Concern.” The term “Public Health Emergency of International Concern” (otherwise termed as PHEIC) is defined under the International Health Regulations, 2005 as an “extraordinary event which is determined, as provided in these regulations – (1) to constitute a public health risk to other States through the International spread of disease; (2) to potentially require a coordinated international response.

As the said virus continues to spread across China and under the PHEIC declaration by WHO, many International Companies, including the governments, have started to impose business/travel restrictions on their citizens to travel until the current situation stabilizes. Many Governments have also announced the suspension of new visas to those who hold PRC Passports and have also banned entry to those citizens who have visited China in the last couple of weeks. These restrictions have put all the business entities both in China as well as other Countries in a problematic state since China is the second largest economic power and this unexpected outbreak of Corona Virus and its consequences have largely restricted the Individuals to stay at home to avoid spreading of the virus

that has directly / indirectly affected the performance of obligations by the Companies who are bound by various contracts with National /International entities. As the outbreak of the Corona Virus continues, it is likely that the trading business to and from China will continue to be affected, not only because the unavailability of the International / Domestic transport facilities but also because the factory workers have been asked to stay at home to avoid the widespread of the virus. Many companies who had been engaged in business with the Chinese Companies are forced to stop production because they struggle to obtain the required raw materials from China.

In fear of failure to perform contractual obligations that might make them accountable towards the other Party to the Contract, many Companies in and outside China have already commenced looking into the possibility to invoke the Force Majeure Clause in their Contracts / Agreements.

Most of the business contracts include the Force Majeure Clause so that the Parties can either suspend, limit or even terminate their performance of obligations imposed on them under the Contract if any Force Majeure events like any natural Disaster, War, Strike, Act of God occurs unexpectedly, which lawfully excuses their non-performance and/or delay in performance of their obligation under the Contract. However, this Clause is often included with insufficient thought being given as to whether they are appropriate for the Contract or not.

Usually, to invoke the Force Majeure Clause, the Party to the Contract must consider:
a. The performance obligation of the Party invoking the Force Majeure Clause under the Contract;
b. The impact of the Force Majeure Event on their ability to perform the obligations;
c. Whether there are any steps the Parties can take to mitigate or minimize the impact of the Force Majeure event on their obligations, including considering alternative methods performing their obligations under the Contract;
d. Whether the Force Majeure event falls within the scope of the Force Majeure clause of the Contract and whether it can and should be invoked and;
e. If so, what are the requirements, in particular the notice requirement that must be complied with.

In short, the Force Majeure Clause should hold all the Parties safe from any liability for Non-performance, following the Force Majeure Event. Further, the Party invoking the Force Majeure Clause in its Contract must be able to convince that there are no alternative means for performing its obligations or that the Party has taken all reasonable steps to avoid the Clause’s operation. As such whether the Force Majeure Clause in the Contract includes the outbreak of Corona virus and the hindrances due to its outbreak shall depend on the wording of the Clause, steps were taken by the Party who wish to invoke the force majeure Clause to avoid the maximum hindrances, and whether the outbreak constitutes a foreseeable incident.

Many criticizers have suggested that if the parties have entered into a contract with a Force Majeure Clause after the SARS outbreak, it may have been foreseeable that a similar virus could occur again. Then the parties may not be entitled to any relief.

Also, a problem arises when a Contract does not mention a Force Majeure Clause. It is also to be noted that the English Common Law does not imply the Principle of Force Majeure, unless it is specifically mentioned in the Contract itself. However, even where there is no Force Majeure Clause in the Contract, it does not mean that there are no grounds to excuse the performance. The parties whose Contracts do not explicitly contain a Force Majeure Clause, but is governed by the English Law, may opt to invoke the Doctrine of Frustration, which means that if a contract becomes impossible to perform through no fault of either Party, the Contract may be automatically terminated. However, the conditions to prove the existence of Doctrine of Frustration is severe than that included in the Principle of Force Majeure and these conditions shall include –
a. The terms and Condition of the Contract;
b. The factual background to the Contract;
c. The Parties’ knowledge and expectation about the risk when entering into the Contract;
d. The Parties’ calculations as to the ability to perform the Contract in the circumstances which are said to have frustrated the Contract.

In addition to the above-mentioned points of differentiation, the Principle of Force Majeure allows the Parties to suspend the performance of the obligation instead of the complete termination; the Doctrine of Frustration permanently put an end to the obligations between the Parties except for those obligations that had been earned before such termination.

In any case, whether the Party’s obligation under a Contract is hindered due to the widespread of Corona Virus or for any other unforeseen reason, the Party invoking the Force Majeure Clause shall rely on such facts which would help them to prove that they have been prevented or hindered from performing the Contract as a result of such unforeseen Force Majeure Event. In other words, there must be a causal connection between the Force Majeure event and the inability to perform the obligation under the Contract. Further, the companies may, in the future, also opt to include the term “Epidemic” and “Pandemic” in the Force Majeure Clause.

Furthermore, since the World Health Organisation has also declared this outbreak of Corona Virus as the “Public Health Emergency,” the Courts shall also take into consideration WHO’s declaration while deciding on any case against any Company that has invoked the Force Majeure Clause in this scenario.

CHAIRMAN’S MESSAGE

As we face the unprecedented events in the wake of the Covid-19 pandemic, the scale and scope of these happenings are what the world has never witnessed before.

The small South Indian state of Kerala has been lauded around the world for its quick, effective, decisive yet compassionate response to the Covid-19 crisis. Being the state which reported the first case of Covid-19 in India, Kerala topped the chart of positive coronavirus infections at the onset. But the leadership took swift action and the state managed to “flatten the curve” paving the way for the other states and even first world countries to emulate its course of action. Now, as it battles the second wave with increasing rate of infections, Kerala remains determined to battle the pandemic and protect its people.

COVID-19 will fuel the next wave of innovation

This global pandemic will shape businesses for decades to come. With the entire world in lockdown mode, the global economy is being put to a severe litmus test. The reality of recession looms like black clouds and it seems but inevitable. This is a time of great changes and also a unique opportunity.

Difficult times produce great people. Our resilience in a period like this can win us the credibility that will last us a lifetime and more.

Growth in the time of stress

Black swan events like recessions and pandemics have changed the trajectory of governments, economies and businesses — altering the course of history. The Black Death in the 1300s brought the end to the feudal system in Europe and brought in the modern employment contract. The recession that resulted after the 100-year war between England and France improved agricultural productivity. Fast-forward to recent history, the SARS breakout of 2002-2004 caused the meteoric rise of the small e-commerce company, Ali Baba. Air BnB and Uber became popular in the West with the recession of 2008, pushing people to share their resources.

With Covid-19, we are already seeing the early signs of change. Remote working and telecommuting have become the norm. Supply chains of the future will be resilient ecosystems constructed using cutting edge technologies such as 5G, robotics, IoT and blockchain to help connect multiple buyers with multiple vendors reliably across a network of supply chains.

We are here to run a marathon and not a sprint.

As a company, we will move forward ever and backwards never

CSS MARKS ITS 25TH ANNIVERSARY WITH A NEW OFFICE IN HAMRIYAH FREE ZONE

An ancient Chinese proverb says, “A journey of many miles begins with a single step”. The CSS Group as we know today had humble beginnings with T S Kaladharan setting foot on UAE soil 25 years ago. Today, CSS stands tall in the world of logistics with excellence in operations underscored by ceaseless energy and unrelenting passion in providing unmatched services to our growing customer base.

With an expanding network of operations that spans the Middle East and South Asia, CSS has offices in more than 14 locations across the region. Over the last two decades, our superlative quality of work and ceaseless commitment to excellence has made CSS synonymous with trust and a name to reckon with in the logistics industry.

The 25th anniversary is a significant milestone, and we marked it with the inauguration of our new branch in the Hamriyah Free Zone (HFZ). CSS Kingston at HFZ has been fully operational since 1st June 2020. It provides the full range of logistics services from freight forwarding, air freight, ocean freight, land transport, warehousing & distribution, supply chain management, reverse logistics to multimodal transportation, moving & relocation and much more. Every service can be fully customised to cater to customer demands so that their operations can happen unhindered.

Located in the emirate of Sharjah, Hamriyah Free Zone (HFZ) is the second-largest Free Zone in the United Arab Emirates. More than 6,700 businesses from over 157 countries across various verticals like petrochemicals, steel, construction and food processing operate out of HFZ.

CSS chose the Hamriyah Free Zone as part of its expansion plans as HFZ is a sought-after regional base by global investors due to its strategic location. It connects the major trade routes through Asia, Europe and Africa and provides us unrestricted access to a growing market of over two billion people. HFZ was awarded the prestigious Superbrand Status in 2017 by the global Superbrands Council, and CSS Kingston is proud to set up base in one of the premium business destinations in the UAE.

We look forward to the next leg of our journey, surmounting the new challenges with dauntless courage, uncompromising adherence to integrity and a renewed commitment to excellence.

CSS TAKES PART IN THE EXPORTERS GROUP MEETING ORGANIZED BY DUBAI EXPORTS

The Exporters Group Meeting was held on 15th January 2020 under the aegis of Dubai Exports, an agency of the Department of Economic Development, Government of Dubai. The government body works with a commitment to grow exports on a world-scale by strategically working with export organizations in Dubai and across the UAE.

A grand award ceremony for UAE exporters was also part of the event that took place at the Grand Hyatt, Dubai. The agenda for the meeting also included the sharing of the calendar featuring the upcoming events organized by Dubai Exports both in the UAE and abroad.

Consolidated Shipping Services (CSS) Group was represented by Mr Santanu Datta, Assistant General Manager Business Development and Mr Ajay Krishnan, COO-Freight Forwarding. The event proved to be a great opportunity to meet prospective customers and for strategic networking.

Mr Santanu Datta hailed the program emphatically stating, “Networking helps when you meet right people in the right time”. Mr Krishnan echoed the same sentiments saying, “An excellent event for networking, it gave us an in-depth insight into the various initiatives planned by both government mandates and by private entities. We look forward to attending the next one.”

With a vision to become a world-class export development agency, Dubai Exports provides constant guidance, advice and practical support to both overseas buyers and suppliers thereby ensuring the success of the exports sector in Dubai and the UAE. Their long-term growth strategies help businesses expand and maximise their growth by taking advantage of Dubai’s strategic location as a natural trade gateway between the East and the West.
Dubai has been hailed as the global export hub with incomparable facilities and a logistics infrastructure that stands unrivalled in the Middle East and matches the best in the world. The services offered by Dubai Exports include providing trade information, branding advice, financial, legal and foreign trade representation and access to potential buyers. The agency works in close connection with other Government Departments to do way with any red tape and to simplify the export process.

As a top player in freight forwarding and one of the fastest growing NVOCCs in the MENA and South Asia regions, CSS has been a strategic local partner with Dubai Exports. CSS provides several value-added services to Dubai Exports Members which include dedicated account manager, free information/updates on shipping & logistics, packing, ocean, air & land, freight to transports and other services and more. For selected services, CSS also offers preferential packages apart from the free trade advisory services. This support extended is in line with Dubai Exports’ mission to empower and diversify Dubai’s economic growth by offering pioneering export-related services to business houses.

OFFICE AND WAREHOUSE SANITIZATION DRIVE

Within a few weeks of its emergence, the novel coronavirus has created unprecedented impact on the way people live and work across the globe. While most of our staff are supporting remotely, we need to keep our premises open to facilitate business continuity. As champions of a great work experience, we want to help everyone stay healthy in the office while sharing common workspaces.

At CSS, we lay great emphasis on the health and wellbeing of all our employees. We believe in creating a healthy work culture that will enable us to surmount the challenges that COVID-19 has presented and beyond.For this purpose, we organized an office sanitization drive to help navigate this critical phase of our fight against the unknown and unseen enemy.

Good cleaning and disinfection routines can greatly reduce or eliminate the viral count of COVID-19 on surfaces and objects in the offices and warehouses.

All our offices/facilities in Jebel Ali (HQ & CSLC-1), the office & warehouse premises are being cleaned and sanitized by our housekeeping personnel. We adhere to the best disinfection practices recommended by government bodies worldwide to ensure that our workspaces and warehouses are completely safe and sanitized, always.

LOGISTICS OPPORTUNITIES IN THE NORTHERN EMIRATES OF THE UAE

It’s easier than anywhere else in the Middle East and North Africa (MENA) to set up a business in the United Arab Emirates (UAE). According to the World Bank’s Ease of Doing Business 2019 report, UAE ranks 11th and is far ahead of its neighbours in terms of infrastructure. Along with its strategic location, tax benefits and low import duties, a business can be set up in 2 days. With liberal new business licensing for foreign investors and a modern judiciary system, business setup in the UAE has attracted companies from all over the world.

UAE’s strategic location makes it the centre of some of the world’s most important trade and commercial routes from ancient times to even today. Having a foothold on UAE soil assures you of access to the markets of Asia, Africa, Southern and Eastern Europe and the Middle East. With state-of-the-art facilities and infrastructure to facilitate international trade, UAE is the ideal location for businesses looking for new markets.

BENEFITS OF BUSINESS SET-UP IN THE NORTHERN EMIRATES

UAE is dotted with free zones across all its emirates, from Dubai to Abu Dhabi to the northern emirates of Ajman, Sharjah, Um Al Quwain and Ras Al Khaimah. But the high cost of living and business set up, rents and other overhead expenses can be a deterrent for companies to start businesses in Dubai and Abu Dhabi.
The northern emirates of UAE like Sharjah, Ras al Khaimah, Fujairah, Umm al Quwain and Ajman have much lower rentals and living and business expenses. With cheaper labour forces and warehousing costs, your business overheads can be brought down drastically thereby increasing your profit margins.

ADVANTAGE SHARJAH

Sharjah, the third-largest Emirate is also known as the cultural capital of the UAE. From the Hamiriyah Free Zone to Sharjah Airport Free Zone, Sharjah Publishing Free Zone and Sharjah Media City, these free zones provide the same infrastructural benefits but at the fraction of the cost when compared to Dubai.
Centrally located between Europe and East Asia, with convenient access to major international airports and ports on both the Arabian Gulf and the Indian Ocean, Sharjah is a strategic investment destination. A highly diversified economy, Sharjah is the cultural hub, industrial and a centre of educational excellence. With huge earning potential, tax exemptions, and liberal government policies, company set up in Sharjah free zones is streamlined but requires considerable planning and proper execution.
Sharjah’s free zones provide cheaper warehousing options than the other more popular destinations. Warehousing and storage can be a costly business expense, with varying benefits depending on where you are in the UAE.

SAIF ZONE OR SHARJAH AIRPORT FREE ZONE

SAIF zone or Sharjah Airport Free zone is a premier business destination with easy access to the Sharjah International Airport and the seaports. With advantages like custom-made offices/spaces, warehousing, cheaper energy, human resources and accommodation and IT services, SAIF is an entrepreneur’s dream destination.
The free zones in the Northern Emirates like Ras Al Khaimah Economic Zone UAQ FTZ – Umm Al Quwain Free Trade Zone, Fujairah Free Zone Authority (FFZA), Hamriyah Free zone Authority (HFZA), Sharjah Media City (SHAMS), Creative City Fujairah can provide the facilities available in the logistics hub like Dubai at more economical costs for companies looking for cost-cutting to bring down their annual warehousing expenditure.

ABOUT CSS KINGSTON LOGISTICS

CSS Kingston Logistics FZE offers 3PL facilities, a first-of-its-kind in Sharjah Airport International Free Zone (SAIF). A joint venture formed between the CSS Group, the leading logistics solution provider in the Middle East/South Asia, and Kingston Holdings, CSS Kingston has a variety of 3PL activities to enhance the business environment in the region.
CSS Kingston Logistics has been fully operational from 1st of June 2020 and is part of our expanding network across the Middle East and South Asia regions. The newly operational office cum warehouse is situated within the Hamriyah Free Zone and is yet another milestone for CSS Group portfolio.
CSS Kingston Logistics FZE in SAIF zone boasts high-quality warehousing space and infrastructure, fully integrated supply chain processes, reverse logistics and 3PL facilities. It also offers full-service warehousing and distribution services. The CSS Kingston network spans across six continents.
Our logistics solutions cover a broad range of businesses and industries, providing customized and efficient logistics for each client including Non-Vessel Operating Common Carrier (NVOCC), Ocean Freight Management, Air Freight Management, Land Transportation Management, Industrial Packing, Crating & Lashing, Multi-modal Operations, Container Freight Station (CFS), Yacht & Marine Logistics and more.
With most 3 PL providers located at Jebel Ali, Dubai, CSS Kingston can service the requirement of a wide range of industry verticals from automobiles, electronics, auto spare part, lubricant, marine, to construction, manufacturing, food, hotel industry and more.

COVID-19 AND ITS IMPACT ON LOGISTICS

The repercussions of the coronavirus spread are felt across the commercial world. Due to the extremely connected global economy, the effect is going to be widespread and will last for a long period of time. In the wake of the pandemic, supply chains will need to undergo a radical transformation. Most countries are slowly coming out of the lockdowns that were imposed to contain the virus spread. With governments unlocking economies, every organization needs to assess their exposure and plan how they can support their key stakeholders, employees and customers.

Resilient relationships with suppliers

Disruptions can be kept at a minimum by developing collaborative and resilient relationships with critical suppliers. Spot opportunities in the face of challenges and then reset the current working models. Companies who are able to adapt their supply chains according to their Covid-19 exposure will emerge resilient and will be able to withstand other contingencies they might have to face.

The key areas that need attention are:

Safety of the people: the HR department should ensure the physical and emotional health of the employees with the apt advice for those placed in impacted areas. Practice corporate social responsibility (CSR) regarding employee stability, environment, wider society and economy, and pursuing ways to support response efforts.
Strategic team formations: Form a special team to maintain constant flow of the right information between key stakeholders; this will help in sustaining stakeholder confidence and customers about the impact. Establish a team to focus on supply-chain assessment and risk management to assess global and regional supply-chain flows, utilising alternative modes of transportation and conducting trade-offs according to the needs, cost, service and risk scenario analysis.
Review capital and business processes: It’s time to review your review your cash flow, working capital management and inventory forecasts along with the supply and demand predictions. The days ahead are bound to be financially strained due to further stock market declines and restricted access to funding. Strategic business planning needs to be synchronized across all business processes. Businesses with data rich environments can harness capabilities in procurement, operations and research and development (R&D), using advanced simulations to identify optimum performance trade-offs.
Micro supply chains: The chief focus of the supply chains of today is cost reduction and spurred the creation of large, integrated, global networks which have grown in proportion with outsourced manufacturing to emerging economies, backed by long-term contracts. Covid-19 has raised many a question, whether this is the way ahead. Shifting to micro supply chains can prove to be efficient and effective in the long run.
Improved supplier relationships: Now is the time to build collaborations with crucial suppliers based on trust and transparency.

DIGITAL TECHNOLOGIES WILL POWER THE SUPPLY CHAINS OF THE POST-COVID ERA

With China, the factory of the world, being the epicentre of the pandemic, supply chain networks in all industry segments across the globe have been affected. What Covid-19 has revealed is the lack of a contingency plan in the face of disruptions.

Post-COVID: The rise of the new ‘digital’ world

The positive repercussion of the post-COVID-19 era will be a fast ushering in of digital transformative practices across all industry segments. Technology-driven business models will become more important than ever before and they will define the global supply chain strategy of tomorrow.
COVID-19 has made us realize the need to reduce our dependency on physical labour across transportation, logistics and warehousing sectors. Enabled by latest technologies like Internet-of-things, blockchain, control towers, artificial intelligence/machine learning-enabled demand forecasting, rule-based and self-adjusting stock allocations, autonomous devices such as AGVs and drones, among others, they will go a long way in creating a robust supply chain networks in the post-COVID era.
The five most important aspects that will be essentials for supply chains of the near future are:

1.Smart procurement practices: Advanced machine learning algorithms can help companies understand where and when to source, based on their previous purchases, commodity prices, agro and industrial trends and other factors

2.Supply chain control tower: A single source of information about sourcing to delivery for all trading partners to see and adapt to changing demand and supply scenarios across the world.

3.End-to-end information management: Supply chain data management with intelligent automation and analytics which captures supply chain transactions accurately with high consistency and minimum redundancy. This allows for in-depth insights regarding supplier performance, supply chain diagnostics, market intelligence and risk management.

4.Supply chain simulation: Helps in forming new supply chain strategies for business or operating model change, demand and supply changes or logistic disruptions or constraints. Helps to validate and identify the best cost-efficient network to achieve the necessary service level across the value chain.

5.Supplier risk management: N tier risk management helping organizations model cost structures, trend performance data and visibility into the extended value chain to keep abreast of any supply disruptions and secure capacity. This could help companies avoid sudden disruptions in the supply chain and deal with lack of information.

We can implement the learnings from the COVID period to come back stronger. the post-COVID era is going to be rife with challenges across the business landscape, from a liquidity crunch to disruptions in the supply chain to increase in trade barriers, and a shifting consumer mindset. Technology is going to be a key enabler by improving existing supply chains to be more resilient ones and enhancing customer experiences, the new era will usher in more intelligent and optimized processes for improved business outcomes.

WORDS THAT ECHOED A REVOLUTION

“Please! Please! Please! I can’t Breathe”. Those were the powerful last words of Mr. George Floyd right before he was murdered by the very cops who are supposed to serve & protect people. I have never written an article for LinkedIn, but I felt this would be a good time to write my first article and show my support for George Floyd and at the same time speak out on race issues in the world. I am not here to criticize anybody or spark another debate to an already sensitive issue, but I feel there are people every day in this world who could be another George Floyd waiting to happen, if the world doesn’t unite against racism.
Racism is a pandemic and there is no cure unless we educate people that skin color doesn’t matter. Black, white or brown – What difference does it make? There is no real magic in having a particular skin color. Ever since I was a little kid, I was taught that everybody is equal. Being disabled or having a certain skin color should not be frowned upon. Instead, we should measure an individual purely on what he/she is to another human being. In this day and age, people don’t have the time to be considerate or show any empathy. Displaying such emotions is deemed weak.

Dr.Britto Satheesh
General Manager

Gone are the days when we really cared for our friend or family or the person who needs some help. We are moving with the worldly developments and its lightning pace but somehow this race issue despite making some minor waves, it seems to be stagnant and still prominent.

George Floyd too was in need of some consideration, sympathy and should have been offered a hand when he was lying on the floor and kept calling out for his mama. I have never met him or heard his name before this incident. Yet, George Floyd, your name is ringing loud around the globe and I am proud to be one such person to recognize how you have changed people’s feelings towards Racism.

I am a south Indian with brown skin and I have always been proud of my roots. While I was a student in the UK, I faced backlash for being brown. I look back at this time with fond memories but there were some unsavory moments, especially when it involved my race and color. To highlight one such issue, I was a 3rd year student and after a long day at the university, my friend and I decided to visit a nearby pub for a game of pool. Halfway into the round of pool, I was approached by an old man with a beer in his hands who asked me where I was from. Being a confident person and an extrovert, I replied to him saying am from India and felt that that could set the tone for a little pub conversation. I was so wrong.

He was considerably shorter than me and asked me to come closer to him, to which I obliged. His shirt had a little British flag pinned to it. He pointed to the flag and whispered into my ears that only whites are allowed in this pub. I felt a rush of anger in me and told him, excuse me! what did you just say? – just to give him the benefit of the doubt, as I may have heard him wrong. I realized I had heard it right the first time as he repeated the same thing, and for a moment I lost it. He was older to me and it’s in our nature to be polite to elders but after hearing such discriminating words, it was impossible to ignore the fact that I have been a victim to racism. I could have been confrontational but I didn’t want to throw away my life by getting into a fight with a racist old thug. Anyone at that moment could be irked and so was I, when my race was questioned in a public place where you expect to just chill and cool off. Despite those comments upsetting me, I had to be rational and do the right thing, by walking away.

I loved my life in the UK. For the 7 years I spent there, and I was fortunate to have friends from all over the world. Some of my close friends to date are British nationals. Beyond those 7 years, I couldn’t have seen myself living there any longer and I always felt out of place. It is true that you adapt to a culture especially when you’ve lived in a place for that many years like me. Even though my accent and personality changed, and I embraced the British culture throughout my time there, I always felt out of place just because of the few people who never appreciated my culture. I was called ‘Paki’ by those minorities and I was disheartened. If that word could have an adverse effect on me, then imagine how a student from Pakistan would feel? Everyone who comes to the UK comes for new opportunities and to live, learn and explore a multi-national culture. Racism can destroy their ambitions, desires and certainly will kill off their hopes in humanity. This is just my story but am sure, there are many who may have had the same experiences.

Let me go back to George Floyd before I end this article. I say a prayer for his soul and the family he left behind. He has a daughter and I am sure she can already see how her father has changed people’s perspective on racial discrimination. The protests around the world are a weapon that can trigger a drastic revolution and help everyone realize what is at stake if things remain the same. For a new change to be in place, it could take a while but I believe, George Floyd has opened people’s eyes to ensure this so-called pandemic that is racism to be addressed with much more assertiveness than in the past. Being black, brown or white should never be a reason to judge someone’s talents. Being Chinese, African, Pakistani, Sri Lankan, Indian etc. should never be the reason for a baseless and endless debates. Instead, the focus should be on their beautiful cultures. It is time the world listens and explores systemic racism. The 21st century is filled with innovations in technology and science. So why can’t there also be a focus on combating racism and its effects on people? It is time for us to reflect, learn and act, and we must never avoid our responsibility to end systemic racism. George Floyd, was a little humble giant and through his heart-breaking last words, a change is waiting to happen. My little experience is just a telltale and am sure there many more who might have had other experiences. Racism can suffocate anyone and we should unite against it.