CHARTERER’S LIABILITY TOWARDS SHIPPER’S AFFIRMATION ON “APPARENT GOOD ORDER AND CONDITION”

One of the main challenges (or as might say “An Issue”) faced by any Shipping Line is when they have to carry the perishable goods from one port to another. Their main responsibility is to keep the Goods safe from damages due to temperature variance, moisture, ingress of seawater into the containers, etc. This shall mean a series of claims against the Carrier/Shipping Line by the Consignee/Shipper/Insurance Companies etc. To protect themselves from any such cargo claims, the Carrier/Shipping Line relies mostly on the reservations that they have included in the Bill of Lading to state, “Shipper’s Load, Stow and Count.” Including these types of reservations in the Bill of Lading lifted the burden of proof from the Carrier to the Shipper wherein the Shipper has to prove that the Cargo was well packed and was safe for the voyage when it was handed over to the Carrier/Shipping Line for loading. If the Bill of Lading does not have these types of reservation statements, usually, the Shipping Lines are held liable for the damaged cargoes. However, a recent case of 2020 took a slightly different view from the usual practice of holding the Shipping Line or the Carrier liable for the damaged goods, especially when there was no reservation made in the Bill of Lading by the Carrier/Shipping Line.

Joy Thattil
Maritime Lawyer & Partner @ Callidus
Dubai, Singapore & India
joy@calliduscmc.com

In the case, PRIMINDS SHIPPING (HK) CO. LTD Vs. NOBLE CHARTERING INC. TAI PRIZE [2020] EWHC 127 (Comm), the Vessel, “MV TAI PRIZE” was time chartered to M/s Noble Chartering Inc. (hereinafter the “Disponent Owners”), who then sub-voyage chartered the Vessel to M/s Priminds Shipping (HK) Co. Ltd (hereinafter the “Voyage Charterer”) for the carriage of the cargo “Soya Beans” from Brazil to China. The Cargo was loaded by the Shipper, and the Bill of Lading was prepared by the Shipper’s Agent, who described the Cargo as “…… Clean on Board… and Shipped in Apparent Good Order and Condition…” and the said Bill of Lading was executed by the Master’s Agent without any reservations.

At the port of discharge, the Consignee discovered that the Cargo’s portions suffered heat and mold damage. When the Consignee filed a case for the loss and damages incurred by them, the actual Vessel. The owner secured their claim by paying off their claim amount of around US$ 1 million, mainly to avoid the arrest of their Vessel. The actual vessel owners, in turn, brought the claim against the Disponent Owners, under the terms of the Time Charter Party seeking a contribution of half of the sum paid by them to the Consignee and the Disponent Owners settled the claim with the Actual Vessel Owners, by paying them the money. The present appeal was filed by the Voyage Charterer to challenge the impugned arbitral award pronounced in the London Arbitration Proceedings commenced by the Disponent Owners against the Voyage Charterer to recover the amount paid to the actual vessel owners and the costs of defending that claim since the Shipper was the Voyage Charterer’s agent and therefore the Voyage Charterer had impliedly warranted the accuracy of any statement as to the condition contained in the Bill of Lading or had impliedly agreed to indemnify the Disponent owner against the consequences of the inaccuracy of any such statement.

Before going to the Court’s interpretation of the wordings and issues involved in the case and the wordings used in the Bill of Lading, let us first see what is considered to be an “Apparent Order and Condition of the Cargo.” According to the Interpreters, the term refers to the condition of the Goods as would be apparent on reasonable examination, and not the internal condition of the Cargo on the shipment or their quality. Further, when a shipment is said to be in “apparent good order and condition” it also means that the Cargo is properly packed to withstand the ordinary incidents of the voyage. In case if Cargo is not sufficiently packed or if the Carrier or the Master thinks that the Cargo will not withstand the incidents of the voyage, then they must not issue a Bill of Lading, without any reservations. Usually, the reservations are like “Cargo has been shipped at the Port of Loading in apparent good order and condition on board the Vessel for the carriage to the Port of Discharge… Weight, Measure, Quality, Contents, and Value Unknown” OR “All Particulars as furnished by the Shipper but unknown to the Carrier.” These reservations are mentioned to given the Shipper, Consignee, or any party concerned a reasonable notice that there might be some defect or shortage in the goods which is not known to the Carrier. It is also to be noted that these reservations must be made on the front of the Bill of Lading and not elsewhere.

Above being the industry’s usual practice, in the case of PRIMINDS SHIPPING (HK) CO. LTD Vs. NOBLE CHARTERING INC. TAI PRIZE [2020] EWHC 127 (Comm), the Court took a slightly variant view while interpreting the wording by Shipper in the Bill of Lading, “Clean on Board” and “Shipped in apparent good condition” or the issue as to whether the Shipper’s presentation of the Bill of Lading with the aforementioned terms, leads to a representation or warranty by the Shipper as to the apparent good condition of the Cargo observable before the loading OR if it is only an invitation to the Master to make a representation of fact, in accordance with his assessment of the apparent condition of the Cargo. The Court opined that as per Article III Rule 3 of the Hague Rules (incorporated in both the Charter Party as well as the Bill of Lading of the subject case), the information regarding “leading marks necessary for the identification of the Goods” and “the number of packages or pieces or the quantity or weight” of the Goods constituting the Cargo, to which the relevant Bill of Lading is concerned, is the information furnished in writing by the Shipper and as far as this case is concerned this aforementioned provision of the Hague Rules applies to the information “63,366.150 metric tons Brazilian Soya Bean”. Further the Hague Rules also provide the “apparent order and condition of the Goods” but as per the Court, this information is not to be furnished by the Shipper, instead this part should be an exclusive assessment by the Carrier (or The Master) of the Goods at the point of shipment. Therefore while answering the aforementioned issue, the Court said that by presenting the draft Bill of Lading for signature by or on behalf of the Master, in relation to the statement concerning apparent good order and condition, the Shipper was doing no more than inviting the Master to make a representation of fact in accordance with his own assessment of the apparent condition of the Cargo. The Court also noted that The Hague Rules Article III Rule 5 imposes an express indemnity obligation on the Charterer in respect of the information that he “furnishes in writing.” A Charterer has no such obligation however, in relation to statements regarding the “apparent order and condition” of the Cargo. The Court also held that the Disponent Owner was not entitled to an Indemnity from the Voyage Charterers, because the Hague Rules, incorporated into the Voyage Charter Party between the Parties, do not impose on the Shipper in relation to the statement concerning apparent order and condition of Cargo.

Even though this decision is a boon to the Charterers as they will be relieved that a general implied indemnity was not owed to the Disponent Owners in respect of the statement concerning the apparent order and condition of Cargo, made by the Shipper, we are yet to see the outcome of the case, as the Disponent Owners are granted leave to file an appeal.

THE 5-R’S TO GET BACK FROM COVID-19

The coronavirus pandemic is first and foremost a human tragedy that will be marked on the pages of history. It will reshape a “new normal” in every sphere in the post COVID era. Affecting millions in almost every country on the globe, the outbreak has had a devastating effect on the global economy as well. Dealing with the coronavirus crisis and its aftermath is the imperative of our times.
Here are 5 steps of how organizations can adapt to getting back to “business as usual”.
The McKinsey article calls organizations to act across five stages, leading from the crisis of today to the next normal that will emerge after the battle against coronavirus has been won:

1. Resolve
2. Resilience
3. Return
4. Re-imagination
5. Reform

Resolve

The need to determine the scale, pace, and depth of action required at the state and business levels. As one CEO told McKinsey, “I know what to do. I just need to decide whether those who need to act share my resolve to do so.”

Resilience

The pandemic has spawned a worldwide financial and economic crisis. A McKinsey Global Institute analysis, based on multiple sources, indicates that the shock to our livelihoods from the economic impact of virus-suppression efforts could be the biggest in nearly a century. Near-term issues of cash management for liquidity and solvency are the foremost challenges at the present. But soon afterward, businesses will need to act on broader resilience plans as the shock begins to upturn established industry structures, resetting competitive positions forever.

Return

For companies to return to business as usual, the supply chain needs to be reactivated. It is extremely challenging after a lockdown that spans the globe. With the coronavirus impact spreading across geographies, supply chain disruptions are inevitable in multiple locations. . The weakest point in the chain will determine the success or otherwise of a return to rehiring, training, and attaining previous levels of workforce productivity. Leaders must therefore reassess their entire business system and plan for contingent actions in order to return their business to effective production at pace and at scale.

Re-imagination

The post-Covid era will define how we live, work and play and how technology can be harnessed. Contactless commerce with online transactions will be rule of the day. The pursuit of efficiency will have to make way for the need for resilience and the global supply chain might have to be reframed with production and sourcing moving closer to the end user. This is also the time to tap into opportunities to improve business processes and performance. Technology adoption will be accelerated by quick assimilation of what it takes to improve productivity. In the end, we will have an understanding of how businesses will become more immune to shocks resulting in better productivity and improved service quality.

Reform

The pandemic has opened doors for a wide variety of innovations and experiments like working from home to large scale surveillance. If we adopt these innovations on a permanent basis, we could provide an improvement on the socio-economic development of our society and also help in stopping the virulent virus in spreading.
The pandemic has inadvertently caused a restructuring of the global economic order. How this crisis evolves is still yet to be seen. These five steps can help leaders beat a path to return to a “new normal”, that is unlike anything that was before.

Chairman’s Message

The year started with a bang and on such a positive note. Certain developments in the business realms and the world, in general, have shaken us to our very cores. The Australian bush fires ravaged the landscape of the island continent and opened our eyes to the brutal realities of climate change. Sustainability has always underscored every activity at CSS. We have laid great emphasis on environmentally sound practices from when we set sail 25 years ago. Growth is never by mere chance; it is the result of forces working together said the famous American entrepreneur and retailer, James Cash Penney. I foresee brighter days for the industry and our company as the year 2020 unfolds. We need to strive hard to achieve through synergistic working and innovation. I understand that CSS, as it stands today, is the result of many hands that have worked hard to build it from foundation up. We want to be part of a team that leaves a legacy and is remembered in the annals of this great organization that we have raised. As part of the team that is continuously breaking standards of excellence, we need to push ourselves outside our comfort zones. Growth never happens when we keep doing what we have done in the past; it comes with failures as we try to make progress. If you aim to achieve five great things this year and achieve only two, you are still outperforming all the people who never bothered to try to do anything at all. Next time you plan for your work ahead, evaluate your practice to include a “stretch goal.” Try to push yourself to perform 50% better than your existing goals. You will be surprised at reaching targets you thought were impossible! This is called a “growth mindset,” this sets the ones who achieve success from the ones who do not. When you have a growth mindset, you learn from anything by putting effort into it. If you fail, you approach the problem from another perspective until you arrive at a solution. No man is an island, so start supporting other people’s success. Celebrate with them, and when it’s your time to shine, they will exult in your moment with you. As a closing note, I want to leave you with this thought, “Expectation is the mother of manifestation.” So keep your hopes high and let your spirits soar as we surge towards a highly successful leg of the journey we embarked on in the year 1995.

CSS TAKES PART IN THE 25TH NATIONAL CHAMBER OF EXPORTERS AGM MEETING IN COLOMBO, SRI LANKA

The National Chamber of Exporters of Sri Lanka (NCE), the only private sector Chamber which exclusively serves Sri Lankan exporters, conducted its 25th Annual General Meeting (AGM) for 2020 on 28th January in the Grand Ballroom at the Hotel Galadari in Colombo. As a special invitee, we introduced CSS Colombo as a new NVOCC in Sri Lanka.

The NCE represents the interests of a broad spectrum of stakeholders in the export sector and performs as a platform to address various issues and make representations to the concerned government authorities. The NCE works together with the exporter community in Sri Lanka to facilitate and achieve the national economic developments in exports for the island nation of Sri Lanka.

The chamber functions as a voice of the exporter community, serving more than 500 Sri Lankan exporters. The members vary from export-oriented enterprises across all product sectors and most services sectors, as well as service providers to exporters. From the leading export houses to small and medium-sized enterprises, the chamber promotes the interests of the exporter community, and it is today known in the exporter circles as the ‘Voice of the Exporter’ in Sri Lanka.

Sri Lanka is the hotbed and the center of attention in the competition between China, India, and the United States to conquer the Indian Ocean. All three countries have their agendas and priorities for this region. Sri Lanka’s strategic location in the east-west corridor gains geopolitical eminence, thereby playing a vital role in the game of dominance between these three nations.

“Whoever controls the Indian Ocean will dominate Asia… the destiny of the world will be decided on its waters”, said Alfred Thayer Mahan, a United States naval officer who was known as the most famous American strategist of the nineteenth century.

The island republic of Sri Lanka stands at the cusp of being thrust into a position of global prominence. Maritime trade is at an all-time high, and Sri Lanka has all the advantages to serve as the trading nerve center facilitating maritime transactions as part of a broader Sea Lines of Communications Matrix.

Besides the Chinese Belt and Road Initiative and America’s established maritime presence in South Asia, Sri Lanka’s littoral position holds immense potential. India, USA, and China are actively seeking a Sri Lankan alliance to strengthen their position in the Indian Ocean. With the political unrest in the Middle East and new security commitments, countries have been seeking alternative sea lanes near Sri Lanka.

USA: With China exerting control over Chabahar in the Gulf of Oman, Gawadar in Pakistan, Colombo, and Hambantota in Sri Lanka, USA is wary of China’s growing dominance and control over global trade. The US is strengthening its maritime arrangement in Diego Garcia to incentivize Sri Lanka to a mutually agreeable position.

India: Both India and China have constructed maritime outposts to secure their economic interests. With the increasing Chinese dominance over the Indian Ocean, India’s position is being challenged. To safeguard its SLOCs to the Middle East, which is used to supply oil and energy, India has several development projects in Sri Lanka to counter the Chinese bid for power. The Trincomalee port can be seen as a counteraction against the China-funded Hambantota port.

China: China is fully aware of the strategic position that Sri Lanka enjoys, being a natural corridor between the East and the West. Security of sea lines of communication (SLOC) is also directly linked to Sri Lanka, which is very important for China to establish its roots in the Indian Ocean.

The busiest East-West shipping route is just ten nautical miles south of Lanka. This nautical corridor accounts for almost half of the world’s container traffic, one-third of bulk cargo movements, and 80% of the global petroleum supply. International maritime trade can be hugely affected even if there is a slight disturbance at the southern tip of Sri Lanka.

For the island republic of Sri Lanka, this position lends immense opportunity as well dilemma. Whether Sri Lanka will play it neutral or align with any of these countries will determine who will emerge the winner in this battle for dominance.

CSS TO IMPLEMENT VIDEO SURVEILLANCE AS A SOLUTION BY ETISALAT

CSS’s top management team met with Etisalat for the initial discussions to implement the Etisalat Video Surveillance as a Solution (VSAAS) along with a Smart Messaging Platform. Etisalat Video Surveillance as a Solution provides business enterprises with value-added services that address their security and regulatory compliance requirements.

Enabled by the state-of-the-art onsite video surveillance technology that will be deployed at CSS, Etisalat can proactively use, manage, troubleshoot, and support this solution. Hamad Mohammed Al Marzooqi, VP of Etisalat Managed SMB, Khalid M Yateem, Director of Etisalat Managed SMB and Jithesh Vijakumar, Sales Manager, Etisalat attended the meeting, along with the CSS team, which included Chandrakala, Krishna Kaladharan, Susanth Shekar, Pothen Thomas, and Arun Snehajan. A visit to the Innovation Center has also been scheduled for the near future.

The first-of-its-kind video surveillance solution in the UAE, this one-stop solution, is for all our video surveillance needs. From end-to-end managed services, security surveillance with analytics, web and mobile access, business intelligence and upgradable cloud storage, other features include end to end managed services, heat maps, people counting, a security system, and a queuing management solution.

Enabling this solution at the CSS office premises will help us manage our business more efficiently while increasing our business productivity. This partnership resounds with Etisalat’s tagline, which says, ‘Your business grows with us.’ Enabling this solution will increase the safety and security of our premises, resources, and assets and allow us to optimize our operations.

MIDDLE EAST BUSINESSES MUST ADOPT NEW TECHNOLOGIES IN RESPONSE TO SUPPLY CHAIN RISKS

At the Procurement and Supply Chain MENA Forum, the industry leaders highlighted that businesses in the Middle East could become among the most competitive in the world by taking a bold approach to their procurement and supply chain strategies.

Sam Achampong, head of the Chartered Institute of Procurement and Supply (CIPS) MENA, stressed that forward-thinking companies should look to their procurement and supply chain strategies as a key differentiator. In his keynote address on the topic, What Future Procurement Leaders Look Like, he said: “The application of comprehensive procurement and supply chain strategies can add real value to all aspects of a business including profitability, accountability, reputation, sustainability, and corporate governance.”

He explained that organizations in the MENA region had undertaken procurement transformation exercises which in time allow these entities to become more competitive, not just regionally, but globally.

Maha Bouzeid, VP Head of Sourcing in the MEA region for Ericsson, reiterated Achampong’s belief in the potential of the procurement strategy to support business transformation and competitiveness. She said: “Organizations are on a constant search to find even more efficiencies and increase their top-line growth. Procurement has an important role to play in both cases by securing the right cost base and by building the partner ecosystem to deliver on new solutions in the Industry 4.0 era. We need the know-how of all the different players in the industry to enable innovation, create new use cases to fulfill rising customer demands, and monetize these for the benefit of all.”

Achampong and Bouzeid emphasized that the procurement sector needs to invest in skills development to achieve its potential and be a driver for business change. “Traditional skills, such as negotiation, and administrative skills, such as planning and coordination, are being replaced by the need for critical thinking skills and complex problem solving, aligned with emotional intelligence centered around stakeholder management and influencing skills,” said Achampong.

“For procurement leaders to be effective, they need to be able to convince their key C-Level stakeholders to adopt recommended strategies aimed at aiding business growth and increasing value for the organization. Those unable to align with their stakeholders will not be able to lead the transformation of their functions from a transactional cost center to a strategic net contributor to an organization’s overall value.”

Bouzeid added: “Competence is key – procurement needs to attract the best talents in the industry with a solid understanding of the procured solution and the cost drivers for these. Businesses need people who are strong influencers, who can guide stakeholders through the decision-making process and who can be efficient negotiators. “We need to lead the way in terms of digital transformation – we can work heavily on automation to reduce manual, tactical tasks. If we can effectively do this transformation, the added value we provide will be significant.”

Procurement & Supply Chain MENA, in partnership with CIPS MENA, gathered heads of procurement & supply chain to share big picture, business-led strategies on how not only to guarantee supply during industry flux but become a key value driver, innovator and business partner for any organisation.

THE RECYCLING OF SHIPS ACT, 2019: TOWARDS AN ENVIRONMENT FRIENDLY AND SAFE SHIP RECYCLING IN INDIA

Shipbreaking or ship recycling is defined as one of the most hazardous jobs in the world by the International Labour Organisation (ILO). It is the process by which old ships and vessels are taken apart, dismantled, and its components are recycled. As observed by the International Maritime Organisation, the ship recycling process is most productive as nothing from a dismantled ship goes into waste. The equipment and components of a recycled ship can be reused in its entirety in other industries. If done efficiently and economically friendly, it can be turned into a green business by using the recycled components for even building new ships. The darker side of ship breaking is that it creates a variety of pollutions, including air, land, water, and noise due to the generation of hazardous and non-hazardous wastes. As most of the works are done manually, it also leads to many occupational hazards to the manual workers if the working conditions are substandard and not in compliance with international safety standards.

India is in the frontline among the countries that are engaged mainly in the business of ship breaking. Apart from India, South Asian countries like Bangladesh, China, and Pakistan also give massive competition in the ship breaking industry. The ship owners mostly choose these countries due to the relaxed environment regulations and labor standards followed by the Countries in this industry.

Joy Thattil

Maritime Lawyer & Partner @ Callidus

Dubai, Singapore & India

joy@calliduscmc.com

In India, the condition was no different since the Central Government announced the ship breaking industry as a small scale industry. The business started to flourish under minimal regulations concerning environmental protection and labor standards.

The Supreme Court decision in Research Foundation for Science, Technology and Natural Resource Policy v. Union of India (2007) 15 SCC 193, provided an impetus to the legal framework governing ship recycling in India. According to the directions put forth by the Supreme Court in this case, the Central Government formulated the Shipbreaking Code in 2013, providing a comprehensive scheme for regulating shipbreaking in India. But the Code failed to address many provisions contained in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009, adopted by the International Maritime Organisation. This Convention ensures that ships, when being recycled after the end of their operational lives, do not pose any unnecessary risk to the environment and human health and safety. The Convention details out the procedure to be followed for the survey and certification of ships as well as for the authorization of ship-recycling facilities.

Realising the need for an inclusive legislation on ship recycling, the Indian legislature enacted the ‘The Recycling of Ships Act, 2019’, and on December 13, 2019, the Act came into force after receiving the assent of the President. This Act is an attempt to bring about an environment-friendly shipbreaking practice in India. The object of the Act is to provide for the regulation of recycling of ships by setting certain standards and laying down the statutory mechanism for enforcement of such standards.

The Recycling of Ships Act, 2019, is in tune with the Hong Kong Convention in many aspects, and the Act restricts and prohibits the use or installation of hazardous materials, which is uniformly applicable to all ships in India, irrespective of whether a ship is meant for recycling or not. For new ships, such restriction or prohibition on the use of hazardous materials will be immediate, that is, from the date the legislation came into force. In contrast, the existing ships shall have a period of five years for compliance. However, such a restriction or prohibition on the use of hazardous materials does not apply to warships and non-commercial ships operated by Government.

Under this Act, ship recycling facilities are required to be authorized, and ships shall be recycled only in such authorized ship recycling facilities. This Act also provides that ships shall be recycled following a ship-specific recycling plan. Ships to be recycled in India shall be required to obtain a ‘Ready for Recycling Certificate’ under the Hong Kong Convention.

The Act also imposes a statutory duty on ship recyclers to ensure safe and environmentally sound removal and management of hazardous wastes from ships. Appropriate penal provisions have been introduced in the Act to deter any violation of statutory provisions.

India, being the global leader in ship breaking, aims at boosting its economy as well as the ship recycling industry through the enactment of this legislation by bringing about an environment and labor-friendly regulatory mechanism in the ship breaking process.

TWELVE INDIA GOVERNMENT-OWNED PORTS SWITCH TO RENEWABLE ENERGY

Twelve government-owned major ports in India have moved to renewable energy sources for their power. The twelve ports are Deendayal Port Trust, Mumbai Port Trust, Jawaharlal Nehru Port Trust, New Mangalore Port Trust, Mormugao Port Trust, Cochin Port Trust, Chennai Port Trust, VO Chidambaranar Port Trust, Visakhapatnam Port Trust, Paradip Port Trust, Kolkata Port Trust, and Kamarajar Port Ltd. This landmark move makes India the first country to have all state-owned ports powered by solar and wind energy.

Following the directive issued under the Shipping Ministry’s green initiative, the ports had to install grid-connected and roof-top solar and wind power projects to run the day-to-day operations, including supplying shore-power to visiting ships in an eco-friendly manner.

Also called cold ironing or alternative maritime power, shore power allows docked ships to work their electrical systems using shore-side power and to switch off their auxiliary engines. Shore power works in reducing emissions and cutting operational costs for shipping companies. It also allows shipping companies to meet emission targets, especially those related to emission control areas.

The emissions from ships at berth are estimated to be ten times more than the port’s operations. Ships consume a large amount of power even though they are not propelling, and running the fuel-powered generators result in noise pollution and emissions. The shore-side power supply is environment-friendly, and all the major Indian ports have developed the necessary infrastructure to power all types of vessels when they are berthed at these ports.

Renewable energy also enables ports to bring down their energy costs, thereby bringing down operational costs, finally lowering shipping and cargo levies. India’s maritime governing body has framed the operating procedures (SOP) for shore electric power supply to ships in Indian ports that presently cover only a low power supply – up to 150 kW at low voltage. However, they will issue the new SOP when the high voltage supply is ready at the ports.

DUBAI LAUNCHES WORLD LOGISTICS PASSPORT AS PART OF THE DUBAI SILK ROAD STRATEGY

Dubai has launched the World Logistics Passport as part of the implementation of the first phase of the Dubai Silk Road strategy. To boost the role of the Dubai Silk Road strategy, it seeks to enhance the demand for Dubai’s products and services and integrated transportation systems. It also gives further impetus to the growing role played by Dubai Customs in regional and international trade.

Offering a set of special operational and financial advantages, the World Logistics Passport will connect key government bodies with logistics service providers. It can prove to be advantageous for businesses and shipping companies by facilitating commercial transactions with government entities like Dubai Customs and Dubai Trade.

Crown Prince of Dubai and Chairman of the Dubai Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has emphasized that the Dubai Silk Road strategy will spur economic growth which will further strengthen Dubai’s position as a global economic and business hub, powered by its exceptional connectivity and logistics services. The Dubai Silk Road strategy also offers state-of-the-art logistics services using the latest smart applications.

Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, reiterated, “Dubai’s sophisticated logistics services will further enhance its value offering for investors and businesses by saving time and effort and reducing their operational costs. This is a powerful tool that will eventually lead to increased revenues. We are keen to offer investors and businesses new advantages in conducting global trade.”

76 PARTICIPATING COUNTRIES AGREE TO DIGITALIZE CROSS BORDER CUSTOMS UNDER UNITED NATIONS TIR CONVENTION

On February 5, 2020, the 76 nations under the TIR Convention of the United Nations have unanimously agreed to digitalize its operations (eTIR) under the global customs transit system. This momentous decision will facilitate trade and the seamless movement of goods across borders.

Olga Algayerova, executive secretary, United Nations Economic Commission for Europe (UNECE) said, “The adoption of eTIR, which is the result of over 20 years of negotiations, marks a new chapter in the TIR Convention’s 70-year evolution. With more and more countries joining the convention in recent years, including major economies like China, India, and several countries in the Middle East, this important step will help to harness trade and connectivity as drivers of sustainable development.”

What is TIR?

A multilateral customs treaty among world nations, the TIR (Transports Internationaux Routiers or International Road Transport) Convention came into effect on March 20, 1978. The treaty signed by 76 countries aims to simplify and harmonize the governmental procedures of international road transport. The TIR Convention’s framework allows 1 to 3.5 million truck trips to cross borders as quickly and efficiently as possible, every year.

Today, the TIR system is used by more than 34,000 transport and logistics companies across 76 participating countries and led to an up to 80% reduction in transportation time and 38% cut in transporting costs. The digitization of the TIR procedures will further improve efficiency.

 

eTIR Test runs in Iran, Turkey, Georgia, Azerbaijan, Kazakhstan, and Ukraine

Since 2017, several of the TIR contracting countries have been implementing a series of eTIR pilot projects. Besides the currently functioning ones between Iran and Turkey, and Georgia and Turkey, there are others in the pipeline like the eTIR intermodal project between Azerbaijan, Georgia, Kazakhstan, and Ukraine and the eTIR project between Azerbaijan and Iran.

 

eTIR in intermodal transport

Paperwork for intermodal transport has proved to be thoroughly cumbersome under the current TIR system. The eTIR is expected to open new applications for the TIR system, especially in the area of intermodal transportation. This new amendment will also secure the TIR system for all customs administrations using it.

 

Reduced trade transaction cost

The TIR system ensures the payment of customs duties and taxes by providing a guarantee mechanism. This has led to a reduction in trade transaction costs, thereby furthering intra and inter-regional trade.

Requiring only minimal manpower and facilities from customs and national authorities, the system significantly reduces transit delays and congestion at border crossings.

CORONAVIRUS AND ITS IMPACT ON THE GLOBAL SUPPLY CHAIN

The news splashed on the front pages of newspapers all over the world is the Wuhan novel coronavirus and alarming rise of its death toll. Reports of confirmed coronavirus cases are coming from all corners of the globe every day, and the disease has taken the scale of a global pandemic.

The coronavirus has closed the doors to China and has put a severe strain on the global economy.  There has been upheaval and disruption in worldwide businesses and supply chains, depressing asset prices. All this has forced multinational companies to make hard decisions with limited information.

Most of all, the impact on the trading, logistics, and shipping industry worldwide due to the widespread coronavirus is quite significant. From the travel bans both in and out of China to a shutdown of production in Chinese factories and global fall in oil prices to a severe slump in China-bound imports, the impact has been stupendous.

The scale of this pandemic has been such that nobody can draw a timeline on how long the quarantine will last and when it will get back to being business as usual.

The industrial city of Wuhan

Wuhan, an inland city about 500 miles from the capital city Shanghai, has grown to be an industrial hub. Wuhan is also home to China’s burgeoning steel industry.  A manufacturing center for global giants like Nissan, Honda, and GM, it also functions as a corporate hub for companies including IBM, HABC, Honeywell, Siemens, and Walmart. The economy of Wuhan has exploded in recent years due to lower living and housing costs and easy availability of labor. Part of your supply chain may originate or pass through Wuhan for manufacturing, assembly, or finishing. It is but natural to expect severe shortages, delays in materials sourced or manufactured in Wuhan.

The risk to your supply chain

Since no one can predict the length of the Wuhan shutdown, your global supply chain for raw materials or finished goods stands at risk.

The impact on supply chains will largely depend on the following factors

  • How long businesses remain closed
  • The extent to which supply chains have been effected
  • Companies and logistics service providers take precautionary measures

Freight volumes, activity levels, processes, and volumes will be impacted to varying degrees. But as always, supply chains do adapt and adjust to the demands of the situation to ensure that freight movements happen unhindered.

Alternate plans

It is in a crisis of such a scale that one realizes the need for alternative sourcing and manufacturing strategies. Many countries have started looking beyond China already and have discovered other Asian manufacturing hubs. The coronavirus is but a rude wakeup call for supply chain service providers to have sourcing and manufacturing hubs in various geographical locations spread across the globe as contingency plans in the case of natural or political upheavals.

China might be back in business in the next few weeks, which might even extend to a month or more. Shippers and logistics service providers should continue to watch how long the gridlock on China will continue and then develop remedial plans to surmount this crisis.

INDIAN GOVERNMENT TO UNVEIL A NEW NATIONAL LOGISTICS POLICY

Nirmala Sitharaman, the Finance Minister of India, declared in her Budget 2020 speech that the government will soon roll out a national logistics policy. The policy will help in clarifying the roles of Centre, states, and key regulators in logistics. The policy also envisages the creation of a single-window e-logistics marketplace, which facilitates the creation of new jobs, new skill sets, and making MSMEs more productive. A one-stop platform for exporters and importers, the e-logistics marketplace will promote the seamless movement of goods across the country.

Being drawn out by the logistics division under the Commerce Ministry, the policy garners significance as the high cost of logistics within the Indian market impacts the competitiveness of India-made products in global markets. If implemented correctly, the policy will provide a significant boost to cross-border trade and improve export competitiveness, thereby improving India’s ranking in the Logistics Performance Index. The Ministry of Commerce also stated the highly defragmented nature of India’s logistics sector. By 2022, the policy aims to significantly reduce the logistics cost from the current 14% of GDP (Gross Domestic Product) to less than 10%.

With 200 shipping agencies, 36 logistics services providers, 129 ICDs (inland container depots), 168 CFSs (Container Freight Stations), 50 IT ecosystems and banks and insurance agencies, the Indian logistics industry is a behemoth, providing jobs to more than 22 million people across the country. Streamlining the operations of this humongous sector will lead to a 5-8% increase in exports. With the logistics market in India slated to be around $215 billion by the year 2022, an incredible jump from the current $160 billion, the policy will pave the way to making India into a logistics hub.

CHAIRMAN’S MESSAGE

It always gives me pleasure, and the start of this New Year is no different when I can wish you all an excellent 2020 ahead.

The past year had some challenging days. Both within and beyond our organization, we have seen unexpected changes. The business conditions were incredibly challenging for the entire Shipping and Logistics fraternity. Issues which included trade wars, and unrest in the Middle East. Fortunately, as usual, the confidence and the will power shown by everyone at CSS was so amazing that together we admirably sailed through rough seas.

I genuinely feel that the power of our inner mind is the main driving force in one’s life, although nowadays, we don’t experience it quite as often — the foundation stone of our perceptions, decisions, and other emotions. But the demands of modern living mean many are driven away from using spiritual consciousness as a positive force. Instead, we often sideline our inner self when it comes to deciding by letting today’s stresses and strains dominate.

To rise to greater things in 2020, we need to see it as an excellent opening for all of us to reunite with our inner mind. Given time and the space to re-invent or re-engineer consciousness before taking action, while achieving what seemed previously unattainable. There are promising things ahead for all of us. We need to visualize them and go for it.

The trade wars now seem to be over and will bring balance back to the ailing economy of Nations. The much-awaited Dubai Expo 2020 is just around the corner, and opportunities to grasp.

It was a similar keen mindset that drove those of us involved with the inauguration of CSS. It seems like only yesterday when CSS set sail on a journey in the Shipping and Logistics industry. 2020 marks the 25th anniversary of the company, and it perhaps fits that traditionally this anniversary is known as a ‘Silver’ anniversary. I am confident heralding this milestone landmark because, with our inner minds set to sail fair, any wake will drive us forward to silver-lined horizons

EXECUTE 2 WIN

CSS GROUP SALES STRATEGY MEET 2019

“Execute 2 Win”, was the theme adopted for the CSS Group Annual Sales Strategy Meet in 2019. The meet was organised within the CSS Group facilities at Jebel Ali, Dubai on the 27th and 28th of November 2019. Invited delegates from within the organisation from Middle East & Indian Sub-continent attended the 2-day meeting.

CSS has always strived to excel in all its ventures, year on year and today has reached a respectable position amongst the renowned names in the field of Shipping and Logistics fraternity. The 2-day meeting consisted of presentations from each departments and discussions on implementing new sales and marketing strategies for the year 2020.

Consolidated Shipping Group, established in the year 1995 in Dubai, UAE is one of the fastest growing NVOCCs. Gearing up to celebrate the silver jubilee of its offerings in 2020, CSS offers Professional and dedicated services in the field of Ocean Freight, Air Freight, Local & International Land Transportation, Projects Management, Supply Chain Management and Personal Effects Management.

NETWORKING OPPORTUNITY

CSS GROUP PRESENTATION AND INTERACTIVE SESSION FOR NEW ZEALAND BUSINESS DELEGATES CSS Group was invited by the Dubai Exports to address gathering consisting of the business partners from New Zealand. Being the preferred logistics partner of Dubai Exports, CSS Group got this opportunity on the 28th of October at the Deira office of the DE.

Santanu Datta, AGM – Business Development and Roshmon Manoli, General Manager – Sales & Marketing, represented CSS Group at the function. A 20-minute presentation was done during the event, which was followed by an interactive session with the visiting delegates. The presentation showcased the capability of CSS Group in assisting the EXIM activities between UAE and New Zealand. It was a venue for CSS to prove how they can be of value addition to the potential mutual business of the two countries through Sea & Air logistics.

“We thank Dubai exports for offering this rare opportunity to CSS to be a part of this business gathering and to explain and interact with the business delegates regarding our service offerings. With a strong presence in the Middle East, CSS is fully confident in partnering to fulfill this ambitions trade plan between the two countries through the Shipping & Logistics fraternity” mentioned Santanu Datta.

Mr. Abdel Rahman Al Hosani did the Dubai Exports presentation. The entire event consisted of Breakfast, which was followed by networking sessions and tour at Exports Resource Center for the delegates

TAILOR MADE LOGISTICS SOLUTION

CSS group has always shown great concern for the convenience of their clients all through the years of its operations. It has brought in sea changes within the departments to make the organisation customer friendly. A novel initiate which CSS has embarked recently on, is the tailor-made logistics solutions within the Middle East region. As the name itself defines, a tailor-made logistics solution has got a wide spectrum of scope in making convenience to attending to the client’s needs with regard to the cost, load ability, time, distance and much more other factors.

CSS offers a full range of tailor-made solution to their clients. For the customers based at the Northern Emirates, maximum thrust would be given to the nearest port than offering solutions from Jebel Ali. This could bring in drastic result regarding the cost on toll, transport & weighment charges. The import console product for both Sea & Air, benefits the customer on the cost part without compromising on transit time or routing.

Ground-breaking approaches lie at the heart of such product offerings. It takes time to build a good customer base, but without offering them the best products in the most affordable manner, it makes things difficult to retain the trust and confidence in them. The import console of house B/L works like a Console’s console, which could eventually reduce the origin and destination charges for the customer. Another innovative approach is turning the same import container into export on the same carrier which could optimize the freight and transport cost for both the customers and the carrier. The tailor made solutions from CSS has been received with much enthusiasm by the industry fraternity.

E-COMMERCE AND LOGISTICS ROUND TABLE

The E-commerce and Logistics round table organized by the SCLG provided a perfect platform to discuss the opportunities and prospects in the e-commerce side of Supply chain and Logistics. The SCLG hosted the event on the 16th of October at the Dubai South headquarters of the SCLG. On an invitation, CSS Group represented by Richard Varghese, Asst. General
Manager, Sales & Marketing, attended the event.

SCLG is continuously in research for finding opportunities to support growth and innovation in the industry. In managing the supply chain, numerous elements need trend analysis, and discussion is given global economic scenario, changing regulations, and the arrival of new technology. SCLG deploys and delivers such discussion and debate through multiple roundtables as appropriate.

“The event and discussion opened up a wide window in front of us to understand more about the e-commerce platform in the Supply chain and logistics industry. In future every company should give impetus to the e-commerce platform to reach out to the masses and to utilize the maximum opportunities out of it” commented Richard Varghese.

Headquartered in Dubai (UAE), Supply Chain & Logistics Group (SCLG) is a membership driven industry business group engaged in advancing the supply chain & logistics industry locally, regionally, and globally. SCLG currently has a membership base of 200+ corporate organizations and is growing.

DP WORLD BERBERA’S COMMUNITY PROJECTS IN SOMALILAND TO CHANGE TRAJECTORY OF EDUCATIONAL OPPORTUNITIES

Global trade enabler DP World has embarked on an ambitious partnership with Abaarso School in Somaliland, to dynamically enhance educational opportunities for youths. DP World Berbera manages and is currently expanding the multi-purpose port of Berbera.

The partnership was officially launched with a visit by Suhail Albanna, CEO and Managing Director, DP World MEA Region, to Somaliland. The name Abaarso has become associated with excellence, thanks to the Abaarso School of Science and Technology, the only American accredited school in Somaliland.

DP World Berbera has just finalized two scholarship programmes. The first is a scholarship programme for high performing Somaliland students to attend the Abaarso School of Science and Technology. Through this scholarship, ten students will have their entire six years at Abaarso funded by DP World Berbera.
These students were selected from amongst the highest scores on Abaarso’s 7th grade enrolment exams. By providing this scholarship, DP World Berbera helps assure that Abaarso’s world-class opportunities are open to all Somaliland students regardless of financial capability.
The second scholarship is for DP World Berbera to provide eight annual scholarships for promising young women from the Sahil Region to join Barwaaqo University’s School of Education. Barwaaqo University, founded by Abaarso in 2017, is the first all-female boarding university in Somaliland. Modeled on Abaarso’s education, Barwaaqo focuses on developing strong
fundamentals and character, delivered in a 24-hour boarding environment.
The aim of this scholarship is for the young women who graduate to return to the Sahil Region and significantly improve the quality of education. To this end, DP World Berbera plans to partner with Abaarso and the city of Berbera to support the creation of a K-12 school in Berbera; DP World Berbera Kaabe School.

Suhail Albanna, CEO and Managing Director of DP World MEA Region said: “The presence of a high quality American accredited K-12 school will have a positive impact on the education opportunities available to the people of Somaliland. In the long term, we also hope the young women from Barwaaqo University will help to establish an international standard education system in Berbera, which will enable expat management who will establish their business in the Economic Zone to bring their family and children with them. The Barwaaqo University will serve the entire Sahil region and will support women’s empowerment in the area.”
Albanna added “Education is one of the key pillars in our sustainability strategy and we are looking to improve people’s lives to bring positive change to communities in which DP World employees live and work.”
Abaarso School currently serves students in grades 7-12, and the demand to enter its Grade 7 is over 35 times the available capacity. It has just opened its 1st Kaabe School in Hargeisa, which will ultimately enroll approximately 700 students, employing a student-centric Montessori-inspired learning environment.
The DP Berbera Kaabe School will follow this same model and aims to achieve American accreditation. The development of the school will give DP World’s Berbera employees access to high quality education for their children rather than having to send them to boarding schools or live in the capital, Hargeisa.

DUBAI EXPO 2020: “CONNECTING MINDS, CREATING THE FUTURE

An Expo is a world fair or an extravagant international exhibition designed to showcase achievements of nations. The word Expo was derived from the French word “Exposition Universelle” which means Universal Exposition. There are two types of Expos that are conducted in different parts of the world; one being World Expo (formally known as International Registered Exhibitions) and other being Specialized Expo (formally known as International Recognised Exhibitions). Since the 1928 Convention Relating to International Exhibitions came into force, the Bureau International des Expositions (BIE) has served as an international sanctioning body for international exhibitions. As per the norms, a bidding process began in 2011 between four different Countries and Dubai was declared the winner. This triumph and jubilation led to the massive event called Dubai Expo 2020.

Theme of Expo 2020:
Expo 2020, is the First World Expo that is being conducted in the Middle East, Africa and South Asia (MEASA) region;
1. starting from October 20, 2020 to April 10, 2021. The event which is hosted in the heart of Dubai shall welcome 200 international countries and about 25 million or more visitors. It will be one big step towards efficient development.
2. The Expo will be held in the name of ‘Connecting Minds, Creating the Future.’ The goal is to connect people and innovative ideas, leading the people of the world towards a better tomorrow.
3. Opportunity, Mobility and Sustainability shall be the core themes of the Expo and it will connect nations, multinational corporations, non-government organisations and millions of visitors from all over the world, providing an opportunity to see future innovations, marvel at unique architecture, experience diverse cultures, taste cuisines from all over the world, and enjoy live performances, art and other entertainment.

Initiatives in the Expo 2020:
1. Al Wasl Plaza is one of the biggest initiatives taken in the Expo and it is said to bring together a physical manifestation of the main theme of the Expo; it is the site where the event will be conducted and each participating country will have its own pavilion to showcase their achievements and innovations.

2. World Majlis is a dialogue programme aimed at facilitating global conversation and creating connection between people and ideas. It brings together various government, professional, academics and cultural backgrounds in a meetings space where people will share informed opinions to help shape decision for communities.

3. Expo Live is an innovation and partnership programme launched by Expo 2020 to promote creative solutions that improve
lives while preserving the planet. Expo Live will support to demonstrate the power of a World expo in bringing a progressive and a prosperous future.

4. Global Best Practice Programme is a series of best practices from around the world have been selected to be showcased in the event. A total of 25 Best practices in five different categories have been selected by an international jury that can be replicated, adapted and scaled for a greater global impact.

Interesting facts on the Expo 2020

  1. Expo 2020 Dubai will have a dedicated metro station capable of carrying 23,000 passengers per hour in each direction.
    Dubai’s metro system is driverless.
  2. The Expo site is 4.38sq km in size, or 613.5 football pitches if you prefer.
  3. There will be a ‘Superstore of the Future’ on site which will be 3,000sqm in size.
  4. 25 million visitors are expected to visit Expo 2020 Dubai, Australia’s population is a similar number.
  5. Expo is expected to create almost 300,000 jobs. The majority in the tourism sector.
  6. 90% of the materials used to construct the site will be used to create legacy buildings after the event.
  7. Uber has signed an agreement with Dubai’s Roads and Transport Authority to test flying cars during the event.
  8. The Expo 2020 Dubai logo was inspired by a ring found in the UAE at 4000-year-old archaeological site.

 

EXPO 2020: A massive phenomenon for the Country and the people
Each new beginning, every new initiative, any new product brings a lot of changes and development in the society and and the Expo is no different, it also aims in bringing the best for the people and the residents of UAE.

  1. According to Expo 2020 Executive Body, Dubai’s Expo 2020 is expected to yield $24.2 billion in revenue;
  2. Expo 2020 will provide 277,000 new job opportunities and will have a positive impact on small and medium enterprises
    (SMEs);
  3. It is predicted to boost the economy of the Emirates by an average of 6.4 percent every year from 2014 to 2016 – ultimately increasing to 10.5 percent by 2020;
  4. The UAE government has predicted that revenues of up to $17.7 billion will be generated if the Expo is a success, which organizers feel is certain;
  5. Some analysts have predicted that by 2020, the UAE could garner as much as $150 billion in foreign direct investment in sectors such as real estate, hospitality, and tourism;
  6. The Expo 2020 is expecting 25 million visitors, 17 million of which will be international, this naturally will give a big thrust to the tourism and hospitality industries;
  7. For the Expo, Dubai is constructing a massive new city over an area of 1,082-acre. This project itself has generated 15% of the city’s new jobs. The figure is expected to double as the city gets closer to 2020.

 

Conclusion:
Thus Expo 2020 Dubai will be a celebration of human brilliance and achievement and an opportunity for people to connect from different corners of the world, to experience the best of art, culture, geography, science, technology, innovation and invention and to set into motion millions of new thoughts and ideas that will make a lasting impact in our lives.

Throughout its history, UAE has shown the world what is possible through its remarkable development. With Expo 2020 Dubai, Dubai will go a step further in inspiring the next generation to spark innovations that will underline the next 50 years of human progress.

SPICEJET & GULF AIR COLLABORATE TO COORDINATE CARGO SERVICES

SpiceJet and Gulf Air have signed a Memorandum of Understanding (MoU) to examine areas of potential synergy, including looking at co-ordinating cargo services, interline or codeshare agreements, shared engineering services and pilot training. The MoU was signed by Ajay Singh, Chairman and Managing Director, SpiceJet, and Krešimir Kucko, Chief Executive, Gulf Air. Singh comments, “This agreement is going to play a very important role for airline’s next phase of growth as we continue to explore the innumerable opportunities around us.”
SpiceJet’s cargo division, SpiceXpress, took delivery of its first 737-800 Boeing Converted Freighter (BCF) earlier this autumn. The standard-body freighter, the first 737-800BCF to be operated in south Asia, was leased from NGF Alpha Limited, a division of Spectre Cargo Solutions.