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.

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.