CSS EXPANDS GLOBAL FOOTPRINT WITH NEW OFFICE BRANCH IN NAIROBI, KENYA

The Autumn of 2023 has brought a major milestone for Consolidated Console Shipping Services (CSS) as they proudly announced the inauguration of their new branch office in Nairobi, Kenya. This strategic move underscores CSS’s commitment to expanding their global reach and tapping into the vast potential of the African market. It also represents CSS’s commitment to fostering stronger connections with clients and partners in Africa, while underscoring their dedication to providing tailored solutions and services to meet the unique needs of this dynamic market.

CSS looks forward to building lasting relationships and contributing to the growth and development of the African business landscape. By establishing their presence in Africa, CSS can now tap into the immense opportunities that the region offers and expand their global footprint. In an official communication addressed to stakeholders, clients, and employees, CSS expressed their enthusiasm about this significant development. The company’s new office in Nairobi will not only serve as a symbol of their commitment to growth but also open doors to a vibrant and diverse business landscape in Africa.

The foremost goal of CSS is to provide outstanding services and products from this establishment. The Kenyan offices of CSS will serve as an entry point into the African market, allowing them to capitalize on the rich tapestry of the region’s culture and business environment. This expansion reflects the commitment of CSS to delivering tailored solutions and forging meaningful connections in Africa.

CSS believes that their presence in Nairobi, can help them to better understand and respond to the evolving needs of their African clientele. This move also signifies their dedication to fostering local partnerships and contributing to the economic growth and development of Kenya and the broader African continent. CSS is excited about the opportunities that lie ahead as they embark on this new chapter of their global journey.

This strategic step of setting up a brand in Kenya aligns perfectly with Groups extended-term vision and expansion strategy. The inauguration of new branch in Kenya serves as a tangible testament to the collective dedication and determination of the entire CSS team. Such a milestone could not have been reached without the collaborative spirit, innovative mindset, and unwavering loyalty that each member of CSS family brings to the organization.

This expansion aligns perfectly with CSS’s long-term vision and growth strategy, demonstrating the dedication to staying at the forefront of the shipping and logistics industry. The launch of the Kenya branch stands as a testament to the hard work and dedication of the entire CSS family, reflecting the company’s core values and commitment to excellence.

As CSS ventures into this exciting chapter, you can be sure of their resolute in providing exceptional services, engaging with new markets, and contributing positively to the
communities that they serve. Look forward to an exciting future filled with growth and success, with a strong presence in Africa, is poised to leverage new opportunities, foster innovation, and continue their legacy of excellence in the shipping and logistics industry

LCL IMPORT SERVICE FROM KOCHI TO JEBEL ALI

A YEAR ON…

1. What have been the challenges of the first year of operations?

CSS eLogix is ecstatic to announce that we have completed one year in E-commerce fulfilment operation. The big E-commerce push post-pandemic has been enormous due to the comfort and ease at which an individual can shop anything online with just a click of a button. This has only fuelled the demand for online shopping world-wide and here in UAE, online shopping is the new norm or vogue. We are new players in this sector but one primary objective for us as a business unit was to elevate the customer experiences and better than other fulfilment companies. That has been our tag line for our operations and as a novice player, we have gone above and beyond to reinvent the wheel when it comes to customer satisfaction and operational efficiency.

Our operational efficiency in pick and pack accuracy has been close to 99.7% but, if the customer service is below par, then as an e-commerce fulfilment company we have failed. So, it is imperative that both operations and customer satisfaction go hand in hand without failing on either aspect. When I look back, we had several obstacles, but we faced it with an optimism to be one step further than our last benchmark. Although we were thorough in our market research and understood what was required for us to get a foothold, we were always competing against ourselves to meet the daily challenges and achieve the targeted milestone.

The high standards we placed on ourselves have helped our clients to generate trust on us with their commodity and as we mark one year, I am proud to say that CSS eLogix that started in a little fulfilment room has now its own state-of-the-art fulfilment centre, product experts, multi-lingual customer service team, advanced omni-channel ERP software and professionally trained Last Mile Partners (LMD).

Customer service satisfaction is directly proportional to which LMD partner we use in the market. Within a year in operations, we recognized the perfect LMD that suited most demands of our customers. Therefore, our research based on their delivery success and locations data gave us an understanding of a successful LMD we can rely on. CSS eLogix’s data collected over time ensured that we are partnered only with the best Last Mile delivery partners who we can trust with our vision and objectives towards our clients.

2. How many clients do we service now?

Our first step into the market as an e-commerce fulfillment business started off with a strong and successful Top Tier Client. Working with them and their team has impelled us to the limits from the very word ‘Get-Go’ and this aided us in setting high standards and benchmarks on a regular basis. It has been a steep learning curve and we were always humbled and proud to work with our very first client. However, this did not put the brakes on instead propelled us to be hungrier for greatness.

3. What are the plans for the future?

Our plans for the future are in conjunction with the same speed and commitment to which this great country, UAE moves. In UAE, everything happens in lighting speed and in the blink of an eye, there are new developments in every corner. Such is the commitment shown by the UAE government towards its residents and as such there is no slowing down to the efforts put onto make an individual’s life at ease. We want to be in touching distance with technological advancements and contribute more to Dubai’s economy through a fully efficient and functional e-commerce fulfilment centre. In order to achieve this, my vision for the future is categorially simple by focusing on quality over quantity, technology, and our last mile delivery partners.

Strategy 1 : Improve Quality and provide Quality

Success is an art that can only be achieved through perfection, but most business do not heed the quality that is required for being successful here in Dubai. I am here for the long haul and for CSS eLogix to be regarded a success the right quality control mechanisms should be in place. Otherwise, the competition and compliance are so stiff that your business might be challenging to grow. I want to emphasize more on quality service by hiring experts, identify crucial KPI’s for improvement and recognising critical areas to meet strategic objectives.

Strategy 2 : Technological Advancement

One of the key agendas of fulfilment service development for any online shopping business in Dubai should be ensuring faster last-mile delivery. Logistics is a big problem, not only in Dubai but also in the Gulf region in general. Our in-house developed software ensures, there is real time delivery tracking information provided for the client’s ease but even then, deliveries across UAE can get tad bit difficult. This is specially the case when a client do not wish to disclose their private address. However, in the last 1 year of operation, CSS eLogix has been looking for ways to improve delivery services through ultra modern expertise. As a result, we have partnered with What3Words (W3W) – an app that transforms a physical address of an individual’s home into 3 words. These 3 words can be any word generated by the W3W app and the novelty here is that the whole earth is divided into tiny square meters. Each Square represents 3 words and effectively this square differentiates a building’s front door to that of back door giving accurate shipment drop-off points. This is relatively at its primary stage but partnering with W3W, we are aspiring to raise awareness of such technological advances with all our clients. Using such geo-tagging apps will increase the speed &accuracy and reduce the returns in delivery system.

Strategy 3 : Contribute to e-commerce ecosystem

Over the years and especially post-pandemic Dubai has built a fantastic eco-system to cater for online business activities. We want to be major players going forward in this eco-system and as a result we are always striving to bring innovative ideas, learn from the best and improve in terms of services and provide extraordinary customer satisfaction. Here at CSS eLogix Fulfilment centre our services must provide the benefits of the best and upcoming tech trends to support e-commerce. We have a commitment towards our clients and hence I am hoping CSS eLogix will bring in the latest technological additions to keep up with the bubbling trends within the e-commerce industry.

HELPING HANDS FOR TURKEY – DONATION CAMPAIGN IN THE UAE

CSS extended our helping hands to the Turkish Consulate and Turkish Business Council by providing our warehouse and staff in Al Quoz as part of the disaster relief program. CSS Group joined hands with Esskay Logistics under the patronage of the Turkish Consulate and Turkish Business Council. This unprecedented humanitarian effort was launched to collect, sort, and dispatch tons of relief material to Turkey. UAE residents had come together in large numbers to send relief items for those impacted by the deadly earthquake in Turkey and Syria. The collection drive was a combined campaign by the Turkish Consulate in Dubai, the Turkish Business Council, and Turkish Airlines.

The Aid Efforts

CSS Homeward-Bound warehouse opened its doors to residents and volunteers who worked round the clock accepting donations, listing, packaging, and arranging the logistics to move the items from Dubai to Turkey. Donations like blankets, food items, clothing, items for children, medicines, and many more relief materials were packed at the warehouse in Al Quoz. The three-day campaign saw thousands of residents of various nationalities making their way with donations to the warehouse. Turkish authorities had made a list of relief materials that can be donated. “The material to be donated must have never been used before and must be suitable for winter conditions”, a campaign message to residents had earlier read.

The items collected included all types of winter clothing required for adults and children, coats, raincoats, boots, jumpers, trousers, gloves, scarves, berets, socks, and underwear. As for food, durable canned food and baby food were also collected. The Consulate had also asked for baby diapers, hygiene and cleaning materials, and sanitary napkins. Also, items like tents, bedding, mattresses, blankets, sleeping bags, tube stoves, heaters, thermos, flashlights (excluding battery), and generators were collected and packed at the warehouse.

Turkey-Syria Earthquake and its Aftermath

The earthquake struck southern and central Turkey and western Syria on February 6. The 7.8 magnitude earthquake unleashed devastation in southern Turkey and Syria. A total of three powerful earthquakes struck the region in less than 24 hours, claiming more than 40,000 people. It not only caused huge loss of life in both Turkey and Syria, but also led to thousands of injuries, displacement of people from their homes, and substantial damages. Many rescue teams from around the world have been assisting Turkey and Syria with aid and relief work.

Yunis Sezar, head of Turkish Disaster and Emergency Management said, “We are in front of perhaps the biggest disaster we have faced in history. The death toll due to the earthquakes rose to 40,642, and the work of searching and rescue for people stuck under the debris is in the process.” World Health Organization said 26 million people in Turkey and Syria need aid. Seventy countries and 14 international organizations have offered Turkey relief following the quake, Tayyip Erdoğan (President of Turkey) said, including the United States, the United Kingdom, the UAE, Israel, and Russia.

The CSS CSR Efforts

At CSS, our Corporate Social Responsibility (CSR) is part of our core belief. Our CSR efforts enables us to be socially accountable to ourselves, our stakeholders, and the public. The corporate social responsibility initiatives of CSS have always positively impacted all aspects of society be it economic, social, and environmental.
We have always been at the forefront of providing support at times of natural calamities in and around the region and beyond. The team at the warehouse at Al Quoz tirelessly helped with sorting, packing, and dispatching relief material along with other volunteers. After receiving an overwhelming response from scores of members of the community and Turkish expats the organizers had to extend the campaign by a day.

Roshmon Manoli, Vice President, of Freight Forwarding, Consolidated Shipping Group (CSS Group), said, “As part of the larger CSR mission initiated by our Chairman – T.S. Kaladharan, CSS has always been providing support at times of natural calamities in and around the region. Keeping the same humanitarian spirit intact, CSS has extended its aid to the Turkish Consulate and Turkish Business Council by providing our warehouse and staff in Al Quoz as part of the disaster relief program. Supplies will be collected and we welcome the contribution of the larger community during these difficult times for the people of Turkey.”

UAE to Turkey with Love

Under the directives of the leadership of UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan, the UAEswung into action from Day 1 of the earthquake. UAE has been continually sending relief aid to those affected by the earthquake in Syria and Turkey, as part of “Gallant Knight/2”. 37 cargo planes carrying food and medical supplies and shelters for the affected people have been operating from Dubai to Istanbul. Planes have been dispatched to Turkey and Syria with emergency aid, food, medical supplies and rescue teams. In the UAE, volunteers ,humanitarian organizations, and government entities are coming together to mobilize relief. The Emirates Red Crescent is leading a ‘Bridges of Good’ campaign, through which residents have been offering help.

“We are very pleased that the Emirati leadership offered us a helping hand in this moment of distress, and sent teams to deal with it. We are touched by their contributions said Mustafa İlker Kılıç, Consul General of the Turkey Consulate.

In keeping the spirit of the leadership of this nation, CSS has always stepped in with resources and efforts for the hurting world. T.S. Kaladharan, the Chairman of CSS has always been encouraging the teams at CSS to stretch our helping hand to anyone who needs it. He emphasized, “Humanism is when we look out for each other. We might not be able to change the whole world by ourselves, but we surely need to do our bit”.

CSS SHIPS FERRARI 812 SUPERFAST FOR THE GUMBALL 3000 MIDDLE EAST AUTO RACE

CSS Automobile Logistics division proves it again by delivering the Ferrari 812 Superfast for the 2022 Gumball
3000 Dubai to Abu Dhabi Middle East Rally.

With CSS’s expertise in handling luxury and sports cars, CSS was entrusted by our network partner Rhenus Logistics Canada to undertake this critical automobile movement. We were tasked to airfreight the “Ferrari 812 Superfast” from Germany to Dubai. Furthermore, it had to be door delivered to the customer in Dubai.

Upon arrival at Dubai Airport, CSS Projects coordinated with the CSS Airport team. With the assistance of our
in-house documentation and clearance facilities, it had fast-track clearance with ATA Carnet. This super luxury car
was loaded onto a special low truck to ensure safe movements. It was safely and securely transported and
delivered to the customer’s doorstep. This super fine Italian car had arrived from Germany for one purpose, the 2022 Gumball 3000 Dubai to Abu Dhabi Middle East Rally.

Gumball 3000
Gumball 3000 was founded in 1999 by British entrepreneur Maximillion Cooper. Gumball 3000 is a car rally that has taken thousands of supercars and entrants on an epic journey across the globe, touching down on every continent to create one of the greatest bucket lists experiences possible behind the wheel.

This year’s rally started in the futuristic city of Dubai. After the flag-off in Downtown Dubai, the epic adventure blazed a trail through the arid desert country. The rally took a circular route through the amazing country of Oman before the finale in Abu Dhabi. Along the way, they passed through the best roads the region has to offer alongside some once-in-a-lifetime cultural experiences unique to the region.

The major stops were at Jebel Akhdar, Salalah, Muscat, and Ras Al Khaimah, along with several exciting
checkpoints. The Gumballers spent their weekend of VIP hospitality at the Yas Marina Circuit for the finale of the 2022 Formula 1 season – one of the most sought-after and glamorous events on the world’s sporting calendar. The event took place between 12-20th November 2022.

Securing the ATA Carnet

Securing the ATA Carnet for this “Ferrari 812 Superfast” was critical for this operation. The ATA Carnet is often referred to as the “Passport for Goods”. The acronym ATA stands for “Admission Temporaire/Temporary Admission”. This international customs document permits the tax-free and duty-free temporary export and import of nonperishable goods for up to one year. It consists of unified customs declaration forms, which are prepared and ready to use at every border crossing point.

It is a globally accepted guarantee for customs duties and taxes, which can replace the security deposit required by each customs authority. The ATA carnet is now the document most widely used for international operations involving temporary admission of goods.

CSS – Experts at Handling Luxury and Sports Cars

Our in-house documentation and clearance teams handled these tasks smoothly and promptly secured the necessary documentation. The tireless efforts of the CSS Auto Logistics team in this operation are highly commendable. The Automobile Logistics division has shown remarkable performance in handling luxury & sports cars. From auto racks that allow for effective and environmentally friendly loading of vehicles in shipping containers to specialized handling of high-end vehicles door-to-door, the division has become a trusted name in such deliveries in the region and beyond.

The CSS Project operations and CSS Airport team were instrumental in successfully completing this project. With its expertise in import and export requirements, customs regulations, licenses & consular documentation, the Airport Team enabled seamless workflow during the entire operation. The Project team, under the leadership of Arun P, took care of every logistical aspect of the project, considering the complexity of the cargo. The team’s collaborative effort helped us complete the task in the most effective and efficient way.

To airfreight, a luxury car requires both strategic planning and tactical expertise. Over the last few years, CSS has handled various such operations successfully. Today it is one of the most sought-after logistical partners in the region for transporting and delivering luxury and sports cars across borders

CLAIM FOR MISDELIVERY OF CARGO – LIABILITY OF THE CARRIER AND DEFENCE OF TIME BAR.

The Commercial Court, in September 2022, handed down the judgment in FIM Bank vs. KCH Shipping ([2022] EWHC 2400(Comm)), an Appeal under Section 69 of the Arbitration Act, 1996, holding that the time bar in Article III Rule 6 of the Hague Visby Rules can apply to claims in relation to misdelivery after discharge. This case marks a significant milestone since the English Court had never decided on this important question earlier.

In this case, 13 sets of Bills of Lading dated 04 and 14 March 2018 on the Congenbill Form were issued “TO ORDER” for and on behalf of the Master of the Vessel, M/V Giant Ace, for about 85,510 MT in aggregate of coal in bulk. KCH had bareboat chartered the Vessel from Mirae Wise SA (a Panama Company and registered owner of the Vessel). The consignment of coal was loaded in Indonesia and arrived at the Indian ports of Jaigarh and Dighi around two weeks later. The Original Bills of Lading were unavailable at the discharge port, so the cargo was discharged into stockpiles at Indian Ports between 01 and 18 April 2018 against the letter of Indemnity issued to the carriers, KCH Shipping, by the Vessel Charterers. Unbeknown to KCH Shipping, FIMBANK had financed its customer’s purchase of the coal cargo and had been left unpaid under its financing arrangement.

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

Art. III Rule 6 of Hague – Visby Rule reads as “the Carrier and the Ship shall, in any event, be discharged from all liability whatsoever in respect of the goods unless a suit is brought within one year of their delivery or of the date when they should have been delivered.” While deciding the matter, the Arbitration Tribunal stated that the claim was time-barred. FIM Bank brought an appeal to the High Court under Section 69 of the Arbitration Act, 1996, and dismissed the Appeal, making it clear that the Time bar provision applies to this case.

Not only in shipping but in any transport industry, the liability under misdelivery of the cargo can have a
significant impact on a carrier. A Bill of Lading is referred to as a document of title, which gives the holder of the Bill of Lading the right to possession of cargo carried under it, and the endorsement and delivery of the Bill of Lading transfer the right of possession of the cargo to the endorsee. Thereby it is settled law that a carrier who misdelivers the cargo (for any reason whatsoever) is liable for any consequential loss suffered by the holder of the Original Bill of Lading.

FIM Bank wanted to exercise what it considered to be its security for the financing by demanding the delivery of the cargo under the Bills of Lading, of which it claimed to be the lawful holder. Unfortunately for FIM Bank, by the time it tried to exercise its security, the cargo had already been discharged from the Vessel and had been collected by the local receivers. FIM Bank brought a claim in Arbitration under the Bills of Lading. However, FIM Bank commenced the Arbitration against KCH Shipping on 24 April 2020, following an apparent misunderstanding over the identity of the carrier. The preliminary issue in the Arbitration was the claim by FIM Bank was time-barred because the Arbitration commenced after more than 12 months from the date of delivery of the cargo.

However, this case by FIM Bank has marked a blessing to the Ship owners and the carriers under the Bills of Lading. It is also worth noting that one of the main purposes of the Visby Amendment to Article III Rule 6, which substituted the words “discharged from the liability whatsoever in respect of the goods” for the former expression “discharged from all liability in respect of loss or damage” in the Hague Rules was supposedly to ensure that the One-year time bar applied to cases of misdelivery (Deep Sea Maritime Ltd vs. Monjasa A/S, 2018).

JAFZA AND THE JEBEL ALI PORT – A SYMBIOTIC RELATIONSHIP

Jebel Ali Free Zone, Dubai’s largest free zone, is one of the world’s most modern free zones. Jebel Ali Free Zone (Jafza) is the flagship free zone of DP World and is an integral part of DP World, UAE’s integrated business hub. Companies looking for a base in the Middle East region will find Jebel Ali Free Zone as the ideal location. The Jebel Ali Free Zone (Jafza) is a community and ecosystem where industries such as logistics, electronics & electrical, automotive, food and agriculture, e-commerce, petrochemicals, and many more thrive. It offers customizable manufac- turing plots, light industrial units (LIUs), warehouses, offices, and ready-to-move-in showrooms. Apart from this, it provides a dedicated area of over 3.4 million square meters to SMEs, multinationals, and businesses.

Jebel Ali Free Zone (Jafza) ‘s proximity to Jebel Ali Port, Al Maktoum International Airport has helped it become an ideal hub for global trade and a well integrated business setup solution provider.

Jebel Ali Port and JAFZA are a winning combination

One of the biggest advantages of Jafza is its proximity to the Jebel Ali Port. It is the largest port between Rotterdam and Singapore, and can handle all types of cargo, including breakbulk, through its 1.4 million square meters general cargo terminal.

• It has a quay length of 5 km with 27 berths, and a 1.2 million sqm GC Yard makes it ideal for efficient export and import of building materials.
• The region’s busiest port offers the construction sector a seamless and transparent supply chain to transport raw materials or the end product.
• It provides construction companies access to over 3.5 billion existing and potential consumers in the MEASA region.
• The port also provides value-added services like assembling, warehousing, transport management, manufacturing, and fabrication facilities.

Jafza is continually attracting small and medium enterprises (SMEs) and multinationals owing to facilities that will help set up their base in the free zone and expand the reach of their products in the Middle East and Africa, its senior official says.

The multimodal transportation model at JAFZA

Ebtesam Al Kaabi, head of sales at the Jebel Ali Free Zone (Jafza), says that DP World has invested heavily to ensure that sea, land, and air connectivity is offered to customers.

• A logistics corridor connects the Port with Dubai International Airport and Al Maktoum International Airport.
• A dedicated sea-air customs bonded corridor connects a sea-air box within 45 minutes of discharge. This benefits clients in any industry, including the building materials and construction sector, and helps to reach their customers efficiently.
• Soon-to-be-completed Etihad Rail will have a depot within the Jebel Ali facility and will help connect UAE to the GCC region.

This multimodal transportation model has ensured that the free zone supports 12,300 port customers.

Jebel Ali Port holds the key

Jebel Ali Port’s expansive reach to over 150 ports and 80 weekly services to large high-growth markets help free zone companies meet the growing regional and global demand for construction materials. The port’s growth figures over the last ten years demonstrate its competen- cies. From 2011 to 2021, the port handled combined volumes in containers and breakbulk of up to one billion metric tonnes of iron & steel and construction material.

Competitive ocean freight rates, operational flexibility, landside conversion, land for storage, and logistics facili- ties are some of the key features that have led to the growth of the Jebel Ali Free Zone. The free zone has evolved into a trade catalyst and an intelligent business communi- ty that offers unprecedented growth opportunities and market access.

WHAT LIES AHEAD FOR THE LOGISTICS INDUSTRY IN 2023

It has been a tumultuous two years for the global logistics industry. Global supply chain disruptions, port congestion, capacity shortages, increasing ocean freight rates, material and staff shortages, and geo-political crisis have challenged shippers, ports, carriers, and logistics providers. It has adversely affected business competitiveness. According to DP World, the ongoing inflation and geo- political crisis will constrain the global supply chain for the next five years. The logistics and supply chain are continually evolving to get materials and products from origin to destination more quickly and efficiently.

Top five tools which will help the industry to navigate 2023

Flexible logistics strategies these last few years have been marked by a tremendous economic impact due to the pandemic in which the flow of goods and demand forecasts are often challenging to predict due to multiple factors affecting consumer habits. Therefore, in a landscape of increased uncertainty, the supply chain must gain agility with flexible logistics strategies with improved resilience. This is possible with an emphasis on the role of data analytics to attain end-to-end visibility in supply chain operations to quickly identify disruptions and take the necessary counter measurements. The key to building flexible logistical strategies would be:

• Big data analytics for prediction.
• Internet for Things: IoT devices help in real-time object identification & tracking, ensuring items’ safety, delivery time frame, and other supply chain assistance.
• Artificial Intelligence and machine learning for intelligent workflow automation and new customer experiences.

In 2023, the industry will increasingly leverage these capabilities to boost its overall productivity further.

The blockchain

Blockchain technology can increase the security,efficiency, and reliability of all tracking and data management forms. The logistics industry benefits from decentralized ledgers, more innovative inventory management, and alleviating many global trade bottlenecks, including procurement, transportation management, track and trace, customs collaboration, and trade finance.

The logistics sector, which remains fairly paper-heavy, especially in the documentation of custom clearance and other processes, is likely to change in the future. Blockchain solutions will enable paperless cross-border transactions. With this technology, product history can be captured as it moves to the end customer, making transactions foolproof and significantly reducing trade barriers.

Green logistics

Sustainability is the order of the day in the logistics sector. Customers have been willing to pay extra for more sustainable options in the last five years. In UAE, strategic plans have been made to achieve Net-Zero emissions by 2050.

There is a growing trend towards the circular supply chain, which aims to encourage companies to reuse certain waste and products returned by customers to recondition them and bring them back to the market. Only 8.5% of society’s total material consumption is recycled or reused now. Nonetheless, this will gradually change as logistics enterprises continue capitalizing on opportunities across all supply chain segments to step up their sustainability efforts. This will drive companies to explore more ways to make their products greener, starting with their supply chains. Moreover, the region’s long-term goals are to transition to climate neutrality in the next three decades.

In 2023, these collaborative robots will be critical to improving worker safety, productivity, and customer satisfaction. Plenty of companies have upscaled their supply chain with such a holistic integration.

The shift to autonomous vehicles & equipment

An autonomous vehicle that can drive itself with fewer human interventions is being set as another new trend in the logistics industry. Autonomous cars do take advantage of using AI-based technology to optimize travel routes too. Autonomous technology is expected to benefit drivers and bring additional safety. Beyond 2022, it’s almost certain that autonomous vehicles and equipment will maintain their position as a leading trend in the logistics and supply chain sector. In anticipation of a booming lithium-ion battery market to enable the shift to autonomous vehicles, DHL launched the region’s first compliant facility for EV batteries and other dangerous goods.

By 2050, electric vehicles are predicted to make up more than half of all cars on the road, including those used in the logistics industry, which will significantly improve energy use, reduce emissions and benefit the environment. The 23,478-square-metre EV and battery logistics hub in Dubai features a 652-square-meter EV battery storage area, which can be expanded to 2,000 square-meter to support future growth. The hub paves the way for a circular EV economy, where batteries can be stored, recycled, repaired, and processed at the end of life to ensure long-term sustainability. Moreover, it facilitates the antici- pated shift to electrified transport, especially for last-mile delivery.

Enhanced human-machine collaboration

Integrating robotics in logistics helps decrease human error and increase productivity reasonably. Rather than robots replacing humans, they will complement them, especially in manual work and repetitive tasks, thereby bringing in the required efficiency. This digitalization is expected to make jobs more attractive, creating a win-win situation for both employers and employees.

This collaborative shift, where humans and machines work together, will help

• Deliver speed and efficiency.
• Provide safer work environments and employees’ well-being.
• Help employers to re-assign employees to manage higher-value tasks.

Automated storage, delivery & retrieval are the steps to this trend. Delivery drones are the dream “last mile automation” being pursued by a few companies.

Looking forward to 2023

In the Middle East, global retail e-commerce sales are expected to hit $50 billion by 2025. This is an opportunity for logistics players to expand their regional operations further over the year ahead. Regional infrastructure, air, and road capabilities have been invested in meeting the growing global trade demand. These are already driving growth in fulfillment operations across the region.

Logistics operators are already planning by utilizing early intelligence, tools, and technologies to stay ahead of anticipated disruptions, such as fluctuations in oil prices and geo-political tensions. With the digitization of the logistics industry, there will be more changes in the coming years. Logistic companies will leverage technologies like artificial intelligence, cloud, automation, robotics, block- chain, big data, and IOT to provide their customers with intelligent and innovative logistics solutions.

Furthermore, logistics companies will also have to rethink their business strategies to survive in the rapidly evolving logistics market. While uncertainty continues to be a significant concern, integrating innovative technologies and adapting to the changing environment will be the key for today’s leaders to navigate the challenges.

Chairman’s Message

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

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

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

Be Future-Ready!

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

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

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

Digitization – The Game Changer

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

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

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

CSS TEAM PARTICIPATES IN BREAKBULK, EUROPE 2022 AT ROTTERDAM

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

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

Strategic Networking and Deep Learnings

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

Breakbulk Europe – 2022

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

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

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

Key Areas of Discussions

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

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

Now for Breakbulk 2023

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

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

CSS CELEBRATES THE SPIRIT OF RAMADAN WITH IFTAR MEAL DISTRIBUTION

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

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

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

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

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

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

www.youtube.com/watch?v=gyfgSNyBz3U

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

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

20 Years of Operations

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

Qadri’s Journey So Far

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

Kaladharan Congratulates Qadri for the UAE Golden Visa

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

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

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

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

2 DAYS OF INSPIRATION, NETWORKING, AND LEARNING!

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

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

A Stellar Key Note Address by Mark Millar

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

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

The Ice-Breaker Session

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

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

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

About Neptune Network

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

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

 

EMPLOYEES OF THE MONTH

SHIPMENT OF TOYOTA SUPRA

CSS on “Fast and Furious” lanes!

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

CSS Automobile Logistics Does It Again… And Again

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

ATA Carnet – The Passport for Goods

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

Smooth sail for Toyota Supra

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

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

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

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

By: Abhilash Nair

Global CEO of ISS Relocation

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

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

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

†      They can stand up for their beliefs and values.

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

†      They perform better than their less-confident peer.

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

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

If you feel low confidence, you may indulge in:

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

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

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

†      Need approval, validations for small things

†      Don’t trust their judgment.

†      Rely on your phone in social situations.

†      Always back down during disagreements.

†      Take constructive criticism personally.

†      Blame others.

†      Make excuses.

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

†      They are a pessimist. Afraid of the future

†      They are ashamed.

†      Apologize easily

†      Avoid eye contact.

†      They have anxiety and emotional turmoil.

†      They are unable to accept compliments.

†      They neglect themselves. Indulge in negative self-talk

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

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

†      They have self-deprecating humor.

Causes

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

†      Appearance, image issues.

†      Abuse

†      Career Issues

†      Lack of Confidence at Work

†      Peer pressure

†      Sibling rivalry or comparison

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

How to Overcome Low Confidence

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

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

†      Confidence can be inculcated through small practices throughout life.

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

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

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

†      Practice Personal Grooming

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

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

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

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

†      If required, do a personal grooming course online.

Change your thinking patterns:

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

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

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

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

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

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

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

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

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

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

CHINA’S COVID LOCKDOWNS AND THEIR RIPPLE EFFECT

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

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

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

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

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

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

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

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

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

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

Inflation across the globe

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

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

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

Asia

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

Europe

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

Euro-area industrial production for March contracted noticeably.

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

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

Latin America

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

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

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

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

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

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

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

When is A Detention Fee Imposed?

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

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

The Findings of the Investigation

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

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

Ripple Effect of the Penalty

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

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

THE NEW JUDICIAL FEE LAW OF THE KINGDOM OF SAUDI ARABIA

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

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

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

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

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

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

ODYSSEY

Rahat Talreja

Vice President – CSS India Operations

…Tring Tring…

Steve, the freight forwarder: Hi it’s Steve

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

JFK New York

Steve: What’s the tonnage?

Exporter: About 1 ton.

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

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

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

Heathrow, the cargo won’t wait.

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

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

…Tring Tring…

Suzy, the space forwarder on Space Station Mars.

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

Suzy: Sven, how can I help you.

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

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

Roscosmos.

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

Suzy: 60 Million Space Francs

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

Suzy: Sure. Thank you, Sven.

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

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

Protective Suits

Space First Aid Kits

Space batteries for vehicles

Space horn to send signals to other astronauts

Terraforming

Space base construction technology, glues, mortars

Meteorite protection technology

Solar Batteries

Spacecraft Navigation and communication services, repair and insurance

Components and Accessories for Space rockets

Space weapons

Space debris

Space Production: Zero gravitational manufacturing

Space backpacks

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

Components and Accessories for spacecraft, rockets, and space stations

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

Space energy charging points

Space weather forecasting and remote sensing

Space internet and communication systems

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

stations, trips to planets, moons, asteroids

Space Taxi

Space sanatoriums

Space Summer schools

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

Space Food

Space Law