Multimodal Consolidation
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Multimodal Consolidation Multimodal Consolidation Presentation Transcript

  • FORWARDERS’ FUTURE SHANTANU BHADKAMKAR ATC (Clearing & Shipping) P.L. Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 1
  • What does not kill you, will only make  What is you stronger. - Neitze  Multimodal Transport  Consolidation •  Examples •  Observations  CHA As MTO - Trends  Strategic Overview Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 2
  • ✘  Negative Freight ✕ High Destination Charges ✕ High Incentives – Rebates … ✕ Exploit or Get Exploited ✘  Power Of Pre-Dated BL ✘  Oligopoly, Monopoly ✘  Simplistic Sub-Contracting Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 3 View slide
  • Right Place Right Tariff Right Documentation Smooth Online Movement Information Right Time Good Condition Right Price Shantanu Bhadkamkar ATC 4 View slide
  •   Price of service   Cost of co-ordination   Consequential cost of time   Risk of delay and bad service   Loss of business Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 5
  • Multimodal Transport Operator, is defined as ‘any person who concludes a multimodal transport contract and acts as a principal, not as an agent on behalf of the consignor or on behalf of the carriers participating in the multimodal transport operations, and who assumes responsibility for the performance of the contract’ Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 6
  •   Freight integrators are transport service providers who arrange full load, door-to-door transportation by selecting and combining without prejudice the most sustainable and efficient mode(s) of transportation. Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 7
  •  The Freight Forwarder, who consolidates shipments, pays lower price for carriage  The Freight Forwarder's partner, who will receive all goods, will protect his customers' interests
  • The grouping together of smaller consignments of goods into a large consignment for carriage as a larger unit in order to obtain a reduced rate. • The Freight Forwarder issues separate Shipment Transport Documents (FBL/HAWB/MTD) for every consolidated shipment and obtains a collective one from the performing carrier. On the collective Shipment Transport Document the Freight Forwarder who consolidates the parcels is the Shipper, and the consignee is the Freight forwarder at the destination who de-consolidates them. • The carrier has only a look into his BL/AWB. • The Shipper / Consignee has a FBL/HAWB/MTD.
  •   Others   Tuticorin & Rest Of India to Zurich & Basel   India to UK DDU   Own   Cleveland to JNP   Atlantic   Pacific   Bhadoi to Dallas   JNP to Atlanta via Charleston Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 10
  • Cost FCL - LCL Deconsol Road Matrix • Chennai • ReWorking • Zurich • Mumbai • Hamburg • Basel High THC & • Geneva Trucking in Hamburg LCL-LCL/20’ ReWorking Deconsol • Kolkata • COLOMBO • ZURICH Costly • Karachi • 40’ • Basel • Chittagong • Ocean + Rail European Reworking FCL-LCL MMT Deconsol Costly • Tuticorin • Hamburg • Zurich European • By Rail • Basel LTL Trucking Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 11
  • Multiple Shipper & Multiple UK Port Deconsol DDU/CFS Consignee • JNP CFS • Felixstowe • Forwarders • London • FCL - LCL • Thamesport Warehouse • Liverpool • Big Terminal • Manchester Trucker • Glasgow • Proximity To Consignee Competitive Door To Door Cost Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 12
  • Door Consolidation • Bhadoi • USEC/Gulf Delivery • Moradabad • JNP • Intermodal • Dallas • Jaipur • 40’ FCL Move • No Deconsol • Multiple • 1 Consignee Buyers Shipper Road / Rail Consol LCL - FCL Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 13
  • Cleveland New York Dubai JNP • LCL - • $ 120 • DO • 45 LCL Fees Rs DAYS 15,000 Cleveland Long Beach Singapore JNP • LCL - • $ 130 • DO Fees • 34 DAYS LCL • Rs 10,000 Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 14
  • Cleveland New York JNP • LCL - • $ 110 • 36 DAYS LCL • High • DO Fees Trucking Rs 7,000 Cleveland Single DO JNP • FCL – • $ 125 • 30 DAY LCL • Extended • DO Fees • 20’ – 18 Cut Off Rs 5500 CUM Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 15
  • Truck Pick up Charleston JNP • USEC • 40’ FCL – • DO Fees • Mid West LCL 3500 • South East • Cost $ 45 / • Usual Liner • Pick Up CUM LCL costs Charges comparable, • 32 Days though Higher Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 16
  • Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 17
  •   Seamless Movement   Options & Alternatives   Solutions to common & uncommon problems   Bridges Gaps in the Efficiency Voids   Brings efficiency to the movement   Reliability   Makes movement cost effective   Flexible   Acts as Buffer & Moderator   One Stop Shop
  •   More than one mode of transport Sea * Air * Road * Rail   Single   Document   Service Provider UNCTAD/ICC Rules for Multimodal   Price Transport Documents   Seamless 2.1. Multimodal transport contract (multimodal transport contract) means a single   Neutral contract for the carriage of goods by at least two different modes of transport.   Optimiser 2.2. Multimodal transport operator (MTO) means any person who concludes a multimodal   Tracking transport contract and assumes responsibility for   Value Added the performance thereof as a carrier.
  •   Domestic Transportation   Both the countries   Regulatory Authorities   Both the countries & transit if any   International Transportation   Uni - Modal / Multimodal   Other Intermediaries   Ports   Banks   Insurance
  •  30% Of Total Container Traffic Handled By Major Ports Moves Between Gateway Ports And Inland Centres  More Reliance On Smaller / Feeder Vessels  Higher Cost Of Inland Container Movement, In Comparison To ASEAN Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 22
  •   EXIM Trade On High Growth Path   Global Container Trade Growth About 9% P.A. Over Last Decade, India Matched This   Indian Ports Container Traffic Forecast •  11 M TEU By 2011-2012 •  42 M TEU By 2021-2022 •  Possibly Higher Growth @ 16-18% P.A.
  •   National Maritime Development Programme:   Launched 30.12.2005 Envisage Investment Rs. 1,003 B. (Us$ 22 B.) In 387 Port & Shipping Sector Projects Over 20 Years   Port Sector Investment: Rs. 558 B. (Us$ 12 B.) Over Next 6 Years - Public Private Partnership Funding   National Highway Development Program   Mainly Golden Quadrilateral   Other Phases 20,000 kms   NATIONAL RAIL VIKAS YOJANA   Freight Corridor: Dedicated Rail Corridor Between Delhi & Kolkata And Delhi & Mumbai - Investment Over Rs 250 B (Us$ 54 B) Delhi- Mumbai
  • Eyefortransport India Market Report 2007   India’s Geographical Position As a Major Asian Transport and Distribution Hub   Location for Outsourcing a Range of Activities (Including Manufacturing, IT and Communication Services, Etc)   Highly Evolved Banking System   India’s Security Focused Banking Regulations Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 25
  •   Abilities   Compulsions Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 26
  •   Expert On Customs Law   Architect Of Transport   Information Management Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 27
  •  TARRIFS  RULES & PROCEDURES  LAWS & REGULATIONS  RATES  ROUTES  STORAGE  INSURANCE Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 28
  • SHIPPER CONSIGNEE Overseas CARRIER Forwarder INTERNATIONAL DOMESTIC FORWARDER DATA PORTS CARRIER WAREHOUSES REGULATORY CUSTOMS BODIES Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 29
  • OLD NEW New Terms Increasing   CIF   CIP Forwarders   C&F   FCA Role   FOB   DDP   FAS   DDU   Under Hook   Ex-Works Routing - Consignment Basis - FCR - FWR Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 30
  •   DTD - DDP/DDU – Delivered Terms   Increased Interplant Movement & Vendor Managed Inventory   Visibility   Change from ‘Need Based’ to ‘Expectation Based’ Service Providers   Full Supply Chain Integration - Value Chain included   Higher Customer Interface   Simultaneous Online Processing & Information Flow   Servicing at Both the Ends, including intermediate   Proactive   Post Delivery Services Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 31
  • o  Technologies   Information Management   Full Integration with Customer’s ERP   Middle Ware   RFID, Bar Coding … o  Security   Domestic   International   Storage, Carriage, Personnel   Environmental Issues   Implications of Fuel Costs Rise, particularly Fossil Fuels - Peak Oil Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 32
  • Pricing, Costing, MIS, Response Forecasting, Management Quicker Lower Feed Back Delivery Cost Concept Ability To Selling & Handle New Enhanced Role Unexpected Of Marketing Situations Superior Range Service Global Dealing With Alliances & Uncertainty Strategic Networking Flexibility Visibility Better Strategic Management Global Vision Of Finances
  • Infrastructure Customers • Port • Buying Agents • CFS • Manufacturers • Warehouses • Merchants • IT Carriers Organisors • Airlines • CHA • Shipping Lines • IATA • Rail • MTO • Truckers • NVOCC • Courier • Liner Agents 3PL • Post CONVERGENCE IN LOGISTICS Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 34
  • EDI RMS DIS GLOBALISATION INTERMEDIATION LIBERALISATION DELICENSING SIMPLIFICATION CHA COMPETITION CHALLENGES WHO KNOW WHAT NEXT? Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 35
  • FORWARDERS’ FUTURE