Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC SHANTANU BHADKAMKAR A.T.C. (Clearing & Shipping) P.L. Vice Chairman Federation Of Freight Forwarders’ Associations In India FORWARDERS’ FUTURE

What is Multimodal Transport Consolidation Examples Observations CHA As MTO - Trends Strategic Overview Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC What does not kill you, will only make you stronger. - Neitze Comprehensive Overview

What is

Multimodal Transport

Consolidation

Examples

Observations

CHA As MTO - Trends

Strategic Overview

Negative Freight High Destination Charges High Incentives – Rebates … Exploit or Get Exploited Power Of Pre-Dated BL Oligopoly, Monopoly Simplistic Sub-Contracting Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Negative Freight

High Destination Charges

High Incentives – Rebates …

Exploit or Get Exploited

Power Of Pre-Dated BL

Oligopoly, Monopoly

Simplistic Sub-Contracting

Shantanu Bhadkamkar ATC Smooth Movement Online Information Right Place Right Documentation Good Condition Right Price Right Time Right Tariff

Price of service Cost of co-ordination Consequential cost of time Risk of delay and bad service Loss of business Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Price of service

Cost of co-ordination

Consequential cost of time

Risk of delay and bad service

Loss of business

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’ Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

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’

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. Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

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.

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 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.

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 Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

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

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC Competitive Door To Door Cost

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC LCL - FCL

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

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

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 Price Seamless Neutral Optimiser Tracking Value Added UNCTAD/ICC Rules for Multimodal Transport Documents 2.1. Multimodal transport contract (multimodal transport contract) means a single contract for the carriage of goods by at least two different modes of transport. 2.2. Multimodal transport operator (MTO) means any person who concludes a multimodal transport contract and assumes responsibility for the performance thereof as a carrier.

More than one mode of transport

Sea * Air * Road * Rail

Single

Document

Service Provider

Price

Seamless

Neutral

Optimiser

Tracking

Value Added

Domestic Transportation Both the countries Regulatory Authorities Both the countries & transit if any International Transportation Uni - Modal / Multimodal Other Intermediaries Ports Banks Insurance

Domestic Transportation

Both the countries

Regulatory Authorities

Both the countries & transit if any

International Transportation

Uni - Modal / Multimodal

Other Intermediaries

Ports

Banks

Insurance

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC 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

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

Overview On Indian Container Shipping

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

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

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 Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC 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

Abilities Compulsions Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Abilities

Compulsions

Expert On Customs Law Architect Of Transport Information Management Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC EFFICIENCY - COST SAVING – EFFECTIVITY - SOLUTIONS

Expert On Customs Law

Architect Of Transport

Information Management

TARRIFS RULES & PROCEDURES LAWS & REGULATIONS RATES ROUTES STORAGE INSURANCE Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC TRACKING SAFETY SECURITY ENVIRONMENT

TARRIFS

RULES & PROCEDURES

LAWS & REGULATIONS

RATES

ROUTES

STORAGE

INSURANCE

TRACKING

SAFETY

SECURITY

ENVIRONMENT

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC Overseas Forwarder DATA CARRIER CUSTOMS REGULATORY BODIES PORTS WAREHOUSES CARRIER INTERNATIONAL DOMESTIC SHIPPER CONSIGNEE FORWARDER

OLD CIF C&F FOB FAS Under Hook NEW CIP FCA DDP DDU Ex-Works Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC Routing - Consignment Basis - FCR - FWR New Terms Increasing Forwarders Role

OLD

CIF

C&F

FOB

FAS

Under Hook

NEW

CIP

FCA

DDP

DDU

Ex-Works

Routing - Consignment Basis - FCR - FWR

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 Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC Proliferation of Successful Strategies

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

Technologies Information Management Full Integration with Customer’s ERP Middle Ware RFID, Bar Coding … Security Domestic International Storage, Carriage, Personnel Environmental Issues Implications of Fuel Costs Rise, particularly Fossil Fuels - Peak Oil Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Technologies

Information Management

Full Integration with Customer’s ERP

Middle Ware

RFID, Bar Coding …

Security

Domestic

International

Storage, Carriage, Personnel

Environmental Issues

Implications of Fuel Costs Rise, particularly Fossil Fuels - Peak Oil

EMERGING TRADE & INDUSTRY ISSUES Shantanu Bhadkamkar

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC CONVERGENCE IN LOGISTICS

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC WHO KNOW WHAT NEXT?

Saturday, June 6, 2009 SHANTANU BHADKAMKAR - ATC

Shantanu Bhadkamkar ATC FORWARDERS’ FUTURE