Multimodal Consolidation

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2. What does not kill you, will only makeWhat isyou stronger. - Neitze Multimodal Transport Consolidation Examples ObservationsCHA As MTO - TrendsStrategic OverviewWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC 2 3. 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 4. Right PlaceRight Tariff Right DocumentationSmooth Online Movement InformationRight Time Good Condition Right Price Shantanu Bhadkamkar ATC4 5. Price of service Cost of co-ordination Consequential cost of time Risk of delay and bad service Loss of businessWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC 5 6. Multimodal Transport Operator, is defined as anyperson who concludes a multimodal transportcontractand acts as a principal,not as an agent on behalf of the consignor or onbehalf of the carriers participating in themultimodal transport operations,and who assumes responsibility for theperformance of the contractWednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 6 7. 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 - ATC7 8. 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 9. 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. 10. 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 11. Cost FCL - LCL Deconsol Road MatrixChennai ReWorkingZurichMumbai Hamburg Basel High THC & GenevaTrucking inHamburg LCL-LCL/20 ReWorkingDeconsol Kolkata COLOMBOZURICH CostlyKarachi 40BaselChittagongOcean + RailEuropeanReworking FCL-LCL MMT DeconsolCostly Tuticorin HamburgZurichEuropean By RailBaselLTL TruckingWednesday, March 17,2010 SHANTANU BHADKAMKAR - ATC11 12. Multiple Shipper & Multiple UK PortDeconsolDDU/CFS Consignee JNP CFS FelixstoweForwarders LondonFCL - LCL ThamesportWarehouseLiverpoolBig Terminal ManchesterTruckerGlasgowProximity ToConsignee Competitive Door To Door CostWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC12 13. Door Consolidation Bhadoi USEC/Gulf Delivery MoradabadJNP Intermodal Dallas Jaipur 40 FCL Move No DeconsolMultiple 1 Consignee Buyers Shipper Road / Rail ConsolLCL - FCLWednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC13 14. Cleveland New YorkDubai JNP LCL - $ 120DO 45LCLFees RsDAYS 15,000Cleveland Long Beach Singapore JNP LCL - $ 130 DO Fees 34 DAYS LCLRs 10,000Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 14 15. Cleveland New YorkJNPLCL -$ 110 36 DAYS LCLHighDO FeesTruckingRs 7,000 Cleveland Single DOJNP FCL $ 12530 DAYLCLExtended DO Fees20 18 Cut OffRs 5500CUM Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 15 16. Truck Pick upCharlestonJNP USEC40 FCL DO FeesMid WestLCL 3500South EastCost $ 45 / Usual LinerPick Up CUM LCLcosts Chargescomparable, 32 DaysthoughHigher Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 16 17. Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 17 18. 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 19. More than one mode of transport Sea * Air * Road * Rail Single Document Service Provider UNCTAD/ICC Rules for Multimodal Price Transport Documents Seamless2.1. Multimodal transport contract(multimodal transport contract) means a single Neutral contract for the carriage of goods by at least twodifferent modes of transport. Optimiser 2.2. Multimodal transport operator (MTO)means any person who concludes a multimodal Trackingtransport contract and assumes responsibility for Value Added the performance thereof as a carrier. 20. Domestic Transportation Both the countriesRegulatory Authorities Both the countries & transit if any International Transportation Uni - Modal / Multimodal Other Intermediaries Ports Banks Insurance 21. 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 22. EXIM Trade On High Growth Path Global Container Trade Growth About9% P.A. Over Last Decade, IndiaMatched 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. 23. 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 24. Eyefortransport India Market Report 2007 Indias Geographical Position As a Major AsianTransport and Distribution Hub Location for Outsourcing a Range of Activities(Including Manufacturing, IT and CommunicationServices, Etc) Highly Evolved Banking System Indias Security Focused Banking RegulationsWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC 25 25. Abilities Compulsions Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 26 26. Expert OnCustoms Law Architect OfTransport InformationManagementWednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 27 27. TARRIFSRULES & PROCEDURESLAWS & REGULATIONSRATESROUTESSTORAGEINSURANCE Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 28 28. SHIPPERCONSIGNEE Overseas CARRIER Forwarder INTERNATIONALDOMESTIC FORWARDERDATAPORTS CARRIERWAREHOUSES REGULATORYCUSTOMSBODIES Wednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC 29 29. OLDNEW New Terms Increasing CIF CIP Forwarders C&F FCARole FOB DDP FAS DDU Under Hook Ex-WorksRouting - Consignment Basis - FCR - FWRWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC 30 30. DTD - DDP/DDU Delivered Terms Increased Interplant Movement & VendorManaged Inventory Visibility Change from Need Based to ExpectationBased Service Providers Full Supply Chain Integration - Value Chainincluded Higher Customer Interface Simultaneous Online Processing &Information Flow Servicing at Both the Ends, includingintermediate Proactive Post Delivery Services Wednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC 31 31. oTechnologies Information Management Full Integration with Customers ERP Middle Ware RFID, Bar Coding oSecurity Domestic International Storage, Carriage, PersonnelEnvironmental IssuesImplications of Fuel Costs Rise,particularly Fossil Fuels - Peak OilWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC32 32. Pricing, Costing, MIS, Response Forecasting,Management QuickerLower Feed Back DeliveryCost ConceptAbility To Selling & Handle NewEnhanced RoleUnexpected Of Marketing Situations SuperiorRange ServiceGlobalDealing With Alliances &Uncertainty Strategic NetworkingFlexibility Visibility BetterStrategicManagementGlobal VisionOf Finances 33. Infrastructure CustomersPort Buying AgentsCFSManufacturersWarehouses MerchantsIT CarriersOrganisors AirlinesCHA Shipping LinesIATA RailMTO TruckersNVOCC Courier Liner Agents 3PL PostCONVERGENCE IN LOGISTICSWednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC34 34. EDIRMSDISGLOBALISATION INTERMEDIATION LIBERALISATION DELICENSING SIMPLIFICATION CHACOMPETITIONCHALLENGESWHO KNOW WHAT NEXT?Wednesday, March 17, 2010SHANTANU BHADKAMKAR - ATC35 35. FORWARDERS FUTURE