Multimodal Consolidation
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Transcript of Multimodal Consolidation
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 1
SHANTANU BHADKAMKAR
ATC (Clearing & Shipping) P.L.
FORWARDERS’ FUTURE
What is Multimodal Transport Consolidation
• Examples • Observations
CHA As MTO - Trends Strategic Overview
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 2
What
does
not
kill
you,
will
only
mak
e yo
u s
tronger
. -
Nei
tze
✘ 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
Shantanu Bhadkamkar ATC 4
Right Place
Right Documentation
Good Condition
Right Price
Right Time
Right Tariff
Smooth
Movement Online
Information
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
LCL-LCL/20’
• Kolkata • Karachi • Chittagong
ReWorking
• COLOMBO • 40’ • Ocean + Rail
Deconsol
• ZURICH • Basel
FCL - LCL
• Chennai • Mumbai
Deconsol
• ReWorking • Hamburg
Road
• Zurich • Basel • Geneva
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 11
FCL-LCL
• Tuticorin
MMT
• Hamburg • By Rail
Deconsol
• Zurich • Basel
Cost Matrix
High THC & Trucking in Hamburg
Costly European
Reworking
Costly European
LTL Trucking
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 12
• London • Liverpool • Manchester • Glasgow
DDU/CFS
• Forwarders Warehouse
• Big Terminal Trucker
• Proximity To Consignee
Deconsol
• Felixstowe • Thamesport
UK Port
• JNP CFS • FCL - LCL
Multiple Shipper & Multiple Consignee
Competitive Door To Door Cost
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 13
• Bhadoi • Moradabad • Jaipur
Buyers Consol
• JNP • 40’ FCL • Multiple
Shipper
Consolidation • USEC/Gulf • Intermodal
Move
Road / Rail
• Dallas • No Deconsol • 1 Consignee
Door Delivery
LCL - FCL
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 14
Cleveland
• LCL - LCL
Long Beach
• $ 130
Singapore
• DO Fees • Rs 10,000
JNP
• 34 DAYS
Cleveland
• LCL - LCL
New York
• $ 120
Dubai
• DO Fees Rs 15,000
JNP
• 45 DAYS
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 15
Cleveland
• FCL – LCL
• 20’ – 18 CUM
Single DO
• $ 125 • Extended
Cut Off
JNP
• 30 DAY • DO Fees
Rs 5500
Cleveland
• LCL - LCL
New York
• $ 110 • High
Trucking
JNP
• 36 DAYS • DO Fees
Rs 7,000
Truck Pick up
• USEC • Mid West • South East
• Pick Up costs comparable, though Higher
Charleston
• 40’ FCL –LCL
• Cost $ 45 / CUM
JNP
• DO Fees 3500
• Usual Liner LCL Charges
• 32 Days
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 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.
Domestic Transportation Both the countries
Regulatory Authorities Both the countries & transit if any
International Transportation Uni - Modal / Multimodal
Other Intermediaries Ports Banks Insurance
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 22
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
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
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 25
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
Eyefortransport India Market Report 2007
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
Overseas Forwarder
DATA CARRIER
CUSTOMS REGULATORY
BODIES
PORTS WAREHOUSES
CARRIER INTERNATIONAL
DOMESTIC
SHIPPER CONSIGNEE
FORWARDER
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 29
OLD
CIF C&F FOB FAS Under Hook
NEW
CIP FCA DDP DDU Ex-Works
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 30
Routing - Consignment Basis - FCR - FWR
New Terms Increasing Forwarders
Role
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,
Forecasting, Feed Back
MIS, Response Management
Concept Selling &
Enhanced Role Of Marketing
Ability To Handle New Unexpected Situations
Dealing With Uncertainty
Global Alliances & Strategic
Networking
Better Management Of Finances
Strategic Global Vision
Quicker Delivery
Lower Cost
Superior Service Range
Flexibility Visibility
3PL
Carriers • Airlines • Shipping Lines • Rail • Truckers • Courier • Post
Infrastructure • Port • CFS • Warehouses • IT
Customers • Buying Agents • Manufacturers • Merchants
Organisors • CHA • IATA • MTO • NVOCC • Liner Agents
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 34
CONVERGENCE IN LOGISTICS
CHA CHALLENGES
SIMPLIFICATION
LIBERALISATION
GLOBALISATION
EDI RMS
DIS INTERMEDIATION
DELICENSING
COMPETITION
Wednesday, March 17, 2010 SHANTANU BHADKAMKAR - ATC 35
WHO KNOW WHAT NEXT?
FORWARDERS’ FUTURE