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It is the real fact that logistics & supply chain is the backbone of industrial and financial growth of any country and world. Different transport modes are the part of logistics & supply chain. Freight forwarders, shippers and transporters are using different modes and many times multi-modes of transport. About multimodal transport which is main ways of cargo movement in these days will be discussed in other posts. I will write a seperate post about it again in our comming posts. In this post we will discuss about the advantages of air transport mode for movement of cargos. We know that ait freight forwarding is fastest and modern mode but it is more expensive than shipping mode of transport. But some of very important advantages of air mode of movement of freight and cargos are as listed below. Inventory costs are low in this mode.Important part is that breakage is negligible.The loss due to rough handling and pilferage is reduced to the minimum.Packaging costs are also very…

It is really important for every importers and air freight forwarders to manage proper handling of air cargo imported in India. Followings are the important things which have to keep in mind when you are using airways to import in India.


consignments are arrives and intimation about its arrival is given by airline/break bulk agent by using cargo arrival notice and importar has to obtain the delivery order from airlines.Submitting a bill of entry on the electronic data interchange from Customs House Agent (CHA) and finalised bill of entry print out received for payment of duty.After payment of duty, the location of cargo is given by Airport Authority of India and goods produced for examination by the customs inspector. Goods are examined by customs. Out of charge is given both on EDI as well as on the hard copy.The Airport Authority of India's dues, challan-cum-gate pass are obtained and the payment is made.The gate pass is presented for delivery of goods obtained.
These are the proc…

A webinar was organized by us on YouTube Live. In this webinar we will discuss about different careers in the field of Logistics and also discuss about how it is easy to become an independent logistics professionals. How the short skill development courses of Join Study will help you.
You already know that people are always trying to join IT, Software and other Engineering sectors they also thinking for Product and marketing Management fields. But what are the great chances for career growth in Logistics sector is discussed here in this webinar. Here is a complete video of this webinar for our blog readers and public.

There ware a public notification issued by Commissioner of Customs, India on the date of 7th March 2018 and notification no is 33/2018. By this notification it is "Mandatory Deceleration of GSTIN, IEC and E-mail address of importer to be included in the Bill of Lading obtained by Shipper.
This notification will be effective from 1st of April 2018.

It is important for Importer that they have to inform all the related details to their Exporters at abroad to incorporated these information and details in the Bill of Lading issued at the time of booking for the related consignments.

GSTIN:-GST Identification Number of ImporterIEC:-Import and Export Code of ImporterE-mail Id:- Official and Legal E-mail Id of Importer There are some reasons to be issued this notification. It is due to hazardous waste in the ports. many hazardous and restricted items were imported by the name of some importers and never cleared the consignments. These uncleared consignments with restricted and hazardous …

The growing importance of dry ports (Inland Intermodal Terminals) in the economic transformation of landlocked nations as well as port countries is widely acknowledge. Dry ports are now becoming the hub of transshipment to inland destinations thereby promoting inter-regional trade and business. More importantly, dry ports are fast becoming the gateway to international markets in facilitating trade, economic growth and development.
In my previous post I have discuss about details of Dry Port (ICD). Hope you will understand properly. Now in this post here is some question for you to solve and check your knowledge. If you have any question then sure ask it on the comment box of this post.

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The functions and the concept of  Dry Ports are better understood by understanding the function of  a Sea Port. At Sea Port, the import cargo of the region is received by incoming ships, the ship is berthed and unloaded, the cargo is segregated for each consignee and stored awaiting customs clearance and delivery. Similarly the export cargoes from the region are aggregated, costumes and other formalities observed and completed and the goods are finally loaded on the appropriate outward bound vessels.  Other admin and customer facilities with proper transport activities are also done in Sea Port.
The Dry Ports perform similar functions. But they receive import cargoes and dispatch export cargoes from or to Sea Port by proper Unit Rail connected to Sea Port. All documentation is done at Dry Port and transport to and from the Sea Port is organised. You can say "A Dry Port is a port provide all the facilities of a sea port at the place far away from sea port."
You may understan…

Dry ports depends essentially on the external trade traffic of the countries in which they are setup.While planning a dry port, therefore the first consideration would be the trade volumes, both inwards and outwards means imports and exports both. once these are decided, detailed breakdown of import and export volumes in every terms would be most useful parameters to outline the necessary facilities that need to be provide in terms of terminal handling, storage and transport.the next step is that panning team have to determine the commodity and its volume that may move from the dry port. during the course of survey it was found that most governments of land-locked countries bring out annual statistics of external trade in terms of commodities and values.The common problem encounter is the paucity of current data regarding the every aspects of commodities trade which could help establish the requirements of transport, handling and storage at the dry port.
It was learnt that basic docume…

Evidentiary Effect of the Multimodal Transport Documents :-

1)  The Multimodal Transport Document shall be prima facia evidence of the taking in charge by the Multimodal Transport Operator of goods as described therein.

2)   Proof of contrary by the Multimodal Transport Operator shall not be admissible if the Multimodal Transport Document issued in negotiable form and has been transferred to a third party, including a consignee, who has acted in good faith in reliance on the description of goods there in.

Negotiability and Title of the Goods :-

  By accepting the Multimodal Transport Document the consignor and his transferees agree with the Multimodal Transport Operator that, unless it is marked "non- negotiable" it shall constitute title to the goods and the holder, by endorsement of this Multimodal Transport Document, shall be entitled to  receiver to transfer the goods mentioned in this Multimodal Transport Document.

It will depend upon the optimum number of containers to be store at any given time which is a function of the dwell time (DT) of containers which are separate for imports, exports and empty containers. Normally seven days for import, three days for export and 15 days for empties is considered pragmetic.

Imports = 6400 TEUs/annum or 18 per day.
At 7 days DT for each, the average inventory will be :
   18*7=126 TEUs
exports = 1600 TEU/annum or 5 TUs/day
at 3 days DT for each, average inventory will be
   5*3=15 TEUs
empties = 4800 TEUs/annum or 14 TEUs/day
at 15 days DT, average inventory will be :
   14*15 or 210 TEUs
Daily total average inventory = 126+15+210=351

The total storage capacity of CY should in the case be 351 of which the ground slot will be a fraction of the stake height. While equipment available may be capable to stake five high, full capacity can not be used for operating consideration as containers have to be shuffled for access and if the stake is full, shuffling an…

Customs Security is usually composed of two elements :- 

-----  A requirement for a financial guarantee to be established in the transit country by the party responsible for the transit operation to meet possible claims by the Customs, coupled with

-----  Physical measures taken by the Customs to verify that the goods are eventually re-exported.

Under the TIR guarantee system, each contracting party designated a national guaranteeing assosiation, which undertakes to act as a guarantor for all TIR carnets used for transit on the territory of the country,

Regardless of whether the carnets have been issued by the association itself or by association of other countries which are parties to the TIR Convention.

All these associations form a chain in which members are linked to each other through an International Organization, which is the International Road Transport Union (IRU).

Reference to Customs Security Arrangements in the MT Convention was limited to the following .

-----  A financi…

Trade Logistics is a chain of series of links and interfaces with potential for value addition. The difference between the revenue earned by a business enterprise and the cost of bought-in materials, services and components, represent the value which a firm adds by the process of production. The value added concept is also important in that it helps in measuring productivity and profitability of an enterprise, its impact on the national economy and keeping in focus the sources of comparative advantage like logistics, marketing, sales and service.

Through optimization which is the essential function of logistics, many nations like new big economic nation India and China, also developed nation like USA and western European nations and Japan have benefited by :-

-----  Selling service rather than remaining content with the price of exporting.

-----  Simplifying documentation, customs clearance and payment formalities.

-----  Offering varied choice of delivery terms.

-----  Increase in t…

Period of Responsibility for  Liability of Carrier :-

1)  The responsibility of the carrier for the  goods under many convention covers the period during which the career is in charge of the goods at the port of loading, during the carriage and at the port of discharge.

2)  For the purpose of  this article the carrier is deemed to be in charge of the goods.

a)  from the time has taken over the goods from

-----  the shipper or a person acting on his behalf

-----  an authority or other third party to whom, pursuant to law or regulations applicable at the port of loading, the goods must be handed over the shipment.

b)  Until the time has delivered the goods.

-----  by handing over the goods to consignee.

-----  in case where the consignee does not receive the goods from the career by placing them at the disposal of the consignee in accordance with the contract or with the law or with the usage of the particular trade applicable at the port of discharge.

-----  bu handing over the goods t…

Traffic Forecasts :-

In traffic forecasting two methods can be resorted to, which as may appear are not mutually exclusive.
These are :-

-----  trend analysis and extrapolation.

-----  trade projections based on economy of the country and are done on the basis of actual economics parameters.

Both methods applied mechanically and in isolation can lead to very unrealistic figures. Normally trade forecasting will start with the trade statistics of the previous years preferably in both value and volume terms.

Port statistics may be helpful in other cases but in the context of LLCs where the serving ocean ports may not have the country-wise exports, this method will not help to allow analysis of trend, a run of figures is needed and the period should be preferably at least as long as the forecasting period.  

The economists approach in trade forecasting would tend to categorize commodities according to their economic properties .

A clear cut distinction has to be made between exports and …

In a voyage charter the time spent by the vessel at the port is, of particular importance to the owner because the freight is fixed only with reference to the quality of cargo carried and any undue detention during which he continues to incur fixed overhead charges such as depreciation, insurance, interest on invested capital, wages etc. would reduce his calculated profit.

An important clause in the charter party is therefore the one stipulating the maximum time to be allowed for the cargo loading and discharging operations, that is Lay Time.

The provisions of the charter party usually state that lay time is to commence at a specific time after notice of readiness has been given.

The cancelling date is applicable to the loading port only and is the absolute last day under the terms of the charter party on which the charterer is obliged to make use of the vessel.

Lay Time may be expressed as the maximum number of days allowed for loading and discharge or as loading/discharge rate like…

Time Charter in Shipping is usually restored to when the charterer desires to operate a vessel for a period of time without undertaking either the financial commitments of ownership or responsibilities of navigation and management of the vessel.

Point of difference between time charter and voyage charter is the basis of calculating hire or freight . In the case of voyage charter freight is paid on the cargo carried and is directly proportionate to the volume of the cargo. In the case of time charter, the volume of cargo has no relation to the charter hire which is fixed on the basis of carrying capacity of the vessel and is directly proportionate to the period of charter .

Followings are the clauses contained in the time charter party usually related to :-

-----  Description of the vessel name, flag, ownership, class, gross and net registered tonnage, cargo capacity, indicated horse power and speed, bunker consumption, etc.

-----  Rate of cahrter hire and mode of payment.

-----  Char…

Bare Boat Charter is also known as Demise Charter. This is a type of contract under which the owner provides the service of vessel to the Charterer for a period of time in return for charter hire. For all practical purpose, charterer acts as the owner of the vessel during the period of charter but without undertaking the financial commitments of ownership.

The Bare Boat Charter party commonly used is the standard "Barecon" charter party. The charter party usually contains clauses relating to;

1)  Description of vessel - such as size, speed, fuel consumption, loading capacity etc. on which the performance will be depend.

2)  Survey to be carried out on delivery and re-delivery.

3)  Inventories of stores to be taken on delivery and re-delivery.

4)  Charter period - usually a provision of included giving the charterer the option of extending the validity of the charter by a specified period.

5)  Rate of charter hire and mode of payment. This is usually computed on the deadweig…

There are two important decisions in Warehousing. Which are as follows :-

A)  Warehousing Location : The following factors influence the location of a warehouse:-

------  Transport facilities available.

------  Transportation cost of serving the market area.

------  Transportation cost of supply to the warehouse.

-----  Product price, customers' expected level of service and the resulting inventory carrying costs.

-----  Exise duties and other taxes assesed in the area.

-----  Labour supply and costs.

-----  Land and construction cost.

-----  Availability of power, water and communication.

-----  Climatic conditions.

-----  Attitude of residents and government towards the establishment of the warehouse.

-----  Potential for future expansion.

-----  Location of warehouse of competitors.

B)  Own versus lease versus use Public Warehouse :-

A warehouse may be privatly used or publically used . If a company makes goods and these are stored exclusively in some warehouse, then such wareho…

Paperless trading is done by Electronic Data Interchange (EDI). EDI is a very important Part of Modern Trade and Logistics.  Evolution of data elements that can be transmitted electronically to interchange trading information such as invoice etc. have been part of this development.

Advantage of Paperless Trading :-

------  EDI saves on clerical costs by avoiding re-entering of data. It allows timely and error free transaction information be passed from one computer to another.

-----  By improving information management and data exchange between organizations, EDI promotes introduction of new business strategies such as just in time manufacturing based on zero stock principle.

-----  Providing error free information to the right place at the right time; thus quicker response to orders, shortening of delivery cycle.

-----  Reducing stocks levels and thus increasing availability of working capital.

-----  Quicker and safer processing of invoice brings speedy payments with improving cash…

-----   Having determined the trade volumes , the immediate exercise would be estimate the traffic flows likely to be materialized at the dry port . This volume obviously would be a percentage of the total trade volumes and would be influenced by many factors having a direct or indirect bearing on such traffic .

-----   To begin with such commodities as crude oil , petroleum, oil and lubricants, dry bulk cargoes like minerals and ores, coal, cement, fertilizers and heavy structural including steel etc.  have to be discounted to the appropriate extent .

-----   The general principal to be followed should be to concentrate on containerisable commodities, and general cargo able to containerization .

-----   This fact is supported by ever increasing conversion of breakbulk general goods traffic into containerized transport and this being the future scenario, provisions of container handling facilities should suffice at the dry ports.

-----   After having obtained the volumes of container…