Handling of Imported Air Cargo In India

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 process to follow to arrivals of air cargo for clearance. The clearance of cargo is highly skilled process and lots of rules has to followed. these rules and process has to be complete step wise and finally you will get proper clearance of your air cargos.

Handling of Export Cargo From India by Air

It is really important for every exporters and air freight forwarders ti manage proper handling of air cargo exported from India. Followings are the important things which have to keep in mind when you are using airways to export from India.

Lufthansa Cargo Plane is just waiting to fill up the cargo

• Submission of export documents with customs fro procession. One copy of GR1 form along with a copy each of other documents are detached and kept by the customs. 
• Documents are properly entered in the computer.
• Check-list which has to be obtained from system after verifying the adequacy of the documents and the shipping bill numbers obtained.
• Goods has to be taken into The Airport Authority of India terminal for examination, then obtained Export Order from the customs.
• After this location will be allotted and the goods has to be handed over to the Airport Authority of India.
• It is important that documents are handed over the shipper.
• The export promotion copy of the shipping bill has to be obtained from customs and sent it to the shipper within a week of the date of shipment.

These are the process which has to be followed by every exporter or air freight agents for exporting goods from India by airways. 

Careers in Logistics

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.

Mandatory Deceleration For Imports In India

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 Importer
• IEC:-Import and Export Code of Importer
• E-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 attitude are become a dangerous liability and problems for ports and customs authorities. 

To be kill this type of practices the Commissioner of Costumes, India has issued this notification. 

Packing principles relating to cargo in containers

Packaging is an important part for logistics. It is a big topic for study about the packing principles relating to cargo in containers. in this topic we will discuss about all important packing principles regarding this. Principles regarding stowing of all cargo into the containers is also plays an important role in logistics performance. It is important to know that how to restrain the cargo and also about the shorting, lashing, wedging and locking. Below is the slide shows, In this slide shows you will all the related discussion in details. this slide sows provide you a better concept regarding the packing principles relating to cargo in containers. Please see the slide shows below.

Difference Between Logistics, Supply Chain and Transport.

Many professionals and new comers in the field of Logistics and Supply Chain get always confused regarding these terms and always asking about the actual difference between them. Here is this video I will discuss all the three terms and detailing the correct difference between them.
If you think this video is really helpful for you then please subscribe my channel and see many videos related with Logistics, Supply Chain and Transport. These videos are very useful for professionals, students and new comers in the field of Logistics and Supply Chain Management.

The Growing Importance Of Dry Ports.

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.

Functions OF A Dry Port (ICD)

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 understand the concept and activities of a Dry Port by this slide shows.

Assignments on Documentation and Liabilities

Social medias are full of unnecessary discussion and thoughts. Every people on the social medias are claiming their ability fake but some of them are true also. Blog is original image of public qualities and their abilities.
So I am posting here an assignments for all Logistics Professionals, students and teachers. Please solve these question which are very important to check your abilities.

Importance of Trade Volume for planning a Dry Port

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 document used for these statistics is the custom.

declaration failed at the border or at the check point and this contained the

information on the weight of consignment. There is no other practical difficulties in compiling the

weight of commodities imported and exported.

As in all developing countries, the pattern of trade in the land-locked countries consists

predominantly of exports of primary commodities and semi manufactured goods and import of

finished products.

The important fact to consider will be the separate requirements of commodities and their volumes

both for imports and exports that have to be catered for at the dry port. The facilities and their size

would have to be determined accordingly.

Models in Logistics Management

Various quantitative models from the Operation Research Literature can be used to address the decision areas in Logistics.

Location models:- These models help in planning the optimal location of plant or warehouses, considering the inbound and outbound transportation costs and infrastructure cost at the locations. 

• Allocation models:- These models help in optimally allocating commodities from sources to destinations in a multiple sources, multi destination environment. The costs consider for optimization are the production cost, transportation cost and warehousing.
• Distribution network design models:- These models are usually comprehensive in nature deciding between a two, three or even four stage distribution network, location of warehouses and break bulk points and sometimes even the transport mode choice.
• Inventory models:- Inventory models play a key role in Logistics Management. The inventories that are directly affected due to outbound logistics are 

1. Finished Goods Inventory
2. Pipeline Inventory
3. Warehousing Inventory
4. Retail Inventory

The typical cost trade-offs between inventory and other decisions in Logistics would be

1. Inventory vs Transportation Costs
2. Inventory vs Stock out Costs
3. Inventory vs Spoilage and Materials Handling Costs

• Routing models:- These models allow optimal routing on a transportation network from a given source to a destination. The simplest model is scales the Shortest Path Problem.

If you want to do more discussion about this topic the join our Online Classes of Logistics Management. Classes are clearly distributed as per the need of your's. You are welcome to enjoy Assignments, Workshop, Lessons and Forums are free of cost. You have to pay only for our one to one or group Online Tuition Classroom if you wish to join.

Defense and Limits for Multimodal Transport Operator

Defense and Limits for MTO

-----     The defenses and the limits of the liabilities provided for in this Multimodal transport Document shall apply in action against the Multimodal Transport Operator in respect of loss resulting from loss of or damage to goods; delay in delivery and any consequential loss or damage arising from such delay. 

-----     If any action in respect of loss resulting from loss of, or damage to, the goods or from delay in delivery is brought against the servant or agent of the Multimodal Transport Operator, if such servant or agent proves that the acted within the scope of his employment, or against any other person whose service he makes use for the performance of the Multimodal Transport Contract, if such other person proves that he acted within the performance of the contract, the servant or agent or such other person shall be entitled avail himself of the defenses and limits of liability which the Multimodal Transport Operator is entitled to invoke under this Multimodal Transport Document.

-----     Except as provided for liability of delay, as mentioned below, the aggregate of the amount recoverable from the Multimodal Transport Operator and from a servant or agent or any other person of whose service he makes use of for this performance of the Multimodal Transport Contract shall not exceed the limits of liability provided for in this Multimodal Transport Document.    

Applicability of UNCTAD/ICC Rules

 Applicability for Multimodal Transport Document :- 

These rules apply when they are incorporated, however this is made, in writing, orally or otherwise, into a contract of carriage by reference to the “UNCTAD/ICC Rules for Multimodal Transport Document” , irrespective of whether there is a Unimodal or a Multimodal Transport Contract involving one or several modes of transport or whether a document has been issued or not.

Whenever such a reference is made, the parties agree that these rules shall supersede any additional terms of the Multimodal Transport Contract which are in conflict with these rules, expect insofar as they increased the responsibility or obligations of the Multimodal Transport Operator.

Multimodal Transport Contract means a single contract for the carriage of goods by at least two different modes of transport and Multimodal Transport Operator means the person who concludes a Multimodal Transport Contract and assumes responsibility for the performance thereof as a carrier. 

But if the goods have not been delivered within 90 consecutive days following the date of delivery determined according the rules the claimant may in the absence of evidence to the contrary, treats the goods as lost. 

Evidentiary Effect of the Multimodal Transport Documents

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.

Size of Container Yard

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 and access become very difficult. Average staking height should therefore, be taken at 2.5. At this, the reqirement of ground slot will be
    351/2.5=140 .

Systems of Customs Security Arrangements

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 financial guarantee, if required, should be provided to the satisfaction of Customs authorities under regulations in force in the transit country and under International Conventions.

-----  The guarantee should cover import/export duties and taxes chargeable, and in countries where they are covered by guarantees, any penalties due, and

-----  The system of guarantees should be simple, efficient and inexpensive. 

Trade Logistics

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 the size of export orders.

-----  Harnessing professionals knowledge and expertise to exercising model options, cost and time trade offs.

-----  Proactive rather than reactive approach to international trade logistics.

Logistics plays a significant  role in the developed economies with its importance growing pari pasu with the increase in the share of services as compared to manufacturing .

Period of Responsibility of Carrier

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

In this article reference to the carrier or to the consignee means in addition to the carrier or consignee the servants or agents respectively of the carrier or the consignee.

Forecasts for Containerisable and Breakbulk Traffic

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 imports. The export would be divided into agricultural and industrial products, each group being further broken down into main commodities.

Similarly , imports can also be divided according to their economic properties .
Such as :-

-----  Consumer goods.

-----  Intermediate products.

-----  Capital goods.

However as already mentioned, trend extrapolation used for long term forecasting can be extremely misleading. Therefore after acquiring a general idea of growth trends, economic parameters may be introduced to formulate more realistic relationship would be quite different for imports and exports.


 

Lay Time in Shipping

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 an example 1500 tons/200 tons per day.

Demurrage is the compensation to which the owner is entitled for detention of a vessel beyond the agreed lay time.

The voyage charter party usually provides for payment of dispatch money to the charterer for the time that is thus saved. In other words, dispatch money is opposite to demurrage and is the compensation payable to the charterer for completing loading and discharging faster than stipulated under the charter party.