2. What does not kill you, will only make
What is
you stronger. - Neitze
Multimodal Transport
Consolidation
• Examples
• Observations
CHA As MTO - Trends
Strategic Overview
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2010 SHANTANU 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
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2010 SHANTANU BHADKAMKAR - ATC 3
4. Right Place
Right Tariff Right Documentation
Smooth Online
Movement Information
Right Time Good Condition
Right Price
Shantanu Bhadkamkar ATC 4
5. Price of service
Cost of co-ordination
Consequential cost of time
Risk of delay and bad service
Loss of business
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6. 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’
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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.
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2010 SHANTANU BHADKAMKAR - ATC 7
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
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2010 SHANTANU BHADKAMKAR - ATC 10
12. Multiple Shipper
& Multiple UK Port Deconsol DDU/CFS
Consignee
• JNP CFS • Felixstowe • Forwarders • London
• FCL - LCL • Thamesport Warehouse • Liverpool
• Big Terminal • Manchester
Trucker • Glasgow
• Proximity To
Consignee
Competitive Door To Door Cost
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2010 SHANTANU BHADKAMKAR - ATC 12
14. Cleveland New York Dubai JNP
• LCL - • $ 120 • DO • 45
LCL Fees Rs DAYS
15,000
Cleveland Long Beach Singapore JNP
• LCL - • $ 130 • DO Fees • 34 DAYS
LCL • Rs 10,000
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2010 SHANTANU BHADKAMKAR - ATC 14
15. Cleveland New York JNP
• LCL - • $ 110 • 36 DAYS
LCL • High • DO Fees
Trucking Rs 7,000
Cleveland Single DO JNP
• FCL – • $ 125 • 30 DAY
LCL • Extended • DO Fees
• 20’ – 18 Cut Off Rs 5500
CUM
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2010 SHANTANU BHADKAMKAR - ATC 15
16. Truck Pick up Charleston JNP
• USEC • 40’ FCL – • DO Fees
• Mid West LCL 3500
• South East • Cost $ 45 / • Usual Liner
• Pick Up CUM LCL
costs Charges
comparable, • 32 Days
though
Higher
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2010 SHANTANU BHADKAMKAR - ATC 16
19. 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
20. More than one mode of transport
Sea * Air * Road * Rail
Single
Document
Service Provider UNCTAD/ICC Rules for Multimodal
Price Transport Documents
Seamless 2.1. Multimodal transport contract
(multimodal transport contract) means a single
Neutral contract for the carriage of goods by at least two
different modes of transport.
Optimiser 2.2. Multimodal transport operator (MTO)
means any person who concludes a multimodal
Tracking transport contract and assumes responsibility for
Value Added the performance thereof as a carrier.
21. Domestic Transportation
Both the countries
Regulatory Authorities
Both the countries & transit if any
International Transportation
Uni - Modal / Multimodal
Other Intermediaries
Ports
Banks
Insurance
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
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2010 SHANTANU BHADKAMKAR - ATC 22
23. 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.
24. 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
25. 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
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2010 SHANTANU BHADKAMKAR - ATC 25
29. SHIPPER
CONSIGNEE
Overseas
CARRIER
Forwarder INTERNATIONAL
DOMESTIC
FORWARDER
DATA PORTS
CARRIER WAREHOUSES
REGULATORY
CUSTOMS
BODIES
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2010 SHANTANU BHADKAMKAR - ATC 29
30. OLD NEW
New Terms
Increasing CIF CIP
Forwarders C&F FCA
Role FOB DDP
FAS DDU
Under Hook Ex-Works
Routing - Consignment Basis - FCR - FWR
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2010 SHANTANU BHADKAMKAR - ATC 30
31. 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
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2010 SHANTANU BHADKAMKAR - ATC 31
32. 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
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2010 SHANTANU BHADKAMKAR - ATC 32
33. Pricing,
Costing, MIS, Response
Forecasting, Management
Quicker Lower Feed Back
Delivery Cost
Concept Ability To
Selling & Handle New
Enhanced Role Unexpected
Of Marketing Situations
Superior
Range
Service
Global
Dealing With Alliances &
Uncertainty Strategic
Networking
Flexibility Visibility
Better
Strategic
Management
Global Vision
Of Finances
34. Infrastructure Customers
• Port • Buying Agents
• CFS • Manufacturers
• Warehouses • Merchants
• IT
Carriers Organisors
• Airlines • CHA
• Shipping Lines • IATA
• Rail • MTO
• Truckers • NVOCC
• Courier • Liner Agents
3PL
• Post
CONVERGENCE IN LOGISTICS
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2010 SHANTANU BHADKAMKAR - ATC 34
35. EDI RMS
DIS
GLOBALISATION
INTERMEDIATION
LIBERALISATION DELICENSING
SIMPLIFICATION
CHA COMPETITION
CHALLENGES
WHO KNOW WHAT NEXT?
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2010 SHANTANU BHADKAMKAR - ATC 35