multimodal consolidation

Wednesday, May 3, 2023 SHANTANU BHADKAMKAR - ATC 1

SHANTANU BHADKAMKAR

A.T.C. (Clearing & Shipping) P.L.

Vice ChairmanVice ChairmanFederation Of Freight Forwarders’ Associations In IndiaFederation Of Freight Forwarders’ Associations In India

FORWARDERS’ FUTURE

What isMultimodal TransportConsolidation

• Examples• Observations

CHA As MTO - TrendsStrategic Overview


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Comprehensive OverviewComprehensive Overview

✘ Negative Freight✕High Destination Charges✕High Incentives – Rebates … ✕Exploit or Get Exploited

✘ Power Of Pre-Dated BL✘ Oligopoly, Monopoly✘ Simplistic Sub-Contracting


Shantanu Bhadkamkar ATC 4

Right Place

Right Documentation

Good Condition

Right Price

Right Time

Right Tariff

SmoothMovement

OnlineInformation

Price of service Cost of co-ordination Consequential cost of time Risk of delay and bad service Loss of business


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’


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.


The Freight Forwarder, who consolidates shipments, pays lower price for carriageThe 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



Competitive Door To Door Cost


LCL - FCL

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 transportSea * 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


30% Of Total Container Traffic Handled By Major Ports Moves Between Gateway Ports And Inland Centres

More Reliance On Smaller / Feeder VesselsHigher Cost Of Inland Container Movement, In Comparison To ASEAN

Overview On Indian Container ShippingOverview On Indian Container Shipping

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


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


Expert On Customs Law

Architect Of Transport

Information Management


EFFICIENCY - COST SAVING – EFFECTIVITY - EFFICIENCY - COST SAVING – EFFECTIVITY - SOLUTIONSSOLUTIONS

TARRIFS RULES & PROCEDURES LAWS & REGULATIONS RATES ROUTES STORAGE INSURANCE


TRACKINGTRACKINGSAFETYSAFETYSECURITYSECURITYENVIRONMENTENVIRONMENT

OverseasForwarder

DATACARRIER

CUSTOMS REGULATORY

BODIES

PORTSWAREHOUSES

CARRIERINTERNATIONAL

DOMESTIC

SHIPPERCONSIGNEE

FORWARDER


OLD CIF C&F FOB FAS Under Hook

NEW CIP FCA DDP DDU Ex-Works


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


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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


Shantanu BhadkamkarShantanu Bhadkamkar

EMERGING TRADE & INDUSTRY ISSUESEMERGING TRADE & INDUSTRY ISSUES


CONVERGENCE IN LOGISTICS


WHO KNOW WHAT NEXT?

Shantanu Bhadkamkar ATCShantanu Bhadkamkar ATC 3737

FORWARDERS’ FUTURE

multimodal consolidation

Business