Possible indefinite strike at Mumbai Nhava Sheva Port

• Update 24/05/2019: Strike call has been postponed after meetings between labour unions and port management. More information will be provided as it becomes available.

Labour Union of Jawaharlal Nehru Port Trust (JNPT), also known as Nhava Sheva, has issued a notice warning of an indefinite strike starting May 24 against the new reduced manning structure introduced by the management.

The possible strike is most likely to affect container movement, cause congestions at the port and have a risk of recovery due to the backlog. Additionally, e-way bills generated for import and export cargo from and to the ports might become invalid.

As the discussion between the authorities at JNPT and the union has remained inconclusive, the threat of the strike looms large. A meeting between workers and management will be held on May 23 aiming to resolve the matter.

DACHSER will keep you posted if there is any update. If you have questions about your shipments, feel free to call your DACHSER representative for a discussion.

India Sea Cargo Manifest and Transshipment (SCMT) Regulations

The Central Board of Indirect Taxes and Customs in India has advised that the implementation of the India SCMT regulations will be effective from August 1, 2019. It is now compulsory for all shipping lines, importers and exporters to adhere to the defined timelines for manifest filing of all the cargo on a vessel to and from an Indian port.

The rule is applicable for all cargo transshipping, discharging and moving via any Indian port.

Departure Manifest:  Export manifest is now required to be submitted to Indian customs prior to the departure of the vessel from any Port of Loading in India.

Arrival Manifest:   Import Manifest is now required to be submitted to India customs prior to the departure of the vessel from the last foreign port of call.

IMO 2020 and its impact on sea freight transportation

The International Maritime Organization (IMO) is taking initiatives to promote sustainability and reduce harmful sulphur gases emissions. While the new regulation to reduced maximum sulphur content (currently 3.5%) to 0.5% will be fully enforced on January 1, 2020, it is expected that the adjustment on bunker surcharge will come into effect already at the last quarter of 2019.

• Impact on shippers

With the new regulations to be fully enforced on January 1, 2020, carriers are getting prepared during the course of the year with some options available:

• Switch to low-sulphur fuel
• Use Exhaust Gas Cleaning Systems which commonly known as a “scrubber” to clean up the sulphur oxide emitted from the vessel’s engine.
• Change the fleet to Liquefied Natural Gas Ships that are powered by Liquefied Natural Gas (LNG). LNG is considered as a cleaner fuel with less emission of greenhouse gases including sulphur oxide.

To ensure a smooth transition, carriers have to implement the above changes before January 1, 2020. Due to the investment in clean energy and cleaning systems, there will be an adjustment to the bunker surcharge formula which is expected to be effective from the last quarter of 2019.

• What is IMO 2020?

IMO is proactively taking steps to reduce marine pollution and minimize the vessels’ impact on global warming. Currently, most of the cargo ships use heavy fuel oil which is derived from crude oil and contains sulphur oxide. The gases can cause acid rain and trigger respiratory diseases. Therefore, the tolerant of sulphur oxide emissions has been tightened progressively throughout the past decade.

Also known as “IMO 2020 fuel sulphur regulation”, IMO 2020 is an initiative from the IMO which aims to reduce sulphur oxide emissions from ships.

By the deadline of January 1, 2020, all carriers will have to comply with the new regulation, which imposes a 0.5% global sulphur cap on fuel content and replaces the current limit of 3.5%.

If you have any questions regarding this topic, please feel free to reach out to your local DACHSER representative.

DACHSER Supply Chain Forum in South of India

More than 60 customers from DACHSER Chennai and other parts of Southern India followed the invitation to join an interactive session at the DACHSER Supply Chain Forum Chennai. The event built an excellent platform for attendants to exchange information and industry trends.

Incoterms 2020

The International Chamber of Commerce (ICC) will soon release the new Incoterms 2020, providing certainty and clarity to businesses trading across borders. The new Incoterms will be effective as of January 1st, 2020.

Every 10 years, the International Chamber of Commerce evaluates and revises the International Commercial Terms, better known as Incoterms, as a means of creating greater uniformity and effectiveness across the shipping industry. The latest version, Incoterms 2010, will stay in effect until January 2020.

What does "Incoterms" stand for?

It is an acronym standing for international commercial terms. Incoterms is a trademark of the International Chamber of Commerce, registered in several countries.

The Incoterms rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”), EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world. These terms hold universal meaning for buyers and sellers around the world.

The main Incoterms changes that are being considered are:

• The removal of FAS (Free Alongside Ship) as it is being used infrequently;
• Separating FCA (Free Carrier) into two separate Incoterms: one for road delivery and one for maritime delivery;  
• The committee is also considering bringing back the terms FOB (Free on Board) and CIF (Cost, Insurance, Freight), instead of the FCA and CIP (Cost and Insurance Paid to) used for non-container shipments;
• There is also a debate about the creation of a new Incoterms called CNI (Cost and Insurance) to bridge the gap between FCA and CFR/CIF (Cost and Freight/Cost, Insurance, Freight). Currently, FCA includes the cost of international insurance on account of the seller-exporter, while CFR/CIF does not include the cost of freight;
• Lastly, to alleviate questions surrounding the party responsible for paying Customs fees, the ICC will evaluate the creation of 2 Incoterms to replace DDP (Delivered Duty Paid).

Other issues and updates being evaluated during this round include:

• Transportation security
• Regulations on transportation insurance
• Relationship between the Incoterms and the International Sale Contract

We will provide another update once the official Incoterms 2020 rules have been announced by the ICC. Please contact us if you have any questions.

Trucker’s Strike at Chennai Ports Continues

Trade operation at the Chennai ports has come to stand still since September 16, 2019  as the Trailer Owner’s Association (TOA) in Chennai went on strike demanding the revision and increase in hire charges.
The strike has affect container truck movement, caused congestion at the ports and have a risk of recovery due to the backlog.
As the talks between the association and the Container freight station remain inconclusive, the strike is set to continue for the fifth day (as of September 20) and the threat continues to loom large.
DACHSER will keep you posted if there is any update. If you have questions about your shipments, feel free to call your DACHSER representative for a discussion.

Huned Gandhi shares his recipe for growth on the Indian Subcontinent

Huned Gandhi became DACHSER’s Managing Director Air & Sea Logistics Indian Subcontinent last year. Looking after the newly established cluster, the industry veteran says sustainable business growth, excellent career development, and enhanced corporate social responsibility will be major components of his leadership approach.

Shipping buses from Indonesia to Bangladesh

Recently, DACHSER Bangladesh shipped four buses, each weighing 13.5 tonnes, using an efficient Ro/Ro (Roll on / Roll off) mode of transportation. This solution was not only cost effective but also ensured that the buses were transported safely from Indonesia and arrived on time at their destination in Bangladesh. 

The will to get ahead

If Murat Kayki and his colleague Swapnali Kurale planned to meet in person, that would take time. A lot of time. More than seven hours in the air separate Nîmes in the south of France, where Kayki lives and works, from the Indian metropolis of Mumbai. They may come from different continents and different cultures, yet the two DACHSER employees have a lot in common. Both of them live and work in the city where they were born. It’s 38 years since Kayki came into the world in Nîmes as the son of Turkish immigrants. Today, he is head of DACHSER’s Nîmes and Avignon offices, and, like Kurale in Mumbai, has had quite a remarkable career.

DACHSER India at Auto SCM Summit in Pune

Organized by Indian Transport and Logistics News (ITLN), the third edition of the Auto SCM Summit was themed around “The changing landscape of Indian Auto industry and the role of logistics and supply chain”. The event was supported by DACHSER India as diamond sponsor.