PAGES 56 inclusive of cover
VOL XI ISSUE VII JUNE 2020 | `20
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Moving
cargo in times of CORONA
10
Indian Pharma Supply
Chain proves its mettle during COVID chaos
34
Dynamic Racking System:
Reinventing warehouse storage optimisation
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contents
Volume XI Issue VII
june 2020
Publisher & Editor-in-Chief Smiti Suri Special Correspondent / Sub-editor Upamanyu Borah Principal Correspondent Ritika Arora Bhola Correspondent Saurabh Sharma Event Coordinator Pallavi Jain Director Ajeet Kumar Marketing Manager Rahul Arora Gagan Duggal
20 COVER STORY
Moving cargo in times of corona interview
10
Niranjan Navaratnarajah, Cargo Industry Director - Asia Pacific, Unisys....... 42
Marketing Executive Akash Gupta Rahul Jain Accounts & Administration Lavish Thakur Designer & Visualiser Ashok Saxena
Praveen Dadala, Managing Director, AWOT Global
Logistics (India).............................................. 44
shipper speaks
Benzon John, Head – SCM, Orient Electric......... 46
guest column
Glyn Hughes, Global Head of Cargo, International Air Transport Association (IATA)....... 45
Regulars
36
Frontline............................ 6 Hub........................................ 8
focus
Technology....................... 40
Indian Pharma Supply Chain proves its mettle during COVID chaos................................ 10
News............................. 48-51
special feature Dynamic Racking System: Reinventing warehouse storage optimisation..............................34
4 | CargoConnect JUNE 2020
spotlight.......................... 52 appointments.................. 53 report................................ 54
All materials printed in this publication is the sole property of CargoConnect. The printed matter contained in the magazine is based on research and analysis and information provided by the spokespersons featured. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily reflect the same. CargoConnect is owned by Smiti Suri,
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frontline
As debt and bad loan levels increase, the banking sector might face challenges. Therefore, even as authorities across the country announce several relaxations in the lockdown phase 4.0, it is highly likely that India might be close to registering a recession in the third quarter of the financial year. Arun Singh, Chief Economist, Dun & Bradstreet India
An analysis of over 270 underconstruction National Highways indicates that the top 10 states account for 80 per cent of the projects and in four of these states project execution is at risk.
Scarcity of trucks has led to freight rates shooting up in the range of 15 - 20 per cent currently, and is expected to increase to 25 - 50 per cent in the coming weeks. Container Train Operators (CTOs) moved 35 per cent less cargo this April vis-à-vis April 2019 — both in terms of loading and offloading. Ground rent waivers impact the financial condition of Container Freight Stations (CFSs) and Inland Container Depots (ICDs) because it contributes as much as 40 per cent to their revenue. 241 out of 373 Special Economic Zones (SEZs) in India are operational and provide employment to around 20 lakh people. Until May 16, India exported 2,500 million tones fruits and 1,200 million tonnes vegetables to the Middle East countries due to the crisis arising out of the pandemic.
6 | CargoConnect JUNE 2020
Global firms are now looking at India to relocate their supply chain due to availability of skilled labour, infrastructure and market. The Centre needs to make policy changes to meet the current business situation; otherwise we will miss the opportunity to countries like Vietnam and Mexico. Sunil Rallan, Founder and President, Tamilnadu Association of SEZ Infrastructure Developers (TASID)
The year 2020, anyway, from a business standpoint, is almost like a washout. Fortunately, we have done all the right things, except that our deal with Blackstone has not gone through, in the sense there were still two conditions precedent which we have to clear. Once that is done, then we are debt-free in spite of the acquisition of Gati. Shashi Kiran Shetty, Chairman, Allcargo Logistics
As a provider of essential services, we are ensuring the continuous flow of goods across the country. We have taken every possible step to maintain the best possible level of operations. Our Cochin terminal has continued to operate throughout the lockdown period keeping the productivity in line with global standards of 30 plus moves per hour. Praveen Joseph, CEO, DP World, Cochin
The credit profile of port sector companies is expected to witness pressure in the near to medium term, due to the subsequent lockdown imposed. Further, entities that have recently commenced operations or concluded debt funded capacity expansions, or either have concentrated cargo profile like containers could come under severe pressure. K Ravichandran, Senior VP and Group Head, ICRA Ratings
hub
India’s trade with Bangladesh back on track while continuing to feel the virus heat
T
he trade between India and Bangladesh through Integrated Check Post (ICP) at Petrapole, 80 km away from Kolkata recommenced on April 30 after nearly a month’s gap. Media reports revealed that on the Indian side, 231 trucks were stranded at the border point of Petrapole while another 572 were parked at a place near the check post managed by the local municipal authority. Around 1,300 registered for loading-unloading operations but were waiting at different nonregistered/private parking lots nearby. Initially, while responding to the COVID-19 pandemic, the Indian government took measures to cancel almost all but a small set of visas, largely sealing the country’s borders and restricting all types of passenger and vehicle movement for foreigners (except few border points) through all Immigration Land Check Posts at Indo-Bangladesh, IndoNepal, Indo-Bhutan and Indo-Myanmar border with effect from March 15, 2020. As a consequence, trade between India and Bangladesh came to a standstill at the busiest border point at Petrapole. With trade coming to a halt in the third week of March, more than 2,000 trucks carrying essential and perishable items for export had remained stranded near the Petrapole land port. 8 | CargoConnect JUNE 2020
On a normal day, 500-550 trucks cross the border from the Indian side and about 100-150 come from Bangladesh. Trade via train movement, however, resumed along the PetrapoleBenapole route on May 09, with around 1,000 tonnes of onions exported from India through Gede-Darshana border point at Nadia. The pressure from exporters was mounting to resume operations at the ICP. Considering the prevailing situation of the pandemic and with a view to resume cross border trade at Petrapole, it has been decided to allow transshipment of EXIM cargo at zero point. As per the decision, the imported goods would be unloaded from Indian trucks at the zero point of the border and stocked on Bangladeshi trucks and vice-versa to avoid spreading of the virus through maintaining maximum social distancing. Normally, Indian trucks are allowed to enter the Bangladeshi side up to the Bangladesh Land Port Authority terminal. During the ongoing phase of lockdown, Petrapole had witnessed a 1020% drop in cargo loading. Export cargo arrivals had also slowed down as an impact of the restrictions imposed by the MHA at the outbreak of the pandemic. Later the export and import through this busy gateway stopped for an indefinite period.
Cross-border trade had been suspended for over a month, supposedly due to reservations expressed by the West Bengal government against the backdrop of the pandemic since a large number of clearing agents had been reluctant to undertake the job for fear of contracting the virus. Indian truck drivers were also reluctant to enter Bangladesh for the rules set by the West Bengal government that required them to stay in quarantine for 14 days after coming back.
Wagah of the East
Bangladesh was India’s largest trading partner in South Asia as per total trade in 2018-19. Imports to India occurred majorly through land, followed by sea and air routes. This shift is largely due to an increase in India’s exports to Bangladesh that increased by 26.31% in 2017-18 and 6.96% in 2018-19, while imports to India declined by 2.29% in 2017-18, then increased extensively by 52.12% in 2018-19. India’s exports to Bangladesh in 2018-19 largely consisted of cereals, broiler chickens, cotton, vehicles, mineral fuels, nuclear reactors, machinery, plastics, and iron and steel. Total exports from India to Bangladesh were worth US$ 9.210.06 million in 2018-19 – an increase of 6.92% from the previous year yet representing only 2.79% of India’s total exports.
India’s Trade with Bangladesh (values in US$ million) Year
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Imports
484.34
621.37
725.15
701.68
685.65
1043.03
Exports
6166.48
6451.47
6034.94
6820.11
8614.35
9214.22
Total Trade
6651.31
7027.84
6726.04
6726.04
9299.99
10257.25
Trade Balance
5682.63
5830.10
5830.10
6118.42
7928.70
8171.19
Source: Directorate General of Commercial Intelligence and Statistics (DGCI&S)
Fact Check
According to Ministry of Commerce and Trade data (2019), India’s imports in the same year consisted primarily of textiles, engineering products and mineral products. Total imports by India from Bangladesh were worth US$ 1,044.80 million – an increase by 52.38% from the year before and representing 0.203% of India’s total imports. In this export-import circumstance, ICP Petrapole is the largest gateway to Bangladesh contributing more than 35% of total exports and above 60% of overall imports. Indeed, the trade pattern between India and Bangladesh through land borders differs across states in terms of quantity and variety of product. While only few trade points across the international border are handling the bulk of trade, many of the trade points are yet to be operational. Nonetheless, the fact remains that above 46% of India’s exports to Bangladesh are routed by land through trucks, while 1% through railways and remaining 53% through sea or air routes. According to the Central Board of Indirect Taxes and Customs (CBIC), the largest import duty payers- Marks & Spencer and VIP Industries are doing business through this border ICP since 2017-18. Other major companies using Petrapole to import goods include Reliance Retail, Raymond Apparel, Aditya Birla Fashion and Retail,
Bangladesh was India’s largest trading partner in South Asia as per total trade in 2018-19. ICP Petrapole is the largest gateway to Bangladesh contributing more than 35% of total exports and above 60% of overall imports. Total exports from India to Bangladesh were worth US$ 9.210.06 million in 2018-19 – an increase of 6.92% from the previous year yet representing only 2.79% of India’s total exports. India’s exports to Bangladesh in 2018-19 largely consisted of cereals, broiler chickens, cotton, vehicles, mineral fuels, nuclear reactors, machinery, plastics, and iron and steel. and Puma Sports, while among the exporters, companies like Arvind, VE Commercial Vehicles- the manufacturer of Volvo and Eicher trucks, and automobile companies such as Ashok Leyland, Hero Motorcorp and Mahindra and Mahindra use this ICP to export goods. Tata Motors appeared as the biggest import duty payer in the last financial year.
Uncertainty prevails over opening
The country’s Ministry of Home Affairs (MHA) issued an order under the directions of the National Disaster Management Authority (NDMA) on May 01 stating that “No State/Union Territories shall stop the movement of cargo for cross land-border under Treaties with neighbouring countries” (Clause 12). The West Bengal govern-
ment is unhappy with this decision over not being consulted before resuming trade through Indo-Bangla border at Petrapole. According to a list released by the West Bengal government on 27 April, four districts, namely Howrah, North 24 Parganas, East Medinipur and Kolkata have been declared as red zones in the wake of the COVID-19 outbreak. Incidentally, the zone wise district list prepared by the central government has also identified 24 Parganas as red zones. The Chief Secretary of West Bengal, Rajiva Sinha expressed that the state would not like any problem to arise in this situation as India shares a good relationship with Dhaka. The challenge remains how to release restrictions in these red zones at this time when the death toll is increasing day by day. The state government has been apprehensive towards maintaining social distancing along with other restrictions of movements mentioned in the MHA order issued on May 01. It has been stated in the MHA order that all the mentioned restrictions on movements will remain operative for a period of two weeks with effect from May 04. Against this backdrop, a large number of cleaning workers have been reluctant to undertake their job in fear of the virus. The Cleaning Agent Staff Welfare Association (CASWA) at Petrapole has welcomed the initiative to re-open border trade as the members of the association put forth the request to do so. It seems very difficult to maintain social distancing while transferring goods from one truck to another. Under the circumstances, it has become a real challenge to keep a balance between maintaining social distancing and other suggested restrictions on movements of people and cargo and continuing border trade at Petrapole efficiently at a good pace. CargoConnect JUNE 2020 | 9
focus
Indian Pharma Supply Chain Proves its Mettle during COVID Chaos
The outbreak of the novel coronavirus (COVID-19) worldwide has distressed economies in such a way that even the powerful states like US and China are once again assessing and evaluating their superlative infrastructure set-up and supply chains. As countries and companies alike continue to grapple with the unprecedented challenges thrown up by the global pandemic, a specific area of concern has been the uncertainty surrounding its massive impact on the global as well as Indian pharma supply chains. Considering the outstanding performance of the sector in this difficult hour, experts feel, India is ready to become a global pharma hub by evaluating new supply chain models. Ritika Arora Bhola
10 | CargoConnect JUNE 2020
focus
he Indian pharmaceutical industry has witnessed tremendous growth in the last few years. India is known as the largest provider of generic drugs globally. The sector reportedly supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in the UK. India undeniably enjoys an important position in the global pharmaceutical sector. If we go by reports, the Indian pharmaceutical sector is expected to grow to US$ 100 billion and the medical device market
to US$ 25 billion by 2025. Pharmaceutical exports from India stood at US$ 19.14 billion in FY19 and US$ 13.69 billion in FY20 (up to January 2020). Therefore, despite few noticeable challenges, Indian pharma industry in this difficult hour, has shown the world its capability and competence to not only subsist but also assist countries worldwide by supplying much-needed pharmaceutical products to cure COVID-19 patients, that too when international as well as domestic flights were grounded by the respective government. Indian pharmaceutical industry has emerged as a winner as it not only produced various drugs that helped cure virus-affected patients, but also exported drugs like Hydroxychloroquine (HCQ) to nations including the US, to show solidarity during the crisis. The Indian government relaxed the ban on exports of both Paracetamol and HCQ, used in COVID-19 therapies, and placed them in the licensed category. As per reports, India supplied HCQ and other medicines to over 30 countries including Nepal, Bhutan and Bangladesh, etc. as they completely depend on India for pharmaceuticals. India, which is one of the largest producers of the drug that is used to treat malaria and knee pains, exports around $50 million of the medicine annually.
India: next global hub for Pharma?
The Indian pharmaceutical sector is expected to grow to US$ 100 billion and the medical device market to US$ 25 billion by 2025.
Despite various challenges like inadequate infrastructure, high cost, lack of skilled manpower, an inefficient supply c ha i n, I nd ia su st a i ned a smooth and excellent supply chain to transport pharma worldwide. Experts feel the COVID-19 outbreak has also presented Indian pharmaceutical companies an opportunity to become a preferred alternate hub for manufacturing a variety of drugs. Acknowledging the same, Prabir Das, Head Packaging Tech Services, OSD (India), Mylan Laboratories says, “We do have good resources and capability to meet the future demand. We are flexible and always carry a positive attitude to adapt to adverse conditions. Unity in diversity and excel in adversity is our principle.� CargoConnect JUNE 2020 | 11
focus
The biggest challenge is selfreliance. We are still dependent on others for some of the inputs/ ingredients. Despite our strong academic knowledge, research and development capabilities, skilled manpower, operational efficiencies and good supply chain network, we are still dependent on others for some or the other reason. Dasaradha Duvvuru Reddy General Manager, Warehouse, Aurobindo Pharma
Globally, supply chains are set for a major overhaul as the COVID-19 crisis has exposed the vulnerability of countries and companies that rely heavily on a limited number of trading partners.
12 | CargoConnect JUNE 2020
Dasaradha Duvvuru Reddy, General Manager, Warehouse at Aurobindo Pharma states, “No doubt India is proud to say its position is better than other countries, especially pharmaceutical supply chain to break COVID-19 chain by its effective and strong supply chain links.” Stressing on the need for adequate infrastructure, TV Madhusudan, General Manager – Distribution, RPG Life Sciences asserts, “A lot of infrastructure development needs to be done by the government. It will take time to catch up with other developing countries especially China. We need more budget allocation for modernisation of freight corridors, ports, airport cargo expansion, surface transport hub and waterways. A long way to go, I believe that India can become a significant player in the global supply chain.”
Increasing dependency on India
The pharma business is rapidly becoming more global. Emerging markets as well as developed nations are relying on India for drugs in this COVID-19 crisis. Even before COVID-19, India exported a large number of drugs across the world. Focussing on how during this difficult hour other countries are majorly dependent on India for pharma products, Das explains, “Over the years, India has proved its prowess in this area, espe-
cially in generic drugs. Now it is time to consolidate all the ends together for stronger hold in global business. This may be the blessing in disguise for the pharmaceutical industry.” While Reddy maintains, “Indian Pharma Business is well-matured especially finished dosage form of products at the global level. We will continue to manufacture drugs/vaccines for the patients without interruption despite coronavirus worries.” Acknowledging the above, veteran logistics service provider, also the CoFounder & Joint Managing Director of Zeus Air Services, Bharat Thakkar says, “There’s no doubt in this. The sector accounted for about 6 per cent in the country’s total exports of USD 303 billion in 2017-18. It is one of the top five sectors in the export segment. Generic drugs form the largest segment of the Indian pharmaceutical sector, with 75 per cent market share (in terms of revenues). India supplies 20 per cent of global generic medicines in terms of volume, making the country the largest provider of generic medicines globally. Over 55 per cent of India’s exports go to highly regulated markets. Higher growth in outbound shipments helps create employment opportunities, earn foreign exchange and boost economic activities. India’s pharmaceutical exports are expected to surpass $20 billion in 2020.”
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focus
Product recalls and safety concerns are not only propelling pharma manufacturing onto the public stage, but they’re also bringing the pharma supply chain that supports biologicsbased manufacturing into sharp focus. This spotlight on quality and compliance is also due to changing biopharma trends that affect cold chain logistics. Agreeing with Thakkar, Madhusudan also feels it is the right time for India to grab the opportunity to become the largest exporter of formulations and active pharmaceutical ingredients (APIs). “Many nations are seeking help from India for medicines to combat the current Pandemic viral attack. Dependency on India is very high,” Madhusudan expresses.
Need for new Pharma Supply Chain models
Globally, supply chains are set for a major overhaul as the COVID-19 crisis has exposed the vulnerability of countries and companies that rely heavily on a limited number of trading partners. Many multi-national companies (MNCs) have already started re-evaluating their supply chains and are in the process of shuffling their supply chains to reduce concentration in a handful of countries. The COVID-19 crisis has also highlighted the importance of having a risk management framework in place that focuses on the evaluation of potential issues arising from the loss of a supply chain partner or location. Having alternate supply arrangements, to the extent possible from a quality perspective, reduces potential disruption while ensuring adequate stockpiles provides a buffer against temporary turbulence. For pharma companies, to meet the 14 | CargoConnect JUNE 2020
ever-increasing industry demands and managing complex supply chains of their business segments, they need efficient and effective supply chain models that support the strategic priorities— agility, service, or cost-effectiveness— of those different segments. Observing the above, Das says, “Currently, our supply chain models are quite strong and already demonstrating agility and effectiveness. We are ready to compete with other players. Whatever fine-tuning is required concerning speed to market, that needs to be worked upon based on the situation. Crisis often helps us to find the improvement areas for quick adaptation. Strong and efficient connectivity with good infrastructure and robust governance can speed up the process.” However, Reddy with a different perspective shares that every pharmaceutical product entails many elements before it reaches patient/customer: the raw material, manufacturing, packaging, transportation, storage and distribution. Each one takes a journey using ocean, rail, air and road before being made available in-store or the doorsteps. “When we say that the end-toend global supply chain has been affected due to COVID-19, Indian Pharma supplies are also facing hurdles during this pandemic, but it is under control and no stock out situations have occurred,” says Reddy.
Bharat Thakkar
Co-Founder & Joint Managing Director, Zeus Air Services
The COVID-19 crisis has also highlighted the importance of having a risk management framework in place. Having alternate supply arrangements, to the extent possible from a quality perspective, reduces potential disruption while ensuring adequate stockpiles provides a buffer against temporary turbulence.
focus According to healthcare experts and biopharma industry leaders, the maximum risk in the coming decade would be – product safety. “Safety is the utmost priority of the entire value chain in healthcare,” maintains Thakkar, adding that, “Product recalls and safety concerns are not only propelling pharma manufacturing onto the public stage, but they’re also bringing the pharma supply chain that supports biologics-based manufacturing into sharp focus. This spotlight on quality and compliance is also due to changing biopharma trends that affect cold chain logistics.” Citing an example, Thakkar explains, “For instance, we are seeing a shift from transporting chemical based
through the entire supply chain. They believe, digitally enabled supply chain enhances safety and security. Thakkar elaborates, “This results in an increasingly connected logistics platform – yielding real-time, automated insights and analytics that identify patterns and gaps in safety and turn, efficiency, revenue and competitive advantage. While most of the data generated today are around performance, location and availability, data sets will increasingly be used to make pre-emptive decision-making around safety, spoilage and damage mitigation, as well as optimising delivery routes in real-time. Artificial intelligence (AI) in particular has the potential to transform the biopharma supply
A lot of infrastructure development needs to be done by the government. It will take time to catch up with other developing countries especially China. We need more budget allocation for modernisation of freight corridors, ports, airport cargo expansion, surface transport hub and waterways. A long way to go, I believe that India can become a significant player in the global supply chain. TV Madhusudan
General Manager – Distribution, RPG Life Sciences
APIs to biologics which is an increasingly complex, time-consuming and expensive drug creation process. Rising demand for cold chain freight shipping solutions from suppliers to manufacturing plants due to the complexity and high cost of new APIs is escalating production and innovation and reliability is perhaps best illustrated by the next generation of sensors.” According to experts, sensors are not new – pharma and healthcare have been using sensors for their shipment, monitor to track data on temperature, humidity or exposure since long and their impact on a digital supply chain br i ngs e nd-to - e nd t ra n spa re nc y 16 | CargoConnect JUNE 2020
chain by crunching huge amounts of real-time data and making intelligent recommendations that incorporate weather, traffic conditions and so on, empowering businesses to react sooner rather than later. There are already signs that near realtime assessments of the safety and quality of pharma ingredients are providing myriad benefits – particularly in matching information flow to physical flow.” As we all understand, the pharma supply chain is highly regulated with stringent quality norms. It remains to be highly complex and challenging in the future.
According to healthcare experts and biopharma industry leaders, the maximum risk in the coming decade would be – product safety. They believe, digitally enabled supply chain enhances safety and security.
The Highest Circulated/Read & Referred Logistics Industry Magazine
focus Nevertheless, Madhusudan feels cost control is going to be the major focus in the coming years, because of the business slow down due to COVID-19. New technology and digitalisation in the supply chain are going to be a game-changer.
Technology evolution
Over the years, India has proved its prowess in this area, especially in generic drugs. Now it is time to consolidate all the ends together for stronger hold in global business. This may be blessings in disguise for the Pharmaceutical industry. Prabir Das
Head - Packaging Tech Services, OSD (India), Mylan Laboratories
As per the understanding of tech experts and LSPs, Industry 4.0 provides pharma logistics the ability to ensure that the quality of the shipped products is preserved and that it complies with all prescribed standards, potentially leading to near-zero wastage and spoilage related losses.
18 | CargoConnect JUNE 2020
Talking about the sig nificance of evolving technology and how the 4.0 industrial revolution can help pharma supply chain professionals deliver products safely, securely and on-time, Vikash Mohan, CEO, DHL SmarTrucking, India explains, “Automation and digitalisation are keys to transforming Indian pharma supply chain. The automotive industry has been one of the best examples of automation implementation, and the pharma sector can also realise many benefits with its application and end-to-end digitalisation of operations. The large amount of data generated from subsequent processes will enhance decisionmaking and facilitate agility of response to market changes.” “Security is another area in which we can expect improvements through digital transformation,” says Mohan, adding that, “A connected supply chain facilitates the continuous generation
and transmission of data. It makes it possible to track a product throughout its journey to the end-user and monitor its condition and quality. Real-time information enables a faster and more agile response to emergencies, which is critical in the case of temperature-sensitive shipments.” Well, as per the understanding of tech experts and LSPs, Industry 4.0 provides pharma logistics the ability to ensure that the quality of the shipped products is preserved and that it complies with all prescribed standards, potentially leading to near-zero wastage and spoilage related losses, and providing peace of mind to pharma companies and the end-consumer. With evolving market conditions, pharma companies need to ensure a high-value, low-cost and top-quality supply chain to meet their business goals and earn the loyalty of their customers.
Pharma Supply Chain postCOVID-19 ready?
Countries worldwide will learn a lesson from this global pandemic of always being crisis ready, possessing an efficient alternate supply chain and tackling the impediments competently. On a positive note, Thakkar says, “Several countries are considering pol-
focus icies to reduce their healthcare spending and pharmaceuticals contribute a ‘major share.’ This would be an opportunity for India to strengthen its API business. If Indian pharma companies focus on that, certainly exports are going to rise as apart from a stable political climatic condition, India is known for its reliability. China is a major supplier of APIs globally, at the same time some Chinese formulation makers are showing increasing interest in importing APIs from India as they want to have APIs from Indian companies that have a very strong international accreditation, which is going to be a significant development for India.” While Madhusudan feels there will be a sudden increase in the demand for healthcare products and drugs postCOVID-19. “I foresee good business prospects for pharmaceuticals and healthcare products.” Reddy also assures, “We’ll start to see a decoupling from some long-term supply chain dependencies from the China-centric supply chain. As part of the redesign, we’ll be seeing a lot more appetite to bring the supply chain close to customer demand with on-shore or near-shore supply chains. Hope Government policies envisage this.”
Automation and digitalisation are keys to transforming the Indian pharma supply chain. The automotive industry has been one of the best examples of automation implementation, and the pharma sector can also realise many benefits with its application and end-to-end digitalisation of operations. Large amount of data generated from subsequent processes will enhance inform decision-making and facilitate agility of response to market changes. Vikash Mohan
CEO, DHL SmarTrucking, India
Tackling impediments
At present, the key challenges prevailing in Indian pharma logistics are fragmentation, shortage of cold chain infrastructure, poor cold chain regulation and unreliability of quality control. Organised players make up only 10 per cent of the Indian logistics industry and services are largely provided in silos with little integration, leading to poor stakeholder accountability. There is an increase in the transport of temperature-sensitive products such as biologics, which has increased demand for temperature-controlled logistics or cold chain logistics. According to reports, with a shortage of over 50,000 refrigerated (reefer) trucks in the industry, products are shipped in older or low-quality vehicles, leading to loss of quality which, especially in the pharma industry, further results in the product having to be discarded. India also lacks proper regulation for the cold chain segment, and elements like documentation and chain of custody are often poorly maintained
Digitalisation will allow suppliers to place their orders based on real-time data about the patient's need, instead of ordering in bulk based on historical purchase patterns. Logistics companies need to be prepared for this shift and have protocols and processes in place in advance.
due to multiple players being involved in different aspects of the supply chain. Besides, training for the handling of pharma and other temperature-sensitive products is inadequate, further adding to the burden of poor practices causing product wastage. Pharma companies often also encounter issues with quality control – they don’t have information on the journey or condition of their consignments, causing difficulties in planning their supply chain, and records can be inaccurate or tampered with leading to uncertainty about the integrity of their goods. Estimates suggest that 8.5 per cent of all pharma cold chain goods in India are discarded due to loss of temperature integrity. Digitalisation will allow suppliers to place their orders based on real-time data about the patient's need, instead of ordering in bulk based on historical purchase patterns. Logistics companies need to be prepared for this shift and have protocols and processes in place in advance, to leverage the changing landscape and protect their bottom lines. Das reiterates, “The biggest challenge is self-reliance. We are still dependent on others for some of the inputs/ingredients. Despite our strong academic knowledge, research and development capabilit ies, skilled manpower, operational efficiencies and good supply chain network, we are still dependent on others for various reasons.” Reddy stresses, “COVID-19 has affected all of the nodes connected through the China-centric SCM. We witnessed supply chain disruption beyond the expected. This unplanned shutdown caused a rapid chain reaction throughout the world. It appears that there will be a significant impact in the short term.” Madhusudan concludes, “The current crisis faced by the pharmaceutical industry is a shortage of manpower. Factories reported 20 to 30 per cent attendance of workers and staff. It is hampering the production of APIs and formulations. Also, shortage of basic raw material for formulations, excipients and packaging materials because of lockdown and restrictions of movement of men and materials and lastly, a complete breakdown of all modes of transportation not only in the country but also globally.” CargoConnect JUNE 2020 | 19
coverstory
Moving
cargo in times of CORONA 20 | CargoConnect JUNE 2020
The global coronavirus (COVID-19) pandemic has delivered a big blow to the supply chain and logistics industry in a very short span of time. Cargo movements around the world are suffering, especially so with service providers’ customer service, sales and pricing teams separated geographically and being forced to work remotely. Teams are siloed and over reliant on emails and phone calls leading to poorer customer satisfaction and lack of visibility and accountability to the management. This is making an already difficult situation worse, but still, cargoes keeps on moving. Upamanyu Borah
o keep operations going has not been easy during the pandemic. As we saw in China in January and February, goods stopped moving overseas during confinement. Truck drivers delivering merchandise to ports were forced to stop. Containers that did make it to port sat on loading docks in Shanghai, the world’s busiest container port in 2018, and only one of seven of the world’s busiest ports – all in China. India’s
largest container port, Jawaharlal Nehru Port Trust (JNPT), saw its cargo volumes fall by about 33.97% in April 2020 compared to the year before. Additionally, with airlines grounding most of their passenger aircraft fleets, the drastic reduction in air cargo is already causing supply chain havoc.
The invisible workforce
In normal times, transport and logistics workers represent the (largely invisible) lifeblood of our global economy, keeping supply chains moving around the globe, with 90% of goods being transported by sea. During this pandemic, transport and logistics workers are a critical part of the global response to manage the situation as the coronavirus spreads and country after country goes into lockdown.
CargoConnect JUNE 2020 | 21
Arun Pandit, Head of Sales (B2B), LoadShare Networks
We have been proactive in getting government permissions at each and every region to operate vehicles to serve essential goods. Many of our clients were finding it difficult to find the right process to get the permissions to operate from a manufacturer’s point of view. We assisted them to understand the correct process and the right channel to get the permissions.
Working alongside governments in their duties to protect citizens, global companies have a responsibility to step up like never before to work individually and collectively to protect workers throughout their supply chains. The invisible workforces of transport and logistics are every bit as essential to surviving this global crisis as their more frontline colleagues in supermarkets and hospitals. Many of the logistics services firms are setting in motion a mix of online and offline services designed to help carriers and independent truckers, as well as shippers, maintain operations while also minimising risks related to the virus. In this time of global crisis, it is more important than ever to keep supply chains open and to allow trade and cross-border transport to continue. Transit needs to be facilitated, too. Landlocked countries need access to food and medical supplies through neighbouring countries’ seaports and airports. To ensure that vital goods reach consumers and hospitals in destination countries, responsible agencies should coordinate and cooperate within and among countries so that indispensable goods reach the populations in coastal and landlocked countries alike.
Supply Chain challenges during COVID-19
non-essential items in red zones, as per a Ministry of Home Affairs (MHA) notification. With shipments from China, and now Europe, slowed due to the spread of the coronavirus pandemic, keeping warehouses in the country open and truckers employed has become a priority for B2B suppliers and buyers, logistics experts say. Commenting on the same, Arun Pandit, Head of Sales (B2B), LoadShare Networks says, “We have reinvented ourselves to become more effective and relevant in handling the current supply chain bottlenecks by quickly making a pivot to delivering essentials through intra city milk-run model utilising smaller trucks and intercity full truck loads (FTL) instead of our forte, i.e. part truck load (PTL) movements. We have completely shifted focus to food, beverages, pharma, and groceries.” “We have been proactive in getting government permissions at each and every region to operate vehicles to serve essential goods. Many of our clients were finding it difficult to find the right process to get the permissions to operate from a manufacturer’s point of view. We assisted them to understand the correct process and the right channel to get the permissions. Lot many The invisible workforces distributers and SMEs were also of transport and logistics struggling to do their secondary are every bit as essential movement to retailers due to lack of to surviving this global vehicles and labours. We helped crisis as their more them deliver the necessary materials frontline colleagues in to retailers which were eventually supermarkets and delivered to end customers, ensurhospitals. ing that there is no panic situation caused due to stock outs. The in
With COVID-19, the supply chain’s ‘symptoms’ are completely unforecast, leaving manufacturers and distributors either with excess inventory or un-meetable demand. Not only are demand forecasts completely unreliable, but there is added confusion as most companies switch to remote-working models. Instead of coming into the office to manage shipping, teams must connect over the internet to manage freight operations. Without a technological framework in place, many teams may be left struggling to stay afloat. This shake-up of standard shipping procedures has also resulted in disruptions in lanes and carrier availability. In an effort to provide some relief to companies shipping essential goods, the government has allowed the industry to resume full-fledged operations across green and orange zones starting May 04; however, those were restricted to sell
22 | CargoConnect JUNE 2020
TA Krishnan, CEO & Co-founder, Ecom Express
We have formed a COVID-19 crisis committee to quickly respond to the emergency situations to ensure employee health, safety and operations continuity. Meanwhile, our management team continues to monitor the situation, review and update operations in line with evolving advice from the Government authorities and World Health Organisation (WHO).
transit cargo is either safely delivered to our nearest warehouse or the cargo is being monitored on a daily basis by GPS tracking of the vehicles and by regularly capturing pictures of the physical stocks for the trucks which are stranded,” Pandit adds.
processing thereby empowering field workforce through mobility With shipments from solutions SRUTi (Scan, Record, UpChina, and now Europe, location Transmission Instrument) slowed due to the spread and SATHi (Service Accountability of the coronavirus Transmission Handheld instrupandemic, keeping ment). SRUTi is outfitted in the first warehouses in the mile operations, which involves the country open and Last-mile delivery pickup and movement of the shiptruckers employed has With the coronavirus causing flucments from a Customer’s Pickup become a priority for tuations in e-commerce orders, logispoint; and SATHi follows the lasttics services providers offering online mile delivery of the package to endB2B suppliers and customer. These mobility solutions buyers. have capabilities with field based validations and end-to-end visibility in the complete value chain. The last-mile of the transport and logistics ecosystem involves a high rate of ‘gig’ economy workers, ‘self-employed’ delivery drivers, and zero contract hours workers whose income, job security, and safety net in the case of falling ill are deeply precarious. These non-unionised, unrepresented workers are a crucial link in the complex global supply chain as online retail surges. What protections are being afforded to them as they work? What safety net is in place for those falling sick or losing their jobs? To this, Krishnan says, “We are taking various measures to mitigate the impact of the lockdown. This includes reworkservices are taking steps to keep orders moving through ing on our business plan and taking necessary steps towards warehouses and truckers on the road. resuming operation in more cities and towns for the delivery “In the wake of testing times like these, the onus is on loof essential goods. While doing so, we are ensuring security gistics players like us to keep the supply chain running for of customers’ orders and the safety of our staff. We have essential items,” says TA Krishnan, CEO & Co-founder, formed a COVID-19 crisis committee to quickly respond to Ecom Express. the emergency situations to ensure employee health, safety “Being a dedicated e-commerce focussed logistics serand operations continuity. Meanwhile, our management vices company, we take care of shipping needs of the industeam continues to monitor the situation, review and update try. Our operations are currently running in 30 towns which operations in line with evolving advice from the Government include Bengaluru, Mumbai, Kolkata, Lucknow, Gurgaon, authorities and World Health Organisation (WHO).” Chennai, Hyderabad, Ahmedabad, New Delhi, Noida, End-to-end supply chain management company, TVS Greater Noida, Ghaziabad, Faridabad, Patna, Pune, CoimSupply Chain Solutions who is operating essential services batore, Surat, Bhubaneswar, Allahabad, Agra, Kanpur, Ranfor its customers belonging to FMCG, telecom, banking & chi, Jaipur, Nagpur, Raipur, Dhanbad, Goa, Madurai and financial services (ATM), media, healthcare, and agri and Salem. We are gradually adding more cities in compliance other critical import/export and process industries, has with the state government and local authority’s directives.” ensured full protection is of its employees when running Ecom Express has digitised the pickup and delivery its operations.
CargoConnect JUNE 2020 | 23
R Shankar, CEO - India, TVS SCS
We are following all social distancing norms and requirements of personal safety, as we proactively reach out to our customers as well as others to be able to understand their specific requirements and support them in these critical times. Wherever required, we are in a position to import a large size through air freight for any urgent, critical requirements for our customers.
Last month, TVS SCS deployed over 1000 ‘Corona Waryet to reach local authorities in many districts. riors’ (employees and drivers engaged in the lockdown time) “The whole supply chain is picking up very, very slowly,” supporting the logistics activities. The execution team is says Vineet Agarwal, Managing Director, TCI, one of India’s largest logistics companies. “Things have improved a provided with ‘Covid Kavach’ - a personal protective equipment (PPE) kit besides fully trained little bit in the past few days and to maintain social distancing norms. movement of trucks has started, but “We are following all social diswe have to wait to see how things tancing norms and requirements of shape up soon. There could be local personal safety, as we proactively governments that may not open up.” reach out to our customers as well as T he movement of essent ial others to be able to understand their goods, such as pharmaceuticals and specific requirements and support fa s t-mov i ng c o n s u me r go o d s them in these critical times,” says R (FMCG), has significantly improved, Shankar, CEO - India, TVS SCS. but “there is still huge congestion at “Wherever required, we are in a posiports,” Agarwal says. tion to import a large size through air Taking into account the same, freight for any urgent, critical requireMayur Toshniwal, Managing Diments for our customers.” rector, Future Supply Chain (FSC) TVS SCS is already working with says, “Even though restrictions on The last-mile of the the Karnataka government in mantransportation of non-essential transport and logistics aging healthcare equipment services items have been removed, there is ecosystem involves a and spares such as ICU equipment not much happening on ground due high rate of ‘gig’ economy and ventilators at all primary and to a variety of issues, such as poor workers, ‘self-employed’ community health centers, taluk, availability of transport. Customer’s delivery drivers, and district and government hospitals. overall business is almost standstill zero contract hours The company is also offering misand hence only in-transit stocks are workers whose income, sion-critical services and closely enbeing transported. Manpower availjob security, and safety gaging with state governments and ability has been low too.” net in the case of private healthcare organisations. FSC, according to Toshniwal, is falling ill are deeply “We are working with a few venplacing a very high priority in seprecarious. tilator manufacturers to be able to curely transporting essential goods manage their inbound and outfrom various suppliers to their rebound supply chain. On the other spective clients. The company is hand, through our global sourcing ensuring that its customer’s stocks capabilities, we are procuring PPE are safe. “Our enhanced technology kits from Asian markets to send it to across warehouses is helping us to our global customers. We have already started importing operate in a better way with limited staff. At the same time, these kits for Indian customers,” Shankar adds. we are reviewing our operations on a daily basis and trying to effectively function during this global crisis.” Pain stands in the way of plan Giving a brief snap shot of how FSC is trying to tackle the Given the crippling shortage of workers and trucks, and risks facing the company’s essential workers, Toshniwal explains, “There are various measures that we have underskeletal air cargo operations, the industry is staring at an taken at our facilities to keep the workforce safe. Additionuphill task, even as curbs begin to ease depending on the ally, our HR teams have provided all possible support to infections in particular regions. Besides, the government’s ensure that our associates are provided with due transportaorders allowing goods movement is keeping a slow pace and
24 | CargoConnect JUNE 2020
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Mayur Toshniwal, Managing Director, Future Supply Chain (FSC)
We are placing a very high priority in securely transporting essential goods from various suppliers to their respective clients. We are ensuring that our customer’s stocks are safe. Our enhanced technology across warehouses is helping us to operate in a better way with limited staff. At the same time, we are reviewing our operations on a daily basis and trying to effectively function during this global crisis.
tion facilities. Apart from that, conforming to the guidelines issues by the Government, we continue to approach the relevant regulatory authorities to get our employees working passes. These passes enable them to reach our warehouses without facing much issue.”
Keeping freight clean and moving
and action at all levels in order to mitigate the risk of spreading of the pandemic. “From temperature checks at the entry and exit gates, to periodic checks for front-line staff so as to monitor their health, avoiding close contact with anyone and everyone, to providing PPE kits to the specific category of workforce handling baggage and cargo to and from the countries affected by the COVID-19 outbreak, we have practiced and followed every health and hygiene protocol,” Gazder adds. Sea ports and airports hold the world economy together. They connect countries, markets, businesses and people, on a scale not otherwise possible. A vast array of goods and commodities are transported through these two gateways to meet the demands of industrial and manufacturing sectors, energy needs, as well as business and consumer requirements. Facing the current pandemic, cross-border movements of relief goods such as food and medical supplies has increased dramatically. GVK MIAL managed Chhatrapati Shivaji Maharaj International Airport (CSMIA) is the largest gateway for pharma and agro products in India. The airport, coupled with its
Restrictions on trade and cross-border transport may interrupt needed aid and technical support. It could disrupt businesses and have negative social and economic effects on the affected countries. Governments should therefore continue to facilitate movement of not only relief goods, but goods in general, to minimise the negative impact of the COVID-19 outbreak. With India announcing a total lockdown starting March 24, all domestic flights came to a grinding halt. Initially, international flights were suspended for a week from March 22 but later extended coinciding with the lockdown. “We are seeing a significant impact on air cargo operations at Airports Authority of India (AAI) run airports,” says Keku Bomi Gazder, CEO, AAI Cargo Logistics and Allied Services (AAICLAS). Although there were restrictions on exports from India with an understanding to slow the spread of Given the crippling the disease and contain it with maxshortage of workers and imum restraint, Gazder says, the trucks, and skeletal air safety precautions and support from cargo operations, the the government helped them to conindustry is staring at an tinue 24x7 domestic air cargo operauphill task, even as curbs tions under ‘Lifeline Udan’ initiative of the Ministry of Civil Aviation begin to ease depending (MoCA), with extensive support in on the infections in clearance of COVID-19 related conparticular regions. signments with zero disruptions from the cargo terminals. AAICLAS’s air cargo facilities have been strictly following the International Air Transport Association (IATA) updated guidelines framed in association with World Health Organisation (WHO), International Civil Aviation Organisation (ICAO), and Airports Council International (ACI) on COVID-19, meant for all aviation specific activities related to inward and outward movement of air cargo, with the objective of ensuring appropriate planning
26 | CargoConnect JUNE 2020
Keku Bomi Gazder, CEO, AAI Cargo Logistics and Allied Services (AAICLAS)
AAICLAS’s air cargo facilities have been strictly following the IATA updated guidelines framed in association with WHO, ICAO, and ACI on COVID-19, meant for all aviation specific activities related to inward and outward movement of air cargo, with the objective of ensuring appropriate planning and action at all levels in order to mitigate the risk of spreading of the pandemic.
high-end infrastructure and state-of-the-art facility, has been efficiently providing vital support in mobilising and supplying essential commodities across the country and world. Until May 20, CSMIA has transported a total of 12000 tonnes of pharma and 2700 tonnes of agro exports. Recently, CSMIA also set a record for the highest number of cargo movements witnessed at the airport during these difficult times. The airport registered admittance exports of 725 tonnes and received 501 tonnes of import, in addition to import delivery of approximately 471 tonnes, marking the highest output of import and export cargo managed in a day despite limited resources amongst other challenges. The cargo staff at the airport is ensuring that the direc-
tives issued by the Government on maintaining social distancing, regular sanitisation, fumigation of facilities, cargo vehicles and cargo packages along with mandatory wearing of masks as well as gloves are followed day-to-day. For Cargo Service Centre (CSC), the leading cargo handling service provider in India who operates and manages air cargo handling facilities in Mumbai and Delhi airport as well as in Ahmedabad, Aurangabad and Mangalore airport, has been making provisions for social distancing and sanitisation measures at all its cargo terminals and facilities. Avinash Razdan, CEO at Delhi Cargo Service Center (DCSC) says, “Our operations team has been smoothly maintaining the flow of critical and essential services. We have been
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CargoConnect JUNE 2020 | 27
Avinash Razdan, CEO, Delhi Cargo Service Center (DCSC)
Our operations team has been smoothly maintaining the flow of critical and essential services. We have been reengineering the work processes to support productivity by optimising multiple handling of cargo with putting in place the recommended practices like deep sanitisation of all our facilities, regular and strict cleaning of all the touch-points, and continuous temperature monitoring at the entry gates.
reengineering the work processes to support productivity by by identifying the optimal trade lane, mode of transportation, the best rate, securing capacity and so on. optimising multiple handling of cargo with putting in place However, even when there is little to no turmoil and orthe recommended practices like deep sanitisation of all our ganisations are humming along with zero concerns, the facilities, regular and strict cleaning of all the touch-points, value of a freight forwarder cannot be denied. and continuous temperature monitoring at the entry gates.” Even during the current epidemic, forwarders have been DCSC has taken into account government’s national directive for the mandatory use of its contact tracing app able to deliver on their service commitments to customers, ‘Aarogya Setu’ for all its employees and allow entry to any while working remotely. This has ensured a smooth flow of person only when it displays the green status. cargo even when there is a lack of visibility on movement of “Temperature monitoring procedures have been made shipments. In the meantime, the pressures on forwarders are mandatory for all employees, truck drivers, agents and visitightening. Payment terms have changed. To block space on tors, and carried out at the entrances. Trucks arriving at the a flight, airlines are asking for payment up front. facility are sanitised at the entry point itself, while inbound Air freight rates have risen sharply in the last month, cargo is immediately sanitised beseveral executives say. Pricing on fore segregation and outbound cargo inbound flights from Asia have at the export truck dock. In addition, climbed over 75 per cent while export rates domestically and globally adhering to the guidelines issued by The airport registered have increased 20 to 100 per cent. the Ministry of Home Affairs (MHA), admittance exports of On the operational front, DB we regulalrly sanitise the premises 725 tonnes and received Schenker in India has been ensuring between two shifts,” Razdan in501 tonnes of import, in forms. that there is minimum interruption addition to import in transportation and movement of delivery of approximately True value of a forwarder essential commodities. “With pas471 tonnes, marking the There has always been risks insenger capacity reduced to zero and highest output of import volved with global trade whether schedule cancellations of many carand export cargo go freighters, we had to deploy charthey are political, economic, natural managed in a day despite ters for supporting customers who disaster or something entirely differlimited resources ent and that’s where the true value are into vaccine and PPE manufacamongst other turing, and health care equipment. of a freight forwarder rest – guiding challenges. Charters are being operated for both their clients through such turmoil
28 | CargoConnect JUNE 2020
Vishal Sharma, CEO – Cluster India and Indian Subcontinent, DB Schenker
With passenger capacity reduced to zero and schedule cancellations of many cargo freighters, we had to deploy charters for supporting customers who are into vaccine and PPE manufacturing, and health care equipment. Charters are being operated for both imports and exports between India and the US, and European and other Asian countries.
imports and exports between India and the US, and European and other Asian countries,” says Vishal Sharma, CEO – Cluster India and Indian Subcontinent at DB Schenker. “We ensured that all necessary permissions from the authorities were obtained to secure timely movement of the goods, workforce, trucks and staff. Additionally, we had to deploy security escorts not only for cargo protection but to navigate the check post and barricades. Our drivers were not able to articulate the need to transport goods during lockdown; hence we aligned with the security escort agency on the essential needs, relevant permits and approvals in place. This in turn was explained by them to the law enforcement personnel and local administration officers enforcing the lockdown,” Sharma explains. In order to facilitate exchange of critical updates, daily advisories are being circulated by DB Schenker to its cus-
30 | CargoConnect JUNE 2020
tomers and internal network. It captures the latest government and industry updates along with DB Schenker in India operational capacity (branch and product level). “Complimenting the advisories, we have also established a digital channel for daily communication to the employees,” Sharma says. “Our preparedness to the pandemic, weeks in advance when it started in China, has helped us to continue business with most of us working from home. The tools, technology and product experts have brought us closer to customers although we are miles apart. Over 95 per cent of our staff
Even during the current epidemic, forwarders have been able to deliver on their service commitments to customers, while working remotely. This has ensured a smooth flow of cargo even when there is a lack of visibility on movement of shipments.
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remains virt ually engaged and working from home. Besides, our digital platforms-- Connect4Ocean and E-Schenker are fully operational and serving our customers round the clock,” Sharma adds. With above, the fundamental priority for DB Schenker, Sharma says, remains the safety of its drivers, load-
Air freight rates have risen sharply in the last month, several executives say. Pricing on inbound flights from Asia have climbed over 75 per cent while export rates domestically and globally have increased 20 to 100 per cent.
for our customers and contract carriers during this volatile market. We currently have more than 11,000 employees around the globe working remotely, fully equipped with the connectivity and information flow required to process shipments,” says Madhav Thapar, Vice President - South Asia for C H Robinson.
Madhav Thapar, Vice President - South Asia, C H Robinson
Our scale, technology, and single, multimodal global transportation management system, Navisphere enable us to continue to support our network of nearly 200,000 customers and contract carriers worldwide. We continue to monitor the impacts to global and domestic transportation and provide updates through our client advisories while the COVID-19 situation remains fluid. ers and unloaders. “In terms of taking effective measures, we have made the usage of PPE mandatory for our employees who are at ground zero of activities and working on field including at contract logistics sites for keeping health care supply chains active,” Sharma says. World’s largest freight brokerage company, C H Robinson has also given top priority to the wellness and safety of its employees while executing against its comprehensive business continuity plans. The company remains fully operational around the globe, continuing to service all domestic and global logistics and supply chain needs while adhering to government and health regulations. “Our global reach and technology, position us to adjust operational support as needed to ensure uninterrupted service
32 | CargoConnect JUNE 2020
The coronavirus pandemic has highlighted some of the value that freight forwarders bring to their clients. And with the “pandemic that is now sweeping the world and shredding supply chains, the supply chain rule book no longer applies”. Value-added services such as customs brokerage, consulting, warehousing and more are no longer value-adds but instead expectations from customers. These can no longer be considered differentiators among freight forwarders. “C H Robinson’s network of experts is readily available to help with production planning and forecasting to ensure shippers are prepared with strategy and execution support. Our well established partnerships with ocean carriers, truckers and other lead stakeholders in the supply chain enable us to stay on top of new developments and respond with
Yashpal Sharma, Managing Director, Skyways Group
Our warehouses are being sanitised twice everyday and so is our fleet of vehicles. We have taken all the necessary precautions and even our front-end team members are provided with protective gear and equipment. Our business contingency team has been on top of each facility and personnel to ensure a safe working environment and implemented a lot of preventive and engaging steps.
agility and efficiency. Our scale, technology, and single, multimodal global transportation management system, Navisphere enable us to continue to support our network of nearly 200,000 customers and contract carriers worldwide,” Thapar says, adding that they continue to monitor the impacts to global and domestic transportation and provide updates through our client advisories while the COVID-19 situation remains fluid. Top Indian freight forwarder, Skyways has reacted with a lot of agility and adaptability while extending entire product offering to its customers, says the Group’s Managing Director, Yashpal Sharma. Sensing a lot of caution for its team members, all new and existing processes, procedures and standards at Skyways have kept safety in the forefront of all activities. “The new eco-system of Skyways for the next six months has been built, whereas above 80 per cent of our workforce can still ‘work from home’. New processes which allow almost 100 per cent digital flow of documents across our verticals, carrier partners and customers has been set up for smooth Value-added services functioning with least physical insuch as customs teraction,” Sharma mentions. brokerage, consulting, On the additional precautionary warehousing and more measures adopted for the well-being are no longer value-adds of the company’s staff, as well as in but instead expectations warehouse operations, Sharma says, from customers. These “Our warehouses are being sanican no longer be tised at least twice everyday and so considered is our fleet of vehicles. We have takdifferentiators among en all the necessary precautions and even our front-end team members freight forwarders. are provided with protective gear work and human dignity assured at and equipment.” each step. Companies will need to “Our business contingency team seek new ways to operationalise this has been on top of each facility and through collective industry approaches as well as bilateral personnel to ensure a safe working environment and implemented a lot of preventive and engaging steps. Besides, the business relationships. leadership team of Skyways Group has been reviewing each With above, it is imperative that regulators and law enforcement authorities recognise logistics industry as essential aspect at a micro level on a daily basis,” Sharma adds. services to keep critical supply chains up and running durTakeaways for the future ing a crisis, while enforciing necessary health protocols. Any The COVID-19 crisis has exposed the importance of the duty weak link undermines the resilience of the entire chain on of care extending throughout the supply chain, with decent which we all rely.
CargoConnect JUNE 2020 | 33
special feature
Dynamic Racking Warehouse Storage Working storage capacity of a warehouse depends largely upon the racking facilities and aisle layout inside the building. Choosing the most suitable racking system which complements the operating environment demands a thorough assessment of SKUs and various other factors associated with the operations. Apart from extending the lifespan of a warehouse, an optimum storage system also helps drive the operational efficiency of warehouse activities. Saurabh Sharma
34 | CargoConnect JUNE 2020
special feature
System: Reinventing Optimisation
B
eing a vital part of warehouse infrastructure, storage racking systems has all it takes to expedite operations. With appropriate warehouse racking, space and efficiency is increased and streamlined picking process is achieved. Steel industry plays a major role in warehouse racking, as a chief portion of its infrastructure demand a sturdy built material. Today, rack suppliers are seeing more demand for selective racking solutions and automated picking modules. D Raju, Managing Director, Kirby Building Systems and Structures India says, “Steel forms a major com-
ponent of any PEB or storage systemand thus is definitely going to see an increase in the acceptability as one of the key building material apart from the existing other building materials as steel has got many distinct properties and has an edge when compared to other building materials. Also, with increasing urbanisation and rapid increase in construction activities across the country, there is enough space for steel to create its own identity as the most important building material in all sort of storage systems and work towards developing sustainable construction either in individual or composite form.”
Focussed on maximising existing floor space and going up as high as possible, companies are poised to keep rack and shelving providers’ order pipelines brimming during the year ahead. Known for their organisational capabilities, rack and shelving helps cut down on clutter while maximiseing existing floor space in a warehouse or distribution centre. They also allow workers to use that space in a safer and more efficient manner—both of which can boost operational productivity. In a business environment where labour and real estate are costly and hard to come by, these warehouse mainstays continue to prove their worth. CargoConnect JUNE 2020 | 35
special feature
Selecting a racking solution
As there are several different categories of warehouse storage systems in the market today provided by material handling equipment providers, warehouse developers need to understand the nuances and nitty gritty of every storage system because layout plays a crucial role too in the selection of warehouse racking. Factors such as aisle width, docking locations, shipping areas, and other warehouse components affect warehouse racking options. Premal Karelia, MD, Jay Storage Solutions discusses the factors needed to be considered before installing the racking system in a warehouse. “The chief factors one should consider are flow of goods, accessibility to products while storing and retrieval, optimum utilisation of space especially verticals, inventory requirements, implementation plan, and last but not the least the objective of putting up a system. With its vast experience of 6000 plus installations, racking solutions has been at the forefront of designing efficient warehouse keeping the above criteria in mind,” says Karelia. Apart from this, there are other aspects which need to be taken into consideration before selecting the storage system cogent for a particular warehouse: • Type of goods to be handled (Box, pallets, cages, etc.). • Weight of the goods or pallets to be stored. 36 | CargoConnect JUNE 2020
• Storage capacity requirement. • Whether first in, first out required or not. • Dependability of work force. • Stock replenishment time. • Type of Material Handling Equipments (MHE) needed. Underscoring the importance of setting up an appropriate storage solution Manojit Acharya, Managing Director, Jungheinrich Lift Truck India says, “Selection of suitable storage racking and platform system plays a very important role on the throughput of the warehouse. Inefficient utilisation of racking system results in wrong practice of storing of goods in the warehouse, like block stacking or utilising the other dedicated loading and unloading areas, which in turn affects the normal operations within the warehouse, resulting in lesser throughput. Unconventional operation results in addition of more human intervention, which adds on to the overall operation cost. “The chosen system has direct impact on throughput. A lot of factors depend on the system we implement, namely the products, if it is perishable
Selection of suitable storage racking and platform system plays a very important role on the throughput of the warehouse. Inefficient utilisation of racking system results in wrong practice of storing of goods in the warehouse, like block stacking or utilising the other dedicated loading and unloading areas. Manojit Acharya
Managing Director, Jungheinrich Lift Truck India
Dynamic racking systems utilise inclined rails or rollers to allow pallets or boxes to slide towards the picking direction. These racking systems are also referred to as gravity flow systems.
special feature house, weight of products, and their classifications - light, medium or heavy,” points Karelia.
Pallet vs Floor storage
Most effective solution to avoid risk of damage to products and humans is to provide proper training to personnel’s for use of material handling equipment’s, adhere to safe load capacities, providing safety instructions boards, installations of safety barriers and providing designated areas for movement of man & machine. Premal Karelia
MD, Jay Storage Solutions
or general goods, does it has an expiry date, does it require first-in, first-out (FIFO) or first-in, last-out (FILO), type of MHE equipment to be used, weather conditions, if the goods are palletised or non-palletised, height of the ware-
Naturally, this is not a choice that should be taken lightly; warehouse storage systems are a major capital investment that, depending on the design and the way they fit into your warehouse floor plan and processes, can either help or hurt your throughput. It’s key to get acquainted with the options before being sold on one that might not complement your layout or support your need for flexibility.
Pallet Racking
Pallet racking is best suited for the busiest and largest warehouses; these systems are usually treated as the centerpiece of operations. Typically, pallet racking systems are made out of wood, metal, or plastic and hold inventory that is received in large boxes. Depending on the height, the boxes are placed on the pallet racking system with the help of a forklift or an automated mechanism. There are a variety of sub-categories of pallet racking systems, including carton-flow racking, cantilever racking, coil racking, double-deep racking, drive-
in racking, drive-through racking, highbay racking, mobile racking, narrow aisle racking, pallet live racking, push back racking, shuttle racking, and vertical racking. Most often, warehouses will choose systems based on weight limits, flexibility, and whether or not the system demands a change in infrastructure.
Multi-Tier Racking
A great choice for large stocks of items that have small unit sizes, multi-tier racking is a system that is designed to capitalise on vertical space. Because no warehouse is one-size-fits-all, many multi-tier racking options are flexible, with the ability to add or remove tiers depending on your current needs. Mostly, multi-tier racking concerns relatively lightweight items that are picked and organised manually. To get the most out of this warehouse storage system, organise each tier strategically and pack items as densely as possible, while at the same time paying attention to weight limits and ceiling-to-rack height compliance guidelines.
Static Shelving
Static shelves are storage mechanisms that are designed to stay in one place. For the most part, they are meant to hold inventory that is fairly lightweight (a few hundred pounds per shelf). It’s commonly used for storing inventory that needs continuous replenishment. Because they are not compatible with forklifts, static shelving is generally used with inventory that must be manually picked, placed, and/or organised. For your larger inventory, invest in a wide-span shelving system, which can hold more weight and can be used in higher-elevation configurations.
Mobile Shelving
Pallet racking is best suited for the busiest and largest warehouses; these systems are usually treated as the centerpiece of operations. Typically, pallet racking systems are made out of wood, metal, or plastic and hold inventory that is received in large boxes.
Similar to static shelving, mobile shelving is a completely adjustable solution that is meant to hold your manuallypicked items, but the difference here is that many of these systems are designed to hold more items in less space. With mobile shelving, shelves or cabinets are mounted on carriage and rail systems, eliminating fixed aisles and increasing productivity by making inventory more accessible, even when space is tight. Mobile shelving designs typically include level tracks that can either be CargoConnect JUNE 2020 | 37
special feature
The demand for additional capacity in warehouses/DCs will continue to grow, so it’s imperative that companies select racking and shelving solutions that can easily be modified to handle additional growth. manual or mechanised. Some even come equipped with locking systems to control access to inventory.
Mezzanine Flooring
If the strategic warehouse layout allows for it, mezzanine flooring is an effective and space-saving storage option. Essentially, mezzanine flooring is a second (or third, or fourth) floor that is constructed above the main warehouse floor. Because of the intrusive nature of the build, this is likely one of the more expensive options that a warehouse can choose, but it also has the most potential for customised features, such as lighting, lift-systems, and conveyors.
Dynamic Racking System Dynamic racking systems utilise inclined rails or rollers to allow pallets or boxes to slide towards the picking direction. These racking systems are also referred to as gravity flow systems. Dynamic rack includes pallet flow, carton flow and push back systems.
Pallet Flow
Pallet flow is a FIFO system that is outfitted with wheels or rollers and brakes to control pallet speed. When a pallet is unloaded from the front, the next pallet 38 | CargoConnect JUNE 2020
will move forward for picking. Compared to static selective rack which offers low storage density, pallet flow systems can reduce aisle space by 75 per cent and store up to 100 per cent more product.
Carton Flow
Similar to pallet flow systems, carton flow is a FIFO storage system which includes slightly inclined wheels or rollers for handling smaller applications such as cardboard boxes or small materials. It is often used for piece picking applications, as it can accommodate products that vary in size on the same bay.
Push Back
Push back is a FILO dynamic storage system where pallets are stored behind each other in a series of inclined carts. When a pallet is loaded onto the system, the cart is pushed back, exposing the next available cart. Pallets are loaded and unloaded from the same side of the system which maximises storage space while minimising the need for aisles. This system allows for storage of two to five pallets deep, making it up to 400 per cent denser than drive-in static systems. In the present scenario of warehousing industry, one of the most and foremost target of the customer is to
With increasing urbanisation and rapid increase in construction activities across the country, there is enough space for steel to create its own identity as the most important building material in all sort of storage systems. D Raju
MD, Kirby Building Systems and Structures India
minimise labour cost with optimal use of the facility. Role of technology and automation to improve the capacity and efficiency of the racking systems is also vital as the Integration of technology and automation in storage systems helps the client to get most desired output and reduce the stocking cost bore by service providers. Advancement in technology also helps the racking supplier to design the best solution for client as land cost is also on higher side so automation helps to use the space in most optimal manner. Automation plays a big role in driving efficiency in warehouse. It minimises human error, saves on labour and material cost while improving accuracy and precision of storing and retrieving products. Its impact on e-commerce will be tremendous, as companies try to minimise cost and reduce delivery time to stay above the competition. Often, both static and dynamic racking is integrated into one material handling system, referred to as a pick module. A pick module is designed to advance the efficiency of product flow by reducing or eliminating walking and/or equipment travel time. In a pick module, static racking works harmoniously with dynamic racking by housing overflow of products and replenishing the dynamic racking when needed.
special feature
Everyone is under an increasing amount of pressure to get their products out the door as quickly as possible. Racking and shelving, as well as freestanding mezzanine solutions, provide a fast and cost-effective way to achieve the goal of more space Kelly Kamlager
Director- Marketing, Wildeck Inc
Safety concerns Steel pallet racks are as critical to your warehouse operations as the employees that work within it. Unfortunately, these essential structures are often neglected after installation, creating potentially deadly occupational health and safety risks as well as costly property damage. Without comprehensive pallet racking inspections and self-assessments, serious accidents from faulty or damaged racks may occur. “Most effective solution to avoid risk of damage to products and humans is to provide proper training to personnel’s for use of material handling equipment’s, adhere to safe load capacities, providing safety instructions boards, installations of safety barriers and providing designated areas for movement of man and machine,” says Karelia. Though not always the case, it’s uncommon for a pallet rack failure resulting from a combination of at-risk racking and forklift operator error. Forklift operators are constantly negotiating tight turns into and out of aisles, and occasional accidental contact with storage rack uprights could be considered inevitable. That’s why the first point is to emphasise on forklift operator training, which is essential for warehouse safety.
Implementation of several measures can mitigate the chances of any unforeseen damage or wear and tear. Some of them are: • The operator should be properly trained to drive the equipment. • Loads which are taken to height should be properly shrouded to avert the damage caused by accidental fall off. • In case of automated racking system, proper maintenance check should be there. • Equipment capacity should be known to the operator and proper maintenance of the equipment be done as prescribed by the supplier. • Any damage should be informed immediately to the supplier so that it can be rectified. • A department should be formed which takes care of the complete safety norms that should be followed in the premise. Agreeing with Karelia, Acharya suggests, “Signboard display of weight carrying capacity of each location, level a nd overall rack i ng system should be implemented. Material handling equipment should be equipped with weighing machine to weigh the goods before it is stored on the racking system.”
Capacity revolutionisation ahead The demand for additional capacity in warehouses/DCs will continue to grow, so it’s imperative that companies select racking and shelving solutions that can easily be modified to handle additional growth freestanding mezzanines that are integrated with racking and shelving can be used to increase both capacity and flexibility. “Everyone is under an increasing amount of pressure to get their products out the door as quickly as possible,” says Kelly Kamlager, DirectorMarketing, Wildeck Inc. “Racking and shelving, as well as freestanding mezzanine solutions, provide a fast and cost-effective way to achieve the goal of more space,” Kamlager concludes. Organisations can save themselves on both time and money by investing in products that can easily be modified.
CargoConnect JUNE 2020 | 39
technology
Every stage of digital transformation brings value to the supply chain
A
s digital transformation progresses through supply chains, it becomes clear that certain supply chains are more mature than others. But none have achieved full digital maturity. The digital journey takes companies, and by extension their supply chains, through a series of ordered stages. Each stage contains specific competencies and technologies necessary to build a platform for continued digital evolution. Change is incremental. But as businesses gain proficiency within each stage, their supply chains become better-equipped to meet the demands of today’s complex, networked, global business environment. And while certain steps may seem small, it adds up to some truly transformative opportunities throughout the supply chain. For example, shipping companies must track their containers, which have long been tracked only using manual processes. In fact, according to a recent
40 | CargoConnect JUNE 2020
Kurt Salmon report, some 78% of shippers rely on phone calls, faxes, emails, or Excel spreadsheets to identify product location—and it takes about half of those businesses more than three days to do so.1 With digital network technology, this process becomes much more efficient. Rather than relying on manual tracking, a tracking signal is constantly provided, giving the shipping company real-time insight into where containers are at any given moment. This is not a new business process, but an improvement of an existing one. When it comes to transformative changes, this is where companies and supply chains can begin to explore the power of digital technologies. Stage 1: Intracompany
collaboration
Change management is a long and challenging journey–especially in the enterprise, where it’s common for various
business units and teams to work in silos. But transformative journeys begin with communication, especially within the four walls of enterprise. The first step of any digital supply chain transformation is aligning systems and processes within the four walls of the enterprise. Start with an assessment. Although it may seem like an incremental improvement–or an enhancement to a problem that doesn’t exist–many executives are often surprised to learn of the many disconnects and communications breakdowns within their own companies. For example, the marketing team might run a two-forone promotion, but may not properly communicate this to the supply chain team. The marketing team has done its job by promoting product, but the supply chain is left scrambling to get inventory to the right place in time. The first stage of digital transformation is all about identifying opportunities to improve your internal processes and workflows, finding ways to unify communications and systems, and incrementally addressing the supply chain challenges that are directly within your control. It’s a time to assess activities that supply chains are already undertaking. Digital technologies help leading businesses reduce the cost to serve by more than 6%. Stage 2: A networked supply chain
Individual businesses don’t compete; their entire supply chains do. That’s because in a world of complex, global, highly distributed supply chains, success depends upon precise orchestration and collaboration between the business and its many suppliers and trading partners. After all, about 80% of supply chain data exists outside the four walls of the enterprise.i The more a business thinks of the supply chain as a network (and less like a linear set of processes and interactions), the more it can understand the power digital technologies have in improving visibility and enhancing collaboration with its partners. Like the silos that exist within an enterprise, the lapses in visibility and communication between a business and
STAGE 4
Predictive
Network is able to anticipate and predict demand or outages within the supply chain. Prerequisite: Enhanced digital capabilities, including BL predictive analytics, machine learning and network intelligence.
its suppliers affect the supply chain more than most realize. Where the first stage of supply chain digital maturity is about connectivity within the enterprise, the second stage is about extending that connectivity outside the four walls. Many already use technologies like EDI for basic visibility between parties, while others might work with a 3PL or another logistics provider. While it’s a start, EDI is mostly a point solution, and logistics providers can only offer visibility into their own operations. There are still blind spots, even though the foundation is there. To truly network the supply chain, businesses need to bring all the data among parties together on a single platform. This is the only way to see the big picture of what’s happening across the greater supply network, and to identify inefficient processes and opportunities so they can be improved. As companies progress down the digital path, their supply chains will be required to catch up. By networking with suppliers and trading partners, businesses will be able to enhance existing interactions within the supply chain through greater collaboration and communication. But there are other benefits as well: businesses begin to see truly transformative changes at this level of digital supply chain maturity. It opens the possibility for new business models and service offerings to their suppliers and partners. Stage 3: Full customer
demand, integration
End-to-end supply chain visibility opens several opportunities to collaborate better with suppliers and trading partners, identify areas to improve, streamline financing, and react quickly to unexpected challenges or breakdowns. But there’s another area where this level of digital connectivity benefits a business: understanding demand patterns. Once businesses achieve a high degree of visibility into their supply chains, they become more attuned to demand and its effect on planning, forecasting, and the movement of goods. A networked supply chain leads to more comprehensive data. Businesses at this stage of digital maturity have a better sense of what customers want and
STAGE 3
Customer integrated
Customer demand is fully and instantly integrated into the supply chain. Demand signals are sensored and acted upon accordingly throughout the supply chain. Prerequisite: Digital capabilities extend to customer touchpoints.
STAGE 2
Networked supply chain
Digitised data is viewable end-to-end, all parties in the network can see and collaborate. Prerequisite: Supply chain presence at C-suite across the network.
STAGE 1
Intra-enterprise visibility
Automated workflows and collaboration to eliminate organisation silos and enhance visilibility between departments and divisions. Prerequisite: Company-wide embrace of digital transformation vision.
Digitised infrastructure, workflows, and processes in a common network environment enable greater network cohesion. A cohesive commerce network is the foundation that must be established and cultivated to progress upward in the Digital Supply Chain Maturity Model.
when they want it, which in turn triggers signals throughout the supply chain. Those signals can set into motion specific actions within the networked supply chain sooner. Making the most of this stage of maturity begins with enhanced analytics and business intelligence (BI) software. Businesses can then turn this new level of insight into action through increased automation of systems, and by connecting traditional planning and operations software to the network. This effectively extends systems such as ERP or PLM beyond the four walls of enterprise, further breaking silos between trading partners, and ultimately tying what’s being made directly to what the end customer wants. A greater sense of demand is measurable throughout all nodes in the supply chain. It’s up to businesses to position their supply chains to better harvest digital signals and make better decisions when the time comes to fulfill orders. Stage 4: Becoming
predictive
The first three stages of digital maturity are all about breaking down silos and building out a network of connected, integrated, and responsive nodes across the global supply chain. And while the benefits of enhanced
visibility, reduced friction, and greater responsiveness are self-evident, there’s still room for improvement. Indeed, a supply chain’s work is never done. The next stage of maturity builds upon all the preceding work and truly takes a business into the future. It’s where supply chains go beyond simply responding to demand to predicting it. Businesses at this stage are capable of anticipating demand or outages. They can respond to a potential issue before it becomes a problem or major breakdown that costs money and time. These supply chains can lean on the digital signals being produced by the network to determine when exceptions or opportunities will arise, and act accordingly. In this sense, the supply chain becomes more than the sum of its parts, transforming into a living, breathing, global organism that helps a business stand apart from its competition through agility, speed, and relevance— while also protecting the downside risk of too much inventory and unwanted or irrelevant products. It helps bu i ld t r u st w it h c u stomer s through higher levels of service, while keeping investors and stakeholders happy with better forecast accuracy and improved margin control. Source: Infor
CargoConnect JUNE 2020 | 41
interview
The current epidemic of coronavirus is spreading across the air cargo ecosystem hampering operations and sales to network and planning. What are Unisys’ suggestions to the industry at this juncture? Though it is difficult to predict the exact consequences of the coronavirus outbreak, the impact across global supply chains are already being felt. The implications of supply chain disruptions are global in nature and will be felt across a number of sectors. However, we have seen such situations in the industry before- the SARS outbreak, the attacks of 9/11, the global financial crisis and many more, and the air cargo industry withstood and recovered from the effects. Similarly, in case of the current epidemic,
In a global pandemic such as COVID-19, technology, data science and artificial intelligence (AI) have become critical to helping air cargo business effectively deal with sales and management while increasing security of data and shipments. Niranjan Navaratnarajah, Cargo Industry Director at Unisys APAC speaks to Upamanyu Borah about these emerging technologies, the challenge of tackling and maintaining data security in a connected ecosystem, and the latest best-in-class solutions that Unisys has to offer to the industry.
Unisys’ solutions could help protect and secure data as it moves along the value chain 42 | CargoConnect JUNE 2020
the air cargo industry has to pick it up as soon as the conditions subside or the effects start to decline. And, when they pick up, the pent-up demand will go through the roof, leading to exponential demand. However, that demand will be very short-lived and call for raw materials and finished products will be swift. Having seen this in the past, and as a technology solutions company, we at Unisys are urging the industry to be prepared, adopt technology-driven solutions for faster recovery cycles. Unlike the past, the battle lines are unclear; they are redrawn because the recovery times or peaks and troughs are much shorter. Therefore, during times like these, technology should be able to guide and provide solutions to all the stakeholders. For instance, providing direction on how quickly the goods can reach the market, how quickly the channels can enable this, how quickly cyber physical technology security can drive this change, and so on.
Data sharing across the supply chain partners is one area for improvement. As such, how can technology be used to reduce data input resource making it easier for companies to access information? Going digital cuts dwell time and reduces transport cycles – key to for the industry to quickly respond to the recovery. As two in three shipments now use eAWBs, centralised accurate and real-time data is already available in a format that is easy to share. However, the one question that remains is how to secure this data? The concept of data sharing or having it in a chain is impressive, but you need to make sure the right data is available to the right people at the right time, and wrong sources don’t get access to it. As such, cyber security of data is essential; one should maintain proper coordinated approach towards data protection and security. For instance, IATA’s ONE Record initiative aims to take digitisation to the next level by creating a standard for data sharing. It allows the creation of a single record view of a shipment through a standardised and se-
cured web API, improving the ease and accuracy of accessing the data.
What are the few interoperable and real-time solutions for the supply chain in air cargo? Interoperability and collaboration is very important. Additionally, how stakeholders will engage in the processes post-COVID-19 recovery, will be at the center of attention. Here again, sharing data will be fundamental, as well as the selection of channels: newer channels of operability in terms of supply chain to make it efficient so that the cycles are made shorter. One of the significant drawbacks in the air cargo industry is the fact that inter-sharing or operability of the data is slow. As a result, while physical goods move, data doesn’t. This leads to a consequence. Now if the data and physical goods move as equally and efficiently, end-to-end time cycles will be much shorter, and that’s what the e-commerce industry is thriving towards. As a company grows its e-commerce channels, there’s an increased need to operate in a multi-distribution center environment. How should their approach be towards inventory management processes to make them adapt accordingly? E-commerce and its evolution has entirely revolutionised retail. Today, most of the stores and shop fronts are closing down because they have less people coming through the doors. Everyone is buying online, being in their own comfort zones. And this is going to stay because it allows convenient ways and means of doing it. Now that’s the consumer part of it, where they are buying inventory online. If you link the same to the air cargo industry, the uptake has been slow because the players do not believe in the channels. Cargo inventory needs to be made available across multiple selling channels – in the same way; consumers can buy hotels and flights via independent online comparison sites. That’s where Unisys solutions come to play, we bring the inventory to a common medium, to a buying platform
where multiple buyers can see inventory online in real-time and 24/7. We have a range of portfolio and solutions; Digi-IQ, Digi-Portal and Cargo Portal Services (CPS) which provides a framework, a mechanism for buyers and sellers to come together online, do business as well as put the distress inventories. If a shipper comes into the picture and asks his shipments to be sent as quickly as possible given that it’s a priority one, the online portals can enable the speed in operations and ultimately aid in post-COVID-19 recovery cycles.
What are modern day ideal strategies to address the cyber security concerns in the digitally connected air cargo markets? Cyber-security lags behind in terms of adoption in the air cargo industry. We live in an actively and closely connected world where data can be easily siphoned off, manipulated, sold and reused without anyone’s knowledge. The industry has lately started to realise the value of data or security of personal information. The order of the day is, we need to share data as its going to help global supply chains function; it’s the future, however we should not be compromising on individual data. We need to start treating data as more than a passive asset class as
Post-recovery from COVID-19, air cargo businesses should deliver services based on three key pillars: multiple sales channels, secured data, and analytics for deep insights on behaviour. we start to dive in more and more into the digital realm. Protecting and cloaking data so as to make it secure will offer a true competitive edge and take the business in completely new directions. Unisys’ solutions could help protect and secure data as it moves along the value chain, this would help the industry and players own the confidence. When the stakeholders see and understand that their data is secure and only
the right people have access to it, they will hold on to that confidence. If one does not have the confidence, they won’t consider the materiality of data and its security, and then the entire chain will break down.
Sometimes having the tools and the information is not enough. One needs a quality analytics strategy that is able to accurately describe, predict, and prescript. As such, how efficiently a company can make use of analytics to respond quickly and therefore ensure prompt and safe delivery post-COVID-19 recovery? Post-recovery from COVID-19, air cargo businesses should expedite shipping and deliver services based on three key pillars: multiple sales channels, secured data, and most importantly, analytics for deep insights on behaviour. For instance, a freight forwarder should know when his customer would buy, what day he would buy, how often he would buy, which lanes he would opt, and based on that, he can determine if any shipment requires specific attention or if the shipping conditions need to be modified. Analytics can offer critical insights to equip oneself as of now, allowing them know which commodities might move, and the customers they might need to deal with postrecovery cycles. Further, information on whether warehouses are going to be congested because of the exponential demand post-recovery would help in accelerating the distribution and transportation process. A warehouse generally takes 2-5 days to hold inventories in terms of deliveries because the management of inbound and outbound trailers takes time. Mobile biometric applications can enable a smart phone or tablet to verify if a trailer should be granted access – with additional multi-factor authentication used to screen access for the most sensitive, and valuable cargo and that’s how you load and unload the shipment much quicker, helping reduce dwell time. This is again a catalyst for change whereby you use analytics to know and identify ways and means to deliver goods quicker and shorten cycle times.
CargoConnect JUNE 2020 | 43
interview
“Our ability is tested in our understanding of customer's need” Ranked amongst the top 50 global freight forwarder companies for year the 2019 and having presence in over 12 countries including North America, AWOT holds a great stake in the main trade routes through their array of services for project cargo, breakbulk, animal and plants transport, etc. Praveen Dadala, Managing Director, AWOT Global Logistics (India) in an exclusive interview with Saurabh Sharma talks about the significance of addressing customer’s requirements uniquely, and the company’s integration into China’s Belt and Road Initiative (BIR).
K
indly elaborate on the complete line of logistics services offered by you. Headquartered at Guangzhou in China, we have a very strong and significant presence on Mainland China having 24 offices fully covering china’s main trade routes. Our group specialises in charter service, project cargo, exhibition vehicles, breakbulk cargo, live plants and animal transport, amongst other traditional freight services. As a group, we offer our direct customers a complete basket of services pertaining to air, sea and land for freight forwarding along with all types of customs brokerages, FTWZ, bonded and normal warehousing and other domestic and cross border transportation services. What makes AWOT a compelling business case for clients seeking logistics services in face of cut throat competition in the market? AWOT India’s key ability is always tested when we are 44 | CargoConnect june 2020
able to understand clearly our client’s specific requirements and their intrinsic sensitiveness to supply chain challenges. We translate their unique needs into a simple one stop solution package and then deliver them with an experience outcome which is happy and satisfying, consistently over longer periods. Our business development teams are reared, trained and motivated to look for business opportunities to decide on combination of rate, service medium and personalised attention. Another of our key Indian USP is the ease of communication customer interface. Employees are well trained to converse fluently in Chinese and other Asian languages and also come in experience of working with international clientele. This has helped our customers a lot to liaise service issues with our Asian counterparts effectively to shor ten t rouble shoot i ng time, especially during the shipment costing and transit deviations.
Brief us about your contribution towards China's Belt and Road Initiative (BIR), initiated by govt of China in terms of both maritime and railways routes? AWOT group is integrated well into the international transportation channel 'One Belt One Road' giving wings to China’s import and export trade, wherever it is concerned. Under this framework, ocean shipping is still the main part. Thus, sea ports, shipping lines, and service routes are the key links of an international transportation organisation. We are relentlessly enlarging our network, connecting the hubs across the world, which helps provide more convenient logistics service and also reduce costs. We have explored the new demands of international trade logistics to match the development requirements of the countries along the route. AWOT took initiatives to provide shippers with an innovative third choice. Block trains of Euro Railways serve the European hinterland and cross-border trucking services the cargo from east and south China to Vietnam, Thailand, Malaysia, Singapore, and Myanmar. What are the policies put in place to assure the security of cargo and how do you leverage modern technology to develop tailor-made services to customers? As a global group, we strictly follow standards set by the industry to ensure full cargo compliances and thereby its security. Our group offices are compliant with AEO, ISO,
CTPAT, TAPA standards and the same is enforced internally in all our Indian offices to ensure that cargo care is given utmost priority. Our tracking systems are well enabled to follow the trail of the cargo to see any deviations and take proactive corrective steps in case any lapse or deviation is noticed. Our global headquarters’ IT department keeps a constant watch over the ever changing domain requirements and continuously upgrades our internal bespoke i n for mat ion systems to achieve the objective of global customer. All our internal and external processes are duly processed by our IT system in sync with both our company objectives and flexible customer requirements.
As a global group, we strictly follow standards set by the industry to ensure full cargo compliances and thereby its security. Enlighten us about future plans, if any, to expand your network further. In India, we started off from our first base out of Bangalore. Our expansion philosophy is based on the dire necessity of physical offices in geographical markets rather than to show many branches functioning or not. Our Bangalore office acts as the hub for all India-base operations as back-end, and through full utilisation of our robust IT systems, we continue to deliver satisfactory services across the country.
guestcolumn Glyn Hughes
Global Head of Cargo, International Air Transport Association (IATA)
Air cargo post pandemic; Let’s hope the lessons learnt will not be lost
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o doubt, there will be some long-lasting From a business perspective, looking ahead, we hope impact on society emanating from the cur- that 2021 will present a less volatile business environment rent Covid-19 crisis when it is consigned but with the expected reduction in passenger numbers, to the history books. We as individuals will we can anticipate challenges in achieving global cargo certainly be different; we will work differ- connectivity until the passenger networks return to full ently, interact with each other differently and appreciate scale operations. This will require more agile supply things differently. And from the positive impact that air chains and perhaps the continuance of passenger aircraft cargo has had as it continues to operate, I’m certain that it operating cargo only flights. will be indelibly etched in the minds of everybody around What we have now is visibility of air cargo! And once the planet of how the air cargo industry responded to help a Covid -19 vaccine is developed, the sheer scale and frontline medical staff and those infected with the virus by timeliness of global distribution will once again show the transporting much needed medical supplies and medicines. value of air cargo in times of a crisis, as well as in times But, what about the future? of an economic expansion. The airlines will come out of this crisis in a different Air cargo will also be critical to support factory reopening with urgent supply chain remanner. Passenger confidence will take a stocking of components and movement while to restore. Many airlines will resize as Difficult and challenging of finished goods. they may not be able to carry a fleet designed times require innovative But, we can anticipate a roller coaster for 2020 passenger levels in a market where and agile responses. The ahead of us for a while. We expect strong numbers are less than in 2017/18. I think it entire air cargo industry growth in e-commerce transactions to will also accelerate the arrival of a hands-free can be proud of how it continue as seen in the past months, they industry; we’ll see a lot more digitalisation. responded to Covid -19 provided a unique connection for people We should also reflect on the innovaand let’s hope the lessons tive way the airlines have mobilised their adhering to social isolation to purchase learnt will not be lost. grounded passenger fleets for cargo only much needed items during this difficult operations, which has also been a signifiperiod. We can also expect that once cant step. Employing new safety risk assessments, opera- traditional consumerism returns, as shops start to reopen, tional processes and in some cases, installing new global air cargo will be vital for restocking. networks in such a short time frame has been remarkable. Unfortunately, we can also anticipate that at some With nearly two thirds of the world’s passenger fleet point this year the economic contraction will result in grounded, removing nearly 40 per cent of the global air slowed activity and workers who have had employment cargo capacity, the utilisation of the industry’s fleet of impacted will focus on replenishing savings drawn upon freighters has increased and many previously parked during the lockdown. This may have a detrimental effect aircrafts have returned to service. This, together with the on consumer behaviour later in the year. growing number of passenger aircraft operating as cargo In conclusion, difficult and challenging times require only flights, has helped address some of the current ca- innovative and agile responses. The entire air cargo industry pacity shortfalls. can be proud of how it responded to Covid-19. Let’s hope The crisis has also demonstrated that governments, the lessons learnt will not be lost. We need to retain the focus international regulatory agencies and industry can suc- on digitisation, innovation, regulatory and industry colcessfully collaborate to design effective solutions and laboration, core services, quality-based supply chains and regulatory frameworks which have supported the con- most importantly, maintaining recognition of the value of tinuance of air cargo operations whilst most passenger customer relationships, partners and employees. services remained grounded. We hope this spirit of tarWith above, air cargo has a great future and will be geted multi-agency activity centered around common even more prepared for the next crisis, when it arises, to objectives can continue once the current crisis is over. support the global community.
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Traceability, Efficiency, Cost Management: Orient's three key elements Genesis and Business overview
A part of the diversified Indian conglomerate CK Birla Group, Orient Electric’s journey started over 65 years ago with a simple thought of making efficient, aesthetic, and durable electric fans. Since then, we have grown embracing new frontiers in technology and innovation, to become one of India’s leading electrical brands along with global presence and a diverse portfolio which includes fans, lighting, home appliances and switchgear. Today, Orient Electric is the largest manufacturer and exporter of fans from India with more than 60 per cent market share in exports and presence spanning over 40 countries. It is also the second largest manufacturer of As companies increasingly LED bulbs in India and the first Indian lighting brand to have been awarded use their supply chain to BEE star rating for LED bulbs. compete and gain market In the domestic market, Orient share, spending and activity Electric has penetration up to the in this area are notably on smallest towns with a well-organthe up-swing. Technology ised distribution network driven by and process upgrades at over 4000 dealers, 1,25,000 retail outlets and a strong service forward-thinking companies network covering more than 450 clearly show that supply chain cities. The company has fully excellence is more widely integrated manufacturing faciliaccepted as an element of overall ties based in Kolkata, Faridbusiness strategy, and that abad, Noida, and Guwahati.
increasing value to customers is not just management’s, but everyone’s, success. Benzon John, Head – SCM at Orient Electric specifies how his company views its supply chain to drive more value, as he considers answering Upamanyu Borah to these strategic and tactical questions.
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Leading edge
Orient Electric has always focussed on building sustainable competitive advantage through a culture of innovation, whilst keeping its consumers at the core. The company takes pride in its Research and Development (R&D) capabilities, spirit of continuous
innovation and commitment to manufacture cutting-edge lifestyle electrical products that meet the needs and expectations of new age consumers. Across Orient’s entire product portfolio, we are working on to bring in innovative products which are smart, healthier, safer, energy-efficient, and adds convenience to life.
Supply Chain best practices
With the aim to strengthen supply chain management functions, Orient has particularly focussed on three key elements - Traceability, Efficiency, and Cost Management. In conjunction with these objectives, we were able to achieve some noticeable results, viz; Consolidation of warehouses into three major warehouses which has helped to reduce to warehousing space by over 30 per cent. Direct billing to customers from the factories. Raising the service levels on order to delivery by more than 95 per cent. Continuous training to the SCM team members to keep them updated about the industry trends and educate them about the standard operating procedures (SOPs) for each operation. Centralisation of spare parts distribution operations to one warehouse, thus reducing excess inventory and ensuring increased material visibility and delivery.
We treat all LSPs as ‘Partners of Growth’ and expect them to display the core values of Orient in their day-to-day work and transactions.
Reducing the inventory holding days, thus reducing the working capital requirement.
Overcoming barriers
One of the key challenges we face is forecasting accuracy, which we are trying to improve month by month through introducing better planning processes, coupled with Sales Force Automation (SFA) and Document Management Systems (DMS).
Technology adoption
Today, digitisation is transforming logistics and supply chain management functions, bringing in real-time insights, increasing efficiency in operations, offering process-driven approach, and also leading to cost reduction. Some of the key projects under digitisation which are being taken up currently at Orient are Transport Management System (TMS), Warehouse Management System (WMS), Export Import (EXIM) Tracker, and Inventory Forecasting Tool.
Digitisation of the supply chain processes is helping us to coordinate seamlessly with our suppliers and transporters. Scope for LSPs
We have a very strong review mechanism at place for all our service providers based on key performance indicator (KPIs) which are mutually discussed and agreed upon. We also connect with our local sales and commercial teams on periodical basis to discuss the challenges faced by them on the field. These steps have helped us to resolve issues faster.
Logistics service providers (LSPs) are an extended arm of Orient. We treat all LSPs as ‘Partners of Growth’ and expect them to display the core values of Orient in their day-to-day work and transactions. At present, all key functions around logistics are outsourced. We are working closely with all key LSPs in the field of Warehousing, Transportation and Customs Clearance and have a robust review and control mechanism in place to ensure smooth and effective functioning.
Logistics management
Back-end SCM
Fostering relationships
Digitisation of the supply chain processes is helping us to coordinate seamlessly with our suppliers and transporters. For example, our original equipment manufacturer OEM suppliers are connected on Arteria Platform which is linked with TMS system. Similarly, the transporters are connected though TMS for truck placement, tracking of shipments and for electronic proof of delivery (E-POD). We are further planning to interlink all key digitisation projects of Orient so as to make information flow and decision making faster.
Information visibility is of utmost importance, in order to improve process reliability and inventory control. We at Orient have a strong IT support including Systems Applications and Products in Data Processing (SAP) solutions and other digitisation initiatives that support our supply chain ecosystem.
Digitally-enabled procurement function
We will see an increase in companies choosing to adopt a digital procurement approach in the near time. The need for improved market coordina-
tion, better compliance, process optimisation and risk reduction are some of the key factors driving this change. Standard purchase platforms will become the standard norm for procurement of materials and services. Many of the activities in procurement will happen through visual aids and virtual meetings.
Identifying megatrends
Faster adoption of digitisation in daily operations and increased mechanisation will drive more value for the business. And it is better to actively pursue and implement increased digitisation when the company is in the growth stage, as this will influence the entire way of working and thinking process of the company’s employees.
Orient has a strong IT support including Systems Applications and Products in Data Processing (SAP) solutions and other digitisation initiatives that support the supply chain ecosystem. Besides, there is the need to bring in automation faster. Warehouse automation is an area where most of the Indian companies are still lagging behind. The manpower, rental and other fixed costs are going up, and therefore it’s time for companies to automate many of the manual operations in manufacturing and warehousing. CargoConnect JUNE 2020 | 47
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SpiceJet operates its first freighter flight to Baghdad from India
ational Logistics Policy is being formulated and the draft policy will be revisited given the COVID-19 situation
Draft National Logistics Policy to be revisited and other factors. This will give an opportunity to further fine-tune the policy and discuss issues that have not been addressed in the previous draft,” Pawan Kumar Agarwal, Special Secretary- Logistics,
Ministry of Commerce and Industry, stated recently. Aggarwal urged the industry to share their recommendations and new ideas in formulating the policy in order to make India’s supply chain
more resilient and responsive to disasters and emergencies. He further added, ”The focus is on integrated development of the logistics sector so different players can be brought on the same platform.”
India’s merchandise exports plunge over 60%, imports contract by 58% in April 2020
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ccording to latest data released by the Ministry of Commerce & Industry, India’s merchandise exports nosedived 60.28% in April 2020 to $10.36 billion from $26.07 billion in April 2019. Similarly, imports tumbled 58.65% to $17.12 billion last month from $41.4 billion in April 2019, leaving a trade deficit of $6.76 billion as against $15.33 billion in April 2019. The Commerce Ministry report has estimated India's overall exports, taking merchan-
dise and services together, for the month of April 2020 at $27.96 billion, a de-growth of 36.65% over the same period last year. Overall imports during April 2020 fell 47.36% to $27.80 billion from what was a year ago. The decline in exports has been mainly due to the ongoing global slowdown, which got aggravated due to the current COVID-19 crisis. The latter resulted in large scale disruptions in supply chains and demand resulting in cancellation of orders.
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piceJet, India’s air cargo operator, has added Baghdad to its international cargo network. The airline operated its maiden freighter flight carrying 20 tonnes of critical medical supplies from Delhi to the capital city of Iraq on May 11. The airline deployed its Boeing 737 freighter aircraft for the assignment which departed for Baghdad from Delhi’s Indira Gandhi International airport. “Baghdad is the latest addition to our network in the Middle East. We transported 20 tonnes of COVID-19 related medical supplies to Iraq today and are thankful for each and every opportunity that we get to serve in these times of crisis,” said Ajay Singh, Chairman and Managing Director, SpiceJet.
CONCOR resumes direct rail service connecting ICD Hyderabad and PSA Chennai terminal
JNPT registers 80% import activity during April, handles record 499 container trains
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ue to the lockdown challenges arising from the coronavirus outbreak, Jawaharlal Nehru Port Trust (JNPT), India’s premier container port plunged 37% during the month of April to what was a year ago, registering a throughput of 283,802 twenty-foot equivalent units 48 | CargoConnect JUNE 2020
(TEUs) in container handling. However, this presented rail haulage a chance to improve its share of boxes evacuated to and from the port in the face of acute shortage of trucks and drivers. JNPT increased its rail coefficient to 22.39% against the previous financial year monthly average of 16.04%, by handling 499 container trains, highest-ever in a month. The import container volume at JNPT in April 2020 is 80% of what was handled in A p r i l 2 0 19 a n d o v e r a l l throughput is 63% of the cargo handled during the same period last year. The port handled a total of 167 vessels in
April 2020 and the overall turnaround time on Port a/c improved to 33 hrs from 39 hrs in 2019. “This is a result of the perseverance of our workforce and in time diligent effort and support of all the stakeholder of JN Port. Our commitment towards ensuring that trade doesn’t come to a standstill even during the lockdown has resulted in JNPT achieving these numbers. The entire family of JNPT will put in efforts to constantly evolve our operational efficiency and the port’s performance by maintaining all the safety protocols,” Sanjay Sethi, Chairman, JNPT said.
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he Container Corporation of India Ltd (CONCOR) has resumed a direct service, connecting its inland container depot (ICD) at Hyderabad with the terminal run by PSA International Pte Ltd at the Chennai Port Trust. It was the first time in three years that the two cities had been directly connected by rail for freight purposes. 32 containers belonging to Ocean Network Express (ONE) carrying sunflower seeds and two APL containers carrying PVC boards left CONCOR’s Hyderabad ICD for PSA’s on-dock railhead at the Chennai terminal. From there, the containers were loaded on the vessel ‘Xin Pu Dong’ run by ONE on the TE1 service bound for Manila.
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India and Bangladesh add 5 more ports of call
ttar Pradesh government has decided to accord ‘industry’ status to warehousing and logistics sector in the State, thereby, reducing the cost of setting up of parks and units in this sec-
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UP accords industry status to the state’s warehousing and logistics sector tor by a fair margin. On the new incentive for warehousing and logistics sector, Industrial Development Minister of the State, Satish Mahana said that Chief Minister Yogi Adityanath had given consent to this proposal at a recent meeting as this sector had immense potential to create enormous job opportu-
nities that are required to address the employment creation for migrant labourers returning from other states due to COVID-19 lockdown. Infrastructure & Industrial Development Commissioner, Alok Tandon said that this will drastically lower the cost of setting up units in Uttar Pradesh. For instance, presently change
of land use is charged at 150 per cent of circle rate from agriculture to commercial land use, which will now be only 35 per cent of circle rate as agriculture to industrial land-use change will be applicable. Now industrial land-use charges will be applicable to Warehousing & Logistics sector units and parks in Uttar Pradesh.
MoRTH to use MHA Control Room to ensure truckers, transporters smooth passage of cargo
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he 24x7 control room set up in the Union home ministry to monitor the nationwide lockdown will be used to ensure a faster resolution of the complaints of drivers and transporters on interstate movement of cargo. The development came after Road Transport and Highways Minister Nitin Gadkari held a meeting with officials of state transport departments
where the issues of transporters and drivers were flagged. To serve the purpose, the Centre has decided to depute Ministry of Road Transport and Highways (MoRTH) officials in the control room set up under the Union Home Ministry. The officials will assist in complaints and grievances resolution relating to the transport sector and drivers. They would also compile the daily
report on such complaints. To lodge any complaint pertaining to the movement of goods and carriers during the lockdown, drivers and transporters can reach out to the control room by dialing 1930. In addition, the National Highways Authority of India (NHAI) helpline number – 1033 has also been made available for national highway-related grievances.
ndia and Bangladesh added five more ports of call that would augment bilateral trade and provide stimulus to the economic development of the new locations and their hinterland. The five new ports of call in Bangladesh side are Rajshahi, Sultanganj, Chilmari, Daudkandi and Bahadurabad, while in the Indian side are Dhulian, Maia, Kolaghat, Sonamura and Jogigopha.
Adani Agri Logistics dispatch 30,000 MT grains during lockdown
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dani Agri Logistics Limited (AALL), a part of the Adani Ports and Special Economic Zones facilitated the dispatch of 30,000 million tonnes (MT) food grains during the lockdown period. Seven trains owned and operated by the company played a key role in facilitating the movement for transportation of food grains from production centres. The Food Corporation of India’s (FCI) strategic reserves of foodgrain stocks have come to the rescue during this critical period. AALL depots continued rake movement to fulfil FCI's orders from silos in the producing states of Punjab and Haryana to the field depots silos situated in the consuming states.
First-ever Aeroflot flight to Hyderabad carries 50 tonnes of medicines for Moscow
Air India SATS becomes full member of Pharma. Aero network
cargo-only PAX flight operated by Aeroflot Airlines, the largest airline of the Russian Federation landed at GMR-led Hyderabad International Airport (GHIAL) at 11:17 am on May 05. The Aeroflot freighter airlifted approximately 50 tonnes of pharmaceuticals, including
harma.Aero, which aims to achieve excellence in the transportation and handling of pharmaceutical products, has declared Air India SATS as the new full member to its air pharma network. Air India SATS, a joint venture between Air India Limited and SATS Limited, was formed with the vision to provide world-class airport services in ground and cargo handling solutions to its customer airlines.
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20 different types of medicines and vaccines, both in belly as well as fastened cargo-onseats and departed for Moscow at 12:03 am on May 06. This is the first time a commercial, one-of-its-kind wide body B777 Passenger to Cargo (P to C) flight landed at Hyderabad International Airport to
uplift critical medical essentials to the Russian Federation. CIS countries have a major demand for pharmaceuticals, and this freighter is expected to open up a direct gateway to the region. CIS countries also have a demand for aerospace, engineering and general cargo.
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WebCargo and IBS Software announce ‘industry first’ third party e-booking system integration
I Wilhelmshaven EUROGATE Terminal, Freight Village deliver added value during pandemic
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he EUROGATE Container Terminal Wilhelmshaven is offering all shipping companies and shippers the opportunity to store their standard containers for 20 calendar days free of charge. EUROGATE’s ‘20 in 20’ campaign which will be available year-round exclusively at its terminal in Wilhelmshaven aims to provide more flexibility, given the current fluctuating and economic uncertainty created by COVID-19. Keeping trade lanes open and
predictable, as well as fostering a more generally favourable business environment, the terminal has decided not to levy any additional financial penalty from importers or exporters in the event of delayed ship arrivals or even cancellations. The offer however is limited to ISO standard containers (20, 40 and 45 foot containers, including high cube containers) and for local inbound and outbound cargo. Directly adjacent to the port terminal is the Wilhelm-
shaven Freight Village that boasts a total area covering 180 hectares. It has high-quality handling and processing plots for logistics business of all sizes, mainly freight hauliers and transport companies, contract logistics businesses, and maritime service providers who depend on port access. Because of the permissible building height of up to 50 metres, companies can operate multi-user buildings, highbay warehouses, commissioning and distribution centres 24x7 at the freight village.
n an industry-first initiative, WebCargo, a Hong Kong-headquartered Freightos Group company, and IBS Software announced an out-of-the-box strategic partnership to empower airlines to become fully digital with an easy and cost-effective solution, which would also ensure a faster and smoother movement of supply chains during the COVID-19 pandemic. With the vast majority of bookings in the industry still being made offline, rate management and distribution are not only essential for a truly digital air cargo experience but also critical for a glitch-free and speedy movement of logistics. IBS Software iCargo platform is used by more than 30 airlines. This integration with WebCargo provides every airline working with IBS a unique solution to offer real-time eBookings to WebCargo’s customers.
DHL Global Forwarding rolls out one-stop portal for digital logistics: myDHLi
CEVA launches Truck–Rail–Truck multimodal solution for Southeast Asian businesses
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PL specialist, CEVA Logistics has developed a Truck-Rail-Truck (TRT) solution to keep customers’ freight moving during the ongoing COVID-19 crisis. The TRT is a practical multimodal transport solution to remedy the problems China and the Southeast Asian region are facing due to flight suspensions and reductions,
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space limits and operational restrictions in addition to long waits at border crossings due to the coronavirus pandemic. Export documentation requirements for the TRT service are the same as an all-trucked service and customs clearance can be achieved wit h i n
three hours. The China-Vietnam road border crossing point between Pingxiang and Lang Son currently suffers from backlogs of 2-4 days. To avoid this, shipments are picked up by CEVA across South and East China and loaded into 45-inch hicube (HQ) containers. They are taken by truck to the cross-border train, which operates three times a day, and into Vietnam, where they are then unloaded onto trucks and delivered to the final destination. Shipments bound for Thailand take no longer than 3-4 days, as opposed to 8 days.
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eutsche Post DHL Group’s air and ocean freight specialist, DHL Global Forwarding has launched myDHLi, the only fully integrated online platform for freight forwarding customers. myDHLi’s highly intuitive user interface makes it easy to use and ensures that customers have all relevant information at hand. Completely transparent management of freight rates, offers, transport modes, carbon emissions, and all other relevant shipment data is readily available with just a few clicks and can be displayed in detailed analyses and reports. One of the most unique aspects is the benefit of full visibility and control over all shipping and transport modes, 24 hours a day, 7 days a week.
American increases cargo-only operations from US to Europe to ferry live-saving essentials
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S carrier American Airlines is increasing its c a rgo - on ly s er v ic e from the US to Europe, as part of the expansion of its cargoonly operations this month to provide 126 weekly flights to 15 cities in the US and Europe, in addition to Asia and the Caribbean. New flights beginning May include cargo-only service from American’s largest
hub in the Midwest, Chicago O’Hare (ORD) to London Heathrow Airport (LHR) and Paris Charles De Gaulle (CDG). From Philadelphia (PHL), American will begin cargoonly service to Zurich (ZRH) and Rome Fiumicino Airport (FCO). American’s Philadelphia hub is known for its leading temperature-control facility equipped to safely move tem-
perature-sensitive pharmaceuticals including vital medicines. From ZRH to PHL, American will be transporting essent ia l phar maceut ica l chemicals, trucked from Germany, destined for Puerto Rico’s San Juan Airport (SJU). From John F Kennedy Airport (JFK) that serve the city of New York and New Jersey, American will commence cargo-only service to LHR.
Kuehne + Nagel achieves first-in-the-industry full network IATA CEIV re-certification
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eading global logistics service provider, Kueh ne + Nagel has achieved first-in-the-industry IATA CEIV re-certification for its entire KN PharmaChain GxP Compliant Air Logistics network, which include 94 locations across all the seven continents. A thorough review conducted by the International
Air Transport Association (IATA) Center of Excellence for Independant Validators (CEI V ) P h a r m a aud itor s proved once again that KN’s corporately developed quality standards, operational processes and training programs fully comply with IATA requirements, thus confirming the highest quality, safety of the award-winning KN Phar-
maChain product. Reinier Danckaarts, Global Head of Air Logistics Product Development at Kuehne + Nagel said, “We are proud to be the one and only logistics service provider that has received CEIV Pharma re-certification for the entire pharma network. Achieving this milestone proves the highest standards we have set with our KN PharmaChain service offering, which translates into superior quality and compliance of our customers’ pharmaceut ica ls a nd medica l equipment shipments. Together with IATA and our supply chain partners, we will keep driving this standard to ensure service excellence and first-in-class performance of our transportation service.”
Swiss WorldCargo expands cargo-only network service to new intercontinental destinations
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wiss WorldCargo is deciding to expand its network by leveraging the Swiss International Air Lines (SWISS) route network, and has deployed additional Boeing 777-300ER cargo-only passenger aircraft flights to New York, Hong Kong, Johannesburg, and Mumbai, starting May 15. The New York JFK flights will operate four times a week, the Mumbai service thrice-weekly, and the Hong Kong service two times a
week. Meanwhile, the weekly flight to Johannesburg will be performed initially by Edelweiss as a cargo-only flight, and then from June by SWISS. Swiss WorldCargo expects to carry out another 160 cargo-only flights by the end of June on behalf of various private and public institutions. These will include the first-ever services to destinations such as Toronto and Shenzhen. The first of four such flights from Zurich to Toronto were conducted on May 12, and ten more will be operated to Shenzhen from May 22 onwards.
China launches road-rail freight service to Nepal from Xi’an
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hina Railway Xi'an Group and China Railway Container Transport together launched a road-rail freight service from Xi'an, China’s northwestern Shaanxi province to Nepal’s capital Kathmandu. A train carrying cargo including PVC pipes, grouting pipes, clothes, shoes and printers left Xi'an on May 22 for Xigaze in southwest China's Tibet Autonomous Region, where the cargo will be transferred onto trucks and delivered to Kathmandu. The cargo service that will take eight days to complete is expected to decrease Nepal’s dependency on India for its freight transportation. CargoConnect JUNE 2020 | 51
spotlight
AAICLAS aiding India’s ambition of becoming an economic superpower
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nternational trade growth creates the requirement for efficient logistics infrastructure. The air cargo transport demand has been accelerating since the last decade with the growth in India's foreign trade making the country an economic superpower in the process. The emerging markets like India require a robust logistics infrastructure to support global trade which catalyse growth. Besides, the infrastructure needs to be globally competitive. The Indian market has maintained its growth momentum both in terms of passenger and cargo traffic with the rapid growth achieved in recent years. Several sectors like Manufacturing, Pharma, etc., are driving this phenomenal growth for India. Logistics infrastructure is the backbone on which this growth will catapult our country in the league of superpower economies. Airports Authority of India (AAI) has been pioneering the development of international cargo operations in the country at various metro and non-metro airports. AAI has the capability of
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handling express and general cargo with facilities for temperature-sensitive cargo, perishables, pharmaceuticals and dangerous goods. AAI has estimated that by 2022, the Indian aviation market will be third largest globally, after the United States and China. By 2040, India's passenger traffic will grow from 315 million to 1.1 billion. With a vision to become the foremost integrated logistics network in India, AAI Cargo Logistics and Allied Services Company Limited (AAICLAS), incorporated in August 2016, is working as a multi-modal interface linking air, surface and water transport. Today AAICLS has become the largest networked and fastest growing logistic solution provider company of India. AAICLAS promotes, represents, organises, undertakes, establishes, conducts, handles, arranges, owns, operates, participates, facilitates, sponsors, encourages, and drives the business as operator of cargo terminals, Free Trade Zones (FTZs), Air Freight Stations (AFSs) and Inland Container Depots (ICDs) for both cargo and passenger.
appointments
Pawan Kumar Agarwal appointed as Special Secretary – Logistics
The appointments committee of the cabinet chaired by Prime Minister Narendra Modi has appointed Pawan Kumar Agarwal as the new Special Secretary (Logistics) under the Department of Commerce, administered by the Ministry of Commerce and Industry. Pawan Kumar Agarwal is a 1985 batch Indian Administrative Service (IAS) officer of West Bengal cadre, currently serving as Secretary in the Department of Consumer Affairs under the Ministry of Consumer Affairs, Food & Public Distribution since February 2020. Prior to that, Agarwal served as the CEO for Food Safety and Standards Authority of India (FSSAI).
Sanjeev Ranjan new Secretary for Ministry of Shipping
After the approval of appointments committee of the cabinet chaired by Prime Minister Narendra Modi, Sanjeev Ranjan has been appointed as the new Secretary in the Ministry of Shipping. Ranjan took over the role with effect from May 01, upon the superannuation of Yudhvir Singh Malik at the end of April. Sanjeev Ranjan is a 1985 batch Indian Administrative Service (IAS) officer of Tripura cadre, currently serving as Secretary for the Ministry of Road Transport and Highways.
Giridhar Aramane takes charge as Secretary to MoRTH
The central government, after approval by the appointments committee of the cabinet chaired by Prime Minister Narendra Modi, has appointed Aramane Girdhar as the new Secretary to the Ministry of Road Transport and Highways (MoRTH). Giridhar Aramane is a 1988 batch IAS officer of Andhra Pradesh cadre. Before assuming his new position, Aramane was serving as Additional Secretary in the Cabinet Secretariat. Previously, he was Joint Secretary in the Ministry of Petroleum and Natural Gas from 2012-14. Aramane has also worked in the Government of Andhra Pradesh at various high-level positions.
K Vinayak Rao takes over as Member (Finance) at AAI
K Vinayak Rao, Indian Railways Accounts Service (IRAS) officer of 1987 batch has taken over the charge of Member (Finance) from May 13 on the Board of the Airports Authority of India (AAI). Prior to this appointment, Rao was serving as Member (Finance) in Delhi Development Authority (DDA). As Member (Finance) of AAI, Rao will be the overall in-charge of finance, accounts and financial operation of the organisation. He will also be responsible for evolving, formulating policies and strategies related to entire gamut of finance operation, including resource mobilisation and statutory compliances.
Flipkart appoints Sriram
Venkataraman as CFO
Walmart-owned Flipkart has appointed Sriram Venkataraman as the Chief Financial Officer (CFO) for Flipkart Commerce (Flipkart and Myntra). In his new role, Venkataraman will be responsible for key finance operations and functions at Flipkart and Myntra, including Tax, Risk Management, and Treasury. Sriram has been with Flipkart since September 2015. He has been the company’s CFO with additional charges of COO since December 2018, and was heading the logistics vertical Ekart, the marketplace, and the retail vertical, as part of his additional role.
Walmart India elevates Sameer
Aggarwal as CEO
US retail giant Walmart has named Deputy CEO Sameer Aggarwal as Chief Executive Officer of Best Price, effective April 01. He will report directly to Dirk Van den Berghe, the Executive Vice President and Regional CEO of Asia and Global Sourcing. Aggarwal joined Walmart India in April 2018 as Executive VP, overseeing strategy and administration and was promoted to Deputy CEO in January 2020. He has more than two decades of international business experience.
Vancouver Airport Authority announces
Tamara Vrooman as President & CEO
The Board of Directors of Vancouver Airport Authority announced the appointment of Tamara Vrooman as President and Chief Executive Officer, effective July 01. Vrooman joins Vancouver International Airport (YVR) following 13 years as President and CEO of Vancity, Canada’s largest community credit union. Prior to joining Vancity, Vrooman served as Deputy Minister of Finance for the province of British Columbia (BC). Vrooman has been a leading voice in BC, Canada and abroad for sustainable finance and investing, climate change measurement and reporting.
Kenya Airways’ former CEO Sebastian Mikosz to join IATA as SVP
Kenya Airways’ (KQ) former Group Managing Director and Chief Executive Officer Sebastian Mikosz, who quit the company before the end of his three-year contract in December 2019, will join the International Air Transport Association (IATA) as the Senior Vice President for Member and External Relations from June 01, 2020. Mikosz, apart from his airline experience, has served the position of VP at the Polish Information and Foreign Investment Agency, Senior Advisor at Socit Gnrale Corporate Investment Bank, MD of the French Chamber of Commerce and Industry in Poland, etc.
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Report
LogisticsNow chalks out the pathway to drive logistics response to COVID-19
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ogisticsNow, an Indian company with expertise to organise the logistics industry using the power of data science has produced a report titled-- 'The COVID-19 War: How India can win faster leveraging its supply chains and logistics?' to share insight on how logistics and information technology can work in tandem to minimise the economic impact in the wake of COVID-19. Highlighting the use of advanced technology that can be used for managing pandemics and emergencies in the future, the report suggests: Use of multiple data sources like image recog n it ion, dat a feeds from millions of cameras, social media feeds, online payment/transaction data, etc. powered by cohesive AI algorithms to identify and pro-actively isolate touch points of infected patients as was done in China. Such CIS systems would be our insurance policy if another pandemic breaks out in the future. Building Artificial Intelligence (AI) powered Citizen Information Systems (CIS)
The country created the India stack for Building digital supply chains and payments, resulting logistics in the digital payments revolution unprecedented in our history. A similar digital logistics revolution based on the “logistics stack” is required in our supply chains and transportation to power our supply chains with intelligence, visibility and agility. The India stack was a great start and as a Mandating and further driving m a j o r it y o f p aydigital payments ments become online, the data generated, in sync with CIS and Digital Supply Chains, will be a critical part to identify trends including spread of 54 | CargoConnect JUNE 2020
The report foresees a timeline of at least 1-2 months for the logistics industry to recover post lifting of the lockdown, which could be longer if action is not taken immediately. It provides a pathway to help scale the logistics response to COVID-19 in the near future with innovative solutions to help industry and the common man. pandemics before they become evident and keep citizens safe. Additionally, the report sheds light on the logistics situation in India at the grassroots level, and points out key recommendations that can aid the fight against COVID-19 as well as support the economy. Inventories of essentials goods, already in transit, in warehouses or with distributors, has to be unlocked immediately. While it will take time for manufacturing and transport to get back on track from the initial disruption, local inventories available with distributors can be moved quickly to the retail network. Unlock Inventories for Retail Consumers
Transport capacities have been disrupted Build/Re-build Transport Capacity by stranded trucks and a lot of drivers were left without basic amenities. There is a need for thousands of trained drivers/ trucks to move essential supplies. Options including the Army Supply Corps (ASC), Indian Railways, CONCOR, Freight Market-
places, and Freight Intelligence Networks along with large fleet owners/ truckers who can provide transport capacity from long haul to the last mile, need to be aligned quickly. World over, scientists are working Vaccine Distribution at a furious pace Capacity to discover a vaccine for COVID -19. A plan needs to be in place to ensure when it is ready to be distributed to the mass communities, transporting it to the farthest districts can only be accomplished by planning in advance and executing rapidly. An unprecedented level of planning is of utmost importance and public-private partnership can create a rapid COVID-19 vaccination program to save lives. The report also highlights concerns raised by prominent industry leaders in the logistics and transportation space: 50% + of India’s (organised long haul) trucking fleet is stranded without drivers. Local (short haul) transport, though less impacted, is working with reduced capacities. Trucks (including those carrying essentials) are still stuck for reasons including want of labour to load/ unload, check-posts, etc. Railways is stepping up and serving a few sectors, but the gap is large, with first-mile and last-mile being a challenge. Raj Saxena, Founder and CEO of LogisticsNow said, “The logistics network nationally, from long haul to lastmile, has been impacted and the lack of available logistics capacities and planning is likely to impact essential supplies and the common man.” “We have to act now,” Saxena stressed.
www.jsw.in/infrastructure
Taking maritime gateway to ascending heights Vision: 200 MTPA by 2021
JSW Infrastructure Sustainable growth is our motto of progressing towards a successful tomorrow. JSW Infrastructure is proud to be at the forefront of India’s push for infrastructure development. It’s an opportunity for us to leverage our potential and contribute meaningfully to our nation’s economic development. As an integral part of the US$14 Billion JSW Group, we build and function strategically located eco-friendly ports along the coastal belts of India and abroad. We believe in consistently delivering world-class services to our customer and help them grow exponentially.
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ENHANCING CONNECTIVITY
We constantly endeavour on expanding strategically by venturing into new avenues in the field of ports and logistics
We operate highly sophisticated ports, compliant with large-sized vessels and focus on greener shipping solutions
We are dedicated towards strengthening connectivity, leveraging our expertise in movement of cargo via coastal shipping and inland waterways
OPERATIONAL PORTS: Jaigarh | Dharamtar | Goa | Fujairah | Paradip Iron Ore Terminal UPCOMING PORTS: Paradip Coal Terminal | Nandgaon Jetty