India is the world’s fastest growing economy. Indian exports of both merchandise and services have witnessed an exponential growth of 13.79% in the year 2018-19. Kudos to India! As per the current report of the Federation of Indian export organisations, the contribution of export to the country’s GDP is about 18% to 19%. Although the global factors like rise in crude oil prices, strengthening of USA Dollar and US-China trade war has affected the Indian exports.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>Because of initiatives like Make in India where the primary goal is to brand India as a global manufacturing hub. India has managed to ride the roller coaster well. Dealing mainly in capital intensive exports, India is into exports of Petroleum products, Organic and inorganic chemicals, Electronic goods, Plastic and Linoleum.Not only this but the cabinet being lenient with the agricultural export policy, the Agri exports are estimated to grow from $37 billion to $60&nbsp;billion by the end of the year 2022. India is firmly following the mantra of Sky is the limit. Along with this, the basmati rice industry is on an expedition to have its highest ever exports in FY 2019.&nbsp;The Indian government has also equipped a rupee payment mechanism, to kick in with ease for trade with Iran, our largest importer of Basmati rice.Even the Indian pharmaceutical industry has played a crucial role in the country’s exports. It has managed to raise its exports by $11 billion in the FY 2018-19. The USA is the leading trade partner in pharmaceuticals accounting for about 1/3rd of India’s exports.India is centring on bilateral trade, with its prime focus simply on being together in an uncertain world. India has managed to sign 80 plus bilateral trade agreements.<h3 class="ql-align-justify">India’s Top 5 Markets for Exports as per the World Bank Report</h3><ul><li>United States</li><li>United Arab Emirates</li><li>Hong Kong, China</li><li>China </li><li>Singapore</li></ul><h3>India’s Top 5&nbsp;Export Products as per World Bank Data</h3><ul><li>Petroleum Oils</li><li>Diamonds</li><li>Medicaments</li><li>Art of jewellery</li><li>Semi-milled and wholly milled rice</li></ul>After marking down the highest ever exports to China this fiscal year, India is now making efforts to achieve greater market penetration in its exports.Indian export growth is essential to seize the opportunity in the global markets. Additionally, there has been an exponential growth in the Logistics sector as well.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">The logistics sector, backbone of trade and commerce across the globe is likely to grow to $215 billion worth. And by adding it to the Harmonised Master list of Infrastructure India has already taken a few steps closer.

Get to Know What India Exports

It’s always nice when the media takes interest in your company. Especially for a fast-growing startup trying to simplify freight and optimize global shipping. We have already been featured on The Loadstar and The Economic Times, to name a few.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a><h3>It's a Bird! It's a&nbsp;Plane! It's the Magazine on the Plane!</h3>If you fly British Airways this month, you will be able to read about Cogoport in the in-flight magazine. For those that don’t fly BA, here’s some of what they wrote about us in an article called “Cities of Innovation”, which Rotterdam is.“New digital solutions are also playing a major role by improving efficiency for the 30,000 sea-going vessels that call at the Port of Rotterdam each year. Indian startup Cogoport chose to open its European HQ in Rotterdam. The company has been called the “Uber of sea freight”, but Carmit Glik, CEO of Cogoport in Europe, prefers to think of it as the Booking.com of logistics. The service matches importers and exporters with freight carriers and is currently growing 20 percent a month, with about 4500 customers and 300 suppliers using it. “There is a significant focus on maritime and logistics innovation in Rotterdam,” says Glik. ”If you’re in that sector, you definitely want to be here.”<h3>We're Moving Freight. Port to Port and Beyond.</h3>The second article I’d like to share some quotes from is from an Israeli publication called Port2Port, who interviewed me at the end of last month.“Carmit Glik: "Cogoport was founded with the aim of providing added value to its customers by managing the whole supply chain - from our customer's factory to their end customer who purchased the goods abroad, while the entire handling and shipping process is managed by an innovative digital platform that reports real-time on all shipments and offers solutions and alternative options in real-time as well. We are essentially a digital "umbrella" that collects all the data from suppliers that offer shipping, forwarding and logistics services, and presents them to our customers in a convenient, efficient and transparent manner, including the costs of course, and the customer chooses a specific service through this platform. The digital aspect is very important, but as a company, we see the delivery of our customer's products to their end customers as the most important."<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a>Glik: "In the end, our goal is to simplify the access to the data and inform the customer of everything that really interests him, and in real-time. What matters to us is process improvement for both customers and carriers. At the end of the day, we will not do anything that doesn't provide added value to our users, which should be true for all the technologies that exist in the market today, whether it is Blockchain or artificial intelligence. It's all about the customer, and positive experience. And by the way, one of the biggest tests is always to see how things go when something goes wrong. For example, there was an accident and the container did not arrive in time to the port and did not board the ship - we know how to report it to the customer. This information is very important for the customer and he wants to get it right away. The ability to inform our customers instantly and give them alternative options is one of the advantages of our platform. Currently, we're working on an app that's available from any mobile phone that will further simplify the processes for our customers. Anyway, it's always possible to use the website or call us, and our employees can always intervene personally. It all depends on the severity of the situation, but our goal is to make the platform so simple and intuitive that the customer can do everything himself. "Glik: "There are suppliers that interface with our platform and there are suppliers that use it manually in their back-office operations. It depends on the company and its digital capabilities. Our goal is to be the link between suppliers that have ships, trucks, etc. to those that have goods to ship in the most efficient way. We work with everyone because we are a platform, a "marketplace" and as such we want to give the customer all the options that are available today. We will let our customers choose what options best suit their needs. Cogoport works in the background to make sure everything runs smoothly. It is the customer that chooses which carrier he wants to work with. And when the customer sends it to Western Europe, he can also choose whether the shipment will be delivered to its final destination by train, truck, or barge. Multi modal shipping is big here, and we offer the full range of services to manage that."<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" alt="" width="300px">Glik: "Our platform is divided between suppliers and customers and there are sub-categories for shipping companies, shippers and exporters. That's how the system identifies them, and if I'm a carrier I can connect to a network that can provide me with new business opportunities. And if you are a smaller carrier that doesn't have the large customer base of an international shipping company and you offer good service at a good price you have access to new markets you didn't have access to before."<h3>Hello, Is it Me You're Looking For?</h3>While I don't have a singing voice anywhere near Lionel Richie's, I do know Ocean Freight and Tech. So if you want to talk ocean freight, logistics technology, digitization of freight, or have any questions on Cogoport, then it is me you're looking for.

Cogoport in the News: Increased International Media Attention

What a week. There were two big logistics events in the Netherlands and I spoke at both. At Mulitmodal Europe in Rotterdam I spoke about container optimization and the repositioning of empties. For those that weren&rsquo;t there I will write a blog post about it and share it here.
The other event was the ICT &amp; Logistics event in Utrecht where I spoke about how booking a container should be just as fast an easy as booking a hotel. A big thank you to the many people that came to the sessions.
<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto"></a>
It&rsquo;s too bad both events were at the same time. I still got to meet a lot of new and interesting people, was interviewed about data and freight in the digital era and got a lot of inspiration from what other companies are doing.
Our new President of Supplier Relations &amp; International Growth Flemming Frost accompanied me to all events. Read more about Flemming in the post from our Founder Shekhar <a href="https://www.cogoport.com/blogs/welcome-on-board" target="_blank" rel="noopener">here</a>.
I didn&rsquo;t have much time this week, so there are less highlights then usual when it comes to news and interesting reading material that I came across this week. Anyway, here goes:
<h3>The Chinese Economy</h3>
&ldquo;Given that Chinese imports account for nearly half of all container imports moving over U.S. ports, one would be excused for prematurely jumping to the conclusion that U.S. port volumes are at great risk&mdash;as are the logistics and transportation jobs associated with moving Chinese imports from the port of entry to distribution centers and on to final demand markets. But let&rsquo;s not hit the panic button just yet.&rdquo;
&rarr; <a href="https://www.supplychain247.com/article/how_will_the_tariff_war_with_china_affect_u.s._container_ports" target="_blank" rel="noopener">How will the tariff war with China affect U.S. container ports?</a>
&ldquo;China&rsquo;s exports climbed 15.6% in October, versus the same month a year ago, in US dollar terms&mdash;way higher than what analysts expected. The real surprise, though, was the eye-popping 21.4% year-over-year leap in Chinese imports. That&rsquo;s odd given that China&rsquo;s economy is slowing abruptly again, which should translate to sluggish demand for goods from consumers and businesses.&rdquo;
<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">
&rarr; <a href="https://qz.com/1456033/despite-us-tariffs-chinas-trade-soared-in-october-it-may-not-last" target="_blank" rel="noopener">Despite US tariffs, China&rsquo;s trade soared in October. It may not last.</a>
<h3>Scrubbers</h3>
&ldquo;The decision on whether to invest in scrubber technology on containerships, ahead of the IMO&rsquo;s 0.5% sulphur cap on 1 January 2020, has resulted in ocean carriers adopting a &ldquo;polarised&rdquo; approach, according to an Alphaliner survey.&rdquo;
&rarr; Carriers still weighing up pros and cons of scrubbers vs switch to low-sulphur fuel
<h3>Logistics Tech</h3>
Gartner has published their predictions on strategic tech trends for 2019 again.
&ldquo;While most shippers, brokers, carriers, vendors, and warehouse operators will agree that the logistics industry is awash in emerging technologies, Gartner said its study focuses only on those trends that have substantial disruptive potential that is beginning to break out of an emerging state into broader impact and could reach a tipping point over the next five years.&rdquo;
&rarr; <a href="https://www.dcvelocity.com/articles/30215-gartner-flags-10-strategic-tech-trends-for-2019" target="_blank" rel="noopener">Gartner flags 10 strategic tech trends for 2019</a>
I couldn&rsquo;t agree more with the quote below, although I think that for the forseeable future there is more to be gained from automating processes, then automating vehicles. Automating processes is one of the reasons our platform increases efficiency.
&ldquo;Most transport companies say innovation and automation will help transform the industry by helping to boost productivity and reduce costs, according to the survey.&rdquo;
&rarr; <a href="https://www.dcvelocity.com/articles/30205-geopolitics-technological-innovation-top-global-transport-industry-concerns" target="_blank" rel="noopener">Geopolitics, technological innovation top global transport industry concerns</a>
One of the barriers blocking the adoption of new technology is one that we made sure is not applicable to our platform: investment. No need to invest. Joining the platform is free and the cost per shipment you pay for using Cogoport are a small percentage of the total cost you save using it.
&ldquo;Barriers to adopting technology persist &ndash; with transport companies citing the major challenges to adopting technology-driven innovation as cost and investment (71%)&rdquo;
&rarr; Automation to Define Future of Transport But There are Obstacles
And two infographics from the people over at FreightWaves on the rise of Transportation Tech.
&rarr; <a href="https://www.freightwaves.com/news/infographics/venture-capital-trends-part-2" target="_blank" rel="noopener">Transport Tech Rising: Venture Capital Trends (Part 2)</a>
&rarr; <a href="https://www.freightwaves.com/news/infographics/transpor-tech-rising-part-3" target="_blank" rel="noopener">Transport Tech Rising: Venture Capital Trends (Part 3)</a>
Photo by <a href="https://unsplash.com/photos/uUXB3EPgVp4?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText" target="_blank" rel="noopener">Mikkel J&ouml;nck Schmidt</a> on <a href="https://unsplash.com/s/photos/container-cranes-rotterdam" target="_blank" rel="noopener">Unsplash</a>

The Chinese Economy and Logistics Tech

Another busy week in Rotterdam. Looking at my full schedule I was thinking about how digitalising my life has helped me save so much time. I order my groceries online and they get delivered right to my kitchen, which saves a hours a week. Same goes for getting somebody a present (not for Christmas yet). My favorite e-tailer has an app for that. A few clicks and everything is arranged. And at work I&rsquo;m trying to do the same for importers and exporters all over Europe. Letting them book container shipments with just a few clicks.
<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto"></a>
Talking about saving time: let&rsquo;s go straight to the logistics news highlights for this week
<h3>Sustainability</h3>
The attention for sustainability issues is still on the rise, which is a good thing. We only have one planet, so we should use it wisely. Both ports and shipping companies have their eye on the green ball, but not all measures taken are favorable for shippers. I do however fully agree with the first concrete action of the World Ports Climate Action Program mentioned in the first article below. Increasing the efficiency of using digital tools is just what we are doing here at Cogoport.
&ldquo;It is important to note that Los Angeles/Long Beach joined six other international ocean cargo gateways in the initiative called the World Ports Climate Action Program. This represents the creation of In their release today, the seven ports have agreed to focus on five concrete actions: 1. Increase efficiency of supply chains using digital tools. 2. &hellip;&rdquo;
&rarr;<a href="https://www.supplychain247.com/article/international_ports_inspiring_deeper_commitment_in_support_of_the_paris_agr">International ports inspiring deeper commitment in support of the Paris Agreement</a>
&ldquo;The International Maritime Organization, the United Nations agency that regulates global shipping, will require that ships in international waters emit no more than 0.5% sulfur by 2020.
The mandate is poised to disrupt the maritime industry, which has long relied on cheap high-sulfur bunker fuel with sulfur content around 3.5%. The major lines are now facing hard decisions on how to meet the mandate.&rdquo;
&rarr;<a href="https://www.freightwaves.com/news/k-line-msc-2020">Major shipping companies outline plans for meeting the IMO's 2020 low-sulfur mandate</a>
This does have an effect on shippers, as carriers are adjusting fuel surcharge, for example
<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto"></a>
<h3>Carrier Rates and Surcharges</h3>
&ldquo;Carriers impose [fuel surcharges] unilaterally without any negotiation with shippers and ignore a market approach to the global problem.
The future of higher-cost low-sulphur is a multi-billion, complex issue in international maritime transport and it can only be addressed and understood by shippers if carriers provide cost transparency on their fuel spend and the cost impact of the new IMO low-sulphur regulation&rdquo;
&rarr;<a href="https://www.supplychain247.com/article/new_ocean_cargo_carrier_surcharges_in_january_have_supply_chain_managers_co">New ocean cargo carrier surcharges in January have supply chain managers concerned</a>
&ldquo;The containership industry may finally end a lost decade of investment returns as demand accelerates and ocean carriers keep a lid on supply, according to one market expert.&nbsp;
With the exception of 2010, operating profit margins have averaged between 3% and 4% over that period. But the benchmark is an operating margin of 10%, which is closer to the industry&rsquo;s capital cost... The spread between what liner operators earned and what it cost them to deploy ships accrued to the customers who received a service at a rate below what it cost to provide...&rdquo;
&rarr;<a href="https://www.freightwaves.com/news/containership-rates-outlook">Customers to pay up as container lines seek better returns, warns shipping expert</a>
<img src="https://app.cogoport.com/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" alt="" width="300px"><a href="https://www.cogoport.com/signup?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto"></a>
<h3>Christmas is Coming</h3>
Preparations for Christmas are in full swing though for a lot of people working in logistics. One of the two articles I read about the upcoming holiday period talks about how major logistics providers have started hiring additional staff already. It also gives tips on how companies can prepare their supply chains for the holiday season. Most of these can be solved right on the Cogoport platform: &ldquo;Give customers visibility to their orders&rdquo; and &ldquo;Prepare to use the spot market to make up for excess demand not covered by carriers&rdquo; and &ldquo;Get more rates by connecting with more carriers&rdquo;. Just saying&hellip; ;-)
&ldquo;The time for holiday hiring has arrived, with three of the biggest households in the freight transportation and logistics sectors-UPS, FedEx, and XPO Logistics, each making announcements to that effect over the last few days.&rdquo;
&rarr;<a href="https://www.supplychain247.com/article/its_almost_october_and_holiday_hiring_has_arrived">It&rsquo;s Almost October and the Holiday Hiring Has Arrived for the Transportation &amp; Logistics Sector</a>
&ldquo;A container supply chain would commonly require around a week for a box to be moved from arrival port to an inland distribution centre where it is unstuffed and the goods forwarded. Given the four-to-five week sailing time from Asia to North Europe, the last boat from China is effectively the end of October.&rdquo;
&rarr;When should importers start shopping for Christmas shopping?
<h3>Seagulls</h3>
Last week I wrote about&nbsp;<a href="https://www.cogoport.com/blogs/ocean-freight-roundup">autonomous container ships</a>, and the article below made me think of that immediately. I&rsquo;m guessing there is a good chance autonomous ships are designed with seagulls in mind&hellip;
&ldquo;Birds, too, can confound computers. In Boston, NuTonomy had to reprogram its cars to disperse stubborn seagulls. &rdquo;For the local breed of unflappable seagulls&mdash;which can stop autonomous cars by simply standing on the street, unbothered by NuTonomy&rsquo;s quiet electric cars&mdash;engineers programmed the machines to creep forward slightly to startle the birds,&rdquo; reports Bloomberg.&rdquo;
&rarr;<a href="https://qz.com/1397504/all-the-things-that-still-baffle-self-driving-cars-starting-with-seagulls">All the things that still baffle self-driving cars, starting with seagul</a>l
&nbsp;

Sustainability, Carrier Rates, and Seagulls

Something interesting happened this afternoon. At 11:30am I got an e-mail from the school my kids go to saying: Good morning. Earlier this morning there was a power outage and now we are closing the school. Please pick up your children at 12:00 noon. 30 minutes notice!Sometimes I wish there was a Cogoschool platform. By that I mean a platform that manages school logistics, much like Cogoport manages freight. One that informs you timely of changes, and potentially suggests alternative solutions for issues. One that informs other parties involved and gives you the means to deal with the changes.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>Instead of solving logistics challenges for customers I’m apparently (or a parent-ly) solving logistics issues for a school...Anyway. My highlights from freight and other news this week:<h3>Oil Price</h3>Surcharges have been in almost every Ocean Freight Update I have done these past weeks. As fuel is often an important component of the surcharges:“As the volatility in oil prices continue, there have been different opinions on its future with some predicting a three digit rate in a few years while a few hopeful of a downturn. Banking major Barclays has a rather interesting take on the situation, reasoning out that the prices would fall to around $70 per barrel next year rather climb higher.”→ <a href="https://www.freightwaves.com/news/todays-pickup-panama-city-braces-for-hurricane-michael-6mreh" target="_blank">Barclays predicts oil price to reach $70 next year</a><h3>Pirates of the Caribbean, no, Asia</h3>A total of 64 incidents of piracy and armed robbery against ships were reported in Asia during January-September 2018, a 3 percent increase compared to the same period for 2017, ReCAAP ISC said in its latest report.→ <a href="https://www.marinelink.com/news/piracy-rises-asia-442554" target="_blank">Piracy Rises 3% in Asia</a><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a><h3>The Urge to Merge</h3>There’s always talk about alliances, mergers, and takeovers. Between shipping companies, but also between logistics providers. Now there may be another combination of the two:“CEVA had rebuffed a full takeover bid from DSV, while at the same time giving CMA CGM the option to increase its stake to one-third of its shares.”“An accompanying statement from CMA CGM suggested it may well take up this option, and a fully fledged takeover of CEVA could also happen”“CEVA could be dismantled by CMA CGM, or its own management team, in the same way that Damco is by AP Møller-Maersk Group; if so, then, the freight forwarding assets – mainly contracts and staff – could be spun-off and presented to possible suitors.”→ Market Insight: CEVA and CMA CGM – vertical consolidation the next step?<h3>More on Capacity and Carrier Rates</h3>“The decision by Asia-North Europe carriers to blank or suspend 11 head-haul voyages this month appears to have halted the slide in spot rates on the route, the SCFI component virtually unchanged at $731 per TEU.However, if the 2M Alliance reactivates its AE2/Swan loop earlier than planned – on 5 December as suggested by Alphaliner – then spot rates could fall away quickly.”→ Early AE2/Swan return would add to the pressure on Asia-Europe carriers“If there’s a serious drop of Chinese exports into the US, it will push China to find additional markets. There will be winners and losers but a re-balancing within Asia could be positive overall as more consumer markets develop.”“Any big uptick in intra-Asia container volumes is likely to exacerbate port congestion across the region, however.”→ China-US trade war could be the founder of a feast for intra-Asia box traffic<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a><h3>Freight Tech</h3>“MSC has announced it will fit some 50,000 of its dry containers with smart technology over the next few months.”“The carrier said the technology would be provided by Traxens, the French container tracking start-up that has received investment from CMA CGM and more latterly MSC. Both carriers have a seat on the Traxens board.”“The Traxens system has three key elements: first, a tracking and environment-monitoring device permanently fitted to the box, which records data such as GPS position, temperature, impacts, movement, and vibration.”→ MSC opts for Traxens technology to create 50,000 'smart' containers“Rolls-Royce is partnering with Intel to conquer the immense amount of data required to make autonomous container ships a reality”“The data required to facilitate autonomous ships is greater in size and complexity than that necessary for autonomous road vehicles because of the increased variability of the environment.”→ <a href="https://www.supplychaindive.com/news/rolls-royce-intel-autonomous-ships-sensors/539683/" target="_blank">Rolls-Royce teams up with Intel on autonomous ships</a>“Energy innovation in shipping is not confined to main propulsion systems. Norsepower has installed its Flettner Rotor Sail Solution on three ships of different types – one Ro-Ro (roll-on, roll-off), one cruise liner and one tanker – and is documenting the resultant fuel savings.”→ <a href="https://about.bnef.com/blog/planes-trains-automobiles-electric-remake/" target="_blank">Planes, Trains and Automobiles – the Electric Remake</a><h3>Saving the Best for Last</h3>Great news last week: we were recognized as one of the 100 most innovative and disruptive companies in freight! A proud moment for all of us.At the end of last week, our founder Purnendu Shekhar wrote a post about in which he looked back, but also looked forward.“I love seeing their passion every day. Everybody is working closely together to make shipping goods across the globe easier, more efficient, and more transparent.”→ <a href="https://www.cogoport.com/en-IN/blogs/cogoport-recognized-freight-tech-100" target="_blank">Cogoport Recognized in the Freight.Tech 100</a>We were also mentioned in the announcement by Freightwaves:“From on-demand trucking to blockchain, loadboards and freight matching, the list of companies bringing innovative technologies to the freight industry is growing by the day, which makes the 100 that have made the cut to be honored by the FreightWaves Research Institute as part of its inaugural Freight.Tech 100 all the more special.Cogoport is an example. The company believes that booking ocean freight should be as easy as booking a hotel room. Its platform provides instant quotes, helps choose the right ocean carrier, allows for the uploading of documents and manages all shipments”→ <a href="https://www.freightwaves.com/news/trucking/innovation-key-to-making-the-freight-tech-100" target="_blank">From upstarts to traditional powers, the Freight.Tech 100 represents all that is innovative about freight</a>Photo by Tim Easley on Unsplash

Oil Prices, Merger, Rates, and Freight Tech

March was a busy month
at work. Financial year-ends usually are. Although I do try to keep abreast of
all important news and critical events in the industry, sometimes the schedule
doesn’t permit it. 



The news about the
fire on Maersk Honam is one such
missed incident. I came to know about the case whilst going through the industry
updates of the past month.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a>

As I understand from the media reports, it took almost 5 days to bring the fire under control. The
firefighting efforts are still in progress. This explosion resulted in the
death of 5 crew members, destroyed cargo worth millions, and caused heavy
damage to a new (2017 built) vessel. For the shippers who had cargo on board,
the nightmare has just begun. It may take months for them to get their cargo
back (if it has been salvaged) that too after paying a huge sum of money as the
Danish Liner has declared general average.


Why do we need to talk about this
incident?



Even though fire on
ships is not a frequent occurrence, it is a serious one. Thus, when such
incidents occur, we must not brush them away as accidents. They signal an anomaly
in the system or processes that are being followed.



Instead of stopping at mere reportage, these cases should be rigorously investigated for cause. And, we must collectively –
shipping lines, regulatory authorities, NVOCCs, and traders – work to
find solutions to mitigate such incidents. 



To spark off the discussion, I am sharing a
few questions that occurred to me as I read the media reports on the Maersk Honam Fire mishap.

Considering that the vessel was new, it
raises a question regarding the construction plan of the ship/quality of the
construction. One is compelled to ask if the ship’s construction plan was approved
by the American Bureau of Shipping? Or was safety compromised in anyway to
optimize design and reduce costs?<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">



<ul><li>How did the ship’s document of
compliance allow such dangerous cargo to be loaded near the crew’s accommodation?
Did the stowage plan of the vessel comply with the document of compliance? Were
the rules and regulations mentioned in the SOLAS Convention followed? </li><li>Was the cargo correctly approved in
line with the International Maritime Dangerous Goods (IMDG) Code by the
shipping line that accepted it? Here, along with Maersk, the responsibility for the mishap&nbsp; lies
equally with its 2M Alliance Partner - MSC and slot sharing partner - HMM. Since,
the cargo manifest is not made available to the vessel operator, it is
important to know if the
Line that accepted the cargo carried out due diligence?</li><li>Finally, did the shipper correctly
declare the nature of the cargo? One of the major reasons for such incidents is
misleading/incorrect information provided by the shipper or his staff due to
unawareness of the rules or inexperience of dealing with such hazardous cargo. As
an industry, we must take measures to educate shippers of the rules and
regulations, processes to be followed when dealing with hazardous cargo.</li></ul>

In addition to finding answers
to the above questions, we also need to understand where we are lacking in our
efforts to ensure ship safety: 

<ul><li>Are we providing the latest equipment
on the ships to deal with such mishaps?&nbsp; </li><li>Is our crew equipped with the knowledge
and training to manage any operational issues or accidents or fires?&nbsp;Training of
the staff on board must be of top priority because if even one member of the
crew is slightly unsure of what to do in such a situation, we are putting the
life of 25-30 other people at risk.</li></ul>

While investigations will
reveal the cause of the blast on Maersk
Honam, till the time the report is released, we must engage in healthy
debate on how to curb such incidents. As an industry, we must also work on educating
ourselves, our teams, and our customers to make due diligence and safety first an
integral part of our work. We owe it to the 5 sailors who lost their lives in
the incident. Image Source:&nbsp;@IndiaCoastGuard

Maersk Honam Fire: Ignorance as Cause?

According to a press release dated July
5, 2018, French container shipping giant, CMA CGM is set to overhaul
its Asia-Middle East Services from the end of July 2018. Network optimization and improved service offering have been cited as the reasons for this change.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" alt="" width="300px">

The press release from CMA CGM is appended below
for your reference and use:

CMA CGM is pleased to announce the reshuffling of its Middle East
services from the end of July 2018.



The Ocean Alliance Day Two
Product will offer in total 4 loops between Far East and Middle East ports with
competitive transit time. CIMEX 1 and CIMEX 3 will be merged into one loop
covering most of ports previously offered. 



The coverage includes the ports in China Mainland/Hong
Kong/Taiwan/Pusan/Southeast Asia and the major callings in Middle East region
such as Jebel Ali, Abu Dhabi, Dammam, Sohar, Hamad, Bahrain, Jubail, etc. 



The New CIMEX 1 rotation
becomes: 

Tianjin - Busan - Qingdao - Shanghai - Shekou - Singapore - Sohar -
Jebel Ali – Hamad – Dammam - Jubail - Singapore - Tianjin &nbsp;<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/09887e45a0720e9d89dc713600effb0d/CIMEX%20LOOP%201%20WEB.gif" alt="New CIMEX 1 Service Loop" class="center" width=""> 

 With this reshuffle, CMA CGM will be able to optimize the network and
enhance the reliability of products to our customers. 

Source:&nbsp;CMA CGM

Ocean Alliance – CMA CGM to Reshuffle Routes

In
the two years since opening the <a href="https://www.cogoport.com/en-IN/blogs/direct-port-delivery">DPD</a> import clearance process at JNPT port for
all registered members of Custom’s ACP program, the share of DPD has shown an
increasing trend. According to the update on the port’s website, in February’18 37.15% import containers were cleared via DPD at JNPort and 38.25% at JNPCT.<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a>



In
order to further increase adaptability of the model and smoothen the
process, port authorities have been trying to streamline the DPD clearance
process. A notification (Public Notice - 38/2018)“Operationalization
of “one time default intimation” to Shipping Lines by DPD importers at JNCH –Reg”
published on 9th March, 2018,
seems to be a step in that direction. 



In
the later part of the month, Customs released the process that the
importers are to follow for “one time default intimation”. The notification for
the same is cited below for your use and reference.<pclass="msonormal">OFFICE OF
THE COMMISSIONER OF CUSTOMS, NS-III</pclass="msonormal">MUMBAI CUSTOMS ZONE-IIJAWAHARLAL NEHRU CUSTOM
HOUSE, NHAVA SHEVA,TAL:- URAN, DIST : RAIGAD.
PIN – 400 707.F. No.
S/22-Gen-402/2017-18/AM (I)/JNCH

Dated 26.03.2018Subject:&nbsp;Procedure
to be followed for “one time default intimation” to Shipping Lines by DPD
importers at JNCH – Reg.<pclass="msonormal" style="line-height:10.2pt;mso-line-height-rule:exactly">PUBLIC
NOTICE NO. 49/2018&nbsp; Attention
of the Importers, Exporters, General Trade, Port Terminal Operator, Shipping
Lines / Shipping Agents, CFSs coming under the jurisdiction of Jawaharlal Nehru
Customs House (JNCH), Nhava Sheva and all other stakeholders is invited to the
Public Notice No 36/2018 dated 09.03.2018 regarding operationalization of “one
time default intimation” to Shipping Lines by DPD importers at JNCH. </pclass="msonormal">2. 
In order to relax the norms for advance
intimation for “DPD imports” it was decided that instead of requirement to
submit such intimation each time before arrival of the vessel, “one time default intimation” may be obtained from DPD importers and
submitted to shipping&nbsp;lines through
CSLA [csla@bombaychamber.com] so that default stacking code indicated in the
said “intimation” can be treated as default stacking code by shipping lines.
Accordingly, all the DPD importers of JNCH are advised to submit “one time default intimation” in the
format as annexed to the Public Notice No. 36/2018 in the manner as prescribed
in the format itself.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">3. 
As per the said Public Notice it was
required to endorse a copy of such “one time intimation” to DPD Cell at&nbsp;dpd.amijnch@gmail.com. However, it is being noticed that in
pursuance of Public Notice 36/2018 dated 09.03.2018, importers are either
sending hard copies of such intimation to CSLA/DPD Cell or sending e-mail
intimation only to CSLA without endorsing e-mail copy to DPD Cell.4.It is being reiterated that DPD importers are required to send “one time default intimation” tocsla@bombaychamber.com&nbsp;endorsing&nbsp;a copy to DPD Cell atdpd.amijnch@gmail.com.&nbsp;It is again
being informed that such “one time
default intimation”submitted
either with incomplete information or submitted without following the procedure
as provided under Public Notice No 36/2018 dated 09.03.2018 will not be approved
by Customs.5. On
receipt of the copy of such “one-time default intimation” by DPD Cell, should
check whether the requisite details are furnished and if found to be in order,
will communicate to CSLA (with copy sent to importer / Customs Broker to the
same email address) for compliance. Immediately on receipt of such
communication from Customs, CSLA will inform to all the shipping lines to take
action as provided under Public Notice No 36/2018 dated 09.03.2018 .6. 
In case of any difficulty, the specific
issue may be brought to the notice of Additional Commissioner in charge of ‘DPD
Cell’, NS-III (email address: dpd.amijnch@gmail.com).Sd/- (SUBHASH
AGRAWAL)Commissioner of Customs (NS-III)

DPD Update: Intimation Method for JNCH Importers

<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/7928782654bd854eaabf72f874ad8196/Cogoport_7%20Facts%20About%20Shipping%20Industry_Blog%20creative-04%20%283%29.png" alt="interesting facts infographic" class="center" width=""> Reference:90% of Everything by Rose GeorgeStatista.comThe Internet!

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