Finagle’s Law,
a popular version of Murphy’s Law, which says that “Anything that can go
wrong, will”, is probably the best way to explain the importance and
necessity of freight and cargo insurance. A few recent examples
of accidents or incidents which resulted in huge cargo or marine claims are:<ul><li>The&nbsp;<a href="https://en.wikipedia.org/wiki/2015_Tianjin_explosions" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Tanjin Port explosion</a>&nbsp;(2015) caused due to hazardous cargo could result in a loss of USD 6
billion. </li><li><a href="https://www.theguardian.com/business/2016/sep/02/hanjin-shipping-bankruptcy-causes-turmoil-in-global-sea-freight" style="letter-spacing: -0.02em; background-color: rgb(255, 255, 255);">Bankruptcy declaration of Hanjin Shipping</a> in September 2016 resulted in
huge cargo claims. </li></ul>Natural
calamities like earthquakes, floods, and hurricanes also form a major
part of marine claims.While all
transportation and allied service providers aim to provide safe transport of
goods from one place to another, the possibility of damage, loss, or delay
still remains. Damage or loss to cargo can be either due to natural causes or due to
breakdown of or accidents on the transportation vehicle (train, truck,
airplane, ship).A good cargo
insurance, to an extent, helps protect the shipper against all the things that
can possibly go wrong during transportation. It helps minimise risks and losses due to accidents, natural calamities, and damages during transportation.
It works as a shipper's lifeline till the goods reach the designated destination
and are handed over to the specified recipient as per the Bill of Lading.<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>Of course, this
protection comes at a cost and only if the shippers have acted in good faith and
have been prudent!However,
choosing a marine insurance cover is easier said than done. There are quite a
few combinations to choose from and too much fine print to read and understand. But, if a shipper keeps the following points in mind, then it becomes slightly
easier to choose a good cargo insurance policy.Sale
Agreement:&nbsp;The sale agreement plays a major part in deciding which party to the
sale is in charge of getting the cargo insured. In sale agreements where the
seller is responsible only for paying for the cost and freight (C&amp;F) or if he is responsible only for transporting the
cargo till the port of loading (FOB), then the onus of getting the cargo insured lies
with the importer/buyer. In cases where the sale agreement is cost, insurance,
and freight (CIF), then the responsibility of getting the marine
insurance cover rests with the exporter/seller.This point is
important as it determines which party to the transaction will be responsible for
arranging the insurance cover and how the claim process will be handled in case
of any damage or loss. Risks
Covered:&nbsp;The kind of risks and the extent of coverage is the one of the most
important points to consider when selecting a cargo insurance policy. The shipper should gauge the kind of risks that he may have to deal with and then
accordingly purchase an insurance policy that will help cover those risks. Frequency of
Trade:&nbsp;This is another aspect that can influence the choice of marine insurance
cover selected. If it is a one-time consignment, then the shipper can consider a
policy for that specific shipment only. If he has regular shipments, then he
can go for an open policy or an open cover.Arrangement
with Freight Forwarder:&nbsp;Though shippers are always advised to take
a policy for their own shipments, they can also check with their freight forwarder
for insurance cover options. Here, the coverage might be lower than what they would get if they bought their own cargo insurance policy, and
hence may not be sufficient to cover the losses in case a claim arises.Multi-modal
Transportation and Storage:&nbsp;If the transit requires multi-modal transportation,
then while choosing a cargo insurance policy, the shipper must also confirm and
check that the goods will be covered in all modes of transportation – rail, road,
air, and sea and while in storage during the transit time period.Assess Add-ons
Required:&nbsp;There are certain risks that may not form a part of the insurance policy
and may need to be covered separately. The party in charge of arranging for the
insurance cover must assess all the possible risks involved during transit and
the time in between with respect to location, transhipments, storage, and
political conditions of the countries involved in the trade. For example, if
one of the countries involved in the trade is going through riots or strikes
and the region falls on the route of the transportation – then it would be
prudent to get a cover against this specific problem. It may increase the
premium payable, but it will ensure that if the cargo suffers any damage due to
an unstable environment, the losses will be covered.<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" alt="" width="300px">Once there is
clarity on the above points, and the shipper has all the required information,
he can select from one of the following policies (most common types of cargo
insurance available in India) to insure his cargo. Specific Voyage
Policy: This
policy covers only one specific shipment. It is applicable only till the time
the shipment reaches the specified destination. As mentioned earlier, it is
ideal for shippers who do not export/import goods regularly.Open
Cover:&nbsp;Generally, a yearly cover is offered by the insurer to the shipper with
an understanding that the insurer will provide marine insurance (separate
policies) to both import and export shipments. Under this cover, a separate policy
for each consignment is created and a premium is collected for that specific
shipment.Open
Policy:&nbsp;This insurance policy is not applicable for international
transportation. It can only be taken by shippers who are transporting goods
within the country. It is generally an annual policy and covers movement of
cargo declared during the policy period.Annual
Policy:&nbsp;This type of policy is applicable only for goods being stored or shipped
from a specific place and where the title of goods belongs to the shipper (exporter/importer) who has taken the policy.While insurance
provides a safety net for the shipment, it comes with a set of rules that need
to be followed. If there is any instance of negligence from the insured, then
the insurance policy can be declared to be void.Shippers need to keep the following points in mind to get maximum benefit from their
insurance policies:<ul><li>Provide the correct details of the shipment with respect
to weight (net and gross), number of packages, nature (perishable, hazardous or
dangerous cargo). </li><li>Provide the correct details of the final destination and
the end recipient of the cargo. </li><li>Insure that the packaging of the cargo has been done
keeping trade guidelines and safety of the product in mind. </li><li>Insure that all the required labels and markings have
been put on the package. </li><li>Insure that all additional handling instructions have
been provided to the carrier and its agents. </li><li>Any other information that may have an effect on the
insurer’s decision to insure the cargo and give the insurer’s ability to
understand the kind of and extent of risk they are undertaking by insuring the
cargo. </li></ul>It is important to note that all
marine insurance claims are verified with the information provided at the time
of taking the cargo insurance.

Cargo Insurance: A Safety Net For Sailing

Cargo Insurance: Why It’s Essential for International Shipping

The B2B marketplace is perceived&nbsp;tech-&nbsp;phobic&nbsp;which means&nbsp;anything&nbsp;that&nbsp;smells&nbsp;automated to&nbsp;the user&nbsp;cannot be&nbsp;simple.&nbsp;The&nbsp;fight is on, to&nbsp;prove&nbsp;that it is&nbsp;but&nbsp;very&nbsp;simple. It&nbsp;just needs&nbsp;to be&nbsp;addressed, that’s&nbsp;all. Technology need&nbsp;not be feared, it does add only value.&nbsp;The buyer will save time and money and&nbsp;the seller will save on customer acquisition cost, where if a shipper wants rates and clearance, technology will give it all - value, in every service that is provided.&nbsp;How this new striker with a tech-enabled model can herald a movement is to make a statement and deliver a complete package in terms of the price discovery that can assure clarity, compliance to rules, speed, transparency, profitability and instantaneousness.&nbsp;A lot could be replaced by adding value through technology.Tech can be predictive, Tech can analyse.&nbsp;Said and done, pure tech play cannot change human nature. Herein lies the trick.&nbsp;Technology will need Humans.Solution: the tech driven model brings in the now-needed human touch.&nbsp;A hybrid platform which is not merely a portal, which can be an assisted process to transact the deal.&nbsp;Why hybrid?&nbsp;Because a full-fledged technologically sound platform may not quite be what the buyer may want to adopt immediately. Show the buyer a face, a voice that is capable of being the guide and give some comfort with the initial handholding- that is what technology will do...take it whole lot further.The idea is brilliant, so why wait till the concept gets tested?<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>Watch this space for more…. Next: “The Limit(lessness) of Technology”&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Technology - The need for a human face to it

Technology and Human Need: Balancing Innovation in Logistics

After rolling out GST last year, Government of India introduced the&nbsp;e-way bill system&nbsp;in February 2018. While the initial endeavour to roll out the new tax collection method was not successful, it fared much better in the second attempt made in&nbsp;<a href="https://www.cogoport.com/blogs/eway-bill-amendment">April 2018</a>. By end of May 2018, the GST e-way bill system had been successfully implemented for inter-state movement of goods in 21 states and six Union Territories. After effective execution of the new process in interstate goods movement, starting June 2018, GST e-way bill rule has been implemented for intra-state movement of goods throughout the country. Why is the GST e-way bill so important? The e-way bill system is a part of the GST regime. This system has been created with the aim to systematize logistical movement of goods in the country, improve and increase tax collection, and in turn control tax evasion.<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>What is an e-way bill? The GST e-way bill is an electronic document that is required to be carried by the transporter when transporting goods worth more than INR 50,000 via a single bill/delivery challan/invoice. What are the other benefits of the e-way bill system?Apart from making the country’s tax structure efficient, it is also believed that GST e-way bill system will provide the following benefits to the trade:<ul><li>GST e-way bill generation system is digitized and easy-to-use. This means that traders (taxpayers)/transporters will no longer need to go to check posts to generate an e-way bill.</li><li>Waiting time at check posts is expected to reduce with the introduction of e-way bill. This will help reduce not only transit time but also better manage road congestion and improve turn-time of vehicles. Reduced transit time will also positively impact transportation costs.</li><li>GST e-way bill system has simplified documentation pertaining to movement of goods. Unlike earlier, where each state had different documentation demands, now the documentation required for movement of goods has been made uniform. </li><li>Along with digitization of e-way bill generation, even the transport vehicles have been equipped with RFID devices to facilitate easy check of e-way bills. This has reduced the burden on the transporter to carry the physical copies of the e-way bills. </li><li>GST e-way bill system has made it easy to verify and check transactions for tax purposes for both the taxpayers and the tax administration. </li></ul>When should an e-way bill be generated or issued? An e-way bill is required to be generated or issued when a consignment worth INR 50,000 is going to be transported via a single delivery challan/invoice/bill. This value can be the total of all goods transported in the vehicle or of the invoice of each shipment being transported in a vehicle.&nbsp;Such movement of goods can be due to reasons of supply of goods, return of goods, or purchase (inward supply) of goods.A GST e-way bill also needs to be compulsorily generated in the following scenarios:<ul><li>Movement of goods, even if the goods being transported are less than INR 50,000, for inter-state transfer by the Principal to a job-worker or registered job worker. </li><li>Inter-State transport of handicraft material by a trader who is exempted from GST registration. </li></ul>Are any goods exempt under the e-way bill generation rule?The movement of the following goods does not require an e-way bill:<ul><li>Perishable goods – fruits, vegetables, meat, milk and milk products </li><li>Silver and gold jewellery </li><li>Raw silk </li><li>Handlooms </li><li>Wool </li><li>Cooking gas cylinders </li></ul>Who is required to generate an e-way bill?A registered person (trader, seller, buyer, consignor, consignee, transporter) is required to generate an e-way bill. An unregistered person also has to register on the e-way bill generation portal. However, an unregistered user is exempt from generating an e-way bill only if he is supplying goods to a registered person. In such a scenario, the registered person will be responsible for generating an e-way bill.<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>Is an e-way bill required in all movement of goods?No, there are some exceptions where an e-way bill is not required. For example, an e-way bill is not required for:<ul><li>Movement of goods under customs seal or direction </li><li>When movement of goods is via a non-motor vehicle form of transport </li><li>Transportation of goods under customs bond from ICD to port or one custom check point to another </li><li>Transit cargo from Nepal or Bhutan to India </li><li>Empty containers used for transporting cargo </li><li>Shipments/goods transported from customs port, air cargo station/complex, airport, customs check post to ICD or CFS for customs clearance process </li><li>Rail transportation of goods by State Government, Central Government, or any local authorities </li><li>Goods exempt under the GST e-way bill rule by the respective State/Union Territory </li><li>Movement of goods for/due to defence requirements with Ministry of Defence&nbsp;listed either as a receiver or a sender </li><li>Seller, sender, consignor of goods transporting goods to or from his place of business to weighbridge for the purpose of weighing the cargo within a distance of 20kms. A delivery challan should be sent along with this kind of cargo movement. </li><li>Movement of goods listed under annexure to rule 138(14), goods considered as “no supply” according to Schedule III, and specified Schedules of the Central Tax Rate notifications. </li></ul>From where and how to generate an e-way bill?It’s simple! To generate an e-way bill all you need to do is register on the e-Way Bill System&nbsp;portal. Does an e-way bill have a validity period? What is the validity period?Yes, e-way bills have a validity period. It is based on the distance that the goods are transported. The validity period starts from the date and time of generation of an e-way bill.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/db01c10668c07284b931d80701357e66/eway%20bill%20new%20slide.jpg" alt="e-way bill" class="center" width=""> <img>What are the documents required for generating an e-way bill?The following documents are required for generating an e-way bill:<ul><li>For transportation by road the transporter ID or vehicle number is required </li><li>For transportation by rail, air, or sea, the transporter ID, transport document number, and the date of the document is required </li><li>Bill of Supply, challan, or invoice pertaining to the goods being transported </li></ul>For more information on the GST E-way Bill system, processes, and how to generate an E-way Bill visit&nbsp;Goods and Services Tax e-Way Bill System&nbsp;Portal.&nbsp;

E-Way Bill Update: All About GST System

Everything You Need to Know About Eway Bill: Rules, Process & Compliance

One of the questions we get a lot at Cogoport is what the difference is between Cogoport and regular or digital freight forwarders. You can book a container shipment at a freight forwarder as well, right?Well technically, yes, you can. But there are a LOT of differences. I’m happy to take you through some of them.<h2>All Suppliers vs. Preferred Suppliers</h2>Freight forwarders may have contracts with certain carriers, which can result in the fact that they will favor these carriers. They have a direct commercial interest in which carrier you choose.If you use the Cogoport platform you can book shipments with all carriers on the platform. Cogoport has no contracts that would cause us to promote a certain carrier. We present you with all the options and the choice is yours. We empower customers to make their own free choice.<h2>Specified Rates vs. All-in Rates</h2>Freight forwarders often give you all-in rates. You get a price for your shipment without really knowing what you are paying for.If you use the Cogoport platform you get a full and transparent breakdown of all the cost involved in your shipment. All charges to you are clear and specified. Our promise to you is: no surprises. There are never any additional charges for any reason after the shipment is booked. What you see is what you get.<h2>Full price comparison vs. Ocean freight price comparison</h2>Freight forwarders often let shippers choose between different ocean freight rates. The total landed cost of each shipment, however, can be very different.If you use the Cogoport platform you not only get the ocean freight rate but also complete insight into all other related costs, whether they are at the port of origin or the port of destination. That way you can base your decision on the total landed cost. Not only port-to-port but door-to-door if you want.<h2>Pro-active vs. Reactive Notifications</h2>Booking a shipment at a freight forwarder usually involves many phone calls and emails. The same goes for tracking your shipment.If you use the Cogoport platform you get full visibility for all your shipments. For each shipment, there is a clear overview of all the milestones and it’s easy to find a detailed track and trace information if you need it. You will also get an instant notification if there is an issue with one of your shipments. You can have peace of mind and use your time to focus on other matters. As long as you don’t hear from us everything is fine.<h2>The 4 main differences between digital freight marketplace Cogoport and a freight forwarder</h2><ol><li>An unbiased overview of all available carriers</li><li>Specified rates. What you see is what you get.</li><li>Choosing a carrier based on total landed cost.</li><li>Peace of mind. Pro-active notifications if a shipment needs your attention</li></ol>

Difference Between Freight Forwarder and Cogoport

Freight Forwarder vs Cogoport: Key Differences & Advantages for Shippers

Speculation over the Brexit effects grows as the saga is nowhere near finding a conclusion. People all across the globe anxiously wait for the terms of separation of the United Kingdom from the European Union to see how it affects their businesses.&nbsp;In 2016, the people of the UK voted to leave the EU in a move to set their own trading rules and control a range of issues such as the movement of labour, agricultural policy and tariffs. Three years on the terms of the divorce are still being debated and the implications for the shipping industry remain unclear.We’ll try to help by summarising a few possibilities - but don’t blame us if we get it wrong as things seem to change daily!Crucially the separation process was intended to have two parts. The initial exit - or Brexit - was the stage when formally the UK left the EU. Subsequently, the EU and the UK need to agree to the terms of their future relationship.However, agreeing terms of the exit still hasn't happened and it looks as if the UK is heading towards a ‘hard Brexit’ on 31 October with a mass of uncertainty and disruption.WTO tariff rules apply to trade between the UK and EU.Before the split, as part of the same customs union, no tariffs were applied to intra EU trade. However, the divorce can lead to both European Union countries and the UK trading under WTO rules which come with tariffs and regulations. If no alternative to applying WTO trade rules is found, businesses and consumers in the UK will likely face price increases and find exports to the rest of Europe become unattractive.New border, new rulesThe situation of the customs regulations after the split is still uncertain. Before, custom checks only applied on goods entering the EU; once inside, they crossed borders mostly without additional checks or paperwork. However, clarity has yet to be provided about the procedures for goods moving in and out of the UK.Doubts have also risen on whether trucks from the UK will continue to move freely in Europe or would they require fresh permits. More importantly, there is also no clarity as to whether the UK will still apply EU standards and regulations covering goods or would the newly separated country develop its own. The impact of UK-only rules would mean that goods produced for that market might be barred from sale in the EU.Another place where a problem of customs checks could be encountered is the border between Northern Ireland and the Republic of Ireland. Currently, goods move freely within the island of Ireland but Brexit could mean the return of a border with customs checks between the Republic and Northern Ireland which is part of Great Britain.&nbsp;There are significant political and historical implications to the reimposition of a hard land border and this has proved to be one of the biggest sticking points in the negotiations between the UK and the EU.&nbsp;Whatever the outcome in Ireland, border checks elsewhere between the UK and the rest of the EU may result in considerable delays. Presently, according to to the London School of Economics, it takes roughly two minutes for EU countries to clear their goods at the port of the UK. Fuller checks post-Brexit effects could take much longer and the main ports lack the infrastructure to cope with large backlogs of goods awaiting clearance. Significant delays are possible.Increased transportation and labour costsShipping charges from the UK and EU countries can increase. And so can the costs for the trucking services. Britain may face a shortage of drivers as 10% of their commercial drivers are migrants from the union countries. If a substantial proportion of the labour force is lost there will implications for the cost and availability of freight services. Additionally, UK companies had the luxury of EU maritime cabotage rights while they were a part of the union. This meant that they had the rights for water-based transportation within a territory. The separation can also see these rights been revoked.It is still uncertain whether the UK will separate from the European Union with a deal or without it. Hopes that the separation could be achieved with some agreement over the terms governing customs and regulations (the so-called ‘Soft Brexit)’ are fading fast. A no-deal Brexit where the UK overnight becomes a stand-alone country without an understanding about its relationship with the largest trading bloc on Earth is likely to be chaotic.Check out Cogoport’s <a href="https://www.cogoport.com/blogs" target="_blank" style="color: rgb(0, 0, 0); background-color: transparent;">blog</a> to get more on the latest update of Brexit now!* The information contained in this article is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Unseen Effects of Brexit on the Shipping Industry

Brexit Effects on Shipping Industry: Challenges, Opportunities & Adaptation

The shipping industry is undergoing a technology revolution. This age-old industry which, till the last decade, was hesitant to harness new technology, has now taken up all-round modernization with a vengeance.Today, globally, the industry as a whole is exploring and implementing new technology in all spheres of the trade. Ports, ships, systems and processes, and allied services are all getting a technological facelift. The industry’s efforts to digitize are also being aided by startups that are creating tech solutions specially for it. Technologies like Robotics, AI, machine learning, internet of things, blockchain, drones, and augmented reality are being harnessed to create a safer, efficient, and more productive environment to carry out export and import trade.While there are many changes that are happening in the world of shipping – and all are important, here are some that have captured our interest:Robotic Technology: Robots have infiltrated almost every industry in some way or the other. Now, they have turned their tech-eye on the shipping industry. Research institutes and companies in the automobile, transport, tech sector are collaborating to build robots that can aid in ship management, safety, servicing, and inspection.Among these, SAFFiR – Shipboard Autonomous Firefighting Robot, being developed by the US Navy Research Lab in collaboration with Virginia Tech, has caught our interest. And, for a good reason too.&nbsp;Fires on ships can cause huge damage to human life, environment, and the cargo on board. For example in the recent&nbsp;<a href="https://economictimes.indiatimes.com/industry/transportation/shipping-/-transport/fire-on-container-ship-under-control-no-word-on-missing-crew/articleshow/63237662.cms">fire</a> on Maersk Honam, four crew members have been reported missing and insurers are&nbsp;estimating a loss of millions of dollars in claims from the vessel carrying more than 15,000 TEUs.While accidents on sea cannot be completely avoided, loss of human lives and cargo can be, to a certain extent, mitigated by fire fighting robots that are designed to take charge in such situations. SAFFiR which is currently being built for US Naval Ships would be a great addition to cargo and passenger ships as well.<iframe width=" 480" height="270" src="https://www.youtube.com/embed/K4OtS534oYU?feature=oembed" frameborder="0" allowfullscreen="allowfullscreen" style="letter-spacing: 0.01rem;"></iframe>&nbsp;Hyperloop Transport System:&nbsp;Hyperloop, an idea conceptualized by Elon Musk, is a transport system that is designed to carry people or cargo from one destination to another via a tube at a speed more than 700 mph. Along with the rest of the world, this technology has also caught the attention of Prime Minister Narendra Modi and the Chief Minister of Maharashtra Devendra Fadnavis. In February 2018, they&nbsp;signed an agreement with Sir Richard Branson, founder of the Virgin Group and the chairman of Virgin Hyperloop One, to develop a hyperloop route between central Pune, New Pune International Airport, JNPT Port and Pune’s economic and industrial zones. The Hyperloop One will help facilitate quick transportation of palletized cargo and lightweight cargo between the port and industrial zones in Pune. According to&nbsp;<a href="http://indianexpress.com/article/technology/tech-news-technology/mumbai-pune-virgin-hyperloop-one-project-everything-you-need-to-know-5069402/">reports</a>, the proposed hyperloop will provide benefits like reducing accidents, socio economic, savings in time and operational cost worth USD 55 billion over a time period of 30 years. It will also help reduce greenhouse gas emission by approximately 86,000 tons/year, and lessen the traffic load on the connecting expressway. In addition to all these benefits, as Virgin Hyperloop One said on the occasion of the launch, the hyperloop will cut down lead times and help build a leaner and more efficient supply chain.<iframe width=" 480" height="270" src="https://www.youtube.com/embed/OBuVkQIy7eU?feature=oembed" frameborder="0" allowfullscreen="allowfullscreen" style="letter-spacing: 0.01rem;"></iframe>&nbsp;Smart Ships: We have smart gadgets, smart homes, and smart cities, then why should ships be left behind?&nbsp;Ships are set to become smart, tech-savvy, and autonomous soon. In fact, the first smart vessel Yara Birkeland&nbsp;is planned to be launched this year. It is predicted to become fully autonomous by 2020.Automated ships will add a technological edge to the shipping industry by improving efficiency, productivity, and carrying capacity. Since these ships will be remotely managed, the fear of loss of lives of crew members at sea will be eliminated and in a way it will also change the profession.<iframe width=" 480" height="270" src="https://www.youtube.com/embed/5VBD7hVRhx0?feature=oembed" frameborder="0" allowfullscreen="allowfullscreen" style="letter-spacing: 0.01rem;"></iframe>&nbsp;Blockchain Technology: The blockchain technology is now no longer limited to bitcoins. It is being explored by various industries to manage, transfer, and store data in a safe and secure manner. Shipping is also among the industries exploring technology to add efficiency to processes and integrate the supply chain from start to end. The system based on blockchain technology will make it easy to transfer data and track cargo in real-time till it reaches the final destination.Augmented Reality: AR is another technology that can add immense value to the shipping industry. It can optimize cargo planning, aid maintenance and inspection, navigation, connect global teams, and also help in creating awareness about the industry which is not easily accessible to people not connected to it. For example, very rarely does a person not in the industry get to visit a container ship or for that matter the port. AR can make it possible to provide outsiders with a view of the industry. Port360, a virtual tour of the Port of Rotterdam, is one such example of this technology being used for connecting with businesses and also educating people not connected to the world of shipping about the port and how it operates.<img src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/0faa2f99f63fb9e86c4735679a43cb79/BotlekPernis_2.jpg" alt="Port of Rotterdam" class="center" width="" style="letter-spacing: 0.01rem;">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Image source: Port of Rotterdam.&nbsp;Click&nbsp;here to take the tourThese innovations are just the tip of the iceberg. Shipping is changing and the speed at which technology solutions are being created for the industry, it would not be wrong to term this period as a rebirth of one of the world’s oldest industries. And, we’re proud to be a part of the technology revolution that is transforming the shipping industry.

Shipping Tech Revolution: 5 Technologies

Technologies Transforming the Shipping Industry: Innovations & Future Trends

Launch of a New Consolidated Shipping Line - Ocean Network Express
1st of April 2018 marked the entry of another large container shipping line &ndash; Ocean Network Express (ONE), formed by integrating the businesses of NYK, MOL, and &ldquo;K&rdquo; Line.
The three companies have jointly invested USD 3 billion in the integrated business with 38 per cent of the share held by NYK, and the remaining 62 per cent split equally between MOL and &ldquo;K&rdquo; Line.
According to a press release, through the joint venture, the Japanese shipping lines will be able to provide better services, offer competitive rates, and optimize the utilization of their shared fleet of 230 ships having a carrying capacity of 1,440,000 TEUs. It will offer services to 100 countries, covering more than 200 major ports via 85 services.
An&nbsp;<a href="https://www.seatrade-maritime.com/asia/maersk-tankers-splashes-out-300m-nine-mrs-shi?highlight=Ik9jZWFuIE5ldHdvcmsgRXhwcmVzcyI">article</a> article in&nbsp;Seatrade Maritime News mentioned &ldquo;low oil prices, sluggish cargo demand, oversupply of trade capacity, and container freight rates at historic lows&rdquo; as the reason given for consolidation by MOL, NYK, and &ldquo;K&rdquo; Line. According to a&nbsp;<a href="https://splash247.com/ocean-network-express-jeremy-nixon-ready-april-one/">report</a> in The Loadstar,&nbsp;the newly formed company will be able to save costs amounting to USD 440 million in the first year of operations and almost double the savings going forth.
While we will only know at the end of the fiscal year how much of the estimated cost saving target has been achieved and whether the investment of USD 3 billion translates into improved bottom line, for now the merger seems to be working for the Japanese shipping giants. After the consolidation, ONE has emerged as the 6th largest container shipping line in the world. This puts it in line with the current reigning companies in container shipping - Maersk, MSC, CMA CGM, COSCO, and Hapag-Lloyd.
Other major mergers and acquisitions (2014 &ndash; 2017)
The shipping industry has seen many strategic mergers and acquisitions throughout its history. This trend has re-emerged after a hiatus of almost 7 &ndash; 8 years. In fact, since 2014, the industry has been witnessing a flurry of business consolidations in the form of joint ventures, alliances, mergers and acquisitions led by some of the top global container shipping lines.&nbsp;
Some of the major mergers and acquisitions during this period that have created new synergies in the industry are:
2014&nbsp;
<ul>
<li>Merger of Hapag Lloyd and CSAV's container business</li>
</ul>
2015&nbsp;
<ul>
<li>Hamburg S&uuml;d's acquisition of CCNI&rsquo;s container business</li>
<li>PIL's acquisition of Marina Express Lines</li>
</ul>
2016
<ul>
<li>Merger of Cosco Group and China Shipping. The merged entity has been rebranded as&nbsp; Cosco Shipping Holdings Co.</li>
<li>CMA CGM SA's acquisition of Neptune Orient Lines Ltd.</li>
<li>MOL, NYK and &lsquo;K&rsquo; Line announce business integration. Ocean Network Express (ONE), the new entity formed from the merger starts its operations from 1st April, 2018.</li>
<li>Maersk Lines' acquisition of Hamburg S&uuml;d. Hamburg S&uuml;d continues to operate as a separate brand after the acquisition.&nbsp;</li>
</ul>
2017&nbsp;
<ul>
<li>Hapag Lloyd's acquisition of UASC</li>
<li>Cosco Shipping's offer to buy OOCL. OOCL to continue to operate as a separate brand after the acquisition.&nbsp;</li>
</ul>
Source: joc.com
According to industry analysts, this is an effort by shipping lines to protect market share, enter new markets, optimize space utilization, and control operating costs. 
New Ocean Alliances &ndash; Another effort at business consolidation
In 2017, the industry also witnessed a restructuring of the Ocean Alliances. Partnerships that emerged after this reorganisation have further consolidated the industry, putting a major chunk of the market share in the hands of a few select container lines. Currently, according to the rankings on Alphaliner, more than 80 per cent of the container shipping market is controlled by the top ten shipping lines. Among them, 68 per cent of the container business is controlled by shipping lines holding the first 6 positions namely &ndash; Maersk, MSC, CMA CGM, COSCO, Hapag-Lloyd, and ONE.
<img class="center" src="https://prod-cogoport.s3.ap-south-1.amazonaws.com/6d0d10d31e8665df819de4dd0e84867a/Cogoport_M%26A%20Article_R1-02.png" alt="Container Shipping Line's Market Share" width="">
Source: Alphaliner.com
Impact of M&amp;A on the Industry 
While world markets and other industries seem to be expanding globally with new players entering the markets, the shipping sector seems to be doing just the opposite.
Looking at how the industry is consolidating, it raises concerns regarding survivability of smaller or independent operators in the business. Would they eventually be driven out of business &ndash; by way of acquisition by a market leader or by becoming uncompetitive like Hanjin Shipping in 2016?
This trend also raises a question on the market structure of the industry post all possible alliances have been formed. Will the business integration lead to trade route monopolies or at best an oligopoly market, thus limiting options available to shippers?
Shipping lines are citing reducing operational costs and utilising overcapacity as the main benefits of combining their businesses.&nbsp;
But, will these mergers and acquisitions really help them improve their operating margins, deliver the profits that the container&nbsp;shipping&nbsp;industry has been striving to achieve after the global recession in 2008? &nbsp;
A case in point is Hapag Llyods' acquisition of CSAV and UASC. The company&rsquo;s merger with CSAV in 2014 and its acquisition of UASC in 2017 has started to show results. An <a href="https://shippingwatch.com/carriers/article9680626.ece">analysis</a> by SeaIntel Maritime Analysis, shows that the German Carrier has lost out on efficiency by 11% with regards to volume of containers handled and number of land-based employees in 2017. Analysts cite the two mergers for the drop in efficiency.
While Hapag Lloyd is expecting a gain of USD 800 million as a result of the two mergers, according to the article in Shippingwatch it will come at a cost of cutting down manpower in the acquired companies.
Similarly, CSAV, Hapag Lloyds' major shareholder has also reported a loss of USD 201.4 million after the holding company&rsquo;s acquisition of UASC.
Results such as these raise doubt on the utility of mergers and acquisitions.&nbsp;
While this is just one example, soon results of other companies who have taken the M&amp;A route to increase profitability and improve service offering will be available.&nbsp;
Till then, the trade will have to wait and watch to see if the consolidation will have the desired impact on container shipping industry and help it weather the low and high tides of international trade
&nbsp;

Merger & Acquisition: Cure for Container Shipping

Mergers & Acquisitions in Container Shipping: Industry Consolidation & Impact

Supply chain has seen
tremendous transformation in the last decade. A lot of this transformation can
be credited to digitization. By introducing advanced technology in
the supply chain cycle at various crucial stages, work has become efficient and
cost effective. Digitization
and The Shipping Industry Supply Chain Sea transport accounts
for 90% of the trade. Shipping is complex in nature. The industry suffered
greatly due to the&nbsp;<a href="https://www.spiegel.de/international/business/that-sinking-feeling-global-crisis-hits-shipping-industry-hard-a-594710.html">global financial
crisis of 2008</a>. It is still playing catch up. The established way of
managing the industry supply chain does not seem to be profitable anymore. Understanding
the need for change and to reinvent itself, the shipping industry has started
to open its doors to digital disruption. It is now working towards creating a
digital supply chain. A global&nbsp;survey titled “Competitive Gain in the Ocean Supply Chain: Innovation That’s Driving
Maritime Operational Transformation”, conducted by Cargotec’s Business
Performance Innovation (BPI) Network and Navis and XVELA, highlights the
industry’s changing attitude towards digital.&nbsp;The respondents - who are in some
capacity or the other related to the shipping industry, pointed out the areas
which need improvement and can benefit from use of better technology. According
to the survey, the five areas that the industry needs to work on are - carrier to terminal coordination, supply
chain visibility and information sharing, terminal operations, cargo flow
visibility and predictability, and coordination across carrier alliances.Some of these issues
are being addressed.For example, earlier,
once shippers had handed over their shipment to the shipping line, tracking its
location was not easy. At most, they could get an update from the shipping line
on the location of their shipment when the ship called at a port. But now,
advanced technology has made it possible for them to get&nbsp;<a href="http://gpsworld.com/shipping-container-tracking-on-verge-of-big-increase/">real-time information</a> through a container GPS
tracking system on the location of their shipment. They can track the shipment
on their own. Process automation is
another area that shipping lines are exploring. Inventory management across
locations and providing freight quotes and shipment booking online are some of
the processes that are going digital. The industry has also
caught the fancy of the global start up world. There are start ups that are
working on managing documentation, offering&nbsp;<a href="https://www.cogoport.com/">freight comparison</a>, integrating different modes of
transport, and aiding customs clearance. While changes are
being implemented, digital adoption is slow and it is not yet uniform across
the industry and does not provide a common platform for all the parties
involved. Will Digitization be Beneficial for the Trade? Mostly, yes. It will
provide a solution for some problems and may not help address some others. There
are&nbsp;<a href="https://www.lloydsloadinglist.com/freight-directory/news/Digitalisation-‘no-panacea’-for-vessel-supply-demand-imbalance/68259.htm#.Wf9l_K2B1mA">doubts</a> that digitization
will not help resolve two of the main pain points of the industry – supply
demand imbalance and optimum vessel utilization. But, other simpler processes
and issues do stand a chance to improve with digitization. According to a&nbsp;report by Accenture, if the
industry can “standardize” its systems and processes, it will be able to create
an online value proposition for its customers. This standardization coupled
with digitization has many benefits for both the customer and the shipping
lines. Some of the main benefits of going digital are: 1. 
Time and Transparency:
A
digitized process has to be standardized, else it does not work.
Standardization helps create transparency in the system. It reduces the scope
for human errors, manipulation of prices and inventory. Digitization will
ensure a speedy completion of tasks. 2. 
Documentation
Management:&nbsp;Documents
are a major part of shipping. Maintaining multiple documents and filing them
takes up both time and space. Taking the process online will help save on both.
In future, it can also help create an integrated documentation platform
that can be accessed by all the parties (exporter, importer, shipping lines,
ports, banks, storage) involved in the transaction. Thus, paving the way to a
paperless system. 3. 
Door – to – Door
Tracking:
New technology is making it possible to track containers on a real time basis.
This will go a long way in helping customers provide updates to their
business partners and plan further logistics. 
4. 
Improved Analytics:&nbsp;Availability of data
from all touch points and tools to analyze that data to help make better
business decisions is one of the main offerings of advanced technology.
Shipping lines can use data collected from various sources to offer better
services, plan new trade routes, and allocate space. 5. 
Better Operational
Integration:&nbsp;Transporting
a shipment from one location to another involves participation of different
modes of transportation and handling at different touch-points. If all of the
services can be integrated, it will help provide a seamless experience to the
shipper and reduce loss arising out of delays and operational inefficiency for
the service providers. It will also help various service providers – ports,
road &amp; rail transporters, storage, and shipping lines to plan better and
ensure maximum utilization of their space and equipment. 








Going digital can
help the shipping industry become efficient and reduce cost for certain
processes. But, the benefits from these changes can be reaped if the industry
as a whole adopts new technology.

The Digital Supply Chain: Benefits for Shipping

Digitization in Supply Chain: Benefits, Challenges & Implementation

Ocean freight is the most common mode of transport that importers and exporters use. A full 90% of everything is, in fact, shipped by ocean freight and sea freight. Everything around us from what we eat, wear, seat and touch been transport. Cogoport is about empowering each and everyone choice.<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>Started in India, Cogoport helps coordinate the complexity required to move freight across varied network of logistics asset owners. As, no company is big enough to have all the assets required—trucks, container ships, trains, warehouses, and more— multiple asset owners.For every element of international cargo, the process would include customers&nbsp;having to find a truck in both countries, booking freight across the ocean, passing through customs on both sides of the ocean, storing goods in warehouses, and finally arranging the final delivery.On top of that, competitive rates have to be secured and the pricing needs to be clearly known to the end client, to make sure it’s plausible. For a traditional freight forwarder, all of the complex coordination is done using the conventional modes like phones, emails, fax machines, and physical pieces of paper, which are a hassle in itself. To date, there has been more take up of tracking technology in air freight than ocean or sea freight. So, how do we end this extremely fatiguing game?Cogoport is the solution!<img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px">We are improving experience by bringing in softwares, not only promoting automation but also improving the user experience for customers moving freight, subsequently providing transparency, the most necessary element. As a result, our online dashboard gives customers more visibility and control over their structured supply chain than ever before, with transparent pricing and quick tracking.We help in lowering transaction costs and committing fewer errors, thanks to software-driven automation that augments human capabilities. Furthermore, we build specialised softwares, as we have a dedicated team of engineers that strives continuously to develop quality products best suited for our customers and serve them better.Cogoport promotes swiftness by bringing together human expertise and its fully online platform, with instant rate comparisons and live tracking, thereby providing complete transparency to ensure a smooth freight forwarding. In only a couple of months, we have become the most favourable to do business with, in this industry. We are not only making ocean freight hassle-free, but are preferred because we are quick and affordable. We are on the track to win as we have mastered not only the logistics behind ocean freighting but also, most importantly, the experience! We innovate to make you successful.

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