We accept

Export Cycle OF ANY Shipping Series Economics Essay

  4. RESEARCH Way:
  5. Export Cycle OF YOUR Shipping Line
  6. Factory stuffing:
  7. ICD stuffing:
  8. CFS stuffing:
  9. Last but not the least payment is accumulated from the concerned shipper.
  11. Ї
  12. Ї
  13. Ї
  14. Ї
  15. Ї
  16. Ї
  17. Ї
  18. Ї
  19. Ї
  20. Ї
  21. Ї
  22. Ї
  23. Ї
  25. Containers Completed:
  28. Present infrastructure
  29. Growth
  30. EXIM traffic
  31. Future Terminal Development plans
  33. Facilities at a dry out port :
  34. Export procedure :
  35. Types of shipping bill:
  36. Type of bill of entrance:
  37. Concept of customs :
  38. SHIPPING Insurance policy OF Producing COUNTRIES
  39. A coverage Environment Conducive to the introduction of Shipping Marketplaces:
  40. Policy Key points:
  41. Market Gain access to Policies-National Regulations and GATS:
  42. Maritime Transport-
  43. Port and Auxiliary Services:
  44. Multimodal carry:
  45. GROWTH Potential clients OF INDIAN SHIPPING
  47. What is Multimodal Transportation?
  48. Multimodalism is thus a "system" approach to the vehicles of goods from the idea of origins to its destination that will reduce or elimination interruption in the continuous motion of goods.
  49. Advantages of Multimodal Transport
  51. Shipping
  54. Rail and roads
  55. Warehousing
  56. Customs, Insurance and Finance

Shipping Industry is definitely at the mercy of vagaries of different factors, such as, sea monsoon, politics and cost-effective factors etc. Nowadays when the entire world economy is having recession, its all the more necessary to review this integral line of transportation, which connects the world through water.

The purpose of the job undertaken was to study the issues of the upcountry exporters with particular reference to ICD. When in overdue 70's and early on 80's, the idea of "containerized cargo" and "delivery at doorstep" started getting popular around the world, a need was believed to set up an Inland Container Depot to cater to the needs of trade and industry of the Northern part of India. With this track record at heart and with a view to providing the facilities of vehicles and Traditions clearance of transfer and export cargo at the doorstep of importers and exporters, an Inland Pot Depot was set up at Pragati Maidan in 1983 under the control of an Helper Collector of Traditions. Indian Railways were nominated the custodian of the products. In 1984, a Box Freight Train station (CFS) was also opened at Patparganj, which was an extension of ICD, Pragati Maidan, and Central Warehousing Company was nominated as its custodian. This was a new experience for the trade and industry of North India and the establishment of ICDs captured their creativeness. Soon, the importers/exporters who previously used to clear their goods from one of the slots, started out using ICD: Pragati Maidan and CFS : Patparganj for the clearance of their transfer and export goods. In 1988, a open public sector venture, M/s. Container Corporation of India Ltd. (CONCOR) was setup which overran the tasks of custodian from Indian Railways for ICD: Pragati Maidan. Within a decade of its inception, the volume of work at ICD had increased to such an degree so it became difficult to handle it at Pragati Maidan. It was then determined (in 1983) to switch the venue of ICD from Pragati Maidan to its present location i. e. at Tughlakabad. In 1995, the CFS : Patparganj was upgraded to a full fledged ICD with C. W. C. continuing as custodian of the goods. Movement of containers by highway was also permitted in addition to the movement of pots by rail through Tughlakabad.

Almost all commodities are being brought in through ICD, major items being machinery, electronic goods, clear plastic, chemicals, automobiles and parts and metal and metallic scrap. On export part major items being exported through ICD are leather apparel and leather products, readymade garments, machinery, agricultural products especially rice

The task was majorly centered on ICD and the problems encountered by the exporters with regards to the ICD.


To study the problems of the upcountry exporters with particular refrence to ICD

To review the workings of the analysis.

To study the role of ICD in India.

To analysis the role of Multimodal Transport Operators in the International Trade orders.



The data was accumulated from major and secondary sources.

Primary data was collected through interactive consultations with exporters & importers, Export & Transfer managers, Commercial managers, Managing Directors, Standard Managers, Logistics professionals and Supply string managers.

Secondary data was accumulated from internet, EXIM newsletter, Libraries and FIEO's listing.


The approach implemented was review of exporters and interactive periods with various people. The presidential areas that were surveyed include Okhla Industrial area, NOIDA, Udyog Vihar, and Global Business Recreation area etc.


Research musical instruments used were interactive consultations with various executives.


Personal interviews were used to collect information because they are more traditional and the researcher may easily know and explain the attitudinal patterns of the respondents, which cannot be done by using other study methods



There is no doubt that the challenges and opportunities facing the container liner shipping and delivery business increase as every year moves. As the years after 1999 exceeded half the way the future of those companies involved in providing container move services seemed to hinge on two significant opportunities or problems' protecting cost gain and satisfying the need of customers. The consensus is that inability to seize either or both these opportunities will eventually condemn companies, whatever their specialist market or global coverage to commercial oblivion in a trading environment that all year becomes ever more competitive.

The first analysis of the containerization international, publicized in-may 1983 entrants which do not figure in the latest 1998 rating, are Wilhelmsen Lines, Polish Ocean Lines, Hoegh Lines and Superstar Shipping, which unlike US Lines, remain operating.

Number one shipping series, Maersk was positioned fifth in 1983, Mediterranean Transport Co. , fourth in the entire year was nowhere to be observed. Of course, in the past Nedloyd and P&O (then called OCL) were outlined individually, as were APL and CGM, as the companies, that have recently attained them, respectively NOL and CMA, didn't even make the very best 20 in 1983. Neither performed Boats, Safmarine/CMBT, nor any of the South Korean service providers.

What was also different was the amount of non-cellular vessels and changed into cellular boats 1983 stop companies had deployed. Only just over half their fleet in terms of TEU capacity were purpose-built, fully cellular boats. Also, almost all of their boats were less than 2, 000 TEU, the significant exception being those folks Lines. It acquired 14*4, 4, 148 TEU boats in the pipeline.

Capacity growth is largely attributable to expansion by leading players. For, such is the maturity of the marketplace therefore high the price of entry that the days of major new functions showing up on the world are long since eliminated. The problem of underutilization of assets also exists. This problem doesn't fluctuate only from trade to operate, but also from road segment to route segment. Similarly its impact on pricing is patchy. Box liner services' rates continue steadily to drop in real terms in many market segments, despite considerable advancements in the particular level and range of services being offered by carriers. Some experts claim that rate levels will soon begin to edge up in certain trades as employment opportunities seed to recoup the substantial investment they may have manufactured in vessels, containers and information systems. It is argued that there is a limit to the length of time they can continue steadily to endure in such limited margins.

However, a rise in rates presupposes a level of discipline among carriers, which the industry has hardly ever shown, often preferring instead to secure volume by purchasing market show. And with the seminar system in terminal decline in the face of shipper and regulatory antipathy, there are few constructions still left to encourage price willpower with in the industry.

Carriers will also continue steadily to secure cost gain by forming proper alliances with other operators. Such partnerships are actually a recognized means of achieving greater results for companies and their customers. Of all trades such preparations are now the norm and barring any regulatory ruling which can impede their progress they will continue steadily to flourish.

One of the benefits of such alliances is that thy enable members o enhance the coverage and service frequency they an offer their customers. Such things to consider assume greater importance as lines seek to become more responsive to the needs with their customers. Increasingly providers are becoming less asset-focused and much more customer-driven. This presents a host of opportunities for a business which includes only relatively recently recognized it is in the service business. For the global providers the challenge is to believe globally, but at the same time act locally, by giving services which are appropriate for local as well as global shipping and delivery needs.


Contract of shipment

Booking space in a dispatch.

Getting confirmation from the agent.

Picking up of the cargo (according to the terms of the shipment).

Warehousing, if required.

The carrier issues the bill of lading when he will get the products.

Ones the dispatch sails the professional informs the agent.

Informing the principal about the shipment.

Delivery in line with the terms of shipment.

Export Cycle OF YOUR Shipping Line

Shipping line negotiates freight terms, etc with your client and after finalization of offer; client agrees to make use of MISC for export shipment. The client then approaches the Transport Line. Procedures office/counter-top at the ICD for the allotment of the container. Pot is allotted to the client upon the display of a copy of shipping costs/invoice. A couple of three methods of operation.

Factory stuffing:

If the container is being taken up to the factory for stuffing, the client organizes his own vehicles and takes out the pot for house stuffing.

After stuffing, the central excise sets a seal in the pot and Series seal is also put by the shipper.

The container is transferred to ICD, where a customs inspection takes place, and after inspection Traditions seal is put.

After the closing, the container moves to the railhead for even more motion to Nhava Sheva.

ICD stuffing:

The cargo is brought to the ICD by the shipper and a box is allowed based on shipping expenses a pot is allotted.

Cargo is stuffed at ICD and after the seals are placed in the container, the container moves to the railhead for further movement to Nhava Sheva.

CFS stuffing:

The cargo is taken to the CFS by the shipper.

After the traditions formalities, the container is stuffed by the delivery line.

After stuffing, a line seal and customs seal is put, and the box is transferred to ICD railhead for further activity to Nhava Sheva.

Many a times the shipper stuffs the box in his manufacturing plant and rather than bringing it back to the ICD, hands it over directly to Nhava Sheva. Customs inspection of seal is done at Nhava Sheva.

Last but not the least payment is accumulated from the concerned shipper.
























PUTTING OF Range & Traditions SEAL








When in overdue 70's and early on 80's, the concept of "containerized cargo" and "delivery at doorstep" began getting popular the world over, a need was felt to set up an Inland Pot Depot to cater to the needs of trade and industry of the Northern part of India. With this qualifications in mind and with a view to delivering the facilities of vehicles and Customs clearance of transfer and export cargo at the doorstep of importers and exporters, an Inland Container Depot was setup at Pragati Maidan in 1983 under the control of an Associate Collector of Customs. Indian Railways were nominated the custodian of the products. In 1984, a Container Freight Train station (CFS) was also opened up at Patparganj, that was an expansion of ICD, Pragati Maidan, and Central Warehousing Company was nominated as its custodian. This is a fresh experience for the trade and industry of North India and the establishment of ICDs caught their creativity. Soon, the importers/exporters who earlier used to clear their goods from one of the slots, began using ICD: Pragati Maidan and CFS : Patparganj for the clearance of their transfer and export goods. In 1988, a public sector enterprise, M/s. Container Organization of India Ltd. (CONCOR) was setup which overran the duties of custodian from Indian Railways for ICD: Pragati Maidan. Within a decade of its inception, the volume of work at ICD had risen to such an extent that it became difficult to take care of it at Pragati Maidan. It had been then made a decision (in 1983) to switch the venue of ICD from Pragati Maidan to its present location i. e. at Tughlakabad. In 1995, the CFS : Patparganj was improved to a complete fledged ICD with C. W. C. continuing as custodian of the products. Movement of containers by road was also permitted as well as the movement of pots by rail through Tughlakabad.

ICD : Tughlakabad (TKD) caters to the need of importers and exporters located in Northern India. It is situated near Okhla Industrial Area and is also distributed over 44 hectares of land. It includes three storied Administrative stop housing Office buildings of Traditions, CONCOR, Bank, Shipment Lines, CHAs and Surveyors. Four full length rail lines are available in the Customs area which bring the containers by coach from Gateway slots such as Mumbai, Nhava Sheva, Chennai, besides providing the containers by street from other slots such as Haldia, Calcutta and Kandla, etc. ICD:TKD is equipped with most modern facilities such as rail mounted gantry of 40 metric bare lifting capacity, plastic tire diesel power cranes, billoties and lift up pickup trucks, etc. two covered sheds, one for transfer and another for export with a total area of 16, 000 sq. mts. has been provided in the Traditions area for stuffing and de-stuffing of import and export goods. With these ultra-modern facilities, ICD:TKD, New Delhi, is rolling out into the major hub of multi-modal centre in the Indian sub-continent. Pots designed for ICDs: Patparganj, Faridabad and Gari Harsaru are first helped bring at TKD by rail and then transported to their particular destinations.

Almost all commodities are being brought in through ICD, major items being machinery, electronic goods, clear plastic, chemicals, automobiles and parts and steel and metal scrap. On export side major items being exported through ICD are leather clothing and leather products, readymade clothes, equipment, agricultural products especially rice

The ICD Tughlakabad is the most significant dry interface in South Asia and the key centre for importers and exporters of the Northern Region. This ICD started out functioning at Tughlakabad in 1993, prior to which it was located at Pragati Maidan. The Custodian of the ICD is Box Corporation of India Ltd (CONCOR), which is the general public Sector Executing. CONCOR are also the providers, through rail, of import and export storage containers between ICD Tughlakabad and the Gateway Plug-ins of Mumbai, Nhava Sheva and Chennai. This ICD is the focal Port for the ICDs at PPG, Faridabad and Garhi Harsaru and the activity of the containers between the ICDs back and forth takes place by highway. The Customs area homes two protected Sheds, one for transfer and the other for exports. The primary CONCOR building homes the administrative staff of Traditions and CONCOR as well as the office buildings of CHAs and Transport lines. The personnel working at ICD Tughlakabad is the regular Departmental staff and not on cost recovery basis. The traffic as well as the revenue from this interface has been increasing over the year that can be observed in the charts below:

Containers Completed:


Worldwide, the containerization of cargo has progressively been gaining popularity because of the several advantages it offers to manufacturers and exporters. Some of these are the following:

Lower transit time

Safety of cargo from pilferage and in-transit damage

Ability to avoid sales taxes and Octroi checks at each condition border crossed.

In India, however, the proportion of total internal trade that is containerized continues to be quite insignificant. The full total annual volume of interior trade is predicted to be 650 million tonnes, of which 250 million tonnes are relocated by rail and the rest of the 400 million tonnes by road. The volume of containerized cargo movement is significantly less than 5 million tonnes (which 3-4 million tonnes are completed by the railways). There is certainly thus substantial potential for development in the containerization sector.


The Container Company of India, or CONCOR, was founded in 1987, under the Ministry of Railways. Its explained objectives were to promote containerization and in that way boost India's local as well as international trade. CONCOR is the monopoly company for containerization via railways.

Present infrastructure

Since taking over the Railways pot controlling facilities, CONCOR has developed a huge network of pot terminals at leading locations across India. It offers 31 Exim terminals. While most CONCOR terminals are rail associated, road is preferred sometimes depending on local conditions. (E. g. : some hubs like Tughlakabad are given by satellite locations like Agra and Panipat by highway).


As a pioneer in this field of containerized travel, CONCOR is continuing to grow impressively since it was set up in1987. The cargo throughput is continuing to grow from only about 74, 890 TEUs in 1990-91 to over 8, 01, 000 TEUs in 1998-99. Within the first a decade of its living, its throughput has seen an average expansion of 20% per annum.

EXIM traffic

Only about 30% of port traffic hails from and terminates at places within 300 km from the slot. The remaining 70% is to and from the hinterland, representing a potentially large demand for CONCOR's services. CONCOR provides transfer linkages between slots and the hinterland. Regular container trains are set you back and from plug-ins to CONCOR terminals in the hinterland. A few of these terminals are also dished up by street.

Future Terminal Development plans

Plans are afoot to go on a large-scale terminal development programme. Region-wise plans have been drawn up. The 31 existing Exim terminals should be increased to about 50 by 2002-03. CONCOR would then be situated in almost all cargo receiving/generating areas of the huge hinterland. Terminals would also be widened. Existence in the hinterland as also in the interface towns would tie up up both end-points of the shipment option, facilitating control over the entire logistics chain.

3800 high-speed chiseled wagons are being procured by making use of a US$94 million World Bank loan. These wagons will be placed to use in all EXIM streams and eventually in domestic streams. As these box trains will run at the speed of mail/express trains, the transit time between plug-ins and hinterland will be substantially reduced.


ICD is a common individual facility with public utility authority position, equipped with preset installations and offering services for handling and temporary storage of any sort of good (including storage containers) transported under Traditions Control and with Customs and other agencies qualified to clear goods for home use, warehousing, momentary admission, re-exports, temporary safe-keeping for onward transit and out right exports.

Facilities at a dry out port :

Export and transfer warehouse: They are used for international trade and are located near dry jacks. They are provided transit storage space facilities for goods awaiting onward motion; separate procedures for break large, product packaging inspection of goods, marking, etc.

Container managing equipment for ISO pot.

Container garden (storage host to containers)

It is provides space of offices of the shipping and delivery agents, traditions clearance and freight forwarder brokers, banks, highway vehicles providers(transporter), packing service, loan consolidation service, fumigation, weightage of cargo and marshalling and train information service etc.

Export procedure :

Export of goods from India moving in storage containers is usually done through highway and rail from ICD to Gateway plug-ins.

Types of shipping bill:

White shipping expenses (for work free goods)

Green shipping monthly bill (for duty downside)

Blue shipping charge (for duty entitlement passbook structure)

Yellow shipping monthly bill (for eatable goods. It is determined by goods)

GRI (Make sure Remittance Varieties)

This is ready in duplicate, the initial is retained by the customs and the duplicate is sent to the RBI by the customs after handling of documents and finalization of transport bill.

Type of bill of entrance:

White charge of entry for home ingestion goods.

Blue expenses of admittance for goods should be deposit in a customs bonded warehouse

Green invoice of accessibility fro goods are cleared from the customs bonded area

Yellow monthly bill of accessibility for eatable goods.

Concept of customs :

Custom procedure through out the world is similar so it is a valuable e source of assistance of supervision involved in the modernization of Country wide Traditions Legislation. Hence allowing easy identification of out of date procedure

Customs Act as a requirement of a financial promise to be proven in the transit country by the party in charge of transit procedure to meet possible promises by the customs.

Customs also acts as a watchdog as it in physical form examines the goods being exported or imported out/in the united states for his or her quality and also appropriateness.

SHIPPING Insurance policy OF Producing COUNTRIES

Globalization of trade and professional creation on the range presently observed isn't only affecting maritime transportation in various ways, but has also been decisively shaped by shipping trends. Globalization in the widest sense has significantly improved the demand for transfer and related services and has pressured all vehicles companies to better adapt the services rendered to certain requirements of the trading community. At the same time, important technological developments in maritime transport created the precondition for the enlargement of world trade predicated on an intensified international division of labor.

Changes in the provision of shipping services have been brought about by market driven makes, but their realization was basically made possible through insurance policy reforms. Countries have relaxed or removed protecting legislation and also have started a process of renegotiating or renouncing bilateral contracts providing for market gain access to limitations. In parallel there's been a general move towards privatization of state-owned shipping companies and the starting of the market for transport and related services to private sector competition. These plan reforms have been the greater remarkable as shipping has been generally considered a proper industry and lines a national property. Liberalization of market access has led to increased competition among shipping and delivery lines and also to greater commercial overall flexibility in regards to to capacity management, costing and accessibility into trade routes. At the same time, however, liberalization has also provided the foundation for concentration operations, which perpetually change the framework of the industry.

A coverage Environment Conducive to the introduction of Shipping Marketplaces:

In order to ensure that development targets are being met, Governments must give higher main concern to move issues, must review and revise the regulatory framework to allow greater involvement of the private sector, introduce reform actions to make providers of travel service more responsive to user needs, streamline administrative techniques, introduce something of transfer performance signals, promote the use of it and improve training programs in this sector. On the international level, it is important that insurance policies and regulatory regimes be harmonized and Governments be aided in devising the required policy measures required to ensure that transportation resource capacities in producing countries be created or strengthened also to ensure that investors be placed in a position to effectively take benefit of carry opportunities offered in liberalized and globalized ocean transport markets. While general frameworks are being elaborated at the global level, it is also important that parallel initiatives are pursued by governments towards market and coverage reforms in the context of local integration agreements.

Policy Key points:

Problems experienced by expanding countries associate both to supply-side dynamics and also to safeguard of users' hobbies in transport marketplaces.

In many growing countries transport and travel were regarded as strategic industries contacting for public possession in line with generally pursued economical policies. In order to raise the efficiency of the sector in general, programs of commercialization, privatization and liberalization have been set in place. These programs are a fundamental element of an insurance plan reform program which involves a transfer in policies from market access restrictions to a fleet development insurance policy based on conditioning of commercial capacities of nationwide service suppliers and also to support guidelines increasing the competitiveness of the maritime services sector. This change is important to notice, as it underlines the actual fact that shipping insurance policy isn't just a subject of market gain access to policy. Market access is merely one facet, with others, such as procedures associated with fleet development and sector efficiency being evenly important. This aspect is specially relevant as it shows the need to complement WTO negotiations in the framework of GATS. At the same time, developing countries need high-level and specific advice both in negotiating and employing liberalization devices.

Liberalization and privatization are the two main pillars of maritime plan reform programs of expanding countries. While restructuring of State-owned companies is necessary to ensure market orientation, it might not exactly be a sufficient condition for successful privatization. Support steps need to be put in place that would provide a concrete interpretation to the idea of intensifying liberalization. These actions would purpose at improving the features of producing countries' operators to produce transport services and also to create an even playing field allowing operators to compete effectively in the new move markets.

For developing countries to gain or to maintain a significant position as manufacturers of carry services in a competitive environment, where ownership and nationality are o longer central elements, it is crucial, that competitive and exportable services be produced that can be offered within an progressively international market. In order to arrive at such a predicament it is essential that policies are being pursued that aim at capacity building and taking away obstacles for countrywide operators. These plans of competitiveness and thereby of boosting the efficiency are intrinsically linked to liberalization processes. At exactly the same time it is important that local suppliers benefit from an environment that creates a level playing field and gives them a reasonable potential for success. This dependence on a level taking part in field, however, is never to be confused with a call fro restrictive or discriminatory measures that could impede on the flexibility of choice of the users of carry services. It can, however, call for a specific amount of harmonization of the administrative and regulatory environment, such as conditions for dispatch sign up, taxation, labor movement, etc.

Modern and productive ports are necessary and powerful tools of facilitating and fostering trade and development and way more at a time of globalization of trade. Nowadays, slots must offer useful and reliable services to ships and cargo, including communication systems, paperwork and customs techniques, to permit the timely circulation of goods through the transport chain. To assist in this circulation, some countries are suffering from circulation or logistics centers in the slot areas, which are used for the storage area, preparation and change of cargo. Therefore, ports are no longer just a place for cargo exchange but are an operating element in the powerful logistics chains through which goods and goods move. An efficient move system is also a prerequisite to catch the attention of foreign immediate investment. Slots can be critical element in creating a competitive advantages for a country and for that reason Governments and slot authorities need to adopt suitable port policies to allow the country to experience this potential profit. It is of the best importance that an environment is created where Governmental and intergovernmental activities on the legislative, regulatory and institutional fronts are talked about with the inputs of most users.

Market Gain access to Policies-National Regulations and GATS:

Maritime Transport-

The successful occupation of larger vessels and fleets, be they single company fleets or joint ones in the consortia or other cooperative preparations would depend on the lifestyle of and the unimpeded access to sufficiently large cargo flows. Such flows hardly ever are present in bilateral deals but can only just rest assured by a mix of home and cross investments. Rationalization of services thus achieved requires planning security established, inter alia, over a predictable regulatory insurance policy framework. A high degree of liberalization of trade in maritime services and the lifestyle of multilateral guidelines establishing the construction within which lines operate are plainly in the eye of these providers. Similarly, the extension of activities into logistics services requires usage of inland transfer and so-called auxiliary services, either as companies or as users with guaranteed and unconditional access to such services, which can raise a great deal of opposition. The General arrangement on Trade in Services (GATS) partially addresses these issues in the sectoral arrangement on maritime transfer.

Port and Auxiliary Services:

Modern and reliable ports are essential and powerful tools for facilitating and fostering trade and development plus more as at the same time of globalization of trade. Nowadays, jacks must offer useful and reliable services to boats and cargo, including communication systems, documents and customs types of procedures, to allow the timely move of goods through the transport chain. To aid in this move, some countries are suffering from distribution of logistics centers in the port area, which are used for the storage, preparation and transformation of cargo. Therefore, slots are no more simply a place for cargo exchange but are a functional element in the vibrant logistics chains through which commodities and goods movement. An efficient transfer system is also a pre-requisite to catch the attention of foreign immediate investment. Ports can be crucial element in developing a competitive advantage for a country and therefore Governments and port authorities need to adopt suitable port procedures to allow the country to reap this potential profit. It really is of the greatest importance that an environment is created where Governmental and intergovernmental activities on the legislative, regulatory and institutional fronts are discussed with the inputs of most users. Port infrastructure improvements, for example, require a tightly coordinated partnership between your private and general population sectors. Governments should therefore dog crate a sound, market-orientated framework that will arranged the level for private sector investment and in this way delivered the "right" note to the business community on the near future span of market liberalization. World trade and international move are highly competitive and the same environment is out there in ports. To survive and prosper in such circumstances, port management needs to be adaptable, proactive, autonomous and in charge of its operational and financial performance. Ports are often an area where international market forces interact with countrywide economies and in which the ability of the general public sector to cope with them is examined. Government authorities have to steer a careful course to meet these issues in order to adopt good thing about opportunities created by international trade and technological development while taking into consideration the amount of social and monetary development of the united states.

In the interest of efficiency, there is a need for Governments to examine the institutional framework of their slots to see if today's structure is adequate fro this new environment, notably when export led development strategies are pursued. If restructuring or change must make the dock more attentive to the market, you will see a need to revise or create a thorough legal framework which might influence ports to allow better development and procedure, oriented to free market makes. Port authorities have to be pro-active, which implies a amount of autonomy, in order to experiment with an important role in fostering trade and so modern management techniques should be utilized and commercial disciplines adopted. This may improve efficiency in the transportation chain, which can lead to the get of new markets for export goods.

While these changes will accomplish the changeover from a public power to a commercial service approach in plug-ins, there are other areas where the impact of liberalization will be sensed more immediately. As regarding shipping services, jacks and auxiliary service providers that remain enjoying monopolistic positions will see these eroded and can have to face competition not only from countrywide private sector suppliers but also fro powerful multinational companies. In the specific area of cargo handling services, which include activities exercised by stevedoring companies and terminal providers, this liberalization is already occurring in a number of countries-with or with out a GATS Contract. Privatization and the liberalization of market gain access to in the provision of interface services have also been instrumental for the development of transshipment functions on the size observed today. At the same time, this happening underscores the value of an joint approach to liberalization of delivery and interface services.

With the style for mergers and acquisitions among the carriers more likely to continue, there may also be a tendency towards alliances or mergers of the global terminal providers. The coming years will see growing competition as more and more port regulators welcome private investment.

The impact of liberalization on ort functions is considerable. Not only are ports progressively being put through inter-port competition, a development detected for some time now specifically in containerized investments, but also to intra-port competition, a happening previously undiscovered in many ports. While some countries have vanished a significant way in beginning ports and auxiliary services sectors to foreign suppliers, others took a relatively more timid way. Thus numerous countries still maintain public service port operations or limit private sector participation to national hobbies.

Multimodal carry:

Market access in neuro-scientific multimodal travel is a particularly contentious issue as it pertains to establishing an insurance plan framework favoring the development of logistics services. Given the way liner delivery is develop8ing into door-to-door and logistics services, providers clearly go through the reduction or eradication of access constraints and thus at the necessity to include MT operations in the liberalization process. The difficulties encountered with this problem in the context of the GATS discussions raise doubts, however, whether multinational service suppliers can benefit from a more wide open market regime n the longer term. Resistance against intensifying liberalization of the supply of multimodal transport might prevail because of the widespread concern that this may start the inland transport sector to GATS coverage. Therefore, countries that performed make conditional commitments on multimodal carry in their draft schedules chose to limit their commitment to liberalizing the usage of these services. So far as large liner transport operators are concerned, particularly those that contain chosen to invest in inland transfer of containers rather than to subcontract inland haulage this option is rather disappointing and definately not gratifying their specific requirements.


The National Shipping and delivery Panel (NSB) has been inexistence since 1959 and has offered as a vital link between he shipping and delivery industry and the policy makers. It is a high level statutory body to recommend the Central Federal government on all matters associated with Indian Shipping and such other concerns arising from the Merchant Shipping Become the Central Authorities may make reference to it for advice. Given its broadly representative structure and depth of experience, indeed it is exclusively placed to satisfy these important roles. During most of its existence, they have played a significant role to advertise the introduction of Indian Transport by focusing the attention of Administration and other concerned agencies on several important problems encountered by the Shipping Industry and by making proposals and suggestions of their redressal. However, in recent years, I am advised the importance of the Plank has somewhat waned. The breadth and depth of the know-how displayed in the Board could certainly be made higher use of by all the concerned interests, like the Government.

Apart from the Government, I would like also to urge the shipment industry to avail of the widely representative structure and collective know-how of the Table by referring important matters of concern to it for advice and awareness. The effectiveness of the Plank is to a considerable extent dependant on the value and identification accorded to it by the federal government and industry.

The decision making procedure for the Government could be speeded up if grater weightage is given to the recommendations of the Mother board. Because of the representation of all concerned interests on it, the shipping and delivery sector, as also the worried ministries and other Specialists protracted interministerial consultations and cross-references can be obtained.

On our part, I am sure all the members of the recently constituted Panel would impart a renewed sense of excitement and purposefulness to the deliberations of the Mother board.

In today's era of globalization, liberalization of the overall economy and the WTO, Indian trade and shipment is becoming all the more important. Worldwide trade is likely to grow significantly as countries develop their comparative advantage and move away fro the self-reliance towards higher interdependence. In such a context, I am sure the Mother board can contribute significantly in creation of a conducive environment and a proper regulatory program of spurring faster development of the sector. The Panel can help not only in removal of any impediments in the way of faster growth, but also suggest appropriate incentives and policies for campaign of he transport industry.

Jawaharlal Nehru Interface is an easy growing interface with a potential to build up into a box hub interface on the Indian Peninsula. Over the last few years, it includes achieved an ever-increasing traffic throughput. The dock has adopted an ambitious development of box transshipment in american India.

About 95% of international deals in goods are migrated by sea. The initial advantage of sea transport is its flexibility and current economic climate of the range. This advantage will always continue to be, as no other function of transportation is capable of moving such large amounts of goods. Like other modes of transport even shipment has been undergoing important technical changes. It has been largely impelled by the monetary need of moving large quantities of goods by sea at competitive cost in other words, the necessity to achieve shorter transit amount of time in activity of goods in conjunction with lower freight rates. This combined challenge has infact made ships greater, lighter and faster. Ships are specially built for particular trade requirements. They are simply more powerfully propelled and achieve quicker turnaround imports. In short, greater commercial efficiency has been the principle drawing power of technological developments in Shipping and delivery.

So far as Indian tonnage is concerned, it expanded speedily till the finish of the Sixth Five Time Planed in 1985. it increased from 0. 37 Mil GT at the start of he First Five Year Intend to 6. 31 Million GT at the start of Seventh Five 12 months Plan in 1985. However, it dropped to 5. 9Million GT at the beginning of the Eight Plan. The prospective tonnage of 7 million GT for the Eight Plan was reached in 1995. The tonnage position by day is 6. 94 million GT. The stagnation in tonnage growth, which is major cause for concern, is because of variety of factors, the most dominant among them being having less a level taking part in field for this internationally competitive industry.

So far as the share of national delivery in India' international trade can be involved, it's quite common knowledge that show has been shedding continuously for the last few years. This is perhaps understandable considering that while the abroad trade of the united states has increased somewhat rapidly, Indian Transport is not in a position to keep tempo with this increas4e in terms of acquisition of additional tonnage. It is in this track record that people need to discuss the " strategy and Methodology for the 10th Plan ". The expert Group on Shipping and delivery for he 10th Five-Year Plan has suggested that preparing specific targets for the tonnage acquisition in each industries is not the ultimate way to plan for the future of Indian Transport. The group has also suggested that the role of Government should be to assist in and create opportunities for the development through pragmatic procedures in consonance with the well-tested types of adult maritime countries. The 10th plan report has already been circulated to all members.

The Indian Federal recently has considered several steps to promote the shipment industry. Authorities has placed transfer of all categories of vessels under the " available general permit ", in doing so no Price Reasonableness Qualification is required no Technical Clearance is required for vessels below 25 years of age. Indian Shipment companies are permitted to charger out their vessels to international companies without preceding approval of the federal government. In case there is sale of vessels to international parties dispatch owners are allowed to retain the deal proceeds aboard (for an interval of six months) and utilize them for fresh buys. Ship owners can liquidate only remarkable loan from the sales proceeds with no endorsement of the Division of Economic Affairs. The levy of 5% custom obligation on ships imported in to India has also been withdrawn for seagoing boats.

So significantly as international transport can be involved, coastal delivery is comparatively the cheapest t setting of travel for longer ranges. It substantially reduces the congestion on highways and on the rails. It is very suitable for the Indian seacoast, but has not been exploited due to many reasons like insufficient proper fiscal bonuses, increased manning, difficult customs procedures and lack of proper infrastructure needs for coastal investor. However with rapid industrialization, especially along the coast, coastal shipping could emerge as a major potential section of Indian Delivery.

The growth of containerized traffic has so far been quite poor credited to poor handling facilities and efficiencies in the inland carry system. With immediate upsurge in India's international trade, the level of containerization is likely to record major expansion. Indian Delivery companies should exploit this new opportunity by operation feeder vessels till Indian interface conditions improve so that thy can get large sized pot ships being controlled by global delivery companies.

The reforms initiated by the Indian Authorities have targeted at achieving faster progress through local and foreign investment funds. The enormous development in conditions of additional capacities being created along the coastline in center sectors such as thermal power, refineries, steel and concrete, requires motion of large quantities of bulk cargo. This would stimulate corresponding increase in shipping activities around the Indian sub-continent. That is expected to yield considerable benefits to the Indian Shipping Industry.

In this interconnection, Administration has constituted committee under the chairman ship of Shri Bongirwar, Chairman JNPT and the survey of the committee was already submitted to the Government.

Indian shipping will not operate in a vacuum. It runs in the highly competitive global transport market. Consequently any fiscal methods that reduces the competitiveness of Indian Delivery, act as a serious handicap. Many foreign shipping companies pay zero tax as their ships are recorded in taxes havens. Many other overseas companies pay low rate of tonnage taxes, which is incurred on basis of tonnage under command line, and is independent of the profit earned. In the light of various representations received on the need to give a level learning field for Indian Shipment Industry, the Government of India constituted a committed under the chairman dispatch of Shri Rakesh Mohan in August 2001 to look into the desirability of adding a tonnage tax for Indian Shipping and delivery and other Fiscal steps necessary to help in a steady upsurge in tonnage so that India continues to grow as a significant maritime power. It offers recommended that tax on Indian Transport Companies be on par with international shipping companies. It has also recommended that tax on income of Indian seafarers should be at par with competitors sailing under overseas flags.

As everybody knows that shipping and delivery is one sector, which is truly international, enough time has come when Indian Shipment must face tougher competition. I am sure that with an appropriate tax regime and stimulate regulations, Indian Shipping can make good progress in the coming years.


What is Multimodal Transportation?

Multimodal transfer means transport of cargo on door-to-door basis i. e. from the premises of the shipper compared to that of the consignee by several mode of travel under an individual deal evidenced by an individual transport document and through freight rate and a through liability. As the name multimodal carry includes all the possible methods of transport-road, rail, sea, air-under one going.

The Multimodal Carry Operator (MTO) assumes the duty for the execution of the agreement and serves as the principal and not as the agent of the consignor or the companies taking part in the transport functions. He makes all the intermediate agreements fro the through movements of the products from origins to vacation spot. He also assumes responsibility for lack of or harm to goods as well as for delay in delivery. The multimodal transfer system is supposed to do away with all delays and consequent costs incidental to segmented transort, which often includes several contractors concluded with different carriers on different modes of transport and different levels of responsibility accepted by each carrier.

The main feature of a multimodal move system is that whenever such a door-to-door service is planned and coordinated as a single operation, the responsibility of records and other formalities connected with the traditional segmented transfer is reduced to a minimum. Goods moving by multimodal travel are usually containerized since the same ensures greater safeguard to cargo against harm, pilferage and contamination and obviates the necessity to unpack and regional-pack the goods at transshipment points.

Multimodalism is thus a "system" approach to the vehicles of goods from the idea of origins to its destination that will reduce or elimination interruption in the continuous motion of goods.

Advantages of Multimodal Transport

The main advantages of a Multimodal Transfer System are -

Loss of their time and threat of loss, destruction, pilferage and contamination incidental to classic segmented transport are reduced to the minimum amount.

Faster activity of goods reduces the disadvantages of distance from the marketplace and of capital being tangled up from the trader's point of view.

The burden of documentation and other formalities associated with segmented carry is reduced to the least.

The resultant cost savings tend to reduce the through freight rates and the cost of cargo insurance.

The consignor has to deal with only one agency viz. the MTO in all matters relating to the activity of goods including pay out of boasts.

The through rates offered by the MTO make it easier for the exporter to discuss sales deals with foreign purchasers based on the delivered prices.

The Multimodal Transportation Document given by the MTO at an inland point allows the exporter to make a deal it with a loan company and realize the money for his exports quickly.

The use of multimodal transport helps in minimizing the price of exports and enhance their competitive position in the international market.



Under the Multimodal Move of Goods Work of 1993, duties and immunities have to be allocated openly and equitably between various links of tranportation, on one hand and shippers or importers, on the other, so as to insure that this becomes a powerful instrument for including trade logistic costs and in doing so fortify the competitive muscle of India's export products.

The shortcoming of this Act, as described by the ICC, whose guidelines for the multimodal carry documentation are extensively accepted for international trade related service deals, pertains to the liability regime, which specifies duties for cargo harm or damage. Some parts of the Take action impose absolute responsibility on the carrier beyond the range of the Hague Visby Guidelines.

The present Customs allows transshipment of cargoes only at a custom port. , notified under the Action, which does not include container freight channels. This brings about avoidable bottlenecks.

All the port-related activities such as building and functions of berths and terminals, warehouse, captive electric power plants and CFSs, handling equipment and ship repair facilities have to be thrown available to the private venture under the long-term BOLT arrangements.

Permissions to work with containers temporarily in domestic travel would save the unfilled positioning charges, that have to be borne by exporters, and ICDs/CFSs would be less congested with a big number of bare containers. Slot congestion, port productivity, insufficient autonomy to the plug-ins, limited container managing facilities, poor street and railway network are a few of the bottlenecks impeding the growth of Multimodalism in India.

Electronic Data Interchange (EDI) center is also necessary to be extended in order to enhance the overall services. EDI facilities in every the concerned administration departments and other concerned agencies should be provided.

DG shipping shouldn't the Licensing power for multimodal transfer operators distinguish multimodal transport specialist in the type of a home regulatory body should be intended to ensure that trade gets proper services.

Feeder services and NVOCC providers are essential for effectively providing Multimodal transfer services. They need to be motivated. Through successful NVOCC services provided to importers and exporters of small quantities of cargoes could cause totally exploiting multimodal carry functions to the benefit of trade. The trade then can work on a smaller inventories and obtain economic protection plans besides ensuring timely delivery of cargoes to the buyer.

Partnership firms should be given an MTO permit.

Three major problems came across by MTOs relate with documents, remittances and legal responsibility regime.

Level learning field is provided to Indian MTOs. There is an urgent dependence on a regulated plan and a level performing field, not only on the part of mainline operators, but also feeder service operators, NVOCCs, ports, customs and insurance and other firms such as rail/highway, besides MTO providers and shipment companies.

Certain anomalies need to be rectified to be able to ensure that the majority of the MTOs are able to operate. At the moment, only 40% of the MTOs who've received licenses are functional.

The multimodal move authority, which is being formed, must modify to the needs of shippers and transport operations. The purpose of multimodal transportation will be defeated if all the regulatory body do not work in tandem and liabilities proposed to be protected under the Put together Carry Documents (CTD) are along the lines of

Hamburg Guidelines, which are still to be accepted by many countries involved in international trade. This is as against present Ocean Invoice of lading responsibility covered along

The lines of Hague rules, essentially covering limited deal liability.

Development of successful EDP system to linkage plug-ins, traditions, MTOs and delivery lines should be developed. Steps should be studied to avoid berthing delays scheduled to port

Congestion, much longer port stay, lack of pilots and tugs, shed congestions and ensure sufficient facilities of gears / equipment, for making sure smooth circulation of cargo and infrastructure of rail /highway network within docks, draft constraint, constraint of tides, etc.


The MTOs need better training so that proper services are given to the shippers.

Training is the most essential element for educating folks employed in multimodal business.

This should cover the complete gamut of multimodal self-discipline including new entrants, refreshers for existing personnel, foundation and induction lessons to provide appropriate training and expertise to new entrants depending after their main job.


Income tax exemption should be lengthened to cost -intensive tasks of multimodalism like CFS establishment, managing equipment, controlling equipment, trailers and vehicles for carrying box, etc. Today's infrastructure protects only jobs like plug-ins,

Leaving multimodal projects and ancillary requirements, concerning huge capital outlays, high and dried out.

Import of managing equipment and spares should be significantly exempted from custom duties. Top quality handling equipment is vital for a world class service and for want of heavy handling equipment being produced in India it is necessary to transfer them in a large way. The necessity especially at slots and for exports needs is enormous.

For establishing multimodal infrastructure, land be made offered by concessional prices.

It is essential to extend the multimodal theory also to local travel with a view to saving gas as well as providing state-of-the-art facilities for great inland carry network.

Container hubs, where multimodal facilities and other allied activities could be undertaken under one roof top, must be prompted. This might rationalize and facilitate movement in a major way.

Rail and roads

It sis a chance to coordinate infrastructure facilities pertaining to rail and roads, so as to meet the growing level of international traffic and specifically to encourage containerized cargo movements. For the advantage of containerization to be available to exporters and importers, more and more of basic cargo should be carried in pots from hinterland to jacks for which rail services be used for long line haul traffic and street transport for medium and short haul traffic.

MTO should be allowed to undertake movements of break in the action bulk cargo as well. CFSs and ICDs help in the process of door step export containerization. At exactly the same time it ensures simple surface tranport of pots hauling custom bonded cargo. Quite simply, these facilities work as dry slots in the hinterland.

The size of custroms personnel in ICDs/CFSs should maintain consonance with the volume of business and methods for traditions is further streamlined. The export documentation agencies should be made to open offices in locations where ICDs and CFSs are create so as to help in exports.

Running of agenda pot trains like boats would go quite a distance in facilitating hinterland containerzation and for that reason is urgently called for.

In the modern times, railways have shifted from part meal to teach load. This do lead to diversion of significantly less than trainload cargo to highway transport. The transfer acquired accentuated further as railways did not take duties for loading/unloading of railway wagons. Efficiencies in transit time for movement of cargo by rail are increased through mechanized handling at rail terminal through dedicated linertrains.


Warehousing is yet another strategy, which is progressively more increasing importance in terms of scale and portion of operation in the united states which can support multimodalism. The Central Warehousing Organization (CWC) has about 460 warehouses disperse throughout the country. The CWC and the CONCOR need to identify ICDs in close coordination so as to reinforce each other. Private sector initiatives in creating warehousing facilities, that happen to be vital in every facets of development, marketing and use to be urged.

Customs, Insurance and Finance

Customs Work uniformly applies to all plug-ins in India. However Chennai traditions allow stuffing/destuffing at privately held/operated CFSs while Mumabi traditions do not. Reconciliation process of the container connection is the same at each Indian Slot.

Simplification of traditions technique would help MTOs to expedite the delivery of goods. Traditions should propose self-assessment or self-determination and removal of goods to the manufacturing plant. For underpayment of responsibility mandatory charges be imposed. Custom House Agencies (CHAs) should form a Council like Bar responsible for disciplining CHAs so that they implement customs functions properly.



In the modern world of growing competition getting together with deadlines are very critical. In International Business a combo of all settings of transport to help make the delivery at the right time, at the right place at the right cost and keeping in mind the pace of which the product needs to be made available is needed and a reasonable knowledge of the same is also desired. With reference to providng more opportunities for trade, dried out interface name as ICD was launched to attain those areas also that have been not included in the slots.

Today the exporter encounters n volume of problems, handful of which are talked about below which were derieved at by the group after personal trips to exporters and ICD-TKD (Tuglkabad).

Every shipping series has another type of freight tariff, which is set by the consortium of which the shipping series is a part. And therefore the exporter is a quoted some other rate from another shipping range.

Cargo/box from a dry port is sent to the coastal interface through rail or street, to create inland haulage charge. This is apart from the freight charges billed by the delivery line. That is arbitrarily fixed and is not on any basis. This if availed is costed quite high.

Proper care and attention is not performed during the handling the cargo at the ICD. The cargoes subsequently get damaged due to the mishandling of the same. Cranes that are used for the purpose aren't of good quality rather than updated.

A great deal of problem is encountered by the exporter at the time of consolidation of the cargo in the pot. If it is a case of ICD stuffing then your cargo is stuffed in that manner that it would take in more space than required so that the freight can be increased.

It so happens that lots of a times the exporter is devote a stiff situations. The containers required by the exporters aren't available. In many cases it also happens that the correct size of the container is unavailable and the exporter must in urgency to send his cargo has to send in the low denomination cargo. Eg. If the requirement is of a 40" HC, and the same is not available then the exporter has to manage with two 20" which becomes quite expensive for the exporter.

Great problem is faced because of the incorrect routing. The exporter must bear the expenditures of this mismangement.

Many a times online or direct service to a slot/destination desired by the exporter is unavailable by the transport line and the route that is carried out otherwise is a significant longer the one that again enhances the price tag on the exporter. Eg. Insurance cost etc.

Services of CONCOR (Box Organization of India) is not satisfactory. Joining trains in CONCOR which is a link between the ICD and the Interface are not sufficient in number and therefore the container must stand in the ICD till the time the train is manufactured available.

Tracking and tracing of the ocean cargo is not as effective when compared with the AIR move cargo.

Warehousing problem at ICD. It is not managed effectively and in a technological manner.

Custom clearance activity is very complicate, wearisome, lengthy and time consuming. It highly will depend on the nature of the item and unnecessary types of procedures postpone the clearance further. In addition the corruption makes it all the more clumsy.

BAF and CAF SURCHARGE. These are the contingent charges, that are charged by every shipping and delivery line in case of any contingent increase in the bunker charges and the currency fluctuations. Under the non-occurrence of the above these charges aren't refunded to the exporter.

A whole lot of inconvience is faced by the exporters of HAZARDOUS CARGO. Many transport lines are hesitant to offer in such cargoes and if at all they offer they bill exorbitantly high rate.

The TRANSIT TIME as released by the transport line is generally not adhered too.

Indian jacks have serious problem of TRANSHIPMENT since these are not big harbors where mom vessel can anchor them in the dock.

Improper understanding of the CONDITIONS AND TERMS of carriage may lead to severe problems since these conditions and conditions are incredibly ambiguous and deceptive.

Frequent changes in the Regulations of the federal government and the Transport line causes great problems to the exporter.

IMPROPER HANDLING of the cargo at times causes the downside to the exporter. Gears that are used aren't sufficient in number and in haste the cargo is mishandled.

To elaborate the above point the GEARS that are used are not regular with the task performed by them.

NOTICE OF READINESS (NOR) reaches many situations not steady with the genuine readiness of the vessel/container.

Many ICDs have RAILWAY PROBLEM. Few of them don't have a rail way keep track of because of the lack of infrastructure.

Appropriate containers aren't available according to the characteristics of the item.

Maximum problem is encountered in the case of DELIVERY ORDER by the shipping and delivery line.

ETA(estimated time of arrival) is not oftentimes steady with the actual appearance of the cargo.

STRIKES ICDs and Railways are a large menace for the exporters.

Inherent Problem in the ICDs and other procedural activities.

Appropriate quality of pots are not received. They aren't properly acid washed.

CAN(cargo arrival notice) is not oftentimes given at the right time which creates dif

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment