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Category Archives: Cargopeople Newsletter

10 Inland Waterways Coming Soon

 

As per Union minister of Road transport & highways Mr. Nitin Gadkari,” Inland waterways would be a game changer in the country as it will reduce logistic cost to a large extent, it will help industry in export promotion and creating more employment.”

Going by the stats, a single standard vessel has the capacity to transport cargo load equivalent to 125 truckloads or a single train load of 40 rail wagons. So moving the cargo by waterways will be a cost effective idea.  Government targets to operationalize 10 such waterways by end of 2018.

Three multimodal hubs will also be created at Uttar Pradesh (Varanasi), West Bengal (Haldia) and Bihar (Sahebganj). The first waterway will be on river Ganga (1620 km stretch) from Kolkata to Varanasi called NW-1. The second waterway will be on river Brahmaputra (890 km stretch) called NW-2. Next will be turn of river Mandavi, Zuari, Amba and Brahmani.

This will also create a wide scope of employment in these areas and will benefit the Logistics sector in a big way.

 

By Kanika Adlakha

 

 

 

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Flood in Mumbai, Hurricane in Houston

houston hurricanemumbai flood

FLOOD IN MUMBAI, HURRICANE IN HOUSTON

How to keep the supply chain running

 

As we read that JNPT port of Mumbai could not function for several hours due to floods in Mumbai; the customs online data interchange system could not work due to breakdown of servers. Similarly US port of Houston was severely affected due to hurricane Harvey, many shipping lines were diverted.

Earlier tsunami in Japan seriously disrupted the automotive industry as the supply chain broke down due to natural calamity. While we cannot always monitor these calamity prone areas for any pre-alert, there still are some steps which can ensure that supply chain keeps on moving:

  • Companies/ports can invest in heavy duty generators to keep large office buildings running
  • Companies can identify back up suppliers who can step-in to handle emergency product requirement
  • Companies need to maintain buffer stock which can be diverted to the supplier’s warehouses as soon as the warning goes out.

 

By Kanika Adlakha

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THE GST APP

GST image

The Union Finance Minister Shri Arun Jaitley launched a mobile app “GST Rates Finder” which is available on android platform and will soon be available on iOS platform as well.  This Mobile app helps users to find rates of GST for various goods and services. It can be downloaded on any smart phone and can work in offline mode, once downloaded.  The user can determine the GST rate for a good or a service by entering the name or Chapter heading of the commodity or service.

GST rate finder can be accessed on CBEC’s portal cbec-gst.gov.in to help the taxpayers know the applicable GST rate on their supplies of goods and services.(courtesy: PHD Chamber of commerce).

 

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Traffic shoots up at all major Indian ports

MICT Manila Philippines

 

This April –May 2017 recorded an almost 6% increase in traffic at all major Indian ports.

India has 12 major ports namely, Kandla, Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Vishakhapatnam, Paradip and Kolkata. These all ports handle 61%of total cargo of India.

Due to the increase in demand from sectors like iron ore, fertilizers, coking coal etc. from last two months all major ports are witnessing an upsurge in traffic. The highest traffic was recorded at Kandla port at 18.86 MT while Paradip port stood second with 16.19 MT

 

By: Kanika Adlakha

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VIETNAM-THE NEW NEW EXPORT HUB

VIETNAM-THE-NEW-NEW-EXPORT-HUBVietnam has emerged as the new shining star of Asia and as the new export destination. Investors from countries like Korea, Japan and Singapore have been keen in setting up their manufacturing units here.

Given to its close proximity with China, favorable trade situations and low cost of Labor, Vietnam is no doubt recording an upsurge in its GDP since last few quarters. From fashion apparels to electronics, the country is steadily growing in its market share globally in all major key products. Vietnam also plans to move container business out of Ho Chi Minh City port which is already facing a lot of container load.

 

By-Kanika Adlakha

 

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One Belt One Road

The Train from China to Europe

There is good news for the manufacturers/traders of time sensitive cargo that need to ship their goods from China to Europe. As per the Chinese government initiative of “one belt-one road” a new cargo train has been started which originates from Yiwu in China and reaches London in 18 days. This train covers the 12000 km route via Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France before arriving at London.

Other connections as per ‘one belt-one road’ initiative include Duisburg, Madrid, Afghanistan and Riga. Its USP is that it is half cost of air freight and half of transit time of Sea freight. Thus making it a quicker option than sea and air to ship cargo from China to Europe

    By Kanika Adlakha

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When Amazon Met Logistics Industry

What happens when capital rich companies like Amazon and Alibaba decide to enter into age-old Logistics industry? A revolution is on its way. Times have come to move away from documentation and freight booking. Soon, we will be talking about automatic drone delivery and one click shipping for international trade. Looking at the steps amazon is taking right now in this direction; it will soon turn a competitor to companies like UPS, FEDEX and DHL.

 

Amazon Logistics

 

Technology will soon revolutionize and automate the entire supply chain industry when a merchant in China calls Uber to truck his shipment and his cargo is sent to vessel, reaches its port, goes to warehouse and flies directly to consumers via automated drone. All these things will need a few clicks on smartphone. Backed by over 5 billion dollars in investment, let’s get ready to see a new face of logistics.

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Demonitization and Its Shock for Domestic Logistics

demonetization logistics

 

With the sudden declaration of 500 and 1000 rupee notes as invalid, the Modi Government surely hit the bull’s eye for eradicating black money in India. But it has created major problems in the logistics industry, especially the trucking industry. These truck drivers carry essential food items as well as raw materials for the various industries situated at far off places; now with sudden demonetization they had no time to stop and exchange the money they were carrying for fuel ,food and road taxes. The government is not collecting taxes on the national highways for the time being, but what about the state highways? As a result many such drivers with invaluable goods are stranded and important supplies have been locked out.

 

no cash for truck drivers

 

As regards online shopping; many online stores have stopped giving cash on delivery services due to which the logistics service catering to these portals have seen sharp decrease in service requirement. The ultimate sufferer is the common man alongwith Domestic logistics which are facing genuine problems due to the lack proper planning of demonetization.

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Brexit and Indian Shipping Sector

The exit of Britain from European union-being referred as Brexit has its mixed effects on the Indian logistics industry. While many of the investors are planning to increase their investments in UK as it will be free from the regulations of EU, shipping business may see it otherwise.

brexit and indian shipping sector

The strait of Gibraltar is the entry point to the Atlantic from the Mediterranean Sea. Through it approximately 71000 ships carrying 240 million tons of cargo pass every year. The strait of Gibraltar is a part of Britain but located at the tip of the Spanish peninsula. People of this area have voted to ‘remain’ in EU, creating further confusion.

Another concern is that now EU will give a tough competition to London which houses the headquarters of most insurance and banking firms making London a shipping hub. This might also create a tension as EU will now try to create a new shipping hub of its own.

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PRE ALERT FOR CHINA IMPORTERS AND G20 SUMMIT

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If you import goods from China and your shipper has a factory in Shanghai or Hangzhou area then this alert is for you. The G20 summit will be held in Hangzhou on 4.sep.2016 so the factories within the radius of 150 km are being asked for partial or total shutdowns by June end or early September to create a pollution free environment. There are a total of 1000 factories which will be affected by this. Those factories which will not close might increase their fee due to strong demand. So, get in touch with your shipper and order in advance to avoid supply disruption in the coming months.

Quick tips to ensure a smooth supply chain :

  • Start placing your orders in early April
  • Ask shippers about factory closing date and status of cargo production
  • Communicate with your logistics provider and book early shipments
  • Have a Plan B for sourcing
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