Lighthouse - May, 2017.

Chairman’s Message


T S Kaladharan

It is amazing how far away; seemingly unapproachable to some, distant horizons may appear. Yet when they have been reached, the memories of the journey provide emotional rewards which surpass everything.  The ten year course, chartered by Console Shipping Services India, has seen us sailing through the hearts and minds of millions of satisfied clients. Being able to make this statement gives me great pleasure as I recognise the privilege that goes along with this.

I recall the days when CSS India was first conceived, with a small group of colleagues and friends sitting around with me, planning and strategizing about the future of the India operations. At that time, no one was quite sure about the fortunes destiny might have in store for us. However all of us were united in focusing on the distant horizon. We had confidence that we were going to sail through whatever situations unexpectedly came our way.  We had a belief and determination that enabled us to ride any troughs and stay on the crest of the waves. Bearing in mind how we started, it recently seemed appropriate that a few of us should get together for a small celebration in Delhi. Here we were able to share the excitement and joy of this landmark achievement of CSS India. We reminded ourselves that one’s roots should never be forgotten. For CSS the saying that ‘from little acorns – oak trees grow’ holds true for us.

Today my colleagues, in India, have achieved an acclaimed dynamism and steadfast approach aimed at delivering the best. This has created a long lasting impression in the market in which they operate.  Accordingly, this historic juncture reminds us about the broader aspect of responsibility that is expected from each of us.  We must all employ strength and longevity, similar to that of an oak tree, to forge ahead by building on our solid and secure foundations.


A Journey Par Excellence


CONSOLE SHIPPING SERVICES COMPLETES 10 YEARS OF INDIA OPERATIONS



Console Shipping Services India Pvt. Ltd celebrated its 10th anniversary of operations in the field of Shipping and Logistics. A humble journey initiated a decade back with only two offices in India have grown to become a leading name with eight full-fledged offices to its credit today. With diversified operational presence managed by professionals within the shipping and logistics industry, CSS India caters to a cross section of business community around the globe.

10th Anniversary celebrations were conducted at the Ramada Gurgaon hotel near Delhi on the 26th of March 2017. The function which was organised by the Delhi office of CSS was attended by India office heads, team CSS Delhi and the senior management members of CSS Group including Chairman T S Kaladharan. The celebrations kicked off officially with a cake cutting ceremony done by Chandrakala (CK), Director Operations & Ocean freight, CSS Group, Rajesh Arora, Vice President, North India and Rahat Talreja, Vice President Central India.

DJ and Dance floor invigorated the mood of the party and guests started pouring in on to the dance floor to try their dancing skills. CSS team members and Management staff too joined the dance and made the celebrations a memorable one.

CSS India being a part of renowned CSS Group headquartered in Dubai successfully manages services ranging from NVOCC to Projects and from Relocations to Heavy Equipment logistics. As a leading neutral NVOCC in the country CSS India enjoys excellent relationship with leading carriers and thereby ensuring outstanding rates and provides world class services to their clients. The organisation caters LCL services to an impressive 1650 destinations on a weekly basis. CSS India is seen as a reliable partner by their clients for global shipments through Air, Sea and Multimodal operations. More than 800 people today work with CSS Group in the Middle East and the Indian Sub-continent.





Venturing Newer Avenues To Stimulate The Economy


Seeking to strike the right balance between Challenges and Opportunities, the annual budget meeting of Console Shipping Services India was held in Delhi in March. The venue chosen this time was the calm and quite Ramada Gurgaon. Managers and key decision makers from all over the Indian offices attended the meeting which was chaired by T S Kaladharan, Chairman CSS group. In his inaugural address, he congratulated the employees for the tremendous growth that the company has achieved in India during last financial year. He also emphasised the need for path-breaking approaches to tackle the seamlessly changing turbulent global economic scenario.

Budget presentations were done zone wise this year initiated by Rajesh Arora, Vice president North India who did the North India presentations. Central India and South India presentations were done by Rahat Talreja, Vice president Central India and Sudharshan Vice President South India, respectively. Presentations on general Market situations in the Middle East were done by Siby Kurian, Vice President Sales & Marketing and Ajay Krishnan, Vice President Freight forwarding CSS Group. Chandrakala (Ck), Director Operations and Ocean freight briefed the attendees on the latest developments in the IT and the ERP Solutions of CSS Group.

The CSS Group Management while assuring support to the suggestions which was put forth during the meeting by the delegates, re-iterated the need for focussed approached on certain niche areas which needs an upliftment.

Services offered

  • LCL Consolidation & FCL
  • Multi-modal Operations
  • Ocean freight
  • Air freight
  • Buyers consolidation
  • Customs clearance
  • Projects Management
  • Warehousing
  • Supply chain & Logistics








ITP Media Interview


Ajay Krishnan, Vice President, Freight forwarding and Chandrakala (CK) Director, Operations and Ocean freight of CSS Group sat with Shaun Ebelthite of ITP Media Group recently. The interviews of the CSS Management delegates were taken by ITP for their April edition of the Logistics Middle East and the Arabian Supply Chain magazine.

“CSS appreciate ITP Media Group’s initiative in engaging companies like CSS who have more than two decades of operational experience in shipping and logistics. Our discussions covered vital and debatable issues that needs to be addressed by the logistics fraternity today for the benefit of all”, mentioned Chandrakala (CK) after the interview.

Ajay and CK spoke in length with Shaun about the CSS 3PL facilities and the programmes in store for an advanced supply chain management strategy which will soon be implemented in the Middle East. The discussion covered crucial topics such as the volatility of the freight rates, stability recovering and the global operations of CSS.


Perception v/s Reality


Rahat Talreja – Vice President – CSS India

You must have been accused of being a Robber (as in: You robbed me) or Lootera (as in: you looted me) or Fleecer (as in: You fleeced me) or Thieves / Thugs (as in : they thugged us or in Hindi: chor hai yeh log)

More so if you are in the business of airline, malls, multiplex, logistics, high end restaurant, airport shops and cafe’s etc. Let me elaborate.

Airlines

Perception:

Every peak season like Diwali, Christmas etc., you see articles in newspapers on how airlines are “looting” passengers with exorbitant sky high fares. Bombay to Delhi ticket at 25000 which normally is 2500.

Then same night, you put on the TV and the TV as always is broken into 6 frames – 5 guests/panellists and 1 host journalist – all arguing on : Are airlines right in looting innocent passengers with sky high fares?

What is the regulator doing? DGCA? Airlines Ministry on this loot? NGO view, political party view, customers view all are unanimous: They are looting.

Just 1 person would be representing the airlines who would also 75% agree to it that they are looting.

This is perception.

 

Reality:

Open the balance sheet, profit and loss account, sales / purchase registers, cost matrix of the airline.

95% of the time, every year, they fly passengers: Below cost.

Reason: no pricing power and uncontrolled competition.

95% time they lose money on every ticket.

5% time – they have some opportunity to cover up due to demand supply matrix

Yet, they guzzle the capital invested, have poor balance sheets, and have losses on operations.

In India, all airline promoters are billionaires starting from Govt of India run Air India to Tata’s Vistara to Naresh Goyal’s Jet airways to the 5 star ex. airline Kingfishers billionaire promoter Vijay Mallya to the Wadia’s Go air

Because to become a millionaire, you start as a billionaire. After the so called “loot”

This is reality.

 

Multiplex and Malls

Perception:

How can they ask 400 bucks for a popcorn,

200 bucks for corn and 600 bucks to see this useless movie which is like semi porn (remember I am a poet at heart)

150 bucks for the parking? 100 bucks for a bottle of water?

On TV, the argument goes again: where is the regulator? Why allow them to fleece customers?

Hushed comments: these guys make HUGE money

 

Reality:

Most malls shut down eventually. Most multiplex chains get sold or shut down. In India, it’s almost a monopoly with PVR. Space for none but one. But are they making that kind of money you think? The answer is: read their finances, that’s the truth and you will realise how the real estate and municipal taxes are what you pay for and not the popcorn, water, wafers etc.

And we are not even bringing in parameters like return on investment which are prime to businesses.

 

Logistics

Perception:

Your rates are very high

Your THC is high

No one is charging VGM

Your destination charges are high

Then, it gets more personal

You guys are looting

You are like thugs

Don’t take advantage

You guys are making huge money from us

 

Reality:

(applicable to most except the few top companies in the listed space)

No logistics company promoter lives on the expensive Mumbai Island City / South Mumbai, all live in the suburbs and farther than that. That itself is a sign of the high charges and loot.

None is in the millionaire list

Most are highly leveraged

Most started from scratch and are still scratching something to remain in business

Negative freight & Rebate are words and concepts holier than God himself for them

Most are poor enough to see travelling to a foreign country and sometimes by business class as a sign of “I have arrived “

A lot many “buy THAT car or THAT phone” and think they have arrived and many such poor think tales.

So the real money always eludes the glamorous businesses.


Cool Storage Facility In Sharjah


CSS Kingston Logistics provides Cool storage facility inside Saif zone, Sharjah. Having a cool storage facility warehouse can be critical to your business and you can have confidence that you can count on CSS Kingston to provide what you need. The temperature controlled warehousing provides clients with storage solutions that preserve the integrity and quality of goods such as food, pharmaceuticals and electronic components. With the state of the art facilities and highly trained manpower in station, you can rely on the expertise and skills of the temperature controlled storage  division at CSS Kingston Logistics.

Conveniently located within SAIF zone, CSS Kingston is easily accessible from all parts of the Northern Emirates. Highly efficient supply chain facilities provide an edge to CSS Kingston logistics over their competitor in the fiend of 3PL management.

Service offering:

    • 35,000 Sq. Ft. Warehouse space dedicated for cool storage
    • 2200 Pallet positions
    • Suitable for Food stuff, pharmaceuticals & cosmetics
    • Continuous monitored digital temperature control
    • Short & Long Term Storage
    • Web-based Inventory Management Link to Information and Technology
    • 99.9% Order Accuracy
    • Secured with 24 X 7 CCTV monitoring

 

For enquiries, contact :

Thomas Mathew – Branch Manager

thomas@csskingston.com


The Improvements In Salvage Law: Is The 1989 Salvage Convention Environmentally Dynamic?




The preamble of the 1989 salvage convention begins by elucidating recognition of increased concern for protecting the environment and the need to create a regime to incentivize salvage operations that incorporate environmental considerations. The convention enumerates duties and responsibilities owed by the salvage parties to the environment, but it is principally in two provisions, Article 13 and Article 14 that the regime to incentivize the undertaking of salvage operations for environmental protection purposes is found.

Article 13 provides that the salvage award shall be fixed with a view to encouraging salvage operations, taking into account the following criteria “without regard to the order in which they are presented below…” (b) the skill and efforts of the salvors in preventing or minimizing damage to the environment;

Article 14 provides for a form of special compensation for salvage efforts where there is a threat of damage to the environment in order to address the irreconcilability of the principle of no cure, no pay with incentivizing environmentally motivated salvage operations.

Though these articles were enacted to provide a responsive regime to incentivize environmentally motivated salvage operations, the force of the provisions is weak. A salvage reward under Article 13(b) is will always be qualified by provision 13(3) of the Convention, “The rewards, exclusive of any interest and recoverable legal costs that may be payable thereon, shall not exceed the salved value of the vessel and other property.” Environmental threats can have devastating consequences to a region. A large oil spill for example has the potential to significantly damage marine habitats, biodiversity, and local livelihoods. By limiting a salvage reward in this manner, no matter how devastating the environmental impact of a damaged ship may be, the salvage crew must engage in a balancing exercise to determine if it is profitable. Notably, this limitation was recognized by the International Salvage Union at the 2011 Comité Maritime International (CMI) colloquium; “…all too often the tribunal is unable to give full effect to this provision because of the low value of the salved property.”



Article 14 allows for special compensation claims as an exception to the general no cure no pay principle of salvage law. One of the most significant issues with Article 14 is that the ambiguous wording has created legal uncertainty for when the provision applies as there must be a ‘threat of damage to the environment’. The meaning of the phrase ‘threat of damage to the environment’ is unclear and requires significant interpretation. To give effect to the phrase, a decision maker must consider what constitutes a threat, whether the threat must be real or may be a reasonably perceived threat, what is the meaning of coastal waters found in the definition of damage to the environment, how is the word substantial as found in the definition to be defined, and how substantial must the threat be.

Joy Thattil

Maritime Lawyer & Partner @ Callidus Corporate & Maritime Consulting ( CCMC) Dubai & India

joy@calliduscmc.com


Business, Friendship & Beyond


The relationship between CSS and FPS Rotterdam started in 2003 when T S Kaladharan and Jean-Paul van Munster met each other for the first time in Singapore. It was clear that both had a lot to offer to each other. Commencing in 2003, the combined efforts of CSS, who are a neutral NVOCC and FPS Rotterdam has made both companies to become the market leaders in consolidation services from and to the Middle East and India in their respective regions.

From there started, not only a fruitful business relationship, but also a close friendship flourished. During the past years the relationship had grown into a family atmosphere for both Kala & Jean. Never an opportunity is missed to be in each other’s family functions and over the period of time, the joy is shared of being like a single family and they continue the relationship.



After a long day of business meetings between the CSS teams and Saskia de Jong, MD of FPS Rotterdam, the day is sealed with a family diner.


New Regulations From Customs To Prevent Corruptions


Recently Indian Customs has done amendment in their Custom Act for filling of Bill of Enrty ( i.e. Custom Import documents filling ) for all Import cargos coming to India effective 1st of April 2017. In this new regulations all Consignee / their agents must have to file Import Bill of Enrty in Customs EDI system within 24 hr of vessel arrival at port, failing which a daily penalty will be imposed on Consignee. This is a very good and corrective measure from Indian Customs to stop all illegal / wrong Customs filling. This will also speed up the import clearance process in all port in India making them competitive in world market. Apart from that, Free time at all ports has been reduced to 24 hrs so that the current backlog of cargo can be eased out from all Ports and ICD(s).  This sudden movement strictly comes into picture due to nationwide NEWS of fake currency and ammunition speads and DRI, SIB, CID stops all works in every major ports and ICD(s).

This New regulation may be called the Bill of Entry (Electronic Integrated Declaration) Amendment Regulations, 2017.

 

Please take a look of the summery of the new regulations….

 

“Regulation 4. (1) The authorised person shall file the bill of entry before the end of the next day following the day (excluding holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing.

The bill of entry shall be deemed to have been filed and self-assessment of duty completed when, after entry of the electronic integrated declaration in the Indian Customs Electronic Data Interchange System either through ICEGATE or by way of data entry through the service centre, a bill of entry number is generated by the Indian Customs Electronic Data Interchange System for the said declaration.

Where the bill of entry is not filed within the time specified in sub-regulation (1) and the proper officer of Customs is satisfied that there was no sufficient cause for such delay, the importer shall be liable to pay charges for late presentation of the bill of entry at the rate of rupees five thousand per day for the initial three days of default and at the rate of rupees ten thousand per day for each day of default thereafter:

Provided that where the proper officer is satisfied with the reasons of delay, he may waive off the charges referred to in the second proviso to sub-section (3) of section 46 of the Customs Act, 1962 (52 of 1962).

No charges for late presentation of Bill of Entry shall be liable to be paid where the entry inwards or arrival of cargo, as the case may be, has taken place before the date on which the Finance Bill, 2017 receives the assent of the President.”

 

This sudden notification has make a lot of consignee’s life miserable suddenly but this will surely purify the current impurity of EXIM Trade and we CSS Delhi welcomes this strict move imposed by Custom for purification of Trade.

Rajesh Arora

Vice President – CSS North India


Chairman’s Message


T S Kaladharan

‘You can’t always get what you want’ is the opening line from one of my personal favourite songs by The Rolling Stones. One of the tracks on their 1969 album, it is the second line which provides the encouraging answer. ‘But if you try sometimes you might find….You get what you need’. Does this sentiment strike a chord with you? Does it make you assess your approach to challenges? It is true to say that sometimes we need to accept life’s realities to understand more deeply what drives us. Our aspirations need to be forefront in our minds so as to give us the driving spirit which enables us to grow in life. We all need to try to stand any chance of succeeding.

Not only in our personal lives, but also in a business environment, we all need aspirations to motivate and focus our efforts. It is therefore pleasing to learn that our marketing department has confirmed that the aspirations of the Lighthouse team have been recognised. An amazing response from Lighthouse readers provides confirmation of the interest generated by news items and features showcased in our magazine. A good corporate magazine reflects and echoes the views and interests of its staff. We may all help Lighthouse build on its success by letting them know our views. Included in this edition is a survey form for those who haven’t completed the online survey. Your comments and suggestions will be particularly welcomed. Lighthouse belongs to all of us so I would like to extend, on behalf of Lighthouse, their gratitude for your patronage. Like all of us, I look forward to continuing to read informed, stimulating, and interesting news and features in Lighthouse.


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