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Lighthouse - September, 2019.

CHAIRMAN’S MESSAGE


Two decades ago, when CSS launched the first edition of our ‘Lighthouse’ magazine, we had a vision. Innovatively, it was to interact with the shipping logistics fraternity, by providing interesting information about events and updates from within the CSS Group. It transpired that, in a very short space of time, ‘Lighthouse’ built up a globally increasing readership throughout the shipping and logistics industry. Consequently, it started garnering more compellingly relevant news and feature items to showcase to our readers. The support and encouragement we have received over all these years has been staggering. Across the world, our print copies reached more than five thousand pairs of hands. Partnered alongside this, our digital edition started picking up the show with an exponential growth of half a million readers online.

It is true that a printed magazine gives you a more tactile experience, as it opens up an emotional channel with the content, when it’s held in a reader’s own hand. But being a responsible company, committed to preserving the environment, we have decided to reduce the usage of paper within the CSS group and go green. In line with this commitment we’ve taken a decision to completely digitize our magazine. Whilst we are sad to discontinue the print edition of ‘Lighthouse’, we are very excited about exploring how the advantages of 100% digitization will benefit our publication. We promise that this new change will not impact in any way on the quality of its content. We will happily rise to the challenge of continuing to engage our readers with more interesting topics from within the industry.

It’s said that: – ‘It ain’t what you do, it’s the way that you do it’.

We intend to ‘do it’ in a way that will carry forward, the new digital online format of ‘Lighthouse’, as an acclaimed flagship publication for CSS and our global industry


CSS GROUP HONORED BY THLG



The CSS Group was honored with a special award for their continuous journey with THLG as an associate for the past 10 years. “The long-term cooperation with The Heavy Lift Group has been a tremendously fruitful association in terms of sharing knowledge and executing projects and mutually beneficial,” commented Sreenath V, Vice President, Operations and Projects, CSS Group. It is indeed a great privilege for CSS to be a part of this reputed fraternity, mentioned Sreenath, after receiving the award.

The Heavy Lift Group is an international group of specialized heavy transport companies which combine their forces to offer the best expertise and service according to customer needs.

Members specialize in heavy lift transport by sea, air and overland, outsize cargo movements, crane operations, rigging, machinery installation, and large-scale project forwarding.

The Heavy Lift Group was founded in 1987 by a number of West European heavy lift operators in anticipation of the single European market and has since then expanded into a worldwide group having members in the United States, South America, the CIS, the Middle East and Asia.


BRINGING CHICAGO MEAT PACKERS TO DUBAI



The specialist division for Hotel & Hospitality Logistics of CSS implemented turnkey solutions for the renowned Chicago Meatpackers at Palm Jumeirah moving goods from various parts of the world. The hospitality client specifically needed a logistics provider to support its supply chain needs by managing a three-phase project over the period of a year and a half. An end to end service offering was the CSS buzz word for this movement, handing procurement from the factory and delivery at destination for A to Z items for the restaurant.

The project started in the year 2017 and the movement of goods were done from the USA, Malaysia and Germany until 2018. CSS team moved 90 percentage of the items required for the infrastructural development. The furniture, the bars, the kitchen equipment, coffee machines, light fittings, bricks on the wall down to the cutleries and crockeries for the restaurant were included in the list. Their scope was Ex-works from factory location, freight till Jebel Ali, customs clearance and delivery to location. Some of the activities were assisted by other departments of the Group company and ensured a cent percentage satisfactory job completion.

“Working with international brands such as Chicago Meat Packers adds to the credibility of the CSS Hospitality & Hotel division. Our expertise in providing start-to-finish logistic solutions from the planning to execution stage, has rewarded us with strong customer partnerships”, mentioned Rosh Manoli, General Manager Sales Department, CSS Dubai.

Chicago Meatpackers is a casual meat-focused eatery and lounge inspired by the freight trains and cattle markets that once dominated the famous Chicago Meatpacking district known as “The Yards”. Their contemporary restaurant is a great place to get the crew together, kick back and enjoy fresh cut steaks, authentic burgers and drinks. They use the freshest of meats and ingredients to ensure that the meal is packed with flavor.


MEMORANDUM OF UNDERSTANDING


DUBAI EXPORTS SIGNS MOU WITH CONSOLIDATED SHIPPING SERVICES GROUP


Dubai Exports and CSS Group decided to work closer with signing an MoU in the month of August. The memorandum of Understanding was signed by Eng. Saed Al Awadhi, CEO of Dubai Exports and Mr. T S Kaladharan, Chairman of Consolidated Shipping Services Group. It will be to encourage competitive opportunities in providing value added services to DE members, as well as working together to share business information, promote and facilitate business opportunities.


MBA STUDENTS FROM THE US VISIT CSS



CSS Dubai office recently welcomed a group of Business Management students from the Texas Christian University, USA. As part of their study abroad programme, the Executive MBA students; Stephanie Kuntz, Dwayne Roberts, Keith Harris and Sam Jordan spent time at the CSS facilities in Jebal Ali to learn about best practices in the logistics and freight forwarding industry in the UAE. Their trip was aimed at knowing more about conducting business globally, with a focus on the three countries they visited, which were India, UAE & Hungary. “We thoroughly enjoyed our meeting with CSS and learned a great deal about the freight forwarding industry in the region,” mentioned the students’ team in one voice.

They had a one-on-one session with Ajay Krishnan, COO of Freight Forwarding at CSS who shared with them in-depth insights on trading patterns, customs and trade procedures and individual customer/vendor’s processes with regard to how they are aligned to country regulations and trade practices. “A refreshing discussion, allowing us and our visitors the chance to impart experience/knowledge of both on the ground realities as well as concepts, forthcoming. We at the CSS Group have always welcomed these opportunities, and are open to more such discussions going forward.” Mentioned Ajay.


FROM DUBAI WITH LOVE


GARFIELD MOVED TO HONG KONG BY HOMEWARD BOUND

CSS Homeward Bound was recently approached by a pet owner in Dubai, (Client doesn’t wish to disclose the name) for a relocation. The requirement was for an adorable cat named Garfield, and the move was to Hong Kong. CSS Homeward Bound was more than enthusiastic in providing professional assistance for Garfield’s travel. Garfield stayed in a foster home for a few weeks as his mom had to be in India first before heading to Hongkong. CSS HWB arranged to transport and took him from the foster home the night of his scheduled flight.

For pet owners, pet relocation to a new country can cause many headaches; moving, quarantining, and registering your pet in your new home country are all stress-inducing. When moving your pet abroad, you need to make an informed decision as to whether your pet is up for the trip. This is where a professional moving company like CSS Homeward bound, has the real role to play.

They studied about Garfield’s likes and dislikes from its owner. The recent medical history of the cat, illnesses if any, food habits etc, also play a very important role prior to move. Most pet owners treat their pets as a member of the family. So, when they hand over the pet to the relocation company, they are handing over a part of their sentiment. The moving company also has to have an outlook broader than normal to see and treat this family member with respect and much care. Homeward Bound team executed this sentimental move with the utmost passion, that they received thankful feedbacks from the client.


STAGE DRAMA IN COLOMBO


CSS SRI LANKA INVOLVES IN BRAND AWARENESS ACTIVITY

CSS Sri Lanka got an opportunity to involve in a cultural programme in Colombo. Recently the drama enthusiasts gathered at the Tower hall Colombo to witness a Sinhala stage drama, “Balloth ekka baha 2” organized by the welfare society of a company named Douglas and Sons. Being a loyal customer to CSS, they invited CSS to the programme and meet and greet the audience. CSS Sri Lanka team visited the venue, took part in the programme and promoted their leaflets and flyers as part of brand building activity.


A JOURNEY PAR EXCELLENCE


CONSOLE SHIPPING SERVICES INDIA PVT. LTD

CSS Group has made remarkable progress in the Indian Sub-continent with a well reputed brand identity. Console Shipping Services India Pvt. Ltd. Is today one of the front runners and a respectable brand within Shipping and Logistics. CSS India operates as three major regions namely Northern, Central and Southern regions which control major cities and gateway ports in their respective domains. CSS North Indian operations are evenly spread out with deep roots of business in-lanes created through Punjab, Haryana and other manufacturing centres of the Northern Region. “The demand for Logistics services has been largely driven by the remarkable growth of the Indian economy. The growth cannot be judged with any short term situations, but it is totally dependent on the infrastructural development and the policies adopted by the government. CSS India has got aspirations in gaining greater momentum in the region” Commented Rajesh Arora VP, CSS North India.

CSS has seen a steady growth in its central Indian operations controlled from the commercial capital, Mumbai, over the past years. The remarkable progress in the export segment and projects has attracted major brands to CSS. “We are mainly focussing on relationship marketing which is by far the most important thing required. The overall prospects for the logistics segment in the country are promising as well” mentioned Rahat Talreja, VP, CSS Central India.

The country’s logistics industry is projected to be worth $215 billion by 2020-21, recording a 10 per cent compounded annual growth rate (CAGR) over its approximate size of $160 billion in 2016-17. It’s been calculated that the logistics players in India may gain due to several reasons such as increased domestic consumption, rising exports, surging container volumes, loosening infrastructure bottlenecks and increased investments in the new facilities. Development of logistics related infrastructure, like dedicated freight corridors, logistics parks, free trade warehousing zones and container freight stations, are expected to improve efficiency, as per reports.

Console Shipping Services towards the Southern region is headquartered in Chennai with offices spread out in Tirupur, Tuticorin, Coimbatore and Bangalore. South has recently witnessed some commendable achievements in the field of Projects Movement, especially Machinery. “It is a welcome initiative from the Government of India to create freight corridors and Logistics Park in the National Highways. Southern region, where the infrastructural developments are by far the best compared to the other parts of the country, will greatly benefit from this new development” commented T K Viswanath, General Manager, South India.

Today, Console shipping services India, with its strategic positioning in major cities and gateway ports, is capable of handling all types of logistics movement both Imports and exports from any remotest part of the country.


LI LIAN INTERNATIONAL LTD V. HERPORT HONG KONG LTD (MOL COMFORT) [2019] HKCFI 826 [2019] HKEC 964 – A REVIEW


This decision of the Hong Kong Court illustrates one of the potential risks associated with acting as a Non Vessel Owning Common

Carrier and the importance of protecting time in all potential jurisdictions when it comes to claiming indemnity.

Facts:
An NVOC (Herport) issued bills of lading in Hong Kong for carriage of cargo on ‘MOL Comfort’ from Hong Kong to Le Havre. Ocean bills were issued (by NYK) also in Hong Kong, indicating Herport as the shipper.
Unfortunately, the ship fractured amidships in the Indian Ocean, split into two halves and drifted for several days before sinking together with all goods on board.
Cargo interests and their insurers claimed against Herport under the NVOC bills; Herport issued a third party indemnity notice against NYK.

Contentions:
The main issue was conflict of law arose due to the exclusive clauses added in both B/L.
The Herport’s B/L provided exclusive jurisdiction to Hong Kong Courts whereas NYK’s B/L provided exclusive jurisdiction to Tokyo District Court in Japan under the following terms:
The contract evidenced by or contained in this bill of lading shall be governed and construed by Japanese law except as may be provided for herein, and (b) notwithstanding anything else contained in this bill of lading or in any other contract, any and all actions against the carrier in respect of the goods or arising out of the carriage shall be brought before the Tokyo District Court in Japan to the exclusion of jurisdiction of any other courts whilst any such actions against the merchant may be brought before the said Court or any other competent court at the carrier’s option.
NYK argued over the jurisdiction of the case stating that as per the clause in their Bill of lading the Jurisdiction would be Tokyo District in Japan and shall be governed and construed by the Japanese Law, also there were already two legal proceedings in Tokyo in relation to the subject damage thus NYK submitted that Hong Kong had no jurisdiction over the matter.
Herport disputed that the clause mentioned on the NYK BL is not valid as the clause is restricted only to claims under Japanese law and no other indemnity claims would fall under the same provision. They had placed the burden on NYK to prove that Hong Kong was not the right forum for the case.

Judgement:
Judge went by NYK’s contention stating that the clause on NYK bill of lading was very clear and it carried no ambiguities. The Court Stated that Herport had not submitted strong reasons to prove that the Court had jurisdiction and also Herport had to be aware that he may have to proceed against NYK in Tokyo as expressed in the Bill of Lading. The argument of Herport on forum non conveniens was also not accepted by the Court. The Court took a generous interpretation of the exclusive jurisdiction clause.
Thus the case was ruled in favour of NYK. The decision was inconvenient for Herport as the claim was time barred under Tokyo jurisdiction.
Having said the above, the judgement has missed out addressing if the claim can be acceptable under Tokyo Court as per 3 (6 bis) of Hague Visby Rules, to which both Japan and Hong Kong are signatory and this clause would have assisted Herport to fight the issue.


DP WORLD ANNOUNCES STRONG FINANCIAL RESULTS


DP WORLD GROUP CHAIRMAN AND CEO, SULTAN AHMED BIN SULAYEM CREDITED THE COMPANY’S STRATEGY OF DEVELOPING INNOVATIVE NEW PRODUCTS AND SERVICES AND PRUDENT MANAGEMENT FOR DP WORLD’S IMPRESSIVE HALF-YEAR RESULTS.

Dubai, United Arab Emirates, 22Aug 2019: DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem credited the company’s strategy of developing innovative new products and services and prudent management for DP World’s impressive half-year results. Bin Sulayem added that DP World’s excellent performance against the backdrop of challenging global economic conditions is a testament to the company’s resilience, sound growth strategy and the diversification of its global investment portfolio across energy, maritime and sustainable mobility amongst others.

The statement was made as global trade enabler DP World PLC announced strong financial results today for the six months ending 30 June 2019 with reported adjusted EBITDA and attributable earnings growth of 21.9% and 26.8% respectively.

“Our half-year financial results have been in line with our expectations, Mr Bin Sulayem said. He highlighted that DP World continues to be guided by deep market understanding, innovation and operational excellence across 45 countries worldwide. Despite uncertainty from the trade war and challenging regional geopolitical realities, DP World has been able to deliver and excel a broadly impressive performance in the first half of 2019.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World, added:“DP World is pleased to report like-for-like earnings growth of 22% in the first half of 2019 and attributable earnings of $753 million. This strong financial performance has been delivered in an uncertain trade environment, once again highlighting the strength of our portfolio.

We have continued to make progress on our strategy to become a trade enabler and solutions provider as we look to participate across a wider part of the supply chain. We have invested significantly across our Ports, Logistics & Maritime Services businesses. The aim is to connect directly with customers to offer logistics solutions and remove inefficiencies in the supply chain to accelerate trade. We are seeing positive signs of progress in our new businesses that give us encouragement for the future.

“Our balance sheet remains strong, and we continue to generate high levels of cash flow, which gives us the ability to invest in the future growth of our current portfolio. Going forward, we aim to integrate our new acquisitions and deliver synergies with the objective of providing smart end-to-end solutions, which will improve the quality of our earnings and drive returns.

“While the near-term trade outlook remains uncertain with global trade disputes and regional geopolitics causing uncertainty to the container market, the strong financial performance of the first six months also leaves us well placed to deliver full-year results slightly ahead of market expectations.”


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