+971 4 8831 303 info@cssdubai.com

Lighthouse - July, 2020.

CHAIRMAN’S MESSAGE


As we face the unprecedented events in the wake of the Covid-19 pandemic, the scale and scope of these happenings are what the world has never witnessed before.

The small South Indian state of Kerala has been lauded around the world for its quick, effective, decisive yet compassionate response to the Covid-19 crisis. Being the state which reported the first case of Covid-19 in India, Kerala topped the chart of positive coronavirus infections at the onset. But the leadership took swift action and the state managed to “flatten the curve” paving the way for the other states and even first world countries to emulate its course of action. Now, as it battles the second wave with increasing rate of infections, Kerala remains determined to battle the pandemic and protect its people.

COVID-19 will fuel the next wave of innovation

This global pandemic will shape businesses for decades to come. With the entire world in lockdown mode, the global economy is being put to a severe litmus test. The reality of recession looms like black clouds and it seems but inevitable. This is a time of great changes and also a unique opportunity.

Difficult times produce great people. Our resilience in a period like this can win us the credibility that will last us a lifetime and more.

Growth in the time of stress

Black swan events like recessions and pandemics have changed the trajectory of governments, economies and businesses — altering the course of history. The Black Death in the 1300s brought the end to the feudal system in Europe and brought in the modern employment contract. The recession that resulted after the 100-year war between England and France improved agricultural productivity. Fast-forward to recent history, the SARS breakout of 2002-2004 caused the meteoric rise of the small e-commerce company, Ali Baba. Air BnB and Uber became popular in the West with the recession of 2008, pushing people to share their resources.

With Covid-19, we are already seeing the early signs of change. Remote working and telecommuting have become the norm. Supply chains of the future will be resilient ecosystems constructed using cutting edge technologies such as 5G, robotics, IoT and blockchain to help connect multiple buyers with multiple vendors reliably across a network of supply chains.

We are here to run a marathon and not a sprint.

As a company, we will move forward ever and backwards never


CSS MARKS ITS 25TH ANNIVERSARY WITH A NEW OFFICE IN HAMRIYAH FREE ZONE


An ancient Chinese proverb says, “A journey of many miles begins with a single step”. The CSS Group as we know today had humble beginnings with T S Kaladharan setting foot on UAE soil 25 years ago. Today, CSS stands tall in the world of logistics with excellence in operations underscored by ceaseless energy and unrelenting passion in providing unmatched services to our growing customer base.

With an expanding network of operations that spans the Middle East and South Asia, CSS has offices in more than 14 locations across the region. Over the last two decades, our superlative quality of work and ceaseless commitment to excellence has made CSS synonymous with trust and a name to reckon with in the logistics industry.

The 25th anniversary is a significant milestone, and we marked it with the inauguration of our new branch in the Hamriyah Free Zone (HFZ). CSS Kingston at HFZ has been fully operational since 1st June 2020. It provides the full range of logistics services from freight forwarding, air freight, ocean freight, land transport, warehousing & distribution, supply chain management, reverse logistics to multimodal transportation, moving & relocation and much more. Every service can be fully customised to cater to customer demands so that their operations can happen unhindered.

Located in the emirate of Sharjah, Hamriyah Free Zone (HFZ) is the second-largest Free Zone in the United Arab Emirates. More than 6,700 businesses from over 157 countries across various verticals like petrochemicals, steel, construction and food processing operate out of HFZ.

CSS chose the Hamriyah Free Zone as part of its expansion plans as HFZ is a sought-after regional base by global investors due to its strategic location. It connects the major trade routes through Asia, Europe and Africa and provides us unrestricted access to a growing market of over two billion people. HFZ was awarded the prestigious Superbrand Status in 2017 by the global Superbrands Council, and CSS Kingston is proud to set up base in one of the premium business destinations in the UAE.

We look forward to the next leg of our journey, surmounting the new challenges with dauntless courage, uncompromising adherence to integrity and a renewed commitment to excellence.


CSS TAKES PART IN THE EXPORTERS GROUP MEETING ORGANIZED BY DUBAI EXPORTS


The Exporters Group Meeting was held on 15th January 2020 under the aegis of Dubai Exports, an agency of the Department of Economic Development, Government of Dubai. The government body works with a commitment to grow exports on a world-scale by strategically working with export organizations in Dubai and across the UAE.

A grand award ceremony for UAE exporters was also part of the event that took place at the Grand Hyatt, Dubai. The agenda for the meeting also included the sharing of the calendar featuring the upcoming events organized by Dubai Exports both in the UAE and abroad.

Consolidated Shipping Services (CSS) Group was represented by Mr Santanu Datta, Assistant General Manager Business Development and Mr Ajay Krishnan, COO-Freight Forwarding. The event proved to be a great opportunity to meet prospective customers and for strategic networking.

Mr Santanu Datta hailed the program emphatically stating, “Networking helps when you meet right people in the right time”. Mr Krishnan echoed the same sentiments saying, “An excellent event for networking, it gave us an in-depth insight into the various initiatives planned by both government mandates and by private entities. We look forward to attending the next one.”

With a vision to become a world-class export development agency, Dubai Exports provides constant guidance, advice and practical support to both overseas buyers and suppliers thereby ensuring the success of the exports sector in Dubai and the UAE. Their long-term growth strategies help businesses expand and maximise their growth by taking advantage of Dubai’s strategic location as a natural trade gateway between the East and the West.
Dubai has been hailed as the global export hub with incomparable facilities and a logistics infrastructure that stands unrivalled in the Middle East and matches the best in the world. The services offered by Dubai Exports include providing trade information, branding advice, financial, legal and foreign trade representation and access to potential buyers. The agency works in close connection with other Government Departments to do way with any red tape and to simplify the export process.

As a top player in freight forwarding and one of the fastest growing NVOCCs in the MENA and South Asia regions, CSS has been a strategic local partner with Dubai Exports. CSS provides several value-added services to Dubai Exports Members which include dedicated account manager, free information/updates on shipping & logistics, packing, ocean, air & land, freight to transports and other services and more. For selected services, CSS also offers preferential packages apart from the free trade advisory services. This support extended is in line with Dubai Exports’ mission to empower and diversify Dubai’s economic growth by offering pioneering export-related services to business houses.


OFFICE AND WAREHOUSE SANITIZATION DRIVE


Within a few weeks of its emergence, the novel coronavirus has created unprecedented impact on the way people live and work across the globe. While most of our staff are supporting remotely, we need to keep our premises open to facilitate business continuity. As champions of a great work experience, we want to help everyone stay healthy in the office while sharing common workspaces.

At CSS, we lay great emphasis on the health and wellbeing of all our employees. We believe in creating a healthy work culture that will enable us to surmount the challenges that COVID-19 has presented and beyond.For this purpose, we organized an office sanitization drive to help navigate this critical phase of our fight against the unknown and unseen enemy.

Good cleaning and disinfection routines can greatly reduce or eliminate the viral count of COVID-19 on surfaces and objects in the offices and warehouses.

All our offices/facilities in Jebel Ali (HQ & CSLC-1), the office & warehouse premises are being cleaned and sanitized by our housekeeping personnel. We adhere to the best disinfection practices recommended by government bodies worldwide to ensure that our workspaces and warehouses are completely safe and sanitized, always.


LOGISTICS OPPORTUNITIES IN THE NORTHERN EMIRATES OF THE UAE


It’s easier than anywhere else in the Middle East and North Africa (MENA) to set up a business in the United Arab Emirates (UAE). According to the World Bank’s Ease of Doing Business 2019 report, UAE ranks 11th and is far ahead of its neighbours in terms of infrastructure. Along with its strategic location, tax benefits and low import duties, a business can be set up in 2 days. With liberal new business licensing for foreign investors and a modern judiciary system, business setup in the UAE has attracted companies from all over the world.

UAE’s strategic location makes it the centre of some of the world’s most important trade and commercial routes from ancient times to even today. Having a foothold on UAE soil assures you of access to the markets of Asia, Africa, Southern and Eastern Europe and the Middle East. With state-of-the-art facilities and infrastructure to facilitate international trade, UAE is the ideal location for businesses looking for new markets.

BENEFITS OF BUSINESS SET-UP IN THE NORTHERN EMIRATES

UAE is dotted with free zones across all its emirates, from Dubai to Abu Dhabi to the northern emirates of Ajman, Sharjah, Um Al Quwain and Ras Al Khaimah. But the high cost of living and business set up, rents and other overhead expenses can be a deterrent for companies to start businesses in Dubai and Abu Dhabi.
The northern emirates of UAE like Sharjah, Ras al Khaimah, Fujairah, Umm al Quwain and Ajman have much lower rentals and living and business expenses. With cheaper labour forces and warehousing costs, your business overheads can be brought down drastically thereby increasing your profit margins.

ADVANTAGE SHARJAH

Sharjah, the third-largest Emirate is also known as the cultural capital of the UAE. From the Hamiriyah Free Zone to Sharjah Airport Free Zone, Sharjah Publishing Free Zone and Sharjah Media City, these free zones provide the same infrastructural benefits but at the fraction of the cost when compared to Dubai.
Centrally located between Europe and East Asia, with convenient access to major international airports and ports on both the Arabian Gulf and the Indian Ocean, Sharjah is a strategic investment destination. A highly diversified economy, Sharjah is the cultural hub, industrial and a centre of educational excellence. With huge earning potential, tax exemptions, and liberal government policies, company set up in Sharjah free zones is streamlined but requires considerable planning and proper execution.
Sharjah’s free zones provide cheaper warehousing options than the other more popular destinations. Warehousing and storage can be a costly business expense, with varying benefits depending on where you are in the UAE.

SAIF ZONE OR SHARJAH AIRPORT FREE ZONE

SAIF zone or Sharjah Airport Free zone is a premier business destination with easy access to the Sharjah International Airport and the seaports. With advantages like custom-made offices/spaces, warehousing, cheaper energy, human resources and accommodation and IT services, SAIF is an entrepreneur’s dream destination.
The free zones in the Northern Emirates like Ras Al Khaimah Economic Zone UAQ FTZ – Umm Al Quwain Free Trade Zone, Fujairah Free Zone Authority (FFZA), Hamriyah Free zone Authority (HFZA), Sharjah Media City (SHAMS), Creative City Fujairah can provide the facilities available in the logistics hub like Dubai at more economical costs for companies looking for cost-cutting to bring down their annual warehousing expenditure.

ABOUT CSS KINGSTON LOGISTICS

CSS Kingston Logistics FZE offers 3PL facilities, a first-of-its-kind in Sharjah Airport International Free Zone (SAIF). A joint venture formed between the CSS Group, the leading logistics solution provider in the Middle East/South Asia, and Kingston Holdings, CSS Kingston has a variety of 3PL activities to enhance the business environment in the region.
CSS Kingston Logistics has been fully operational from 1st of June 2020 and is part of our expanding network across the Middle East and South Asia regions. The newly operational office cum warehouse is situated within the Hamriyah Free Zone and is yet another milestone for CSS Group portfolio.
CSS Kingston Logistics FZE in SAIF zone boasts high-quality warehousing space and infrastructure, fully integrated supply chain processes, reverse logistics and 3PL facilities. It also offers full-service warehousing and distribution services. The CSS Kingston network spans across six continents.
Our logistics solutions cover a broad range of businesses and industries, providing customized and efficient logistics for each client including Non-Vessel Operating Common Carrier (NVOCC), Ocean Freight Management, Air Freight Management, Land Transportation Management, Industrial Packing, Crating & Lashing, Multi-modal Operations, Container Freight Station (CFS), Yacht & Marine Logistics and more.
With most 3 PL providers located at Jebel Ali, Dubai, CSS Kingston can service the requirement of a wide range of industry verticals from automobiles, electronics, auto spare part, lubricant, marine, to construction, manufacturing, food, hotel industry and more.


COVID-19 AND ITS IMPACT ON LOGISTICS


The repercussions of the coronavirus spread are felt across the commercial world. Due to the extremely connected global economy, the effect is going to be widespread and will last for a long period of time. In the wake of the pandemic, supply chains will need to undergo a radical transformation. Most countries are slowly coming out of the lockdowns that were imposed to contain the virus spread. With governments unlocking economies, every organization needs to assess their exposure and plan how they can support their key stakeholders, employees and customers.

Resilient relationships with suppliers

Disruptions can be kept at a minimum by developing collaborative and resilient relationships with critical suppliers. Spot opportunities in the face of challenges and then reset the current working models. Companies who are able to adapt their supply chains according to their Covid-19 exposure will emerge resilient and will be able to withstand other contingencies they might have to face.

The key areas that need attention are:

Safety of the people: the HR department should ensure the physical and emotional health of the employees with the apt advice for those placed in impacted areas. Practice corporate social responsibility (CSR) regarding employee stability, environment, wider society and economy, and pursuing ways to support response efforts.
Strategic team formations: Form a special team to maintain constant flow of the right information between key stakeholders; this will help in sustaining stakeholder confidence and customers about the impact. Establish a team to focus on supply-chain assessment and risk management to assess global and regional supply-chain flows, utilising alternative modes of transportation and conducting trade-offs according to the needs, cost, service and risk scenario analysis.
Review capital and business processes: It’s time to review your review your cash flow, working capital management and inventory forecasts along with the supply and demand predictions. The days ahead are bound to be financially strained due to further stock market declines and restricted access to funding. Strategic business planning needs to be synchronized across all business processes. Businesses with data rich environments can harness capabilities in procurement, operations and research and development (R&D), using advanced simulations to identify optimum performance trade-offs.
Micro supply chains: The chief focus of the supply chains of today is cost reduction and spurred the creation of large, integrated, global networks which have grown in proportion with outsourced manufacturing to emerging economies, backed by long-term contracts. Covid-19 has raised many a question, whether this is the way ahead. Shifting to micro supply chains can prove to be efficient and effective in the long run.
Improved supplier relationships: Now is the time to build collaborations with crucial suppliers based on trust and transparency.


DIGITAL TECHNOLOGIES WILL POWER THE SUPPLY CHAINS OF THE POST-COVID ERA


With China, the factory of the world, being the epicentre of the pandemic, supply chain networks in all industry segments across the globe have been affected. What Covid-19 has revealed is the lack of a contingency plan in the face of disruptions.

Post-COVID: The rise of the new ‘digital’ world

The positive repercussion of the post-COVID-19 era will be a fast ushering in of digital transformative practices across all industry segments. Technology-driven business models will become more important than ever before and they will define the global supply chain strategy of tomorrow.
COVID-19 has made us realize the need to reduce our dependency on physical labour across transportation, logistics and warehousing sectors. Enabled by latest technologies like Internet-of-things, blockchain, control towers, artificial intelligence/machine learning-enabled demand forecasting, rule-based and self-adjusting stock allocations, autonomous devices such as AGVs and drones, among others, they will go a long way in creating a robust supply chain networks in the post-COVID era.
The five most important aspects that will be essentials for supply chains of the near future are:

1.Smart procurement practices: Advanced machine learning algorithms can help companies understand where and when to source, based on their previous purchases, commodity prices, agro and industrial trends and other factors

2.Supply chain control tower: A single source of information about sourcing to delivery for all trading partners to see and adapt to changing demand and supply scenarios across the world.

3.End-to-end information management: Supply chain data management with intelligent automation and analytics which captures supply chain transactions accurately with high consistency and minimum redundancy. This allows for in-depth insights regarding supplier performance, supply chain diagnostics, market intelligence and risk management.

4.Supply chain simulation: Helps in forming new supply chain strategies for business or operating model change, demand and supply changes or logistic disruptions or constraints. Helps to validate and identify the best cost-efficient network to achieve the necessary service level across the value chain.

5.Supplier risk management: N tier risk management helping organizations model cost structures, trend performance data and visibility into the extended value chain to keep abreast of any supply disruptions and secure capacity. This could help companies avoid sudden disruptions in the supply chain and deal with lack of information.

We can implement the learnings from the COVID period to come back stronger. the post-COVID era is going to be rife with challenges across the business landscape, from a liquidity crunch to disruptions in the supply chain to increase in trade barriers, and a shifting consumer mindset. Technology is going to be a key enabler by improving existing supply chains to be more resilient ones and enhancing customer experiences, the new era will usher in more intelligent and optimized processes for improved business outcomes.


WORDS THAT ECHOED A REVOLUTION


“Please! Please! Please! I can’t Breathe”. Those were the powerful last words of Mr. George Floyd right before he was murdered by the very cops who are supposed to serve & protect people. I have never written an article for LinkedIn, but I felt this would be a good time to write my first article and show my support for George Floyd and at the same time speak out on race issues in the world. I am not here to criticize anybody or spark another debate to an already sensitive issue, but I feel there are people every day in this world who could be another George Floyd waiting to happen, if the world doesn’t unite against racism.
Racism is a pandemic and there is no cure unless we educate people that skin color doesn’t matter. Black, white or brown – What difference does it make? There is no real magic in having a particular skin color. Ever since I was a little kid, I was taught that everybody is equal. Being disabled or having a certain skin color should not be frowned upon. Instead, we should measure an individual purely on what he/she is to another human being. In this day and age, people don’t have the time to be considerate or show any empathy. Displaying such emotions is deemed weak.

Dr.Britto Satheesh
General Manager

Gone are the days when we really cared for our friend or family or the person who needs some help. We are moving with the worldly developments and its lightning pace but somehow this race issue despite making some minor waves, it seems to be stagnant and still prominent.

George Floyd too was in need of some consideration, sympathy and should have been offered a hand when he was lying on the floor and kept calling out for his mama. I have never met him or heard his name before this incident. Yet, George Floyd, your name is ringing loud around the globe and I am proud to be one such person to recognize how you have changed people’s feelings towards Racism.

I am a south Indian with brown skin and I have always been proud of my roots. While I was a student in the UK, I faced backlash for being brown. I look back at this time with fond memories but there were some unsavory moments, especially when it involved my race and color. To highlight one such issue, I was a 3rd year student and after a long day at the university, my friend and I decided to visit a nearby pub for a game of pool. Halfway into the round of pool, I was approached by an old man with a beer in his hands who asked me where I was from. Being a confident person and an extrovert, I replied to him saying am from India and felt that that could set the tone for a little pub conversation. I was so wrong.

He was considerably shorter than me and asked me to come closer to him, to which I obliged. His shirt had a little British flag pinned to it. He pointed to the flag and whispered into my ears that only whites are allowed in this pub. I felt a rush of anger in me and told him, excuse me! what did you just say? – just to give him the benefit of the doubt, as I may have heard him wrong. I realized I had heard it right the first time as he repeated the same thing, and for a moment I lost it. He was older to me and it’s in our nature to be polite to elders but after hearing such discriminating words, it was impossible to ignore the fact that I have been a victim to racism. I could have been confrontational but I didn’t want to throw away my life by getting into a fight with a racist old thug. Anyone at that moment could be irked and so was I, when my race was questioned in a public place where you expect to just chill and cool off. Despite those comments upsetting me, I had to be rational and do the right thing, by walking away.

I loved my life in the UK. For the 7 years I spent there, and I was fortunate to have friends from all over the world. Some of my close friends to date are British nationals. Beyond those 7 years, I couldn’t have seen myself living there any longer and I always felt out of place. It is true that you adapt to a culture especially when you’ve lived in a place for that many years like me. Even though my accent and personality changed, and I embraced the British culture throughout my time there, I always felt out of place just because of the few people who never appreciated my culture. I was called ‘Paki’ by those minorities and I was disheartened. If that word could have an adverse effect on me, then imagine how a student from Pakistan would feel? Everyone who comes to the UK comes for new opportunities and to live, learn and explore a multi-national culture. Racism can destroy their ambitions, desires and certainly will kill off their hopes in humanity. This is just my story but am sure, there are many who may have had the same experiences.

Let me go back to George Floyd before I end this article. I say a prayer for his soul and the family he left behind. He has a daughter and I am sure she can already see how her father has changed people’s perspective on racial discrimination. The protests around the world are a weapon that can trigger a drastic revolution and help everyone realize what is at stake if things remain the same. For a new change to be in place, it could take a while but I believe, George Floyd has opened people’s eyes to ensure this so-called pandemic that is racism to be addressed with much more assertiveness than in the past. Being black, brown or white should never be a reason to judge someone’s talents. Being Chinese, African, Pakistani, Sri Lankan, Indian etc. should never be the reason for a baseless and endless debates. Instead, the focus should be on their beautiful cultures. It is time the world listens and explores systemic racism. The 21st century is filled with innovations in technology and science. So why can’t there also be a focus on combating racism and its effects on people? It is time for us to reflect, learn and act, and we must never avoid our responsibility to end systemic racism. George Floyd, was a little humble giant and through his heart-breaking last words, a change is waiting to happen. My little experience is just a telltale and am sure there many more who might have had other experiences. Racism can suffocate anyone and we should unite against it.


CHARTERER’S LIABILITY TOWARDS SHIPPER’S AFFIRMATION ON “APPARENT GOOD ORDER AND CONDITION”


One of the main challenges (or as might say “An Issue”) faced by any Shipping Line is when they have to carry the perishable goods from one port to another. Their main responsibility is to keep the Goods safe from damages due to temperature variance, moisture, ingress of seawater into the containers, etc. This shall mean a series of claims against the Carrier/Shipping Line by the Consignee/Shipper/Insurance Companies etc. To protect themselves from any such cargo claims, the Carrier/Shipping Line relies mostly on the reservations that they have included in the Bill of Lading to state, “Shipper’s Load, Stow and Count.” Including these types of reservations in the Bill of Lading lifted the burden of proof from the Carrier to the Shipper wherein the Shipper has to prove that the Cargo was well packed and was safe for the voyage when it was handed over to the Carrier/Shipping Line for loading. If the Bill of Lading does not have these types of reservation statements, usually, the Shipping Lines are held liable for the damaged cargoes. However, a recent case of 2020 took a slightly different view from the usual practice of holding the Shipping Line or the Carrier liable for the damaged goods, especially when there was no reservation made in the Bill of Lading by the Carrier/Shipping Line.

Joy Thattil
Maritime Lawyer & Partner @ Callidus
Dubai, Singapore & India
joy@calliduscmc.com

In the case, PRIMINDS SHIPPING (HK) CO. LTD Vs. NOBLE CHARTERING INC. TAI PRIZE [2020] EWHC 127 (Comm), the Vessel, “MV TAI PRIZE” was time chartered to M/s Noble Chartering Inc. (hereinafter the “Disponent Owners”), who then sub-voyage chartered the Vessel to M/s Priminds Shipping (HK) Co. Ltd (hereinafter the “Voyage Charterer”) for the carriage of the cargo “Soya Beans” from Brazil to China. The Cargo was loaded by the Shipper, and the Bill of Lading was prepared by the Shipper’s Agent, who described the Cargo as “…… Clean on Board… and Shipped in Apparent Good Order and Condition…” and the said Bill of Lading was executed by the Master’s Agent without any reservations.

At the port of discharge, the Consignee discovered that the Cargo’s portions suffered heat and mold damage. When the Consignee filed a case for the loss and damages incurred by them, the actual Vessel. The owner secured their claim by paying off their claim amount of around US$ 1 million, mainly to avoid the arrest of their Vessel. The actual vessel owners, in turn, brought the claim against the Disponent Owners, under the terms of the Time Charter Party seeking a contribution of half of the sum paid by them to the Consignee and the Disponent Owners settled the claim with the Actual Vessel Owners, by paying them the money. The present appeal was filed by the Voyage Charterer to challenge the impugned arbitral award pronounced in the London Arbitration Proceedings commenced by the Disponent Owners against the Voyage Charterer to recover the amount paid to the actual vessel owners and the costs of defending that claim since the Shipper was the Voyage Charterer’s agent and therefore the Voyage Charterer had impliedly warranted the accuracy of any statement as to the condition contained in the Bill of Lading or had impliedly agreed to indemnify the Disponent owner against the consequences of the inaccuracy of any such statement.

Before going to the Court’s interpretation of the wordings and issues involved in the case and the wordings used in the Bill of Lading, let us first see what is considered to be an “Apparent Order and Condition of the Cargo.” According to the Interpreters, the term refers to the condition of the Goods as would be apparent on reasonable examination, and not the internal condition of the Cargo on the shipment or their quality. Further, when a shipment is said to be in “apparent good order and condition” it also means that the Cargo is properly packed to withstand the ordinary incidents of the voyage. In case if Cargo is not sufficiently packed or if the Carrier or the Master thinks that the Cargo will not withstand the incidents of the voyage, then they must not issue a Bill of Lading, without any reservations. Usually, the reservations are like “Cargo has been shipped at the Port of Loading in apparent good order and condition on board the Vessel for the carriage to the Port of Discharge… Weight, Measure, Quality, Contents, and Value Unknown” OR “All Particulars as furnished by the Shipper but unknown to the Carrier.” These reservations are mentioned to given the Shipper, Consignee, or any party concerned a reasonable notice that there might be some defect or shortage in the goods which is not known to the Carrier. It is also to be noted that these reservations must be made on the front of the Bill of Lading and not elsewhere.

Above being the industry’s usual practice, in the case of PRIMINDS SHIPPING (HK) CO. LTD Vs. NOBLE CHARTERING INC. TAI PRIZE [2020] EWHC 127 (Comm), the Court took a slightly variant view while interpreting the wording by Shipper in the Bill of Lading, “Clean on Board” and “Shipped in apparent good condition” or the issue as to whether the Shipper’s presentation of the Bill of Lading with the aforementioned terms, leads to a representation or warranty by the Shipper as to the apparent good condition of the Cargo observable before the loading OR if it is only an invitation to the Master to make a representation of fact, in accordance with his assessment of the apparent condition of the Cargo. The Court opined that as per Article III Rule 3 of the Hague Rules (incorporated in both the Charter Party as well as the Bill of Lading of the subject case), the information regarding “leading marks necessary for the identification of the Goods” and “the number of packages or pieces or the quantity or weight” of the Goods constituting the Cargo, to which the relevant Bill of Lading is concerned, is the information furnished in writing by the Shipper and as far as this case is concerned this aforementioned provision of the Hague Rules applies to the information “63,366.150 metric tons Brazilian Soya Bean”. Further the Hague Rules also provide the “apparent order and condition of the Goods” but as per the Court, this information is not to be furnished by the Shipper, instead this part should be an exclusive assessment by the Carrier (or The Master) of the Goods at the point of shipment. Therefore while answering the aforementioned issue, the Court said that by presenting the draft Bill of Lading for signature by or on behalf of the Master, in relation to the statement concerning apparent good order and condition, the Shipper was doing no more than inviting the Master to make a representation of fact in accordance with his own assessment of the apparent condition of the Cargo. The Court also noted that The Hague Rules Article III Rule 5 imposes an express indemnity obligation on the Charterer in respect of the information that he “furnishes in writing.” A Charterer has no such obligation however, in relation to statements regarding the “apparent order and condition” of the Cargo. The Court also held that the Disponent Owner was not entitled to an Indemnity from the Voyage Charterers, because the Hague Rules, incorporated into the Voyage Charter Party between the Parties, do not impose on the Shipper in relation to the statement concerning apparent order and condition of Cargo.

Even though this decision is a boon to the Charterers as they will be relieved that a general implied indemnity was not owed to the Disponent Owners in respect of the statement concerning the apparent order and condition of Cargo, made by the Shipper, we are yet to see the outcome of the case, as the Disponent Owners are granted leave to file an appeal.


THE 5-R’S TO GET BACK FROM COVID-19


The coronavirus pandemic is first and foremost a human tragedy that will be marked on the pages of history. It will reshape a “new normal” in every sphere in the post COVID era. Affecting millions in almost every country on the globe, the outbreak has had a devastating effect on the global economy as well. Dealing with the coronavirus crisis and its aftermath is the imperative of our times.
Here are 5 steps of how organizations can adapt to getting back to “business as usual”.
The McKinsey article calls organizations to act across five stages, leading from the crisis of today to the next normal that will emerge after the battle against coronavirus has been won:

1. Resolve
2. Resilience
3. Return
4. Re-imagination
5. Reform

Resolve

The need to determine the scale, pace, and depth of action required at the state and business levels. As one CEO told McKinsey, “I know what to do. I just need to decide whether those who need to act share my resolve to do so.”

Resilience

The pandemic has spawned a worldwide financial and economic crisis. A McKinsey Global Institute analysis, based on multiple sources, indicates that the shock to our livelihoods from the economic impact of virus-suppression efforts could be the biggest in nearly a century. Near-term issues of cash management for liquidity and solvency are the foremost challenges at the present. But soon afterward, businesses will need to act on broader resilience plans as the shock begins to upturn established industry structures, resetting competitive positions forever.

Return

For companies to return to business as usual, the supply chain needs to be reactivated. It is extremely challenging after a lockdown that spans the globe. With the coronavirus impact spreading across geographies, supply chain disruptions are inevitable in multiple locations. . The weakest point in the chain will determine the success or otherwise of a return to rehiring, training, and attaining previous levels of workforce productivity. Leaders must therefore reassess their entire business system and plan for contingent actions in order to return their business to effective production at pace and at scale.

Re-imagination

The post-Covid era will define how we live, work and play and how technology can be harnessed. Contactless commerce with online transactions will be rule of the day. The pursuit of efficiency will have to make way for the need for resilience and the global supply chain might have to be reframed with production and sourcing moving closer to the end user. This is also the time to tap into opportunities to improve business processes and performance. Technology adoption will be accelerated by quick assimilation of what it takes to improve productivity. In the end, we will have an understanding of how businesses will become more immune to shocks resulting in better productivity and improved service quality.

Reform

The pandemic has opened doors for a wide variety of innovations and experiments like working from home to large scale surveillance. If we adopt these innovations on a permanent basis, we could provide an improvement on the socio-economic development of our society and also help in stopping the virulent virus in spreading.
The pandemic has inadvertently caused a restructuring of the global economic order. How this crisis evolves is still yet to be seen. These five steps can help leaders beat a path to return to a “new normal”, that is unlike anything that was before.


Subscribe to our bi-monthly newsletter, Lighthouse

ecpo-2020
© 2020 Lighthouse. All rights reserved. Designed and maintained by NetVenture Digital Solutions Pvt. Ltd.