lighthouse - September 2022

Chairman’s Message

Supply chains and logistic companies like ours are not new to digital transformation. When the pandemic hit us, we quickly adopted digitization to enable our teams’ remote working, ensuring business continuity in the midst of the lockdowns.

Logistics in the Metaverse and Web3

In October 2021, Facebook rebranded itself as Meta. The Metaverse is a digital 3D universe that creates a digital space that is then translated into the physical world. It is considered the next big step in the future of digital interaction. It has become a popular trend pursued by several organizations, not just by Facebook alone. At the Intersec conference held in Dubai early this year, the experts said that the Metaverse also shows a demand for jobs, which is definitely portending a future digital economy.
This also means that the Metaverse can affect how supply chains operate. It will enhance collaboration across all supply chain tiers, both internally and externally. This environment will also help create better warehouse designs as it can be simulated, experienced, and improved in the Metaverse before the physical build, saving money and time from concept to reality.
Web3 is another revolutionary concept in which platforms and data are owned by the people who build and use them. Considered to be the next iteration of the internet, supply chain and logistics start-ups are built on decentralized ledgers with a backbone of cryptocurrencies. These solutions can help manage and track the shipment of anything worldwide.

CSS -The Technology Adopters

Reuters Events surveyed 488 logistics and supply chain professionals worldwide between January and February 2022 in partnership with CargoWise. In the survey report titled Global logistics: The link between technology and productivity, the key takeaway is that technology is essential to unlocking consistent productivity gains for logistics providers. At CSS, we have always been at the forefront of adopting robust digital infrastructural facilities so that we can deliver on customer demands and respond quickly to change.

Disruptive Thinking

We need to adopt disruptive thinking to succeed in an increasingly uncertain business landscape. It means thinking differently or a way that challenges the usual way of doing things. The architect of the disruption theory, Clayton M. Christensen, explains, “Disruption describes a process whereby a smaller company with fewer resources can successfully challenge established incumbent businesses.”

India Staff Meet at New Delhi

We had a great time at the India Staff Meet, which was held on 31st July 2022 at ‘The Umrao’, a much sought-after luxury hotel in the National Capital Region (NCR) of New Delhi. It was a night of grand festivities and a time of honoring the stupendous efforts of the CSS India team.
Many breakthrough technologies will emerge and evolve in the days ahead. We are at the birthing stages of new tech like the Metaverse and Web3. Team CSS has always been one step ahead of the others in the industry. As we adopt a disruptive mentality, it will help us provide valuable offerings to our customers. Let us be future-ready to go beyond physical workplaces to envision a future with virtual working environments.
This has made me think that even our future staff meetings might be on the Metaverse!

CSS INDIA STAFF MEET IN DELHI

The CSS India Staff Meet was held on 31st July 2022 at ‘The Umrao’, a much sought-after luxury hotel in the National Capital Region (NCR) of New Delhi. The CSS Group Chairman Mr. T S Kaladharan and the CSS Management threw a scintillating cocktail party and DJ night to rebuild the connections that were restricted due to the pandemic-induced constraints over the past two years.
The party was well attended by CSS team members from every CSS office across the Indian subcontinent. Mr. Fida Asghar represented the Dubai office, while Mr. Rahat came with a strong contingent of 14 employees from the CSS Mumbai branch. From the South, Mr. Vishwanath represented the Coimbatore and Tirupur offices, while Mr. Jitendra & Mr. Sathiya Narayanan came from the Chennai wing. There was also Mr. Sudeep and Mr. Jinu from our Kochi Office, while Mr. Naveen represented the Bangalore branch. Mr. Anirban was representing the Kolkata office from the eastern part of the country. Since the meeting was held in Delhi, the entire team attended the party from our Delhi and Ludhiana offices.

An Exhilarating Night of Celebrations, Joy, and Laughter

The party was organized at ‘The Umrao’, one of the most sought-after venues, CSS always ensures that our team gets nothing but the best, the poolside party kicked off with the DJ’s foot-tapping numbers that set the mood for the night. The dancing session was followed by a sumptuous dinner and spirits that brought mirth and revelry to the event. The CSS India staff made most of the night as they enjoyed every moment of the party.
Fida entertained the audience with witty and rib-tickling jokes, roaring with laughter throughout the night. Mr. Rahat had everyone spellbound with his remarkable dialogues filled with witticisms and anecdotes. The party’s highlight was the melodious voice of Mr. Pramod Dubey from the Ludhiana office, who revealed timeless hits and Bollywood songs to the audience.

Welcoming the New Additions to Team CSS

We also took the opportunity to introduce our new joiners to the CSS team. We also remembered our revered colleague Mr. Rinku, whom we have lost due to Covid. His wife, now part of the CSS Team, was introduced to our guests.

Awards and Felicitations

Our Honourable Chairman, Mr. T.S Kaladharan, also felicitated the company’s outstanding employees by giving mementos to them. He also felicitated the respective vertical heads, Mr. Rahat, Mr. Rajeev, Mr. Jinu, Mr. Sudeep, and Mr. Vishwanath, with signature gifts.
The Chairman also gave rewards to Mr. Sanjay Dutt and Mr. Ajay Kumar from the Delhi office. They were the two outstanding dancers who set the floor on fire with their unique steps and moves.
Mr T S Kaladharan and Mr. Fida praised and felicitated Ms. Nishu Jain from the event management company The Impresario for meticulously planning and conducting the whole event without any glitches.

Connections are the Key to the CSS Success Story

At CSS, our Chairman, TS Kaladharan, has always been at the forefront of nurturing connections between team members. Even though CSS operates with teams across multiple geographical boundaries, it is important for the teams to be connected no matter where they are. Mr. Kaladharan has always encouraged building a rapport between team members. He believes that along with recognition and rewards, these connections go beyond the celebrations. The company will gain intangible rewards that reap benefits that even affect the company’s bottom lines.
Here’s to more celebrations and new connections!

AIRCRAFT ENGINE MOVEMENT COMPLETED BY CSS KINGSTON

Over the last few years, CSS has set an enviable track record in air shipments of large equipment, luxury cars and bikes. CSS Kingston Logistics, Ras Al Khaimah recently had the opportunity to undertake the movement of an aircraft engine all the way to Antwerp, Belgium from Jebel Ali. The Air Craft Engine was shipped on a HAPAG LLOYD on a 40 feet flat rack.

CSS Kingston Logistics, Ras Al Khaimah

CSS Kingston Logistics’ Ras Al Khaimah branch started it operations in the midst of the pandemic in August 2021. With the backing from our leading networks and global partners, the division soon emerged as a trusted and reliable logistics partner catering especially to the northern Emirates of UAE. The branch has specialized in 3PL services and offers reliable cargo movement to LCL hubs. CSS Kingston also offers documentation, storage and logistics, all under one roof. Above all, it has a dedicated team of professional manpower who are willing to go the extra mile till the project is completed. Team CSS Kingston has been providing exceptional tailor-made solutions to meet the specialized client requirements.
The shipment of the aircraft engine was undertaken on 13 June 2022. It had to be delivered securely all the way at Antwerp, Belgium. Our clients had entrusted this highly costly and sensitive cargo in our safe hands!

Aircraft Parts Transportation

In the world of aviation, even seemingly small aircraft parts can cost a lot of money, making their transportation both risky and costly. Aircraft parts transportation needs special handling and immediate response. Aircraft engines are highly valuable with highly sensitive components. Therefore, adequate safety precautions need to be taken when transporting them. Keeping this in mind, safety was our priority.
Partnering with experts with specialist knowledge was the key. For shipping the aircraft engine, a dedicated vehicle with a large capacity was required to secure the cargo. With this type of high-value shipment, the question is not how much it will cost or how long it will take, but rather trustworthy partners who will be fully committed to the project till its delivery. We collaborated with experts, trusted shippers to provide services that comply with all the safety regulations to ensure that the parts arrived as intended.

A Transcontinental Shipment

Apart from all this, the shipment delivery location was in Belgium, Europe. This required cross-channel logistics support combined with inventive thinking and innovative strategy. The operations team closely aligned with the manufacturer’s guidelines to safeguard the integrity of the engine throughout the entire transportation process. The result was a secure transport solution with minimal hassles and maximum attention to detail.
CSS carried out this specialized operation for this cargo along with expert freight carriers and a dedicated team of logistic experts. We successfully delivered the aircraft engine securely and intact at the client’s location in Belgium. It was indeed a mammoth operation; at the end of the day right combination of top technology, expert human resource inputs and experience got the job “well done”. We completed movement with minimal loading time and maximum attention to detail.

PROJECT AT A GLANCE

The Water Treatment Package embarked on its journey to KSA from Kuwait , CSS Industrial Project Team moved this beautiful piece of Over Dimension Heavy cargo weighing 96 tons with dimensions of ( L26.19m x W5.34m H6.07m) which posed the main challenge for the move of city and port approach roads.

This OOG unit movement was facilitated with precise planning of CSS in co-ordination with our sub contractors after removal of overhead signboards / gantries en-route to port and the move was enabled under close coordination with Police for permission and escort. The move was accompanied by CSS private escorts / boots on ground supervision and delivery was made under the hook of the vessel at Shuaiba port using suitable multiaxle trailers.

EMPLOYEES OF THE MONTH

REJITH REMANI -Coordinator (CFS) Awarded by Jayandan PI -Team Leader (CFS)

PRAHLADAN KESAVAN – Sr. Forklift Operator (CFS) Awarded by Manish Kesavan, Manager, Operations-NVOCC & CFS

VINOD VISWANATHAN – Driver (Transport) Awarded by Jayasankar Vasudevan- Manager (Transport)

DP WORLD AND SAUDI PORTS AUTHORITY SIGN DEAL TO BUILD $133M LOGISTICS PARK AT JEDDAH PORT

Saudi Arabia, the Arab world’s largest economy, is focused on diversifying its economy away from oil as part of its Vision 2030 program. The kingdom is forecast to be a vital driver of global trade growth. Its exports are projected to expand at an average annual rate of more than 7 percent to $354 billion by 2030, Standard Chartered said earlier this year. “The strategic Vision 2030 framework includes the development of a prosperous and sustainable maritime transportation ecosystem that supports the Kingdom’s socio-economic ambitions and consolidates its status as a global logistics hub,” said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World. The Jeddah Islamic Port, which is strategically located on the Red Sea, has historically played a pivotal role in facilitating the movement of trade between the East and the West.

Logistics Park at the Jeddah Islamic Port

Further strengthening the deep ties shared between the UAE and Saudi Arabia, DP World and Saudi Ports Authority (Mawani) have signed a 30-year agreement to build a state-of-the-art, port-centric logistics park at the Jeddah Islamic Port. An investment value of more than Dh490 million ($133.4 million) aims to establish a 415,000 sq. m logistics park with an in-land container depot capacity of 250,000 TEUs (twenty-foot equivalent units) and a warehousing storage space of 100,000 sq. m.
The Authority’s move to develop a holistic logistics park will enhance the competitiveness of the Jeddah Islamic Port. The park will boost Jeddah Islamic Port in terms of:

Re-export activities
Help to reduce the time and cost of logistics for importers and exporters
Provide an integrated service platform linking port operations with last-mile activities.
Enable to offer processing, consolidation /deconsolidation, labeling, and fulfillment
Offer temperature-controlled storage for cargo
Advanced and eco-friendly e-services by integrating the operations of the South Container Terminal with the new logistics park.
Help raise the quantity of trans-shipped goods

DP World Managing the South Container Terminal

In April 2020, DP World signed a new concession agreement with Mawani to continue operating and managing the South Container Terminal at the Jeddah Islamic Port for 30 years. DP World has committed to investing more than Dh2.94 billion to expand and modernize the terminal. The overhaul project will take place over four phases and be completed by 2024.
The project will involve:

New infrastructure upgrades
Broadening of draft depth and quay
Installation of advanced equipment and technologies
Automation and digitalization programs
Decarbonization initiatives

The revamped terminal is projected to increase Jeddah Islamic Port’s container handling capacity from the current 2.5 million TEUs to 4 million TEUs. This will enhance Jeddah Islamic Port’s status as a major trade and logistics center on the Red Sea coast.

Metals and minerals, plastic and rubber, chemicals, and pharmaceuticals will dominate the kingdom’s exports over the next decade, with India, China, and South Korea being the principal export markets.

DP World makes inroads across the world

DP World is one of the world’s biggest operators of marine ports and inland cargo terminals, with gateways from London and Antwerp and hubs in Africa, India, Russia, and the Americas. The Dubai-based company has been on an acquisition spree as it attempts to become a more diversified and integrated logistics company. In the recent past, they have signed agreements with the Angolan government to develop the country’s trade and logistics sector and acquired South Africa’s Imperial Logistics to strengthen the port operator’s position in Africa.
The agreement to build a “port-centric park” at the Jeddah Islamic Port was signed under the patronage of Eng. Saleh bin Nasser Al Jasser, Saudi Arabia’s Minister of Transport and Logistic Services and Chairman of Mawani. The logistics park will expand DP World’s regional footprint and bring multi-modal logistics solutions to the nation. DP world being an end-to-end supply chain provider, will help build logistical services that will bridge the existing market gaps. This port-centric logistic park will empower to provide the best-in-class logistical services by collaborating with leading service providers.
“This partnership will connect the port’s operations to the new logistics park to offer end-to-end logistics services with high efficiency,” Omar Hariri, president of the Saudi Ports Authority, said.

HOW THE METAVERSE WILL REDEFINE THE SUPPLY CHAIN

What Is the Metaverse?

Metaverse has become very trending since Facebook changed its name to Meta. Though it was acknowledged as simply a name change initially, it did not confine itself merely to that factor alone. The Metaverse technology includes virtual and augmented reality, digital and physical worlds, and VR and AR. The Metaverse device’s access to PCs, game consoles, and mobiles are significant. This point defines Metaverse’s ability to revolutionize consumer behavior- a unique blend of gaming, social, entertainment, and e-commerce. Metaverse gives the user a store experience as well as comfortable customer service, all at the convenience of shopping at home.
Let us take the example of a customer buying a TV online. In a 3D immersive world, he gets to visit digital stores, get served by store employees, and personally interacts with the TV set he intends to purchase. Some big fashion houses like Ralph Lauren have their digital store to sell digital clothes and collections on the platform called Roblox which has an active 47 million users daily.

The Metaverse Effect on Digital Supply Chain

Many supply chains have already been engaging in certain digital transformations. Interestingly, with the coming of the Metaverse, these digital transformations seem so outdated as they are limited as they are only physical meaning. They do not give us the see and feel option, unlike the Metaverse, whose goal is to create a digital space that gets translated into the physical world. In this context, the question that arises is whether Metaverse will completely takes over and diminish the importance of the supply chain or will it enhance and redefine the supply chain experience. Let’s find out how Metaverse could bring a redefinition to the existing technology.

Metaverse Effect on Manufacturing

With the Metaverse making available 3D and virtual tools accessible to general consumers, it will ignite the ability to digitally simulate products, production processes, and factories to optimize the allocation of assets across the supply chain. It can also run production scenarios and provide operator training in a more immersed environment. It will facilitate a stop to physical manufacturing facilities, long downtimes, and learning curves in factories. Instead, it will push forward for more customized products that were challenging to produce cost-effectively in traditional factories involved in mass manufacture.

Metaverse Will Create Shortened Product Life Cycle

As the Metaverse helps in sharing ideas and ideals for collaboration, it will shorten the product life cycle for new products and increase the speed of development of a workable design

How the Metaverse Can Help with Efficient and Transparent Purchasing

The introduction of the Metaverse takes collaboration up to the next level. It improves collaboration across all tiers in the supply chain, not just with direct vendors vendor for innovating and cost engineering but also limitless and concurrent collaboration up the value chain. This connectivity makes the end-to-end chain more transparent and efficient, including effective cost negotiations between buyers and vendors. This wide-scale collaboration, detailed production optimized designs, and reduced margin of error for production leads to improved product quality and service and reduced customer churn and return rates. Furthermore, there are more chances of efficiencies owing to less travel to vendor locations and reduced costs for quality control.

Metaverse Brings Supply Chain Transparency

Both corporate and consumer customers opt for transparency on the environmental and collateral impacts of the supply chains. Here, the Metaverse will enhance supply chain transparency with 3D representations of how products are made, distributed, and sold. This leads to stakeholders gaining visibility into lead times, transit times, shipping delays, and even real-time shipping costs. This transparency and visibility will only increase trust and effectiveness in supply chains.

Metaverse Will Improve Warehouse Operations

As the Metaverse is a 3D World, the unlimited collaboration offered by the Metaverse will mean that every stakeholder, from worker onions to ESG and sustainability teams, will be involved in a better and more efficient warehouse design and optimal location, thus having a dynamic voice. This can be simulated, experienced, and improved in the Metaverse before the physical build, thus saving money and time from concept to reality.
If local bodies adopt Metaverse, they could review and approve new designs and proposals and copy the final approved design version to their records for archives as it provides a realistic environment where key operator training can take place without any disruption in the day-to-day operations and also test adjustments to warehouse flow and layout.
The use of Metaverse does not end there as better dynamic space modeling, slotting, and racking optimization are observed due to growth in SKUs or product characteristic change.
The immense capabilities of the Metaverse offer potential for huge benefits and applications. Its true worth happens only on how it improves the experience of its users and customers.

THE SEVEN RULES THAT WILL HELP IN UNDERSTANDING THE WORKINGS OF THE SUPPLY CHAIN

The pandemic threw the supply chain out of gear, making people sit and take note of the supply chain industry and how it can impact their lives.

So, what exactly is a supply chain?

Supply chains are networks that link producers to consumers, often with dozens of steps from beginning to end. The core job of supply chains is to match supply with demand; when things are going well, we tend to take them for granted. But as we have seen over the past 2½ years, this process can break down under stress.
We can understand why supply chains are in such turmoil if we know the seven fundamental principles that rule every supply chain.

Rule #1: The Presence of Several Layers in a Supply Chain

Supply chains have two parts – a production side and a distribution side. The production is where the final assembly of a product takes place, while the distribution side is where the products reach the buyer.
The disruption in the supply chain is evident at both ends, i.e., at the manufacturing or production side and the distribution side. In the case of the production side, where multiple parts are involved, companies turn to several suppliers to provide components. One of the best examples that can be cited is the case of a notebook computer that uses different companies to make the microprocessor chips, memory chips, display screen, keyboard, disk drive, battery, charger, etc. With several suppliers being involved and most of them not knowing exactly who is concerned, it’s hard to track the right supplier.
It’s almost like a layer cake. Companies end up with several tiers of suppliers. Layer-one firms supply them directly, layer twos supply layer ones, layer threes provide layers twos, and the train can be extended. The lower layer supplier might have shut shop at the start of the pandemic. However, the manufacturer might not be aware of this fact until the layer 1 supplier refused to deliver the parts.
On the distribution side, a simple supply chain might have several steps that connect a manufacturer to a retailer. The steps are bound to get compounded if the factory is far away. The hassles in the supply chain have happened on both the distribution side and the product side because companies ran out of parts, and on the distribution side, where shipping companies ran into bottlenecks due to such factors as labor shortages and congested ports.

Rule #2: Misinterpreting Sudden Spike in Demand

Demand forecasting is done based on past histories. But the pandemic created a spike in haywire. This was primarily because most people were into panic buying. This was the case with toilet paper and later exercise bikes. Also called the “bullwhip effect”, because of the amplification and oscillation in product volumes moving along the chain, looking like the cracking of a bullwhip. This is primarily because people make erroneous judgments about demand signals. The manufacturers add capacity, and suppliers stockpile the raw materials. With the delays in the chain, a flood of products comes down to retailers, which is when they decide to reduce future orders. The manufacturers slash production, leading to future shortages, and suppliers are left with raw materials.

Rule #3: The Just in Time Versus Just in Case Prediction

The bullwhip effect triggered the just-in-time production strategy. This was okay in cases where the suppliers and factories are closer geography-wise. This meant lean supply chains with better quality and less money getting tied up in inventory, leading to lower costs and better financial performance. However, this could not be worked on in scenes where the suppliers are spread worldwide. Scheduling deliveries just in time failed here. When demand spikes, bottlenecks start disrupting the international cargo shipments, and parts get delayed, which automatically results in higher costs.

Rule #4: Excess Demand Leads to Frantic Shortages

Ordering the raw materials over what is needed gives rise to two scenarios. First, they move in short supply or become harder to get. The second one is where the company gets stuck with excess inventory. Either way, much money gets spent. This does not mean you need to get off with the just-in-case prediction. It only means the right balance needs to be maintained. Communication is key here. It’s best if you are in open communication with the suppliers. It’s when people are guessing that they end up messing up the forecast signals.

Rule #5: Longer Distribution Tend to have more disruptions

Most of the distribution supply chain has several series of steps. This invariably results in many disruptions happening along the way. Before the pandemic, there was fair timing. But with labor shortages and several other bottlenecks, delays at one or two steps rippled the whole distribution chain.

Rule #6: Congestion Clogs Capacity

During the pandemic, container lines assigned more ships and containers to the trade lane owing to the high demand from US customers. But the increased number of ships and containers only froze the speed and capacity, which was otherwise on track. This resulted in higher freight rates and stuck inventory in the ships due to the traffic.

Rule #7: Unidentifiable Bottlenecks

Bottlenecks come in as ripples. When 100 ships are waiting to offload, it is easy to think that the problem is at the Los Angeles or Long Beach ports. But in reality, the problems caused by the distribution centers were closer to the consumers. Trying to increase ports’ capacity by running them 24 hours a day didn’t help because the problem was there was no place for the containers to go. Many warehouses were and are still chockablock with inventory, so they have difficulty unloading containers. That backs up the whole chain—to the ships sitting at sea.
The above seven principles will help understand how the supply chain works and disruptions. Several phenomena, from misread demand spikes to congestion and bottlenecks, have led to hindrances.

IMPERIAL’S STAKE INCREASES DOUBLE FOLD IN BOTSWANA

DP World-owned logistics firm Imperial has doubled its PST Sales & Distribution stake. PST is Botswana-based enterprise offering services like supply chain management, financial and administrative management, and sales and branding. With its origins in Botswana, this home-grown company has more than 30 years of experience in the field. Imperial has raised its stake from 38 percent to 72 percent, which came into effect on July 1, 2022.

Mohammed Akoojee, the Chief Operating Officer of DP World Logistics and Group CEO for Imperial, spoke about this move, “PST’s sound knowledge of the consumer landscape in Botswana, coupled with its comprehensive distribution and sales solutions, aligns well with DP World’s strategic objective of leveraging assets and logistics to create an integrated global supply chain – from the factory floor to customer door.”
He added, “PST further entrenches Imperial as the leading distributor of consumer goods in Southern Africa, providing brand owners with informed and unparalleled access to their end consumers by leveraging our in-market networks and in-country infrastructure.”
Johan Truter, the CEO of Imperials Market Access business, emphasized that PST has the infrastructure to provide a nationwide route to market solution and a team of product specialists that enables it to serve the entire trade universe and has unmatched local knowledge with all employees being local including top management.
Autash Arora, the Managing Director at PST, underlined, “This transaction further cements PST’s relationship with Imperial and bodes well for our vision of being the best FMCG distributor in the country and delivering well-known brands and household names to the people of Botswana.”
Imperial has highlighted that PST has the infrastructure to provide a nationwide route-to-market solution. PST also has an expert team of product specialists, enabling the business to participate in every category of the FMCG industry.

BOUNCED CHEQUES AND THE LATEST AMENDMENTS IN THE UAE

The new amendment to Federal Law No. 18 of UAE’s Commercial Transactions Law, 1993, regarding the decriminalization of bounced cheques and the partial payment of cheques, took effect from January 2, 2022, as per the directive of the UAE Central Bank. These changes align with the practice in countries such as France and the USA. Being a criminal offense before the amendment, the modifications have been enacted to make it a civil offense where people can discuss and settle the case amicably.

Cheques returned due to insufficient funds ha been decriminalized to a large extent, and criminal liability will only accrue in cases where the cheque has been issued for an illegal purpose, bounced as a result of being delivered in bad faith, or as a result of fraud or forgery, or has been deliberately written or signed in a way that makes them untenable. It may also accrue criminal liability if proven that:
1. The drawer had ordered the bank not to cash the cheque before the due date;
2. The drawer had closed the account or withdrawn the available balance before the due date.

Moreover, the previous beneficiaries of bounced cheques must notify a police station regarding the situation, providing details of the drawer, drawee, the cheque, and the bank where it was to be cashed. Before visiting a police station, the complainant should first ascertain in which area of the city the cheque was first submitted for clearing, as it is the police station in the corresponding area where the cheque was first submitted that shall have jurisdiction over the complaint.
Once the complaint is accepted, after review of the original cheque along with the return memo and other relevant documents, the cheque issuer, or the counterparty, in this case, will be notified by the police to come to the station for questioning. Once the police record the statements of all parties involved, they will prepare their report, and the complaint will be transferred to the Public Prosecution. The Public Prosecution has exclusive jurisdiction to initiate and prosecute criminal proceedings under AED 200,000/- by issuing a fine only. For cheque amounts over AED 200,000/-, the Public Prosecution will have to transfer the case to the criminal court for their review. If the amount is less than AED 200,000/-, then the case would be transferred to a civil court that could force him to pay the amount mentioned in the cheque along with a fine. At this point, the courts would determine whether or not an element of bad faith existed.

On the contrary, the new amendment enables the beneficiary to directly approach the court’s execution judge, after obtaining a certificate from the bank, to order payment of the full or partial payment of the cheque’s value or even enforce the right to seize the drawer’s assets, in an accelerated and easy procedure that preserves the rights of all parties involved. To that extent, partial payment of cheques has also been made mandatory, with the bank required to pay the drawee the partial amount if the amount in the account is less than the value mentioned in the cheque unless the drawee rejects such payment. In such cases, the bank shall follow the protocols for partial payment of Cheque value, as stipulated in the new amendment law.
As part of the changes, administrative penalties for issuing cheques without funds will also be toughened, including withdrawal of checkbooks from the transgressor, denying them the right to receive new checkbooks for a maximum of five years, and suspending their professional or commercial activity.
This move to amend the Commercial Transactions Law that decriminalizes bounced cheque cases are expected to come as a huge relief to hundreds of businesses that earlier had to pay hefty fines at risk of imprisonment without trial in the UAE.

BETTER COMMUNICATION IS THE SOLUTION FOR MEETING THE AIRFREIGHT VOLUME CRUNCH

Worsening ocean freight capacity issues is continuing without a pause.
Brandon Fried, executive director of Airforwarders Association (AfA) has spoken about the dire situation, The forecasted surge in demand for US air cargo capacity will be largely driven by a lack of sailing with ocean suppliers, but air cargo forwarders must “learn to be adaptable” in the current climate of already constrained airfreight capacity.
Better communication can help in managing an oncoming air cargo capacity crunch.

lighthouse-better-communication The US capacity crunch is expected to be driven by a perfect storm of canceled China to US sailings, congestion at US airports, limited warehouse space, labor shortage, and rising inflation, said Fried. Fried has, in fact, emphasized this factor to the Los Angeles Air Cargo Association (LAACA).

“The challenges for ocean carriers are well documented, and we understand that they are looking after profit margins, but multiple factors already constrain air capacity. Congestion at major airports exacerbates the strain on supply chains across the US.
To tide over these challenges, the air forwarding community should communicate well and learn to be adaptable.” said Fried.
The AfA launched its Airport Congestion Committee (ACC) to formulate realistic solutions to relieve airport congestion. The ACC is responsible for presenting findings to private, public, and government entities as workable policies for urgent new legislation.