lighthouse - May 2023

Chairman’s Message

An AI-powered bot, ChatGPT has taken the world by storm. More than a million people rushed to sign up for it within five days of rolling out the service. GPT stands for generative pre-trained transformer, and it can generate computer code, well-researched essays, and poems.

A McKinsey report published last year reveals that AI adoption has grown two-fold over the past five years. While many reacted with fear over Artificial Intelligence (AI) and Machine Learning (ML) taking over their jobs, there is great scope for improving business processes.

So, what are AI and ML?

In simple terms, artificial intelligence (AI) involves creating machines that can perform tasks that require human-like intelligence, such as decision-making, speech recognition, and natural language processing. Voice assistants like Siri and Alexa are based on AI technology, as our customer service chatbots pop up to help you navigate websites.

On the other hand, Machine learning (ML) is a type of AI that involves training algorithms to learn from data patterns and improve their performance without human intervention. ML finds applications in areas such as image and speech recognition, predictive analytics, and anomaly detection.

AI will become part and parcel of our daily lives as it is increasingly and seamlessly adopted into business and other aspects of society.

AI in Logistics

Early adopters highlight the transformative impact of AI in the logistics industry. AI removes biases while making decisions and produces insights from a sea of big data, helping an executive to make informed decisions.

And that’s just the beginning.

AI will automate demand forecasting, route optimization, and inventory management tasks, allowing companies to work more efficiently. Predictive analytics will foretell demand and identify patterns, allowing companies to make better-informed decisions.

Some of the benefits of incorporating AI into logistics operations are:

Efficient Operations: AI can automate tasks like demand forecasting, route optimization, and inventory management, enabling companies to operate more efficiently.

Lower Operational Costs: By automating tasks and detecting inefficiencies, AI can assist companies in reducing labour and transportation expenses.

Better Bottom Lines: AI can help companies increase revenue and enhance their bottom line by boosting efficiency and reducing costs.

Better Decision-Making: AI algorithms can analyze data and identify trends and patterns, providing valuable insights that inform strategic decision-making.

Improved Customer Service: AI can help companies improve their customer service by offering real-time tracking information to customers and enhancing responsiveness to customer needs.

Meeting Sustainability Goals: Going green has become crucial in the logistics industry. AI can help achieve this by cutting carbon emissions, preserving resources, and lowering waste. AI-powered transportation management systems can optimize routes, reducing fuel consumption and significantly reducing carbon emissions. AI-enabled sensors and IoT technology can monitor and analyze data in real time, enabling companies to quickly identify and resolve issues and improve their supply chain’s overall performance.

A highly traditional sector, the logistics industry is going through a rehaul with the adoption of technological innovations. In an industry that once believed in settling deals with handshakes, disruptive forces like AI and ML are improving efficiencies, cutting costs, and elevating customer experiences. Autonomous trucking and robotic warehouses will soon be the norm.

At CSS, we have always been quick to adapt to the industry’s changing norms to offer our clients best-in-class services. That’s just one of the reasons why we are a tier-one logistics and freight forwarding partner in this region and beyond.

The holy month of Ramadan has drawn to a close with the auspicious Eid celebrations. This year, we aligned with the non-profit AKCAF Association under Community Development Authority (CDA) and Islamic Affairs for the mass distribution of iftar boxes during the month of giving and gratitude. As part of our CSR activity, the boxes were given at Al Quoz labour camps throughout Ramadan.

I extend my warmest Eid al-Fitr and Vishu greetings. May we celebrate this season keeping in mind the importance of unity, compassion, and generosity towards one another.

THE CHAMPIONS OF THE CSS GROUP T20 CHALLENGE

Work often takes precedence over everything in our lives. However, paying too much importance to our professional life could take a toll on us. Including fun activities at the workplace is the key to bringing in positive effects like reduced stress, lower risk of burnout and a greater sense of wellbeing. At CSS, we understand the significance of work-life balance in the lives of our employees. CSS cares deeply about the physical, emotional and mental well being of our employees. Keeping this in mind, we organized a T20 Challenge for our internal teams.

The T20 Challenge

The Champions of CSS Group T20 Challenge was held on the 18th and 19th of March at the spectacular JMR sporting club, in Sharjah. The T20 matches commenced at 14:00 hrs. on both the days. The theme of the CSS Group T20 was “Innings to network”. These matches were planned so that our teams could interact with each other in a fun manner and develop a team spirit. All our team members were warmly welcomed for the event with their families. Transportations arrangements were also taken care of, so that the teams could enjoy the day to the fullest. Before the teams started playing the matches, they were encouraged to join the event with a “Team Spirit”.

The T20 Teams

Four teams were formed to compete against each other in the T20 challenge. Team one was CSS HQ (Captained by Ranjith H), team two was CSS eLogix (Captained by Jassim), team three was ISS Relocations (Captained by Sooraj) and team four was CSS Kingston (Captained by Niji). Each of the teams was provided with a dedicated coach and a team manager to gear up the teams for the T20 challenge matches.

The Winning Team: CSS HQ

The teams put up a competitive yet friendly fight against each other. A strong team spirit was visible in all the players who thoroughly enjoyed the cricket matches. The winning team of the T20 challenge was CSS HQ. CSS eLogix procured the second prize, while ISS Relocations and CSS Kingston took the third and fourth spot in the T20 tournament.

The Committee Behind The T20 Event

A committee was formed to make the T20 Challenge a success. The members of this committee were T.S Kaladharan, Krishna Kaladharan, Don Raveendran, Susanth Shekhar, Unnikrishnan K, Alan Ramesh, Shabeja Rose and Radhakrishnan Machingal. Each of these members put in their time and effort to make this event a huge hit. This team carefully planned each and every detail. Right from executing the event, forming the teams, planning the entertainment stalls and charting out the transportation, all the details were seamlessly taken into account to make sure that all the employees and their families enjoyed the T20 Challenge to the fullest. Several fun stalls were put up at the sporting club.

Kids Entertainment Corner

While the T20 matches were going on, fun and frolic was planned for everyone, especially the kids. There was a dedicated Kids Entertainment Corner, which catered to the playful needs of the little ones and ensured that they were never faced with boredom. All the kids enjoyed the bouncing castle and slide. There were also pony rides for the kids to explore.

Cotton Candy and Popcorn Counter

Everyone loves sweets, especially melt-in-the mouth cotton candy and crunchy caramel and salted popcorn. This is why we included this cotton candy and popcorn stall. The cotton candy was an instant hit with a queue of people immediately lining up to get their sweet candy. The popcorn machine kept on popping with both salted and sweet variants, which everyone liked. Kids and adults enjoyed munching on popcorn and cotton candy as the T20 matches were played.

Balloon Twisting

Another star entertainment stall for the kids was Balloon Twisting. The skilled balloon-twisting artists at the stall impressed our little ones with balloons turned into the shape of dogs, butterflies, flowers, windmills and even horses. It was indeed a fun sight to watch the kids at the event carrying balloons of different shapes and sizes with a smile on their faces.

Art and Craft Station

Since kids of all age groups love art and craft, a special art and craft station was set up. This stall had all the required materials for creating beautiful crafts and helped the little ones create some amazing art with paper, glitter and paint. The kids were entertained for hours at the art station and proudly displayed their creations to their parents.

Face Painting

A stall for Face Painting was put up, where everyone was free to go and get their face painted with their favorite design. This stall was an instant hit with both kids and adults. Almost everyone wanted to get his or her face painted. From superhero designs to butterflies, flowers and animals, there was so much laughter and joy at the Face Painting stall.

Music Medley and Bollywood Dance

Music is indeed the heart and soul of any event. Keeping this in mind, CSS planned for a Musical Medley along with Bollywood Dance songs. There was a dedicated DJ to mix up the tracks and add catchy beats. Everyone at the event, both young and old found himself or herself tapping their feet on the dance floor to the joyful music played at the station.

Live Food

No event is complete without food. There was an enticing live food stall that displayed how the dishes were prepared. Whether it was starters, main course dishes or desserts, every dish was cooked to perfection with mouthwatering taste. There was a wide range of dishes to choose from.

Chayakada

Another outstanding stall at the event was the “Chayakada” which served authentic lip-smacking tea to one and all. It was a pure delight for everyone at the event to drink this traditionally prepared tea and watch the matches.

Team Spirit and Networking

The two-day T20 challenge event ended with fond memories and a fostering of a team spirit among our employees who thoroughly enjoyed this opportunity to network with each other and understand the importance of supporting each other.

TURKISH CONSUL-GENERAL PAYS CSS GROUP HEADQUARTERS A VISIT

The honorable Consul-General of the Turkiye in Dubai and Northern Emirates, İlker Kılıç visited the Group Headquarters of CSS on February 17th, 2023, and presented our esteemed Chairman T.S. Kaladharan with a thoughtful memento as a kind gesture towards the services offered by CSS in collecting, organizing and delivering tons of relief aids to Turkiye.

The Catastrophic Earthquakes in Turkey and Syria

On February 6th, 2023, an earthquake with a magnitude of 7.8 occurred in Turkey, near the northern border of Syria. This catastrophic earthquake was closely followed by another earthquake of 7.5 magnitudes nine hours later. These massive earthquakes were the most devastating to hit Turkey and Syria in over 20 years. The loss was substantial regarding lives, injuries, homes, and displacements. From millions of people being displaced from their homes to thousands of buildings collapsing, Turkish and Syrian citizens were recovering from this untimely disaster. The state authorities in Turkey and Syria declared a level-4 emergency asking for international assistance, rescue teams, relief work, and aid.

CSS Group Immediately Steps Up to Help

The CSS Group quickly stepped up to this urgent need and joined hands with Esskay Logistics. Under the guidance of the Turkish Consulate and the Turkish Business Council, CSS opened the doors of its warehouse in Al Quoz and charted out an extensive collection drive to collate, sort, and dispatch tons of relief material to Turkey.

3-Day Drive at the CSS Warehouse

A three-day relief drive was organized at the CSS warehouse. Thousands of UAE residents offered their donations at the warehouse. The staff at the CSS warehouse worked round the clock. The CSS staff has worked selflessly, from receiving gifts to listing packaging and arranging logistics to seamlessly moving the relief items from Dubai to Turkey. Winter clothing for adults and children, baby food, canned food, personal hygiene products, diapers, sanitary napkins, bedding, tents, heaters, thermos, blankets, medicines, sleeping bags, etc., were some of the items that were collected and packed at the CSS warehouse. The collection drive was a combined campaign by the Turkish Consulate in Dubai, the Turkish Business Council, and Turkish Airlines.

Working Together for a Cause

CSS partnered with Esskay Logistics LLC in organizing and collecting aid for Turkey and Syria. CSS and Esskay Logistics worked as a team with the people of UAE who came from different walks of life and age groups. An intensive three-day public donation drive was meticulously carried out. This successful drive showed us what can happen when people join together for a good cause.

Turkish Consul-General Thanks the CSS Group

On February 17th, 2023, the honorable Consul-General of the Turkish Business Council in Dubai and Northern Emirates, İlker Kılıç visited the Group Headquarters of CSS. The Turkish Consul-General presented our esteemed Chairman, T.S. Kaladharan, with a memento, an authentic and handmade Iznik Çini ceramic tile. This was a thoughtful gesture towards CSS’s assistance in arranging, organizing, collecting, and delivering over 3500 cm of relief donations from thousands of UAE citizens. CSS thanked the Turkish Consul-General for recognizing their efforts and for his kind words on the great impact the contributions made to the people of Turkey and Syria.

Corporate Social Responsibility (CSR) is the Core of CSS

CSS is both honored and pleased about playing a significant role in extending a helping hand to Turkey and Syria. Corporate Social Responsibility (CSR) is the heart of our belief system. Be it our stakeholders, the public, or even ourselves. We strive to be socially accountable. Our CSR initiatives have contributed to social, economic, and environmental causes over the years. The CSS group has always come to the aid of meticulous efforts, planning, and resources for the needy. As a part of our CSR mission, we have always been striving to offer aid during natural calamities in and around our area. Our Honourable Chairman, T.S. Kaladharan, has always encouraged the teams at CSS Group to offer help to anyone who may need it. As a part of our disaster relief strategy, we were happy to open the doors of our warehouse in AL Quoz to collect, package, and deliver relief materials for Turkey and Syria.

CSS is Proud of Playing a Part in this Noble Cause

CSS has always been socially responsible towards its neighbors and ready to offer assistance in the wake of disasters. During the aftermath of the earthquakes in Turkey and Syria, CSS worked hand-in-hand with the Turkish Consulate and Turkish Business Council. Not only did CSS provide its warehouse as a part of the disaster relief program, but it also organized a collection drive among UAE residents to collect relief materials. Disasters like the recent earthquakes that hit Turkey and Syria remind us that we are indeed world citizens, whether we like it or not. Showing kindness and compassion to others during challenging times has become the need of the hour. At CSS group, we are proud of being a part of this noble cause and coming together as a community to lend a helping hand.

CSS GROUP – 5’S SOCCER TOURNAMENT

CSS Group – 5’s Soccer Tournament kicked off on Saturday, 25th February, at Al Barsha. The tournament had two groups, Pool A and Pool B, each consisting of five teams. Each team came attired in their team jersey and were pumped up with gusto in their hearts to lift the 5’s Soccer trophy. The matches kicked off at 5 pm and concluded at 11 pm.

Ten teams participated:
01. CSS Kingston – Sharjah
02. CSS Abu Dhabi
03. ISS Relocations – Dubai
04. ISS Relocations – JAFZA
05. CFS & Transport – JAFZA
06. SCM – JAFZA
07. CSS eLogix
08. CSLC – Team A
09. CSLC – Team B
10. CSS HQ

Sports – A Great Team Builder

Sports can be an excellent team-building tool, encouraging collaboration, communication, and camaraderie among team members. Playing in a sports team requires individuals to work together towards a common goal, which can foster a sense of unity and shared purpose.

Furthermore, teams who engage in sports share a common experience that can bring them closer. This shared experience can help create a sense of camaraderie and can provide a foundation for building stronger relationships. Playing sports requires constant communication between team members. Effective communication is essential for winning games and can help improve relationships and build trust among team members.

Teams often face unexpected challenges that require quick thinking and problem-solving skills. Working together to overcome these challenges can help build teamwork skills and improve the team’s overall effectiveness. Healthy competition can be a powerful motivator for team members. Competing against other teams can help build a sense of team identity and allow team members to showcase their talents and skills.

The soccer tournament at CSS

At CSS, team-building activity is an essential part of our organizational culture. In the past, we have engaged our employees in various activities to promote teamwork, collaboration, and improved productivity and job satisfaction. Outdoor activity has always garnered great enthusiasm. The 5’s Soccer Tournament is a testament to this belief.

By 5 pm, playground was abuzz with the various teams from CSS, their cheerleading squads, and spectators. With fresh snacks and beverages available at the field, the mouth-watering aromas from the live counters of shawarma, anticipation, and excitement filled the air at Al Barsha. It was an entertaining and exhilarating evening for players and spectators alike.

Soccer – A Game of Skill and Strategy

Soccer is a sport that requires a combination of physical and mental skills, including speed, agility, endurance, coordination, and strategic thinking. Players must be able to make split-second decisions on the field and work together as a team to outmanoeuvre their opponents. Soccer is a team sport that requires strong teamwork and communication skills. It was important for each of these teams to establish clear goals and ensure everyone understood their roles and responsibilities. This helped to ensure that everyone was working towards the same objective and could reduce confusion and conflicts within the team.

The Winners – CSS eLogix

Team eLogix proved to be the overall champions of CSS Group – 5’s Soccer Tournament. Their teamwork, determination, and indomitable spirit are truly commendable. Their hard work and perseverance paid off in the end. The dedication and commitment of each and every member of the team were truly noteworthy!

The runners-up at the tournament were CSS HQ and CSS Abu Dhabi. CSS -HQ was in second place, while CSS Abu Dhabi came third. Both these teams were fully invested in their game, motivated to do their best, and proved to be worthy opponents. They took risks, were courageous, and had a never give up attitude till the end.

Playing a sport with passion is more than just winning or losing. CSS HQ and Abu Dhabi team members played with their hearts, embodying the true spirit of the game!

By participating in this friendly football match, employees learned to work together towards a common goal, build trust and camaraderie, and develop a sense of unity and shared purpose. They also learned to communicate effectively on and off the field, which can now translate to improved communication in the workplace.

Sports For Better Productivity and Job Satisfaction

Furthermore, playing soccer or any sport can greatly relieve stress and improve mental health. Such exercise and physical activity have been shown to reduce anxiety and depression, improve mood, and increase overall well-being. The tournament has also motivated many to adopt a healthy and active lifestyle, which can lead to improved productivity and overall job satisfaction.

When you play any sport passionately, you experience a sense of joy and fulfillment that comes from knowing you have given it your all. They felt alive and energized, and the challenges and obstacles they faced on the field have become opportunities for planning, growth and learning. Many more such tournaments have been planned for the year. Each team is working hard, learning from their previous mistakes and improving their skills to increase chances of success in the future.

RETAILERS ARE REAPING SIGNIFICANT COST SAVINGS ON OCEAN TRANSPORT

Lower shipping rates are bringing relief to retailers struggling with supply chain disruptions. Retailers across the globe are reporting significant cost savings on ocean transport, as lower shipping rates provide a welcome respite to businesses working with supply chain disruptions.

Retailers use reduced shipping rates to cut costs, boost profits, and decrease consumer prices. This trend is expected to continue as demand for shipping services remains high due to the ongoing pandemic-related disruptions.

Retailers, especially those in the United States and Europe, have been struggling with supply chain disruptions due to the pandemic, including port closures, container shortages, and a shortage of truck drivers. These disruptions have led to increased shipping costs and delayed shipments, putting a strain on businesses already struggling with reduced consumer demand.

The average price for Asia-to-U.S. container trade has “fallen as dramatically as we’ve ever seen it fall,” said Jon Cargill, senior vice president, and chief financial officer of Hobby Lobby Stores Inc.

However, recent reports suggest that ocean transport costs are declining, providing some much-needed relief to retailers. The cost of shipping a 40-foot container from China to the United States has fallen from around $16,000 earlier this year to around $10,000 in recent weeks. This represents significant cost savings for retailers that rely on ocean transport to move their goods.

Retailers Respond to Lower Shipping Costs

Many retailers are responding to the lower shipping costs by adjusting their shipping strategies, including increasing the number of orders they place with their suppliers to take advantage of the lower rates. Some retailers also take advantage of more flexible shipping options, such as smaller containers, to save money on shipping costs.

“In 2022, it was begging, borrowing or stealing to get a meeting with an ocean freight liner,” said Michael Shaughnessy, senior vice president of operations and supply chain at Christmas tree seller Balsam Brands Inc. “Everyone wanted to talk to us this year.” Mr. Shaughnessy said Balsam Brands expects to sign contracts in the coming weeks at a discount of about 75% compared with last year’s prices and roughly in line with 2019 rates.

Lower shipping costs benefit retailers and consumers, as some retailers pass on cost savings to customers by reducing product prices. This is particularly true for retailers that rely heavily on imported goods, such as furniture, electronics, and apparel.

Spot market rates have crashed more than 90% from pandemic-era highs as shipping demand has declined. The average spot rate to ship a container from Asia to the U.S. West Coast as of Thursday was $1,289, according to Norway-based transportation data specialist Xeneta, about $668 lower than the contract price.

Kaitlyn Glancy, head of North America for digital-focused freight forwarder Flexport Inc., said companies that value the reliability of cargo flow and consistency in pricing are willing to commit a portion of their imports to rates fixed to contracts. But Ms. Glancy said many of Flexport’s customers are still sitting on inventory that cost $20,000 a box to import last year and are willing to play the spot market to boost profits.

“What we’re hearing more and more is the customer is saying, ‘Look, cost is still king for us,’” Ms. Glancy said.

The Future of Ocean Transport Costs

Despite the recent cost savings, some experts warn that retailers should stay active, as shipping rates could rise again soon. Factors such as ongoing pandemic-related disruptions, weather-related issues, and political instability could all lead to increased shipping costs in the months ahead.

U.S. container imports in February were down 25% compared with 2022 and 0.3% lower than February 2019, according to Descartes Datamyne, a data analysis group owned by supply-chain software company Descartes Systems Group Inc.

Patrik Berglund, the CEO of Xeneta said some shippers are drawing out talks to the last possible minute, or going beyond traditional deadlines, as spot rates continue to fall and drag down contract rates. Mr. Berglund said many carriers opened negotiations with customers by seeking about $4,000 to ship a container on routes linking the Far East to the U.S. West Coast. The average contract rate to ship a box on those routes as of Thursday was $1,957, according to Xeneta, 71% lower than last year. “And it’s still sliding downwards,” Mr. Berglund said.

Lower ocean transport costs provide a much-needed boost to retailers struggling with supply chain disruptions. However, retailers need to remain vigilant and prepared for the possibility of increased shipping costs in the future, as supply chain disruptions continue to pose a significant challenge for businesses across the globe.

CSR ACTIVITY – VEHICLE FOR OLD AGE HOME

CSS GROUP PROVIDES IFTAR MEALS TO BLUE COLLAR WORKERS IN DUBAI

During the holy month of Ramadan, the CSS Group wished to help the less deprived and provide them with free and delicious Iftar meals. As a part of our CSR activity, the CSS Group collaborated with Community Development Authority (CDA) licensed non-profit social organization AKCAF Association for mass distribution approved by Islamic Affairs to the workers living in Al Quoz and Sonapur labour camps in Dubai.

We are proud of our CSS staff, who came together for this noble cause and pooled their contributions to make this event successful.

Iftar – A Time to Show Kindness

Iftar is a fast-breaking evening meal during the holy month of Ramadan. When the sun sets, Muslims gather to relish Iftar after an entire day of fasting. As Share and Care is the motto, CSS recognized this need among blue-collar workers. The CSS Group stepped up to this need by offering free Iftar meals.

Collaborating to Help

At CSS, we have always wished to create a positive impact on the people around us, especially during the holy month of Ramadan. Hence, the CSS Group collaborated with Community Development Authority (CDA) licensed non-profit social organization AKCAF Association for mass distribution approved by Islamic Affairs to the workers living in Al Quoz and Sonapur labour camps, Dubai.

CSS Staff Contributes Generously

The staff at CSS was invited to contribute generously to this noble cause. Several of our employees decided to stretch out their helping hand and contribute towards the Iftar meal distribution. Share and Care values, as inculcated within us, had a positive result, and our team generously contributed to this noble deed.

CSS Marketing Team Organizes the Event

The CSS marketing team initiated this kind and thoughtful event. Ms. SK, Mr. Alan and Ms. Manju have worked hand-in-hand to make the Iftar meal distribution a successful event.

Volunteers at the Iftar Meal Distribution

Some of the CSS Staff, namely Mr. Jayasankar, Mr. Babu, Mr. Aneesh, Mr. Rajeesh, Mr. Gokul, Mr. Amal and Mr. RK offered to help during the Iftar meal distribution. They willingly put in their time, effort and energy to make this event successful.

At CSS, we are thankful for our team members participating in this noble act.

CSS Makes a Difference

CSS is proud to have made a difference in the lives of blue-collar workers in Dubai and brought a smile to their faces during this holy month.

As the popular quote from Ben Carson says, “Happiness doesn’t result from what we get, but from what we give.”

A YEAR ON…

1. What have been the challenges of the first year of operations?

CSS eLogix is ecstatic to announce that we have completed one year in E-commerce fulfilment operation. The big E-commerce push post-pandemic has been enormous due to the comfort and ease at which an individual can shop anything online with just a click of a button. This has only fuelled the demand for online shopping world-wide and here in UAE, online shopping is the new norm or vogue. We are new players in this sector but one primary objective for us as a business unit was to elevate the customer experiences and better than other fulfilment companies. That has been our tag line for our operations and as a novice player, we have gone above and beyond to reinvent the wheel when it comes to customer satisfaction and operational efficiency.

Our operational efficiency in pick and pack accuracy has been close to 99.7% but, if the customer service is below par, then as an e-commerce fulfilment company we have failed. So, it is imperative that both operations and customer satisfaction go hand in hand without failing on either aspect. When I look back, we had several obstacles, but we faced it with an optimism to be one step further than our last benchmark. Although we were thorough in our market research and understood what was required for us to get a foothold, we were always competing against ourselves to meet the daily challenges and achieve the targeted milestone.

**Britto Satheesh**
Director – CSS eLogix

The high standards we placed on ourselves have helped our clients to generate trust on us with their commodity and as we mark one year, I am proud to say that CSS eLogix that started in a little fulfilment room has now its own state-of-the-art fulfilment centre, product experts, multi-lingual customer service team, advanced omni-channel ERP software and professionally trained Last Mile Partners (LMD).

Customer service satisfaction is directly proportional to which LMD partner we use in the market. Within a year in operations, we recognized the perfect LMD that suited most demands of our customers. Therefore, our research based on their delivery success and locations data gave us an understanding of a successful LMD we can rely on. CSS eLogix’s data collected over time ensured that we are partnered only with the best Last Mile delivery partners who we can trust with our vision and objectives towards our clients.

2. How many clients do we service now?

Our first step into the market as an e-commerce fulfillment business started off with a strong and successful Top Tier Client. Working with them and their team has impelled us to the limits from the very word ‘Get-Go’ and this aided us in setting high standards and benchmarks on a regular basis. It has been a steep learning curve and we were always humbled and proud to work with our very first client. However, this did not put the brakes on instead propelled us to be hungrier for greatness.

3. What are the plans for the future?

Our plans for the future are in conjunction with the same speed and commitment to which this great country, UAE moves. In UAE, everything happens in lighting speed and in the blink of an eye, there are new developments in every corner. Such is the commitment shown by the UAE government towards its residents and as such there is no slowing down to the efforts put onto make an individual’s life at ease. We want to be in touching distance with technological advancements and contribute more to Dubai’s economy through a fully efficient and functional e-commerce fulfilment centre. In order to achieve this, my vision for the future is categorially simple by focusing on quality over quantity, technology, and our last mile delivery partners.

Strategy 1 : Improve Quality and provide Quality

Success is an art that can only be achieved through perfection, but most business do not heed the quality that is required for being successful here in Dubai. I am here for the long haul and for CSS eLogix to be regarded a success the right quality control mechanisms should be in place. Otherwise, the competition and compliance are so stiff that your business might be challenging to grow. I want to emphasize more on quality service by hiring experts, identify crucial KPI’s for improvement and recognising critical areas to meet strategic objectives.

Strategy 2 : Technological Advancement

One of the key agendas of fulfilment service development for any online shopping business in Dubai should be ensuring faster last-mile delivery. Logistics is a big problem, not only in Dubai but also in the Gulf region in general. Our in-house developed software ensures, there is real time delivery tracking information provided for the client’s ease but even then, deliveries across UAE can get tad bit difficult. This is specially the case when a client do not wish to disclose their private address. However, in the last 1 year of operation, CSS eLogix has been looking for ways to improve delivery services through ultra modern expertise. As a result, we have partnered with What3Words (W3W) – an app that transforms a physical address of an individual’s home into 3 words. These 3 words can be any word generated by the W3W app and the novelty here is that the whole earth is divided into tiny square meters. Each Square represents 3 words and effectively this square differentiates a building’s front door to that of back door giving accurate shipment drop-off points. This is relatively at its primary stage but partnering with W3W, we are aspiring to raise awareness of such technological advances with all our clients. Using such geo-tagging apps will increase the speed &accuracy and reduce the returns in delivery system.

Strategy 3 : Contribute to e-commerce ecosystem

Over the years and especially post-pandemic Dubai has built a fantastic eco-system to cater for online business activities. We want to be major players going forward in this eco-system and as a result we are always striving to bring innovative ideas, learn from the best and improve in terms of services and provide extraordinary customer satisfaction. Here at CSS eLogix Fulfilment centre our services must provide the benefits of the best and upcoming tech trends to support e-commerce. We have a commitment towards our clients and hence I am hoping CSS eLogix will bring in the latest technological additions to keep up with the bubbling trends within the e-commerce industry.

U.S. IMPORTERS LEVERAGE THE NEW SHIPPING RULES TO BATTLE LATE FEES

The global shipping crisis has left many importers facing shipment delays, increasing costs and missed deadlines. However, new shipping rules enforced by the Federal Maritime Commission (FMC) have given U.S. importers the power to push back against unfair late fees.

The Global Shipping Crisis

The global shipping crisis began in 2020 as the COVID-19 pandemic caused disruptions worldwide. The closure of factories and ports resulted in a significant reduction in shipping capacity, leading to a surge in demand for shipping services. Additionally, a shortage of shipping containers and a backlog of ships waiting to dock at ports created further delays and increased costs.

The shippers of furniture, electronics and clothing claim they are among the worst hits during the pandemic. Ocean carriers added hefty fees for delays in picking up and returning containers, but the importers had no chance of moving the boxes because of circumstances beyond their control.

They are raising their voices against the prohibitive fees. “I don’t like being a victim, and I felt like I was victimized without recourse,” Ryan Frey, an importer of lithium batteries, said of the fees. Lion Energy LLC’s company imports about 800 containers a year, and he felt that his company had little power to dispute the charges.

The Role of the Federal Maritime Commission in Reducing Late Fees

The Federal Maritime Commission (FMC) is an independent agency regulating the U.S. international ocean transportation system. In response to the shipping crisis, the FMC has implemented new rules to reduce the burden on U.S. importers.

One of the key changes introduced by the FMC is a prohibition on shipping lines charging detention and demurrage fees when shippers cannot pick up their cargo due to factors beyond their control. Shipping lines typically charge these fees when cargo is left at a terminal or port for longer than the allotted time.

Under the new rules, importers are only responsible for detention and demurrage fees when they can retrieve their cargo within the agreed-upon timeframe. If delays occur due to factors beyond their control, such as port congestion or equipment shortages, the shipping lines are prohibited from charging fees.

Importers Fight Back Against Unfair Fees

The new rules introduced by the FMC have given U.S. importers the power to push back against unfair late fees. Importers who have been charged fees for delays beyond their control can now file complaints with the FMC, which has the authority to investigate and take action against shipping lines that violate the new rules.

The new rules have also led to increased transparency in the shipping industry. Shipping lines are now required to provide detailed information on their detention and demurrage policies, making it easier for importers to understand their rights and dispute unfair fees.

According to freight forwarders, who handle cargo on behalf of shippers, carriers, and private terminal operators have been known to withhold containers until fees are paid, leaving forwarders and their customers with no choice but to pay and dispute the charges later. Lion Energy’s Chief Operations Officer, Mr Frey, confirmed that the Utah-based company had paid fees ranging from hundreds of dollars to over $10,000 per container, in addition to already high shipping rates in 2021 and the first half of 2022, often for delays that were outside the company’s control.

Improved and Faster Claims Process

The new shipping law endorses an FMC rule published in 2020, stipulating that late fees should only be used to incentivize importers and exporters to keep freight moving. The rule also states that if a shipper cannot move a container due to factors such as bottlenecks, charges should not be applied.

Previously, shippers could dispute late fees, but the new law now provides a more expedited claims process through the FMC, allowing shippers to challenge charges quickly and shifting the burden of proof to carriers to prove that fees are valid.

While John Butler, President and CEO of the World Shipping Council, a trade group representing carriers, welcomes the expedited claims process, he is concerned about proposed rule changes that may further weaken carriers’ and terminal operators’ ability to collect fees. He worries that if there is no real incentive for carriers, port congestion may reoccur even without massive cargo increases.

On the other hand, Rich Roche, SVP at Mohawk Global Logistics, who helps shippers dispute charges, said the new shipping law changes simplified and strengthened the claims process for shippers.

Additionally, FMC’s involvement added “teeth” that encouraged carriers to settle claims. Since the law’s enactment, the FMC has received around 250 complaints under the new expedited process, with over 80 complaints qualified for review. This led to almost $800,000 being refunded or waived.

During the annual TPM23 shipping conference in Long Beach, California, sessions on the tightened shipping rules attracted standing-room-only crowds to learn how to dispute charges and file complaints with the FMC. However, some shippers have been sceptical about the FMC’s willingness to intervene in disputes, leaving many U.S. companies to feel powerless to a small group of Asia- and Europe-based carriers that control most of the world’s ocean trade.

During one conference session, Alison Leavitt, Managing Director of the Wine and Spirits Shippers Association, expressed her scepticism, saying, “To be blunt, I think they were in the pocket of carriers for many, many years. That has vastly changed. They are now looking out for the interests of the USA shipper.”

In an interview, FMC Chairman Daniel Maffei shared that the new law has authorized significant funding increases for the FMC, allowing it to expand its workforce by approximately one-third and boost its oversight, enforcement, and investigative activity. He said, “In the last couple of years, we have gone from being, for the most part, a very passive regulatory agency to a very active one.”

The expedited complaints process applies only to charges assessed after the shipping act was passed. However, shippers can still dispute fees that predate the law under earlier FMC rules. Lion Energy’s COO, Mr Frey, intends to challenge as many of the charges as possible, both before and after the act passed, saying, “I am going to audit the hell out of it.”

Protecting Shippers’ Interests

The new shipping law provides an expedited claims process that empowers shippers to challenge charges quickly, shifting the burden of proof onto carriers to prove that fees are valid. While some carriers have welcomed the expedited claims process, others remain concerned about proposed rule changes that may further weaken carriers’ and terminal operators’ ability to collect fees.

Despite this, the FMC has seen a significant increase in claims filed and settled since the law’s enactment, demonstrating the agency’s commitment to actively regulating the industry and protecting the interests of U.S. shippers.