Cargo Community System CSS Presented by Nityam Khosla

Cargo Community System CSS Presented by Nityam Khosla, President, Consolidators Association of India (CAI) 28 th October’ 2015 1

Table of Content Cargo Community system • Introduction Export Consolidation Process • Business Summary • Process Interaction • ‘As is’ and ‘To be’ Process Import Consolidation Process • Business Summary • Process Interaction • ‘As is’ and ‘To be’ Process Future Vision • Challenges foreseen • Our Expectations – Way forward 2

Introduction Centralized Port Community System (CCS) is an initiative by Indian Ports Association (IPA) intended to provide a single window system for the Port communities in India to securely exchange the documents and information electronically with their stakeholders involved in the maritime transport and logistics chain including the trading partners and government agencies. It also expected to provide global visibility and access to the central database to all its stakeholders through internet based interfaces. 3

Export Consolidation Process Business Summary Process Interaction ‘As is’ and ‘To be’ Process 4

Sea Export Consolidation Summary of the activities carried out by various departments: Operations • Cargo Receiving Accounts • Survey and Labelling Sales • Sales visit / enquiries • Negotiation with Vendors / customers • Quote creation • Order finalization • Container stowage and planning Documentation • Issuance of HBL • Equipment procurement and placement • Invoicing • Inter-CFS transfer • Freight Cargo manifest and dispatch • Stuffing • Release of MBL • Document scrutinization • Freight audit • Receivable monitoring • Brokerage commission processing • Movement to Port • Onboard 5

Sea Export Industry Stakeholder Interaction ‘External parties’ involved in the Sea Export Consolidation process at each stage Sales Industry Stakeholders Input Output Operations & Planning Customers (CHA / Local or International forwarder / Direct Shipper Overseas Agents Shipping line Customs Nominated CFS Transporters Marine Surveyors Cargo details Shipping bill Carting slip Labelling Survey Report CLP / Shipping Bill Rate Quote Booking Details Carting Report Container Procurement Stuffing Container – Customs CLP Movement report Customer service / Documentation Shipping Line Customers Sailing schedule HBL docs / Supporting docs CLP / Shipping Bill HBL / MBL release Cargo freight manifest Carting / Booking / Stuffing / Onboard confirmation 6

Limitations in the existing export process - Challenges and suggested solutions Item Category Shipping Bill Carting order notification ‘AS IS’ Process ‘TO BE’ Process Shipping Bill checklist details and CHA generates the shipping bill scan copies of other documents checklist from ICEGATE and submits to commercial invoice, packing list & Consolidator at the time of cargo relevant bank documents to be carting available to the Consolidator via CCS Post cargo carting, the Consolidator sends a notification to the Customer The carting confirmation details to be available in CCS Expected Benefits a) Consolidator can retrieve the same from CCS basis which Carting Form can be issued to CHA b) Can also aid during the cargo physical examination basis which final S/B can be printed This will enable both the customer and his CHA to access the relevant information Plot letter (Empty Pickup Letter) Plot letter to be available in CCS Plot letter is issued by Liner for empty Eliminates manual handling of enabling Transporter and Empty container pickup which is handed over documents between Liner, Empty yard to retrieve the same directly to the Transporter by the Consolidator yard Transporter and Consolidator from the system. Mate receipt collected from Liner within 15 days of vessel sailing The Mate receipt can be made available by Liner in CCS for the Consolidator Enables online retrieval of Mate receipt, eliminates manual followups by Consolidator 7

Limitations in the existing export process - Challenges and suggested solutions Item Category ‘AS IS’ Process ‘TO BE’ Process Expected Benefits Customs CLP Customs endorsed CLP' is submitted to the Port authorities at the time of container gate in Customs to update final CLP information in CCS to enable visibility to Port, Customer and Consolidator a) Customers can directly obtain the stuffing intimation from CCS instead of receiving it from the Consolidator b) Port authorities need not rely on manual submission of Customs CLP at the time of Form 13 issuance Gate endorsed CLP Consolidator collects and submits the 'Gate endorsed CLP‘ (with S/B and CLP) to Liner The Gate endorsed CLP information to be available in CCS Real time information available to both Consolidator and Liner Receiving Confirmation Basis the 'gate endorsed CLP' information, Liner issues the 'Receiving confirmation' to Consolidator Basis the 'gate endorsed CLP', Liner to auto dispatch the Receiving confirmation via CCS to Consolidator Real time information available to Consolidator from the Liner Movement letter is submitted to CFS by Customs for container movement from CFS to Port CY Customs to update Movement letter details in CCS to enable CFS / Consolidator to retrieve the same Real time information to both CHA and Consolidator 8

Limitations in the existing export process - Challenges and suggested solutions Item Category ‘AS IS’ Process ‘TO BE’ Process Loading list details Consolidator sends the ‘advance loading confirmation’ to the Liner and obtains the final loading confirmation (via emails / calls) The loading confirmation from Liner to be available via CCS This will eliminate the need for the Consolidator to inform the customers On Board confirmation The vessel sailing information is passed on by Liner to the Consolidator who then sends a notification to the customer The Liner to update the vessel sailing confirmation in CCS This will provide real time information to all stakeholders and avoid to and fro correspondences between shipping line / Consolidator / end customer The HBL information (SI) is sent to Consolidator by the customer (local forwarder / direct shipper) via Inttra or email which is then updated in the Consolidator ERP and communicated back for customer confirmation HBL information (SI) to be made available by customer in CCS which can have an EDI interface in the relevant format available both to the Consolidator / customer. Final confirmation can also be obtained from customer via CCS basis which MBL filing can be carried out Eliminates duplicate data entry by Consolidator and Customer HBL information Expected Benefits 9

Import Consolidation Process Business Summary Process Interaction ‘As is’ and ‘To be’ Process 10

Sea Import Consolidation Summary of the activities carried out by various departments: Sales • Sales visit / enquiries • Enquiry negotiation • Quote submission • Order finalization CS / Documentation • Pre-shipment information • Data entry • Manifest submission • Un-cleared shipments reporting Operations • De-stuffing • Segregation of MCC shipments Accounts • Document scrutinization • Freight audit • Procurement of empty units (for MCC Operations and Inter. CFS movement • MCC Billing • Return of empty units • Billing back to origin agents • Supplier payments 11

Sea Import Industry Stakeholder Interaction ‘External parties’ involved in the Sea Import Consolidation process at each stage Sales Industry Stakeholders Input Output Operations & Planning Customer service / Documentation Customers (CHA / Local or International forwarder / Direct Consignee) Overseas Agents Shipping line Customs Nominated CFS Customers (CHA) Marine Surveyors Shipping Line Customers Customer details Buy rates Job order / Bill of entry Pick up Letter CLP Offloading letter MCC Operations Pre-alert information HBL / MBL details Un-cleared shipments Cargo details Quotation Movement to CFS Procurement / Return of empty units to yard Re-stuffing and movement to ICD CAN / Freight invoice File docs with line SMTP manifest Cargo plan Pre-alert 12

Limitations in the existing export process - Challenges and suggested solutions Item Category Current Process To be Process a) Expected Benefits Interlinking between CFS / Customs Carrier IGM and Console IGM details available in Icegate needs to be manually submitted to CFS along with Job order for container movement from Port CY to CFS b) Cargo de-stuffing information needs to be manually passed on from CFS to Customs These details to be available in CCS to act as a single repository containing information on IGM EDI, Job order, cargo destuffing etc…visible to CFS / Customs / Consolidator / Customer eliminating the need for multiple systems to retrieve and send information Container seal number In case of a container seal discrepancy, we only know about it post container arrival to CFS. Due to this, it is put on hold Seal mismatch cases to be sent as a EDI trigger from CCS to the CFS immediately upon container arrival Avoid delays due to containers being put on ‘hold’ Currently a few amendment categories are done manually CCS to provide a provision for customs amendments to be done online Enables transparency in the amendment handling process and helps maintain a record history Customs Amendment 13

Future Vision Challenges Foreseen Our Expectations – Way forward 14

Challenges foreseen Development and implementation of CCS should factor the following issues Non-uniformity of Message Formats Level of Automation Non-standard directories and codification schemes Lack of Standardization of Procedures Legal requirements for bringing hard copies Unstructured form of information exchanged Requirement for re-engineering the processes 15 Active participation of the stakeholders

Our Expectations – Way forward Future vision of how CCS can transform our Industry functioning Submission of information in structured formats. Optimal re-use of information. Expected benefits in using CCS as an interface: q Faster transmission of messages / Information / reports. q Transmission to multiple parties at the same time. q Possibility of a 2 way communication. Greater efficiency and better service provisions. q Cost saving for stakeholders. q Transparency and visibility to timelines, procedures & tariffs. Statistical Analysis of Data generated for improving the services. 16

You are today where your thoughts have brought you, You will be tomorrow where your thoughts take you. Thank you!!! 17