Category Archives: International

A US-based online payment platform for the cargo industry, PayCargo has entered into a partnership with IBS Software to broaden its digital payment network and enable carriers and ground handling companies to digitalise and simplify their payment systems with a substantial reduction in manual efforts. The move will be particularly helpful to PayCargo in dealing with the COVID-19 pandemic in view of the growing necessity for work-from-home culture and a soaring demand for reliable online freight payment platform solution. For IBS Software, a leading SaaS provider of core IT platforms for the air freight industry, the partnership is part of its ongoing initiatives to enable rapid adoption of digitalization for its customers, including many of the world’s largest airlines and cargo ground handlers.

Amidst acute shortage of trucks in lockdown, Maersk has announced that it has ramped up rail services for manufacturers to help them move their cargo to ports for export. The company’s solution includes moving goods straight from the exporters’ manufacturing facilities on rail to the required port or moving the cargo first to the closest Inland Container Depot by road and then loading it on to rail. The advantages of moving cargo on rail have been more than just overcoming the unavailability of road transport. From the perspective of the customers, they get most of their logistics needs fulfilled at the one-stop-shop that Maersk is offering by combining ocean and landside transportation and offering integrated logistics solutions.

FFFAI in association with FIATA has recently organised a webinar to give a global perspective on the consequences of Covid-19 pandemic on the logistics industry. Keynote speakers of this international webinar were AV Vijaykumar, Chairman, FFFAI and Basil Pieterson, President, FIATA. Commenting on the present crisis and challenges owing to Covid-19 pandemic and lockdown Vijaykumar, says, “We will, as have been our approach and past experiences, overcome with no damage. But the reality of the possible damage could inflict on the human life and the human race changed the complexion of handling the pandemic on a global scale.” Pieterson applauds the inclusion of freight forwarding within many nation’s definitions of essential services. “However, more needs to be done. Greater consistency in global responses, together with the implementation of facilitative measures, are required to ensure the continuance of well functioning supply chains to move essential goods to where they are most needed throughout this crisis and beyond,” he adds.

International Maritime Organisation (IMO) and the World Customs Organization (WCO) urged that trade by sea must continue to flow to maintain the continued provision of essential goods, including vital medical supplies, during the COVID-19 pandemic. Kitack Lim, Secretary-General, IMO and Kunio Mikuriya, Secretary General, WCO strongly urged customs administrations and port state authorities, together with all other concerned agencies, to establish a coordinated and proactive approach to maintaining the integrity of the global supply chain so that the flow of vital goods by sea is not unnecessarily disrupted. The joint statement comes as the demand for and the movement of relief goods (such as supplies, medicines and medical equipment) across borders is increasing dramatically. It notes that ports are being closed and ships denied entry, as travel is curtailed and borders closed to slow the spread of the disease and mitigate its impacts. Such restrictions, it says, may interrupt much-needed aid and technical support, and have negative social and economic effects on the countries concerned.

Agility and Chapman Freeborn Air chartering have decided to unite their efforts in delivering CT scan and MRI machines to Malé, Maldives. The Ministry of Health in Maldives ordered approximately 41 tonnes of cargo consisting of MRI, CT scan machines and other health equipment for distribution to four different hospitals across the chain of islands and atolls that make up the nation. Agility airlifted the cargo into Dubai from various locations in the USA, China, France, Japan and India. The seamless movement of more than 287 pieces from five countries into Dubai was a challenge, especially when availability of flights and space became limited due to the COVID-19 outbreak. Agility worked with Chapman Freeborn and chartered a B747 freighter from Al Maktoum International Airport in Dubai. Using B747 aircraft provided significant cost savings when compared with alternatives such as the Antonov An124 or the smaller Ilyushin Il-76 aircraft, which would have required three separate flights. Satish Lakkaraju, Chief Commercial Officer of Agility India, says, “From the countries of origin, to the consolidation point in Dubai and to the final destination in Male, we were pleased to have such talented people working on this global project. We thank our Agility Dubai team and our trusted global partner, Chapman Freeborn, for expertly handling all challenges that arose.” Vikas Chaturvedi, Chapman Freeborn’s Dubai Commercial Manager-Cargo, says, “Transporting this type of medical equipment on short notice requires careful planning and close attention to detail. Our strength is the global aviation professionals working with Agility and Chapman Freeborn.”

Hyderabad International Airport got connected to African markets with the touchdown of the maiden cargo flight of Ethiopian Airlines from Addis Ababa. This new direct connection between Hyderabad and Ethiopia opens new opportunities to reach out to the markets in Africa and beyond leveraging the robust cargo network of the Ethiopian Airlines. The airline is expected to be operating one frequency per week. With a capacity of 50 MT per flight, it will be operating Boeing 777-300 aircraft.

The service providers are facing a cash flow crisis because of not getting payments on time from their clients. To tide over the crisis, apex bodies; Federation of Freight Forwarders Association in India, Association of Multimodal Transport Operators of India and The Air Cargo Agents Association of India has decided that for the next six months, logistics service providers will handle shipments only against 100 per cent advance payments by their clients. Generally, the payment by an exporter or importer to service provider is done only after handling the shipment and paid in advance. The service provider pays the bill and waits for the payment from their clients.

“In times of crisis, expectation from the bigger brother are justified. While the airlines also need money, a sensitive approach is needed. IATA’s insistence will have very different reactions and the results could be varied. A number of IATA agents will be forced to default, even if they have always been compliant. Member airlines may also want to exit the CASS since business is generated not by the airlines but by the agents. A simple fact missed out in the insistence of remaining insensitive,” says Samir Shah, Advisor, Federation of Freight Forwarders Association in India (FFFAI). He adds, ”The problems are many and the biggest is continuity of business. The model is based on rotation of funds; clients’ payments have dried up or are delayed. This break in cycle will break many organisations.”

IATA CASS is not unique to India but is a worldwide payment gateway and no exclusive dispensation is available country wise. AV Vijaykumar, Chairman, Federation of Freight Forwarders Association in India (FFFAI), says, “I understand there was been some relief granted only in the form of deferment by a few days in our neighbouring countries. I wish Indian agents were also extended this deferment from IATA. Indian forwarders have been caught snapping as their payments from the shippers on the agreed timelines have not materialised. This has caused untold misery in the liquidity of the forwarders who also have to face the added strain of maintaining their establishment intact. There is a steep drop in business thereby impacting future revenue streams.”

IATA has decided not to give any extension for fortnightly freight to airlines through its CASS program. Calling it not a trade friendly move, Sunil Arora, President, The Air Cargo Agents Association of India (ACAAI), says, “The freight forwarding industry is already suffering due to the entire EXIM under lockdown. All payments from clients are blocked. In such scenario, how IATA and their member airlines can expects us to pay freight on time? Our member community is not in a position to meet the CASS calendar for freight payment to airlines. It establishes, once again, that IATA is inconsiderate towards its approved agents. IATA has asked for relief from government of India on various grounds but want agents to pay on time and no extension is even granted. ACAAI has requested government to intervene and ask IATA and Air India to consider our plea.” In fact, we feel they would be able to secure their freight payment by allowing extension of time. The trade is not asking discounts waivers or financial help on salaries etc but just little grant of time. This does not signify principal to principal relationship but seems like master to slave scenario. India is one of the biggest markets worldwide for IATA members and still Pakistan and Bangladesh and many other jurisdictions have got relief from IATA, then why not India?