2013

TRAINING REPORT
Introduction to Aspinwall Logistics and SAF Maine at Aspinwall & Co.Ltd, Bangalore.
SUBMITTED BY VIGNESH.KRISHNAN MANAGEMENT TRAINEE ASPINWALL & CO.LTD. COIMBATORE

[Type the author name] Aspinwall & Co.Ltd 9/16/2013

ACKNOWLEDGEMENT

I am profoundly grateful to Aspinwall & Co.Ltd. (Bangalore) for giving me such an opportunity to make a report that has helped me to understand the applications of what I have learnt, in my professional life.

I would especially like to thank Mr.Sandeep M, Dy Manager, Mr.Ramesh Radhakrishnan, executive of Aspinwall & Co.Ltd (Bangalore) and Mr.T.V Manikandan ,Customer service manager Aspinwall & Co.Ltd (Chennai ) who guided and supervised me during the training period.

I would also like to appreciate the efforts taken by our company for providing me the opportunity to undergo this training program.

Finally, yet importantly, I would like to express my heartfelt gratitude to my colleagues from the Bangalore branch for their help and support during my training period.

Introduction
Aspinwall & Co. Ltd. is one of the earliest commercial enterprises in the Malabar Coast, established in the year 1867, by the legendary English trader and visionary, John H. Aspinwall. Aspinwall & Co. Ltd has diversified business interests in the areas of Shipping & Logistics, Coffee Trading and Exports, Coir, Rubber Plantations and Tourism.

Mission and Vision

Aspinwall & Co. Ltd is committed to realising its customers aspirations as it drive each of its activities with enduring trust and practice resource optimisation to make efficacious delivery to all stakeholders day after day. Enduring Trust Resource optimisation Efficacious Delivery

Aspinwall Logistics Division

Aspinwall has been involved in shipping and logistics since inception and this is one of the core business activities of the company. Today it has a pan-India presence with a network of 15 offices covering all major ports, Inland Container Depots (ICDs) and airports. Aspinwall's involvement with shipping dates back to the very origin of the company, about a century-and-a-half ago. In tune with the growing tempo in marine traffic, Aspinwall steadily expanded its sphere of operations, building upon its rich expertise and extensive experience in ship chartering and marine/general insurance.

Aspinwall provides the following logistic services: Customs House Agents Aspinwall provides documentation services to importers and exporters at all customs stations in the country covering ports, ICD's and airports. Freight Forwarding Services The Division offers seamless services in cargo carriage, handling, warehousing and distribution. Our global network enables us to extend point-to-point movement of cargo based on client requirements. Air Cargo Services Aspinwall's Logistics Division is an IATA accredited cargo agency having operations at all major airports in the country. Ship Agency Services The Logistics Division provides agency services to owners and charterers of bulk and liquid cargo, containers, cruise ships and off-shore vessels. Stevedoring Services Stevedoring operations for various types of cargoes such as bulk, break bulk, containers and projects. Bulk Cargo Services Handling major commodities such as iron ore, coal, fertilisers, food grains, sugar, etc., at ports across India Warehousing Services The Division has extensive warehousing facilities at all its locations for safe storage of consignments. Liner Services The company represents world class shipping lines like Maersk and Safmarine at select Indian locations, however due to loss of Maersk agency in some of the locations its revenue from the liner segment has come down. The company is doing outsourcing work for Safmarine in these locations and its volumes are improving which will partially compensate for the loss of the Maersk Agency.

To be the carrier of choice for existing and future customers.

Safmarine (Safmarine Container Lines N.V.) is an international shipping business offering container and break-bulk shipping services worldwide. Formed in 1946 by South African industrialists and American ship owners, Safmarine is now widely known as a north/south trade and African specialist. The line is represented in more than 130 countries throughout the world, with more than 1200 sailors selling their services. Safmarine has been headquartered and registered in Antwerp, Belgium, since 1996,. In 1999, Safmarine was bought by the Danish company A.P. Moller-Maersk Group, and Maersk chose to retain the Safmarine brand rather than integrating it Maersk sea lines because of its brand value in the African region. Safmarine Container Lines specialises in the sea transportation of cargoes between Africa, the Middle East and the Indian Subcontinent as well as operating in other trades. Its services are mainly based on fully containerised vessels but they also have a division offering services for non-unitisable (break bulk and project) cargo.

Base Ports 1. 2. 3. 4. 5. 6. 7. Antwerp, Belgium Bremerhaven, Germany Felixstowe, UK Le Havre, France Rotterdam, Netherlands Zeeburgee, Belgium Gothenberg, Sweden

Safmarine Equipment Guide

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SAFMARINE EXPORT PROCESS FLOW CHART

1 2 3 4 5 6 7 8 9 Customer Enquiry Rate Quoting Customer Confirmation Rate filing to back office Back office confirms the effective rate Customer booking Booking confirmation/Equipment release order CHA/Transport Picking empty container

10 Stuffing 11 Customs clearance 12 SI submission 13 Draft copy & Invoice generation 14 Booking party confirms the draft copy if there is no amendment needed 15 Finance Dept. closes the Task 16 B/L is ready to print

Export-Import Process
Procedure for Clearance of Imported and Export Goods The imported goods before clearance for home consumption or for warehousing are required to comply with prescribed Customs clearance formalities. This includes presentation of a Bill of Entry containing details such as description of goods, value, quantity, exemption notification etc., Customs Tariff Heading. This Bill of Entry is subject to verification by the proper officer of Customs (under self assessment scheme) and may be reassessed if declarations are found to be incorrect. Normally import declarations made are scrutinised without prior examination of goods with reference to documents made available and other information about the value/ classification etc. It is at the time of clearance of goods that these are examined by the Customs to confirm the nature of goods, valuation and other aspects of the declarations. In case no discrepancies are observed at the time of examination of goods Out of Charge order is issued and thereafter the goods can be cleared. Similarly Customs clearance formalities for goods meant for export have to be fulfilled by presenting a Shipping Bill and other related documents. These documents are verified for correctness of assessment and after examination of the goods, if warranted, Let Export Order is given on the Shipping Bill.

Documents Involved

Bill of Entry
Goods imported into the country attract Customs duty and are also required to confirm to relevant legal requirements. Thus, unless the imported goods are not meant for Customs clearance at the port/airport of arrival such as those intended for transit by the same vessel/aircraft or transhipment to another Customs station or to any place outside India, detailed Customs clearance formalities have to be followed by the
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importers. The importer clearing the goods for domestic consumption through non-EDI ports/ airports has to file Bill of Entry in four copies; original and duplicate are meant for Customs, third copy for the importer and the fourth copy is meant for the bank for making remittances. Along with the Bill of Entry the following documents are also generally required: (a) Signed invoice (b) Packing list (c) Bill of Lading or Delivery Order/Airway Bill (d) GATT valuation declaration form duly filled in (e) Importers/CHAs declaration (f) Import license, wherever necessary (g) Letter of Credit, wherever necessary (h) Insurance document (i) Import license, where necessary (j) Industrial License, if required (k) Test report in case of items like chemicals (l) DEEC Book/DEPB in original, where relevant (m) Catalogue, technical write up, literature in case of machineries, spares or chemicals, as applicable (n) Separately split up value of spares, components, machineries (o) Certificate of Origin, if preferential rate of duty is claimed

Bill Of Lading
It is a document prepared by the ship owner or by the master of the ship acknowledging the receipt of goods and undertaking to deliver the goods at the port of destination. This, on one hand, acts as a proof of the receipt of goods specified there in and on the other, is a document of title to the goods. The document is sent by the exporter to the importer who can take
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delivery of the goods at the port of destination on presentation of the bill of lading and other shipping documents. B/L no. contains 9 digits.

a) Master Bill Of Lading (MBL):

MBL means Master Bill of Lading issued by vessel owner or his agent to a freight forwarder on receipt of goods from shipper agreeing to deliver goods at destination.

b) House Bill Of Lading (HBL):

If a freight forwarder, involved in a shipment, such forwarder issues a document of receipt of goods to the final shipper which is called House bill of lading (HBL).

The Master and House B/L must be filed in the IGM filing. This can act as a legal document as well. Way Bill: It is the B/L in electronic form (Soft Copy).

SHIPPING BILL: The shipping bill is a document prepared by the exporter, or the forwarding agent on the basis of which the custom authority calculates the duty to be paid by the exporter. It will be under schemes For issuing Shipping Bill we require: Commercial Invoice Packing List Statutory Declaration Form Export Value Declaration
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There are five copies of B/Ls are generated as mentioned below. TR 1 SD to ICD (E.g., BLR to MAA ICD) TR 2 ICD to Port (E.g., MAA ICD to MAA port) Exchange Control Copy To be submitted shipper s dealer bank. Exporter Copy For exporter E P Copy Once after filing of EGM by shipping carrier who moved goods out of country, the exporter or his authorized customs broker can apply for obtaining EP copy of shipping bill with customs. Key Notes: On board B/L when it is on board after loading. Receipt B/L The liner gives the bill when it is to be loaded. Only with the original B/L the goods are released. In another case, if the original B/L is surrendered to the liner and a no objection letter (telex) is given then the container can be released without the B/L.

Letter of Credit A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank. These are documents that prove that the seller has performed the duties under an underlying contract (e.g., sale of goods contract) and the goods (or services) have been supplied as agreed. In return for these documents, the beneficiary receives payment from the financial institution that issued the letter of credit. The letter of credit serves as a guarantee to the seller that it will be paid regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit's issuer. The letter of credit can also be used to ensure that all the agreed upon standards and quality of goods are met by the supplier, provided that these requirements are reflected in the documents described in the letter of credit.

Important concepts
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DEMURRAGE/ DETENTION: Imports A container is discharged off a ship on the 2nd July Consignee approaches the shipping line to take delivery of the cargo around 12th July. Working off a standard 7 free days from date of discharge, the line free days (different to port free days) expires on the 8th July. So, the line will charge the consignee DEMURRAGE for 4 days from 9th to 12th July at the rate fixed by the line. After the full container has been picked up by the client, for example if they take another 7 days to return the empty container, then it is known as DETENTION which again will be charged at the rate fixed by the line. So basically before the full container is picked up, Demurrage is charged and after the container has been picked up, till the time the empty is returned to the lines nominated depot, Detention is charged. Exports - In the case of exports, normally lines give about 5 free days within which the shipper has to pick up the empty, pack it and return it full to the port. In case of delays more than 5 days, the line charges Detention. Information required for allowing extra free time: 1. Full Style Address (Name, Address, Contact details etc.) 2. Reason for requesting free time 3. Volume expected EQUPEMENT BALANCE: When 20' & 40' containers are sent for export we should make sure that we bring in the same percent of volume as import, so there is no container shortage. Make sure the containers are always balanced when sent for import or export. Note: (MEPC: Profit margin calculator set for moving a container from point A to B)

REPO Concept
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Shipper takes the container from a point A and directly brings the container to port B after stuffing. When the container comes back after import at POD, it has to be reached point A. This is called repo (repositioning) concept.

Transshipment It is the shipment of goods or containers to an intermediate destination, then to yet another destination. One possible reason is to change the means of transport during the journey. Another reason is to combine small shipments into a large shipment (consolidation), dividing the large shipment at the other end (deconsolidation). Transshipment usually takes place in transport hubs. Much international transshipment also takes place in designated customs areas, thus avoiding the need for customs checks or duties, otherwise a major hindrance for efficient transport.

Pricing mechanism
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Charge Types BAS DHC ERS FFC IHE IMP ODF OHC SBF

Basic Ocean Freight Terminal Handling ServiceDestination Emergency Risk Surcharge Forwarder Commission Origin Inland Haulage Export Import Service Documentation Fee Origin Terminal Handling Service- Origin Standard Bunker Adjustment Factor

Rate (Offer rate) = BAS + IHE + DHC + ERS + IMP + ODF + OHC + SBF For Middle East Countries, CY should be maintained as per the instruction.

System process (Wet port to Inland location)

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Rate to be quoted =Ocean Freight + Inland Haulage charges

Sales As a sales executive the following details should be gathered from the clients:
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Commodity details (dimension, weight et) Nature of the commodity (dangerous/non dangerous) FCL/LCL Type of container required Place of receipt Place of custom clearance Place of delivery Port of loading/destination Mode of stuffing Date of shipping

Sales Call: Training During the training period i got the opportunity to visit Swift Freight,Bangalore as a part of sales call training under the guidance and supervision of Mr.Ramesh Radhakrishnan, executive Aspinwall & Co. Ltd( Bangalore) which helped me understand the sales call process.

Customer Service
Safmarine uses GCSS : Global Customer Service system as their customer service tool. It is a database of the registered customers of Safmarine. Customer service begins once the customer places the booking in the Safmarine website or via INTRA booking ( www.intra.com ) . Booking turn time: within 4 hours REKM : Equipment Management database Real time database for equipment control. GSIS: Global Scheduling system Vessel Itinerary and details. Customer service team solves the customers grievances.

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World Sea Ports

References www.Aspinwall.com www.Safmarine.com www.Maerskline.com www.wikipedia.com www.ieport.com

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www.iceegate.com

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