PERFORMANCE ANALYSIS OF SEA FREIGHT MANAGEMENT

AT KUEHNE+ NAGEL

Submitted in partial fulfillment of the requirements of

AMITY GLOBAL BUSINESS SCHOOL
For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (M.B.A)

Submitted
By

MOHAMETH HISAM M R
(ENROLLMENT No: A31001916018)

A Project Report Submitted to the Faculty of Management Studies

in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

AMITY GLOBAL BUSINESS SCHOOL, CHENNAI-600 087

JULY-2017
 ACKNOWLEDGEMENT

This internship opportunity I had with Kuehne+Nagel Pvt. Ltd was a great
chance for me to gauge an extensive knowledge about the on-hand job experience and
professional development. Therefore, I consider myself as a very lucky individual as I
was provided with an opportunity to be a part of it. I am also grateful for having
worked under the Prestigious organization and I have imbibed a lot of subject and
practical knowledge by meeting and interacting with wonderful people and
professionals who led me throughout this internship period.

I express my deepest thanks to the Office of Kuehne+Nagel Pvt. Ltd and the
people who worked and helped me there. Especially Mr. K. R. Rahman, B.D,
Mrs.Madhumitha Ravi, Manager-Human Resources and Mr.Nusarathullah Khan,
Deputy Manager-Sea Freight for providing me with such a precious opportunity to be
a part of Kuehne+Nagel.

I would like to express my deepest gratitude to Professor Mr. A. Vinod Kumar

without his encouragement and support this project would have not materialized. I
would like to thank my Director Dr. E. Illamathizhan and my Deputy Director, Dr, S,
Vengadamani for giving this opportunity to have an exposure about the corporate
world.
 DECLARATION

I, MOHAMETH HISAM M. R, hereby declare that the report is a record of

original work which is carried out by me during the academic year 2016-2018 for
M.B.A Summer Internship Programme, based on the training endured during the
period 17th May to 21st July 2017 at Kuehne+Nagel Pvt. Ltd-Chennai on the subject
“Performance Analysis of Sea Freight Management at Kuehne+Nagel” in partial
fulfillment for the award of M.B.A graduation.

I have not verbatim copied / duplicated any material excepting some vital
company information / statistics, which are provided by the company itself.

Signature of the Student:

Date:
 BONAFIDE CERTIFICATE

This is to certify that the report is a record of original work done by

MOHAMETH HISAM M. R of II-year M.B.A (Enrollment No: A31001916018)
based on training endured during the period 17th May to 21st July 2017 at
Kuehne+Nagel Pvt. Ltd-Chennai on the subject “Performance Analysis of Sea
Freight Management at Kuehne+Nagel” in partial fulfillment for the award of
M.B.A graduation.

Faculty Guide

Mr. A. Vinod Kumar

Assistant Professor,
Amity Global Business School,
Chennai.
 ABSTRACT

This summer internship project is about the operations and performance study
on the overall process of the Sea Freight Export & Import at Kuehne+Nagel. The
successful operation of the logistics depends on the process that is performed by the
company. In a Freight Forwarding industry the operation procedure and process acts
as a differentiation factor between the best and the mediocre. In today’s competitive
market environment companies are continuously forced to improve their operations.
Many companies have also customized their value proportion to increase their
customer service levels, which has led to increased customer satisfaction and profits to
the companies. This paper highlights the findings of the study carried out to evaluate
the performance levels and enhance efficiency and productivity of the operators.

Furthermore, suggestions are given to improve their operation strategies.

 EXECUTIVE SUMMARY

A freight forwarder is a professional logistics provider. Freight forwarders are

third parties and their objective is to dispatch shipments via asset based carriers such
as ships, airplanes or trucks. The ability to arrange cargo movement from one
destination to another within a short period of time makes a forwarder competent and
however customers’ dependency remains constant on such forwarder. Freight
forwarding companies have the expertise required to arrange all the activities related
to the international shipping process.
Shipping various products between countries and territories usually involves a
multitude of carriers, requirements and legal documentation. The freight forwarding
services are specialized in handling the great amount of logistics this intricate process
requires, helping the client ship goods securely and quickly. Freight forwarding
services are typically used by companies that deal with international import and export
activities. The freight forwarding company is a third party – it doesn’t ship the cargo
itself. However, the freight forwarder acts as a professional intermediary between the
client and the transportation services.
Major companies and corporations greatly depend on professional freight
forwarders in their import and export activities. The freight forwarding company
guarantees that a certain cargo reaches the proper destination upon an agreed date.
Furthermore, turning to the services of a freight forwarder is practically the only way
you can be certain that your products arrive at the specified destination in good
condition.
These days, it’s virtually impossible for a company to ship goods at an adequate
price without a forwarder. Freight forwarding companies have an established long-
term relationship with carriers of all kinds and will obtain the best deals in the least
amount of time. Freight forwarder faces numerous challenges and this has
consequently led in the failure of their operations and satisfying customers need.
 Table of Contents
Chapter No. Title Page No.
1 Introduction 1
1.1 Introduction to study 1
1.2 Objective of Study 2
1.3 Scope of study 3
1.4 Need for study 4
1.5 Limitations of study 5
1.6 Company Profile 6
1.7 Parties Involved 8
1.8 INCO Terms 9
2 Container Types 10
2.1 Standard Container 10
2.2 Hard-top Container 10
2.3 Open-top Container 10
2.4 Flat Rack Container 11
2.5 Platform Container 11
2.6 Reefer Container 11
2.7 Tank Container 11
3 Types of Cargo 12
3.1 General Cargo 12
3.2 Bulk Cargo 13
4 Types of Container Loading 13
4.1 FCL 13
4.2 LCL 14
5 Ports in India 16
5.1 Major ports 16
5.2 Intermediate & Minor Ports 17
5.3 Ports in Chennai 17
 5.4 Hub Port nomenclature 19
6 Warehouse 20
6.1 Bonded Warehouse 20
6.2 Non- Bonded Warehouse 21
7 Shipment types 22
7.1 Port to Port 22
7.2 Port to Door 22
7.3 Door to Port 22
7.4 Door to Door 23
8 Export Process 24
9 Documents in Export Process 25
9.1 Commercial Invoice 25
9.2 Packing list 27
9.3 VGM 28
9.4 EGM 28
9.5 Certificate of Origin 28
9.6 SI 29
9.7 Form-13 29
9.8 Shipping Bill 29
9.9 Bill of Lading 29
10 Types of B/L 31
10.1 Based on Negotiability 31
10.2 Based on Parties 31
10.3 Based on Time of Issuing 32
11 Security Filing 34
12 Import Process 35
13 Import Clearance 35
13.1 Accredited Client Program 36
13.2 CFS Clearance 36
14 Documents in Import Process 36
14.1 IGM 36
14.2Freight Certificate 37
14.3 Bill of Entry 37
14.4 Delivery Order 38
14.5 Liner Invoice 39
15 Special Charges 39
15.1 Demurrage 39
15.2 Detention 39
16 Research Methodology 40
16.1 Types of Research Design 40
16.2 Research Design 40
16.3 Sample Size 40
16.4 Sampling Method 40
16.5 Period of Study 40
16.6 Questionnaire Design 41
16.7 Method of Data Collection 41
16.8 Statistical Tools 41
16.9 Diagrams and Charts 42
17 Research Questionnaire Response 43
18 Findings and Suggestions 54
19 Conclusion 56
Annexure
 List of figures
Figure No. Figure Name Page No.
1 INCO Terms 9
2 Container Types 10
3 Standard Container 10
4 Hard-top Container 10
5 Open-top Container 10
6 Flat Rack Container 11
7 Platform Container 11
8 Reefer Container 11
9 Tank Container 11
10 Types of Cargo 12
11 Types of Container Loading 13
12 Buyer’s Consol 14
13 Shipper’s Consol 15
14 Types of Ports 16
15 Hub Nomenclature 19
16 Warehouse Types 20
17 Types of Shipment 22
18 Types of Stuffing 24
19 Factory Stuffing Process 24
20 CFS Stuffing Process 25
21 Based on Negotiability 31
22 Based on Parties 31
23 Based on Time of Issuing 32
24 Import Process 35
25 Import Clearance types 35
26 Types of IGM filing 37
27 Special Charges 39
 List of Tables
Table No. Table Name Page No.
1 Employee Experience 43
2 Traffic during Transit 44
3 Queue at Port 45
4 Form-13 46
5 Improper SOP 47
6 Booking validity extension 48
7 Container Request 49
8 Damage to Goods 50
9 Misplacing of Cargo 51
10 Delay in Transshipment 52
11 D/O Release 53
 List of Charts
Chart No. Chart Name Page No.
1 Employee Experience 43
2 Traffic during Transit 44
3 Queue at Port 45
4 Form-13 46
5 Improper SOP 47
6 Booking validity extension 48
7 Container Request 49
8 Damage to Goods 50
9 Misplacing of Cargo 51
10 Delay in Transshipment 52
11 D/O Release 53
 1. Introduction

1.1 Introduction to Study:

Logistics is concerned with getting the products and services where they are
needed and when they are desired. It is difficult to accomplish any marketing or
manufacturing without logistical support. It involves the integration of information,
transportation, inventory, warehousing, material handling and Packaging. Without
Logistics support no activity can be performed to meet final goal. The current
challenge is to perform logistics scientifically in order to optimize benefits to the
organization
At Kuehne+Nagel, logistics is the management of the flow of things between
the point of origin and the point of consumption in order to meet requirements of their
customers.
Logistics management is the part of supply chain management that plans,
implements, and controls the efficient, effective forward, and reverse flow and storage
of goods, services, and related information. The minimization of the use of resources
is a common motivation in all logistics fields. A professional working in the field of
logistics management is called a logistician.
A Third-Party Logistics company is one that works with shippers in order to
manage another company’s logistics operations department. 3PL is the action of
outsourcing activities that are related to logistics and distribution.

Third party logistics providers are usually specialized in

• Integrating operations
• Warehousing
• Transportation services
• Cross-docking
• Cold storage
• Freight forwarding

These services are scaled and customized to the customer’s specific needs based
on their market conditions and the different demands and delivery service requirements
for their products or materials.

1
1.2 Objective of Study:

1.2.1 Primary Objective:

The primary objective of the research is to study and analyze the day to day
operations at Kuehne+Nagel Pvt. Ltd.

1.2.2 Secondary Objective:

 To analyze the work process at Kuehne+Nagel.

 To study the employee’s tendency towards their work.
 To study the efficiency of the third-party transporters at Kuehne+Nagel.
 To study about organizational functions and management.
 To study about their Freight Forwarding process and various other aspects of
services.

2
1.3 Scope of Study:

 This study helps in the basic research of the process that is carried through-out the
company which includes the Export and Import management, Custom Clearance,
Freight Forwarding services, Re-export and Employee Empowerment.

 This basic research process helps the company in finding out the problems in their
company and to achieve cent percent performance.

3
1.4 Need for Study:

 The need for this study is to find out efficiency of the process at Sea Freight of
the company.

 It helps to gain knowledge about the various processes and how it is carried out
at Kuehne+Nagel.

 This study is to know the opportunities of finding better ways of handling the
processes at Sea Freight of Kuehne+Nagel.

4
1.5 Limitations of Study:

 Time was a major constraint to gather information.

 The entire study is limited to the Sea Freight activities only.

 The entire knowledge was restricted to only Primary Data collected through
survey.

5
1.6 Company Profile:
Kuehne + Nagel International AG (or Kühne + Nagel) is a global transport and
logistics company based in Schindellegi, Switzerland. It was founded in 1890, in
Bremen, Germany, by August Kühne and Friedrich Nagel. It provides sea freight and
airfreight forwarding, contract logistics, and overland businesses with a focus on
providing IT-based logistics solutions. In 2010, Kuehne + Nagel was the leading
global freight forwarder, accounting for nearly 15% of the world's air and sea freight
business by revenue, ahead of DHL Global Forwarding, DB Schenker Logistics, and
Panalpina. As of 2017, it has more than 1,300 offices in over 100 countries, with over
70,000 employees.

Organization
It is organized in the following seven geographical divisions:
• Central Europe (based in Vienna, Austria)
• Western Europe (based in Hamburg, Germany)
• Middle East and Africa (based in Dubai, United Arab Emirates)
• North America (based in Jersey City, New Jersey, United States)
• Central & South America (based in Santiago de Chile, Chile)
• North Asia Pacific (based in Shanghai, China)
• South Asia Pacific (based in Singapore)
Operations
It is divided into the following operating segments:
• Sea freight
• Air freight
• Road & Rail Logistics
• Contract Logistics
• Integrated Logistics / Lead Logistics
• Real Estate
• Insurance Brokers

6
Sea freight:
• Number 1 global sea freight forwarder
• Sustained year-on-year double digit growth in managed freight
• Solid partnerships with an extensive range of preferred ocean carriers
Airfreight:
• Number 2 global air cargo forwarder
• Leader in innovative cargo management concepts
• Global Cargo iQ Phase 2 certification
Contract Logistics & Integrated Logistics:
• Number 2 global contract logistics provider
• Worldwide network of warehouse and distribution facilities
• Number 1 global lead logistics provider
Overland:
• European Top 3 provider
• Pan-European overland transportation capabilities, including dedicated
and individual delivery services
• Close partnerships with best-in-class carriers

Mission Statement
The extension of your business.
"The global logistics network is our strongest asset. Dedication, integration and
innovation are at the heart of our business philosophy. Focused on our customers’
needs we provide integrated logistics solutions of outstanding quality and operational
excellence – we are the extension of your business."

7
1.7 Parties Involved:
Shipper: Shipper is the person or company who is usually the supplier or owner
of commodities shipped. Also called Consignor. The seller may be the producer or
manufacturer of the goods, or may be a party acting as the producer/manufacturer’s
agent.
Consignee: Consignee is the person to whom the carrier (Ship) is supposed to
deliver the goods. In most cases the consignee is the Buyer of the goods but not
always. Consignee could be the agent nominated by the buyer. Consignee could also
be the buyer’s bank.
Freight forwarder: Freight forwarder is a transport intermediary, operating in
the liner trades, who arranges the export of another party’s goods (by land, sea or air)
and “forwards” the goods into the care of the sea carrier. Freight forwarders can advise
on routing, can arrange carriage with a carrier (booking space, paying freight, etc.),
can prepare or assist in preparing customs documents, can make customs entry
(clearance) of goods, can arrange packaging and warehousing of goods before
shipment, can arrange goods transit insurance, and can in many cases arrange
“groupage” or “consolidation”, meaning the more cost-effective shipment in one
transport unit of several small parcels sent by different shippers, where they are all
destined for the same delivery port or place.
Carrier: Carrier is a party who contracts with a shipper for the transport of
goods by sea. In the liner trades, where non-vessel owning carriers(NVOCC) offer
shipping services, the carrier with whom the seller or the seller’s agent makes his
carriage contract is not necessarily the carrier actually performing the sea carriage.
Furthermore, where a ship is chartered and is being operated commercially by the
charterer (such as a time charterer), the identity of the legal carrier may depend on the
information stated on the bill of lading or sea waybill.
Customs House Agent: Customs House Agent (CHA) is licensed to act as an
agent for transaction of any business relating to the entry or departure of conveyances
or the import or export of goods at a customs station. CHAs maintain detailed,
itemized and up-to-date accounts. A CHA license may be temporary or permanent.
Customs: Customs is an authority or agency in a country responsible for
collecting tariffs and for controlling the flow of goods, including animals, transports,
personal effects, and hazardous items, into and out of a country. Each country has its
own laws and regulations for the import and export of goods into and out of a country,
which its customs authority enforces.

8
1.8 INCO Terms:
The Incoterms rules or International Commercial Terms are a series of pre-
defined commercial terms published by the International Chamber of Commerce
(ICC) relating to international commercial law. They are widely used in International
commercial transactions or procurement processes as the use in international sales is
encouraged by trade councils, courts and international lawyers. A series of three-letter
trade terms related to common contractual sales practices, the Incoterms rules are
intended primarily to clearly communicate the tasks, costs, and risks associated with
the transportation and delivery of goods. Incoterms inform sales contract defining
respective obligations, costs, and risks involved in the delivery of goods from the
seller to the buyer. However, it does not constitute contract or govern law. Also, it
does not define where titles transfer and does not address the price payable, currency
or credit items. It was last revised in the year 2010.

Figure 1: INCO Terms

9
2. Container Types
Container
Types

Standard Hard Top Open Top Flat Rack Platform Reefer Tank

Figure 2: Container types

2.1 Standard Container
Available Sizes: 20’ 40’ 40’ High Cube
Suitable for any general cargo. Various lashing
devices on the top and bottom longitudinal rails and corner
post.
Figure 3: Standard Container

2.2 Hardtop Container

Available Sizes: 20’ 40’ 40’ High Cube
Equipped with a removable steel roof. Especially
for heavy loads and over height cargo. Loading through
roof opening and door way by swung out door head.
Figure 4: Hardtop Container

2.3 Open top Container

Available Sizes: 20’ 40’
With removable tarpaulin. Especially for over-
height cargo. Loading either from top side or door side by
swung out door head.
Figure 5: Open-Top Container

10
2.4 Flat Rack
Available Sizes: 20’ 40’ 40’ High Cube
Especially for heavy loads and Over-width cargo

Figure 6: Flat Rack Container

2.5 Platform
Available Sizes: 20’ 40’
Especially for heavy loads and oversized cargo.

Figure 7: Platform Container

2.6 Reefer Container

Available Sizes: 20’ 40’ 40’ High Cube
Reefer Container do have their own
electrically operated cooling/heating unit. The
power supply is provided by ship’s electrical
plant, by terminal or by “clip-on” diesel generator.
Figure 8: Reefer Container
2.7 Tank Container
Available Sizes: 20’
Used for the transport of liquid food, eg:
-Alcohols.
-Fruit Juices.
-Edible oils.
-Food Additives. Figure 9: Tank Container

11
3. Types of Cargo:

Types Of
Cargo

General Bulk

Break Bulk Neo Bulk Containerized Liquid Dry

Figure 10: Types of Cargo

3.1 General Cargo
General cargo are goods that must be loaded individually, and not in intermodal
containers nor in bulk as with oil or grain. Ships that carry this sort of cargo are called
general cargo ships.
3.1.1 Break Bulk Cargo
The term break bulk derives from the phrase breaking bulk—the extraction of a
portion of the cargo of a ship or the beginning of the unloading process from the ship's
holds. These goods may not be in shipping containers. Break bulk cargo is transported
in bags, boxes, crates, drums, or barrels. Unit loads of items secured to a pallet or skid
are also used.
3.1.2 Neo Bulk Cargo
Neo-bulk cargo is a type of cargo that is a subcategory of general cargo. It
comprises goods that are prepackaged, counted as they are loaded and unloaded (as
opposed to bulk cargo where individual items are not counted), not stored in
containers, and transferred as units at port. Types of neo-bulk cargo goods include
heavy machinery, lumber, bundled steel, scrap iron, bananas, waste paper, and cars.
The category has only become recognized as a distinct cargo category in its own right
in recent decades.
3.1.3 Containerized Cargo
Containerized Cargo is a type of cargo in which the cargo is packed into
standard sized containers. The containers are sealed after the cargo is loaded into the
container. The cargo in the container need not be unloaded/unpacked at each point of
transfer.

12
3.2 Bulk Cargo
Bulk cargo is commodity cargo that is transported unpackaged in large
quantities. It refers to material in either liquid or granular, particulate form, as a mass
of relatively small solids, such as petroleum/crude oil, grain, coal, or gravel. This
cargo is usually dropped or poured, with a spout or shovel bucket, into a bulk carrier
ship's hold. Bulk cargo is classified as liquid or dry.

4. Container Loading
Types of
Loading

FCL LCL

Factory Central Buyers Sellers Co-

SACO FCL
Stuffing Excise Consol Consol Loading

Figure 11: Types of Loading

4.1 FCL:
FCL means Full Container Load. In FCL the container loaded with goods/cargo
of single shipper destined to single consignee. The quantity of goods stuffed will be of
maximum capacity of the specified container.
4.1.1 Factory Stuffing:
In FCL-Factory stuffing the goods will be stuffed into the container in the
factory itself. The container will be sealed by the shipper/company having a unique
Identity No. Then the container will be sent to CFS for Customs Clearance and further
processing.
4.1.2 Central Excise:
In FCL- Central Excise the goods will be stuffed into the container in the
factory itself. The customs clearance will be done by the Customs Officer available at
the Industrial area, who is responsible for goods originating from that specific area for
export. Then the container may be sent to CFS for further processing or it can be
directly sent to the port for Export.

13
4.2 LCL:
LCL means less than Container Load. In LCL shipment the goods/cargo of
multiple shipper destined to multiple consignee will be shipped in same container. The
goods stuffed into the Container will be belonging to multiple parties. In LCL also the
amount of goods/cargo stuffed will also be of maximum capacity of the specific
container in most cases.
4.2.1 SACO
SACO means Shipment Against Consolidation. Cargo shipping method in
which a freight forwarder at the port of origin combines several individual
consignments to make up a full container load. This arrangement allows the goods to
be shipped as containerized-cargo that offers greater security at lower shipping rates.
At the port of destination, the consolidated shipment is separated (deconsolidated or
de-grouped) back into the original individual consignments for delivery to their
respective consignees. Also called grouped shipment.
4.2.2 Buyers Consolidation
Buyers Consolidation is a type of LCL shipment in which the goods from
various sellers/shippers will be consolidated, made into a single shipment and will be
sent to the buyer of goods/consignee.

C
B D
A Consignee
E
Figure 12: Buyer’s Consol
4.2.3 Shippers Consolidation
Shippers Consolidation is a type of LCL shipment in which the goods from a
Single shipper/seller destined for multiple buyers/consignees at same/different
destination will be consolidated into a single shipment and will be shipped.

14
 X

Shipper

Z Y

Figure 13: Shipper’s Consol

4.2.4 Co-Loading
The term co loading means transferring cargo by a freight forwarder to another
carrier either to a freight forwarder or consolidator. Co loading is a common procedure
in import export trade especially for less containerload – LCL - transactions. Under
LCL shipments, some of freight forwarder co-load cargo to another freight forwarder
final destination. The carrier who co-loads the cargo is called co-loader.
4.2.5 FCL
In some cases, due to requirement the shipper or consignee may ship cargo
whose quantity is less than the maximum capacity of the specific container.

15
5. Ports in India
India has a coastline spanning 7516.6 kilometers, forming one of the biggest
peninsulas in the world. According to the Ministry of Shipping, around 95 per cent of
India's trading by volume and 70 per cent by value is done through maritime transport.
India has a total of 213 ports in its Coastal area.
Government of India plans to modernize these ports and has approved a project
called Sagarmala. The ports and shipping industry in India plays a vital role in
sustaining growth in the country’s trade and commerce. The Indian Government has
allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic
route for port and harbor construction and maintenance projects. The government has
also initiated National Maritime Development Programme (NMDP), an initiative to
develop the maritime sector with a planned outlay of US$ 11.8 billion.
Sagar-Mala project is a strategic and customer-oriented initiative of the
Government of India to modernize India's Ports so that port-led development can be
augmented and coastlines can be developed to contribute in India's growth. It looks
towards "transforming the existing Ports into modern world class Ports and integrate
the development of the Ports, the Industrial clusters and hinterland and efficient
evacuation systems through road, rail, inland and coastal waterways resulting in Ports
becoming the drivers of economic activity in coastal areas.

Ports

Major Intermediate Minor

Figure 14: Types of Ports

5.1 Major Port:
There are 13 major ports in India, which is classified based on the quantity of
cargo handling. Major ports are administered by Central Governments’ Shipping
ministry.
• Kandla Port
• Nhava Sheva Port
• JNPT Port
• Ennore Port

16
 • Paradip Port
• Panaji Port
• Marmagoa Port
• Chennai Port
• Haldia Port
• Mangalore Port
• Kochi Port
• Tuticorin Port
• Vishakhapatnam Port
5.2 Intermediate & Minor Ports:
There are 10 Intermediate ports and 190 Minor ports in India, which are
administered by the respective State Governments.
5.3 Ports in Chennai:
5.3.1 Chennai Port:
Chennai Port, formerly known as Madras Port, is the second largest container
port of India, behind the Nhava Sheva Port, and the largest port in the Bay of Bengal.
It is the third oldest port among the 13 major ports of India with official port
operations beginning in 1881, although maritime trade started much earlier in 1639 on
the undeveloped shore. It is an artificial and all-weather port with wet docks.
It has two Terminals
• CCTL- Chennai Container Terminal Limited
Started in the year 1983, it is now one of the most advanced container terminals
in the world. After its privatization in the year 2001, it took giant strides in making it
the top most container port in India. It is Controlled by Dubai based DP world since 30
Nov 2001. It has an Annual container quantity handled at more than 1 Million TEU.
• CITPL- Chennai International Terminal Private Limited
It was Privatized in the year 2009. It is joint venture between Singapore based
PSA and Chennai based Sical logistics ltd. It has a planned capacity of 1.5 Million
TEU. The privatization deal began operating from 22 June 2009.

17
5.3.2 Ennore Port:
Ennore Port, officially renamed Kamarajar Port Limited, is located on the
Coromandel Coast about 24 km north of Chennai Port, Chennai, it is the 12th major
port of India, and the first port in India which is a public company. The Kamarajar
Port Limited is the only corporatised major port and is registered as a company. The
Centre holds a stake of about 68 per cent in the Kamarajar Port Limited and the
remaining 32 per cent is held by the Chennai Port Trust. The port has been able to
attract an investment of ₹26,000 million by private entrepreneurs on various terminals
and harbour craft. Kamarajar Port Limited, designed as Asia's energy port, is the first
corporatised port in India and has only 86 employees. Envisaged being a satellite port
to decongest and improve the environmental quality at the bustling Chennai Port,
Kamarajar Port Limited is evolving itself into a full-fledged port with the capacity to
handle a wide range of products. With a permissible draught of 13.5 m, the port
handled a total volume of 11.01 million tonnes in 2010–11, up by 2.86 per cent from
the previous year. It is Operated by L&T.

5.3.3 Kattupalli Port:

Kattupalli Port Private Limited was incorporated on 14 August 2015. It is
classified as Indian Non-Government Company and is registered at Registrar of
Companies, Ahmedabad. It is involved in Sea and coastal water transport.
Kattupalli Port Private Ltd, India’s most modern port providing the EXIM trade
in Chennai/Bangalore region a whole new dimension of service, speed and
sophistication.
It is a joint venture between L&T and TIDCO (Tamil Nadu Industrial
Development Corporation). Currently it has been leased to Adani ports.

18
5.4 Hub Port Nomenclature

Hub

Transhipment Gateway

Figure 15: Hub Nomenclature

Hub Port:
A Hub Port is a port that is connected to a large number of smaller ports,
connecting smaller ports with each other. Hence a hub port is central port through
which all the smaller ports conduct trade. E.g. Singapore, Colombo.
5.4.1 Transshipment Port:
Transshipment port is a port where containers from various smaller port (POL)
are unloaded, stored and Loaded onto the ship for transport to another port(POD). Hub
port is mentioned as Transshipment port for FCL cargo.
5.4.2 Gateway Port:
Gateway port is port where Container from various smaller ports(POL) are
unloaded, stored, reworked and loaded onto the ship for transport to another
port(POD). Hub port is mentioned/called as Gateway port for LCL cargo. The main
difference between Transshipment and Gateway port is reworking of container.

19
6. Warehouse:
A warehouse is a commercial building for storage of goods. Warehouses are
used by manufacturers, importers, exporters, wholesalers, transport businesses,
customs, etc. They are usually large plain buildings in industrial areas of cities, towns
and villages.
They usually have loading docks to load and unload goods from trucks.
Sometimes warehouses are designed for the loading and unloading of goods directly
from railways, airports, or seaports. They often have cranes and forklifts for moving
goods, which are usually placed on ISO standard pallets loaded into pallet racks.
Stored goods can include any raw materials, packing materials, spare parts,
components, or finished goods associated with agriculture, manufacturing and
production. In Indian English, a warehouse may be referred to as a godown.

Warehouse

Non-
Bonded
Bonded
Figure 16: Warehouse Types

6.1 Bonded Warehouse:

A bonded warehouse, or bond, is a building or other secured area in which
dutiable goods may be stored, manipulated, or undergo manufacturing operations
without payment of duty. It may be managed by the state or by private enterprise. In
the latter case, a customs bond must be posted with the government.
While the goods are in the bonded warehouse, they may, under supervision by
the customs authority, be manipulated by cleaning, sorting, repacking, or otherwise
changing their condition by processes that do not amount to manufacturing. After
manipulation, and within the warehousing period, the goods may be exported without
the payment of duty, or they may be withdrawn for consumption upon payment of
duty at the rate applicable to the goods in their manipulated condition at the time of
withdrawal.

20
6.2 Non-Bonded Warehouse:
A Non-Bonded warehouse is a place, building or an area where goods which are
cleared by the customs or goods which are locally produced not having any lien by
customs are stored. It is mostly owned and maintained by private enterprise.

21
7. Shipment types:
The various types of Shipment provided in shipping terms are classified below.

Types of
Shipment

Port to Port to Door to Door to

Port Door Port Door
Figure 17: Types of Shipment
7.1 Port to Port:
“Port to Port Shipment” defines a type of shipment, which commences at the
Port of Loading and ends at the Port of Discharge.
Port to Port shipment or Port to Port delivery is the basic form of sea freight
transportation, which is used by carriers for hundreds of years.
Bill of lading is the generic name of the transport document, commonly used in
Port to Port shipments. It is also known as port to port bill of lading, marine bill of
lading or ocean bill of lading.
7.2 Port to Door:
If transportation starts at the port of loading and ends at the importer's
warehouse then these kinds of shipments can be defined as "Port to Door" deliveries.
Multimodal bill of lading is the transport document that should be used with
Port to Door shipments.
7.3 Door to Port Shipment:
If transportation starts at the exporter's factory and ends at the port of discharge,
then these kinds of shipments can be defined as "Door to Port" deliveries.
Multimodal bill of lading is the transport document that should be used with
Door to Port shipments.

22
7.4 Door to Door Shipment:
Door to Door Shipment, covers the ultimate transportation between exporter's
factory to importer's warehouse. It should be carried out by a single carrier under one
transport document, which is usually a multimodal bill of lading.
If more than one carrier is responsible for the transportation or more than one
type of transport document has been issued, then the transportation cannot be specified
as a Door to Door shipment.

23
8. Export Process:
Export process is classified into two diverse method based the place of
container stuffing

Export

Factort CFS
Stuffing Stuffing

Figure 18: Types of Stuffing

After Customs
Factory Stuffing Form 13 Clearance Moved
to Port

Container Container Loaded

Container Stuffed
Placement at on Board and
& moved to CFS
factory vessel sails

Commercial Shipping Bill Carrier issues

Invoice,Packing filing(Checklist MBL & forwrader
List & VGM Preparation) issues HBL

Figure 19: Factory Stuffing Process

24
 CFS Stuffing Container stuffing Form 13

Commercial
Container Container
Documents to be
movement from movement from
shared with
Empty yard to CFS CFS to Port
FF/CHA

Checklist
Container
Preparation & Customs Clearance
Offloaded at port
shipping bill filing

Cargo Offloaded at Container Loaded Carries issues MBL

Cargo pick up from
CFS against S/B on board & vessel & Forwarder issues
factory
number sails HBL

Figure 20: CFS Stuffing Process

9. Documents in Export Process

9.1 Commercial Invoice:
A commercial invoice is a customs document. It is used as a customs
declaration provided by the person or corporation that is exporting an item across
international borders. Although there is no standard format, the document must
include a few specific pieces of information such as the parties involved in the
shipping transaction, the goods being transported, the country of manufacture, and the
Harmonized System codes for those goods. A commercial invoice must often include
a statement certifying that the invoice is true, and a signature.
A commercial invoice is used to calculate tariffs, international commercial
terms (like the Cost in a CIF) and is commonly used for customs purposes.
Commercial invoices are in European countries not normally for payment. The
definitive invoice for payment usually has only the words "invoice". This invoice can
also be used as a commercial invoice if additional information is disclosed.

25
The following details should appear in the commercial invoice:
• The document title should clearly state "Commercial Invoice"
• The name of the exporter (referred to as the shipper) and their contact details
(tele, fax, cell, e-mail), including physical (not postal) address
• The name of the importer (referred to as the consignee, meaning the person or
firm to whom the goods are to be sent) and their contact details (tele, fax, cell,
e-mail), including physical (not postal) address (In the case of transshipment,
there may be an intermediate consignee and their contact details and address
should then also be included on the invoice.)
• If the person or firm buying the goods (the importer) is not the same as the
person or firm to whom the goods are being sent, then you should include both
their contact details and addresses in the commercial invoice
• The name of the person and company to notify once shipment has taken place
and their contact details and physical address (here the contact details such as
telephone, fax and cell number and e-mail address are more important than the
physical address)
• A commercial invoice reference number
• A purchase order number or similar reference to correspondence between the
supplier and importer
• The date of issue of the commercial invoice
• A complete, detailed and clear description of the goods in question,
incorporating the appropriate HS codes and brandmarks if applicable (here the
importer may ask you to remove these codes as they may not be the same in the
importing country and may thus incur additional or higher duties to the
importer's detriment because of their inadvertent misuse)
• The quantity of goods in question, including the number of units/items
• The packing details unless provided in a separate packing list, including their
external dimensions, cubic capacity, weight, numbers and contents of each
package shipped, and kinds of packaging involved (pallets, boxes, bags, etc.) -
if a separate packing list is used, reference should be made in the commercial
invoice to the packing list
• The grand total price of the goods for the whole consignment
• Where applicable, the unit prices should be indicated - the unit price multiplied
by the number of units/items should be reflected in the line total. The various
line totals (in the case where different items are included in the same
commercial invoice, or where additional services are itemised in the invoice),
should add up to the total price for the whole consignment (also referred to as
the 'Grand Total')

26
 • The currency in which the goods will be sold (e.g. US dollars)
• The type and amount of any discount given, where applicable
• A declaration of the country of origin of the goods
• The expected country of final destination
• Any freight details such as the port of loading and discharge
• Any additional exporter-provided services that should be added to the invoice to
come to the grand total
• The validity of the commercial invoice - that is, when does the offer expire
(leaving it open-ended could be very risky)
• Any other information relevant to the order
• Make sure the commercial invoice is signed, together with the signature's name
written underneath, with initials, title and position
9.2 Packing list:
An export packing list is an important detailed document which states all of the
product and packaging details included in your export shipment. It is a detailed
document used in International Trade to meet export documentation requirements
around good packaged inside each shipment. If your packing list does not contain all
relevant information it can cause confusion and delays to your shipment.
This is a formal document that itemises quite a number of details about the
cargo such as:
• The name of the exporter (referred to as the shipper) and their contact details
(tele, fax, cell, e-mail), including physical (not postal) address
• The name of the importer (referred to as the consignee, meaning the person or
firm to whom the goods are to be sent) and their contact details (tele, fax, cell,
e-mail), including physical (not postal) address
• The gross (i.e. the weight of the product and packaging - that is, the total
weight), tare (i.e. the weight of the packaging without any contents) and net (i.e.
the weight of the product only) weights of the cargo
• The nature, quality and specifications of the product being shipped
• The type of package (such as pallet, box, crate, drum, carton, etc.)
• The measurements/dimensions of each package
• The number of pallets/boxes/crates/drums, etc.
• The contents of each pallet or box (or other container)
• The package markings, if any, as well as shipper's and buyer's reference
numbers
• Reference to the associated commercial invoice such as the invoice number and
date
27
 • A purchase order number or similar reference to correspondence between the
supplier and importer
• An indication of who the carrier is (airline, shipping line or road hauler)
• Reference to the Bill of Lading or Air Waybill number
9.3 VGM (Verified Gross Mass)
The purpose of the VGM is to advise the ocean carrier/terminal of the total
container weight, including container tare weight, for safety purposes, most likely
latest at the time container is being delivered into the carrier’s custody at the port
terminal. Therefore, the VGM reported to the carrier doesn’t not have to match the
weight shown in the B/L. The VGM is used by the carrier to prepare the vessel’s
stowage plan.
The Shipper has to provide to the ocean carrier the Verified Gross Mass
(Weight) of the Container, including cargo weight, weight of all loading equipment
and materials, dunnage and the tare weight of the container) along with a Signature
(can be electronic) identifying the person responsible for the declared weight. This
information has to be provided to the carrier, most likely before delivery to the
carrier's port terminal.
1. Weigh the packed/laden container.
2. Weigh all packages, packaging and dunnage material and add the tare weight
of the container.
9.4 EGM (Export General Manifest)
Export General Manifest is a legal document mandatory to be filed by carrier of
goods with customs department. This document is used by government authorities as
proof of export. The customs officials certify proof of export on shipping documents
to exporters on the basis of EGM. With such copies or certificates, exporters claim
export benefits based on such document, along with other documents like bill of
lading as proof of exports.
9.5 Certificate of Origin (COO)
A certificate of origin is a document used in international trade. In a printed
form or as an electronic document, it is completed by the exporter and certified by a
recognized issuing body (Chamber of Commerce), attesting that the goods in a
particular export shipment have been produced, manufactured or processed in a
particular country. A "Certificate of Origin" is also called a "Form A"
The origin of the product does not refer to the country where the goods were
shipped from but to the country where they were made. In the event the products were
28
manufactured in two or more countries, origin is obtained in the country where the last
substantial economically justified working or processing is carried out. An often-used
practice is that if more than 50% of the cost of producing the goods originates from
one country, the "national content" is more than 50%, then, that country is acceptable
as the country of origin.
9.6 SI (Shipping Instruction):
A Shipping Instruction (S/I) is a document advising details of cargo and
exporter's requirements of its physical movement to the carrier of the cargo. It
provides basic information to draw up the Bill of Lading.
9.7 Form-13:
It is a document necessary to gate in the container at port. It is issued by the
liner after application by submitting SI. It is like a ticket for the container to enter the
port. After container is gated in FORM-13 is acknowledged by port authority/security
then it becomes EIR.
9.8 Shipping Bill:
Shipping bill is a mandatory document for any exporter when moving goods out
of country. Shipping bill is a legal document to be filed with customs to complete
necessary export customs formalities of country to move goods out of a country.
Shipping bill along with other required export documents is filed by exporter or his
agent. After completion of necessary customs formalities, a ‘let export order’ is
obtained in shipping bill. Shipping carrier can move goods only after obtaining such
let export order as a proof of completion of customs procedures under the said
shipment.
9.9 Bill of Lading (B/L):
A document issued by a carrier, or its agent, to the shipper as a contract of
carriage of goods. It is also a receipt for cargo accepted for transportation, and must be
presented for taking delivery at the destination.
Among other items of information, a bill of lading contains
(1) consignor's and consignee's name,
(2) names of the ports of departure and destination,
(3) name of the vessel,
(4) dates of departure and arrival,

29
 (5) itemized list of goods being transported with number of packages and kind
of packaging,
(6) marks and numbers on the packages,
(7) weight and/or volume of the cargo,
(8) freight rate and amount.
It serves as a proof of ownership (title) of the cargo, and may be issued either in
a negotiable or non-negotiable form. In negotiable form, it is commonly used in letter
of credit transactions, and may be bought, sold, or traded; or used as security for
borrowing money. A bill of lading is required in all claims for compensation for any
damage, delay, or loss; and for the resolution of disputes regarding ownership of the
cargo. The rights, responsibilities, and liabilities of the carrier and the shipper under a
bill of lading (often printed on its back) are governed generally either by the older
Hague rules, or by the more recent Hague-Visby rules.

30
10. Types of B/L:
10.1 Based on Negotiability:

B/L

Original Waybill
Figure 21: Based on Negotiability
10.1.1 Original B/L:
A transport document for maritime shipment which serves as evidence of the
contract of carriage and as a receipt for the goods. It is a negotiable document,
meaning the title can be changed by endorsing the document. It is necessary to
produce the original document in order to claim or receive the cargo from the carrier.
10.1.2 Waybill:
A transport document for maritime shipment which serves as evidence of the
contract of carriage and as a receipt for the goods, but is not a document of title,
meaning non-negotiable. The sea waybill indicates the onboard loading of the goods
and can be used in cases where no ocean bill of lading and no other document of title
is required. For receipt of the goods, presentation of the sea waybill by the consignee
named therein is not required, which can speed up processing at the port of
destination.
10.2 Based on Parties:

B/L

Master House
B/L B/L
Figure 22: Based on Parties
10.2.1 Master B/L:
A Master Bill of Lading (MBL) is issued by the Shipping Line (Carrier) to the
NVOCC Operator, or Freight Forwarder.

31
MBL will contain:
• Shipper will usually be the NVOCC operator, or their agent or the Freight
Forwarder.
• Consignee will usually be the destination agent or counterpart or office of the
NVOCC operator, or the Freight Forwarder
• Notify Party could be the same as Consignee or any other party.
10.2.2 House B/L:
A House Bill of Lading (HBL) is issued by an NVOCC operator, or a Freight
Forwarder to their customers.
HBL will Contain:
• Shipper will usually be the actual shipper/exporter of the cargo (or as dictated
by the L/C)
• Consignee will usually be the actual receiver/importer of the cargo (or as
dictated by the L/C)
• Notify Party could be the same as Consignee (or any other party as dictated by
the L/C)
HBL should always be issued on a back to back basis with a MBL which means that
the HBL should be an exact replica of the MBL issued by the actual Shipping line in
respect of all details except the shipper, consignee and notify party details which will
be different in the HBL and MBL.
10.3 Based on Time of Issuing:

B/L

Received for Shipped On

Shipment B/L Board B/L

Figure 23: Based on Time of Issuing

32
10.3.1 Received for Shipment B/L:
B/L which serves only as a receipt for goods accepted for shipment on a named
ship (vessel), and does not certify their placement aboard the vessel. Used where the
goods arrive at the port of departure before the vessel does, this type of B/L is not
considered a complete B/L and is replaced by a Shipped-on board bill of lading when
the goods do go onboard.
10.3.2 Shipped on Board B/L:
B/L which certifies that the specified goods have been received in apparent
good order and condition from the named shipper (consignor), and have been taken
aboard the named ship (vessel) on the stated date. Also called onboard bill of lading.
Usually B/L issued are of Shipped on Board type, except in few rare scenario’s.

33
11. Security Filing:
Few countries in the world require liners/carriers of goods to file/manifest to
their respective Customs before 24 hours the vessel sails from the Place of Loading
(POL). This done as a security check to prevent any illegal goods, goods from
countries with no trade policy issued being shipped to their country. They may even
ask the liners to unload the goods at POL itself if they find anything malicious. Since
it is done for Security reasons it is called as “Security Filing”.

The following are the security filing used

• AMS-Automated Manifest System (USA)
• ACI-Advance Cargo Information (Canada)
• ENS-Entry Summary Declaration (Europe)
• AFR-Advance Filing Rules (Japan)
• CCAM-China Customs Advance Manifest (China)
• MSI-Mexico Security information(Mexico)

34
12. Import Process:

Make payment & obtain DO

Collect invoice from • Forwarding
KNIE • Complete Billing
Carrier
• Collect original B/L & payment & release
DO
• Cutoms & Transportation
• Checklist for BOE
• Duty payment
• Customs Clearance
Job processing & • Billing
prealert forwarded to Vessel Arrival • Cargo Delivery
consignee

Documents to carrier
CAN to customer
IGM filing/CFS
(48 hrs) Freight
nomination/ACP
Certificate
Movement

Post shipment
Document
Submission to
Customer

Figure 24: Import Process

13. Import Clearance:

Import Clearance

Green
chanel/Accredited
CFS clearance
client
programme(ACP)

Figure 25: Import Clearance types

35
13.1 Accredited Client Programme:
Accredited Clients Programme (ACP) was introduced in 2005 to give assured
facilitation at all the EDI (Electronic Data Interchange)-enabled Customs stations to
importers who are assessed as highly compliant. This means that in most cases,
excepting a small number of occasions when their consignments will be randomly
selected for checks by Customs officers, the Indian Customs EDI System will accept
the declared classification and valuation and assess duty on the basis of importers’
self-declaration. The import consignments of ACP clients will also not be subjected to
routine examination.
The eligibility criteria for getting recognition under ACP is imports worth Rs.10
crore or excise or Customs duty payment of Rs.1 crore in the previous year. The
applicant must have filed at least 25 bills of entry in the previous year and the number
of amendments to bill should not have exceeded 20 per cent of the bills of entry filed.
Reliable systems of record keeping and internal controls and accounting systems of
recognised accounting standards are essential.
13.2 CFS Clearance:
Importers who are not recognised under ACP, their cargo will be moved to CFS
of their choice or randomly, from there the goods will be collected by the
importer/agent after OOC has been issued by Customs.
14. Documents in Import Process:
14.1 IGM:
A Import General Manifest (IGM) is a document to be filed in prescribed form
with the Customs by the carriers of the goods i.e., the Steamer Agent or Airlines in
terms of Section 30 of the Customs Act 1962. This document indicates the details of
all the goods to be unloaded at the Port from a vessel (ship) or Aircraft. Particulars of
goods to be transshipped, private property of the crew and Arms and Ammunition,
Gold and silver should also be declared separately irrespective of whether for landing,
for transshipment or for being carried as same bottom cargo. The IGM has to be filed
within 24 hours after arrival of the Ship /Aircraft. However, in the case of vessel (ship)
the Manifest may be delivered even before the arrival of the vessel. This is known as
Prior Entry Import General Manifest. This system enables the importers to file Bills of
entry and get them assessed and pay duty so that the goods can be taken delivery soon
after the unloading.

36
 IGM
Direct Split
Figure 26: Types of IGM filing
14.1.1 Direct:
In Direct IGM filing the liner himself will file the IGM and split the Sub-Line
No. It is done in shipments which involve Direct B/L. If in case of Master B/L
required to done by liner, required documents should be forwarded to the liner one
week prior to the arrival of the vessel.
14.1.2 Split:
In Split IGM filing liner provides the Line No. to the Freight forwarder or his
agent and it has to be split based on the B/L. Split manifestation occurs in shipments
involving Master B/L.
14.2 Freight Certificate:
Freight Certificate is a document that is issued by the Liner/Carrier to the
customer/agent containing the details of the shipment and the freight amount that is
paid/to be paid by the customer/agent to the liner.
14.3 Bill of Entry:
Bill of Entry is a legal document filed with Customs department by an Importer
or his customs broker. Bill of Entry is filed by an importer or his agent to undergo
necessary import customs clearance formalities to take the goods out customs. Based
on filing of such bill of entry, the goods are examined and assessed by proper officer
of customs to pass out.
It has to be filed by the CHA as agent of the Customer within 24 hours of
Vessel Arrival, failing to file within stipulated time a fine of Rs.5000/day/shipment
will be levied by the Customs.
Once after filing bill of entry along with necessary import customs clearance
documents, assessment and examination of goods are carried out by concerned
customs official. After completion of import customs formalities, a ‘Out of Charge
order’ is issued under such bill of entry. Once an importer or his authorized customs
37
house agent obtains ‘Out of Charge order’ from concerned customs official, the
imported goods can be moved out of customs. After paying necessary import charges
if any to carrier of goods and custodian of cargo, the goods can be taken out of
customs area to importer’s place.
If an importer does not file bill of entry within 30 days of its arrival of goods at
a customs location, such cargo can be auctioned by the authorities if importer does not
respond against the intimation on such auction by customs and other related
authorities. The importer can request customs authorities to extend the date of filing
bill of entry but such request has to be effected within 30 days of arrival of goods at
destination port of customs. However, in special cases, customs permit to file bill of
entry even after 30 days of arrival also.
14.4 Delivery Order:
Delivery order is the order/document given by carrier to the party to take
delivery of goods. Once cargo arrived at port of destination, the goods are moved to
customs bonded area where in customs clearance procedures are carried out. If the
cargo is Less Container Load (LCL), it is stored in the container freight station
warehouse. The import cargo will be under the custody of CFS authorities who acts
as ‘custodian of cargo’.
Custodian of cargo can be a private party, semi-government, or fully owned by
government authorities. However, custodian of cargo in a bonded area can release the
goods to the party only with the permission of Customs authorities and the carrier of
cargo. The carrier of cargo means, the shipping, freight forwarding or transport
company who carries goods to the port of final destination. Once after arrival of cargo
at final customs port of destination, the said carrier of goods issues delivery order to
consignee (or his order) after collecting necessary charges if any.
It is issued in exchange for
• One or all duly endorsed Original Bill(s) of Lading or duly authorised and
issued Bank Guarantee
• A Telex Release confirmation from the loading port or principal confirming
surrender of one or all Original bills of lading issued for the shipment
• A copy of a Seaway bill issued
Then by presenting the DO to the custodian of goods are obtained by Customer/agent.

38
14.5 Liner Invoice:
It is a document issued by the liner to the Customer/Agent containing details of
the shipment, Freight charges, Handling charges, Port charges, B/L charges,
Demurrage charges & Detention charges (If applicable).
15. Special Charges:
These are charges which are applicable when the container is not
moved/returned within the agreed free days.

Special
Charges

Demurrage Detention
Figure 27: Special Charges

15.1 Demurrage:
Demurrage is the charge levied by the liner, if the container is held inside the
port/terminal longer than the agreed free days. Free days is calculated from the time
when the container is discharged at the port/terminal. Usually agreed free days is three
days.
15.2 Detention:
Detention is the charge levied by the liner, if the container is not returned at the
empty yard with in agreed free days. Free days is calculated from the time when the
vessel has arrived at port. Usually agreed free days is fourteen days.

39
16. RESEARCH METHODOLOGY:
A research method is a systematic plan for conducting research. Sociologists
draw on a variety of both qualitative and quantitative research methods, including
experiments, survey research, participant observation, and secondary data.
16.1 Types of Research Designs:
• Exploratory Research Design.
• Descriptive Research Design.
• Experimental Research Design.
In my study, descriptive research design is adopted. The method of research
utilized in descriptive research is survey method.
The major purpose of descriptive research is description of the state of affairs,
as the term ex-port fact research studies. The main characteristic of this method is that
the research has no control over the variables, the research can only report what has
happened or what is happening. It also includes attempts by research cannot control
the variables.
16.2 Research Design:
Research Design is the specification of the method and procedure for acquiring
the information needed to solve the problem. The research design followed for this
research study is descriptive research design where we find a solution to an existing
problem. The problem of the study is to find out the Delays/Difficulties faced by the
operators during performance of the operations at KUEHNE+NAGEL.
16.3 Sample Size:
Sample size of my survey is 11 employees from Sea Freight-Export department
and 9 employees from Sea Freight-Import at KUEHNE+NAGEL.
16.4 Sampling Method:
Systematic Random sampling method is used for collect the data. The overall
employees at KUEHNE+NAGEL Sea Freight is 30. I have taken 20 employees from
Sea Freight. The research has chosen 100% of my sample size to get good report from
the survey.
16.5 Period of Study:
The study was conducted for 10 weeks from May 2017 to July 2017.

40
16.6 Questionnaire Design:
Scaled questions: Responses are graded on a continuum (example: rate the
performance of agency (PQ,FSSAI) on a scale from 1 to 5, with 5 being the most
preferred appearance). Examples of types of scales include the Likert scale, semantic
differential scale, and rank-order scale (see scale for a complete list of scaling
techniques.).
16.7 Method of Data Collection:
The data needed for the research study was collected by Primary sources and
Secondary sources.
16.7.1 Primary Data:
Primary data was collected through survey from the employee using the
questionnaire. Questionnaire helps to recognize the employee difficulties. Other data
were collected from various discussions with the employees.
16.7.2 Secondary Data:
Secondary data needed for conducting this research work were collected form
brochures of the company profile and the topic, books internet and various journals
etc.
16.8 Statistical Tools:
The statistical tool that was used for my project is “Percentage Method”.
16.8.1 Percentage Method:
The percentage method was extensively used for findings various details. It is
used for making comparison between two or more series of data.
Number of respondents
Percentage of respondents = -------------------------------------------------- X 100
Total number of people questioned

41
16.9 Diagrams and Charts:
1) Bar Chart: Bar Charts were extensively used to compare the values of various
variables or determinants.
2) Line Diagram: This chart shows the trend over a period of time. In this Research, it
is used to show the employee experience.

42
17. Research Questionnaire Responses

Table-1: Showing the experience of Employees at Kuehne+Nagel:

Experience (In Years) No. of Respondents

12 1
10 2
9 1
8 1
6 5
4 1
3 5
2 4

Chart-1: Showing the Working Experience of the Employee:

Employee Experience
6

5
No.of Respondents

0
0 2 4 6 8 10 12 14
Experince(In Years)

INFERENCES:
It can be inferred from the above chart that Kuehne+Nagel has very good
mix of experienced as well as young employees.

43
Table-2: Delay in Process due to traffic during transit

Particulars No. of Respondents Percentage

Strongly Agree 4 20.00%
Agree 16 80.00%
Neither 0 0.00%
Disagree 0 0.00%
Strongly Disagree 0 0.00%
Total 20 100%

Chart-2: Delay in Process due to traffic during transit

90.00%
80.00%
70.00%
60.00%
Percentage

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Strongly Agree Neither Disagree Strongly
Agree Disagree

INFERENCES:
It can be seen from the chart that 100% of surveyed employees agree that they
face delay in process due to traffic during container/goods transit.

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Table-3: Delay in Process due to queue at Port

Particulars No. of Respondents Percentage

Strongly Agree 5 45.45%
Agree 6 54.55%
Neither 0 0.00%
Disagree 0 0.00%
Strongly Disagree 0 0.00%
Total 11 100.00%

Chart-3: Delay in Process due to queue at Port

60.00%

50.00%

40.00%
Percentage

30.00%

20.00%

10.00%

0.00%
Strongly Agree Neither Disagree Strongly
Agree Disagree

INFERENCES:
It can be seen from the chart that 100% of surveyed employees agree that
they face delay in process due to queue at port entrance.

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Table-4: Delay in Process due to release of Form-13 delayed

Particulars No. of Respondents Percentage

Strongly Agree 3 27.27%
Agree 7 63.64%
Neither 1 9.09%
Disagree 0 0.00%
Strongly Disagree 0 0.00%
Total 11 100%

Chart-4: Delay in Process due to release of Form-13 delayed

70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Strongly Agree Neither Disagree Strongly
Agree Disagree

INFERENCES:
It can be seen from the chart that 90.91% of surveyed employees agree that they
face delay in process due to delay in release of Form-13 by liner.

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Table-5: Delay in Process due to Improper SOP

Particulars No. of Respondents Percentage

Strongly Agree 2 18.18%
Agree 6 54.55%
Neither 1 9.09%
Disagree 0 0.00%
Strongly Disagree 2 18.18%
Total 11 100%

Chart-5: Delay in Process due to Improper SOP

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Strongly Agree Neither Disagree Strongly
Agree Disagree

INFERENCES:
It can be seen from the chart that 72.73% of surveyed employees agree that they
face delay in process due to Improper SOP.

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Table-6: Delay in Process due to Booking validity extension

Particulars No. of Respondents Percentage

Strongly Agree 2 18.18%
Agree 7 63.64%
Neither 1 9.09%
Disagree 1 9.09%
Strongly Disagree 0 0.00%
Total 11 100%

Chart-6: Delay in Process due to Booking validity extension

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Strongly Agree Agree Neither Disagree Strongly
Disagree

INFERENCES:
It can be seen from the chart that 81.82% of surveyed employees agree that they
face delay in process due to Booking validity extension.

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Table-7: Customer requests Container when meeting cut-off is difficult

Particulars No. of Respondents Percentage

Strongly Agree 1 9.09%
Agree 6 54.55%
Neither 2 18.18%
Disagree 1 9.09%
Strongly Disagree 1 9.09%
Total 11 100%

Chart-7: Customer requests Container when meeting cut-off is difficult

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Strongly Agree Agree Neither Disagree Strongly Disagree

INFERENCES:
It can be seen from the chart that 100% of surveyed employees agree that
Customer Requests Container when meeting Cut-off is difficult.

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Table-8: Delay in Process due to Damage to goods at CFS

Particulars No. of Respondents Percentage

Strongly Agree 2 22.22%
Agree 6 66.67%
Neither 1 11.11%
Disagree 0 0.00%
Strongly Disagree 0 0.00%
Total 9 100%

Chart-8: Delay in Process due to Damage to goods at CFS

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Strongly Agree Agree Neither Disagree Strongly Disagree

INFERENCES:
It can be seen from the chart that 88.89% of surveyed employees agree that they
face delay in process due to damage to goods during loading and unloading at CFS.

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Table-9: Delay in Process due to Misplacing of cargo at CFS

Particulars No. of Respondents Percentage

Strongly Agree 1 11.11%
Agree 6 66.67%
Neither 0 0.00%
Disagree 2 22.22%
Strongly Disagree 0 0.00%
Total 9 100%

Chart-9: Delay in Process due to Misplacing of cargo at CFS

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Strongly Agree Agree Neither Disagree Strongly Disagree

INFERENCES:
It can be seen from the chart that 77.78% of surveyed employees agree that they
face delay in process due to Misplacing of goods at CFS.

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Table-10: Delay in process due to congestion at transshipment port

Particulars No. of Respondents Percentage

Strongly Agree 3 27.27%
Agree 5 45.45%
Neither 1 9.09%
Disagree 2 18.18%
Strongly Disagree 0 0.00%
Total 11 100%

Chart-10: Delay in process due to congestion at transshipment port

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Strongly Agree Agree Neither Disagree Strongly Disagree

INFERENCES:
It can be seen from the chart that 72.73% of surveyed employees agree that they
face delay due to congestion at transshipment port.

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Table-11: Customer asks for D/O release in Late evening

Particulars No. of Respondents Percentage

Strongly Agree 5 55.56%
Agree 4 44.44%
Neither 0 0.00%
Disagree 0 0.00%
Strongly Disagree 0 0.00%
Total 9 100%

Chart-11: Customer asks for D/O release in Late evening

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Strongly Agree Agree Neither Disagree Strongly Disagree

INFERENCES:
It can be seen from the chart that 100% of surveyed employees agree that
Customer asks for D/O release in Late evenings.

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18. Findings and Suggestions:

There is 100% agreement among employees that they face delay in process due to
traffic during container/goods transit.
• Advice transport vendors to install GPS devices in their vehicles which will
help them plan the route with shortest distance and transit timing. It will also update
drivers with live traffic information, reducing the delay during transit and also have
live tracking facility of vehicles.

There is 100% agreement among employees that they face delay in process due to
traffic/queue at port entrance.
• Collect the information regarding the time consumed in queue at the port from
transport vendors, drivers & operators. Find an average time consumed at port queue
and plan the shipment according to the time consumed at the port, thus avoid missing
port cutoff.
• Queue at port occurs because the truck movement is restricted during daytime in
city causing all truck to move to port during night time, this can be prevented if the
road project connecting port to highways is completed as it has been put on hold.

Delay is faced by employee’s due to delay in release of Form-13 by liner which is

agreed by 90.91% of employees.
• As main reason for delay in release of Form-13 is due to delay in submission of
SI, have a preventive measure to avoid delay in SI submission, like collect SI from
customer during Commercial Documents submission itself.

Employees face delay in process due to Improper/unclear SOP, it is agreed by 72.73%

of them.
• As SOP is given to the operator by the Sales team, before starting handling
goods of the customer a meeting is to be scheduled between the sales representative,
Operator assigned specifically for a customer and customer/his representative to
discuss the SOP which will help better understanding by the operator of the customer
needs and it will also help avoid any operational bottlenecks.

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It is agreed by 81.82% of surveyed employees that they face delay in process due to
Booking validity extension.
• Before booking get clear information about the cargo readiness, when the
customer will be able to pick up the container from yard, planning details from
Customer in a detailed manner and place the booking accordingly which will help
prevent booking extension. If there is any uncertainty regarding the details and the
operator feels customer might miss booking validity, get an extended booking validity
while booking itself, which will help reduce reprocessing and follow up.

All surveyed employees agree that Customer Requests Container when meeting Cut-
off is difficult.
• Have a Standard Time prior to cut off (Like 24 hours) after which booking will
not be placed, which will help prevent last minute rush. It will also help improve
Customer discipline and have smooth process.

Delay in process due to damage to goods during loading and unloading at CFS has
been faced by 88.89% of employees.
• As damage to goods happens due to mishandling of goods by the workmen at
CFS, Instruct the surveyors to be strict with the workmen during loading and
unloading and guide them to handle the goods with care without any personal
agenda.

Delay has been faced by 77.78% of surveyed employee’s due to Misplacing of goods
at CFS.
• Instruct the Surveyor, Workmen and CFS personnel allocate a specific place for
KN cargo as the quantity is high.
• Instruct Surveyor/person in charge to store the cargo in a specific place in the
warehouse, instead of placing it in places which are empty which will help reduce
delays.

72.73% of surveyed employees agree that they face delay due to congestion at
transshipment port.
• During times when there is congestion at transshipment port, avoid using liners
that ship through transshipment ports and use liners providing direct services.

All employees agree that Customers ask for D/O release in Late evenings.
• Have a Set time after which DO will not be issued (like 5pm) and communicate
it clearly with the customers. This will help operators to focus on a particular job and
have time to plan for next day’s work. This will also help improve employee morale.

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19. Conclusion:

Learning more about the various tasks and challenges of logistics has been a
great help in my understanding of what a logistician does. This will undoubtedly come
in handy if I choose to become a Logistics Officer in any of the leading organization. I
have gained new insight into logistics industry. Learning about Sea Freight and its
process should make it easier to understand some of the tasks I will be set to do in the
future.

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