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OVERVIEW ................................................................................................................................... 2
GOALS ........................................................................................................................................... 2
SOLUTIONS .................................................................................................................................. 3
1. To combat port congestion due to improper scheduling ......................................................... 3
1.1 Live location sharing of the goods provided by the port authority to the forwarders ....... 3
1.2 Live and customizable (as per interest area) newsfeed ..................................................... 4
1.3 AI for cargo arrangement at Container freight station (CFS) ............................................ 6
2. To combat document tracking, recording and approval issues ............................................ 6
2.1 Automated updates, checking and approval issuance mechanism ................................... 6
2.2 Reduction in the number of documents ............................................................................ 9
CONCLUSION ............................................................................................................................... 9
REFERENCES ............................................................................................................................... 9
APPENDIX ................................................................................................................................... 10
19.11.2018
OVERVIEW
The shipping industry is highly dependent on the economic activity of the world. In the face of
growing world trade, this industry is in demand. Unfortunately, it has not adapted to new
technologies at a pace similar to the growth of world trade. This has resulted in numerous
problems of which our research paper will focus on the following :
All these documents take several days to be prepared and sent to the concerned
authorities. These lead time forces approvers of these documents to sit idle till the
documents arrive and once they arrive, be overburdened with work. This leads to drop in
efficiency
GOALS
Our goal shall be to conceptualize the use of technologies like Internet of things, Artificial
Intelligence and Blockchain to counter the above mentioned problems.
SOLUTIONS
Our solution here comes in the form of a software Transpro 1.0 that has the following features to
boost competitiveness, strategy building and productivity.
Following are the ways in which the features of Transpro 1.0 shall function to address the
problem areas identified in the ‘Overview’ section
Here the green block is called the genesis block in which we intend to store basic
information as mentioned above. The black chain of blocks is the steps through
which the cargo will go through in its transportation time. The purple blocks are
pieces of information that shall be added to the unique code as the material
passes each stage.
2.1.3 The information from the unique code shall be stored on a global cloud server in
the form of modules and displayed to the port authorities as illustrated below—
HS codes of items which
are due immediately are
highlighted in RED.
2.1.4 Port authorities will be able to click on these modules (saved under HSXXX) to
access the information received from the freight forwarder or consigner
2.1.5 These modules shall come with a checking and approving feature.
2.1.6 Once the port authorities check all the points and approve the document, they
will receive a prompt window as illustrated below.
2.1.7 Meanwhile, the forwarder will be updated of these activities via the below
illustrated interface—
(The above image shows the tentative interface of the software we propose to develop for effective
communication between the consigner, freight forwarder and port authorities)
2.1.8 Administrative staff shall be spared the brunt of constant follow-ups from
consigners. Also, consigners will get accurate real-time information.
2.2 Reduction in the number of documents
As mentioned in the ‘Overview’ section of this report, following are the documents required for
exporting goods from any country—
a. Commercial invoice
b. Packing list
c. Certificate of inspection
d. Insurance policy
e. Shipping invoice
f. Bill of lading
g. Certificate of origin
h. Shipping Instructions
These documents should be made strictly electronic so that the transmission is faster. These can
be added into the information modules prepared by the blockchain API. Shipping instructions
should be uploaded to the cloud so that it can be accessed by any of the concerned stakeholders
from any location. Furthermore, hard copies need not be moved around in the system.
Implementation of Blockchain in supply chain will eliminate the need for certificate of origin
because the unique code generated by the API can be accessed by authorized personnel to
retrieve all the information about the history of the product, its journey and current status.
CONCLUSION
Transpro 1.0 shall be with the cargo at every step and shall help its administrators to avoid
glitches. Hence, it shall become an integrated communication tool and a facilitator of services
like barcode generation, information transfer, checking of information and e-approval/e-
clearances, reducing the cumbersome task of managing and moving bulks of paper work along
with the cargo.
REFERENCES
1. http://www.mach1global.com/what-is-the-freight-forwarding-process/
2. http://www.jnport.gov.in/Container_Freight_Stations.aspx
3. https://www.universalcargo.com/what-is-customs-clearance/
4. https://2016.export.gov/logistics/eg_main_018121.asp
5. https://www.forbes.com/sites/andrewrossow/2018/04/11/bringing-blockchain-into-industry-
4-0/#60f6c6556dc7
6. https://www.morethanshipping.com/issues-challenges-facing-shipping-industry-2018/
APPENDIX
Appendix 1
This is a schematic of a port which can be used to refer the journey of goods in the port. The
markings done in red illustrate the journey of the material from the exporter’s warehouse until
loading
Appendix 2
Container – It is a reusable storage and transport unit for moving goods between locations. It
comes in different types—
Demurrage – Tramp shipping demurrage are the charges paid if the shipper fails to
load/discharge the ship at the scheduled time. Liner Shipping demurrage are the charges paid
when the goods are stored on the port for more than the free time (agreed in a policy as per
shipping line)
Commercial invoice – This is a legal document which notifies the customer about the amount
that needs to paid for the supplied product. It consists of a description of the goods that are being
supplied along with the amount
Packing list – This enlists the contents, size and weight and HS code of the products stuffed in a
container
Certificate of inspection – It is a document that testifies that the supplied goods are in good
quality and functionality when packed
Shipping invoice - A shipping invoice is an account of items sent from one organization to
another. It should include name and location of the sender and receiver of the goods.
Bill of lading – A binding document between the shipper and cargo carrier containing
description, quantity and consignee information.
Certificate of origin – It testifies that the products have been manufactured in the country in
which this certificate is issued.