Webinar - Preparing Your Logistics For The Aftermath Of The COVID-19 Lockdown.

Key Takeaways

• Lack of truck availability & reduced number of customs officials are leading to severe delays of import cargo evacuation from ports and CFSs.
• No more hard copies of Bill of Entry are required. Everything needs to be done digitally.
• Plan your cargo movements 15 days in advance to get the best chance of truck, driver & labour availability to match your timelines.
• Work From Home: there is a stark realisation that not all logistics operations of incumbent players are amenable to the work-from-home situation. Choose your logistics provider wisely to ensure minimal disruptions to your supply chain. A tech-enabled logistics provider is better placed to handle the current situation.
• When the lockdown opens, use railways for inland movements to avoid road transport issues
• Shipping lines have waived off detention charges from 22nd March to 14th April, so chances of extension of waiver till 3rd May is very high.

SUMMARY

• Mr. Karunakar Shetty (President, Brihan Mumbai Custom Brokers Association (BCBA))

  • All Essential Services are allowed to work but the main challenges are faced by local transportation as policemen are asking for passes. These passes have also been facilitated by port authorities and customs officials besides the police.
  • Public notices have been issued regularly by the Government to ensure a safe working environment. These are available on government websites and also on the BCBA website.
  • Working capital loans should be arranged for logistics providers by the authorities to help them tide over this difficult time and minimize job losses.
  • To ensure the safety and security of logistics workers, BCBA is trying to get approval from the Government on Insurance Policy of INR 50 Lacs per person.
  • At present, around 85000 containers are stuck at the port
  • No more hard copies of Bill of Entry are required. Everything needs to be done digitally.
  • Perishable commodities continue to be exported but are facing some challenges due to the non-availability of transport solutions.

• Mr. Aditya Shah (Executive Director, V-Trans India Ltd)

  • Many drivers have returned to their home villages, trucks are left stranded where they were when the lockdown was announced. Vehicles which are currently moving are facing problems like being held at check posts.
  • Government support and guidelines are still awaited to tackle the current situation
  • Currently, only 2 to 3% of normal operations are carried out of which part truck loads remain largely unaffected but full truckloads are severely affected.
  • Transport companies need to incorporate social distancing in their long term plans to ensure driver safety and continued operations.
  • Plan your cargo movements 15 days in advance to get the best chance of truck, driver & labor availability to match your timelines.

• Mrs. Pratibha Bansal (Head – International Logistics, Future Supply Chains)

  • Shipping lines have provided solutions like telex release of BL and working on the basis of email confirmations but bank guarantees or bonds need to be provided to get the cargo in the consignees’ possession. This is still a challenge as bonds are not available from the banks due to lockdown.
  • When the lockdown opens, use railways for inland movements to avoid road transport issues
  • Using trade finance option as much as possible to save on working capital requirements
  • Shipping lines have waived off detention charges from 22nd March to 14th April, so chances of extension of waiver till 3rd May is very high.

• Mr. Shantanu Bhadkamkar (President, Association of Multimodal Transport Operators of India)

  • Work From Home: Stark realisation that not all logistics operations of incumbent players are amenable to work-from-home situation.
  • Village Heads are taking the decision whether workers should be allowed to go to Empty Container Yard or not, which adds a new dimension of uncertainty to operations
  • People should try to clear their goods as soon as possible for which we require active representation of Exporters/ Importers as Police and Health workers are taking risks for us.