Switch Bill of Lading

Switch Bill of Lading (Switch BL): What It Is & When to Use It

<blockquote id=""><em id="">The bullwhip effect typically starts at the store and moves up the supply chain to the wholesaler, distributor, manufacturer, and finally the raw materials supplier.</em></blockquote><p id="">The bullwhip effect on a supply chain happens when shifts in customer demand prompt businesses to place more orders for products to satisfy the new demand. This result arises from the fact that the demand for items is dependent on demand estimates from businesses rather than actual consumer demand, and it can be seen in most supply chains across many industries.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=bullwhip_effect" target="_blank"><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f221ea0a3531379525477_Blog-Creative-1.png" loading="lazy" width="auto" height="auto" alt="638f221ea0a3531379525477_Blog-Creative-1.png" style="width: auto; height: auto;"></div></a></figure><h3 id=""><strong id="">Causes of Bullwhip Effect</strong></h3><p id="">The two fundamental reasons for occurrence of bullwhip effect in the supply chain are as follows:</p><p id="">1) Error in forecasting: Businesses that launch new products into the market make demand projections based on the condition of the market. Most firms in the supply chain place orders for more than they can sell to avoid product shortages and lost sales. The "excess" inventory starts to grow or shrink because of the supply and demand swings that occur in the market regularly. </p><p id="">2) Operational causes: Individual demand projections provided by each supplier company in the supply chain are the primary operational cause of the bullwhip effect. However, it does not affect the customers who will buy the items. Another frequent operational cause is a lack of communication; businesses may fail to pass information about current market circumstances up the supply chain, which results in incorrect inventory levels.</p><h3 id=""><strong id="">Example of the Bullwhip Effect</strong></h3><p id="">Let us say a bakery sells on average 200 packets of a particular bread variety every week. One week, though, they sell 350 packets of those bread. This might have happened because they ran a promotional campaign or other stores may have shut down temporarily.</p><p id="">The bakery now thinks that its customers want more of that bread because the demand increased drastically. Eventually, they decide to keep 300 packets instead of 200 to meet the higher forecasted demand. The bread manufacturer starts producing 400 packets so that they don’t run out of stock. To maintain sufficient raw material levels, the manufacturer orders more quantity from its suppliers. </p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=bullwhip_effect" target="_blank"><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f224556fe413902d3d886_Blog-Creative-2.png" loading="lazy" width="auto" height="auto" alt="638f224556fe413902d3d886_Blog-Creative-2.png" style="width: auto; height: auto;"></div></a></figure><h3 id=""><strong id="">Steps to Minimize Bullwhip Effect</strong></h3><p id="">Let us look at how we can address the causes of the bullwhip effect most effectively to reduce loss and cost.</p><p id="">1) Improving communication throughout the supply chain: For the past few years, supply chain partners have worked to increase communication, visibility, and transparency, but now it is more crucial than ever. Partners should establish regular weekly and daily communication as well as adopt uniform technology that is widely accepted and used to achieve this.</p><p id="">2) Using better forecasting models: The bullwhip effect is mostly caused by inaccurate demand forecasting. To prevent one wrong order from upsetting the entire chain, it is essential to implement improved forecasting techniques. Many cutting-edge technologies make it easier and more precise to forecast demand, from the customer all the way back to production and raw materials.</p><p id="">3) Consistency in pricing: Deals and discounts are effective at moving inventory and attracting new customers, but they can also lead to significant swings in trade that are challenging to manage. These kinds of swings need to be fully anticipated and planned for beforehand. Consistently providing reasonable product prices reduces sale surges that ultimately result in inaccurate demand orders and a negative bullwhip effect.</p><p id="">4) Customer service enhancement: Understanding what consumers want and decreasing cancelled or returned orders are both made possible by excellent customer service. A strong line of demand is created by customer service team's ability to significantly lower returns. This results in a more streamlined ordering pattern where demand is taken into consideration without speculation, loss, or harm.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=bullwhip_effect" target="_blank"><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f226681a8e6b413a2e2fa_Blog-Creative-3.png" loading="lazy" id="" width="auto" height="auto" alt="638f226681a8e6b413a2e2fa_Blog-Creative-3.png"></div></a></figure><h3 id=""><strong id="">Conclusion</strong></h3><p id="">The various participants in the supply chain, such as the buyers, suppliers, manufacturers, and retailers, have a limited amount of power over the entire process, but every participant is influenced by what others do. These various parties' efforts to adjust to shifts in demand cause ripple effects throughout the chain. Retailers, manufacturers, and other suppliers in a certain supply chain can avoid the bullwhip impact by using improved planning and communication methods.</p>

Bullwhip Effect

Bullwhip Effect in Supply Chain: Causes, Impact & Solutions

<blockquote id=""><em id="">Typically, 3PL companies arrange for their clients' incoming and outbound transportation and warehousing transportation. The majority of 3PL companies have contracts with other freight and shipping companies, and they either own or rent the warehouse space that they give to their customers.</em></blockquote>
<p class="MsoNormal"><em>Typically, 3PL companies arrange for their clients' incoming and outbound transportation and warehousing transportation. The majority of 3PL companies have contracts with other freight and shipping companies, and they either own or rent the warehouse space that they give to their customers.</em></p>
<p class="MsoNormal">Third-party logistics is referred to as 3PL. It refers to contracting out your order management and fulfilment to a different business. There are numerous sorts of 3PL service providers, each of which handles a distinct task, depending on the needs of your business.</p>
<p class="MsoNormal">As per a&nbsp;<a href="https://www.3plogistics.com/3pl-customers-report-identifies-service-trends-3pl-market-segment-sizes-growth-rates/"><strong>research</strong></a>&nbsp;published by Armstrong &amp; Associates, 90% of Fortune 500 organisations seek assistance from third-party logistics (3PL) companies. The 3PL business has expanded at an exponential rate alongside the e-commerce industry and is expected to reach $1.75 trillion by 2026.</p>
<p class="MsoNormal">A 3PL aids retailers in controlling their supply chain. Typical 3PL services include order fulfilment, shipment coordination, retail distribution, exchanges, and returns in addition to the administration of warehouses and inventories. A 3PL facilitates the ability to focus on other aspects of a merchant's business is ultimately made possible by working with a 3PL.</p>
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<p class="MsoNormal">3PLs have been and will continue to be the secret ingredient that has helped many prosperous businesses survive the current supply chain crises. Unfortunately, the incidents of political unrest, natural calamities, a lack of human resources, and regulatory difficulties that we have witnessed over the past two years are not an outlier. Experts report that severe supply chain disruptions now occur every 3.7 years, indicating that these disruptions are occurring more frequently and with greater intensity.</p>
<h2 class="text-xl font-bold text-text-100 mt-1 -mb-0.5">Evaluating 3PL Partner</h2>
<p class="MsoNormal">To get the best results from working with 3PL partner, you can keep the following points in mind:</p>
<p class="MsoNormal">1)&nbsp;<strong>Operations</strong>: Operational effectiveness is a prerequisite. All other considerations are irrelevant if the 3PL's performance metrics are unsatisfactory.</p>
<p class="MsoNormal">2)&nbsp;<strong>Pricing</strong>: Any brand finds it difficult to justify "paying more" because logistics (shipping + fulfilment) is a cost centre. But if the past few years have taught us anything, it's that it's not always wise to choose low-cost executives for various positions in one's company.</p>
<p class="MsoNormal">3)&nbsp;<strong>Technology</strong>: We categorise technology into two categories: (a) analytics/dashboards and (b) speed to integration, or how quickly and effectively they can interact with your technology platform.</p>
<p class="MsoNormal">4)&nbsp;<strong>Culture</strong>: To do this, you must get to know the entire 3PL team, not just the salespeople. Visits to the location are highly recommended so that you can tour the space, assess the layout and cleanliness, and, most importantly, get to know the people who will be doing the work for you&mdash;for example, the general manager, operations managers, etc.</p>
<p class="MsoNormal">5)&nbsp;<strong>Location</strong>: While some brands prefer locating a 3PL close by based on the distance to their home or workplace, we recommend focusing on your end user's proximity. This decreases the amount of money spent on shipping and the amount of time it takes for a package to arrive once it has been picked up by the carrier (costs rise with distance shipped).</p>
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<h2 class="text-xl font-bold text-text-100 mt-1 -mb-0.5">Advantages of 3PL</h2>
<p class="MsoNormal">The advantages of using a 3PL service are numerous. The biggest benefit is that by contracting out these services, the company can concentrate on other areas of its operations. Let us talk get to know a few of these benefits.</p>
<p class="MsoNormal">1)&nbsp;<strong>Focus:</strong>&nbsp;Companies with little logistics skills can focus on their main competencies, such as product development, marketing, sales, and business expansion, without having to get engaged in these crucial but non-core tasks. Because of this, businesses may profit from expert logistical knowledge without having to neglect other, more crucial duties.</p>
<p class="MsoNormal">2)&nbsp;<strong>Cost and time reduction</strong>: Due to their expertise in logistics, 3PL providers will have a larger network than the supply chain of a typical business. They will presumably be more powerful in negotiations, have more privileged connections within the logistics sector, and be able to provide bigger volume discounts to customers. All of these could reduce overhead expenses.</p>
<p class="MsoNormal">3)&nbsp;<strong>Flexibility</strong>: Third-party logistics providers can give greater flexibility for geographic distribution and offer various services than client companies could arrange for themselves. Zone skipping, a freight consolidation technique that allows businesses to combine their packages and dispatch them across many locations, is an advantage that many 3PL suppliers pass along to potential clients. It results in lower shipping costs because it shortens the distance between the goods that need to be sent and the customers. Moreover, this allows companies to manage their resources predictably and accurately.</p>
<p class="MsoNormal">4)&nbsp;<strong>Scalability</strong>: Using 3PL provider services makes it simple to expand a business into new countries and regions, particularly emerging nations, without making any significant financial commitments like hiring employees or renting a warehouse. A company can enhance customer service, take advantage of new supply chains, and enter untapped markets by getting a 3PL.</p>
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<h2 class="text-xl font-bold text-text-100 mt-1 -mb-0.5">Activities Under Third-Party Logistics</h2>
<p class="MsoNormal">3PL Providers perform several functions. Let us try to know a few of them:</p>
<p class="MsoNormal">1)&nbsp;<strong>Shipping and transportation</strong>: These businesses frequently highlight technology, usually integrated freight management services or a Transportation Management System (TMS). These technological advancements were designed to boost productivity and simplify repetitive, monotonous tasks like financial reporting and freight payment.</p>
<p class="MsoNormal">2)&nbsp;<strong>Warehouse</strong>: 3PL companies support a company's warehousing processes with a focus on safely keeping goods. Numerous 3PL warehouse companies offer flexible storage management options.</p>
<p class="MsoNormal">3)&nbsp;<strong>Distribution</strong>: A lot of 3PL companies also provide a range of wholesale and distribution services, such as manufacturing, picking, packing, and outbound order fulfilment.</p>
<p class="MsoNormal">4)&nbsp;<strong>Customs clearance</strong>: For most businesses, it might be challenging to find dependable and consistent freight brokerage. By cutting out the middlemen, however, partnering with 3PL suppliers can simplify the process.</p>

Discover how 3PL logistics providers streamline freight management, warehousing, and supply chain operations. Complete guide to third-party logistics benefits, services, and selection criteria.

Third-party Logistics (3PL)

3PL Logistics Explained: Benefits of Third-Party Logistics Providers

<blockquote id=""><em id="">The milk run has evolved over time to better integrate the logistical chain through planned routes. During large batch deliveries, this technique allowed for a reduction in the number of trucks while still maximising demand and the number of trips.</em> </blockquote><p id="">A Milk Run is a logistics delivery technique that guarantees that various deliveries from multiple vendors may be handled with optimal capacity utilisation and minimal expenditures. The term "Milk Run" refers to the process by which vehicles pick up milk from various suppliers and transfer it to a central location for processing. This method is how dairy cooperatives get their daily supply of milk. </p><p id="">A milk run makes sure that the shortest possible distance is covered and that the highest amount of demand is loaded into the truck or delivery vehicle to meet both the demand requirement and the need for efficient transportation at the lowest possible cost.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=milk-run-blog" target="_blank" id=""><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f221ea0a3531379525477_Blog-Creative-1.png" loading="lazy" width="auto" height="auto" alt="638f221ea0a3531379525477_Blog-Creative-1.png" style="width: auto; height: auto;"></div></a></figure><h3 id=""><strong id="">Importance of Milk Run</strong></h3><p id="">The milk run method is important as it encourages a process that is more effective and less expensive. Instead of each supplier or vendor sending several deliveries to a single point of demand, a single delivery vehicle travels to multiple sites to pick up the items. This guarantees cheaper costs and full vehicle use. It circles back around.</p><p id="">In lean and agile firms where reducing costs is essential, the milk run has become a significant concept. It makes sure that material delivery occurs at the most advantageous periods and is closely related to just in time.</p><h3 id=""><strong id="">Milk Run and Material Handling </strong></h3><p id="">Many lean manufacturing firms now frequently use the milk run approach within their operations. The lean philosophy places a strong emphasis on streamlining every step of manufacturing, including transportation and material handling. Simply said, the milk run method enables more frequent deliveries of materials and supplies to several assembly areas or areas of your business that require restocking. This frequently lowers the levels of overstocking or the need to manually request more materials. </p><p id="">Different components of the machinery are made in various areas of the facility. The assembly is done by a different team. The assembly division could receive finished items from each fabrication department. Sending a driver to each sector to load and carry all the pieces to the assembly location would likely be more effective, though. In this case, one driver replaces several, allowing each department's employees to focus on fabrication.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=milk-run-blog" target="_blank" id=""><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f224556fe413902d3d886_Blog-Creative-2.png" loading="lazy" width="auto" height="auto" alt="638f224556fe413902d3d886_Blog-Creative-2.png" style="width: auto; height: auto;"></div></a></figure><h3 id=""><strong id="">Adopting Milk Run in Supply Chain</strong></h3><p id="">The most typical configuration of this set-up involves operators and material handlers following predetermined standard delivery routes all throughout the building. These supplies are typically made to portions of the facility that are on the assembly line and are always in need of replenishment. For maximum efficiency throughout the shift, these delivery routes are typically timed out, allowing the assemblers to continue working in accordance with production schedules.</p><p id="">Before you get it right, adopting milk run may require a lot of testing, experimentation, and patience. One of the most important aspects of how you would need to set up your milk run routes is the layout of your facility or factory. The length of the route and the separation between the storage area and the various assembly locations all have a significant impact on how effective and efficient the route is.</p><p id="">It's simplest to describe the procedure using an example. Let's imagine that numerous growers from a single area provide wheat to a mill that produces flour. Every day, a delivery vehicle from each farm could deliver a load of grain to the mill.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=milk-run-blog" target="_blank" id=""><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f226681a8e6b413a2e2fa_Blog-Creative-3.png" loading="lazy" id="" width="auto" height="auto" alt="638f226681a8e6b413a2e2fa_Blog-Creative-3.png"></div></a></figure><h3 id=""><strong id="">Example of Milk Run</strong></h3><p id="">An automobile company can offer a good example of a milk run in logistics. Cars require numerous suppliers to deliver individual components. One truck may be dispatched by the manufacturer on a regular basis to make a milk run. That truck may make a circuit of pickups to collect the materials required for car assembly, such as steel, rubber, plastics, and aluminium.</p><p id="">The best method for this to happen is for the suppliers to be strategically placed geographically close to the manufacturing site and to one another. The milk run concept in logistics is related with just-in-time delivery requirements in addition to this advantage of combined pickup and delivery. The runs are planned at intervals to prevent downtime and to prevent overstocking supplies at the manufacturing site.</p><p id="">To be most effective, this technique probably needs to be improved over time. Along with explicit cost-sharing and scheduling agreements, it also needs support from all linked suppliers.</p><p id="">An efficient milk run in logistics therefore becomes routine, with loaders at each supplier arranging loads for pickup on time, the driver's journey time being planned, and receiving staff at the factory or other facility prepared for delivery at the predetermined time. This provides better operational certainty for loaders and receivers, as well as the opportunity to allocate resources only, when necessary, rather than continuously.</p><p id="">Optimizing both internal and external supply chains can be done in several innovative ways, such as a milk run. Cogoport can provide you services to help you manage your supply chain. Share your logistics requirements with us, and we will get in touch with you to talk about solutions.</p>

Milk Run in logistics

Milk Run Logistics: Efficient Route Planning for Supply Chains

<blockquote id=""><em id="">Logistics expenses might be decreased if freight could be transferred seamlessly between road transport and other modes of freight transit. The government's initiative to create Multi-Modal Logistics Parks (MMLPs) promises to reduce logistics costs and cut down on transportation delays.</em></blockquote><p id="">The Indian government has undertaken several measures over the years to improve the nation's logistics system and promote efficient freight movement. According to estimates, India spends close to twice as much on supply chains and logistics as industrialised nations like the US, Japan, South Korea, and Singapore, or around 14% of its GDP.</p><p id="">Multi-Modal Logistics Parks (MMLPs) are to be developed as part of the National Logistics Policy 2022 for increased efficiency and connectivity. To do this, however, several obstacles must be overcome, including securing a sizeable amount of funding, adjacent land for building, and enticing policies to encourage developers. Therefore, a multifaceted strategy would be necessary to provide an enabling environment and lay a solid foundation for MMLPs.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=MMLP-blog" target="_blank" id=""><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f221ea0a3531379525477_Blog-Creative-1.png" loading="lazy" width="auto" height="auto" alt="638f221ea0a3531379525477_Blog-Creative-1.png" style="width: auto; height: auto;"></div></a></figure><p id="">A stable policy environment, clear governance structures, and a secure investment and financing framework are some of the essential elements needed to lay a strong basis for a logistics network supported by MMLPs. To further guarantee the success of MMLPs, well defined operational models concentrating on interactions among governmental bodies, the private sector, and industries would be required.</p><h3 id=""><strong id="">What Are Multi-modal Logistics Parks?</strong></h3><p id="">MMLPs are logistical facilities created with assistance from state and central government organisations, and active private sector participation. They are planned to have the infrastructure required to accommodate liquid cargo, grain silos, bulk cargo, containerized cargo, bulk cargo, and other logistics modes based on regional economic demands, and to promote efficient logistical operations.</p><p id="">The Ministry of Road Transport and Highways' (MoRTH) Logistics Efficiency Enhancement Programme (LEEP) launched the MMLP in 2017, and it has since grown to be the country's most significant transformational multimodal initiative. As an integrated freight handling facility, MMLPs are made to perform a variety of value-added activities to streamline and improve the efficiency of the entire supply chain. MMLPs would operate according to a hub-and-spoke system, acting as the central warehouse for nearby regions' freight activities.</p><p id="">Incentives for sustainability and scale should be related to MMLPs to draw capital and lower the cost of logistics for the economy. For the industry to lower its cost-to-GDP ratio and introduce speed and cost reductions, the development of warehousing and material handling based on international standards is essential. The future of scalable, contemporary, automated, and effective warehousing in India may be MMLPs, which might improve India's export competitiveness, speed up trade, and decrease regional inequality.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=MMLP-blog" target="_blank" id=""><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f224556fe413902d3d886_Blog-Creative-2.png" loading="lazy" width="auto" height="auto" alt="638f224556fe413902d3d886_Blog-Creative-2.png" style="width: auto; height: auto;"></div></a></figure><h3 id=""><strong id="">Sustainability and Multi-modal Logistics Parks</strong></h3><p id="">Efforts to decarbonize the logistics industry would lower carbon emissions and assist India in meeting its obligations under the Nationally Determined Contributions (NDCs). The decarbonization of the transportation sector in India has received more attention because it accounts for over 14% of the country's carbon emissions.</p><p id="">The sustained growth of the world economy requires the support of a successful freight transportation system, which is becoming more and more important because of growing global economic integration. Multimodal transportation, which utilises two or more modes of transportation, has the potential to significantly increase transportation efficiency while lowering transportation costs for the entire process integration organisation. </p><p id="">According to data, multimodal transportation can increase transportation efficiency by 30%, decrease cargo damage by 10%, lower transportation costs by 20%, lessen traffic on the roads by more than 50%, and increase energy conservation and emissions reduction by more than one third.</p><h3 id=""><strong id="">Multi-modal Strategy: Building Resilience</strong></h3><p id="">Businesses can improve the sustainability and resilience of their supply chains by implementing the proper multimodal approach. For businesses that rely mostly on trucks, for instance, roadwork and regular traffic congestion might be a challenge for deliveries that must be made on time. </p><p id="">Even for non-bulk freight and shorter distances, switching to rail or inland waterways for some of the distribution demand may prove to be the best option. Combining rail and air freight could be another way to cut expenses while maintaining day-definite service. Another option is to mix air and ocean travel.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=MMLP-blog" target="_blank" id=""><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f226681a8e6b413a2e2fa_Blog-Creative-3.png" loading="lazy" id="" width="auto" height="auto" alt="638f226681a8e6b413a2e2fa_Blog-Creative-3.png"></div></a></figure><h3 id=""><strong id="">Benefits of Multi-modal Transport</strong></h3><p id="">a) Reduces time lost at transhipment sites: Multimodal transport, which is planned and coordinated as a single operation, reduces time lost at transhipment points as well as the danger of cargo loss, theft, and damage. At transhipment sites, the multimodal transport operator arranges interchange and onward carriage efficiently while keeping his own communication channels.</p><p id="">b) Offers faster goods transit: Multimodal transport lessens the drawbacks of being far from markets and locking up capital by enabling faster goods transit. Due to the growth of multimodal transportation, the distance between the origin or source of materials and the customer is expanding in this period of globalisation.</p><p id="">c) Reduces paperwork and formality burden: The amount of paperwork and other formalities associated with each link in the transport chain are kept to a minimum.</p><p id=""> d) Single window operation: To transport products, the consignor must deal only with the multimodal transport operator. This includes resolving claims for lost, damaged, or late deliveries at their destination.</p><p id="">e) Lowers export costs: The inherent benefits of a multimodal transportation system will contribute to lowering export costs and enhancing their ability to compete on the global market.</p><p id="">To spur infrastructure development, the Indian government plans to finish building 35 Multi-modal Logistics Parks over the coming years. </p>

India Needs Multi-modal Logistics Parks

Multi-Modal Logistics in India: Advantages & Implementation

<blockquote id=""><em id="">Factoring is a scalable finance that enables businesses to commit to larger orders because they know they will have the funds on hand to fulfil them while also covering other operating costs.</em> </blockquote><p id="">Export factoring, often referred to as invoice financing or account receivable financing, is a business financing strategy in which a financial intermediary buys a company's receivables and provides cash advances to their operations. There are a few reasons why this sort of funding is different from a conventional bank loan.</p><p id="">First, it is not reflected as debt on a company's balance sheet, unlike bank loans. Additionally, since export factoring frequently does not demand collateral, small and medium-sized enterprises can more easily qualify for this type of financing. Furthermore, rather than relying on the borrower's own financials, export factoring capital is determined by the creditworthiness of a company's clients.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=factoring-blog" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f221ea0a3531379525477_Blog-Creative-1.png" loading="lazy" alt="638f221ea0a3531379525477_Blog-Creative-1.png" style="width: auto; height: auto;"></div></a></figure><p id="">Receivables-based lending offers special advantages. In essence, the money you receive via export factoring represents the money your customer owes you. However, a financial intermediary quickens cash flow to your firm rather than waiting for your customer to pay you, which in the modern business environment might take up to four months.</p><p id="">In this way, a company is free from the burden of worrying about how to "pay back" the person who gave it the money. Receivables are transferred from the business to the factoring firm in more of an exchange than a loss for either party. When the invoice is due, the buyer is then responsible for paying the factor directly. The factor manages the collection procedure and bookkeeping as an extension of the borrower's back office.</p><h3 id=""><strong id="">How Export Factoring Helps Your Business</strong></h3><p id="">Factoring helps business secure short-term financing and expand the scale and scope of business. </p><p id="">1) Accelerate payment for your exports: Instead of waiting weeks or months for your international buyer to pay the full amount of the invoice owed to you, factoring your foreign receivables allows you to obtain payment from the factor (financial institution) immediately.</p><p id="">2) Lower the risk of buyer non-payment: The money due to you by your overseas buyer transfers to the factor (financial institution) once a factor has purchased your international receivables. To eliminate the danger of your company not being paid, the factor (financial institution) assumes the risk of the overseas buyer's non-payment on its books.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=factoring-blog" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f224556fe413902d3d886_Blog-Creative-2.png" loading="lazy" alt="638f224556fe413902d3d886_Blog-Creative-2.png" style="width: auto; height: auto;"></div></a></figure><h3 id=""><strong id="">How Export Factoring Works</strong></h3><p id="">We can breakdown the export factoring process in four steps mentioned below:</p><p id="">Step 1: The exporter enters into an agreement with the factor – a financial institution.</p><p id="">Step 2: The exporter sends goods to overseas buyer on mutually agreed terms – $50,000 worth of goods – and allow 60 days credit to pay the invoice. </p><p id="">Step 3: The exporter gives foreign receivables invoice to the factor – a financial institution – and the factor makes payment for a percentage of the amount. As per our example, the factor may pay $40,000 immediately for $50,000 worth of receivables. </p><p id="">Step 4: The exporter takes the money, clears some of his payments and reinvests some of it to work on next export order. The factor shall collect the payment from buyer.</p><h3 id=""><strong id="">Types of Export Factoring</strong></h3><p id="">There are two types of factoring – recourse and non-recourse. Let us get an overview for each type of factoring in the following paragraphs. </p><p id="">1) Recourse factoring: The factor in recourse factoring does not assume the risk of bad loans. Even if the buyer refuses to pay, factor will recover their money from exporter. How many days after the payment due date you must return the advance will be outlined in the factoring agreement. The exporter must still pay the fee and interest regardless of whether they refund the advance (discount charge).</p><p id="">2) Non-recourse factoring: In a non-recourse factoring arrangement, the financial intermediary who purchases the receivables of a business also offers credit insurance on those receivables. This credit-insured strategy protects an exporter if their buyer misses a payment deadline.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=web&amp;utm_medium=incoterm&amp;utm_campaign=factoring-blog" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f226681a8e6b413a2e2fa_Blog-Creative-3.png" loading="lazy" alt="638f226681a8e6b413a2e2fa_Blog-Creative-3.png"></div></a></figure><h3 id=""><strong id="">Conclusion</strong></h3><p id="">A business can give its clients extended payment terms by utilising export factoring. A business has access to the additional cash flow from factoring, which is the capital it requires to run its operations. If a business wants to grow its sales, it must provide extended payment arrangements to customers. </p><p id="">Export factoring makes it easier for businesses to thrive in a trading environment where delayed payment is the new norm in which most of the foreign trade is handled on open account payment terms. <a href="https://www.cogoport.com/en-IN/product/finance/export-factoring" target="_blank">Click here</a> to know more about  export factoring services from Cogoport.</p>

Export Factoring

Export Factoring: How It Works, Benefits & Process for Exporters

<blockquote id=""><em id="">In a significant development for the shipping industry, known for its slow pace of digital adoption, 175-year-old Hapag – Lloyd may be spearheading a journey to modernity by resolving to smarten up all its containers in the future. Offering the features of real-time track and trace, Drewry has forecast that the global smart fleet will rise by 25 per cent or 8.7 million units by 2026. Let us read on to know more.</em></blockquote><p id="">In a sign of forthcoming times, the global telematics equipped container fleet is expected to rise eight-fold in the next five years. Amid wider adoption, Drewry’s latest Container Census &amp; Leasing Annual Review and Forecast for 2022/2023 highlighted this matter recently.&nbsp;<br></p><p id="">In the wake of the Coronavirus pandemic’s unexpected crippling disruptions, the importance of smart containers has risen exponentially. A container is termed smart when powered with a telematics device which offers real-time tracking and monitoring.<br></p><p id="">Smart containers enable cargo owners to know the location and status of their consignment for gaining better control of the supply chains.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=PositioningAd_Blog&amp;utm_medium=PositioningAd_Blog&amp;utm_campaign=Positioning" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f221ea0a3531379525477_Blog-Creative-1.png" loading="lazy" alt="638f221ea0a3531379525477_Blog-Creative-1.png" style="width: 900px; height: 131px;"></div></a></figure><h3 id=""><strong id="">Factors Driving Smart Fleet Growth</strong><br></h3><p id="">Continuing supply chain disruption and port congestion are some key reasons giving thrust for the need of improved cargo flows visibility and better container fleet management.<br></p><p id="">Meanwhile, many carriers are flooded with cash to invest and tap the opportunities arising from improved effectiveness of their operations through the deployment of smart containers.<br></p><p id="">According to Drewry’s estimates, 3.6 per cent of the global container equipment fleet had already been powered with smart technology by the end of 2021, including an adoption rate of 30 per cent through the current year.</p><h3 id=""><strong id="">Reefers and Intermodal Containers Lead</strong><br></h3><p id="">When it comes to the penetration of smart equipment, reefers and intermodal containers lead the pack whereas dry box containers are playing catch up. Higher penetration in reefers is understandable, considering the perishable nature and short life cycle of merchandise generally packed into them.<br></p><p id="">Drewry estimates that as much as a third of the maritime reefer container fleet has been smart enabled while over 40 per cent of intermodal containers have also achieved the same.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=PositioningAd_Blog&amp;utm_medium=PositioningAd_Blog&amp;utm_campaign=Positioning" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f224556fe413902d3d886_Blog-Creative-2.png" loading="lazy" alt="638f224556fe413902d3d886_Blog-Creative-2.png" style="width: 900px; height: 131px;"></div></a></figure><h3 id=""><strong id="">Hapag-Lloyd to Digitize All Boxes</strong><br></h3><p id="">In a move which can prompt peers to take up digitization, Hapag-Lloyd, a 175-year-old German shipping line, recently announced that it will digitize all its dry box fleet with smart devices.<br></p><p id="">The German carrier introduced real-time monitoring on its reefer container fleet back in 2019 with Internet of Things (IoT) product Hapag – Lloyd LIVE. Now, Hapag – Lloyd will fit newly developed smart devices on all its standard containers numbering up to 3 million TEU fleet.<br></p><p id="">Starting 2023, Hapag – Lloyd LIVE will be available on the German carrier’s standard containers, which will offer real-time track and trace data with full visibility of any container movement of the company on a global scale. These features offer the capabilities to detect delays early, alert customers automatically and initiate early counter actions to avoid unwanted outcomes.<br></p><p id="">Hapag – Lloyd’s chief operating officer Maximilian Rothkopf noted that the smart initiative by the carrier will be a&nbsp;game changer&nbsp;for the entire container shipping industry. As each container will fire data on a real time basis, the supply chain is expected to become efficient and transparent.<br></p><p id="">The smart devices will transmit location data based on the 24-satellite Global Positioning System (GPS), including measuring temperature and reporting any unexpected sudden shocks to a given container.<br></p><p id="">In the future, Hapag – Lloyd aims to add more features and sensors incorporating Bluetooth technology, including working with its customers to add features taking their feedback into account.<br></p><p id="">Olaf Habert, Director, Container Applications, Hapag – Lloyd said the shipping line has a vision to build the world’s smartest container fleet, offering valuable information to customers at the frequency they need.<br></p><p id="">He added that the most advanced companies for global scale IoT applications are aiding Hapag – Lloyd to power its entire fleet with smart technologies.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=PositioningAd_Blog&amp;utm_medium=PositioningAd_Blog&amp;utm_campaign=Positioning" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f226681a8e6b413a2e2fa_Blog-Creative-3.png" loading="lazy" alt="638f226681a8e6b413a2e2fa_Blog-Creative-3.png"></div></a></figure><h3 id=""><strong id="">Smart Fleets to Eventually Pay</strong><br></h3><p id="">Earlier moves to incorporate smart solutions into fleet management were not successful as customers viewed the additional fees and lack of integration into carrier IoT service offerings as unnecessary costs.<br></p><p id="">As times change, digitizing container fleets will also empower carriers to offer enhanced cargo visibility to customers and attract them into longer contracts, which stands to help carriers ward off rising competition from alternative tracking solutions like removable devices and predictive analytical tools.<br></p><p id="">However, to achieve the multifarious benefits of smart fleets, shipping lines need to invest further to incorporate smart containers into their IoT systems and join forces with industry stakeholders for data sharing and other crucial capabilities.&nbsp;</p>

Smart Shipping Fleet to Rise by 25% in 2026

Smart Shipping Fleet: Digital Innovations Transforming Maritime Logistics

<blockquote id=""><em id="">According to the latest available metrics, as many as 4.6 billion metric tonnes of goods are handled in India every year. Considering the scale and magnitude of these freight operations, let us look at the state of India&rsquo;s ports, roadways, railways, and airways as the South Asian giant is ready to commemorate its 75<sup id="">th</sup> year of independence.</em></blockquote>
<p id="">Following 75 years of independence, India has emerged as the 47<sup id="">th</sup> most logistics efficient economy in the world, according to the 2018 Logistics Performance Index (<a id="" href="https://lpi.worldbank.org/about" target="_blank" rel="noopener">LPI</a>).&nbsp;&nbsp;</p>
<p id="">Created by the World Bank, LPI is an interactive benchmarking tool aimed at helping countries zero in on the opportunities and challenges they confront in trade logistics with the goal of helping these countries better their performance.&nbsp;</p>
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<p id="">Juxtaposing 160 countries, the LPI is inferred from a global survey of ground operators including freight forwarders and express carriers. Combining their in-depth knowledge and qualitative assessments, the survey respondents offered feedback on the most logistics-friendly countries where they operated, which the World Bank further supplemented with quantitative data on key performance components.</p>
<p id="">Thus, the LPI is a qualitative and quantitative assessment of a given country&rsquo;s logistics friendliness gauged upon the following six dimensions:</p>
<ul id="">
<li id="">Efficiency of customs and border management clearance (Customs)&nbsp;</li>
<li id="">Quality of trade and transport infrastructure (Infrastructure)&nbsp;</li>
<li id="">Ease of arranging competitively priced shipments (Ease of arranging shipments)&nbsp;</li>
<li id="">Competence and quality of logistics services &ndash; forwarding, trucking &amp; customs brokerage (Quality of logistics services)&nbsp;</li>
<li id="">Ability to track and trace consignments (Tracking &amp; Tracing)&nbsp;</li>
<li id="">Frequency with which shipments reach consignees within scheduled or expected delivery times (Timeliness)</li>
</ul>
<p id="">According to a 2021 Niti Aayog report, the logistics sector represents 5 per cent of India&rsquo;s GDP, employing around 22 million people, including handling 4.6 billion metric tonnes of goods a year.&nbsp;&nbsp;</p>
<p id="">Going beyond these appraisals of India&rsquo;s logistics competencies, let us glean some more insights on the state of the South Asian behemoth&rsquo;s ports, railways, airways and roadways, the lifeblood of trade and commerce.</p>
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<h3 id=""><strong id="">Ports</strong></h3>
<p id="">India&rsquo;s Department of Ports has its origins in the Department of War Transport, which was originally formed before independence in July 1942.&nbsp;&nbsp;</p>
<p id="">Currently, ports, shipping, and waterways sectors, which also encompass shipbuilding and ship repair, major ports, national waterways, and inland water transport, fall under the purview of the Ministry of Ports, Shipping and Waterways.  &nbsp;</p>
<p id="">The ports wing of the ministry is accountable for the development of <a id="" href="https://shipmin.gov.in/division/ports-wing" target="_blank" rel="noopener">11 major port trusts</a>, aimed at providing the necessary and sufficient cargo handling capacity for India&rsquo;s export and import trade. Ports in India are responsible for 90 per cent of EXIM cargo in terms of volume and 70 per cent by value. India is also serviced by 200 non-major ports (minor ports).</p>
<p id="">Major ports fall under the administrative control of the Ministry of Shipping while the minor ports are under the authority of respective state governments through their maritime boards.&nbsp;&nbsp;</p>
<p id="">All the major ports are functional while only 65 of the minor ports handle cargo, leaving the balance 135 of them as &lsquo;Port Limits&rsquo; where no cargo is handled but used by fishing vessels and small ferries.&nbsp;&nbsp;</p>
<p id="">Major ports trusts include Chennai Port Trust, Cochin Port Trust, Deendayal Port Trust, Jawaharlal Nehru Port Trust, Paradip Port Trust, Kolkata Port Trust, Mormugao Port Trust, Mumbai Port Trust, New Mangalore Port Trust, Visakhapatnam Port Trust, and V. O. Chidambarnar Port Trust. &nbsp;</p>
<p id="">&zwj;</p>
<figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center">
<div id=""><img style="width: auto; height: auto;" src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/62f4915385742f1c959d99fd_Major%20Ports%20India.png" alt="62f4915385742f1c959d99fd_Major%20Ports%20India.png" width="auto" height="auto" loading="lazy"></div>
<figcaption id="">Major Ports in India (From West to East)</figcaption>
</figure>
<p id="">&zwj;</p>
<h3 id=""><strong id="">Railways</strong></h3>
<p id="">What started as a small idea for a British chief engineer, George Clark, at Bhandup locality of modern-day Mumbai in the erstwhile Bombay Government under the British has now transformed into the colossus of Indian Railways, the lifeline of the country&rsquo;s 1.3 billion population.&nbsp;&nbsp;</p>
<p id="">During his visit to Bhandup in 1843, Clark thought of a railway link between Bombay, Thane, Kalyan and Thal and Bhore Ghats inclines.&nbsp;The idea later fructified into India&rsquo;s first train with 14 carriages and 400 guests, which departed at 3:30 pm on April 16, 1853 from Bori Bunder to Thane.&nbsp;</p>
<p id="">Later, the first passenger train rolled out of Howrah for Hooghly on August 15, 1854 for 24 miles, marking the establishment of railways in the Eastern part of the Indian subcontinent. A similar development occurred in the northern and southern parts of India by 1859. By 1880, Indian Railways had a route mileage of about 14,400 km, which went on to become a multi-gauge and multi-traction system, encompassing an 86,526 km long network of broad gauge, 18,529 km meter gauge and 3,651 km narrow gauge, amounting to 1,08,706 km in total by 2021.&nbsp;</p>
<p id="">Out of around 11,000 daily trains powered by 7,566 locomotives, 7,000 are passenger trains with 37,840 coaching vehicles. Besides passenger services, Indian Railways is a big freight player, plying 220,000 wagons which make use of 2,300 goods sheds, among others.&nbsp;&nbsp;</p>
<p id="">The public sector behemoth has implemented a Freight Operations Information System (FIOS) to computerize freight operations and has also incorporated a Rake Management System (RMS).&nbsp;In 2021 &ndash; 22, Indian Railways logged the <a id="" href="https://www.financialexpress.com/business/railways-indian-railways-records-highest-annual-incremental-freight-loading-details-2448587/" target="_blank" rel="noopener">highest ever incremental</a> freight loading at 1,279 million metric tonnes, recording a growth of 176.2 million metric tonnes from the previous fiscal year.</p>
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<h3 id=""><strong id="">Airways</strong></h3>
<p id="">India&rsquo;s commercial aviation started off with a single engine De Havilland Puss Moth Tata Airlines plane <a id="" href="https://airlines.iata.org/blog/2011/08/history-the-father-of-indian-aviation" target="_blank" rel="noopener">carrying mail</a> from Karachi (now in Pakistan) to Madras (Chennai) in 1932, piloted by J. R. D. Tata, former Tata Group Chief, and India&rsquo;s first pilot&rsquo;s license holder.&nbsp;&nbsp;</p>
<p id="">In time, Tata Airlines morphed into Air India, which was later nationalized and again returned to the Tatas fold after several decades in January 2022.&nbsp;&nbsp;</p>
<p id="">With these humble beginnings, the Indian aviation industry has now become a giant, valued at a market size of $16 billion to emerge as the third largest aviation market in the world with projections to overtake the United Kingdom to become the third largest aviation market overall in a couple of years. Currently, India is the 10<sup id="">th</sup> largest civil aviation market in the world.&nbsp;&nbsp;</p>
<p id="">According to the International Air Transport Association (IATA), India is expected to become the third largest air passenger market by 2030.&nbsp;&nbsp;</p>
<p id="">At the end of 2021 &ndash; 22, India&rsquo;s air passenger traffic stood at 188.89 million while air traffic movements were 17.5 lakh. Data from the Department for Promotion of Industry and Internal Trade (DPIIT) indicated that FDI inflows into the air transport sector, which also includes air freight, touched $3.54 billion during April, 2000 to March, 2022. By 2024, India aims to inaugurate 100 more airports.&nbsp;&nbsp;</p>
<p id="">Currently, there are around 712 aircraft and 129 airports in the country. Compared to the quantum of freight conveyed through the ports, railways and roadways, air freight is minuscule, estimated at 3.14 million MT for FY22.&nbsp;&nbsp;</p>
<h3 id=""><strong id="">Roadways</strong></h3>
<p id="">According to India Brand Equity Foundation (IBEF), a Trust set up by the Department of Commerce, Ministry of Commerce and Industry to disseminate knowledge on Indian products and services, India houses the second largest road network in the world, running into 5.89 million km.&nbsp;&nbsp;</p>
<p id="">As a country with a low coast to landmass ratio, bulk of India&rsquo;s freight is ferried through the roads, which also holds good for passenger traffic.&nbsp;</p>
<p id="">India&rsquo;s road network transports 64.5 percent of all goods and 90 percent of the total passenger traffic. Niti Aayog noted that 50 percent of India&rsquo;s freight transport occurs along the Golden Quadrilateral Road network and the two diagonal highway networks linking Delhi, Mumbai, Chennai, and Kolkata.&nbsp;&nbsp;</p>
<p id="">Considering the strategic role of roadways, highway construction in India rose at 17 percent CAGR between FY16 and FY21. Even during the Covid lockdown in FY21, India built 13,298 km long highways. In October 2020, the Central government laid the foundation for nine national highway projects extending up to 262 km, valued at Rs 27 million in Tripura, northeast India.&nbsp;&nbsp;</p>
<p id="">Further, the 2022 &ndash; 23 Union Budget earmarked Rs 220,000 crore to the Ministry of Road Transport and Highways.&nbsp;Under the National Infrastructure Pipeline for fiscals stretching from 2019 &ndash; 25, India has dedicated Rs 111 billion, while this sector is expected to receive 18 per cent of capital expenditure during this timeline.&nbsp;&nbsp;</p>

India’s Logistics After 75 years of Independence

India’s Logistics Sector: Progress After 75 Years of Independence

<blockquote id=""><em id="">Inland waterways in India have the potential to reduce logistics costs and delivery time for goods. The volume of goods shipped through inland waterways is steadily increasing but remains below capacity. There are multiple challenges for the sector, and if the government really wants the sector to blossom, it needs to make the inland waterways ecosystem more attractive for the private sector.</em></blockquote><p id="">India is geographically a vast and diverse country, ranked seventh in the world by area. Many regions of the country are still not well connected by major rail and road networks. Nonetheless, regions in the northeast of the country have several rivers, and these can be used to navigate freight vessels. Transporting goods through inland waterways is cheaper compared to other options. Since India already spends 8.35% of its GDP on logistics according to the&nbsp;National Council of Applied Economic Research (NCAER),&nbsp;any further savings in cost will benefit all the stakeholders in the value chain.</p><p id="">If we compare the cost of freight for rail, road and inland waterways, the cost of freight per km for surface transport is lowest in inland waterways transport. This was validated in a study conducted by Rail India Technical and Economic Service (RITES), an engineering consultancy corporation, specializing in the field of transport infrastructure.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=PositioningAd_Blog&amp;utm_medium=PositioningAd_Blog&amp;utm_campaign=Positioning" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f221ea0a3531379525477_Blog-Creative-1.png" loading="lazy" alt="638f221ea0a3531379525477_Blog-Creative-1.png" style="width: 900px; height: 131px;"></div></a></figure><h3 id=""><strong id="">India’s Inland Waterways: Essential Data</strong></h3><p id="">The total <a href="https://shipmin.gov.in/sites/default/files/Approved%20IWT%20Publication.pdf" target="_blank" id="">cargo movement</a> through inland waterways, for the financial year 2020-21, in India stood at 881.40 lakh metric tons. To put things into perspective, major Indian ports reported 7,193.80 lakh metric tons of traffic movement in 2021-22. When we compare inland waterways and ocean freight, the former is 12.25 percent (approximately 1/8th) of the latter.</p><p id="">As per data provided by various state governments, the total length of rivers, canals and lakes in India is 34,195.30 km. Out of this, only 43.43 percent, i.e., 14,850.15 km is navigable.</p><figure id="" class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><div id=""><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/62ed1a2705f0c87cebaffe18_Screenshot%202022-08-05%20at%2011.17.53%20AM.png" loading="lazy" width="auto" height="auto" alt="62ed1a2705f0c87cebaffe18_Screenshot%202022-08-05%20at%2011.17.53%20AM.png" style="width: auto; height: auto;"></div><figcaption id="">Length of Navigable Waterways in India</figcaption></figure><h3 id="">‍<strong id="">India’s Inland Waterways: Major Challenges</strong></h3><p id="">The inland waterways in India have huge economic potential. Governments, at both the central and state levels, have been trying to integrate the waterways to the supply chain ecosystem. Due to various policy measures, the quantity of goods moved through the inland waterways is increasing every year.</p><p id="">Factors like shallow water, narrow width during dry weather, siltation and bank erosion, inadequate vertical and horizontal clearances in a large number of overhead structures make navigation throughout the year a daunting task.</p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=PositioningAd_Blog&amp;utm_medium=PositioningAd_Blog&amp;utm_campaign=Positioning" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f224556fe413902d3d886_Blog-Creative-2.png" loading="lazy" alt="638f224556fe413902d3d886_Blog-Creative-2.png" style="width: 900px; height: 131px;"></div></a></figure><p id="">The challenges faced by the inland waterways sector are as follows:</p><ul id=""><li id="">‍<strong id="">Availability of year-round depth for vessel navigation:</strong> The water levels in Indian rivers do not remain constant throughout the year. Almost all the rivers in India get flooded during the monsoon. This leads to high levels of sedimentation and requires dredging. While, during summers, the inland waterways dry up.<br>‍</li><li id="">‍<strong id="">Absence of SEZs and storage facilities along the waterways:</strong> At present, the production and warehouse infrastructure in India is configured to takethe advantages of rail, road, and seaport infrastructure. To make the inland waterways attractive to the industry, the government needs to become more flexible with project clearances near the riverbeds. A right balance between economic benefits and ecological impact must be sought.<br>‍</li><li id="">‍<strong id="">Standardization of inland waterway governance framework:</strong> Major National Waterway (NW) routes may cross multiple states. Let us take the example of NW 1, Allahabad-Haldia stretch (1620 kms) of Ganga-Bhagirathi-Hooghly River system, which is major waterways in India. It crosses through four states, and not all these states have identical inland waterways governance framework. Multiplicity of regulations and additional paperwork make it less attractive for the big industries to move their goods through inland waterways.<br>‍</li><li id=""><strong id="">Possible hindrances created by the trucking industry</strong>: Though this point may sound academic, it may not be too far from the reality. Trucks move a large proportion of goods within the country; their only real competition is the railways. In case of almost all the goods, the last mile delivery is through trucks of all shapes and sizes.<br>‍<strong id="">‍</strong></li><li id=""><strong id="">Better hauling capacity of locomotives and dedicated freight corridors: </strong>Over the years Indian Railways (IR) has been ramping up the capacity of locomotives that haul goods trains. By commissioning dedicated railway lines for goods transport, the railway freight sector has received considerable amount of investment.&nbsp;&nbsp;<br>‍</li><li id=""><strong id="">Limited number of vessels and poor maintenance:</strong> Due to lack of economic viability, the private sector has always given a lukewarm response to government initiatives. This leads to less-than-ideal maintenance of current facilities and negligible capacity augmentation.</li></ul><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><a href="https://cogoport.com/signup/?utm_source=PositioningAd_Blog&amp;utm_medium=PositioningAd_Blog&amp;utm_campaign=Positioning" target="_blank"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/638f226681a8e6b413a2e2fa_Blog-Creative-3.png" loading="lazy" alt="638f226681a8e6b413a2e2fa_Blog-Creative-3.png"></div></a></figure><h3 id="">‍<strong id="">India- Bangladesh Trade Through Inland Waterways</strong></h3><p id="">In a recently published report of the Ministry of Ports, Shipping &amp; Waterways Research Wing, movement of cargo along India Bangladesh route of National Waterways (NW) I by Indian registered vessels have shown a growth of 3.98% in year 2020-21 over that in 2019-20. The cargo moved over this route has increased to 35.97 lakh metric tons in 2020-21 against 34.60 lakh metric tons in 2019-20.</p><p id="">In July, Maersk completed the first India-Bangladesh cross-border logistics of containerized cargo using the inland waterways of the Indo-Bangladesh Protocol Route for Coca-Cola. It transported 50 containers (TEUs or Twenty Feet Equivalent Units) from Kolkata in India to a river port near Dhaka in Bangladesh on a barge on the National Waterways 1.</p>

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