How India’s RCEP Decision Will Affect?

<p>Save time, save money. We at Cogoport take this old catchphrase very seriously, as you might have figured out from our efforts to have all your online requests answered instantly or, at least, in the shortest possible time.</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a></p><p>Our<a href="https://www.cogoport.com/rate-discovery" rel="noopener noreferrer" target="_blank"> Discover Rates</a> tool is a prime example of a time-saver. It gets you<a href="https://www.cogoport.com/rate-discovery" rel="noopener noreferrer" target="_blank"> multiple freight rates and quotes from trusted freight forwarders within seconds</a>, helping you make an informed decision about the best option for your shipment. Within this tool, we have included a special money-saving feature as well. The “Start Special Rate Request” option is designed to help you negotiate and customise the best freight rates for your shipment, preferably with the shipping line of your choice.</p><p>Just as you would negotiate for better rates and prices with a traditional freight forwarder or service provider, Cogoport’s Special Rate Request feature helps you do the same on an online platform.</p><h3><strong>What You Get with Special Rate Request</strong></h3><ol><li><strong>Customised rates:</strong> Are the freight quotes you requested on Discover Rates too high? No problem. Click on Start Special Rate Request and punch in your requirements. These will be forwarded to 600 service providers and you will receive a personalised quote within six business hours. It’s that easy.</li><li><strong>Shipping line of your choice:</strong> If you like doing business with a particular shipping line and a general request on Discover Tools does not return a quote from them, you can use the Special Rate Request feature to get that as well.</li><li><strong>All the free days you want:</strong> You can also negotiate the number of free detention days you require. Detention is the per-day charge you pay for use of a container outside a port after the allotted free detention period.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li></ol><h2><strong>Special Rate Request in 5 easy steps</strong></h2><h3><strong>Step 1: </strong>‍</h3><p>Click on <strong>Discover Rates</strong> on the navigation bar to your left.</p><p><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f6cc07a6d18c11432a54f87_Discover%20Rates.png" alt="5f6cc07a6d18c11432a54f87_Discover%20Rates.png"></p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Step 2:</strong></h3><p>In the search field on your right, pick your shipping option and enter the origin port, destination port, container size/type/commodity/weight, container count and incoterm. Our intuitive drop-down lists make this process super easy. Now, hit search.</p><p><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f6cc1756dbfe5739df2ec92_Search%20rate.png" alt="5f6cc1756dbfe5739df2ec92_Search%20rate.png"></p><h3><strong>Step 3: </strong></h3><p><strong>‍</strong>Explore instant freight rates and quotes from various shipping lines, along with transit times, stops if any, and free detention days. If you need something more specific to your business, such as extra destination free days, a specific shipping line, or a filed rate (a contracted rate applicable for a fixed period of time), then click on Start Special Rate Request on the bottom right of your page.</p><p><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f6cc0ceb91b70d290f993f8_Rate%20Discovery.png" alt="5f6cc0ceb91b70d290f993f8_Rate%20Discovery.png"></p><h3><strong>Step 4:</strong></h3><p>The Create Enquiry box pops up. Fill in the required fields, including your preferred freight rate, shipping line and free detention days at destination. Click on Submit Your Requirements and you’re set.&nbsp;</p><p><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5f6cc0ecc37b887203663b76_request.png" alt="5f6cc0ecc37b887203663b76_request.png"></p><h3><strong>Step 5: </strong></h3><p><strong>‍</strong>You’llreceive a personalised quote within six business hours.&nbsp;</p><p>Simple, isn’t it? Our Special Rate Request feature is not just about personalised quotes. It is about empowering importers and exporters and giving them greater control and say over how they ship their goods and what they pay for it. And, as we mentioned earlier, it’s about helping them save both time and money.</p>

Negotiate Best Rates for Cargo: Cogoport

<p>If you are an exporter or importer, there are two words guaranteed to fill you with dread – demurrage and detention. These charges associated with the late return of containers to shipping lines can leave you with a huge bill you neither anticipated nor budgeted for. Demurrage and detention are also a lot more common than you might think and there is a high probability you might run into them. Hence, it is important to be aware of these charges and plan your shipment to avoid them as much as possible. As a first step, you may read this guide, which will tell you:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><ul><li>What is demurrage and detention?</li><li>What are their causes and impact?</li><li>How can you calculate demurrage/detention?</li><li>How can you avoid demurrage/detention?</li><li>Why are they controversial?</li><li>How are they different from port storage charges?</li></ul><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a></p><h2><strong>What is Demurrage?</strong></h2><p>Demurrage is what you pay for <strong>use of a container within a port or terminal</strong> beyond an allotted free time, which averages 4-5 days. Demurrage is charged per day per TEU (twenty-foot equivalent unit, which is the capacity of a 20-foot container). The fee increases in intervals of a few days. Charges vary across shipping lines and ports. But they can easily average $100 per container per day.</p><p><strong>Demurrage time in export: </strong>The period from when a full container enters a terminal till it is loaded on a ship for export.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p><strong>Demurrage time in import: </strong>The period from when a full container is discharged from the ship till it leaves the terminal.&nbsp;<strong>&nbsp;</strong></p><h2><strong>What is Detention?</strong></h2><p>Detention is what you pay for <strong>use of a container</strong> <strong>outside a port or terminal</strong> beyond the allotted free time. It is also charged per day, per TEU. The free time averages 3-5 days. Detention is sometimes referred to as per diem (Latin for “per day”).</p><p><strong>Note: </strong>Remember, if the container sits on a chassis (trailer), you will usually also be charged a per-day fee for the chassis, which can be higher than the daily detention rate.</p><p><strong>Detention time in export: </strong>The period from when an empty container is picked up from the terminal/container yard/depot for loading till the full container enters the terminal for export.&nbsp;&nbsp;<strong>&nbsp;&nbsp;</strong></p><p><strong>Detention time in import: </strong>The period from when a full container leaves the terminal after import till the time the empty container is returned to the terminal/container yard/depot.&nbsp;<strong>&nbsp;&nbsp;&nbsp;&nbsp;</strong></p><h3><strong>Who Charges it?</strong></h3><p>Containers are owned or leased by shipping lines, hence demurrage and detention are charged by them. There are two reasons why they do so:</p><ul><li>To encourage importers/exporters to ensure a quick turnaround of the containers</li><li>As compensation for use of the containers</li></ul><p>Before the charges kick in, shipping lines are required to provide a reasonable free time to allow:</p><ul><li>Loading of the container and delivery to the ship for export</li><li>Pick-up of the full container after import, its unloading and return of the empty container to the nominated container yard</li></ul><p>The free time typically depends on the trade, equipment/commodity type and, at times, the specific port-pair involved.&nbsp;</p><p>&nbsp;&nbsp;&nbsp;<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>What Causes Demurrage and Detention?</strong>&nbsp;&nbsp;</h3><ul><li>Circumstances beyond your control – bad weather, labour strikes, terminal congestion, shortage of trucks/trailers, the Covid-19 pandemic.&nbsp;&nbsp;</li><li>Customs clearance delays. For example, your containers are held up by customs for inspection and examination.</li><li>Delays due to incorrect or incomplete documentation. Such documents have to be amended, which requires time.</li><li>Late receipt or loss of documents. For example, the exporter is late in sending the documents to the importer.&nbsp;&nbsp;&nbsp;&nbsp;</li><li>Sailing delays. Shipping lines have closing dates for the delivery of export shipments at the terminal. In the event of a delay in vessel departure, your container could be held up at the terminal for longer than the allotted free time.</li><li>Late release of shipment at destination. A common reason for this is shipping lines holding on to cargo because they haven’t received their payment in full.&nbsp;&nbsp;&nbsp;</li><li>Delay because cargo receiver can’t be reached. There have been instances of cargo being abandoned.</li></ul><h3><strong>How does it affect you?</strong></h3><ul><li>Demurrage and detention can prove very expensive. There have been instances where shippers have paid more than 20 times the value of a container in such fees.</li><li>Demurrage and detention are the result of delays, and delays can create trouble all through your supply chain.&nbsp;&nbsp;</li><li>They cause confusion. Charges vary across shipping lines and ports. If you ship across the world, these differences can be difficult to keep track of. For example, import detention charged by two shipping majors for a 20-foot container at ports in India ranges from Rs 2,970 to Rs 4,000 per day for the first seven days and six days, respectively, after the free time. Similarly, there are wide variations in charges across ports – from $196.88 a day per TEU at Los Angeles to $6.46 per day per TEU at Busan, South Korea.&nbsp;</li></ul><h2><strong>How to Calculate Demurrage and Detention</strong></h2><p>Let’s say your 20-foot export container was at the terminal for 15 days before it was shipped. You are allowed five days of free time and the shipping line’s demurrage tariff increases every seven days. Here’s a simple formula to calculate how much you will pay:</p><p>Free time: 5 days</p><p>Time for which demurrage will be charged: 10 days</p><p>Day 6-12 demurrage per day: $50</p><p>Your total demurrage fee for days 6-12: $350</p><p>Day 13-19 demurrage per day: $75</p><p>Your total demurrage fee for days 13-15: $225</p><p><strong>Total demurrage for 10 days: $575&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></p><h2><strong>The Demurrage/Detention Controversy&nbsp;</strong></h2><p>Demurrage and detention is a sensitive topic in international trade. Importers and exporters have long accused shipping lines of unfair practices, leading to institutions such as the International Federation of Freight Forwarders Associations (FIATA and the United States Federal Maritime Commission introducing best practices guides to ensure shippers are not subject to unfair, unreasonable charges. Demurrage and detention are sore points because:</p><ul><li>Fees have increased considerably in the last few years</li><li>This has coincided with a reduction in free time</li><li>The FIATA guide cites reports of shipping lines charging demurrage on containers transported by merchant haulage while waiving the charges for containers moved by carrier haulage during port congestion. (Merchant haulage is when the importer appoints a haulage provider while in carrier haulage, the carrier nominates the haulage provider)</li></ul><p>On this backdrop, some of the recommendations of the FIATA include:</p><ul><li>A cap on demurrage and detention. Instead of charging delay fees for an indefinite period, FIATA suggests that shipping lines fix a maximum limit, which could ideally be the value of the purchase price of a brand new container.</li><li>Extension of the free time period</li><li>Encouraging a shift to more environment-friendly modes of inland transport (barge, rail) by extending detention free time&nbsp;&nbsp;&nbsp;&nbsp;</li><li>A level-playing field for shippers who opt for merchant haulage. Many shippers prefer merchant haulage over carrier because it allows them to directly negotiate rates with the haulage provider as opposed to accepting carrier-quoted prices under carrier haulage.&nbsp;</li></ul><p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a></p><h2><strong>How to avoid Demurrage and Detention</strong></h2><p>With the exception of bad weather, strikes and other unforeseen events, demurrage and detention are largely avoidable. All it takes is a little planning on your part. Some useful tips:</p><ul><li>Dispatch your cargo well in advance. Allow yourself some buffer time.</li><li>Plan loading/unloading time with an eye on possible delays.&nbsp;</li><li>Make sure your documents are in order.</li><li>Perform customs pre-clearance and be aware of cut-offs. For example, shipments to the US require a cargo declaration on the Automated Manifest System (AMS), which must be completed 24 hours before departure from the port of origin.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li><li>Inform your trading partners – inland transport service providers, customs agents, freight forwarders, banks and so on – about shipping schedules in advance.</li><li>Be informed yourself. Read your carrier contract carefully, understand the regulations and customs procedures at your port of destination.</li><li>Track your cargo in-transit. With Cogoport, you can track your shipment, check its status and get regular updates till delivery on the<a href="https://www.cogoport.com/" rel="noopener noreferrer" target="_blank"> Cogoport Dashboard</a>.&nbsp;&nbsp;</li><li>Have a Plan B ready. If you’re dealing with a particularly congested port, this could mean finding an alternate port, having a back-up trucker if time schedules get tight, or making arrangements for off-dock storage of your cargo that would work out cheaper than demurrage and detention.&nbsp;&nbsp;</li></ul><h3><strong>An interesting perspective</strong></h3><p>When you agree to a freight rate with a certain free time for demurrage and detention, payment for that time is actually included in the freight rate. Many shipments do not incur demurrage and detention as everything works out well. Yet, if you have 10 days combined of free time and use only five days in total, the shipping line does not refund you for the five unused days that you have already paid for. For some importers and exporters, it could therefore be interesting to get a discount up-front on the base freight rate for the days not used. Or, they could reach an agreement with the shipping line that demurrage and detention will apply only when the total number of used demurrage and detention free days for a period of time – say, 60 calendar days – exceeds the total free time purchased in the base freight rate. This means that if you save five days on one shipment and have an overrun of six days on the next shipment, you are liable for only one day of demurrage and/or detention, as the case may be.</p><h3><strong>Don’t forget to negotiate</strong></h3><p>Did you know you can negotiate for extended free time with shipping lines? So, the next time you make a booking with a shipping line, don’t just accept their freight quote. Work out a better deal for yourself with extra free time. That said, shipping lines are known to offer extended free time only to customers moving large volumes of cargo or to “large shippers” (800 containers or more in a year).</p><p><em>Try </em><a href="https://www.cogoport.com/blogs/cogoports-special-rate-request-negotiate-best-freight-rates-for-cargo" rel="noopener noreferrer" target="_blank"><em>Cogoport’s Special Rate Request</em></a><em> tool to negotiate for extra detention free days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</em></p><h2><strong>What is Port Storage Charge? How is it different from Demurrage?</strong>&nbsp;</h2><p>Importers and exporters must be careful not to confuse demurrage and detention with port storage charges. A port storage charge is almost identical to demurrage in definition – it is what you pay to have your container stored at a port/terminal beyond an allotted free time, which average 3-7 days. It can apply on:</p><ul><li>Full containers waiting to be shipped</li><li>Full containers waiting for import clearance</li><li>Empty containers stacked at the port/terminal</li></ul><p>However, unlike detention, which is charged by the shipping line, a port storage charge is collected by the port either directly from the customer or from the shipping line, which passes it on to you, usually with a margin. It is a set charge published in the port’s tariff list and is usually valid for a year. With the exception of a few countries (such as Japan) that treat port storage and demurrage as the same, the two charges are almost always separate. Hence, you can end up paying both on the same shipment.</p><p>‍<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Why do Ports Charge Port Storage?</strong></h3><p>Because containers stacked at the port for long periods of time:</p><ul><li>Create a shortage of yard space</li><li>Adversely affect port productivity</li><li>Contribute to port congestion</li></ul><p>How can you avoid paying port storage?</p><ul><li>By planning ahead and following the tips on avoiding demurrage and detention listed above.</li><li>By having your carrier move your containers to a private container depot, where rents may be cheaper. However, the depot has to be a custom bonded area, or an area under a customs bond where goods cannot be moved in or out without the permission of customs authorities.</li></ul><p><em>Try </em><a href="https://www.cogoport.com/" rel="noopener noreferrer" target="_blank"><em>Cogoport</em></a><em> today for hassle-free shipping. Our services – transparent freight quotes, trusted and verified freight forwarders, easy cargo tracking – can help you avoid nasty surprises in the way of huge demurrage and detention bills..</em></p>

How To Avoid Demurrage And Detention Charges

<p>It’s been a turbulent 2020 for shipping lines with <a href="https://www.joc.com/article/carriers-see-rise-booking-cancellations-no-shows_20200528.html" target="_blank">record booking cancellations and container no-shows</a>. While such operational troubles have always plagued carriers, the scale of the problem this year is unprecedented. The reason is the coronavirus pandemic, which has swept the globe and dealt a body blow to businesses and economies apart from exacting a brutal toll on human lives.</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a></p><p>Last-minute cancellations and no-shows by shippers can play merry hell with shipping schedules, operations and finances. To stop this practice, shipping lines have many times in the past introduced <a href="https://www.joc.com/article/booking-cancellation-fee-making-comeback-led-hapag-lloyd_20161006.html" target="_blank">booking cancellation fees and no-show fees</a>, only to roll them back in the face of a backlash from shippers and lack of support from rival companies as a result of fierce competition. With Covid-19 taking a huge financial toll on their businesses, the world’s top container shipping companies such as<a href="https://www.joc.com/article/booking-cancellation-fee-making-comeback-led-hapag-lloyd_20161006.html" target="_blank"> Maersk</a>, MSC and Hapag-Lloyd have brought back booking cancellation and no-show fees.&nbsp;</p><p>This blog explores the ongoing crisis in the container shipping industry and its implications, with insights into the following:</p><ul><li>What are booking cancellations and no-shows?&nbsp;</li><li>How big a problem are they?&nbsp;</li><li>Why do they happen?</li><li>What is carrier overbooking?</li><li>Impact of cancelled bookings</li><li>How Covid-19 has aggravated the problem</li><li>The shipping industry’s response</li><li>How you can avoid paying a cancellation fee</li></ul><h3><strong>Booking Cancellations and No-shows</strong></h3><p><strong>Booking cancellation: </strong>A booking cancellation by a shipper becomes problematic for the carrier when it is done too close to the scheduled sailing. Carriers have a cut-off date and cut-off time for shippers. The cut-off date is the last date for cargo to be delivered at the port or terminal for loading. Similarly, the cut-off time is the latest time by which cargo must be received at a port or terminal for loading. Cancellations that come too close to the cut-off date and time can cause a sea of trouble for carriers, which we will discuss further down.&nbsp;</p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-2.png" width="auto" style="width: auto; height: auto;"></a></p><p><strong>No-show: </strong>A no-show is when a shipper does not inform the carrier that he will not be going through with his booking order and simply fails to show up with his cargo at the port or terminal. It is also called “downfall”. Hapag-Lloyd chief executive Rolf-Habben Jansen says 20% of booked containers are no-shows at cargo terminals, according to a report by <em>The Wall Street Journal</em> published in May. And, according to a study by the New Jersey Institute of Technology, downfalls cost carriers $4.4 billion a year.</p><h3><strong>Why Cancellations, No-shows Happen</strong></h3><p><strong>Double bookings: </strong>Shippers are known to book multiple slots to a) ensure their cargo gets shipped when containers or vessel space are in short supply, or b) get the best possible freight rate. This is a major cause of cancellations and no-shows. Such bookings are called phantom bookings.</p><p><strong>Logistics problems: </strong>There might also be genuine reasons for a cancelled booking or no-show, such as production delays, regulatory setbacks, vehicle or equipment breakdown, or even something as simple as cargo being stuck in traffic.</p><h3><strong>The Flip-side: Overbooked Ships</strong></h3><p>Shippers argue that they are compelled to make multiple bookings because carriers overbook their vessels, the same way airlines overbook seats to ensure full flights. This leads to cargo getting rolled over, which means the shipment fails to get loaded on the ship it is meant to sail on and is accommodated on a vessel that sails on a later date. Shipping lines, on the other hand, defend their need to overbook, saying it stems from last-minute cancellations and no-shows by shippers, which have huge implications for their bottom lines. Carriers usually do not face a penalty for overbooking vessels or the problems arising from it. All in all, shipper no-shows and carrier overbookings are a vicious cycle the shipping industry is yet to find a way out of. The collective loss to the industry from no-shows and overbookings is reportedly $23 billion a year.</p><h3><strong>Impact of Cancelled Bookings, No-shows</strong></h3><p><strong>On the shipper: </strong>There has so far been no negative impact. Attempts by shipping lines to impose cancellation or no-show fees have mostly failed. But this might change with the latest round of penalties in the current economic atmosphere.</p><p><strong>On the carrier: </strong>The impact is huge, say shipping lines. No-shows and last-minute cancellations mean ships sail at reduced capacity, lowering the profitability of the voyage. To fill up the vacancy, ships might lower freight rates close to the date of sailing.</p><h3><strong>The Covid-19 Effect</strong></h3><p>What is already a massive problem for the ocean freight business has been made worse by the coronavirus pandemic. The industry is struggling with:&nbsp;</p><p><strong>Record cancellations: </strong>Earlier this year, lockdowns imposed by countries to curb the spread of the virus resulted in cargo being stranded on ships and at ports and terminals for extended periods of time. In addition, demand plummeted, leading to cancellation rates touching record highs on most routes. According to Juergen Pump, North America president of container shipping company Hamburg Sud, a<a href="https://www.unescap.org/sites/default/files/pub_2484_CH5.pdf" rel="noopener noreferrer" target="_blank"> 15% cancellation rate</a> is the norm in the<a href="https://www.unescap.org/sites/default/files/pub_2484_CH5.pdf" rel="noopener noreferrer" target="_blank"> trans-Pacific region</a> (Asia and North America). But it rose to<a href="https://www.joc.com/article/carriers-see-rise-booking-cancellations-no-shows_20200528.html" target="_blank"> 40% in end-April before recovering slightly to 29% in mid-May</a>. In addition, Hapag-Lloyd’s Jansen predicted in May that the <a href="https://www.joc.com/article/carriers-see-rise-booking-cancellations-no-shows_20200528.html" target="_blank">share of no-shows would go up from the typical 20% to 35%-40%</a> in the following months.&nbsp;</p><p><strong>Blanked sailings: </strong>The cancellations prompted shipping lines to blank (cancel) scheduled sailings:</p><ul><li>In March, 2M, the alliance between Maersk and MSC, reduced capacity by 21% on its Asia-Europe operations</li><li>Hapag-Lloyd<a href="https://www.freightwaves.com/news/more-cargo-chaos-looms-as-carriers-slash-ocean-services" rel="noopener noreferrer" target="_blank"> cancelled 15% of scheduled sailings</a> on major routes, including Asia-Europe and trans-Pacific, a report in May said. “All of a sudden, India shut down,” the report quoted Jansen as saying. “Cargo flows, particularly exports, came to a standstill. From one week to another, your volume goes down by more than half and there is a significant impact.” Jansen was referring to the nationwide lockdown imposed by India at the end of March.&nbsp;&nbsp;</li><li>For the March-May period, London-based consultancy Maritime Strategies International projected a year-on-year reduction in total container volume of 17.8% on the Asia-Europe route, 15% on trans-Pacific (US West Coast), 13% on trans-Pacific (US East Coast), 12% on Asia-Middle East-India, 10% on Asia-Latin America and trans-Atlantic westbound lanes, 8% on intra-Europe and 5% on intra-Asia routes</li><li>Since April, carriers have announced over<a href="https://www.freightwaves.com/news/ocean-container-volumes-are-about-to-fall-off-a-cliff" rel="noopener noreferrer" target="_blank"> 120 blanked sailings</a> up to July, another report said</li></ul><p><strong>Recovery prospects grim: </strong>Shipping lines expect a recovery from the July-September quarter<strong>. </strong>But a second wave of coronavirus infections in several countries has tempered optimism. India is still struggling to keep infections under control. According to Hapag-Lloyd’s Jansen, some shipping companies may go under if the downturn extends to the end of the year and beyond.</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Industry Response: Booking Cancellation Fees Return</strong>&nbsp;</h3><p>In the recent part, booking cancellation fees and no-show fees have been around since June 2019, when Maersk, the world’s largest shipping company, introduced its online booking tool Maersk Spot. Under it, shippers who cancel a confirmed booking pay a cancellation fee. Likewise, if the cargo gets rolled over, Maersk compensates the shipper. But in the current atmosphere of economic disruptions caused by Covid-19, there has been a more concerted effort by the world’s top shipping companies to implement these penalties in all seriousness:</p><ul><li>In March, with the world firmly in the grip of Covid-19, Maersk introduced a $200-per-container booking cancellation fee for dry and reefer cargo on select routes, applicable on cancellations made seven days or less prior to the estimated time of departure. The fee also applies to no-shows and reductions in the number of containers in a booking. In April, Maersk announced another set of booking cancellation fees of $50-$300 per container on a different trade route.</li></ul><p><strong>Note: </strong>Maersk Spot bookings will be considered within their own terms and conditions.</p><ul><li>There have been similar announcements from Hapag-Lloyd, including a <strong>$25-per-container booking cancellation fee</strong> for <strong>export bookings from India, effective August 15</strong>. The fee applies to bookings “where no equipment has been picked up within seven calendar days to vessel departure”.</li><li>Additionally, the Mediterranean Shipping Company (MSC) has announced a <strong>$10-per-container (plus taxes) booking cancellation fee from all Indian gateway ports and inland container depots</strong> <strong>effective August 10 </strong>and from the United States effective August 29.</li></ul><p><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></p><h3><strong>How to Avoid Booking Cancellation Fees</strong></h3><p>Cancellations and no-shows are often the result of booking in haste and without full knowledge of shipping schedules. To avoid paying the penalty:</p><ul><li>Plan your shipments well in advance to ensure there is no carrier shortage</li><li>Do your research thoroughly to look for the best routes and freight rates. Cogoport offers multiple instant freight quotes and up-to-date shipping schedules to plan your shipment better&nbsp;</li></ul><h3><strong>What Happens to Your Booking on Cogoport?</strong></h3><p>The impact of Covid-19 on the shipping industry has not spared Cogoport and it is compelled to charge its customers a booking cancellation fee of $25 per container. The objective behind this nominal fee is to help our customers by ensuring their shipments make it on to a container and a ship at the time of their choosing. Likewise, we aim to help our carrier partners sail at maximum capacity.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p><strong>Booking cancellation fee:</strong> USD 25 per teu</p><p>(Maersk Spot bookings will be considered within their own terms and conditions)</p><p><strong>Effective from:</strong> August 10, 2020</p><p><strong>Applicable on:</strong> All bookings, all carriers, all trade routes</p>

COVID-19 Impacts Cancel Fees,Shipping Lines Bleed

How Will Business Evolve Post Covid - A Podcast

<p>The coronavirus pandemic has been a body blow not only to the human population but to economies around the world. With the<a href="https://covid19.who.int/?gclid=EAIaIQobChMI-ceRyM-p6gIVmX4rCh1amAaUEAAYASAAEgIy2fD_BwE"> fourth highest number of Covid-19 infections</a> as of June 30, India is no different. It announced an unprecedented and absolute nation-wide lockdown to control the spread of the virus on March 24. This brought the economy to a virtual standstill. Micro, Small and Medium Enterprises (MSMEs) were hit the hardest. Since April-end, lockdown restrictions have been gradually eased and industries have resumed work. But in the face of a galloping pandemic, the worst is far from over. The MSME sector, for instance, continues to struggle with cash flow, slowing demand and rising unemployment.</p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a></p><p>This blog takes a deep dive into the impact of Covid-19 on the MSME sector and tackles the following subjects:</p><ul><li>The definition of MSME</li><li>Their contribution to the economy</li><li>Problems faced by MSMEs during lockdown</li><li>Relief measures sought by MSMEs</li><li>What they got from the government</li><li>Whether the relief package has been adequate</li></ul><h3><strong>What is an MSME</strong></h3><p>In May, the government changed the criteria for what constitutes a micro, a small and a medium enterprise. It announced new definitions on the basis of investment (in plant, machinery and equipment) and annual turnover. Earlier, definitions were based purely on investment. These are the<a href="https://economictimes.indiatimes.com/small-biz/sme-sector/govt-to-further-revise-criteria-for-classifying-medium-enterprises-under-msme-definition-gadkari/articleshow/75825564.cms"> latest definitions</a>:</p><ul><li><strong>Micro enterprise: </strong>Investment up to Rs 1 crore, turnover up to Rs 5 crore</li><li><strong>Small enterprise: </strong>Investment up to Rs 10 crore, turnover up to Rs 50 crore</li><li><strong>Medium enterprise: </strong>Investment up to Rs 50 crore, turnover up to Rs 200 crore</li></ul><p>As per the<a href="https://www.indiatoday.in/business/story/nirmala-sitharaman-new-definition-of-msmes-1677605-2020-05-13"> previous definitions</a>, investment limits were Rs 25 lakh (micro), Rs 25 lakh to Rs 5 crore (small), and Rs 5 crore to Rs 10 crore (medium) for manufacturing units. For service-based units, investment limits were Rs 10 lakh (micro), Rs 10 lakh to Rs 2 crore (small) and Rs 2 crore to Rs 5 crore (medium). The revised definitions have done away with differentiating between manufacturing and service-based MSMEs.‍<br></p><h3><strong>MSME Contribution to the Economy</strong>‍</h3><p>There are<a href="https://indianexpress.com/article/explained/coronavirus-india-lockdown-msme-sector-crisis-government-relief-package-6395731/"> 63.4 million MSMEs</a> in India, 51% of them in rural locations, according to the 2018-2019 Annual Report of the Department of MSMEs. They<a href="https://indianexpress.com/article/explained/coronavirus-india-lockdown-msme-sector-crisis-government-relief-package-6395731/"> employ 110 million people</a>.&nbsp;</p><p>In December 2019, when the world was waking up to the Covid-19 threat, the<a href="https://economictimes.indiatimes.com/small-biz/sme-sector/msmes-to-contribute-50-to-indias-gdp-provide-15-cr-jobs-in-5-years-gadkari/articleshow/70092226.cms?from=mdr"> contribution of Indian MSMEs to GDP</a> (gross domestic product, or the sum of all goods and services produced in a country) was 29%. They comprised 45% of the manufacturing sector and 40% of Indian exports.‍</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Lockdown Impact on MSMEs&nbsp;</strong></h3><p><strong>1. Financial obligations&nbsp;</strong></p><p>Despite the lockdown, these enterprises are obliged to pay salaries, rents and bills and pay their suppliers.&nbsp;</p><p><strong>2. Slowing demand</strong></p><p>The sector was already struggling with slowing demand in the lead-up to Covid-19. Now, it is in the midst of a full-blown crisis. On the domestic front, people are buying less, and that too only essential goods. This is unlikely to change soon. In a<a href="https://www.financialexpress.com/industry/sme/msme-eodb-msme-retailers-stare-at-sustained-downturn-as-consumer-demand-less-likely-to-recover-post-lockdown/1986387/"> survey</a> of 4,000 consumers by the Retailers Association of India, published in June, 78% said their shopping expenses would decrease post-lockdown. On the export front, there are few fresh orders. This is because the United States and European Union account for a chunk of Indian exports and both have been battered by Covid-19.</p><p><strong>3. Lack of finance&nbsp;</strong></p><p>Amid slow demand and negative market sentiment, banks are reluctant to lend to MSMEs. This is mainly because the sector has a high ratio of non-performing assets (NPAs) or bad loans. As of January, the<a href="https://www.business-standard.com/article/sme/msme-sector-s-bad-loan-ratio-at-12-5-as-of-january-shows-report-120050900015_1.html"> bad loan ratio of MSMEs was 12.5%</a>. Besides the lack of fresh funding, businesses are struggling to recover existing payments from clients.</p><h3><strong>Relief Measures Sought by MSMEs</strong>‍</h3><p>Soon after the lockdown announcement, MSMEs sought concessions and relief from the government to tide over the financial crisis. Their demands included:&nbsp;&nbsp;</p><ul><li>Time from banks to pay loan installments, interest without incurring a penalty and being declared a non-performing asset</li><li>Inclusion in the 15% income tax slab</li><li>5%<a href="https://economictimes.indiatimes.com/budget-faqs/subvention/articleshow/62495342.cms#:~:text=Subvention%20means%20grant%20of%20money,Read%20more%20on"> interest subvention</a> on working capital&nbsp;&nbsp;&nbsp;</li><li>Reduction in electricity and water tariffs</li><li>Payment of salaries by the government</li><li>Regular payment of<a href="https://economictimes.indiatimes.com/definition/accounts-receivable"> account receivables</a> under the Goods and Services Tax (GST) even if MSMEs have not received payments from customers</li><li>Tax accounting<a href="https://www.thebalancemoney.com/what-is-account-reconciliation-1293657"> reconciliation</a>, assistance on issuance of credit notes under GST, relaxed tax invoicing in the event of cancellations/reductions in orders</li><li>Change in time of supply without fee change to avoid incorrect GST reporting. Time of supply is the time when goods/services are considered supplied and when GST must be paid&nbsp;&nbsp;&nbsp;</li></ul><h3><strong>India’s Covid-19 Response</strong></h3><p>The government has so far released a Rs 20 lakh crore stimulus package to help individuals and businesses tide over the Covid-19 financial crisis. The Reserve Bank of India (RBI) released the first tranche of relief measures on March 27. Finance Minister Nirmala Sitharaman announced a second tranche on May 13. The following are the main relief measures for MSMEs:</p><h3><strong>RBI’s relief measures</strong></h3><p><strong>1. Moratorium on term loan EMIs</strong></p><p>The central bank has allowed banks and lending institutions to allow borrowers to defer EMI payments on term loans till August 31. No late fee will be charged and credit scores will remain unchanged. However, interest will be charged on the months EMIs are not paid.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p><strong>2. Special Liquidity Facility to Sidbi</strong></p><p>The RBI has extended a special refinance facility of Rs 15,000 crore to the Small Industries Development Bank of India (Sidbi) so it can provide liquidity to MSMEs. Soon after, Sidbi announced<a href="https://www.livemint.com/"> special liquidity support schemes</a> for small businesses via banks, non-bank financiers and micro finance institutions.</p><p>You can read the full list of relief measures in this RBI press release here.</p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>Government’s relief measures</strong></h3><p><strong>1. Revised definition of MSMEs</strong></p><p>The finance minister explained that the definitions were revised because the older and lower thresholds had made business owners wary of expanding, believing that they would lose the benefits they enjoyed as MSMEs if they expanded.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p><strong>2. Rs 3 lakh crore credit guarantee</strong></p><p>A credit guarantee entitles a business to a loan from a bank or non-banking financial company that will be repaid by the government if left unpaid. Only those businesses with outstanding loans of Rs 25 crore and turnovers under Rs 100 crore are eligible. They can avail a loan of up to 20% of their outstanding credit as on February 29, 2020. The loan has a tenure of four years, with a 12-month moratorium (which means payments will start only after a year). It is collateral-free, does not charge a guarantee fee, and comes with 100% credit guarantee cover. It can be availed up to October 31, 2020. This is <strong>expected to benefit 45 lakh enterprises</strong>, according to Sitharaman. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <strong>&nbsp;&nbsp;</strong></p><p><strong>3. Rs 20,000 crore subordinate debt scheme</strong></p><p>This makes loans available to MSMEs that were struggling with loan payments before the Covid-19 crisis. But the government guarantee here is partial. The government expects this measure to help 2 lakh businesses.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p><strong>4. Fund of Funds with Rs 50,000-crore corpus</strong></p><p>The purpose of this fund is to finance “viable” MSMEs and help them grow. The government’s share in the fund is Rs 10,000 crore and it expects to collect the rest from institutions such as the Life Insurance Corporation of India and the State Bank of India.</p><h3><strong>Industry Response to Covid-19</strong></h3><p>In March, the Confederation of Indian Industries (CII) – a non-government, industry-led organisation with 9,100 members drawn from the public and private sectors, including MSMEs – announced measures for MSMEs. These included a CII COVID-19 CODE and a CII COVID Rehabilitation and Relief Fund to help the sector stay in business and avoid laying off workers. The CII also asked member companies to produce sanitizers, ventilators and medicines on a no-profit basis.</p><h3><strong>What it All Means</strong>‍</h3><p>To what extent did the relief measures help MSMEs? While it might be too early to tell, a<a href="https://economictimes.indiatimes.com/small-biz/sme-sector/44-msmes-feel-stimulus-package-not-good-enough/articleshow/76082351.cms?from=mdr"> survey</a> with a small sample size, conducted by Skoch Consultancy Services in association with the non-profit Federation of Indian Micro and Small &amp; Medium Enterprises in May, provides some clues. Of the 200 respondents, 34% found the government’s stimulus package useful while 44% did not. In addition, 77% said the immediate challenge for MSMEs was to meet fixed expenses such as paying salaries and vendor bills. And, 86% favoured direct cash support.<a href="https://www.moneycontrol.com/news/business/markets/market-unhappy-with-govt-measures-further-weakness-seen-experts-5269361.html"> Experts agree</a>. They say the government is increasing the burden on businesses by providing loans instead of upfront liquidity.&nbsp;&nbsp;</p><p>Another<a href="https://economictimes.indiatimes.com/small-biz/sme-sector/over-one-third-msmes-start-shutting-shop-as-recovery-amid-covid-19-looks-unlikely-aimo-survey/articleshow/76141969.cms?from=mdr"> survey</a>, conducted by the All India Manufacturers’ Organisation and published in June, found that 35% of MSMEs had gone out of business and that the relief measures had either not reached them or had been inadequate. Of those hopeful of getting back on their feet, 46% said recovery would take three months while 26% said it was only possible by the year-end.</p><p>With the situation as it is,<a href="https://economictimes.indiatimes.com/small-biz/sme-sector/44-msmes-feel-stimulus-package-not-good-enough/articleshow/76082351.cms?from=mdr"> unemployment</a> has naturally followed. The number of MSMEs cutting all jobs in May rose to 6% from 4% in April.</p><p>Adding to the gloom, India’s overall economic situation remains grim. In June, the International Monetary Fund said<a href="https://scroll.in/latest/965589/covid-19-imf-says-indian-economy-will-contract-by-4-5-in-2020-21-global-gdp-will-decline-by-4-9"> India’s GDP would contract by 4.5% in 2020-2021</a>. This was a revision of its April forecast of 1.9% positive growth.<br></p>

Impact of Covid-19 on the Indian SME Sector

<p>With small and medium enterprises on the rise, more and more tools are being created to help them do business. This article is aimed at introducing some of the best tools available. Running a business comes with its own set of problems like limited time, manpower shortage, or multiple bills and tasks. Among all these challenges, one goal should be static, to work smarter rather than harder. In order to allow yourself to focus on the tasks which are of higher priority, you need to be aware of certain tools that can aid you in your day to day activities. Saving you the trouble of searching for endless lists of tools we bring to you a curated list of 6 tools that are going to make doing business a lot easier.</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 1.png" width="auto" style="width: auto; height: auto;"></a></p><h3>In this blog, we will list six digital tools to make the daily business smarter</h3><h3><strong>1. Evernote - A one-stop solution for all your business task organisation needs</strong></h3><p>Have you ever come across a business news article or some news on the TV that you intend to remember for some future references but you end up forgetting? Or, let’s say you had visited an exhibition or a trade fair where you penned down important information on a post-it note or some piece of paper and now you cannot find it. It happens all the time and with most of us. With the advent of technology, we can now save these bite-sized useful pieces of information over our devices and we can access them anywhere anytime and on any of the devices we have.</p><p>Evernote is a cloud-based application that saves all your notes or articles and allows you to view it across all your devices. It helps you collect these notes, helps you organise it in a structural manner, and lets you access them anytime, any day, and on any device. If you like some information that has been shared in the form of an image, on Evernote you can save it as an image too. It even allows you to save a voice recording!&nbsp;<br></p><p>Moreover, when doing business you have multiple timelines running in your head. Our brains are constantly filled with information such as delivery dates and stock arrival dates. There are always a million tasks to be tracked and completed and some of them in a proper series. It also happens that some of these tasks skip our mind because of such clutter.</p><p>Evernote could also be used as a ‘Get Things Done’ system. It could support projects, priorities, contexts, and event agendas. The best part about this tool is that you can use Evernote’s Email plugin with your Mail service and move all your emails over to Evernote so you can act on them from one place. Evernote turns your chaos into an orderly structure so that you never miss out on anything.<br></p><p>Here are some useful benefits of using Evernote:</p><ul><li>Write and share your notebooks with colleagues, employees, etc.</li><li>Take and attach pictures to note right from within the app</li><li>Take and attach voice memos and audio to note right from within the app</li><li>Scan text in a photo using Optical Character Recognition technology</li><li>Make a project schedule to track and complete each of your tasks</li></ul><p><strong>Get started:</strong> Download the<a href="https://evernote.com/"> Evernote</a> app and create an account to get started. All you have to do is sign up and you’re good to go. Create different notebooks according to your needs. You just have to click on the “+” button at the bottom of your phone’s screen and start typing or add pictures or clips. You can also set reminders and checklists that assist you in remembering your tasks or activities.</p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>2. DocuSign - Signing documents made easy and fast&nbsp;</strong></h3><p>You schedule your tasks according to the needs of your client. Next, you start arranging loads of documents to be signed by you and your client. There’s a long wait period till you get your documents signed and back. Besides a lot of time, signing documents gets delayed because the documents are always stored at your workplace. This means you cannot sign them on time if you are at home or some other place. With DocuSign, you can sign multiple documents virtually. You can access, sign, and send documents from anywhere you are. This might end up saving a lot of time and paper, it will also increase the pace of your business. DocuSign works with the services, applications, and devices you already use: Microsoft, Salesforce, Google, Apple, and many more. DocuSign is the most reliable and globally trusted service for electronic signatures and approvals, it caters to more than 85 Million users worldwide.&nbsp;</p><p>It also provides a 30 day free Trial period. Here are some useful benefits of using DocuSign:</p><ul><li>See who opened your document and when they sign it</li><li>It uses Public Key Infrastructure to ensure all your e-signatures are safe and secure</li><li>You can use DocuSign with Dropbox, Google Drive, and One Drive.</li><li>Online Signatures are legally accepted and hold value in the court.</li><li>Send reminders to recipients and view audit trails</li><li>Simply upload your documents and create a reusable template so that your employees can easily create, distribute, and update agreements.&nbsp;</li></ul><p><strong>Get started:</strong>&nbsp; Send, sign, and manage your documents. Here’s a step by step guide <a href="https://www.docusign.com/products/electronic-signature/how-docusign-works">How does DocuSign work?</a></p><h3><strong>3. Dropbox - Get access to all your files, documents, and media anytime and on any device</strong></h3><p>Do you have different files on different gadgets? Everybody knows that it can be a pain to carry all the gadgets in every place you go to. Dropbox makes the job easier for you. Just create an account on Dropbox and upload all your files and documents so you can have access to them anywhere, anytime. Dropbox works on all the devices and it allows you to organise your documents, images, and videos. You can just structure and place the documents any way you want and exit the app. The next time you use the app, it will be exactly how you left it.</p><p>Here are some useful benefits of using Dropbox:<br></p><ul><li>Keep all of your important documents in one easy to find location.</li><li>Makes file easily portable without the use of any external devices</li><li>With its encryption security, all your files are safe and secure</li><li>Send documents directly from dropbox</li></ul><p><strong>Get started:</strong>&nbsp; Download the<a href="https://www.dropbox.com/install?trigger=_footer"> Dropbox</a> app, register for free from any of your devices, and finally start uploading to Dropbox. You can also go to settings and turn the auto-sync feature on. With this feature turned on, all your images and docs would automatically be uploaded to Dropbox. You can organize it in an effective manner.<br></p><h3><strong>4.</strong> <strong>Fiverr - A marketplace for paid services&nbsp;</strong></h3><p>When you are running a small business there are various tasks that need technical expertise, various projects that might be outside of your domain knowledge. A simple example could be building a website. On the other hand, various other projects for which you might need assistance could be, market and, product research; business, legal, and financial consulting; lead generation, etc. Usually, to obtain these services you will ask a couple of people who would then ask their business friends and it would turn out to be a long and tiresome process.&nbsp;</p><p>This is where Fiverr makes life easier for you. Fiverr is the world’s largest marketplace for services. Fiverr enables you to browse the selection of freelancers offering services, and to place orders in just one click. A service offered on Fiverr is called a Gig.<br></p><p>Here are some useful benefits of using Fiverr:<br></p><ul><li>Browse &amp; Book from multiple freelance experts available.</li><li>Manage your time by delegating tasks to these freelancers</li><li>Be absolutely sure by talking with the service providers before proceeding to the payment</li></ul><p><strong>Get started:</strong> Sign up on Fiverr for free on its website or download the app from AppStore. Start searching for services that you need by browsing the Fiverr catalog or by using Fiverr’s search engine. After you have shortlisted the service and the freelancer, click on it for more information such as a description of services or previous/sample works. You can also connect to the service provider in case you have any doubts. When you have made up your mind, simply proceed by placing the order.&nbsp;</p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>5.</strong> <strong>MailChimp - Makes Email marketing easier, more efficient, and more user friendly</strong></h3><p>When you have a small business, it is necessary to get your voice out and to reach your customers and potential leads. For retaining your customers or retargeting, MailChimp becomes your best solution.&nbsp; It is an extremely useful tool for people who are not familiar with email newsletter design. You can make a visually pleasing Email letter with the help of this software to grab your reader’s attention. Regularising the email newsletter would also help in increasing traction to your website which could then be converted into a sale.</p><p>Here are some useful benefits of using MailChimp:<br></p><ul><li>Automate Routine Tasks</li><li>Customize sign up forms</li><li>Send blast as well as targeted mails</li><li>Utilize insightful reporting and analysis</li></ul><p><strong>Get started:</strong> Create an account on<a href="https://mailchimp.com/"> MailChimp</a> and you will land upon a dashboard with an option of ‘Explore MailChimp’ which allows you to understand the tool’s capabilities. You can also run campaigns by creating audiences and check campaign engagement along with other helpful activities.<br></p><h3><strong>6. Grammarly - Communicate clean, mistake-free, and professionally</strong></h3><p>With Emails that you will be writing to your clients overseas, communication cannot be compromised with. There has to be absolute clarity in what is being communicated and in a way that is easy to understand. This means there is zero room for mistakes, however silly the mistake be. On the other hand, most of these conversations on Email or over phone happens in English. There might be slight trouble if it is not your native language or if you do not use it in day to day life. But you don’t worry, Grammarly helps you in making your written communication look flawless. Grammarly makes sure that everything you write is easy to read, effective, and without any mistakes. It automatically detects grammar, spelling, punctuation, word choice, and styling mistakes in your writing.</p><p>Here are some useful benefits of using Grammarly:<br></p><ul><li>Grammar and spelling checks</li><li>Enhances your vocabulary&nbsp;</li><li>It is highly accurate</li><li>Easy to understand explanations, it has full explanations to the corrections it makes</li><li>Customization - Add any word you use in your dictionary and Grammarly will never mark it wrong/ correct it again<br><strong>Get started:</strong> All you have to do is add Grammarly’s extension to your browser and it will work like a charm on all your online endeavors.&nbsp;</li></ul><h3><strong>Conclusion</strong></h3><p>There is an unending list of day to day challenges for an SME business.&nbsp; With these smart tools, you will have an edge in doing your business in a smoother and more efficient way. As mentioned earlier, one goal needs to be static, to work smarter. </p>

6 Digital Tools to Make Your Business Smarter

<p>Exporting is a major activity, which requires organisations to consider various factors. This should include analysing the place, laws and regulations, logistics, customer perspective, capital and resources, cost, and insurance of the business. This can help in the successful exporting of goods and services.</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a></p><p>Researching the place and its market status is vital before exporting the product. The leading countries which are favourable for the exporters are USA, China, Germany, Japan, UK, Asian and Eastern countries. In 2017, the country which had the highest number of imports is USA and the import value is about 2.41 trillion dollars. In addition to this, you will be surprised to notice that the trading of products generates a large amount of capital for the countries. The world had a total export of 20,834,690,355.83 US dollars from 2004 to 2018<br></p><h3>Key Factors One Needs to Look After Before Engaging Export.<br></h3><h3>Importance of Place<br></h3><p>While exporting of products, one thing that should not be neglected at all is the place where you want to export your product. The economic growth rate of the new market should also be considered as a vital factor while exporting, along with the competitiveness in the market where the product is to be exported. The organisations must evaluate the economic conditions of a country in which they are exporting their products and services in order to ensure success.<br></p><figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center"><div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/5eea2ddfeb85803d07e790a0_SNrU3XjuywxSD2Z5MYLFXNioxwxRUDRL9xW7o59QCT7wBHK-HQnU_yOWquYbCWOZu4jW4rr6nkxeTGv0DN24nXAjyDxdJAdfzWAhpgJXny_A4i17-8_mYllDFPRt37CV7o-soGZ-.png"></div><figcaption><strong><em>Figure: Leading import countries worldwide in 2017</em></strong>‍<br></figcaption></figure><p>- &nbsp; In domestic business as well as in export business, a plan should be formulated because it can help you to determine the steps involved in selling the product successfully in the international market. According to a research conducted by Brinckmann, Grichnik, and Kapsa in 2010 on the business growth of 1146 companies, it was found that planning helps in improving the companies to grow thirty per cent faster than their usual pace.</p><p>- &nbsp; If you think one can simply start exporting the products after researching about the market then you are wrong. It is important to understand the export and import regulations in all the countries where you want to export your products. In case you violate any of the rules and regulations then your product can be banned from the market.</p><p>- &nbsp; In Europe, the import of some products is only possible through an import licence. In order to monitor the trade laws and safeguard measures, the EU authorities make use of licences. For example, all the imports of iron and steel are checked and verified by the European Union surveillance teams and the importers are informed to provide the EU surveillance documents in case the weight of the imports exceeds by kilograms.</p><h3>Description of Product<br></h3><p>The products that you want to export to Europe should not be prohibited. Some animals and plant-related products may be a part of the endangered species. The European Union does have strict laws related to the animal and plants products that are in the endangered category. Additionally, there are some other products such as dangerous chemicals which are strictly banned from the European market. If you are one of those who want to export chemicals then you should go through the rules and regulations related to chemicals by the European Union.</p><p><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px"></p><h3>Customer Satisfaction<br></h3><p>It is important for any business to reduce the initial expectations and focus on establishing itself by gaining the confidence and trust of customers. In Europe, there are several products serving the same needs and you need to stand apart by maintaining your consistency and by proving the value of your product to the European people.<br></p><h3>Feasible Transport Modes<br></h3><p>You will also need to ensure that which are the most feasible ways or logistics’ to export your product into Europe. In 2018, the highest value of goods exported to Europe was through the sea, which amounted to 55 per cent of the total value. Another mode of transport that had a fair share in the export of goods to Europe is air, which amounted to 20 per cent of the total value. If the logistics will take up a large amount of money, it will also impact the overall cost of the product in the foreign country. If the price is too high, then the product will not be able to reach a large number of customers.<br></p><h3>Product Demand<br></h3><p>Opportunities must be grabbed by the people when exporting their products to Europe because the demand for any product can help in making your product successful. The product can only survive in the European market for a long period of time if it adjusts to the changing market demands.&nbsp;</p><h3>Importance of Marketing<br></h3><p>Marketing can also play a vital role in making the product more attractive to people. In 2018, the spending on marketing in Europe was around 154570 million US dollars. Companies rely on marketing to advertise and promote their products, as there are a large number of companies operating in the foreign market.</p><h3>Product’s Cost<br></h3><p>Cost of the product is important in attracting the people as cost influences the decision making of the people. The products that you want to export might violate some intellectual property right and the European Union can restrict your product from the market on this base.<br></p><h3>Insurance of business<br></h3><p>One should get the firm or business insured because the product might get destroyed or damaged during its journey to the foreign country due to natural calamity or any other reason. There are various suppliers present in the foreign country and you can contact the suppliers so that they can give you a brief idea about the market conditions.<br></p><h3>Capital and Resource Requirement<br></h3><p>Exporting to Europe is not an easy task because it involves a lot of capital and it the utilisation of resources it not done properly then it might snatch the opportunity to establish your product in the foreign market. The product should not violate intellectual property rights because it can lead to the destruction of the imported goods in the foreign markets.<br></p><h3>Final Words<br></h3><p>An ample number of things should be kept in mind while exporting products and services to a foreign country. Product, cost, capital, resources, transportation are among the significant factors that must be given utmost attention while exporting to a foreign country.</p>

Top 12 Things to Keep in Mind While Exporting

<p>Finance is the key factor that determines the expansion and development of any business concern, regardless of size. But access to finance is contingent on businesses having good credit scores – &nbsp;no bank or non-banking financial companies or NBFCs will lend to businesses with bad credit scores.&nbsp;</p><p>It is especially important for small businesses to have easy access to finance because they can suffer from cash flow problems, which hampers growth. This is why SMEs must especially ensure that they maintain good credit scores. Unfortunately, many small businesses neglect this important point.</p><p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto" style="width: auto; height: auto;"></a></p><p>In India, your credit score ranges between 300-900, with 300 being the lowest. On average, to qualify for any kind of small business loan, businesses need a credit score of at least 650. But around 67% of Indian SMEs have scores between 300 and 650. This is a matter of concern.‍</p><h2>In this blog, we will list seven expert tips SMEs can use to improve their credit scores.</h2><h3>1. Be Tax Compliant<br></h3><p>Keeping good accounting records has several benefits for small businesses. Among other things, it helps you manage your cash flow and makes it easier for you to file tax returns. It is advisable to use good accounting and taxation software such as Zoho, Quickbooks and Tally for this. You must also make it a habit to consult your chartered accountants whenever you need to make TDS payments or prepare financial statements. These best practices will help you close your accounts effortlessly at the end of each financial year, and will go a long way in helping your business improve its credit score.</p><h3>2. Maintain A Single Account<br></h3><p>It is common for SME owners in India to operate separate business and management accounts for tax-filing purposes. SMEs should avoid doing this. It is advisable for each SME to operate just a single account because that shows that the business is following a transparent accounting system, which is a plus point in the context of getting a good credit score. Always use a good quality accounting system to track sales, check inventory, and monitor purchases and payments from vendors.</p><h3><strong>3. Use Banking Channels To Become Credit Worthy</strong><br></h3><p>Once SMEs start using channels such as banks and online payment solutions for payments and receipts, all transaction records become easy to track, enabling smooth audits. This gives your business credibility and a good credit score, helping you to avail of bank overdrafts, working capital loans or higher draft and cash credit limits. All of this will help you grow your business exponentially.</p><p><a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-3.png" width="auto" style="width: auto; height: auto;"></a></p><h3><strong>4. Pay All Dues On Time</strong><br></h3><p>We cannot emphasise this point enough. It is extremely important for a business (or an individual) to have a clean payment history if they want a good credit score. Credit officials go deep into payment histories of SMEs (and individuals) to determine their credit score. These payments include EMIs, credit card payments and even small loans. Non-payments, default payments, untimely payments, and unclear source of funds used for payment can hurt your business’s efforts to improve its credit score.</p><h3><strong>5. Personal Credit Scores Matter Too</strong><br></h3><p>Though most people keep their business and personal credit histories separate, credit officials often take into account the personal credit score of owners or directors of SMEs while determining a business’s credit score. In fact, in the case of &nbsp;sole proprietors, the firm and owner are treated as a single entity – so the credit score of the firm is in the proprietor's name.&nbsp;</p><p>This is why owners or directors of all SMEs must maintain good personal credit scores by repaying their loans and credit cards on time. Not doing&nbsp; so can hurt the credit score of their businesses.&nbsp;</p><h3><strong>6. File GST Returns On Time</strong></h3><p>No matter what the scale of your business, you must file your GST returns on time. You can easily do this if you keep track of your accounting records digitally. If you are disciplined in maintaining accounting records, you will ensure that you get your TDS and other GST-linked payments quite easily. Filing GST returns on time is also critical because several banks and NBFCs check GST filings before providing businesses with any loans.</p><h3><strong>7. Go Digital</strong><br></h3><p>As is the current trend, going digital is the way forward for businesses worldwide, including SMEs. Using digital payments methods – such as internet banking, mobile wallets, UPI, NPCI, wire transfers, or even RuPay cards – reduces transaction costs drastically and also leads to clearer and cleaner record-keeping. These are things credit officials like to see.&nbsp;</p><p>As is evident, getting a good credit score for an SME is not rocket science. You can do it if you just keep your accounts clean and transparent.&nbsp;</p><p>Following these seven tips and maintaining accounting discipline might seem difficult at first, but if you persevere, it can soon become a habit and your credit score will soon reach the goal you have set.</p><p><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" alt="" width="300px"></p><p>Once you have a good credit score, you can maintain it by:</p><ol><li>Making timely payouts.</li><li>Keeping your credit balances low.</li><li>Managing company debt.</li><li>Following proper processes when you close old debt accounts.</li><li>Keeping an eye out for feedback.</li></ol><p>To conclude we’d like to emphasise again that it is extremely important for an SME to improve its credit score if it wants access to finance that will help the business grow.<br></p>

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