Final Internship Report(1).docx

ORGANIZATIONAL STUDY AT NYK SHIPPING LINE INDIA Dissertation submitted in partial fulfillment of the requirements for the award of the Degree of MBA in International Transportation and Logistics Management

Submitted by,

MARTIN KIRUBAHARAN .C (Registration No. 1705305019)

Under the guidance of Prof. Dr. P A Jayan

SCHOOL OF MARITIME MANAGEMENT

INDIAN MARITIME UNIVERSITY COCHIN CAMPUS

INDIAN MARITIME UNIVERSITY SCHOOL OF MARITME MANAGEMENT COCHIN CAMPUS

Dr. Jayan P A Asst. Professor School of Maritime Management

Willingdon Island

Indian Maritime University

Date:

Kochi Campus

CERTIFICATE

This is to certify that the dissertation titled “ORGNAIZATIONAL STUDY OF NYK LINES” is a bonafide record of Internship done by MARTIN KIRUBAHARAN.C and is submitted in 3rd semester of MBA International Transportation and Logistics Management. It is also certified that the above work has not previously formed the basis for the award of any degree, diploma, fellowship or other similar titles, and it is an independent work done by the internee. Dr. Jayan P A (Internship Guide)

Dr. Yogamala H L (Head of the Department)

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DECLARATION

I hereby declare that this dissertation titled “ORGNAIZATIONAL STUDY OF NYK LINES” is a bonefide work done by myself during the academic period 2017-2019 in partial fulfilment of requirements for the award of degree of MBA (International Transportation and Logistics Management) from School of Maritime Management, Indian Maritime University, Cochin campus. And this work has not been previously formed the basis for the award of other academic qualification, fellowship of other similar title of any other university or board.

PLACE: Cochin DATE :

Martin kirubaharan.c

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ACKNOWLEDGEMENT This is to express my deepest gratitude to all those have extended their timely support and helping hand in completing this study. God almighty, without whose blessing I could have been able to successfully complete this study. I express my deep sense of gratitude towards Mr. prakesh iyer for enabling me to carry out this internship. It

has

been

a

great

privilege

and

honour

to

work

under

Prof. Dr. Jayan P.A , Assistant professor, School of Maritime Management, Indian Maritime University, Cochin for his timely advice and guidance which made me to work with zest and zeal. My heartfelt gratitude towards Dr.YOGAMALA .H.L, Head of the department, School of Maritime Management, Cochin campus, for the moral support, useful suggestions and guidance throughout the course. I also like to thank all the faculties and staffs of Indian Maritime University for their active support to complete this internship project and to all the teachers and friends for their encouragement at various stages of this internship. And heart flows with at most gratitude towards my loving parents. Martin kirubaharan.c

3

EXECUTIVE SUMMARY Scope of internship training is to understand actual happenings in and around the industry and to collect real time information which helps me to enhance my practical knowledge towards the subject. NYK lines is a fast growing shipping line operating container vessel to major hub ports around the world and has a strong presence in South East Asia, Far East Asia, Africa, India sub-continent, Gulf, Middle East, and West coast of North/South America. NYK lines subsidiaries are,     

Yusen logistics Co.Ltd Nippon cargo airlines NYK Shipmanagement Pet Ltd. NYK Group Europe limited NYK Business systems Co.Ltd

During my internship period, I observed various function and operations of various departments of NYK shipping lines. Along with the other department I mainly focused on operations department. In this report my observations about the operation of the organisation were furnished and SWOT analysis is also being made. Finally from my observation I draw conclusion.

Martin kirubaharan c

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TABLE OF CONTENTS

Chapters

Page No

DECLARATION

2

Acknowledgment

3

Executive summary

4

Chapter 1

7-11

 Introduction  Vision and mission  Strategic objective  Management polices  Business strategy of NYK

 Value added services Chapter 2

12-20

 NYK Merger  OCEAN NETWORK EXPRESS

 Business model of ONE  SCOT analysis  Advantages of SCOT analysis  SCOT analysis of NYK

5

Chapter 3

21-25

 Containerization  Types of container loading  Types of container

Chapter 4

26-43

 Departments of NYK  Sales department  Customer service department  Export documentation department  Operation department  import documentation department

Chapter 5

44-46

 suggestion  conclusion

6

Chapter 1

7

CHAPTER 1

INTRODUCTION : Nippon Yusen Kaisha was born on September 29, 1885 with the merger of Yubin Kisen Mitsubishi Kaisha and Kyodo Unyu Kaisha that took place after a period of political strife as well as competition between these companies. The Company’s name was changed to Nippon Yusen Kabushiki Kaisha in 1893. The Company, popularly known as NYK, began operations on October 1, 1885. The NYK fleet of 69 ships consisted of 58 steamships and 11 sailing ship and the steamship fleet aggregated 77% of Japan’s total registered steamship tonnage. The fledgling company had only three overseas services were poised for growth. By the turn of the century, Nippon Yusen Kaisha was ready to expand its overseas trade and commenced its Bombay Service in 1893, followed by services to Europe, North America and Australia in 1896, thereby firmly entrenching NYK as a major ocean carrier. The conclusion of the World War One brought Japan and NYK to face tough weather. Merging with Toyo Kisen Kaisha, NYK deployed its own luxury passenger liners in the Pacific Ocean. The Great Depression of 1929 affected NYK to a large extent. Business recovered in times to come, and NYK celebrated its Golden Jubilee on October 1 1935 owning 85 ships, aggregating 627,000 gross tons with a total of 1989 employees serving the company both on land and sea. NYK Line services included passenger and cargo services to Europe, the east and west coasts of North America, The Gulf of Mexico, and the west coast of South America, Australia, India, China and the South Sea Islands. Fifty years after its founding, NYK was well on the way to becoming one of the largest shipping companies in the world. The world war two saw the beautiful luxury liners requisitioned in preparation of war. At the beginning of the war, NYK has 133 ships and 89 more ships were built during the war. Only 36 ships survived the war. This was coupled with the tragic loss of the lives of 5312 NYK employees, most of whom were seamen. The Shipping Industry in Japan, supported by the re-privatization and special support to the ship building industry post the world war, started the long rebuilding process. NYK was on the path to developing into a comprehensive shipping company. In 1959 NYK ventured into operating oil tankers and building specialized carriers for importing raw materials and exporting finished goods, thereby contributing to the rapid growth of the economy. In 1965 the industry was revolutionized by containerization and NYK immediately launched its containerization program to cope with the new requirement by commissioning Hakone Maru in 1968, Japan’s first container vessel. Slowly but surely NYK diversified in bulk carriers, ore carriers and LPG tankers. NYK’s first Pure Car Carrier, Toyota Maru was completed in 1970. PCC’s permitted more efficient handling of cars. In 1985, Nippon Cargo Airlines (NCA), a joint venture between NYK and three other shipping companies launched itself into air cargo business. This was the first step in NYK’s move towards establishing integrated transport systems combining land, sea and air operations becoming a total logistics carrier. Continued growth and diversification with regional offices across the globe, with consistent focus on Corporate Social Responsibility, pioneering environmental measures, maritime institutes, and commitment to the Corporate Group Values ensured that today Nippon Yusen Kabushiki Kaisha is one of the world's leading transportation companies. At the end of March 2013, the NYK Group was operating 846 major ocean vessels, as well as fleets of planes, 8

trains, and trucks. The company's shipping fleet includes 389 bulk carriers, 126 containerships (including semi-containerships), 120 car carriers, 82 tankers, 51 wood-chip carriers, 28 LNG carriers, 18 heavy-load carriers / conventional ships, three cruise ships, and 29 other ships. NYK's revenue in fiscal 2012 was about $23 billion, and as a group NYK employs about 55,000 people worldwide. NYK is based in Tokyo and has regional headquarters in London, New York, Singapore, Hong Kong, Shanghai, Sydney, and Sao Paulo.

VISSION & MISSION STATEMENT: Qualify as one of the BEST Marine Transportation Agencies Understand the needs of our CUSTOMERS & their business requirements. Meet applicable statutory and regulatory requirements. Achieve continual IMPROVEMENT in our services by increasing efficiency and reducing costs.

Group mission statement of NYK: The NYK Group strives for the realization of the group mission statement, as every staff member endeavours to meet the expectations of their customers and gain the trust of society.

STRATEGIC OBJECTIVES : 

Limit the damage to the ENVIRONMENT.



Improve COMPETENCE of our employees through motivation, training & effective leadership.



Technology should be used to maximise.



Yearn & endeavour to build mutually beneficial relationships with our business partners.

NYK QUALITY OBJECTIVES: • To comply with all customer requirements • To comply with all applicable State and Federal Laws and Regulations • To follow a concept of continuous improvement and make best use of our management resources • To communicate our Quality objectives & our performance against these objectives throughout the Company and to interested parties. • Take due care to ensure that activities are safe for Owners, Charterers, employees, subcontractors and others whom come into contact with our activities. • To work closely with our customers and suppliers to establish the highest quality standards. • To train our staffs in the needs & responsibilities of Quality management. • To encourage all staff to exercise their individual responsibility for quality. 9

Management polices : Together with customer: Through the use of our extensive skill and expertise and by considering each business site to be of utmost importance, we always work to create new value so that our customers will consider us a trusted and reliable partner.

Together with our shareholder and investors: We aim to enhance our corporate value by being financially responsible and by conducting business activities in an open, honest, and transparent fashion.

Together with society: As a good corporate citizen, we positively take on the tough issues that challenge our society, such as concerns involving the preservation of our natural environment, as we work for the betterment of the world that we inhabit.

Together with all the staff in NYK: As a global enterprise that has the utmost respect for diversity in the workplace and the spirit of challenge, we emphasize the development of employee talents so that all staff members can take pride in their work and eventually fulfil their dreams.

Business strategies of NYK: Energy transportation LNG transport 

Train and develop highly skilled seafarers at in-house maritime academy in the phillppines and other institutes.



Provide higher quality navigation, ship management and construction supervsion capabilites.



Develop new business related to LNG fuel.



Pursue LNG exploration and production opportunities in mid-up-stream LNG business supported by credibillity and proven track record in safe transportation.



Strive to be more involved in alll stages of the LNG value chain and seek synergies with LNG transport business. 10

Auto logistics We are providing logistics to support the shift by automakers to global production while expanding the NYK group’s main network. Our network has grown to 41 facilities in 21 countries. We are also concentrating on,  

Inland logistics RORO terminal

Roro terminal at NYK strategic location Since the late 1990s, NYK’s RORO Terminal Business has expanded globally linking land and ocean transportation. In addition to loading and unloading cargo from vessels, yard management and Pre-Delivery Inspection (PDI) services are conducted according to specific customer requirements. The Terminals are designed and managed to provide a high quality service within a safe working environment, whilst offering a sophisticated range of value added services.

Inland transportation NYK truck or rail: We offer inland transportation services for finished vehicles from automobile manufacturing plant to port, plant to dealer and port to dealer by carrier car (truck) and/or rail. On a trip, we offer Vehicle Distribution Centre (VDC) for storage, value added service and timely distribution to respond to each customer request.

Value added services: Integrating our extensive Auto Logistics facilities and infrastructure enables NYK to provide a complete range of Value Added Services to finished vehicles. 

Pre-Delivery Inspection - Battery check, washing, water leakage test, under body inspection & tyre pressure check



Maintenance / Repair



Accessory Fittings



Protecting Covering



Stock Yard Management

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CHAPTER 2

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CHAPTER 2 NYK’S MERGER: Mitsui OSK lines (MOL) Headquarter :- Tokyo, Japan Mitsui OSK lines (MOL) is a Japanese transport company and formed after merger between two Japanese companies. OSK lines were a shipping company which was formed in 1884 and Mitsui was formed in 1942. In 1964 Mitsui OSK lines was formed, following the mergers of two companies OSK lines and Mitsui. After the formation in 1964 they launched specialised car carrier in 1965 and then full container ships in 1968. Later on they also entered the LNG market and also launched the double hull VLCC in 1995. As a strategy to expand their container services covering North America, Asia and Europe, MOL joined a global merger known as The New world alliance (TNWA) with American president lines and Hyundai Merchant Marine. In 1999 Mitsui OSK lines (2nd largest in Japan) merged with Navix lines (4th largest in Japan) . After the merger with Navix lines, MOL became one of the biggest maritime carriers in the world . The company has in total 533 subsidiaries and affiliated companies in 66 countries with a consolidated work force of 39,864 employees .Its main areas of operations are shipping and shipping related activities. MOL has a wide range of ships such as containers, pure car carriers, Bulk carriers, Tankers, LNG carriers. MOL's core business segments are its bulk ships, container ships. In addition to ships they are in logistics services such as distribution and inventory control, air cargo transport, construction and engineering, real estate, trading and R &D. MOL has 861 ships as of 31st March 2009 with a carrying capacity of 59,643 thousand tons. In terms of number of ships and deadweight MOL ranks one of the largest shipping company in the world. It has the largest Dry bulk fleet in the world with fleet size of 356 ships with a combined deadweight of 31026 million tons. MOL is ranked first in terms of operation of LNG ships. Even after the financial crisis, the bunker prices at sky high rates and a strong yen in FY 2008 MOL posted their second highest annual income till date. This was more due to the strong performance in first half of 2008. Their revenue for FY 2008 was 18,994,218 thousand dollars with net income of 1292752 thousand dollars. In 2001 MOL launched its corporate principles to 'promote and protect our environment by maintaining strict, safe operation and navigation standards' . As per their principles they launched the 24hour manned (SOSC) Safety Operation Supporting Centre in the Head Office which monitors all MOL vessels position all around the world. MOL is also heavily involved in research and development. In December 2009 it displayed its concept of new generation vessels. The car carrier which is environment friendly they call it a HBRID car carrier, i.e. it uses renewable energy for ships electricity supply. The current president of MOL is Akimitsu 13

says he want to create an 'excellent and resilient MOL group that contributes to sustainable worldwide growth'

“ K- line ” Headquarter: Tokyo, Japan Kawasaki Kisen Kaisha, Ltd. also known as "K" Line, is one of the largest Japanese transportation companies. It owns a fleet that includes dry cargo ships (bulk carriers), container ships, liquefied natural gas carriers, Ro-Ro ships, tankers and container terminals. It is the fourteenth largest container transportation and shipping company in the world. History of k-line can be studied under following subheads. 1919-1944 "K" Line (named after three K initials) was formed when Kojiro Matsukata placed Kawasaki Kisen, Kawasaki Zosenand Kokusai Kisen under joint management to build a stronger fleet of 40 to 50 ships serving the Atlantic, North and South America, Africa and the Mediterranean and Baltic Seas. According to Lloyds, the newly established "K" Line was ranked 13th in the world in 1926, behind NYK (9th) but ahead of O.S.K. (14th). By the end of World War II, Kawasaki Kisen had lost 56 vessels; 12 survived. 1945-1961 During that vital recovery period, "K" Line steadily returned to the building and operation of ships, re-established bases of operation around the world, increased earnings and took other steps to restore corporate strength and vibrancy. 1962-1967 After the merger with Iino Kisen, "K" Line was newly capitalized at ¥9 billion and controlled a fleet of 104 ships, 55 of which were also owned by "K" Line. The merger gave "K" Line a solid foundation to advance dynamically into the future both as one of the world's largest shipping lines in terms of fleet size and as a well-balanced, integrated organization. 1971 K Line opens International Transportation Service, a container terminal company in the Port of Long Beach. 2007 K Line Offshore AS was founded in Arendal, Norway in October 2007 as a subsidiary of K Line to provide offshore support services to oil and gas fields. They have commissioned new ships suitable for oil and gas fields in ultra-deep water, harsh environments and/or remote areas. They operate the following ships:     

KL Arendalfjord - Delivered 24 October 2008 KL Brevikfjord - Delivered 24 September 2010 KL Sandefjord - Delivered 7 January 2011 KL Brisfjord - Delivered 13 January 2011 KL Brofjord - Delivered 5 April 2011

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OCEAN NETWORK EXPRESS Background: On Monday 31 October 2016, Kawasaki Kisen Kaisha - K Line, Mitsui OSK Lines (MOL) and Nippon Yusen Kabushiki Kaisha (NYK) agreed to merge their container shipping business via establishing a completely new joint venture company. The integration included their overseas terminal activities. The new Company started trading from 1st April 2018. The new joint venture company, operating under the name “Ocean Network Express”, has holding company office in Tokyo, global headquarter in Singapore and regional headquarters in United Kingdom (London), United States (Richmond, VA), Hong Kong, and Brazil (Sao Paulo)

Company profile after merger: The company slogans are “As ONE, we can” “All routes lead to ONE”, and “We are ONE”. These are clearly related to the fact that the company originated from three different entities, that were merged into a new single organisation. Despite all three lines being Japanese, each developed a different culture and strategy in doing shipping business in the over 100 years since their founding, focusing on different areas, both commercially and geographically. By combining their container arms, the new company was not expected to just be the sum of the three separated well established shipping networks, but a new stronger maritime player created from scratch, that can actually strive and grow in an extremely competitive market, where lines are constantly fused, acquired or terminate their activities due to unsustainable operating cost

Ocean network express: Trade name

Ocean network express. PTE. Ltd. (one)

CEO

Jeremy Nixon

World ranking

6th position

Location

Singapore

Date of establishment

July 7th 2017

Business domain

Container shipping business (including worldwide terminal operation except for japan).

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EMERGENCE OF NEW POWER 

Japanese lines Kawasaki Kisen Kaisha (K Line), Nippon Yusen Kabushiki Kaisha (NYK), and Mitsui O.S.K. Lines (MOL) will jointly operate as the Ocean Network Express (ONE). ONE will begin its services on April 1, 2018.



Stakes in the joint venture are divided by carrier size, with NYK, owning fleet capacity of 592,000 TEU, at 38%, and K line and MOL at 31% each, with capacities of 358,000 and 491,000 TEUs, respectively.



The container businesses of K Line, MOL and NYK will operate under the trade name Ocean Network Express (ONE).



Statement after merger: “The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, consolidation and enhancement of the three companies’ global network and service structures.”



The JV will integrate K Line, MOL and NYK’s container shipping businesses, including global terminals (not in Japan), propelling the new entity into sixth place in the global rankings with a capacity of around 1.4m teu and an approximate 7% market share.



The largest carrier of the trio, NYK, with a fleet capacity of 592,000 teu, will have a 38% stake in ONE, with K line (358,000 teu) and MOL (491,000 teu) each having 31%.

Primary function for ONE: The merger between the three Japanese shipping giant will help to reduce costs by cutting out duplicated sailings. The bankruptcy of Hanjin Shipping in August 2016 is the biggest ever in the container shipping sector, underscoring the depressed state of the industry severely weakened by excessive capacity and poor earnings. Global carriers have responded to the crisis by way of mergers and consolidation. France’s CMA CGM completed its acquisition of Singapore’s Neptune Orient Lines (NOL), which owns APL. The merger of Hapag-Lloyd and UASC is expected to bring about improvements in their profitability and achieve lower transport costs per container. China’s state-owned giant shipping conglomerates, China Ocean Shipping (Group) Company and China Shipping (Group) Company, had merged to form China Cosco Shipping Corporation (Cosco Shipping), in an attempt to streamline the businesses and better utilise resources. Ben Hackett, founder of maritime shipping consultancy Hackett Associates, said that the benefits of Ocean Network Express vary, depending on the perspective of the stakeholder. “From a shipper, or beneficial cargo owner perspective, this will take more 16

competition away,” he said, “but on the carrier side, they said it creates more [strategic] rationale, gets rids of potential excess capacity, and creates a more unified company. It does not impact pricing, except that there will be a unified pricing structure for one company instead of three.” In a recent statement, the member carriers Hapag-Lloyd, Ocean Network Express and Yang Ming said: “After one year of cooperation we are proud to say that our services and the network improved significantly. The business is well on track in operational terms and with the delivery of several new big ships we are able to serve our customers even better.” The comprehensive network of 33 services is connecting more than 81 major ports throughout Asia, North Europe, the Mediterranean, North America, Canada, Mexico, Central America, the Caribbean, Indian Sub-Continent and the Middle East with fast transit times and a wide range of direct port-to-port-connections.

Business model: The alliance is intended to provide 34 services, directly calling at 81 different ports on a regular and continuous basis, of which 19 in Asia Far East (7 in China, 5 in Japan), 3 in the Indian subcontinent, 7 in Middle East and Red Sea, 24 in Europe (7 in North Continent, 14 in the Mediterranean Sea), 21 in US and Canada, 7 in Central America and Caribbean. An extensive transhipment network shall provide connections to all the other required destinations. 250 ships are planned to be deployed to cover above services, including shuttle, loop, pendulum and dedicated trades, a few unique and tailor made not offered by any other shipping line so far.

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SCOT analysis : A scan of both internal and external environment of the organisation is very much impotant for the part of strategic plannning process. Environmental factor internal to the firm usually can be classified as strengths(S) or challenges (C). The environmental foactor those external to the firm can be classifes as opportunities (O) or Threata(T). This analysis of strategic environmet Is very efficitive and is reffered as SCOT analysis. The scot analysis provides information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates.

SCOT analysis frame work:

Environmental scan

Internal analysis

Strenghts

External analysis

Challenges

Opportunities

Threats

Strengths: A firm’s strenghts are its resources and capabilities that can be used as a basis for developing a competitive advantage.

Challenges: The absence of certain strengths may be viewed as a challenges. Opportunities: The external environment analysis may revel certain new opportunites for profit and growth. Threats: Changes in the external environmental analysis may present threats to the firm.

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Advantages of SCOT analysis  













Helps firm conduct an internal analysis – For growth, the most important factor is to analyse yourself. SWOT analysis does exactly that for any firm. Helps the firm improve upon its challenges – A firm uses creative ways and feedbacks to find out all weaknesses about itself. This is the step 1 of any improvement exercise – to find out ways that you can improve. Helps in strategy and Decision making – Because SCOT analysis focuses on all different aspects of an organization, it can help with quick decision making and also helps in strategy. Determines threats which need to be acted on – SCOT matrix helps analyse the threats to the brand or to the company. This with combination of weaknesses, gives strategies which can be acted upon to make the organization even more competitive. Can help decide short term and long term objectives – There many be many plans that the company wants to implement. But deciding which plans are the priority and which can be implemented later is the job of SCOT analysis. Helps understand barriers to growth – There are numerous barriers which a firm has. SCOT analysis helps pin point these barriers and threats which can be overcome to explore more opportunities. Helps in adjusting strategy – It is not necessary that every plan of an organization will be successful. The company might have to keep adjusting its strategies based on results. With a proper SWOT in place, the company can adjust after looking at its strengths and weaknesses and keep adjusting until it mitigates threats or conquers opportunities. Paves the way forward – Strategy involves elimination of all alternatives and determining which is the best way forward. In such decision making, SCOT is the perfect tool as it helps in elimination of goals and objectives which are not achievable for the company thereby leaving the objectives which can be immediately pursued.

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Scot analysis of NYK: Strengths ,challenges, threats and opportutines faced by the nyk line in accordances with the world market. Strenghts

1. Operating in 36 countries. 2. Owns total 980 vessels. 3. Provides solutions tailored to customers’ needs by integrating different types of infrastructure. 4.Sheer diversity of infrastructure. challenges 1. Decreasing revenues and operating income 2. Lesser known than its global competitors Threats 1. Fluctuations in currency exchange rates 2. A major shipping accident 3.Changes in overall shipping and freight markets Opportunities 1. Minimize impact of market volatility by decreasing the large procurements required for maintaining a fixed vessel fleet over a long term 2. Strengthen sales capabilities 3.Increasing customer base and capabilities through acquisitions Competiator 1. MSC 2. Evergreen 3. Hapag - lloyd 4. Marske 5. CMA CGM

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Chapter 3

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Chapter 3 Containerization: Containerization is a type of virtualization strategy that emerged as an alternative to traditional hypervisor-based virtualization. As with the latter, container-based virtualization involves creating specific virtual pieces of a hardware infrastructure, but unlike the traditional approach, which fully splits these virtual machines from the rest of the architecture, containerization just creates separate containers at the operating system level. Container ships, rail transport flatcars, and semi-trailer trucks without being opened. The handling system is completely mechanized so that all handling is done with cranes and special forklift trucks. All containers are numbered and tracked using computerized systems. Containerization originated several centuries ago but was not well developed or widely applied until after World War II, when it dramatically reduced the costs of transport, supported the post-war boom in international trade, and was a major element in globalization. Containerization did away with the manual sorting of most shipments and the need for warehousing. It displaced many thousands of dock workers who formerly handled break bulk cargo. Containerization also reduced congestion in ports, significantly shortened shipping time and reduced losses from damage and theft.

Container loading type: 

Full load container

 Less –than container load. Full load container: A full container load (FCL) is an ISO standard container that is loaded and unloaded under the risk and account of one shipper and only one consignee. In practice, it means that the whole container is intended for one consignee. FCL container shipment tends to have lower freight rates than an equivalent weight of cargo in bulk. FCL is intended to designate a container loaded to its allowable maximum weight or volume, but FCL in practice on ocean freight does not always mean a full payload or capacity - many companies will prefer to keep a 'mostly' full container as a single container load to simplify logistics and increase security compared to sharing a container with other goods.

Less –than container load: Less-than-container load (LCL) is a shipment that is not large enough to fill a standard cargo container. The abbreviation LCL formerly applied to "less than (railway) car load" for quantities of material from different shippers or for delivery to different destinations carried in a single railway car for efficiency. LCL freight was often sorted and redistributed into different railway cars at intermediate railway terminals en route to the final destination. LCL is "a quantity of cargo less than that required for the application of a carload rate. A quantity of cargo less than that fills the visible or rated capacity of an inter-modal container. It can also be defined as "a consignment of cargo which is inefficient to fill a shipping 22

container. It is grouped with other consignments for the same destination in a container at a container freight station".

Issuse: Hazards Containers have been used to smuggle contraband. The vast majority of containers are never subjected to scrutiny due to the large number of containers in use. In recent years there have been increased concerns that containers might be used to transport terrorists or terrorist materials into a country undetected. The US government has advanced the Container Security Initiative (CSI), intended to ensure that high-risk cargo is examined or scanned, preferably at the port of departure.

Empty containers Containers are intended to be used constantly, being loaded with new cargo for a new destination soon after having been emptied of previous cargo. This is not always possible, and in some cases, the cost of transporting an empty container to a place where it can be used is considered to be higher than the worth of the used container. Shipping lines and container leasing companies have become expert at repositioning empty containers from areas of low or no demand, such as the US West Coast, to areas of high demand, such as China. Repositioning within the port hinterland has also been the focus of recent logistics optimization work. However, damaged or retired containers may also be recycled in the form of shipping container architecture, or the steel content salvaged. In the summer of 2010, a worldwide shortage of containers developed as shipping increased after the recession, while new container production had largely ceased.

Types of containers and its specification Each cargo has specific requirements for the containers used for transportation. The several types of containers are specially designed for those requirements. It is a responsibility of the shipper to ensure, that transportation requirements of your cargo are fulfilled, i.e. to make sure the goods are packed and stowed in the right container and safe conditions and he must inspect it previously for the effect. Depending on various factors, dimensions and capacity of each container of same type may be slightly different. The maximum payload of each container furthermore depends also on legal road limitations and/or on the handling capacity of all ports in all countries crossed between Origin and Destination. The containers are used for carrying different types of cargo.The container are divided into ,     

General purpose containers (GP) and high cube (HQ) Open top container Reefer container Flat rack container Tank container 23

General purpose container (GP): Dry storage container: This type of container is for general cargo. General cargo should not be over-length, overwidth, over-height, over-weight, or in bulk. Containers are constructed of steel for sturdiness and ease of repair. 45ft containers are not generally available in all the trades that NYK operates. The most commonly used shipping containers; they come in various dimensions standarized by ISO. They are used for shipping of dry materials and comes in a size of   

20 ft 40 ft 45 ft

Flat rack container: Flat rack container is a collapsible side , these are like simple storage shipping container where are the sides can be floded so as to make a flate rack for shipping of wide variety of goods. Flate racks are best suited for storage of heavy lift, over-height or over width cargo.

Open top container : Open top container is a convertible top that can be completely removed to make an open top so that materials of any height can be shipped easily. Open top container is covered with a removable, waterproof tarpaulin that can be securedd with ropes. The metal beam above the door can be dismantled from the container. This type of container is suitable for over –height or lengthy cargo.

Refrigerated ISO containers: These are the temperature regulated shipping containers that always have a carefully controlled low temperature. They are exclusively used for shipment of perishable substances like fruits and vegetable over long distances. This refrigeration unit is built onto the nose of the container and power is provided by a motor generator (when the container is on wheels), by terminal (when grounded in a yard) or by the ship (when laden on board).

Tank container: The tank conntainer is a shipping container specifically desinged for the safety of house liquid cargo and gasses. There are generally two kinds of tank shipping container,food grade containers, which are suitable for drinking water,plant olis, or milk. Chemical tank containers that are used to house chemical, flammable or corrosive substance.

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Chapter 4

25

Chapter 4 Departments In NYK- lines: NYK –lines are having various departments for there shipping process. The major departments that is effiecently working for the development of the shipping company are as follows,     

Sales department Customer services department Operation department Export documentation department Import documentation department

These all departments will have different roles in the organisation, that will help in finding new customer and also making good relation with the exisiting customer.

Customer services

SALES NYK Documentation

Operations

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SALES DEPARTMENT A sales assistants job, including their routine daily duties, Greeting customers, be involved in stock control and management. Assisting the customer services and operational team to find the services they are looking for. Being responsible for processing cash and card payments, that is either prepaid services or In any organisation, the sales department plays a pivotal role in the success of the business. The unique and important role of sales is to bridge the gap between the potential customer’s needs and the services that the organisation offers that can fulfil their needs. Here are some of the key ways in which sales impact the organisation’s success. Having a strong sales team is crucial to the success of a company because the sales department is responsible for making sales, growing business and retaining existing customer. Since sales department play role as a link between customers and product or service a company offers, the most important function of sales department is maintaining relationships with the customers. Since in NYK the management system is objective based, higher authorities set goal to be achieved by the department and sales department through their hard work achieve the target.

Basic functions that sales department perform are:   

Sales lead conversions Business growth Customer retention

Sales Lead Conversions As mentioned before, salespeople bridge the gap between customer needs and the product/service that fulfils that need. Often, salespeople are dealing with already warmed up prospects who have an existing awareness of the company through marketing and advertising efforts, and it’s the job of the salesperson to close the pppdeal by introducing further information and helping the customer make those connections. Because sales people interact directly with the potential customer, they have the advantage of being able to glean personal knowledge that will aid them in delivering their sales pitch and tailoring their offerings to their audience. This is often an attractive aspect for customers, as they may view the salesperson as the expert, which builds credibility and therefore trust.

Business Growth Sales play a key role in the building of loyalty and trust between customer and business. Trust and loyalty are the main reasons why a customer would choose to recommend your company to a friend or family member, or write a great review of your service online. Recommendations and reviews have always been valued by prospects and customers, as they come from a third party and the perception is that the reviews and recommendations are 27

independent of the seller and therefore carry more credibility. In the digital age, they are extremely influential, due to the reach and power of social media and online media. During sales interactions, encouraging the customer to recommend a friend or give positive feedback can have an impact on the growth of the business through increased brand awareness and sales.

Customer Retention Selling is a personal interaction between one human and another, which is a powerful thing. Never under estimate the personal connection between two people, and the potential effect this can have on your brand’s reputation. Excellent salespeople are those that not only make the sale, but create a long-lasting impact on the customer. Long term customer relationships lead to repeat custom, referrals and increase the brand’s reputation by word of mouth. One of the keys to customer retention through sales is to perform sales follow-ups. Setting up after-sales calls or meetings is a great way to maintain and build a positive relationship and gives the customer an opportunity to feedback their experience of the service. In conclusion, the power of sales in the continued success of an organisation is not to be underestimated or underused. Take advantage of the impact sales can have, not only on revenue but on brand reputation, long term customer retention and business growth.

Sales procedure Data collection Since for starting an export import business all the importers and exporters data will be gathered by Chamber of Commerce. Therefore first and foremost step taken in sales process is collection of information about exporters and importers either from them or by other means.

Conversion of data into useful information Only collection of is not enough. Sales department’s one of the main functions is to understand the pattern and trend and find out the potential customers.

Building relationship Once the potential customers identified next step is to approach them collecting information about their expected price, goods to be export, destination etc. And any other special requirement that customer may need. For this purpose sales department fix a meeting with the key people of logistics firm or directly exporters and understand their requirement and project a good image of company in the eyes of customers.

Negotiation with price fixing team 28

After collecting the information from customers the next step is to negotiate demand of customers with the price fixing authority. Sales department is the key link between customer and price fixing authority (based in Singapore) and inform the authority about the price demand of customer. PR team check with the price possibilities and give conformation to the sales team.

Negotiation with customers Once sales team get price from PR team same has to be negotiated with the customer to convert into sale.

Generation of contract number Once customer agrees to price sale team will file the rate which generates a contract no and is sent to the customer with which is useful for further proceedings such as booking and customer is asked to execute booking through company’s website. The moment customer create booking work of customer service department begin.

Customer services An efficient customer service department is able to resolve customer issues quickly and create a high level of satisfaction. Part of what makes a customer service department efficient is the implementation of good customer service procedures and processes. Create sensible procedures, and develop a training program that helps your associates learn to use these techniques and adapt to customer needs.

Key point the customer service people keep in mind Know their customer An efficient customer service department is able to resolve customer issues quickly and create a high level of satisfaction. Part of what makes a customer service department efficient is the implementation of good customer service procedures and processes. Create sensible procedures, and develop a training program that helps your associates learn to use these techniques and adapt to customer needs.

Serve Your Customer's Need Customer service is "We start with what the customer needs and work backward." It's easy for a large, successful company to develop a mindset where all the good ideas start within the company. But according to NYK everything begins with the customer and what they need.

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Never

Settle for 99-Percent Customer Satisfaction

Many companies approach customer satisfaction statistically, aiming for "above average" customer satisfaction metrics. NYK sees it differently, and believes that the aim should always to achieve for 100-percent customer satisfaction.

Process under customer services Step 1: Customer service desk will help the customers in booking process. Since it is online booking process customer service team will guide the customers to place their booking. Booking creation will required the following details such as name of the vessel, transit port, destination port, vessel arrival time and date. Step2: Once the booking process is done either by the customer or by the customer service team, their department will release the D\O delivery order or the container release order CRO for the customer. Step 3: The customer service department will inform the vessel schedule to the customer meanwhile the D\O will be sent to the yard operator to release the empty container to the customer. Before the container is taken out form the yard the customer will examine the container and will request for change of container if there is any damages spotted in the container during the time of examine. Step 4: Once the container is taken out from the empty yard the movement report will be updated to the shipping line. The movement report will carry the container number. So this will help to find which container is taken by the customer and the same will be updated in the booking id. Step 5: Once the booking is done the customer service will be updated with the number of container the is customer is going to export. Accordingly the customer service team will reserve space for the number of container the customer booked. This space reservation is done for the mother vessel.

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Services that provided by NYK:       

Europe –AET North America –TPT Far east –LAT Oceania –OCT (AUS&NZ) Africa –AFT South America –LAT ME-LAT

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EXPORT PROCESS Step 1: Obtaining export order The shipper will make a contract with the consignee, after the contract is conformed the shipper will approach the shipping lines or the customs house agents to move his cargo to the consignee.

Step 2: Fixing rate The custom house agent will contact the sales department of the shipping lines and they will negotiate the rates according to the destination port and will fix the credit days .The sales team will check the availability of container in the empty yard and they will take the booking.

Step 3: shipper and cargo details Once the rate and credit days is fixed by the sales department with the availability of the container the custom house agents will provide the details about the cargo they have to send like, 1. 2. 3. 4.

Type of cargo Weight of the cargo Date of shipment Destination port

Step 4: Booking container and survey the container Once the conformation is given by the sale department with respect to the above details provided by the custom house agent, the (CHA) will approach the customer services for the booking procedure of the container. The booking can be done directly by the custom house agents by online booking or with the help of customer service the y can book there container. Once the booking is done by the (CHA) the shipping line will issue the booking order number (B/O) to the custom house agents.

Step 5: Collecting empty container After the generation of B/O by the shipping lines, the custom house agent will go to the shipping line to collect the sez-04 form .After collecting the sez-04 the custom house agent will go the dock to take the empty container. SEZ - 04 will help to move the empty container out from the empty yard to the consignee place. Before taking the empty container the custom house agent will survey the container in the empty yard with the help of surveyor. Once they are satisfied with the container only they will take it out from the empty yard.

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Step 6: Stuffing container While the empty container is taken out from the empty yard, the shipping line seal will be provided to the custom house agent .The CHA will get the container and container seal from the yard people and he will move to the shipper place for stuffing the cargo in the container. Once the container is reaching, the shipper will stuff the cargo in the container for the shipment.

Step 7: Custom inspection The shipper will apply for the custom inspection with the custom authority. Once the cargo is stuffed in the container the custom inspection will be done by the custom inspector. After the inspection is done, the container will be sealed with the help of shipping line seal and customs seal.

Step 8: VGM After stuffing the cargo, the container will undergo the VGM (VERIFIED GROSS MASS) this will help to measure the weight of the container with the cargo.

Step 9: Moving the cargo to terminal Once the container is weighted from the authorized weigh machine operator it is ready for the shipment. The custom house agent will take the container inside the terminal with the help of SEZ-04. The sez-04 form contain the details like Vehicle no, Line name, Shipper name, Container number, Seal number, Cargo type, IGM number, Vessel name etc. Once the container enters into the terminal, the container will be arranged in the particular dock for loading in the ship.

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Documents and forms involved in export process The major documents and forms that are used during the export process are as follows 1. 2. 3. 4. 5. 6. 7.

Bill of lading Seaway bill Cut off form Automated manifest system VGM EGM SEZ-04 form

Bill of lading: Bill of lading is a document issued by a carrier or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination. The bill of lading contains information like      

Consignor’s and consignee name Name of the ports of departure and destination Name of the vessel Date of departure and arrival Marks and number of packages Freight rate and amount

Types of bill of lading A bill of lading may be issued in house bill of lading, Master bill of lading or Received for shipment bill of lading.

House bill of lading: A house bill of lading (HBL) is a document created by an ocean transportation intermediary (OTI) such as freight forwarder or non- vessel operating company (NVOCC). The document is an acknowledgment of the receipt of goods that are to be shipped. It is issued to the supplier once the cargo has been received. HBL includes the name and address of the supplier, who delivers the shipment to the freight forwarder, and the consignee, who the freight forwarder deliver the shipment to. The document also includes specific information about the items shipped and the value of the shipping contract.

Master bill of lading: Master bill of lading (MBL) is a document created for shipping companies by their carriers as a receipt of transfer. A (MBL) summarized the contents of a shipment including the bill of lading number assigned to the various items within the shipment, as well as a description of 34

the freight under each bill of lading. The document also includes the terms for transporting the freight and the name and address of the consignor, or the shipper, and the consignee, the person whom possess the goods.

Received for shipment bill of lading (B/L): B/L which serves only as a receipt for goods accepted for shipment on a named ship (vessel), and does not certify their placements aboard the vessel. Used where the goods arrive at the port of departure before the vessel does, this type of B/L is not considered a complete B/L and is replaced by a shipped on board bill of lading when the goods do go on board.

Seaway bill: A Sea Waybill is a transport contract (contract of carriage) - the same as a Bill of Lading. A Sea Waybill, however, is not needed for cargo delivery and is only issued as a cargo receipt. It can either be issued in hard copy format or soft copy format. A transport document for maritime shipment which serves as evidence of the contract of carriage and as a receipt for the goods, but is not a document of title. The sea waybill indicates the on board loading of the goods and can be used in cases where no ocean bill of lading and no other document of title is required.

Cut- off date or time: The last possible date cargo may be delivered to vessel or designated point. The last date or time at which export cargo will be received for a particular vessel.

Cut -off time: The latest time cargo may be delivered to a terminal for loading to a schedules ship. The cutoff time closed is the latest time a container may be delivered to a terminal for loading to a scheduled vessel.

Automate manifest system: A computerized system used by the U.S customs and border protection agency (CBP) to more efficiently process import cargo invoice. Different types of agencies, such as carriers, port authorities, service bureaus, and container freight station, can participate in the system.

Verified gross mass (VGM): The international maritime organisation (IMO) has amended the SOLAS (safety of life at sea) convention under regulation 2 of chapter VI which mandates the declaration of the verified gross mass (VGM) of a packed container. As per the regulation, either of the two approved method must be used to declare the verified gross mass:

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Method 1: Real weight of the container including, the tare weight of the container when the container is packed.

Method 2: Addition of whole cargo including, packing and the tare weight of the container.

Export general manifest (EGM): Export general manifest is a legal document mandatory to be filled by the carrier of the goods with the custom department. This document is used by the government authority as a proof of export. The customs officer, certify proof of export on shipping documents to exporters on the basis of EGM. With this EGM the exporter will claim for export benefits along with the other documents like bill of lading as a proof of export.

Sez-04 form: Sez-04 form or form 13 is issued by the shipping line to the shipper or the custom house agent to take the empty container from the empty container yard. And also used to move the container form the CFS to the terminal after the cargo is stuffed.

The following are the details that will be in the SEZ-04 form,           

Vehicle number Driver name Shipping line name Consignee name Vessel name Container number ISO code Cargo type Seal number Delivery order number VGM weight in Kg

Export advance list: Export advance list is prepared by the shipping line that will be handed over to the vessel operator. Before four hours of the arrival of ship to the respective port the container can be enter into the terminal with free of cost. After the arrival of ship to the port, the port authority will collect additional charges per container. But there is no additional charges for ICD containers (INLAND CONTAINER DEPOT).

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Operation department The operations department is the main coordinator among the company’s departments, the charterers, and all third parties involved with the ships. The Operation department is liable for the following tasks:             

Promote and establish an awareness of safety and the need to protect the environment, amongst all fleet operating staff. Ensure that Safe Cargo Operations are established on board (by issuing necessary instructions and procedures as necessary) Ensure that the company’s Cargo related Procedures are effectively implemented on board. Ensure that management objectives are met. Dealing with Non-conformities covered ship and shore operations. Investigate accidents reports regarding safety and insurance. Appraise and appoint the local agents according the past performance or third party recommendations. Monitor day to day operational aspects of each ship and issue instructions to the ships where necessary. Monitor the vessel performance against charter party requirements in co-ordination with the Chartering Department and intervene where necessary. To arrange for the bunkering of the vessels. To monitor freight collection of the company. To send proper voyage instructions to the Master and ensure that the Master is aware and familiar with all C/P terms and important details. To communicate with Charterers whenever it is considered necessary, to ensure that they are satisfied with vessel’s performance and promote Company’s relations with them.

Documents prepared for export by Operation department: The major documents which is perpared by the operation team during the time of export are as follows, 1. 2. 3. 4. 5. 6.

EAL (export advance list) EGM (Export grneral manifest) Pre loading advance list Final loading list Container permite application Container permite cancelllation

EAL (export advance list): EAl is know as export advance list is prepared by every shipping line. In case of Hazardeous cargo or perishable cargo additional document are required.hazardeous cargo declaration form is submitted along with EAL in case of exporting DG CARGO while for perishable cargo reefer manifest list is required to attached along with the EAL . 37

Details included in the EAL are as follows,

1. 2. 3. 4. 5. 6. 7. 8. 9.

Vessel code Operator name Container number Type of cargo Port of loading Port of discharge Exporter name Gross weight Slot operator.

These all are the information that the shipping line will give to the vessel operator. The vessel operator collects the EAL from all the shipping line and combine all the EAl. After combining it the vessel operator will send the list to the terminal operater.

EGM (Export general manifest): Export means, movement of goods from one country to another country. Once the goods crossed territorial border of a country the definition of exports takes place. Carrier of goods moves cargo out of country after completing necessary customs formalities of such country. Once after completion of export customs clearance procedures and before movement of goods, the carrier files detailed information about such moved goods with customs department, in a specified format. This is called Export General Manifest – EGM. Export General Manifest is a legal document mandatory to be filed by carrier of goods wit customs department. This document is used by government authorities as proof of export. The customs officials certify proof of export on shipping documents to exporters on the basis of EGM. With such copies or certificates, exporters claim export benefits based on such document, along with other documents like bill of lading as proof of exports.

Pre loading advance list: The pre loading advance list is perpared by the shipping line before the sailing of the vessel from the port of loading. This list has to be sent to the transhippment port before the arrivel of the vessel. The information attached with the pre loading adavnce list:

1. 2. 3. 4. 5. 6.

Booking number Container number Weight of the cargo Type of cargo POD from the transhippment port Type of container 38

7. Connecting vessel name

Final loading list: Final loading list is the revisied final loading list. There will be chance of last minute of loading container to the vessel. So the shipping line will revise the pre loading list and they will do the required allteration and will send the final loading list to the port.

Container permite application: The shipping line will give the list of container which is imported to the custom authority. Once the permite is given by the custom authority, the shipping line willl get the container permite number. This container permit number will be generated by the custom authority. This container permite will be valid for six month, with in this time period they shipping line should re-export the container. The shipping line has the facility of increacing the validity period. This can be done by sudmitting the particulars of the container to the customs authority.

Procedure of getting container number: The shipping line should make a continutity bond with the custom authority. Generally the bond is made for one year. This is done mainly for the movement of the container.

Container permite cancellation: The container permite is cancelled by the shipping line once the container is re-exported.

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IMPORT PORCEDURE Roal of customs in import process: The Customs (Control & Management) Act includes many provisions which authorise Customs Officers to exercise control over goods and conveyances in which goods are imported. Similarly other governmental agencies administer laws that impact on the movement of goods across the borders. The procedures outlined below are based on the Customs Act and other related legislation. Importers, brokers, agents and other persons involved in the importation of goods are expected to comply with those administrative and regulatory requirements: Arrival of Goods (Part IV of the Customs Act)  Goods are imported into either by air or sea and the means of conveyance (aircraft or vessels) are subject to control by two agencies – Customs and the Port Authority.  Aircrafts submit the cargo manifest to Customs and Port Authority upon arrival as part of the general declaration.  In the case of a vessel the Master or Agent gives notice to Customs and Port Authority at least one working prior to arrival. An advance copy of the cargo manifest is also provided to the Port Authority at that time.  Vessels are boarded upon arrival by Customs and a Vessel Report (including a cargo Manifest) is submitted to Customs before the discharge of cargo. Storage of cargo Vessels  Cargo is discharged from the vessel and a proper account (tally) is taken by the Port Authority and the Agent.  Goods are generally imported in returnable containers which may be either FCL or LCL.  Containers will be stored Container Storage Area pending release by Customs.  Cargo is placed in marked locations for easy retrieval and subsequent inspection by Customs.  The importer is notified by or seeks information about the arrival of his/her package(s) from the local representative or agent of the shipping line.

Import process: Step 1: preparation of IAL Once the fedder operater is informing the arrivel of the vessel, the import depatment will prepare IAL and the same will be submitted to the head office.. 40

Step 2: Once the head office recevies the IAl (IMPORT ADVANCE LIST) they will prepare the IGM (import general manifest). After preparing they will send it to the import department fedder operater. The fedder will collect all the IGM list from all the shipping llines and the same will submitted to the customs to get the IGM number. Details in IAl :    

consignee name container type container number type of cargo

with this details the import documentation department will prepar the IAL.

IGM: Once before arrival of cargo at destination port, the carrier has to file the details of cargo arriving to such port of importing country with the Customs. The filing of such details of cargo is called IGM filing (Import General Manifest filing). The procedures to file IGM (Import General Manifest) are done by the carrier of goods or his agent. Normally IGM is filed on the basis of Bill of Lading , issued by the carrier. The IGM Import General Manifest contains the details about shipper, consignee, number of packages, kind of packages, description of goods, bill of lading number and date, vessel details etc. Once after filing Import General Manifest, the importer or his customs broker files necessary documents for import with customs under the said imported goods. This filing is done on the basis of Import General Manifest (IGM) information filed by the carrier on arrival of goods. If any mistakes in filing Import General Manifest, the import customs clearance documents cannot be accepted, as the details of such documents has to be matched with the details in Import General Manifest (IGM).

Container permite number : Container permite number will be generated by the customes department. to the shipping line.

That will be sent

Step 3: Once the ship arrived the consignee will come with the bill of lading and with a bond. The bond is the guarantee that if there is any damages in the container the consignee or the CHA will be response. Step 4: The payment is done by the consignee either by checque ,cash, DD orRTGS. Once the payment is recevied only the import department will give the DO. Movement form is use to take the container out from the terminal to the CFS. 41

Step 5: 5days is the free time given by the terminal that the conta iner can be kept in the terminal. More then 5 days the line will collect detention charge. Step 6: There are different time trail to replace the unstuffed container back to the C/Y. period will be 14 days , 21 days.

Documents required for import customs clearence: Bill of Entry: Bill of entry is one of the major import document for import customs clearance. As explained previously, Bill of Entry is the legal document to be filed by CHA or Importer duly signed. Bill of Entry is one of the indicators of ‘total outward remittance of country’ regulated by Reserve Bank and Customs department. Bill of entry must be filed within thirty days of arrival of goods at a customs location. Once after filing bill of entry along with necessary import customs clearance documents, assessment and examination of goods are carried out by concerned customs official. After completion of import customs formalities, a ‘pass out order’ is issued under such bill of entry. Once an importer or his authorized customs house agent obtains ‘pass out order’ from concerned customs official, the imported goods can be moved out of customs. After paying necessary import charges if any to carrier of goods and custodian of cargo, the goods can be taken out of customs area to importer’s place.

Commercial Invoice: Invoice is the prime document in any business transactions. Invoice is one of the documents required for import customs clearance for value appraisal by concerned customs official. Assessable value is calculated on the basis of terms of delivery of goods mentioned in commercial invoice produced by importer at customs location. I have explained about the method of calculation of assessable value in another article in same web blog. The concerned appraising officer verifies the value mentioned in commercial invoice matches with the actual market value of same goods. This method of inspection by appraising officer of customs prevents fraudulent activities of importer or exporter by over invoicing or under invoicing. So Invoice plays a pivotal role in value assessment in import customs clearance procedures.

Import Bill of lading: Bill of lading under sea shipment is carrier’s document required to be submitted with customs for import customs clearance purpose. Bill of lading issued by carrier provides the details of cargo with terms of delivery.

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Chapter 5

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Chapter 5

SUGGESTION

 Operation with other logistical providers need to be enchanced futher for operational effectiveness; more focus should be given to customer delight and cost effectiveness.  Quality of service can be further enchanced to increase customer delight.  Container handling and service need to be followed in the same way and can be futher enchanced with more support. This can be achived by proper guiding of employee and other workers in the shipping area.  The company has to make good promotional strategies to over come the other players in the market.  Coordination between department need to be more effiectively communicated.  Organization can futhure strengthen tehe employee’s strenght in the documentation . This can lead to futher raidity for operation.

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CONCULSION

The internship training provided me with an opportunity to widen my knowledge in the field of operation department. I was able to understand the functions, process and problems that are faced by the management in day to day shipping liner ogranization. I wholeheartedly thank the NYK shipping lines india Pvt.Ltd and its employees for giving me such an opening, guiding me through the internship and helping me to complete the program successfully. The NYK shipping industry is one such industry that is rapidly growing throughout the world. With stiff competition around the company is likely to reduce the profitability but with proper management of operations and by proper customers desired service, and also effective utilizing its alliance it can maintain and improve the performance. The organization has enormous opportunities to grow beyond the expectation.

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