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How a global freight forwarder simplifies its shipping experience in covid-19

BDP is not limiting itself as a logistics provider, we are a solutions provider to a customer having supply chain processes being part with an end to end visibility and freight forwarding is one of the supply chain activities in the processes.

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How a global freight forwarder simplifies its shipping experience in covid-19. Image: BDP International
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BDP International, India Managing Director Pavithran M Kallada in an exclusive interview with Freightcomms to capture his thoughts on the situation of the logistics industry and the fast adoption of technology. 

What are your views on global digital freight forwarding? Is the launch of  BDP GO a stepping stone for BDP to change as a digital freight forwarder? 

Digitization is not anymore as a buzzword, but it is a reality and that’s a compulsion today in the new environment for a business to go forward. BDP has always embraced digital initiative in logistics years before and we were among the early adopter of technology in supply chain services which digitally interface with our various stake holders externally and internally both of our internal and external stakeholders . When I talk about digitization we started as a phase from internal and then externally to certain way I won’t be wrong even stating that bit earlier than the market fully ready but today it is the market which began demanding or probably heading ourways.

BDP has its customer facing technology such BDP Smart®, SMART Vū® which have been well integrated with our customers and provides them an end to end visibility.  It is not in the form of just track and trace but also giving a customer tool which enables them to analyse their business and supply chain milestones and key components which enable them to make decisions faster. 

The launch of BDP GO will take us to the next level wherein customers can have one click international freight shopping 24×7. BDP GO also enables instant and transparent freight comparison, booking, and tracking until cargo delivery to final destination. 

BDP GO streamlines and simplifies the shipping experience for our customers, while still maintaining the high level of service that BDP stands behind. There are many digital apps on the market, but BDP GO takes it a step further by integrating the operational components to enable a customer end to end visibility from the freight procurement till the executions and delivery combined. 

The key objective of BDP GO is to enhance and simplify the entire shipping experience and GO and establish BDP as a future generation freight solution company. 

As a Global Freight Forwarding Co what is BDP’s business strategy in this global pandemic situation?  What are views on paperless bill of lading and how do you think it will help businesses scale up and will BDP adopt the e-bill service for its customers?

BDP is not limiting itself as a logistics provider, we are a solutions provider to a customer having supply chain processes being part with an end to end visibility and freight forwarding is one of the supply chain activities in the processes. So that in mind BDP India has similarly operated a global system. One system, is our strategy. 

We have integrated with various stakeholders in the system of a customer to have an end to end visibility. That’s in terms of domestic logistics as well as international shipping with a combination of Air Freight and Ocean Freight. BDP understands the new way of doing business in this changing environment and we are focused on giving our customers a self- service capability in a way that they can transact electronically and do the data transmission digitally.

BDP is basically integrating with our customers to manage the show. As soon as the orders are ready we are then  in a position to take and dispatch all planning components then digitally book the shipment with carriers – and all of this can be done with a digital interface in the system.

We are making it a complete digital experience for our customers. As we are already operating on cloud- based platforms we can function remotely and we have already adopted the functionality of working from home with this new changing situation due to Covid-19 

The blockchain adoption process has already started in the US and soon we can see the implementation happening in India as well. That will add value to our entire digital ecosystem.

As BDP is a key player in the chemical industry, with the increasing incidence of the container ships caused by  chemical cargoes do you think Freight Forwarders need to change the DG Cargo handling strategy?

BDP has a strong base of global customers and we have a specialization in handling chemical shipments. The chemical handling needs high levels of compliance and DG handling which is why we also have a DGR training process for our employees for chemical processing. 

Dangerous Good handling is very critical and we are making sure that the cargo handling is done with a deep level of  knowledge, expertise and compliance ethics. Chemical shippers should be aware and made aware of the changing international trade compliances and rules to reduce the number of incidence at sea. 

How is the company managing the operations of the business considering the lockdown in India?   

BDP fundamentally believes that our people are our asset. With our process, technology and business model. Throughout the entire process of business continuity planning, we knew our number one priority remains the safety and well-being of our teams. We established our BCP with this in mind, and once adopted in February and we were also able to have an interface of stakeholders related to customs, ports and carriers.

We managed to prepare our workforce to keep them mentally prepared with the reality of the situation and also, we made necessary arrangements to work in line with the government guidelines to keep the operations running smoothly. We made PPE kits available for the field operations at a no compromise on safety rule and social distancing guidelines. 

As a global player in logistics did the company experience any sort of blocks in the movement of goods globally ?  

Yes, I would put this in Indian context as my area of responsibility, we have experienced the disruption of COVID-19 19 at the initial stage of the pandemic say April and May as the country was under full lock down leaving apart the essential services and industries (of course, logistics remained as an essential service) . However, as the ease in lock down began and more industry started operating in June could see the momentum shaping up.

The labour which eluded the workplace and industry belt started coming back as well as warehouses, CFS and port were fully operations we could see the shipments moving since June. However, the consumption impact is still persistent in the market and many factories are still holding inventories since the retail market, shopping mall etc still not fully operational and until consumption pick up, we could see this trend to continue. We have seen slowly the manufacturing companies starting the production and export shipments which were struck earlier now being shipped out.

Further we also seeing many manufacturing company gradually ramping up the production in India as an alternate to China for many of the products however it all depends up on India’s capability to quickly adopt and make ourselves to be competent and competitive for the global markets in terms of consistent supply. 

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Freight Forwarding

Kuehne+Nagel acquires South African freight forwarder Morgan Cargo

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Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
Kuehne+Nagel acquires South African freight forwarder Morgan Cargo. Image: Kuehne+Nagel
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Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading South African, UK and Kenyan freight forwarder specialised in the transport and handling of perishable goods. During 2022 the company handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts.

The acquisition of Morgan Cargo ideally complements Kuehne+Nagel’s perishables logistics service offering, while improving connectivity for customers to and from South Africa, the UK and Kenya, which includes state-of-the-art cold chain facilities.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “With Morgan Cargo, we acquire a reliable logistics service provider for the benefit of our customers. Expansion in high-growth markets such as Africa clearly ties into our Roadmap 2026 and reinforces our commitment to the Middle East and Africa Region. We have been active in Africa for many years, but this acquisition is an ideal addition to our regional presence.”

Schalk Bruwer, CEO of Morgan Cargo, added: “We wanted to expand our successful family-owned business and took the opportunity to become part of one of the world leaders in logistics. This new development will provide greater opportunities for our customers in terms of global reach and allow our team to advance their careers beyond the realm that was previously possible. Morgan Cargo is extremely excited to become part of Kuehne+Nagel.”

Closing of the transaction is expected during the third quarter of 2023 and is subject to customary closing conditions, including clearance by the competent merger control authorities.

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Freight Forwarding

Yusen Logistics partners with Toyota Motor to accelerate decarbonization

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Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
Yusen Logistics partners with Toyota Motor to accelerate decarbonization. Image: Yusen Logistics
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Following on from last week’s press release Toyota to decarbonise its logistics activities in Europe, Yusen Logistics Europe partners with Toyota Motor Europe in this proactive approach to alternative powertrain development.

Together with VDL Special Vehicles, Yusen Logistics is honored to be part of the team to help accelerate the decarbonization of Toyota’s logistics network with the use of hydrogen fuel cell trucks. Using Toyota’s fuel cell modules VDL will convert an existing vehicle into a zero-emission truck for Yusen Logistics to operate within Toyota Motor Europe’s logistics network.

The innovative technology project is a significant step towards reducing both companies’ overall carbon footprint and aligns with Yusen Logistics’ wider commitment to working together with our partners and communities towards a more sustainable future.

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Freight Forwarding

cargo-partner becomes part of Nippon Express Group

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cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
cargo-partner becomes part of Nippon Express Group. Image: Cargo Partner
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As cargo-partner is celebrating its 40th anniversary, company owner and founder Stefan Krauter has decided to sell the Austrian global logistics player to Japanese stock-listed Nippon Express Holdings, which is also the parent company of Nippon Express, APC, Franco Vago and others. Having started operations in 1983 with only five employees at Vienna Airport and having developed the company almost completely organically to now 4,000 employees in 40 countries around the globe, Stefan Krauter had already passed on the baton to his management and now has also passed over ownership to his “ideal successor” NX.

After exceeding the billion euro mark in global turnover for the first time in 2020, cargo-partner’s turnover increased by 72%, reaching over 1.8 billion euro in 2021, and further increased to 2.06 billion euro in 2022.

“Leadership by agile founders bears some considerable advantages, but from a certain stage on, highly professional and long-term stable ownership is the bigger asset. It is the founders’ challenge and responsibility to decide about both management and ownership succession at the right time. Not too early to be able to build a stable internal management succession but, for sure, also not too late,” Krauter says. “That is why, together with the Corporate Executive Board, we started evaluating different options for the future of cargo-partner.”

Stefan Krauter continues to explain: “It would also have been a good option for the management and employees to continue going completely alone, but since the ideal new strategic owner was found in NX Group, we were ultimately convinced that this was the right way to go forward. Following the integration policy we have seen from NX Group so far, cargo-partner will remain cargo-partner in regard to both organization and branding – and it will become the strongest cargo-partner ever!”

The deal was signed on May 12, 2023 and will come into effect subject to the usual regulatory (anti-trust and FDI) approvals in an estimated four to seven months along with the subsequent closing.

“Both organizations will benefit from considerable synergies in global office coverage, an expanded service portfolio, strengthened regional, product and IT know-how, increased scale and others. NX Group will benefit from our strong and extensive network in Central and Eastern Europe that complements NX’s existing network in an ideal way, and cargo-partner will jump several leagues in the Intra-Asian and Trans-Pacific trade lanes,” Stefan Krauter states. He adds: “cargo-partner will also continue to work with its current global agents’ network, strive to expand this section of its business and support it in future with its upgraded platform which is presently under development.”

“I will personally continue to support the transition in my new role on the Corporate Supervisory Board and in my advisory function to the Corporate Executive Board. I will be focusing on smart partial integration with the new owners as well as on other matters regarding strategy, M&A and ESG. What an interesting and rewarding challenge at the end of my career!” Krauter says.

The sellers have been advised by J.P. Morgan (financial), ValueAdd (financial), BCG (commercial), Schönherr (legal), and Deloitte (accounting and tax) on the transaction.

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