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step, which in turn will facilitate theire-AWB transmission without anybinding from their side.”

Bengaluru International AirportLimited (BIAL), which operates theKempegowda International Airport inBengaluru executed the e-freightconcept, in November 2014.

Mahenthiran P, Senior VicePresident (Bangalore & Mangalore),AISATS, stressed, “Pioneering andimplementing advanced technologi-cal processes has always beenAISATS’ vision and our Bengalurufacility resonates and embraces thesame notion.”

“The e-freight initiative is yetanother stride towards enhancingefficiency while being environmen-tally conscious,” Mahenthiran added.

Taking the first stepSanjiv Edward, Head of Cargo

Business, DIAL informed that DIALhas implemented e-LEO (ElectronicLet Export Order) concept at IGI

Airport wherein electronic messageeliminates the use of paper copy ofthe location slip. Introduction of e-LEO has resulted into a saving ofapproximately 3600 papers in a day,both Celebi and Cargo ServiceCenter have also eliminated the useof AWB copy from the parking area,truck dock area and X-ray screeningarea, a common web-based IT plat-form is provided to airlines, CHAs,freight forwarders, CTOs at both thecargo terminals at IGIA for EDI andIATA messages (FFM/FHL, etc.) integration has been successfullyimplemented for participating airlinesand custodians.

Can India meet the e-freight target?

Edward is quite optimistic thatIndia will definitely achieve the ‘e-freight’ vision. Sharing his views, hestated, “IGI airport is leading the ini-tiative and has already been recog-nised by IATA as the first e-freightcompliant airport in India. A success-ful proof of the e-freight concept forEDI was done by the DIAL team onground for 100 per cent electronicoperations for both export and import.”

Edward added, “The entire document processing for internationalcargo at IGI airport is being done onEDI mode only. We are sure that otherairports in India will follow DIAL andalso pick up similar capability to bringIndia on the e-freight map.”

Sanjiv EdwardHead of Cargo BusinessDelhi International Airport Limited

Mahenthiran PSenior Vice President (Bangalore & Mangalore), AISATS

Going forward the paperless way

NVOCCs face challenges in Asian trades The unpredictability of the volumes in their trade lanes;

Main liners coming strongly into their trade lanes not only with abundance of containers and vessel space but with also an agenda which may not necessarily be to make profit outof the moves;

Mushrooming growth of NVOCCoperators: With equipments available easily and sufficientlyeither on lease or purchase andwith risk consciousness not much in their minds and withcredit worthiness remainingunscreened, today the NVOCC industry is very muchover populated;

The symbiotic relationship thatexisted traditionally between theNVOCCs and feeder operatorshas very much thawed and theircommon aspirations today havetaken a different hue.

The over-tonnaging and excessof container equipments have alsotaken a toll on the NVOCC operators.There may be other reasons too, butthe bottom line is that today theNVOCCs are gasping and continue

their show regardless of no source ofoxygen being in sight.

Invariably today they operatemore out of hope than with an intelligent business plan. Their hope stems from the possibility ofcollecting detention from containerswhose clearances are delayed by theconsignees of cargo.

But so intense is the competition among the NVOCCs that

even here there are reckless increments given on the free ofdetention days. In certain sectors intheir trade profile, the freight rateshave reached negative levels. Pursestrings are being opened to dole out cash for carriage of cargo rangingfrom USD 100 per TEU to USD 250 per TEU.

It is difficult to fathom whatmakes them do this. These were thetrades which started with good

positive freight rates a decade backand now through indisciplined under-cutting, the situation has come to this pass.

Merchants who are benefici-aries of this largesse have theaudacity to even put forward theircargo claim to the hapless NVOCCshould there be an unfortunatedamage to cargo. Their commit-ment levels have become so strongand permanent with mounting number of equipments and theshoreside infrastructure that theyhave no option but to continue.

Where does the NVOCCgo from here?

The only salvation for them is to rally each other around and bring the freights commonly to sustenance levels.

Ideally the uncontrolled growthof the number of NVOCCs, who arenot disciplined need to be regulated;something on the lines of what exists in developed economieslike USA, where an intense amount of screening on various aspects not restricted to financial credibility is done.

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