FREIGHT FORWARDING

Logistics & Supply chain industry in India: Current status

SUMMER PROJECTON

Logistics & Supply chain industry in India: Current status A REPORT SUBMITTED TO IMED, BHARTI VIDYAPEETH UNIVERSITY, PUNE SUBMITTED TO

SUBMITTED BY

Director, Honorable SARANSH SINGH Dr. Nitin Nayak KR. KUMUD RANJAN IMED,BVU,PUNE

INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT, BHARATI VIDYAPEETH UNIVERSITY, ERANDAWANE, PAUND ROAD, PUNE-411038(INDIA)

PREFACEThe success of any business entirely depends on the survey done about the particular product. This survey should be effective and it is very important to do it cautiously. The topic given to me was" LOGISTICS & SUPPLY CHAIN INDUSTRY IN INDIA I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute.

CERTIFICATEThis is to certify that the project work done on ASSESSING CUSTOMER POTENTIAL AND PREFERENCES FOR NVOCC IN THE LOGISTICS INDUSTRY submitted to Ishan Institute of Management & Technology, Greater Noida by Nisha Singh in partial fulfillment of the requirement for the award of degree of PG Diploma in Business Management, is a bonafide work is the original one has not been submitted anywhere else for any other degree/diplomaName of the guide. -MR. ALOK TRIPATHI Seal/Stamp of the guide Date: Addresses-

TVS

ACKNOWLEDGEMENTIt gives me immense pleasure to express my deepest gratitude towards Mr.Sarwan Karwedkar and other faculty members for providing me with the opportunity to undertake this summer training, which helped me to learn so much.

I would also like to express my sincere thanks to prof. Kakde who professed me to choose the right title for my project study and whose constant guidance and support helped me to use my efforts & potential efficiently, enabled me to rectify all possible errors to present this report impressively.His constant support has been the key to my achievements on the projects. I would also forward my gratitude to Mr.John Mathew who had arranged for my summer training. My acknowledgement and gratitude to my Guide Mr.Alok Tripathi whose timwly guidance made me complete this project and further enhance my skills and knowledge to grow as an accomplished virtuoso from a bumbling amateur in the management field.

I would also thanks to Mr. and all other staff in TVS logistics who were very amicable and co-operative.Lastly, I would also take a moment to express my heartfelt thanks to my parent and professors who gave their constant assistance propelling me to prove my best.

SARANSH SINGH MUDGAL Kr.KUMUD RAJAN

DECLERATION

The summer Project on ASSESSING CUSTOMER POTENTIAL AND PREFERENCES FOR NVOCC IN THE LOGISTICS INDUSTRY under the guidance of Ms. Sona Handa is the original work done by me. This is the property of the Institute and use of this report without prior permission of the Institute will be considered illegal and actionable.

Date:

Signature

(Student Name)EXECUTIVE SUMMARYDefinition

LOGISTICS IS THE ART AND SCIENCE OF MANAGEMENT, ENGINEERING AND TECHNICAL ACTIVITIES CONCERNED WITH REQUIREMENTS, DESIGN AND SUPPLYING, MAINTAINING RESOURCES TO SUPPORT OBJECTIVES, PLANS AND OPERATION.

Fierce competition in todays market has forced business enterprises to invest in and focus on supply chains. The growth in telecommunication and transportation technologies has led to further growth of the supply chain. The supply chain, also known as the logistics network, consists of suppliers, manufacturing centers, warehouses, distribution centers and retail outlets, as well as raw materials, work-in-process inventory and finished products that flow between the facilities.

The logistics management takes into consideration every facility that has an impact on cost. It plays an important role in making the product conform to customer requirements. Also it involves efficient integration of suppliers, manufacturers, warehouses and stores and encompasses the firms activities at many levels, from the strategic level through the tactical to the operational level.

Logistics is a challenging and important activity because it serves as an integrating or boundary spanning function. It links suppliers with customers and it integrates functional entities across a company. With the ever-growing competition in todays market place it becomes necessary for a firm to use its resources to focus on strategic opportunities. This includes several internal factors like management style, culture, human resources, facilities and several external factors like technology, globalization and competition. This is where the concept of logistics plays a major role, i.e. it helps to leverage certain advantages the firm has in the marketplace.

B. Role of Logistics It is important to recognize the importance of a dynamic balance between the minute details and the main elements involved in a product. The Role of Logistics is to maintain that balance. Once the firm realizes the importance of logistics it is necessary that the firm make full and efficient use of logistics. The first step is to create a buyer value for the customer and a strategic value for the firm.

The customer is the most important asset for a company. He drives the entire supply chain including manufacturing, marketing and logistics. Hence it is important for a firm to have a clear understanding of what the customer demands and to keep up to the customers expectations. Once a company has a clear understanding of its customers requirements it must device a strategy on how to use logistics to achieve it. This means that the company has to have a clear understanding or assessment of companys strategic direction.

Various steps involved in a logistics strategy development and planning process.

Visioning: this includes the systematic development of an organizational consensus regarding the key inputs to the logistics planning process as well as identification of the potential alternative logistics approaches. This is an important step for the following reasons:

Helps to define a strategic direction to the company and also to get a clear understanding the role of logistics in it.

Get a clear idea of the requirements of the various segments of customers.

Have a look at the various factors that would affect the strategy of the company.

Define alternative strategies and also the scope of the planning effort.

Strategic analysis: this involves taking a look at the various components involved in the process and selecting the best logistics process among the alternatives. These components, which are to be reviewed, are revealed during he first step. This may include revamping the entire process to assessing how a single component can be used more effectively.

Planning: this involves the assembling of a plan that outlines the mission and goals for the logistics function and the programs and activities to achieve these goals. Logistics planning is an iterative process. The plans have to be redefined every year to improve the quality of performance.

Managing change: this involves effective management to implement enhanced ways of conducting business. The management should keeping changing the plans in accordance with the change in the market and also coach the organization to effectively embrace this change.

C. Current Logistics Related Issues

There are several factors that affect logistics. These issues need to be anticipated, prepared for and taken advantage of for a company to be successful in todays market. They are

External:

Globalisation

Technology

Workforce 2000

challenging nature of the work force

Environmental concerns

Internal:

Customer service and quality

Third party networks

Supply chain management

Changes in management and organization style

Listed below are some of the steps that could be followed to mitigate the above mentioned issues:

Performance:

Better service for customers

Improved productivity

Assess just in time and quick response needs

System structure:

Better relationship with vendors, customers and third parties to more effectively manage the supply chain

Better relationship within and across the organization

Technology integration:

Better information systems that connect functions and organizations

Combine information and material handling systems for increased efficiency and effectiveness

Indian logistics market report provides vital insights into all facets of the Indian logistics market which is useful for manufacturers, importers, exporters and the people who are in the business of transporting cargo who require critical inputs about the logistics scenario in India. It covers most of the service providers associated with road, sea, air and railways along with inputs pertaining to the infrastructure. This report is a must have for anybody trying to understand the Indian logistics market. It will serve as an invaluable reference tool for the industry, government and academe. The report explains industry structure for different logistics - road, sea, air and rail. It also deals with intermediaries and support service providers separately. The report covers the market dynamics, cost structure, import duties and export-import processes, issues and challenges, government policies/initiatives, regulatory environment and policy related framework. Regulations include mainly guidelines for movement of hazardous goods and safety issues in transportation in all the segments. The report provides profiles of major players and information on key corporate data, business profile, financial performance, recent developments and their respective strategies. Lastly, the report gives outlook for Indian Railways; road transport providers; aviation; shipping and ports.

TABLE OF CONTENTS TITLE PAGE CERTIFICATE ACKNOWLEDGEMENT DECRERATION EXECUTIVE SUMMARY CHAPTER ONE

Company profile1. Introduction of Global logistic Solution (GLS) 2. Area serves by GLS 3. Clauses of Bill of ladingCHAPTER TWO

Comparison With Other Business 1. Sea Sky2. GGL3. All Cargo Global LogisticsCHAPTER THREE

TRADE PROFILE 1. About Indian Industry, Economy & Trade 2. About logisticsa) History of logistics

b) Evaluation of logistics

c) Growth in logistics

d) Logistics in India

e) Logistics not a Chain

3. Role of consolidator/NVOCC in international cargo business

4. Container freighting practices

5. Supply Chain Management

6. About LCL load

7. Export

8. Evolution of container cargo

9. Containerization

10. Trends in containerization

11. Processing of an Export order Preshipment

12. Form of Export Sales Contract

CHAPTER FOUR

MARKETING STRATEGY OF THE COMPANY

1. Introduction

2. Key elements of successful market strategy3. SWOT Analysis of the company4. Developing market Strategy for the Company

5. Marketing Plan of the Company

a. Identifying Strength and Weakness

b. Work Plan to Implement

c. Clean up the Data Base

d. Focus on the market

CHAPTER-FIVE

MANAGEMENT HIRERACHY

CHAPTER SIXGOVERNMENT POLICIES RELATED TO THE BUSINESS

Export Import (EXIM) PoliciesCHAPTER SEVENTAX ASPECTS 1. Sales Tax in relation to Export and Import 2. Foreign Exchange Management Bill

3. Avoidance of Double Taxation

4. Money Laundering Bill

CHAPTER EIGHT OBJECTIVE CHAPTER- NINE RESEARCH METHODOLOGY CHAPTER-TEN

LITARATE REVIEW

CHAPTER-ELEVAN

SYNOPSIS

CHAPTER-TWELVE

DATA ANALYSIS CHAPTER-THIRTEEN

GRAPHICAL REPRESENTATION

CHAPTER-FOURTEEN

SWOT ANALYSIS

CHAPTER-FIFTEEN

LIMITATION

CHAPTER-SIXTEEN

MAJOR PROBLEM

CHAPTER-SEVENTEEN

FUTURE ASPECTS

CHAPTER-EIGHTEEN

CONCLUSION

CHAPTER-NINETEEN

BIBILOGRAPHY

CHAPTER-TWENTY

WORDS OF THANKS

CHAPTER-TWENTY-ONE

ANNEXURE

CHAPTER-1

Chapter 1Company profileGlobal Logistics Solutions (I) Pvt. Ltd.Global Logistics: Bridging latitudesThe role of a Neutral NVOCC/MTO is to facilitate international trade for the Exim fraternity (through freight forwarders and CHAs) by playing a key role in the supply chain and facilitate domestic and overseas logistics both by air and SEA through services that are efficient, economical and easy to execute. In order to achieve this, Global Logistics Solutions India (GLS) was established in October 2006, by four dynamic young professionals with a burning entrepreneurial desire. With a cumulative experience of more than 50 years behind them, a team of four professionals from a common background and a myriad of exposures, decided to come together to fulfil their entrepreneurial desire and at the same time create a company that values its people, who significantly contribute to the growth of a company (something the management themselves have experienced). Having travelled around the world and being exposed to businesses overseas makes it that much easier for the management to understand the domestic and international customers needs and provide just the perfect solutions that would benefit their businesses.Within the last six months GLS has become a name to reckon with in India and overseas for consolidation and freight forwarding activities. In its first phase of launch the company has set up four regional offices in Mumbai, Chennai, Kolkata and Delhi. In the second phase spanning a period of 18 months, the company will be opening 11 more offices in the secondary cargo centres, ports and ICDs taking the cumulative number of owned operations within India to 15. In addition to this GLS would be establishing its presence through a network of agents and franchisees in the tertiary cargo centres and take its presence to every corner of the country, in the process become a true pan India logistics services provider with a global reach. GLS has had a very successful run overseas in terms of networking with some of the largest independent regional players. These independent entities network internally and along with GLS cross leverage the strengths to maximize synergies that translates to higher efficiencies in executing business and achieve customer satisfaction by providing cost effective world class services. This advantage has seen GLS grow from an entry level player six months ago to a major force in the consolidation and forwarding business. It offers Neutral NVOCC/MTO services to the local and multinational freight forwarding companies and Customs House Agents (CHA) across India and has been able to garner support from some of the biggest names in the business. The market has accepted GLS as a quality player and a company who can be trusted with their valuable produce and ship it globally giving it the GLS advantage. This trust helped GLS achieve its first milestone of 100 TEUS (twenty feet equivalent unit) of LCL consolidation boxes in Mumbai within three months of it commencement of operations. It has also establish 20 weekly direct services from Nhava Sheva and simultaneously take a lead in markets like Kolkata within three months of launch.. GLS has also established direct LCL import services from China, Hongkong and Singapore to Chennai, Nhava Sheva, Kolkata and Delhi and is able to carry LCL shipments to India from all the major sourcing points across Asia. It is in the process of starting import services from Europe and USA shortly. GLS has set very high standards to measure its performance and the management is focused on making the company have a pan India presence within two years and then expand overseas to create a global footprint. While the market watches this newest player on the block grow from strength to strength, the management is determined to make the company a leader in providing global logistics solutions.Bridging latitudes... With growing need for international logistics services and a constant evolution in the field of global transportation, GLS is committed to continuously innovate itself as a comprehensive solutions provider for the international business community.

Facilitating International Trade through..

Connections that ensure delivery commitments are lived up to. Services that are, efficient, economical and easy to execute.

Network that covers around 2500 destinations.

Solutions that address special needs of your cargo

Technology that informs and empowers, and

People who make all the difference. The Vision

To emerge as a market leader in providing global logistics services, to be recognized for its values and ethical business practices, to deliver professional and personalized services to achieve highest levels of customer satisfaction.

Mission

To mobilize all its resources to offer clients high quality integrated logistics solutions that adds value to the customers supply chain needs by bringing benefits of reduced costs and higher efficiencies through the implementation of systems and processes, innovative solutions and exceptional services from a highly motivated team of professionals.Focus on lcl consolidation GLS is a professional international NVOCC. We specialize in groupage/consolidation services via road, sea, air, and rail. We cater to exports from India to anywhere in the world and vice versa. GLS offers "direct" consolidation services to over 50 destinations around the world covering all major ports. Being one of the only neutral nvoccs/mto offering a uniform network within India, this makes GLS a ideal partner for our customers for executing their lcl shipments to and from the sub-continent.THE 3E APPROACHWe benchmark our services on ease, efficiency and economy. Our simplified work procedures ensure ease in dealing. Our web based real time tracing and tracking services make it easy to monitor the progress of your consignment. Our customer focused and committed global network ensures efficiency while executing deliveries. We leverage our relationships with our business partners through global contracts to offer you competitive rates for every destination.Ethical RelationshipGLS maintains absolute Neutrality and follows ethical business practices to ensure that every intermediary's interest is protected and business is executed in strict confidentiality. Quite naturally, most Customs Brokers (CHA's), MNC's and freight forwarders consider GLS as an ideal business partner while trusting it with their valuable business, be it LCL or FCL.GLS believes in Fair Business Practices to create a win-win situation with business associates, global partners and internal customers as well. The Management is focused on creating that conducive environment which promotes ethical business practices across all its offices and in the process have an ideal environment for sound and fair business practices.The GLS Advantage. GLS offers clients single window services for imports and exports. Our network of own offices, global network of agents and strategic partners ensure your shipments is given personal attention from departure to delivery. GLSs investments into state of the art electronic tracking give you near to real time information on the progress shipments make till they are delivered safe and sound. GLSs 3E service makes it the ideal logistics partner for all your shipping needsAREA SERVE BY THE GLOBAL LOGISTIC SOLUTION (INDIA ) PVT LTD

FCL

LCL

MULTIPLICITY CONSOLIDATION

AIR FREIGHT

PROJECT CARGO

3E FCL freight forwarding is just the beginning.. GLS offers competitive freight rates on premium carriers to global destinations. We add value to our freight forwarding service by offering value Added services such as:

Offering port to port services to destinations worldwide Accepting "Door to Door" DDU/DDP moves for exports Handling containerized over dimensional cargo Handling cross trade business from origins around the world

GLS's extensive international network, contracts on premium carriers and competitive pricing achieved through economics of scale enables the company to offer FCL freight forwarding services that are truly unique and add value to the customers needs.3E LCL Consolidation Services.. GLS offers regular LCL services to nearly 2500 destinations worldwide through a host of direct services to major ports and at the same time using numerous International Hubs for distribution. Aggregation of LCL cargoes and consolidation activities being the core business of the company it is very focused about its execution. This is done through with a highly motivated team of professionals with a proven track record, a net work of owned offices and franchisees in India that covers the length and breadth of the country, a established network of agents who are all majors in their respective regions giving our customers best of both worlds irrespective of which sector the business is headed. Our valuable customers comprise of some of the biggest names in Freight Forwarding in the domestic market, Multi-National Companies having global presence and conglomerates that have the most stringent business needs in

the forwarding business goes to underline our commitment to being the ideal business associate for your global logistics needs.MULTIPLICITY CONSOLIDATION

GLS's Multi-City Consolidation for export and import cargo is of great benefit to small and medium trade centers. It facilitates transshipment of LCL cargo to and from India for delivering and sourcing globally.EXPORT

Accepting LCL cargoes from all major centers within India and Nepal, sending them in dedicated containers/CBTs to the gateway for final consolidation and distribution to ;worldwide destinations. These services empower customers to execute shipments from literally wherever they are thus empowering them with opportunities available from all the major ports while custom clearing their LCL shipments locally. IMPORTOffering LCL services for imports to all the major centers from the Gateway Ports in India. Currently these services cover LCL consolidation to New Delhi and Ahmedabad from Mumbai (Nhava Sheva), Bangalore and Hyderabad from Chennai. New services will be launched to cater to other major centers like Kanpur, Ludhiana, Jaipur and Moradabad in the North while the South would see services to Tirupur, Selum and Coimbatore being introduced in phases.

These services make it possible for importers across the length and breadth of the country to customs clear their goods locally instead of the conventional method of doing it all at the Gateway ports.AIR FREIGHT

With its global network of partners who are seasoned players in the Air Freight business and IATA affiliates.

GLS is capable of offering its customers a very comprehensive Air freight service to and from India. In order to retain and do justice to its neutral image as an NVOCC, GLS is offering services to the local freight forwarders who are either not affiliated with IATA or lack a global presence through owned offices or network partners.

The ultimate objective is to focus on imports and offer the advantages of our network to the freight forwarding fraternity and provide a neutral service that enhances their productivity and control on business from the end customer. Exports are restricted to handling routed business that is not secured from sales efforts locally or poaching of controlled traffic of our customers.PROJECT CARGO

The core team of GLS is an experienced lot in handling projects, be it turnkey logistics contract executions and management to offering logistics solutions for bulk business, over dimensional cargoes and heavy lifts. Its subsidiaries and associates from whom some of the functions are outsourced have the extensive experience and have been involved in participating in some of the most prestigious logistics projects in the country. Most of the network partners of GLS internationally are service providers to the infrastructure based industry, exposing them in handling small and large scale projects backed by a track record of successful completion of jobs on a turn key basis giving GLS the confidence to accept challenges globally.GLS offers all the services related to handling projects under one roof and delivers a seamless logistics solution to the customer irrespective of the magnitude of the shipment making it the most aggressive entrant and a sound alternative to existing players in the field.BILL OF LADING CLAUSES

Carrier's Tarrif

Warranty

Negotiability and title to the goods

Certain rights and immunities for the carrier and other persons

Carrier's Responsibility

Merchant's Responsibility

Containers

Temperature Controlled Cargo

Inspection of Goods

Matters affecting performance

Methods and Route of Transportation

Deck Cargo (and live stock)

Notification and Delivery Clause

Both to blame collision

General Average

General Average

Charges

Lien

Variation of the Contract

Partial Validity

1.DEFINITIONS

(a) "Carrier" means the Company stated on the front of this Bill of Lading as being the Carrier and on whose behalf this Bill of Lading has been signed.

(b) "Merchant" includes the shipper, the consignee, the receiver of the Goods, the holder of this Bill of Lading, any person owning or entitled to the possession of the Goods or this Bill of Lading, any person having a present or future interest in the Goods or any person acting on behalf of any of the above mentioned persons.

(c) "Goods" includes the cargo supplied by the Merchant and includes any container not supplied by or on behalf of the carrier but excludes live animals & goods carried on deck.

(d) "Container" includes any container, trailer, transportable tank, lift van, flat, pallet or any similar article of transport used to consolidate goods.

(e) "Carriage" means the whole of the operations and services undertaken or performed by or on behalf of the Carrier in respect of the Goods.

(f) "Combined Transport" arises where the Carriage called for by this Bill of Lading is not a Port to Port Shipment.

(g) "Port to Port Shipment" arises where the Place of Receipt and the Place of Delivery are not indicated on the front of this Bill of Lading or if both the Place of Receipt and the Place of Delivery indicated are ports and the Bill of Lading does not in the nomination of the Place of Receipt or the Place of Delivery on the front hereof specify any place or spot within the area of the port so nominated.

(h) "Hague Rules" means the provisions of the International Convention for Unification of certain Rules relating to Bills of Lading signed at Brussels on 25th August 1924.

(i) "Hague-Visby Rules" means the Hague Rules as amended by the Protocol signed at Brussels on 23rd February 1968 and scheduled to the COGSA, Singapore.

(j) COGSA means the Carriage of Goods by Sea Act of Singapore.

(k) COGSA (USA) means the Carriage of Goods by Sea Act of the United States of America.

(l) COGWA means the Carriage of Goods by Water Act 1936 of Canada.

(m) "Charges" includes freight and all expenses and money obligations incurred and payable by the Merchant.

(n) "Shipping Unit" includes freight unit and the term "unit" as used in the Hague Rules and Hague-Visby Rules.

(o) "Person" includes an individual, a partnership, a body corporate or other entity.

(p) "Stuffed" includes filled, consolidated, packed, loaded or secured.

(q) Authority means a duly constituted legal body or person acting within its legal powers and exercising jurisdiction within any nation, state, municipality or port.

(r) "Owner" equal to "Merchant".

2. CARRIER'S TARIFFThe provisions of the Carrier's applicable Tariff, if any, are incorporated herein. Copies of such provisions are obtainable from the Carrier or his agents upon request or where applicable from a government body with whom the Tariff has been filed. In the case of inconsistency between the Bill of Lading and the Tariff, this Bill of Lading shall prevail.

3. WARRANTYa. The Merchant warrants that in agreeing to the terms hereof he is or is the agent of and has the authority of the person owning or entitled to the possession of the Goods or any person who has a present or future interest in the Goods and is accepting these Terms & Conditions for and on behalf of all such persons. Nothing in this Bill of Lading may be varied or cancelled except by a Director of the carrier company endorsed on the Bill of Lading in writing and stamped by the company official stamp.

b. The parties, in accepting this Bill of Lading, hereby unreservedly agree to the sole jurisdiction of the Singapore Courts and the applicability of Singapore Law to any dispute arising herefrom.

4. NEGOTIABILITY AND TITLE TO THE GOODS(i) This Bill of Lading shall be non-negotiable unless made out "to order" in which event it shall be negotiable and shall constitute title to the Goods and the holder shall be entitled to receive or to transfer the Goods herein described.

(ii) This Bill of Lading shall be prima facie evidence of the taking in charge by the Carrier of the Goods as herein described. However proof to the contrary shall not be admissible when this Bill of Lading has been negotiated or transferred for valuable consideration to a third party acting in good faith.

(iii) The Merchant accepts full liability for all Statements and particulars as to the contents, quality, quantity, weight, numbers, marks and/or value of the packages inserted herein and undertakes to indemnify and hold the carriers and all persons interested in the ship or vessel harmless from all demands, claims, liabilities, actions and expenses arising out of such Statements and to pay all costs, expenses, losses and damages including costs of solicitors on an indemnity basis for any breach of warranty/description or resulting therefrom.

5. CERTAIN RIGHTS AND IMMUNITIES FOR THE CARRIER AND OTHER PERSONS

(i) The Carrier shall be entitled to sub-contract on any terms the whole or any part of the Carriage and the Merchant agrees to be bound thereby on those terms.

(ii) The Merchant undertakes that no claim or allegation shall be made against any person or vessel whatsoever, other than the Carrier, including, but not limited to the Carrier's servants or agents, any independent contractor and his servants or agents, and all others by whom the whole or any part of the Carriage, whether directly or indirectly, is procured, performed or undertaken, which imposes or attempts to impose upon any such person or vessel any liability whatsoever in connection with the Goods of the Carriage; and if any claim or allegation should nevertheless be made, to defend, indemnify and hold harmless the Carrier against all consequences thereof. Without prejudice to the foregoing every such person and vessel shall have the benefit of all provisions herein benefiting the Carrier as if such provisions were entered into expressly for his benefit and in entering into this contract the Carrier, to the extent of these provisions, does so not only on his own behalf but also as agent or trustee for such persons and vessels and such persons and vessels and such persons and vessels shall to this extent be or be deemed to be parties to this contract.

(iii) The Merchant shall defend, indemnify and hold harmless the Carrier against any claim or liability and any and all expenses, costs or disbursements arising therefrom on a full indemnity basis arising from the Carriage of the Goods insofar as such claim or liability exceeds the Carrier's liability under this Bill of Lading, which shall apply irrespective of whether the claim lies in contract or in Tort. The Merchant specifically agrees that any judgment or award made in any jurisdiction whatsoever in so far as it exceeds the limits set out in this Bill or excluded by this Bill of Lading shall not be registrable or enforceable against the carrier.

(iv) The Merchant undertakes, in addition and without prejudice to any of these conditions, that he shall in any event indemnify the Carriers against all liabilities whatsoever including but not limited to penalties imposed by the relevant authorities suffered directly or indirectly from or in connection with the Merchant's instructions or their implementation or the goods and in particular the Merchant shall indemnify the carrier in respect of any liability whatsoever it may be under to any haulier, carrier, warehousemen or other person whatsoever at any time involved with the goods arising out of any claim made directly or indirectly against any such party by the Merchant or by any sender, consignee or owner of the goods or by any person interested in the goods or any other person whatsoever.

(v) The Carrier reserves the right at its sole discretion at any time before receiving or collecting or otherwise dealing with any goods or before transporting by conveyance any goods to refuse to receive or collect or convey or deal with the same or where received to return, offload, part-carry or transship the goods without assigning any reason whatsoever and without any liability whatsoever, notwithstanding whether the goods are booked or not or otherwise.

(vi) In all cases of losses, damages, delay, non-delivery from whatsoever cause arising in a non-carriage by sea situation and which are not excluded by any other provisions in this Bill of Lading the Carriers liability shall be limited to and in no event whatsoever exceed S$1.00 per kilogram, unless otherwise provided by statute. 6. CARRIER'S RESPONSIBILITY

(i) CLAUSE PARAMOUNT

(a) Subject to clause 13 below this Bill of Lading insofar as it relates to sea carriage by any vessel whether named herein or not shall have effect subject to the Hague Rules or any legislation making such Rules or the Hague-Visby Rules compulsorily applicable (such as COGSA, COGSA(USA) or COGWA) to the Bill of Lading and the provisions of the Hague Rules or applicable legislation shall be deemed incorporated herein.

The Hague Rules or Hague-Visby Rules or COGSA or COGSA(USA) or COGWA if this Bill of Lading is subject to U.S. or Canadian Law respectively shall apply to the carriage of goods by inland waterways and reference to carriage by sea and such Rules shall be deemed to include reference to inland waterways.

If and to the extent that the provisions of the Harter Act of the USA 1893 would otherwise be compulsorily applicable to regulate the Carriers responsibility for the goods during any period prior to loading on or after discharge from the vessel the Carriers responsibility shall instead be determined by the provisions of 6(3) below, but if such provisions are found to be inapplicable or invalid such responsibility shall be subject to COGSA.

(b) The Carrier shall be entitled to (and nothing in this Bill of Lading shall operate to deprive or limit such entitlement) the full benefit and rights to all limitations of and exclusion from liability and all rights conferred or authorised by any applicable law, statute or regulation of any country and without prejudice to the generality of the foregoing also any law, statute or regulation available to the Owner of the vessel(s) on which the Goods are carried.

(ii) PORT TO PORT SHIPMENT

The responsibility of the Carrier is limited to that part of the Carriage from and during loading onto the vessel up to and during discharge from the vessel and the Carrier shall not be liable for any loss or damage whatsoever in respect of the Goods or for any other matter arising during any other part of the Carriage even though Charges for the whole Carriage have been charged by the Carrier. The Merchant constitutes the Carrier as agent to enter into contracts on behalf of the Merchant with others for transport, storage, handling or any other services in respect of the Goods prior to loading and subsequent to discharge of the Goods from the vessel without responsibility for any act or omission whatsoever on the part of the Carrier or others and the Carrier may as such agent enter into contracts with others on any terms whatsoever including terms less favourable than the terms in this Bill of Lading.

(iii) COMBINED TRANSPORT

Save as is otherwise provided in this Bill of Lading, the Carrier shall be liable for loss of or damage to the Goods occurring from the time that the Goods are taken into his charge until the time of delivery to the extent set out below.

(A) Where the stage of Carriage where the loss or damage occurred cannot be proved:-

(i) The Carrier shall be entitled to rely upon all exclusions from liability under the Rules or legislation that would have been applied under 6(1)(a) above had the loss or damage occurred at sea or, if there was no carriage by sea, under the Hague Rules or COGSA or COGSA (USA) or COGWA if this Bill of Lading is subject to US, or Canadian law respectively.

(ii) Where under (i) above, the Carrier is not liable in respect of some of the factors causing the loss or damage, he shall only be liable to the extent that those factors for which he is liable have contributed to the loss or damage.

(iii) Subject to 6(C)(iii) below, where the Hague Rules or any legislation applying such Rules or the Hague-Visby rules (such as COGSA or COGWA) is not compulsorily applicable, the Carriers liability shall not exceed S$1.00 per kilo of the gross weight of the Goods lost, damaged or in respect of which the claim arises or the value of such Goods, whichever is the lesser.

(iv) The value of the Goods shall be determined according to the commodity exchange price at the place and time of delivery to the Merchant or at the place and time when they should have been so delivered or if there is no such price according to the current market price by reference to the normal value of Goods of the same kind and quality, at such place and time, always provided that the onus of proving such current market price shall be on the claimant failing which the carriers valuation shall be valid absolutely for all purposes.

(B) Where the stage of Carriage where the loss or damage occurred can be proved:

(i) the liability of the Carrier shall be determined by the provisions contained in any international convention or national law of the country which provisions:

(a) cannot be departed from by private contract to the detriment of the Merchant; and

(b) would have applied if the Merchant had made a separate and direct contract with the Carrier in respect of the particular stage of Carriage where the loss or damage occurred and had received as evidence thereof any particular document which must be issued in order to make such international convention or national law applicable;

(ii) with respect to the transportation in the United States of America or in Canada to the Port of Loading or from the Port of Discharge, the responsibility of the Carrier shall be limited to procure transportation by carriers (one or more) and such transportation shall be subject to the inland carriers contracts of carriage and tariffs and any law compulsorily applicable. The Carrier guarantees the fulfillment of such inland carriers obligations under their contracts and tariffs.

(iii) Where neither (i) or (ii) above apply, any liability of the Carrier shall be determined by 6(iii)(A) above.

(C) GENERAL PROVISIONS

(i) Delay and/or Consequential Loss

Save as otherwise provided herein, the Carrier shall in no circumstances be liable for direct, indirect or consequential loss or damage caused by delay or any other cause whatsoever and howsoever caused.Without prejudice to the foregoing, if the Carrier is found liable for delay, and where such delay is not excluded elsewhere in these provisions, liability shall be limited to the freight applicable to the relevant stage of the transport.

(ii) Insofar as the duties under this Bill of Lading relates to situations other than sea carriage, including but not limited to, pre-shipment or post-shipment, trucking, warehousing, storage, packing, labeling, stuffing/unstuffing, domestic or local trucking, clearance, customs, documentation, delivery, collection etc it is mutually hereby agreed that in any event whatsoever and whether the action is in contract or in tort, the carrier's liability shall be limited to S$1.00 per kilogram only. Carriers liability as spelt out hereunder shall be without prejudice to the carriers rights to be paid/reimbursed for their costs of the services provided and which shall be paid in priority to any other claim.

(iii) Package or Shipping Unit Limitation

Where the Hague Rules or any legislation making such Rules compulsorily applicable to this Bill of Lading apply, the Carrier shall not, unless a declared value has been noted in accordance with (iii) below, be or become liable for any loss or damage to or in connection with the Goods in an amount per package or shipping unit in excess of the package or shipping unit limitation as laid down by such Rules or legislation. If no limitation amount is applicable under such Rules or legislation, the limitation shall be S$1.00 per kilogram or S$500.00 per package or invoice value, whichever is lesser always provided, that in respect of goods of a fragile or perishable nature or special goods, these are carried solely at the Merchant's risk without any liability whatsoever of the Carriers.

(iv) Ad Valorem: Declared Value of Package or Shipping Unit

The Carrier's liability may be increased to a higher value by a declaration in writing of the value of the Goods by the shipper upon delivery to the Carrier of the Goods for shipment, such higher value being inserted on the front of this Bill of Lading in the space provided and, if required by the Carrier, extra freight paid. In such case, if the actual value of the Goods shall exceed such declared value, the value shall nevertheless be deemed to be the declared value and the Carrier's liability, if any, shall not exceed the declared value and any partial loss or damage shall be adjusted pro rata on the basis of such declared value.

(v) Definition of Package or Shipping Unit

Where a Container is used to consolidate Goods and such Container is stuffed by the Carrier, the number of packages or shipping units stated on the face of this Bill of Lading in the box provided shall be deemed the number of packages or shipping units for the purpose of any limit of liability per package or shipping unit provided in any international convention or national law relating to the carriage of Goods by sea. Except as aforesaid the Container shall be considered the package or shipping unit.

The words shipping unit shall mean each physical unit or piece of cargo not shipped in a package, including articles or things of any description whatsoever, except Goods shipped in bulk, and irrespective of the weight or measurement unit employed in calculating freight charges. As to Goods shipped in bulk, the limitation applicable thereto shall be the limitation provided in such convention or law which may be applicable, and in no event shall anything herein be construed to be a waiver of limitation as to Goods shipped in bulk.

(vi) Rust, etc.

It is agreed that superficial rust, oxidation or any like condition due to moisture, is not a condition of damage but is inherent to the nature of the Goods and acknowledgement of receipt of the Goods in apparent good order and condition is not a representation that such conditions of rust, oxidation or the like did not exist on receipt.

(vii) Notice of Loss or Damage

The Carrier shall be deemed prima facie to have delivered the Goods as described in this Bill of Lading unless notice of loss of or damage to the Goods indicating the general nature of such loss or damage, shall have been given in writing to the Carrier or to his representative at the place of delivery before or at the time of removal of the Goods into the custody of the person entitled to delivery thereof under this Bill of Lading or, if the loss or damage is not apparent, within three consecutive days thereafter and the parties hereby agree that failure to give notice as aforesaid shall discharge the Carrier absolutely of all liability whatsoever.

(viii) Time-bar

(a) The Carrier shall be discharged of all liability in so far as it relates to sea carriage unless suit is brought in the proper forum and written notice thereof received by the Carrier within twelve months after delivery of the Goods or the date when the Goods should have been delivered subject always to Clause 6(C)(iii) above.

(b) In all other situations not incurred or related to during sea carriage, the Carrier shall in any event be discharged of all liability unless suit is brought within 9 months of the date of the event giving rise to the claim.7. MERCHANT'S RESPONSIBILITY

(i) The description and particulars of the Goods set out on the face hereof are furnished by the Merchant and the Merchant warrants to the Carrier that the description and particulars including, but not limited to, of weight, content, measure, quantity, quality, condition, marks, numbers and value are correct.

(ii) The Merchant shall comply with all applicable laws, regulations and requirements of customs, port and other authorities and shall bear and pay all duties, taxes, fines, imposts, expenses and losses incurred or suffered by reason thereof or by reason of any illegal, incorrect or insufficient marking, numbering or addressing of the Goods or any other shipper/Merchant related fault or cause.

(iii) The Merchant undertakes that the Goods are packed in a manner adequate to withstand the ordinary risks of Carriage having regard to their nature and in compliance with all laws, regulations and requirements which may be applicable.

(iv) No Goods which are or may become dangerous, inflammable or damaging or which are or may become liable to damage any property or person whatsoever shall be tendered to the Carrier for Carriage without the Carrier's express consent in writing and without the Container or other covering in which the Goods are to be transported and the Goods being distinctly marked on the outside so as to indicate the nature and character of any such articles and so as to comply with all applicable laws, regulations and requirements. If any such articles are delivered to the Carrier without such written consent and marking or if in the opinion of the Carrier the articles are or are liable to become of a dangerous, inflammable or damaging nature, the same may at any time be destroyed, disposed of, abandoned, or rendered harmless without compensation to the Merchant and without prejudice to the Carrier's right to Charges and to an indemnity for any costs, losses, expenses or fines.

(v) The Merchant shall be liable for the loss, damage, contamination, soiling, detention or demurrage before, during and after the Carriage of property (including, but not limited to Containers) of the Carrier or any person or vessel (other than the Merchant) referred to in 5(ii) above caused by the Merchant or any person acting on his behalf or for which the Merchant is otherwise responsible.

(vi) The Merchant shall defend, indemnify and hold harmless the Carrier against any loss, damage, claim, liability or expense whatsoever arising from any breach of the provisions of this clause 7 or from any cause in connection with the Goods for which the Carrier is not responsible or the consequences of which the Carriers responsibility is excluded by these conditions.8. CONTAINERS

(i) Goods may be stuffed by the Carrier in or on Containers and Goods may be stuffed with other Goods.

(ii) The terms of this Bill of Lading shall govern the responsibility of the Carrier in connection with or arising out of the supply of a Container to the Merchant, whether supplied before or after the Goods are received by the Carrier or delivered to the Merchant.

(iii) If a Container has been stuffed by or on behalf of the Merchant.

(a) the Carrier shall not be liable for loss of or damage to the Goods in any circumstances whatsoever.

(b) the Merchant shall defend, indemnify and hold harmless the Carrier against any loss, damage, claim, liability or expense whatsoever arising from the matters covered by (a) above.

(iv) Where the Carrier is instructed to provide a Container, in the absence of a written request to the contrary, the Carrier is not under an obligation to provide a Container of any particular type or quality.

9. TEMPERATURE CONTROLLED CARGO

(i) The Merchant undertakes not to tender for transportation any Goods which require temperature control without previously giving written notice (and filling in the box on the front of this Bill of Lading if this Bill of Lading has been prepared by the Merchant or a person acting on his behalf) of their nature and particular temperature range to be maintained and in the case of a temperature controlled Container stuffed by or on behalf of the Merchant further undertakes that the Container has been properly pre-cooled, that the Goods have been properly stuffed into the container and that its thermostatic controls have been properly set by the Merchant before receipt of the Goods by the Carrier.

If the above requirements are not complied with the Carrier shall not be liable for any loss of or damage to the Goods caused by such non-compliance.

(ii) The Carrier shall not be liable for any loss of or damage to the Goods arising from defects, derangement, breakdown, stoppage of the temperature controlling machinery, plant insulation or any apparatus of the Container, provided that the Carrier shall before or at the beginning of the Carriage exercise due diligence to maintain the refrigerated Container in an efficient state. 10. INSPECTION OF GOODS

The Carrier or any person authorised by the Carrier shall be entitled, but under no obligation, to open any Container or package at any time and to inspect the Goods.11. MATTERS AFFECTING PERFORMANCE

(i) If at any time the Carriage is or is likely to be affected by any hindrance, risk, delay, difficulty or disadvantage of any kind (including the condition of the Goods), whensoever and howsoever arising (whether or not the Carriage has commenced) the Carrier may:

(a) without notice to the Merchant abandon the Carriage of the Goods and where reasonably possible place the Goods or any part of them at the Merchant's disposal at any place which the Carrier may deem safe and convenient, whereupon the responsibility of the Carrier in respect of such Goods shall cease;

(b) without prejudice to the Carrier's right subsequently to abandon the Carriage under (a) above continue the Carriage. In any event the Carrier shall be entitled to full Charges on Goods received for Carriage and the Merchant shall pay any additional costs resulting from the above-mentioned circumstances.

(ii) The liability of the Carrier in respect of the Goods shall cease on the delivery or other disposition of the Goods in accordance with the orders or recommendation given by any government or authority or any person acting or purporting to act as or on behalf of such government or authority.

(iii) The Carrier does not undertake that the goods shall arrive at any place, at any particular time or for any particular market or purpose.

(iv) In the event of force majeure, the contract shall remain in force, the carriers obligation shall however be suspended for so long as the force majeure situation lasts. A force majeure is any and all circumstances which the carriers could not reasonably prevent and the consequences of which he could not avoid.12. METHODS AND ROUTE OF TRANSPORTATION

(i) The Carrier may at any time and without notice to the Merchant:

use any means of transport or storage whatsoever; load or carry the Goods on any vessel whether named on the front hereof or not; transfer the Goods from one conveyance to another including transshipping or carrying the same on another vessel than that named on the front hereof or by any other means of transport whatsoever; at any place unpack and remove Goods which have been stuffed in or on a Container and forward the same in any manner whatsoever; proceed at any speed and by any route in his discretion (whether or not the nearest or most direct or customary or advertised route) and proceed to or stay at any place whatsoever once or more often and in any order; load or unload the Goods from any conveyance at any place (whether or not the place is a port named on the front hereof as the intended Port of Loading or intended Port of Discharge); comply with any orders or recommendations given by any government or authority or any person or body acting or purporting to act as or on behalf of such government or authority or having under the terms of the insurance on the conveyance employed by the Carrier the right to give orders or directions, permit the vessel to proceed with or without pilots, to tow or be towed or to be dry-docked; permit the vessel to carry livestock, Goods of all kinds, dangerous or otherwise, contraband, explosives, munitions or warlike stores and sail armed or unarmed and to do such acts as in the sole opinion of the Carrier may be necessary, expedient or incidental to the performance of the Carrier's obligations.

(ii) The liberties set out in (i) above may be invoked by the Carrier at its sole discretion for any purposes whatsoever whether or not connected with the Carriage of the Goods. Anything done in accordance with (i) above or any delay arising therefrom shall be deemed to be within the contractual Carriage and shall not be a deviation of whatsoever nature or degree.

(iii) The Carrier shall be entitled but under no obligation to depart from the Merchant's instructions in any respect if in the sole opinion of the Carrier there is good reason to do so in the Merchant's interest and the Carrier shall not thereby incur any additional liability whatsoever. The Merchant shall pay any additional costs resulting from the abovementioned circumstances.13. DECK CARGO AND LIVESTOCK

(i) Goods of any description whether containerized or not may be stowed on or under deck at the Carriers sole discretion and without notice to the Merchant and such stowage shall not be a deviation of whatsoever nature or degree subject to (ii) below, such Goods whether carried on deck or under deck shall participate in General Average and such Goods (other than livestock) shall be deemed to be within the definition of Goods for the purposes of the Hague Rules or any legislation making such Rules or the Hague-Visby Rules compulsorily applicable to this Bill of Lading.

(ii) Goods (not being Goods stuffed in or on Containers other than open flats or pallets) which are stated on the front of this Bill of Lading to be carried on deck and which are so carried (and livestock, whether or not carried on deck) are carried without responsibility on the part of the Carrier for loss or damage of whatsoever nature arising during carriage by sea or inland waterway whether caused by unseaworthiness or negligence or any other cause whatsoever and are carried entirely at shipper's risk.

14. DELIVERY OF GOODS

If delivery of the Goods or any part thereof is not taken by the Merchant at the time and place when and where the Carrier is entitled to call upon the Merchant to take delivery thereof, the Carrier shall be entitled without notice to remove from a Container the Goods or that part thereof if stuffed in or on a Container and to store the Goods or that part thereof ashore, afloat, in the open or, under cover at the sole risk and expense of the Merchant. Such storage shall constitute due delivery hereunder, and thereupon the liability of the Carrier in respect of the Goods or that part thereof shall cease.15. BOTH-TO-BLAME COLLISION

If the vessel on which the Goods are carried (the carrying vessel) comes into collision with any other vessel or object (the non-carrying vessel or object) as a result of the negligence of the non-carrying vessel or object or the owner of, charterer or person responsible for the non-carrying vessel or object, the Merchant undertakes to defend, indemnify and hold harmless the carrier against all claims by or liability to (and any expense arising therefrom) any vessel or person in respect of any loss of, or damage to, or any claim whatsoever of the Merchant paid or payable to the Merchant by the non-carrying vessel or object or the owner or charterer or person responsible for the non-carrying vessel or object and set-off, recouped or recovered by such vessel, object or person(s) against the Carrier, the carrying vessel or her owners or charterers.16. GENERAL AVERAGE

(i) The Carrier may declare General Average which shall be adjustable according to the York/Antwerp Rules of 1974 at any place at the option of the Carrier and the Amended Jason Clause as approved by BIMCO is to be considered as incorporated herein and the Merchant shall provide such security as may be required by the Carrier in this connection.

(ii) Notwithstanding (i) above, the Merchant shall defend, indemnify and hold harmless the Carrier in respect of any claim (and any expense arising therefrom) of General Average nature which may be made on the Carrier and shall provide such security as may be required by the Carrier in this connection.

(iii) The Carrier shall be under no obligation to take any steps whatsoever to collect security for General Average contributions due to or by the Merchant.17. CHARGES

(i) Charges shall be deemed fully earned on receipt of the Goods by the Carrier and shall be paid and non-returnable in any event.

(ii) The Charges have been calculated on the basis of particulars furnished by or on behalf of the Merchant. The Carrier shall be entitled to production of the commercial invoice for the Goods or true copy thereof and to inspect, reweigh, re-measure and revalue the Goods and if the particulars are found by the Carrier to be incorrect the Merchant shall pay the Carrier the correct Charges (credit being given for the Charges charged) and the costs incurred by the Carrier in establishing the correct particulars.

(iii) All Charges shall be paid without any set-off, counter-claim, deduction or stay of execution and the Merchant shall remain liable for payment on all unpaid charges due to the carrier, irrespective of whether the charges be on "freight prepaid" or "freight collect" basis and the shipper, consignee and all parties claiming under the Bill of Lading shall be jointly and severally liable to reimburse the Carrier for the same upon demand.

(iv) Where goods are accepted or dealt with upon instructions to collect freight, duties, charges or other expenses from the Consignee or any other person the Merchant shall remain responsible for the same if they are not paid by such consignee or other person immediately when due.

(v) An interest charge of 2% per month shall be levied on all invoices/charges remaining unpaid more than 30 days from due date.

(vi) In the event the Carrier has to commence legal proceedings for recovery of their payment for invoices/charges, the Merchant or Customer shall be liable to pay legal costs on a full indemnity/solicitor and own client basis.

18. LIEN

The Carrier shall have a particular and general lien on any and all Goods and documents belonging to the Merchant or shipped by or consigned to him in the possession, custody or control of the Carrier's or its agents for all sums whatsoever due at any time to the Carrier from the Merchant and for General Average contributions to whomsoever due and for the costs of recovering the same and if the lien be not satisfied within 28 days of a notice in writing by the Carrier to the Merchant the Carrier shall have the right to dispose or sell the Goods and documents by public auction or private treaty, without notice to the Merchant and at the Merchant's expense and without any liability towards the Merchant, and at the sole discretion of the Carrier. For the avoidance of doubt, in the event that the proceeds of sale are insufficient to satisfy all sums due to the Carrier, the Carrier shall be entitled to recover from the Merchant all sums which remain outstanding. All liens of the Carrier shall be considered as secured and the Carrier shall rank in priority as a secured creditor in the event of the Merchants bankruptcy or Winding-up.

19. VARIATION OF THE CONTRACT

No servant or agent of the Carrier shall have power to waive or vary any of the terms hereof unless such waiver or variation is in writing and is specifically authorised or ratified in writing by a director or officer of the Carrier who has the actual authority of the Carrier so to waive or vary.20. PARTIAL INVALIDITY

If any provision in this Bill of Lading is held to be invalid or unenforceable by any court or regulatory or self-regulatory agency or body, such invalidity or unenforceability shall attach only to such provision. The validity of the remaining provisions shall not be affected thereby and this Bill of Lading contract shall be carried out as if such invalid or unenforceable provision were not contained herein.

21. NON-SUBROGATION

The Merchant hereby agrees that he shall insure the goods and keep the goods insured for the total period of the carriage and delivery under this Bill of Lading and covenants that such insurance shall contain a non-subrogation clause/waiver of subrogation. In the event the shipper/Merchant fails to do so, he hereby specifically waives for himself and for all his heirs, successors and subrogees any and all rights of claim against the Carrier arising out of the carriage and delivery of goods under this Bill of Lading. 22. DISPOSAL

The Carrier shall be entitled but under no obligation, at the expense of the Merchant payable on demand and without any liability on the part of the Carrier to the Merchant, to sell or dispose, upon giving 21 days notice in writing to the Merchant at the last known address, of Goods which in the sole opinion of the Carrier cannot be delivered as instructed or without notice to the Merchant of goods which have perished, deteriorated or altered or which has caused or may cause loss or damage to any person or property or to contravene any applicable laws or regulations and such disposal shall be without prejudice to any claims the Carrier may have against the Merchant. 23. NOTICE

Notice may be effected by service by post or telefax and shall be conclusively deemed to have been received on the third day following the day on which it was posted or faxed to the last known address or telefax of the recipient intended.24. RATES

The Carrier shall have the option of charging by value, weight or measurement.25. WAIVER

The waiver by the Carrier of any breach or default of any of these conditions shall not be construed as any waiver of any delay or omission on the part of the Carrier to exercise any rights that it has under these conditions operate as any waiver of any breach or default of the Merchant.26. CRTPA Clause

A person who is not a party to this contract shall have no right under the Contracts (Rights of Third Parties) Act 2001 to enforce any of its terms.

INSURANCE

Loss for or damage to cargo occurring during the policy year as a result of Breach of Contract or in common law where liability arises under MTO documents.

Liability to third parties by reason of liability imposed upon the insured by law and/or assumed by the insured under the Insured's Contract. The loss of life or bodily injury, 3rd party property damage including 3rd party cargo.

Cost and expenses involved in re-routing of the cargo to the correct destination including any professional negligence, error or omission on the part of the insured and/or their agents.

Liability to Authorities like Customs, Port Authorities for any breach of regulations which can even lead to fine and penalties being imposed by the authorities.

Claims arising under the Liability Insurance Policies particularly under B/L contracts will have to be supported by evidence of negligence on the part of the insured before a claim can be considered.

Further, under MTO documents sub-contracting is allowed and therefore even a sub-contractors will be involved in the claims procedure particularly to establish whether there is any negligence attributable to them which will enable the Liability Underwriters to take recourse to recovery from such sub-contractors under their own documents which may be a normal ship owners B/L, or a road transport receipt or railway receipt.

Container Specfications Table

CONTAINER TYPE OUTSIDE DIMENSION INSIDE DIMENSION

VOLUME

L W H L W H CBM

20' DRY BOX 6.0452.4382.4385.9182.337 2.2131

20' HIGH CUBE 6.0452.438 2.5915.9182.3372.41333

20' REEFER6.0452.4382.4385.385 2.1591.95623

20' OPEN TOP6.045 2.4382.4385.9182.3372.286 32

20' FLAT RACK6.0452.4382.438 5.6392.4132.311-

20' OPEN SLIDE 6.0452.4382.4385.9182.337 2.21031

40' DRY BOX12.1922.438 2.59112.0402.3372.33867

40' HIGH CUBE12.1922.4382.89612.040 2.3372.69276

40' REEFER12.192 2.4382.59112.0402.2352.159 58

40' REEFER HIGH12.1922.4382.743 12.0402.2352.31162

40' OPEN TOP 12.1922.4382.43812.0402.337 2.26164

45' HIGH CUBE13.7162.438 2.89613.5642.2862.69285

The insured accordingly will have to protect the recovery rights of the liability insurer in all cases where the negligence on the sub-contractor's part is established by evidence.

The Liability Insurance Policy is a contract of pure indemnity and therefore it does not guarantee all claims that arise unless such claims are established under the contract. Under the MTO of Goods Act and under MTO documents the time limit for taking legal action against the MTO is 9 months only.

CHAPTER-2

CHAPTER-2

COMPETITION WITH OTHER BUSINESSSEASKY LOGISTIC

Services

SeaSky Worldwide provides a wide range of services in logistics for shipping all types of products. We offer a dynamic array of services from exporting even personal effects to providing the logistics for large industrial projects, we offer it all...personally managed and professionally executed. Our export clientele range from Bio-Parma to Large Industrial Manufacturers to Small Family owned business. Our experienced staff provide our customers with the guidance and coordination to get their shipments to its final destination...without any hassles. Our operations in India cater to all modes of international and domestic transportation. For both Import and Export with N.V.O.C.C operations and customs clearance we provide in-house worldwide transportation of cargo by Sea and Air Freight. We also specialize in value added logistics, door to door services to ensure that we maintain control of our customers product at all times.

Shipping

Air Cargo

Baggage

Customs Clearance

Packing

TransportationGGL

GGL (formerly Golden Gulf Line) is a leading global Neutral Non Vessel Operating Common Carrier (NVOCC), and theglobal front -ranking consolidator. Built on a strategic and strong global network of agents and partners, and with 30 offices worldwide, we are committed to providing our clients with the most proficient, cost effective, reliable and quality transportation of their freight all across the globe. We operate our hubs at Singapore, Port Kelang, Colombo, Dubai in addition to offering direct groupage services to and from strategic worldwide points.

In course of our 18 years of operation, we at GGL have applied our expertise in the service industry and knowledge of the NVOCC market and achieved a reputation of delivering an unrivaled quality of standards, innovation and customer service. GGL, known for its hallmark for being a quality conscious organization, comprises of young and highly motivated professionals, dedicated to exceeding customers expectations and providing the ideal global freight transport solutions that international markets require from transportation partners worldwide.

Our relentless pursuit of unending excellence through innovation has earned us not only the trust of customers, but the admiration of our competitors as well. With GGL Lines extensive experience in the industry, you get a superior service which is known for its reliability

GGL LINE has started direct sailings to Busan for less-than-container-load (LCL) shipments.The line said that it feels the trade between Singapore and Busan continues to grow and it is the right time to enter the market. Machinery, garments, windmills, exhibition cargo and metals are among the items exported from Singapore to Busan.By using a number of ships the transit time from Singapore to Busan will be less than seven days.GGL Line is a separate NVOCC business division of the Dubai-headquartered logistics company, Freight Systems Ltd.

WSA

Introduction

WSA's position as a leading NVOCC / forwarder enables the choice of the more frequent, reliable sailings to any worldwide destinations.

Our team of international transportation specialists ensures punctual documentation and necessary procedures are followed-up, to achieve the delivery time that we have made ourselves committed to our customers as we named ourselves "Warranted Safe Arrival".

On top of our experience in operating our warehousing and long-term relationships with Customs globally, WSA ensures smooth customs clearance, cargo delivery, storage, and distribution.

Being the founder of WSA Lines back in 1983. I am delighted to take this opportunity to thank all members of WSA Lines who devoted their tremendous effort in making this 15th anniversary a glorious one. I would address this as our 2nd milestone because our 1st milestone was laid in 1994 after our Singapore office was established. Why? Our overseas offices started multiplying since then.

There are 39 offices in 14 countries at this moment of my writing. 1997 has been a historical year for Hong Kong. As a Hong Kong based company, we are proud of the return of Hong Kong to China. On top of that, the enormous resource from China benefited us. It was back in 1990 when the importance of cargo from China was foreseen, our first office was established in Shanghai, China in 1991. Until today we have 7 offices in China.

The combined cargo force formed a major foundation towards our success today and the years to come. In this ever changing market it's so competitive that envisioned our survival depends on having our own network. We are not blindfolded in expanding. Detailed market research and thorough consideration have always been behind our setups. Proven success of our Shanghai & Singapore offices was the main driving force in our rapid expansion.

It has been my good luck to have all these energetic, knowledgeable & aggressive young managers joining WSA Lines. With our experience and network, we form a perfect combination complimentary to each other. Technology brings human beings closer and makes the world smaller. We are fully aware that unless we are well equipped, decent service cant be provided. That's why our management spends great effort in studying the rapid developing technology world like computers, communications etc. With the backup our network, such can be induced into our system at an economy of scale. From then, it will be easier to link up with our future expansion into related industries like warehouse, inland transportation etc. We are not contented with our success at this moment. The precious experience, cargo source, client base, worldwide network, knowledgeable staff members etc, which we gained through the course of hard work in the past 15 years will form as part of our key resource for our future development.

Whereby we are looking forward to provide a point to point, multimodal, total logistics service to our valuable customers, as a token of appreciation for their valuable patronage. Most of all, we are looking forward to creating more job opportunity by our doing so, linking up the different cultures of mankind and making the world better place to live in. While in the meantime, our staff members may enjoy a better career achievement in the rapid expanding world of WSA. Yes, we work harder everyday.Vision

To WSA, no business is too small, and yet no business is too big. The unity of WSA network forms a powerful partnership unmatched by our competitors. WSA prides itself on its focus on the customers - our partners. We believe in long-term, mutually beneficial relationships with our customers and create value through collaboration to enhance customer competitiveness.

WSA understands that information technology plays a vital part in the container transportation industry and has been a pioneer in developing IT solutions for many years. Technology stands at the edge of this competition world. The more advanced it is, the more competitive one becomes in the market. That in turn will benefit our customers in long run in enjoying our economy of scale. We recognized this many years ago. There's no end to technology, but we are working hard to keep up with the most updated ones. WSA will remain at the forefront of IT applications and solutions for the industry.

MISSION

Customers

are always right. We apologize even when our customer complains by mistake, because we let it happen. Years from now, it does not matter how much was in our bank accounts, what houses we lived in, or what cars we drove. But it makes a world of difference because we make our customers smile.

Opportunity

think positive. Optimist sees opportunity in difficulty.

Success

doesn't come to us. We go to it. The moment we wonder win or lose, we'll probably lose. "Wai Shing" Originates from "Great Success" in Chinese characters.

Teamwork

allows common people obtain uncommon results. It collects individual accomplishment towards organizational objectives. We never doubt a small group of thoughtful, committed people can change the world. This is what made WSA today.

Venture

unless we have the courage to lose sight of the shore, we can never discover new continents.

Service

sales generates customers. Quality service keeps satisfied customers coming back to us

Insurance Coverage

To better serve your needs, we recommend and offer Marine Cargo Insurance for vessel, aircraft, rail and truck. Insurance will protect shipper and/or consignee when losses occur by providing full coverage of value or replacement cost. Cargo Claim Basics

To better serve your needs, we recommend and offer Marine Cargo Insurance for vessel, aircraft, railroad and truck. Insurance will protect shipper and/or consignee when losses occur by providing full coverage of value or replacement cost.

Your attention is drawn to the obligation of the customer/shipper/consignee to insure the goods under clause 21 of the WSA Lines Bill of Lading.

If a claim arises, please provide the following:

1.A letter of claim setting out the circumstances of loss/damage, with the name/voyage of the vessel, port of loading/port of discharge, WSA Lines Bill of Lading No., Master B/L details, ETA/ETD of vessel, destination of cargo and nature of loss/damage (e.g. location short landed)

2.Commercial Invoice

3.Packing/Weight List

4.Bill of Lading (Legible copies showing front and reduce of Original, will all endorsements thereon

5.Copies of any other B/L is issued/MBL

6.Insurance Certificate/policy covering the goods

7.Delivery Receipt for the cargo

8.Customs/Trade-Net declarations for the cargo/Import/Export Permits

9.Complete survey Reports with all attachments/photographs (clear originals)

10.Notice to carriers of loss / damage

11.All correspondence with parties on the claim, including carriers, freight forwarders, port authorities, insurers and hauliers

12.Port authority short landing/damage certificate if applicable

13.Statement of claim/loss computation from the claimant

14.Salvage/Disposal Certificate if damaged cargo has been disposed of

15.Repair estimates

16.Photographs/diagrams/pictures of the loss/damage, where available

17.Stuffing tally if stuffed by Customer/FCL shipments

18.Analysis Certificates

19.Airway Bills (if air cargo consignments)

20.Where applicable, the Sale & Purchase Contract for the goods

21.All documents which are in a language other than the English Language must be accompanied by a certified translation in English in order to be considered

ALL CARGO GLOBAL LOGISTICS

COMPANY PROFILE

Established in 1993, Allcargo has emerged as a leading Logistics service provider today. In just 13 years of its existence the Company has entrenched itself well, not only on the Indian logistics scene, but also at a global level achieving a global footprint through the acquisition of the Belgium based ECU Hold NV. Allcargo has always been the leading LCL (Less than a Container Load) consolidator in India offering direct outbound and inbound LCL groupage services to and from major cargo destinations worldwide.

Allcargos success stems from its commitment towards providing world class logistic services to international business. At Allcargo, the customer remains the focal point in the formulation of services that can be provided. This emphasis has led to a constant innovation in the services that we provide which in turn have enhanced our performance standards. We have added a host of services to our existing portfolio and are emerging as an integrated logistics player in the country.

Allcargos present operations are infive key areas of the logistics business:

Multi-modal Transport Operations

Container Freight Stations

Project Cargo Handling

Airfreight Transport LogisticsLarge as well as small exporters and importers often have cargo that is not enough to fill an entire container. To meet the requirement of shipping such LCL cargo, Allcargo offers Less than Container Load Consolidation services. Allcargo pioneered this service in India and maintains its leadership position in this business. With an extensive branch and franchisee network in India as well as a strong agent network internationally through ECU HOLD NV, Allcargo is able to deliver and receive cargo to and from over 4000 locations across the world. Our strong focus on offering direct services to a large number of locations, the Company has provided our customers with the advantages of reduced transit time, reduced handling of cargo and higher cost efficiencies.

Allcargo has also pioneered Multi City Consolidation in India. Multi city consolidation involves movement of cargo under a bond from inland locations particularly (ICDs) to gateway ports for export cargo and vice-versa for import cargo. Allcargo with its expertise in the business is capable of handling the entire chain in the process right from collecting the cargo from the shippers doorstep, aggregating LCL cargo, transportation under bond, re-working at cargo hubs and arranging carriage to final destinations. As for importers, the Company caters to the delivery needs of its clients at various ICD locations through Multi-City Consolidation.

FCL Forwarding

In addition to LCL consolidation, Allcargo also offers FCL (Full Container Load) forwarding services to its customers. With our leadership position in LCL consolidation and the large volumes of containerized cargo handled, we are also able to offer cost effective FCL forwarding solutions to our customers. Value added services such as ex-works pick-up and door delivery at desitnation, duty paid deliveries in various countries and a strong IT systems based information tracking has led to Allcargos growing presence in this segment of the logistics business.

Ever since its inception, Allcargo has been a committed player providing services to facilitate international and domestic trade. In a bid to further consolidate its position as an integrated service provider, the Company has also diversified into the dynamic world of air freight business. With air freight being an important element of supply chain management, Allcargo has not been too far behind in entering this fast growth sub-segment of the logistics industry. With an experience of nearly two decades in the freight market the company has developed capabilities of delivering sound services while simultaneously keeping customer costs on the lower side. ECU Line, the company acquired by Allcargo has a rapidly growing air freight business under the brand name ECU AIR and a global network of agents that facilitates the handling of in bound and out bound Air Cargo. Allcargo acquired the IATA registration in March 2006 enabling the Company to issue its own Airway Bill paving the way for rapid growth in this segment of the MTO business as well.Container Freight Stations are an extension of the port enabling the customs clearance of export and import cargo and the warehousing of cargo without congesting the ports. Though its entry into this segment has been quite recent, Allcargo has made rapid inroads graduating from the operation of just one CFS which commenced in 2003 to implementing two more Container Freight Stations at the ports of Chennai and Mundra. Its first CFS, the Transindia Logistic Park Container Freight Station located 18 KM from the Jawaharlal Nehru Port Trust is a state-of-the-art, ISO certified CFS. Spread over almost 23 acres of land it is fully equipped with a paved yard, warehouse area, reefer plugging point and a parking area for trucks. Having commenced with just 10 acres of land the Transindia Logistic Park has grown to 23 acres in just three years of its operations handling a storage capacity of 4000 TEUs. It can handle more than 10,000 TEUs per month on a continuous basis.

The two new projects under implementation will add another 104,000 TEUs per annum capacity in the first phase of development. The Chennai CFS is one of the closest to the Chennai Container Terminal and is spread over a 16 acre area and the first phase is planned to be commissioned by February 2007. The Mundra CFS spread over a 16 acre area will also be commissioned by January 2007. Land for the third project for an Inland Container Depot is under acquisition and when commissioned by end 2007 will add another 52,000 TEU capacity in its first phase of development.

CHAPTER-3

CHAPTER-3

TRADE PROFILE

India: Economy, Industry & Trade

A New EraThough agriculture has been the main preoccupation of the bulk of the Indian population, the founding fathers saw India becoming a prosperous and modern State with a good industrial base. Programmes were formulated to build an adequate infrastructure for rapid industrialisation. Since independence, India has achieved a good measure of self-sufficiency in manufacturing a variety of basic and capital goods. The output of the major industries includes aircraft, ships, cars, locomotives, heavy electrical machinery, construction equipment, power generation and transmission equipment, chemicals, precision instruments, communication equipment and computers. Early planners in free India had to keep in mind two aims: all-round development and generation of large- scale job opportunities. Economic development strategies were evolved with an eye on these twin objectives.

New International Economic OrderAs a responsible and progressive member of the international community, India is continuing her untiring efforts to bring about a constructive dialogue between the developed and developing countries in their quest for a cooperative approach towards a new international economic order. India is convinced that the establishment of an equitable international economic order involving structural and other changes is the only answer to the various economic ills and problems of development confronting the world today.

New International Economic OrderThe international confidence in India's economy has been fully restored. The reforms launched have made India an attractive place for investment. Duties have been lowered, repatriation of profit made liberal and levels of foreign equity raised considerably, 100 percent in case of export oriented industry. While several multinational companies have entered the Indian market, some Indian companies have also begun to gain international recognition. In the field of computer software, India is among the major exporting nations with an overflow of scientists in the field. The fourth WTO Ministerial Conference was held at Doha, Qatar from 9 to 14 November, 2001 to decide upon the future work programme of the WTO. While there were strong pressures to launch a comprehensive round of negotiations including multilateral regimes on investment, competition policy, trade facilitation, government procurement and environment, India was opposed to overburdening of the multilateral trading system with non-trade or new issues in the agenda. It felt that WTO already had a sufficiently large agenda consisting of mandated negotiations and mandated reviews and, therefore, India underlined the need for resolving the implementation issues, arising from the current agreements in a time-bound manner before addressing new issues for negotiations. India played a proactive role in the deliberations at the fourth Ministerial Conference at Doha. The outcome of the conference takes into account a number of concerns expressed by India. Exports, on the BOP basis, grew by 19.6 per cent in US dollar terms in 2000-01, accelerating sharply from the 9.5 per cent growth in the previous year. Total imports recorded a moderate growth of 7.0 per cent during 2000-01, much lower than the sharp increase of 16.5 per cent in 1999-2000. The moderate growth in imports during 2000-01 was essentially attributable to a 24.1 per cent increase in the oil import bill. Non-oil import growth, on BOP basis, remained subdued at only 2.0 per cent.

NRIs The government acknowledges the great role that the vast number of Indians living and working abroad, the NRIs, can play in accelerating the pace of development in the country. In the 1980s, the contribution of the NRIs through their remittances was instrumental to a large extent in stabilising the balance of payment s