Industry Research Project: CMA-CGM, Optimizing Bill of Lading Process

This industry research project examines the optimization of the Bill of Lading process to prevent cargo release delays, using CMA-CGM in India as a case study. The project investigates the problem statement, which highlights the increasing costs associated with ensuring timely delivery of goods, including infrastructure congestion, fuel costs, and environmental pollution. The research explores the theoretical framework, including the Bill of Lading procedure within CMA-CGM and various types of liability. It compares CMA-CGM's processes with those of Maersk and identifies gaps in previous research. The methodology employed and the proposed timeline are outlined, leading to recommendations for process improvement. The study focuses on maritime logistics and the significance of logistics choices in complex conditions, including the impacts of these choices on the environment and the climate. The project also addresses the importance of ecological productivity messages and the assignment of emissions in the supply chain. The research aims to understand the reasons behind logistical choices and how new collaborations create new business opportunities while removing obstacles regarding sustainability and intensity. The research also includes research questions, and a literature review, to provide a comprehensive analysis of the topic.

INDUSTRY RESEARCH PROJECT
OPTIMIZING THE BILL OF LADING PROCESS
TO PREVENT DELAY ON RELEASING CARGO AT
DESTINATION
A CASE STUDY OF CMA – CGM IN INDIA
May 12, 2018

Table of Contents
INTRODUCTION...........................................................................................................................................3
Problem Statement.................................................................................................................................3
An Ecological Productivity Message.......................................................................................................4
Rationale for Selecting the Particular Research Method...................................................................5
Research Objectives............................................................................................................................5
Research Questions............................................................................................................................6
LITERATURE REVIEW...................................................................................................................................7
Theoretical Framework...........................................................................................................................7
The Bill of Lading Procedure in CMA – CGM...........................................................................................7
Various Types of Liability....................................................................................................................9
Optimization of Bill of Lading Process to Prevent Delay on Releasing Cargo........................................9
Gaps in Previous Research....................................................................................................................11
Comparison of Bill of Lading with Maersk............................................................................................11
TYPE OF RESEARCH METHODOLOGY........................................................................................................13
Discussion.............................................................................................................................................13
Quotation (Work Estimate)..............................................................................................................14
Proposed Timeline............................................................................................................................14
Recommendations................................................................................................................................14
Concluding Remarks.............................................................................................................................16
References................................................................................................................................................18

INDUSTRY RESEARCH PROJECT Page 3 of 20
INTRODUCTION
The Guarantee of the fruitful monetary movement is the productive transportation, free
development of merchandise and the brisk traditions enrollment of the imported and
sent out cargo. Logistics is an intense instrument in service execution for lessening
expense and time, thus enhancing client service (especially time conveyance), cutting
discharges and saving the earth, relieving the effects of enactment, notwithstanding
beating absence of minimum amount while tending to new markets, geologies, and even
modular move.
Using the Suez channel brings numerous risks of losing cargo, and bosses now in the
association of enlarging robbery in the Indian Ocean area. It requires sizeable fund and
endeavors to set up free ships. Additionally, we can assume that organizations endure
broad harm because of demurrage. Grounded contentions and forecasts about points of
interest of the Northern ocean course to develop Arctic locales and cargo transportation
have been made by broad communications and driving research organizations
concerning navigation issues and difficulties (Ahmadi, Elsan & Noshadi, 2017).
As indicated by Svensson (2013) their distributions, ice shrinkage opens the Northern
ocean course to the year-round route. This can modify exchange courses by
fundamentally shortening shipping separations between Europe, North America, and
Asia, particularly Japan, China and expanding enormously turnover of fare and import
streams. For instance, the Northern ocean route can be used for export of metal and
compost from Russia and Europe, e.g. distribution of manure from Norway plants
Porsgrunn and Glomfjord to China; distribution (exports) of coal and wood from
Canada to the West shore of Europe (now they are sent out through Panama trench);
exports of grain from Portland and Seattle situated close to the West shoreline of the
USA to Europe and Russia; transportation of atomic fuel from England and France to
Japan (Bjørn, Haakon & Jan, 2012).

Problem Statement
Byung-In & Hokey (2017) argue that these days it isn't just the ownership of items that
are important, but instead the owner of items on time and in any event cost. The costs
that organizations look in ensuring that their merchandise is conveyed at the ideal time
and in the perfect place are developing: they result from framework clog, high fuel
costs, and tolls, also the expenses of natural contamination (especially CO2 outflows) to
society. Dealing with the time factor has basic effects on logistics expenses to the client.
Holding up times and defers put weight on plan unwavering quality. Lost minutes result
in lost dollars for shipping lines and their customers. Such a transport hall as goes in
extremely exceptional harsh and now and again hard to-foresee states of the sea. For
this situation, logistics includes time utility if the item is conveyed at the ideal time and
with low expenses. Time for this situation study suggests the travel time as the number
of cruising days on a port-to-port premise.
On the other hand, does this procedure prompt another potential for new logistics
arrangements or not? The development of activity and development of transportation
foundation affect environmental, social and financial areas intensely, but at the same
time are vital to the monetary prosperity of circumpolar people groups and districts. The
choices of logistics administrators can influence the accomplishment of ecological
methodologies at each phase of the store network. That is the reason logistics assumes
an unmistakable part of the execution of essentially any natural strategy (Charles,
Gerald & Daniel, 2011).
In the exploration, we concentrate basically on the maritime logistics. However, in the
meantime the study ought not to be discounted maritime transport despite that maritime
transport and logistics have customarily been seen as discrete sub-disciplines and have
been to a great extent treated in this regard by researchers. For our situation study, the
transportation hall as the such yet productive working of such a vehicle corridor relies
upon logistics. A transportation hallway delimits the services that drive logistics,
transportation, exchange and, consequently, their effects on the economy. That is the
reason in our study we join these the two originations and we are guided in this issue by

Samsul’s (2017) study though it is resolved that maritime logistics and transport have a
nearby union.
An Ecological Productivity Message
One of the procedures for coordination suppliers to aggressively separate themselves in
the market is to give an ecological productivity message to their clients. An essential for
this is the right estimation and designation of outflows in the strategic chain. This
designation can give knowledge into the obligation of various players and invested
individuals regarding carbon impression decrease. Besides, by apportioning the
emanations to a particular cargo transport unit, we can accomplish a similar reason for
every vehicle modes. This creates a conceivable examination and standardization of
discharges in multi-modal transportation. For a solitary cargo-transporters, such
allotment procedure is moderately straightforward. Notwithstanding, existing oceanic
coordination routes are commonly intricate.
Rationale for Selecting the Particular Research Method
These sea chains are normally made out of various modes of transport (for example,
rail, air, ocean), numerous service handlers such as freight organizations, harbor
experts, and shipment proprietors, in addition to different payload handlers (for
instance, wide-ranging cargo holders, consignments, mass cargoes, liquefied loads, as
well as travelers). Improving on this multifaceted nature, cars could be completely or
mostly stacked with various cargoes with different qualities, for example, compound
bearers, holder ships, and ships. Hence, the outflow assignment issue is inherently
unpredictable for oceanic coordination services, particularly when repositioning moves
are included. It is along these lines testing yet important to decide a reasonable method
to apportion the aggregate outflows to comparative units for various modes and cargoes
(for example, per holder, per bed, or per load).
Conveyance of cargo is the essential volume of a shipping vessel. It really is,
consequently, sensible to permit the discharges from delivery exercises to the distinctive
sorts of cargoes. From a coordination string viewpoint, this infers the cargo carried by
car manages all emanations and that the transporter itself is actually discharged free.

The desire behind an outflow part conspire is to mention these discharges to each one of
the cargoes associated with a string. This data can be employed via cargo proprietors to
choose their items' life routine carbon impression.
Research Objectives
The research venture will focus on an exchange about expanding the operational
proficiency and ecological supportability inside the vehicle and logistics frameworks
keeping in mind the end goal to comprehend the nature and value of logistics choices
having been made under complex conditions. The fundamental bearings of researching
are dictated by the following focuses and zones:
i. To inquire the reasons and causal relations for making logistical choices in
sorting out, giving and ensuring the route
ii. To examine the impacts logistics choices expedite on the earth and the
atmosphere
iii. To highlight on the limits amongst associations and how new sorts of
coordinated efforts make new business opportunities and evacuate deterrents
concerning manageability and intensity
iv. To give a perception of the procedures which convey new openings and
difficulties to future logistics choices or not, and why
In any case, the researcher considers that if maritime transport concerns the
transportation products via ocean, logistics is the capacity in charge of the stream of
materials from providers into an association, through activities inside the association
and after that out to clients. Yet, logistics goes further and as indicated by the meaning
of The Convention of Logistics Administration, it is that part of the list process that
plans, actualizes and controls the proficient, compelling flow and capacity of products,
services and related data from the purpose of-cause to the point of utilization with a
specific end goal to meet clients' prerequisites (Eon-Seong & Dong-Wook, 2015).
Research Questions
i. What are the reasons and causal relations for making logistical choices in sorting
out, giving and ensuring the route?
ii. What impacts logistics choices advance on the earth and the atmosphere?
iii. How do sorts of coordinated efforts make new business opportunities and
evacuate deterrents concerning manageability and intensity?

iv. What are the perception of procedures which convey new openings and
difficulties to future logistics choices?

LITERATURE REVIEW
Theoretical Framework
In light of these choices, the researchers investigated the assignment of global delivery
outflows by choices 1, 2 and 3. They proposed three-pointers to distinguish an
appropriate plan: natural viability, lawful adequacy, and reasonable weight sharing. In
addition, they contrasted their outcomes and those in view of choices 3 and 4 directed
by Sik & Bing (2017) as indicated by these three criteria. They inferred that the
alternative 3, assigning global delivery outflows inside a UNFCCC administration
based on the working organization ought to be the most ideal way. This conclusion
additionally suggests that it is really conceivable and important to assign the outflows
on a cargo level.
In spite of the fact that the previously mentioned papers and a few distributed rules from
various associations bolster organizations in estimating, revealing and dealing with their
carbon impressions, the principle worldwide carbon reviewing benchmarks, for
example, the GHG convention and ISO 16064, don't give adequate direction at the item
level when all is said in done, or for maritime logistics specifically. This is likely
because of the many-sided quality of logistics chains, as well as an absence of adequate
information.
Vinh & Gi-Tae (2015) talked about the issue with cargo-level carbon reviews of supply
chains. He recommended that the division of carbon discharges between dispatches
display a scientific test like that looked by transport financial specialists. The last
gathering has since quite a while ago talked about the assignment of normal and joint
expenses between the distinctive dispatches on a given vehicle. The designation decides
that organizations utilize are regularly in view of subjective judgments. At the point
when a store network contains numerous different cargo travels, the total impact of the
CO2 designation choices made independently for every leg can be generous. Be that as
it may, no particular guidelines of emanation portion have yet been displayed.

The Bill of Lading Procedure in CMA – CGM
As per the Bill of Lading Policy of CMA CGM, the “bill of Lading” were sent to the
Merchant in the sole risk, responsibility, and expenditure of the merchant upon sending.
The acceptance of the bill of lading involves a merchant agreeing to be destined by all
"stipulation, exclusions, Conditions and terms on the facial skin and again hereof,
whether written, typed, stamped or printed out, as fully as though agreed upon by the
Merchant". Furthermore, according to the plan of waybill vendor allows that in
acknowledging this "Bill of Lading it is, or gets the authority of, the individual owning
or eligible for the possession of the Goods and the Bill of Lading”.
In case the merchant was a “Non-Vessel Operating Common Carrier (NVOCC)”, the
intended trends in the issue of the contracts of the carriage to the third party needs to
cover the “Goods, or part of the Goods, transported by this Bill of Lading”. This has
been further able to guarantee that the different types of the process for the “Bill of
Lading” is seen to be imposed in terms of the conditions as it has been laid by the
NVOCC. Some of the carrier’s responsibility and the clause paramount has found
during the time of “loss or destruction" has occurred amidst "time of launching" of
"Goods by the Carrier" or either of the "Original Shipper", at the "Dock of Launch" and
the time of release by the Shipper, or the "Fundamental Transporter, at the Interface of
Release", the duty of the Transporter is settled in arrangement with the "Hague
Guidelines" or the "country wide legislation incorporating" or creating the "Hague
Guidelines", or any "amendments thereto, compulsorily applicable” to the “Bill of
Lading” (Glass, 2014).
The different types of the carrier responsibility and clause were based on the various
type the factors such as port to port shipment, combined transport, agency functions and
subrogation. It needs to be further seen that the notice of claim and while taking legal
action is based on the announcement for damage or loss of the “goods describing” the
exact “loss or damage” to the carriage at the dock of delivery and discharge. In case of
loss of damage is not seen to be apparent in the three consecutive days of the
distribution, the products have to be thought to have provided as given in the "Bill of
Lading". In virtually any case when the Carrier and its own Sub-Contractors will be

discharged from all responsibility according to of non-delivery, mis-delivery, wait, loss
or destruction unless the suit was helped bring within one (1) calendar year after
delivery of the products or the night out when the products must have been transported
(Papageorgiou, 2017).
Various Types of Liability
The various types of the liability of provisions were based on the compensation, ad
valorem liability, and delay. The prejudice was seen to be applicable as per the
limitation of the liability which was in agreement with the “provision set forth” in the
subclause and basis of the compensations which was intended to be limited to the value
of the goods damaged or lost. The value of the goods was determined as per the
“reference to the commercial invoice or the customs declaration”. In no situation the
carrier was seen to be answerable for the “indirect damage”, consequential damage and
loss of profit (Ahmadi et al., 2017).
The ad valorem liability was seen to be based on the various types of the clause where
the merchant is agreeing to the acknowledgment of the knowledge of the value of the
Goods. If the compensation is determined to be higher than the “bill of lading” then this
may not be requested unless there is a consent of the carrier.
Noteworthy work from various nations and locales has tended to discharge portion at
the national level. These depict the distribution of outflow remittances or on the other
hand focuses crosswise over districts or nations in view of at least one value standards.
When all is said in done, the discharges from all parts of life ought to be distributed
based on per capita, per unit GDP, or other scaling factors.
At this point, seven choices for distributing spreads to a specific country were proposed,
in light of (1) the degree to their national surges, (2) where the haven fuel was sold, (3)
the nationality of the moving association, or where the vessel was enrolled, or the
country of the chairman, (4) the take-off or objective of a vessel, (5) the take-off or
objective country of load or voyager, (6) the nationality of the explorer on flights or the
proprietorships of payload, (7) and how much releases are created in its coast-to-coast
territory. Be that as it may, a portion of these choices has been rejected later by SBSTA.

Optimization of Bill of Lading Process to Prevent Delay
on Releasing Cargo
When all is said in done, the bearer does not attempt the entry of the "merchandise at
the port of release" and whenever for a gathering of the different kinds of the circuitous
noteworthy misfortune. or then again harm caused because of postponement. On the off
chance that "previous bearer" was considered capable then the "transporter's obligation"
is constrained to the sea cargo and cargo which was under this "Bill of Lading for the
deferred Goods, elite of nearby charges as well as demurrage". Under the techniques for
courses of "carriage the freedoms set out in Clause 9 (1)" might be summoned by the
Carrier for any reason at all, regardless of whether related with the "Carriage of the
Goods", containing the stacking or emptying other "Merchandise, bunkering,
experiencing repairs, modifying instruments, grabbing or finding any Persons, including
however not restricted to people required with the activity or support of the Vessel and
helping Vessels in all circumstances". On the off chance that the carriage is probably
going to be influenced by the "obstruction, chance, postponement, trouble or
inconvenience of any sort" (Kantor, 2018).
As stated by Kurban and Kurban (2016), the delays in the shipment were caused by the
various types of the factors which include “vessel delays, logistic constraints and lack of
proper coordination of the freights”. In general, the delays in the vessel were also seen
to take place due to the factors such as port congestions, bad weather and changes in the
service schedule. The lack of storage equipment of the delivery was critical for the
service providers who needed to wait until appropriate space was attained. The changes
in the service called for the need of timely delivery of goods by giving various efforts in
reducing the longer times.
These solutions were further seen to be based on the various types of the different
considerations which will be able to employ proper planning in advance and
considering the expected delivery thereby calculating the most probable time for transit.
CMA CGM needs to plan for maintaining sufficient scope for emergency stocks to
enable continuous production in case there is any delay in the raw material. It has been
further seen to be important to check for expected weather conditions, holidays in

different parts of the world and in making a better plan for evaluating the necessary
factors. The important documents were recognized to be an integral part of solving any
issues caused by delay as the routes and destinations are taken into consideration (Ho,
2016).
Gaps in Previous Research
Based on the previous research to be of lading is identified as a legally binding
document required for processing of the final shipment. However, there has been no
evidence collected which shows that the company has provision for including additional
charges such as accessorial in the present “bill of lading”. This should have resolved by
the company by issuing a separate freight bill along with the “bill of lading”. The study
on the optimization has revealed that CMA CGM lacks provision for factors such as
port congestions, bad weather and changes in the service schedule. There is no
provision created in the “bill of lading” for such unforeseen conditions.
Comparison of Bill of Lading with Maersk
As per the carrier’s Tariff of Maersk, the main attention was given to the free storing
time and to the holder and "vehicle demurrage or confinement". The principal type of
the germane arrangements apparently was relevant with the Tariff which is available
from the bearer upon ask. In the event that there has been any type of irregularity in the
"bill of replenishing" and duty, the sum recommended in the "bill of filling" might win.
It has been additionally observed that the shipper warrants in favouring to the terms and
conditions which a man is qualified for according to the "bill of replenishing". The
"sub-contracting" of the bearer apparently was qualified for the "subcontract on any
terms at all the entire or any piece of the Carriage".
The transporter's obligation as far as the sea transport was seen with the endeavour the
"carriage from the port of stacking" and "port of release". The "risk of the Carrier for
loss of or harm to the Goods" apparently was happening from the season of getting
according to the bearer of care of products at the stacking port and "Transporter offering
the Goods for conveyance at the Port of Discharge might be resolved as per Articles 1-8
of Hague Rules spare as is generally given in these Terms and Conditions". These