Cochin can be hub for transshipment cargo
The freight forwarding and logistics industry is passing through a turbulence. The Federation of Freight Forwarders Association of India (FFFAI) is working hard to ensure support to its members through various initiatives, the FFFAI Biennial Convention is
How is FFFAI bridging the gap between industry stakeholders and the government for more growth?
We are undertaking many contact programs amongst all stakeholders to enhance general awareness on actual requirements and proper compliance. We are also undertaking training programs for our members and their staff to improve their domain knowledge and thereby a proper application of the knowledge can be acquired.
We are in the service sector and we are directly depended on the volume handled by our clients. Since the volumes of export is down, the amount of work undertaken by us has come down. We work on fixed cost and very thin margins. This has resulted in directly affecting our members. How crucial is freight forwarders’ role in setting the export target?
We at FFFAI are addressing ‘speed of doing business’ since ‘ease of doing business’ would be better tackled by the regulatory authorities. Reduction of dual time is very important for all stakeholders. The step to be taken by all has a common agenda with a clear understanding that we are working for national interest and not individual benefit.
If government can initiate and facilitate a dialogue with a complete holistic approach, we will achieve much more than what we have set out to achieve. The role of the government should be to facilitate such actions. And, FFFAI is committed to support our export community through our expertise as service providers pertaining to clearances of shipments, transportation and other logistics services. Would you like to talk about the milestones you have achieved during your tenure?
FFFAI has been included in the constituted National Committee on Trade Facilitation (NCTF), which was recently constituted by the Government of India, under the Chairmanship of the Cabinet Secretary. NCTF was formed as per the WTO Trade Facilitation guidelines.
We are also constantly interacting with Ministry of Commerce; Shipping, Road Transport & Highways; Civil Aviation; Micro, Small & Medium Enterprises; Skill development; CBEC, to name a few for making logistics a powerful profession. We are moving towards very positive directions. FFFAI’s constant initiatives were to strengthen paperless transactions. Custom’s ‘Single Window Clearance’ and ‘paperless’ initiatives are welcome movements and they show that the government is prepared to walk the talk.
It is necessary that issues like RMS, Ex-bond, etc., i.e. manual out of charge should be replaced by system out of charge. Customs has informed us about the various new initiatives they are taking to become paperless. The processing procedures have not changed at the front end. Receiving the paper from the department should be done away with. It is important that the process is revamped to achieve true facilitation. Where do you see the need for adoption of technology in the system?
Digital operations and cashless transactions will be the future model. On the other hand, increasing compliances and safety and security issues will be making the freight forwarding and logistics business very sensitive. Without robust technology and proper skill and domain knowledge it would be difficult to grow in this sector.
More than the need for new workforces, it is necessary that the existing workforce becomes more capable, knowledgeable and domain driven. All those who will not be able to adapt the same would be rendered for the logistics sector. It is, however, to be understood that many new Exim facilities are going to come up in the country. These would require new people since the industry segment would be established over in those occasions for the first time. The number would depend from clearly on the size and the scale of the new facility being credited.
Custom’s ‘Single Window Clearance’ and ‘paperless’ initiatives are welcome movements and they show that the government is prepared to walk the talk
Why have you chosen Kochi for the 23rd FFFAI biennial convention?
Kochi has been selected to highlight the tremendous importance of this strategic location and India’s southern region. Cochin can be further strengthened as a gateway point for transshipment cargo in the region. What are your expectations from the convention?
At this convention, there will be a significant number of overseas delegates from Malaysia, Sri Lanka, Bangladesh, Singapore, the UAE, etc. There will be a specific focus on international market trends, economic developments in India and fast-changing policies and compliances. Domain experts will discuss topics both from India and other countries.