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Presentation By:Mansi Goenka - 09020241011Vishal Singh- 09020241020Aastha Kalra- 09020241049Mansi Sanghvi- 09020241087Ritika Gupta- 09020241125Rohan Munot- 09020241131
DHL (India - Colombia)
India Colombia Trade
TRADE ROUTE
COLOMBIA IINDIA
Major Ports
Net Exports
REGION/COUNTRIES APR-MAR 2010 %GROWTH %SHAREEUROPE 38,527.20 -8.44 21.56
AFRICA 10,307.55 -9.51 5.77
AMERICA 26,862.58 -6.36 15.04
CIS & BALTICS 1,687.94 -12.3 0.94
TOTAL1,78,662.16 -3.58 100
Net Exports From India
50%
13%
35%
2%
Apr-Mar 2010
1) Europe 2) Africa 3) America 5) CIS & Baltics
Exports To America (US$ mn)
73%
4%
9%
3% 2%
1%
7%
Apr-Mar 2010
U S A CANADA BRAZIL BAHAMAS MEXICO COLOMBIA OTHERS
REGION/COUNTRIES APR-MAR 2009 APR-MAR 2010 %GROWTH %SHARE
EXPORTS to COLUMBIA 370.22 389.04 5.08 0.22
Net Imports
REGION/COUNTRIES Apr-Mar 2010 %Growth %ShareEUROPE 53,978.91 -3.81 19.2 AFRICA 20,216.97 9.13 7.19 AMERICA 28,809.72 -5.12 10.25ASIA & ASEAN 1,74,569.49 -7.38 60.86 CIS & BALTICS 5,931.37 -8.68 2.11UNSPECIFIED REGION 1,071.24 -24.33 0.38
TOTAL 2,81,086.30 -5.56 100
IMPORTS TO INDIA
19%
7%
10%61%
2% 0%Apr-Mar2010
1) Europe 2) Africa 3) America 4) Asia & ASEAN 5) CIS & Baltics 6) Unspecified Region
19%
7%
10%61%
2% 0%Apr-Mar2010
1) Europe 2) Africa 3) America 4) Asia & ASEAN 5) CIS & Baltics 6) Unspecified Region
Imports from America
71%
7%
6%
4% 3% 3%0%5%
Apr-Mar 2010
U S A CANADA CHILE MEXICO BRAZIL ARGENTINA COLOMBIA OTHERS
REGION/COUNTRIES APR-MAR 2009 APR-MAR 2010(P) %GROWTH %SHARE
IMPORTS 75.2836 83.78 9.06 0.03
Trade Figures (in US$ Mn)
2006 2007 2008 2009 2010 2011 (P) 2012 (P) 2013 (P) 2014 (P) 2015 (P) 2016 (P) 2017 (P) 2018 (P) 2019 (P) 2020 (P)
EXPORT 445.92 564.30 744.94 362.82 381.26 468.95 391.93 363.73 335.53 307.33 279.14 250.94 222.74 194.54 166.34
IMPORT 9.17 75.28 82.10 17.09 415.67 511.27 531.76 630.81 729.85 828.90 927.95 1026.99 1126.04 1225.09 1324.13
2006 2007 2008 2009 2010 2011 (P)
2012 (P)
2013 (P)
2014 (P)
2015 (P)
2016 (P)
2017 (P)
2018 (P)
2019 (P)
2020 (P)
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
1400.00
TRADE BETWEEN INDIA-COLOMBIA
EXPORTIMPORT
US$ Millions
Expected Growth
• Bilateral trade between India and Colombia expected to increase around 23% to $1 bn in 2010-11.
• "Six Memorandums of Understanding (MOUs) have been signed between various Colombian and Indian universities
• Principal products of trade being oil, coal, sugar, candies, wood furniture, petrochemicals, home furnishing and emeralds.
• Food processing and education are sectors where there is potential for Colombian investment in India.
EXPORT ITEMS
30%
15%
12%
12%
9%
11%
2%3%
3% 2%
CIF value in US million Dollars
Equipment for motor vehicles (CKD form) Vehicles other than railways Organic Chemicals Miscellaneous Chemical ProductsPharmaceutical Products Cotton yarn and woven fabrics of cotton Articles of Iron and Steel Machinery and Mech. AppliancesIron and Steel Man made Staple Fibers ‐
EXPORTS
2005-06 2006-07 2007-08 2008-09 2009-100
20
40
60
80
100
120
140
EXPORTS
Equipment for motor vehicles (CKD form) Vehicles other than railways Organic Chemicals Miscellaneous Chemical ProductsPharmaceutical Products Cotton yarn and woven fabrics of cotton Articles of Iron and Steel Machinery and Mech. AppliancesIron and Steel Man made Staple Fibers ‐
USD (M
ILLION)
IMPORT ITEMSFOB Value in US million Dollar
Mineral Fuels, mineral oils
Plastics and Articles thereof
Wood and articles of wood
Sugars and sugar confectionery
Inorganic Chemicals
Copper and Articles thereof
Lead and Articles thereof
Aluminum and Articles thereof
Glass and Glassware
Iron and Steel
IMPORT ITEMS
2005-06 2006-07 2007-08 2008-09 2009-100
50
100
150
200
250
300
350
400
450
IMPORTS
Mineral Fuels, mineral oils Iron and Steel
USD (M
ILLION)
IMPORT ITEMS
2005-06 2006-07 2007-08 2008-09 2009-100
0.5
1
1.5
2
2.5
3
3.5
IMPORTS
Plastics and Articles thereof Wood and articles of wood Sugars and sugar confectionery Inorganic Chemicals Copper and Articles thereof Lead and Articles thereof Aluminum and Articles thereof Glass and Glassware US
D (M
ILLION)
EXPORTERS IN COLOMBIA
• GLASS EXPORTERS IN COLOMBIA• VALLENCILLA B and VALLENCILLA M - VACUUM FLASKS AND OTHER
VACUUM VESSELS, COMPLETE WITH CASES• ASRQUICENTRO DEL PRADO S.A. - GLASS • INDUSTRIAS METALURGICAS UNIDAS SA.IMUSA - VACUUM
FLASKSAND OTHER VACUUM VESSELS• SEBLICO LTDA - LAMINATED SAFETY GLASS OF DIMENSIONS AND
FORMATS
EXPORTERS
• IRON AND STEEL EXPORTER IN COLOMBIA• CAMILPO ALBERTO MEJIA Y CIA S.A. - NAILS, TACKS,
THUMBTACKS, CORRUGATED NAILS, STAPLES, AND SIMILAR ARTICLES, OF IRON OR STEEL
• C.I. VEGAPROYECTOS S.A. - NAILS, TACKS, THUMBTACKS, CORRUGATED NAILS, STAPLES, AND SIMILAR ARTICLES, OF IRON OR STEEL
• BELLOTA COLOMBIA.S.AU - NAILS, TACKS, THUMBTACKS, CORRUGATED NAILS, STAPLES, AND SIMILAR ARTICLES, OF IRON OR STEEL
EXPORTERS
• WOOD AND ARTICLES OF WOOD • SC JOHNSON & SON COLOMBIANA S.A. • TECNOSALUD AMERICA S.A.- FURNITURE OF WOOD• CARWEN IMPORTEX LTDA -FURNITURE OF WOOD• SHEBA S.A. - WOODEN FURNITURE OF THE TYPE USED IN THE
KITCHEN and dormitories
EXPORTERS
• INORGANIC CHEMICAL• PROMINERALES S.A. - PREPARATIONS AGLUTINANTES FOR
MOLDS OR NUCLEI OF SMELTING; CHEMICAL AGENTS AND PREPARATIONS OF THE CHEMICAL INDUSTRY OR THE CONNECTED INDUSTRIES
• INDUMIL PARA ABONOS COLOMBIANOS S.A. - MINERAL OR CHEMICAL FERTILISERS
• INDUMIL PARA ABONOS COLOMBIANOS S.A. - MINERAL OR CHEMICAL FERTILISERS
• COMPANIA COLOMBIANA DE INVERSIONES AGRICOLAS S.A. - MINERAL OR CHEMICAL FERTILISERS
EXPORTERS
• SUGAR• CI DULCES LA AMERICANA S.A. - CHICLES AND OTHER RUBBERS
TO CHEW COVERED OF SUGAR• DCOMPANIA DE GALLETAS NOEL S.A.-CHICLES AND OTHER
RUBBERS TO CHEW COVERED OF SUGAR• C.I. COMERCARIBE - DUST CACAO WITH SUGAR ADDITION OR
ANOTHER SWEETNER
• PLASTIC• AJOVER S.A.-USUARIO - PLATES, LAMINAE, BLADES AND STRIPS,
OF NONCCELLULAR PLASTIC• FORMIPLASS. S.A. - SOLES AND HEELS, OF RUBBER OR PLASTIC• INDUSTRIAS ESTRAS S.A. - INDUSTRIAS ESTRAS S.A.
EXPORTERS
• COPPER• CAMILPO ALBERTO MEJIA Y CIA S.A. – NAILS, TACKS,
THUMBTACKS, STAPLES• GENERAL METALICA S.A.- NAILS, TACKS, THUMBTACKS,
CORRUGATED NAILS, STAPLES,• COMPAÑIA COLOMBIANA DE MEDIDORES TAVIRA S.A.-
copper alloys
• LEAD• IBN DE COLOMBIA S.A. – lead batteries• MAC SIA - lead
EXPORTERS
• OIL• ORGANIZACION TERPEL S.A. – lubricating oil• C.I. COMERCARIBE – butter, fat, oil of cacao• CHOCOLATERIA COLOMBIANA SOCIEDAD ANONIMA CHOCOLSA- butter, fat, oil of cacao
• SHELL COLOMBIA S.A. – lubricating oil
• ALUMINUM• Industrias Lehner S.A. – aluminium window and door
manufacturers
IMPORTERS OF COLOMBIA• EQUIPMENT FOR MOTOR VEHICLES (CKD FORM)
• OTTO BOCK HEALTHCARE ANDINA LTDA – tyres• TALLERES AERONOAUTICOS AVIOPARTES LTDA. – tyres• CABARRIA Y CIA. S.A. - tyres
• VEHICLES OTHER THAN RAILWAYS• DRUMMOND LTD. - other self propelled trucks• TRASNPORTES MAX PAEZ LTDA – other self propelled trucks
• MISCELLANEOUS CHEMICAL PRODUCTS• JANSSSEN CILAG S.A. – contraceptive chemical warfare• LABORATORIOS ALCON DE COLOMBIA S.A. – preparations aglutinantes for
molds or nuclei of smelting
IMPORTERS OF COLOMBIA• PHARMACEUTICAL PRODUCTS
• GLAXOSMITHLKINE COLOMBIA S.A. – medicines for human use• NOVARTIS DE COLOMBIA S.A. - medicines for human use• FROSST LABORATORIES INC.. . - medicines for human use• INDUSTRIASL FARMACEUTICA UNION DE VERTICES DE TECNOFARMA S.A. .
- medicines for human use
• COTTON YARN AND WOVEN FABRICS OF COTTON• TEXTILES OMNES S.A.- EN REESTRUCTURACION – combed wool rolled in balls• IMPPORTACIONES DEL VALLE LTDA – cotton• LAS MARAVILLAS S.A. – other woven fabrics
• ARTICLES OF IRON AND STEEL• HABITAT STORE S.A. – other metal furniture• OMEGA TECH LTDA. - metal furniture used in offices
IMPORTERS OF COLOMBIA
• MACHINERY AND MECH. APPLIANCES• HYUNDAYU COLOMBIA AUTOMOTRIX S.A. – vaccum pumps• ECOFILL LTDA – vaccum pumps• NUEMATICA DEL CARIBE S.A.
• IRON AND STEEL• SOFASA-SOCIEDAD DE FABRICACION DE AUTOMOTORES
S.A. – springs and leaves for springs of iron or steel• HERRAMIENTAS Y SEGURIDAD S.A. – nails , tacks ,
thumbtacks , corrugated nails , staples of iron and steel
Glass • Queen Ceramics ---------- -------------------Glass Enamel Transparent V3746 Paints• Borosil Glass Works Limited -------------- Glass Enamel White• Hindustan National Glass Inds Ltd ------ Acl Colour (Ceramic Colour) Ctrh695/60/25
Green Glass• Precision Electronic Component ---------- Brown Resistances Enamel Glass
Iron and steel • Incone Agencies Pvt. Ltd ---------------- 6100 P3 Ug 1200mm Enamel Steel Coil White
With Protection Foil (Enamel Steel Coils)• Funskool ( India ) Limited -------------- Used Steel Toy Moulds For Plastic Toys 376• Supreme Heatreaters PvtLtd ----------- Alloy Steel Billet Sae-52100• Sanees Alloys Private Limited ---------- Graphite Crucible D=176x250 With Ceramic Inlet
For Steel Cast• SHIVALIK BIMETAL CONTROLS LTD --- Steel Strip Durphynox
INDIAN EXPORTERS TO COLOMBIA
Wood and articles of wood • Ram Achal Trading CO. ---------------------- Wooden Furnirure• A K Lumbers LTD. ---------------------------- Wooden Furnirure• SIDCO ---------- -------------------------------- Wooden Furnirure• Asv Enterprises ------------------------------- Wooden Toy• Shubhchintak Trading CoPvt Ltd --------- Wood Car(Toy)
Inorganic chemical• Panchsheel Organic Ltd. ----------- Chemical Non Bulk Drug• Lilac Medicare Pvt Ltd -------------- Analyzer For Enzyme for biochemicals ,
hormone and drug Level investgations • Cpc Pharmaceuticals Private Lt ----- Auto Analyzer for Enzymes Drug Levels
and Bio Chemical investigations• Johnson & Johnson Limited -------- Analyser For Enzymes, Drug Levels & Bio-
chemical Investigations • Asian Paints (India) Ltd. -------------- Instument For Physical Chemical Anaylsis
INDIAN EXPORTERS TO COLOMBIA
Plastic• Aroma Chemical Agencies (India) Pvt ---------- Paint & Plastics Additives• M.M.Corporation ----------------------------------- Plastic toys• Sri Krishna Fireworks Industries------------------ Plastic Toys• Ferreira Industries ---------------------------------- Plastic Toys• Asian Trading Company --------------------------- Plastic Toys
Copper• Salora International Ltd -------------------------- Copper Wire• Osna Electronics P,ltd ---------------------------- Copper Wire
INDIAN EXPORTERS TO COLOMBIA
Oil• Kochi Refineries Ltd --------------------------------- Mirilight Crude Oil• Bharat Petroleum Corporation Ltd ---------------Petrolium Crude Oil• Chennai Petroleum Corporation Limited ------- Crude Oil • Oil India Ltd --------------------------------------------- Crude Oil• Mihijam Vanaspati Ltd ------------------------------- Crude Palm Oil• S.S.D.Oil Mills Company Limited ------------------- Crude Palm Oil Aluminum• Camlin Ltd. -------------------Pretreatment Paint For Aluminium Barrel• GEA Energy System ( INDIA ) Ltd -------- Aluminium Seamless Tubes
INDIAN EXPORTERS TO COLOMBIA
Equipment for motor vehicles (CKD form)• A M Impex ------------------------- Leather seat covers• Shree Krishna Ltd ----------------- Bolts and nuts • Euro Impex ------------------------ Spare parts for two wheelers• Conic Automotive Pvt Ltd ------ Auto ancilliary parts• Autolite (INDIA) Ltd. -------------- Automotive head lamps• Bindra Motors Pvt Ltd ----------- Motor Vehicle spare parts and accessories
Machinery and Mech. Appliances• Hydraulic Engg Works ------------------ Hydraulic press• Samra International Pvt. Ltd. -------- Machinery and equipment• K B M Industries ----------------------- Spares for plastic machinery• J. J. Enterprises -------------------------- Packing machinery• Kaizen Engineers ----------------------- Machinery• Unitech Industries ----------------------Textile machinery
INDIAN IMPORTS FROM COLOMBIA
Organic Chemicals • Richfield Impex Pvt Ltd ----------------------------- Paint Removing Chemical• Indofil Chemicals Company------------------------ Non Dangerous Chemicals• Stp Limited ---------------------------------------------Non Dangerous Chemicals• Pranam Plasti-mech Exports Pvt Ltd -------------Chemicals For Paint Industry• Prime Organic Products ----------------------------Organic Chemicals• Nandu Chemical Industries ------------------------Non Hazardous Chemicals
Pharmaceutical Products • Abbott Health Care Private Limited ------------- Medical Instruments• Siber Hegner India PvtLtd -------------------------- Food Products related non
dangerous chemicals• Excellon International -------------------------------Laboratory Equipments
INDIAN IMPORTS FROM COLOMBIA
Cotton yarn and woven fabrics of cotton• Jai Overseas ---------------------------- Cotton knitted readymade garments • S M International ---------------------- Readymade cotton garments• Avanti Fashions Pvt Ltd ---------------- Woven readymade garments• Marshal Overseas PvtLtd -------------- Readymade garments• R.K.Textiles -------------------------------- Readymade garments Articles of Iron and Steel• SHALIMAR ENTERPRISES --------------- Alloy Steel Furniture• DEE TEE INDUSTRIES LTD., -------------- Spares for machinery• Drillco Seco Ltd ---------------------------- Alloy Steel Forging Machine Iron and Steel • JTChanrai Industries Pvt Ltd ------------ Industrial Machinery • Jams Castings Pvt Ltd --------------------- Castings of Steel Alloy Steel• Venus India ---------------------------------- Steel parts
INDIAN IMPORTS FROM COLOMBIA
EMAILS
EMAILS
TNT Express (Thomas Nationwide Transport Express)
Services :• Express delivery services – time and day definite services• Special services – special handling services• Industry solutions - Generic solutions, industry specific solutions• Outsourced services – Archive & records management
-Financial & banking distribution-Mailroom & facilities management-Project management
2 shipping systems –• ExpressShipper- This is for businesses which ship low to medium volumes.• ExpressManager - This is for businesses which ship high volumes.
Sectors: Automotive, Industrial, Telecom , Electronics, Computers, Healthcare, Lifestyle , Postal sector
COMPETITORS
UPS(United Service Parcel)
Services:• Time – definite and day-definite services• Value- added services- Saturday – delivery, delivery confirmation(signature on each
package)
Sectors:• Apparel• Automotive• Computer• Electronics• Healthcare• Manufacturing• consumer goods
COMPETITORS
Federal ExpressServices –• FedEx International Priority – time- definite delivery around the world, for packages upto 68
kg• FedEx International Economy –for packages weighing 69 kg and 1000kg• FedEx International Priority Freight – time- definite,customs cleared in 1-3 business days,
for packages weighing between 69kg and 1000kg• FedEx International Priority Freight – time- definite,customs cleared in 4-6 business days,
for packages weighing between 69kg and 1000kg Sectors – • Automotive• Industrial• Telecom• Electronics• Computing• Healthcare• Postal sectors• Apparel
COMPETITORS
Services :• Express delivery services – time and day definite services• Special services – special handling services
Sectors: Automotive, Industrial, Telecom , Electronics, Computers, Healthcare, Mining, Oil
COMPETITORS
What are the HR requirements to handle the trade lane?
Basic Organisational Structure
Country Manager
Business Development
Solution Design &
Implementation
Finance HR IT Operation Excellence
Operations Manager Supervisor
Manager Route Development
Basic Organisational StructureManager
Route Development
Manager international
logistic
Cargo and freight agent
Drivers and forklift/boom
operatorsInbound Out bound
Marketing Dispatch
Packaging Sales
Manager marketing
Manager Service
Rejection Complain Returns
Centralised or Decentralised
System
• Organisation structure and other HR policies in place.
• Hierarchy• Provide consistent
service globally through
1. Expatriates2. Training to individuals
Job Analysis
Job Descriptions
Job Specifications
Job Analysis and Job Evaluation
What is a Job Description
How does it help the organisation
How does it help the employee?
• Broad banded structure– High turnover– Motivation
Grading Structure
• Pay for performance• Incentives are based on the
individual’s performance• Organisational profit sharing
will not be much effective
Incentives
Sr. No. KRA Tasks Competency MOP
1.
Key Result Areas
• Transfer of best practices• Transfer of explicit knowledge• Competitive edge
Knowledge Sharing
• Policies for leave structure of the organisation• Office timings• Working hours• Holidays etc.
Other policies
How will you train employees to make them successful in handling this trade
lane.
Training is the planned and systematic modification of behaviour through learning events which enable individuals to achieve the level of knowledge, skills and competence necessary to carry out their work effectively
Training
Needs Assessment
Needs Assessment DesignDesign Implement
ation
Implementation EvaluationEvaluation
PhaseOne:
PhaseTwo:
PhaseThree:
PhaseFour:
Systems Model of Training
Bridge the Cultural Gap
• Physically demanding work• Maximum accidents due to slips, trips, hazards
and manual handling incidents.• Training in handling of goods• Handling of fragile goods• Self health and Safety measures
Safety of employees and goods
• Strong communication skills• Efficient negotiating abilities• Image building of the organisation• Bargaining Power
Communication Skills Development
• Pace of technology change• Tracking the courier• Knowledge Sharing• Best practices
Latest technology
• Training of one employee to do another's work.
• Monotonous tasks leading to high turnover• Cross training helps in job rotation
Cross training
• Contract – Loading– Security– Cleaning services
Knowledge of Contract labor Act
• MAERSK Shipping
• Shipping Corporation of India
• Mediterranean Shipping Company
Services offered by Companies
MAERSK Shipping
More than 500 vessels and containers with a capacity of more than 1,900,000
TEU
World’s leading Reefer Carrier
Available 24x7
Special features of ContainersDry Containers•Hanger beams•Extra door width versions•Bull rings and lashing bars•Ventilated containers for crops
Reefers•Dehumidification system ensuring optimum
humidity.•Controlled atmosphere•Environmentally friendly CFC free R-134A
refrigerant•Super freezers : 60°C/ -76°F
Special Equipment •20' and 40' flat racks and artificial tween decks
(ATD) having fixed or collapsible end walls. •20' and 40' open top containers having
removable roof bows and tarpaulin covers.
• Refrigerated Services – StarFresh, Magnum, StarVent, Sorties, SuperFreezer, Stuffies, Blast Freezers
• E-business facility.• Switch transport and legislation documents• Container stripping/stuffing• Carrier provided packaging• Multi-stop charge• Cross Booking• Electronic cargo release etc.
Other Services
Charges
Registration on Maersk
Reply from Maersk
Shipping Corporation of India
• One of India’s largest shipping lines.• providing overseas Liner Break-bulk services • Towing & Anchor handling operations in Offshore.• Carriage of men and materials ( fuel oil, bulk cement and byrite,
deck cargo, refer cargo, pot water, drill water etc. ) between base and offshore installations as well as between Offshore installations.
• Carry out standby and rescue operations in offshore, if required.• Carry out routine surveillance in offshore for safety and security
reasons.• Standby at SBM Tankers in Offshore.• Carry out Fire Fighting duties by FIFI vessels.
Services Provided
• SCI also offers Operations, manning, maintenance and Management (O&M) services of following vessels owned by Indian E&P Company, Oil & Natural Gas Corporation Ltd. (ONGC):
• Seismic Survey Vessel• Well Stimulation Vessel• Multi Support Vessel• Diving Support Vessel• Geotechnical Vessel• Offshore Supply Vessels.
Services Provided
Mediterranean Shipping Company
• 2nd largest container operator in the world
• Shipping line of the year award – 2008
• Voted as best Ocean Carrier – 2007
Mediterranean Shipping Company
SR NO VESSEL NAMETEUs CAPACITY
(REEFER ) IMO NO FLAG OWNERYEAR OF
BUILT CLASS NO GRT NRT
FALCON SERVICE AT NSICT
1 MSC GERMANY 2708 (R-217) 7502928 LIBERIASEATRUST
SHIPPING INC 1978 GL-11597 38991 13039
2 MSC AMERICA 2680 (R-150) 9008603 PANAMA
COMPANIA NAVIERA
AMERICA S.A 1993 GL-33398 34231 16058
3 MSC PALERMO 2680 (R-150) 9008548 LIBERIAREEDEREI F.
LAEISZ GMBH 1992 GL 34231 16058
4 MSC FINLAND 3032(R-262) 8511184 LIBERIAHINTER MARINE
S.A 1986 NKK 42000 21308
5 MSC CORINNA 2415(R-214) 8208684 PANAMA LATMIC CORPN 1984 ABS 32703 13904
6 MSC CLAUDIA 2594(R-120) 7104673 PANAMAHEDRAS INTL
CORPN 1971 GL 50303 19695
Vessel Characteristics
Mumbai
Mundra
Freight and Profit Projection
1. Trade done by all 4 vessels is the same i.e. 25%2. Profits % is assumed3. Revenue in first year = 1% of total market share of
the international trade by ship between India and Columbia
4. Cost = Freight + Demurrage + Other Expenses5. Demurrage increases by 10% every 3 years6. Revenue increases by 10% every year.7. Other expenses increase by 10% every year.
Assumptions
Profit/Volume Projection
For any company to predict future profits one has to know the quantity in which one has to trade. At a given volume if profit is predicted, one may not be able to get the optimum profit.
So instead of defining a quantity at which profits will be projected, we define the expected profit percentage and then project the volume that needs to be couriered in order to achieve this profit.
Containers Cost per unit - USD (Million)
Freight Demurage (Fr + Dem)
LCL 20’ Ft. Cont 664 10 674
40’ Ft. Cont 1190 20 1210
FCL 20’ Ft. Cont 1134 20 1154
40’ Ft. Cont 2034 35 2069
Average 1277
Expenses
Step 1
•We predict revenue i.e. 1% of international trade to Colombia and then increase revenue by 10% each year.
Step 2
•Calculate the profit as a percentage of revenue.
Step 3
•Calculate the total cost (Total revenue – Profits)
Step 4
•Deduct expected other expenses from the total cost. This leaves you with cost which has only freight and demurrage.
Profit Projection Calculation
Step 5
•The cost of demurrage and freight is being given in the table provided earlier.
Step 6
•We assume that units transported to Colombia are done equally by all 4 types of containers.
Step 7
•We come to a demurrage and freight per unit (i.e 1277) by taking an average of all 4 types of containers.
Step 8
•Now total cost of freight and demurrage which we get in step 4 is divided by per unit cost of freight and demurrage of step 7 to predict the volume .
Profit Projection Calculation
YearProfit/Loss (%) Revenue Profit/Loss Total Cost
Other Expense Dem + Fr
D + F ( per unit)Volume
1 -20 3702200 -925550 4627750 1000000 3627750 1277 2841
2 0 4072420 0 4072420 1100000 2972420 1277 2328
3 10 4479662 407242 4072420 1210000 2862420 1277 2242
4 10 4927628.2 447966.2 4479662 1331000 3148662 1405 2242
5 10 5420391.02 492762.82 4927628.2 1464100 3463528.2 1405 2465
6 10 5962430.122 542039.102 5420391.02 1610510 3809881.02 1405 2712
7 10 6558673.134 596243.0122 5962430.122 1771561 4190869.12 1545 2713
8 10 7214540.448 655867.3134 6558673.134 1948717.1 4609956.03 1545 2984
9 10 7935994.492 721454.0448 7214540.448 2143588.81 5070951.64 1545 3282
10 10 8729593.942 793599.4492 7935994.492 2357947.691 5578046.8 1700 3281
PROFIT/VOLUME PROJECTION
EMAILS – FREIGHT RATE
EMAILS – FREIGHT RATE
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