Note from EditorWelcome to this month’s Magaya Insider.

If you have been looking for an easy way to offer cargo insurance to your customers, the solution

is here. Now you can process cargo insurance for shipments right from your Magaya software.

See this month’s how-to article and start offering this valued-added service to your customers.

Keeping an eye on your business is crucial to running it well. NVOCC and freight forwarder

Independent Ocean Services (IOS) of Manhattan uses their Magaya Cargo System to get an

overview of their business so they can anticipate any potential situations with shipments. Read

how in this month’s case study.

In the WorksMagaya Cargo Insurance

A new feature in Magaya software gives you the option to offer cargo insurance to your

customers to cover their shipments. Purchasing the insurance certificate is done right from your

Magaya system, saving you time because all the shipment data is transferred to the insurance

screen. The cargo insurance is an open All Risk policy, underwritten by Navigators Insurance

Company, providing excellent rates and a revenue opportunity.

The Benefits of Using the Magaya Cargo Insurance Plug-In

• Submit insurance declarations and request special projects directly from your Magaya

system, eliminating redundant data entry

• Cost premiums and resale premiums are automatically calculated, and the charges are

automatically generated within your Magaya system

• A certificate is issued for each shipment and attached as a PDF

• Completely automated and available 24/7

• Create reports in the Magaya insurance portal for shipments by day, week, month, etc.

• In the portal see details of certificates issued for statistical reporting

This new feature is available now. See this month’s how-to article to learn more.

November 2010

In the Works

Magaya Cargo Insurance

How to

How to Use Magaya Cargo

Insurance

Case StudyIndependent OceanServices

Steps to Purchase Cargo Insurance for your Customers:

1. Process your shipment as usual.

2. In the Shipment screen, click the Cargo Insurance button to

buy the cargo insurance for the shipment. (Alternative: Click

the Actions button and select Cargo Insurance > Buy Cargo

Insurance.)

3. In the Insurance Certificate Request screen, some information

will be completed. Enter the following:

• Select the “Conditions of Insurance”: This is the type of

coverage you want.

• Select the “Assured”. This can be the consignee, the customer

who is buying the insurance policy, or other party.

• Select the “Shipment Type”.

• The field “Loss Payable to” is the party who will be paid if

damage occurs to the cargo.

• Select a surveyor. The system shows you options of surveyors

who will inspect claims.

• The Categories of Interest field is the commodities in the

shipment. Click the button with the three dots and select

the Commodity Type from the list. You can narrow the list to

display only approved commodities. If a commodity requires a

Special Project request, the list will display “Yes” in the Special

Projects column. See the section on applying for special

projects for more.

• The “Cargo Value” and “Freight Income” fields are filled in from

the shipment. Changes can be made if needed.

How To Page 1

Offer your Customers Cargo Insurance Right from your Magaya System

Would you like to offer cargo insurance to your customers

and process it right from your Magaya system? The Magaya

Cargo Insurance feature enables you to do just that. It has

two parts that work together: a cargo insurance screen in

your Magaya system and Magaya insurance portal, which is

linked to your Magaya system.

Magaya Cargo Insurance provides excellent rates and

reliable coverage with an open All Risk policy, offering more

coverage than the limited liability from carriers. This how-to

article explains how to purchase the cargo insurance in your

Magaya system for your customers’ shipments and how to

use the Magaya insurance portal.

Steps to Configure your Magaya System to Process Cargo Insurance Requests

1. Go to Maintenance > Configuration > Cargo Insurance

2. Check the box in the Configuration screen to enable cargo

insurance.

Make any changes to the default configuration as needed for

your business. For example, the Resale Markup can be a percent

or a flat rate; select the type and enter the amount.

Premiums are paid to Magaya Corporation Premium Account,

which is collecting the insurance premiums on behalf of the

insurance broker.

In the General settings section, you can set your system to allow

the certificate to be viewable internally in your company or

to allow customers to see it via Magaya LiveTrack. Additional

checkboxes apply to the Magaya users to allow or limit their

ability to void declarations, create special projects, and to force

the system to request their credentials before the user submits

a transaction. Save your settings.

How To Page 2

• The “Estimated Insurance” is calculated based on the freight

and the cost (calculated by adding value and freight, dividing

the total by 100, and multiplied by rate). This amount is used for

the next field, the “Sum Insured”.

• The “Sum Insured” is the total of the Cost, Insurance and Freight

(CIF) plus 10%.

• The Premium is your cost (is divided by 100 and multiplied by

the rate), and the Resale Premium (this includes your markup

amount) is the amount you will charge the customer (as set up

in the Configuration menu).

• The fields for “Commodity/Description of Goods” and for

“Marks and Numbers” are optional.

• Click Save & Next.

The next screen is a summary of the request. Verify data and make

any changes needed before sending.

The request for a certificate is sent from your system to the

insurance broker for review. A copy of the certificate is attached as

a PDF to the shipment in the Attachments tab. There is no charge

for the certificate. If any changes are needed, the insurance broker

or insurance company will contact you.

When the purchase is complete, the cargo insurance button icon

changes to show the lock closed with a checkmark.

Apply for a Special Project

If a commodity is not on the list of Approved Commodities,

request a Special Project for it:

1. Click the arrow on the side of the Cargo Insurance button and

select “Apply for Special Project”.

2. In the Special Project Request screen, fill in the following fields:

• The Assured is the customer whose cargo requires the

special project. This field can be left blank so the cargo can

be approved for any customer.

• The Interest field is used to describe the cargo. The Interest

Brief Name summarizes the cargo.

• Packing indicates the type of packaging such as a custom

crate.

• Select the Voyage From (origin) and Voyage To (destination)

• The Annual Turnover is the total value of all pieces of this

type of cargo that can be shipped in one year.

• Enter the sum to be insured for each shipment.

• Select the Conditions (the coverage) you want.

• Check the box when you read the terms.

3. Click Save & Next to go to the next screen. The next screen is

a summary of the request. Verify the data, and return to the

previous screen to make any changes needed.

4. Send the Special Project request.

An email notification will be sent to you with the status of the

request.

When you receive the special project approval, go to your Magaya

system to purchase cargo insurance and request a certificate. Fill in

the fields in the Insurance Certificate Request screen as explained

above.

Click on the Commodities of Interest button and select the

approved special project from the list. (If you need to filter the list,

click the checkbox to show only special projects.) The information

is filled into the field automatically.

Using the Magaya Insurance Portal

The Magaya insurance portal contains information such as the

latest updates on the status of your request, a list of approved

commodities, the cargo policy, and more. There is also a section

displaying your financial information such as your premiums and

monthly activity in easy-to-use charts and graphs. Hover your

mouse over the charts, lines, and graphs for current amounts.

To access the portal the first time, a Magaya user with

administrative rights must request an insurance certificate from

the Magaya system. This will automatically generate a user name

and password.

After the initial certificate is issued, other Magaya users can

access the web portal from their Magaya system. The user name

and password for the Magaya insurance portal is the same as

the user name and password for the Magaya system for each

Magaya user. Only the admin can change user rights.

How To Page 3

The Magaya insurance portal location is:

http://insurance.magaya.com.

The opening screen of the Magaya insurance portal is the

Dashboard that shows any messages such as if you have special

projects that are pending approval.

The menu on the left side of the screen contains all the features

in the portal.

Many of the functions in the menu

are also accessible from the

buttons on the top toolbar.

Navigate through the menu by

clicking on the plus sign to expand

entries in the menu. For example

to see the surveyors (inspectors),

expand “Contact Information” and

click Surveyors. You can sort the

list to view surveyors in a specific

country by typing the country

name in the Search field. The list

can be narrowed further by using

the pop-up menu available when

you hover your mouse over any

column header. Items in the list

can be grouped or ungrouped by

clicking the “Group By” option.

Uncheck the “Enable Group View”

to return to the list view.

Invoices for premiums are created automatically. Open

Declarations are certificates that have not been paid for yet.

Billing

The Shipment Charges tab will show all charges, including the

insurance charges: your cost of the insurance and the cost for

your customer. When the shipment is liquidated, the related

accounting transactions are created for this shipment.

You pay your premiums to the premium account designated in

your Magaya system’s Configuration screen.

Once a month, you will receive an invoice from Magaya with a list

of all the certificates you issued for all the shipments and credits

for any certificates voided.

Underwriter and Authorized Agent and Broker

The cargo insurance is underwritten by Navigators Insurance

Company, rated “A” (Excellent) by A.M. Best and “A” (Stable)

by Standard & Poor’s. The insurance certificates are issued by

insurance broker and authorized agent Gil, Garden, Avetrani

Insurance Group, which offers over 35 years experience in the

marine insurance industry.

Video Tutorials Online

View cargo insurance video tutorials on Magaya.com’s Training

page for a step-by-step demonstration. To activate the cargo

insurance in your Magaya software, please call Magaya

Corporation so you can start offering this valued-added service

to your customers and increase your revenue.

Concept Cargo, Miami, FL

Equipsa, Inc., Miami, FL

Faster Services Corp., Hialeah, FL

Fenix Freight, Miami, FL

Forbis Logistic Corp., Doral, FL

Magnabyte Latin America, Miami, FL

Rome International, Doral, FL

TAM Linhas Aereas, Miami, FL

Armada AVS Corp., Carson, CA

Allied International Shipping Inc.,

Jamaica, NY

DMS America JFK, Jamaica, NY

Williams Caribbean Shipping &

Delivery Services Inc., Brooklyn, NY

Aeromodal, The Woodlands, TX

Sciora Trading AG, Zug, Switzerland

Lozada Transport Service,Falls Church, Virginia

YS International, Mississauga, Ontario

InterAtlas Chemical Inc., St. Catharines, Ontario

AFX do Brasil, São Paulo,Brazil

Capital Chile, Santiago, Chile

In Central America, South America and the Caribbean:

In Europe:

In North America:

Magaya Corporation welcomes the following 19 new customers to the Magaya Community:

New Customers

Bird’s Eye View – The Value of Being PreparedAnticipating Events Keeps IOS Ahead of the Curve

NVOCC and freight forwarder Independent Ocean Services (IOS) uses their Magaya Cargo System to get an overview of their business so they can anticipate any potential situations with shipments. Their customers rely on IOS to ship their cargo anywhere in the world. From the middle of the Pacific Ocean or across a desert, IOS gets the cargo there.

,,,,We gain new customers by word of mouth and, as a result, our business grows like a snowball.

Senior Vice President Thierry Lamy

CASE STUDY:

Independent Ocean Services NVOCC and Freight Forwarder

ChallengesJust as the captain of a ship relies on his knowledge of the sea and

the latest technology such as GPS, electronic charts, and radar

to know what weather is ahead, what vessel traffic conditions to

expect, and other vital information, the founders of Independent

Ocean Services (IOS) Thierry Lamy and Bernard Lugez, use their

experience and Magaya software to anticipate events and get

an overview of their business so they can be prepared with any

needed alternatives and solutions for their clients.

In 2007, Mr. Lamy and Mr. Lugez opened their NVOCC and freight

forwarding business. While they work out of a small office in

Manhattan, they have customers all over the world. Drawing on

their experience working for shipping lines, they analyzed markets

and decided to focus on exports to Africa and Central Asia because

of the opportunities there.

At first, they used another software program but soon realized

it was not answering their needs. “We had a lot of duplication of

tasks,” Mr. Lamy said. “The previous software separated operations,

documentation, and finance. Invoicing was delayed while waiting

for other data to download.”

IOS needs instant communication and exchange of shipping

information among their three offices in Manhattan, Toronto, and

Montreal. With a staff of six, they ship 2,000 TEUs per year. The

majority of their shipments are sent via ocean containers, and 20%

of their business is shipping vehicles or machineries to Africa on

Roll On Roll Off (RORO) vessels.

West African countries they ship to include Nigeria, Ghana, and

Angola. They also ship cargo to countries in Central Asia such as

Kazakhstan and Kyrgyzstan, and to the Middle East via Dubai.

To help their staff export all this cargo, they needed reliable

software. They researched other software programs and compared

features. “We were looking for an integrated software program.

Other programs charged extra if we wanted accounting or other

features, but Magaya has all the features we need.”

To process their exports and file the necessary Customs

documents, IOS uses the Automated Export System (AES) feature

that is integrated into Magaya Software. Mr. Lamy said before

using Magaya software, they entered the cargo description in the

booking and had to re-enter everything to send it to Customs. “It

was crazy,” he said.

SolutionIOS started using the Magaya Cargo System in April 2009. Mr. Lamy

said that he and his staff use the software from the beginning

of their operations process by creating a quote in the system,

and then converting the quotation into a booking. Next they

make a shipment from the same data which is also linked to the

accounting functions in the system and populates the invoices,

bills, and other accounting transactions automatically.

“When we liquidate the shipments, all the accounting transactions

are already in the system, carried over from previous related

transactions,” Mr. Lamy explained. “We enter the charges in the

beginning of the process, and they are processed all the way

through. It has a domino effect. At every step of the process,

efficiencies are achieved because everything is integrated in the

software. The beauty of Magaya is you can enter information in

one place and reuse it.”

At a GlanceIndependent Ocean Services (IOS) www.shipios.comIndustry NVOCC and freight forwarder Solution Magaya Cargo System

Independent Ocean Services (IOS)

Independent Ocean Services (IOS) is an NVOCC and freight forwarder based in Manhattan. They also have offices in Toronto and Montreal, Canada, and export to their major markets in Africa and countries in Central Asia, and Middle East.

Cargo ship in New York Harbor

Rates and Remote LocationsThe staff at IOS use the Rates features in their software for

containers, for RORO, and for break bulk cargo. “We have entered

Standard Client Rates in the system, with starting and ending

dates. When we have a special rate for a specific customer, we use

the Client Rates.”

They also update the rates as carriers give them new rates for

freight or surcharges. They update the ports they use most often

and other markets when they are needed.

In addition to shipping vehicles, they also handle special projects

of oversized cargo such as mining equipment. For example, they

shipped over 100 containers for a customer from Alabama to

Kazakhstan to deliver equipment for a new plant that was being

built there. They arranged the ocean shipping and the land

transport of the cargo. They also sent construction equipment

from Ohio to Tanzania.

“New customers hear about us by word of mouth. They know we

can ship to remote locations. We have shipped to Timbuktu, Mali,

in West Africa and to islands in the middle of the Pacific Ocean.

We have reliable contacts with local knowledge who help us

arrange the destination processes. They let us know what the ports

can handle and other details that help us plan the best shipping

method. This helps us avoid having cargo stuck somewhere. As we

gain new customers by word of mouth, our business grows like a

snowball,” Mr. Lamy said.

Operations and Accounting ReportsIOS runs reports in their Magaya system drawing on all the data

that is in their Magaya database to see shipment status. They can

see what is going to arrive in the destination ports, and they look

ahead for the next four weeks.

“Customers want to know the status of their shipments. We use

the report to call our customers in advance of the delivery date to

remind them that their shipment is on its way.”

Mr. Lamy said they work with their customers to find the best

shipping option for them. “We keep them updated on the status

of the shipment. We don’t just have staff sending out emails like

robots. We prefer to educate our customers and give them advice

so they are assured their cargo is being handled properly.”

Other reports they process in their Magaya system include

accounting reports such as AP, AR, Profit & Loss, Profits by

Operations, and Balance Sheet.

“We rely 100% on Magaya for accounting,” Mr. Lamy said.

Custom Fields for Vehicles and MoreIOS added custom fields to documents to gather information

specific to their business. They also customized many of the

standard documents that are included in Magaya software such as

the Bill of Lading, the invoice, dock receipt, and others.

They created a custom document to handle the shipment of

vehicles. When vehicles are shipped, the carrier wants to know

if the vehicle has been drained of gas and if the battery is

disconnected. IOS created a “Drain and Disconnect Letter” for

this purpose. They used the custom fields to create this document

which draws from the data that is in their Magaya system,

including the Vehicle Identification Number (VIN).

“It’s very easy to customize fields and documents,” Mr. Lamy said.

“We do not have to spend hours and money programming. By

creating custom fields, we improved our processes.”

Future PlansIOS plans to open a warehouse in the New York area. Since most

of the cargo IOS ships to West Africa is used cars, they can attract

more customers and stuff the containers there and ship them.

“At first we did not know if Magaya was for us, but the more we

learned we realized that it is not just for warehousing companies,

but it can handle many other operations. The software is written in

a recent language, it’s very flexible, and everything is integrated.”

Since IOS does not have their own warehouse and they do not

process ground or air shipments, they do not use those functions

in the software, but Mr. Lamy said he is glad they are there because

it helps him plan the company’s expansion. “I do not need to buy

additional software when the time comes. The features are already

there and are integrated into the Magaya chain.”

Toronto Skyline

Independent Ocean Services (IOS)