DHL (India - Colombia)

Presentation By:
Mansi Goenka - 09020241011
Vishal Singh- 09020241020
Aastha Kalra- 09020241049
Mansi Sanghvi- 09020241087
Ritika Gupta- 09020241125
Rohan Munot- 09020241131
India Colombia Trade
TRADE ROUTE
 Major Ports
COLOMBIA IINDIA
 Net Exports

REGION/COUNTRIES APR-MAR  2010 %GROWTH %SHARE

EUROPE 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
1,78,662.16 -3.58 100
TOTAL
 Net Exports From India
Apr-Mar 2010

2%

35%

50% 1)  Europe

2)  Africa
3)  America
5)  CIS & Baltics

13%
 Exports To America (US$ mn)
1% Apr-Mar 2010
3% 2%
7%

9%

USA
CANADA
BRAZIL
4% BAHAMAS
MEXICO
COLOMBIA
OTHERS

73%

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 %Share

EUROPE 53,978.91 -3.81 19.2
AFRICA 20,216.97 9.13 7.19
AMERICA 28,809.72 -5.12 10.25
ASIA & ASEAN 1,74,569.49 -7.38 60.86
CIS & BALTICS 5,931.37 -8.68 2.11
UNSPECIFIED REGION 1,071.24 -24.33 0.38
TOTAL 2,81,086.30 -5.56 100
 IMPORTS TO INDIA
Apr-Mar2010
Apr-Mar2010
2% 0%
2% 0%
19% 1)  Europe
19% 1)  Europe
2)  Africa
2)  Africa
3)  America
3)  America
7% 4)  Asia & ASEAN
7% 4)  Asia & ASEAN
5)  CIS & Baltics
5)  CIS & Baltics
6)  Unspecified
6)  Unspecified
Region
61% 10% Region
61% 10%
 Imports from America
0%

3% 3%
4%
5%
Apr-Mar 2010
6%

USA
7% CANADA
CHILE
MEXICO
BRAZIL
ARGENTINA
COLOMBIA
OTHERS

71%

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)
TRADE BETWEEN INDIA-COLOMBIA
1400.00
1200.00
1000.00
EXPORT
800.00
IMPORT
US$ Millions

600.00
400.00
200.00
0.00
) ) ) ) ) ) ) ) ) )
06 07 08 09 10 (P (P (P (P (P (P (P (P (P (P
20 20 20 20 20 1 2 3 4 5 6 7 8 9 0
2 01 2 01 2 01 2 01 2 01 2 01 2 01 2 01 2 01 2 02

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
 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
CIF value in US million Dollars

3% 2%
3%
2%

30% Equipment for motor vehicles (CKD form)

11% Vehicles other than railways
Organic Chemicals
Miscellaneous Chemical Products
Pharmaceutical Products
Cotton yarn and woven fabrics of cotton
Articles of Iron and Steel
9% Machinery and Mech. Appliances
Iron and Steel
Man‐made Staple Fibers

12% 15%

12%
 EXPORTS
EXPORTS
140

120

Equipment for motor vehicles (CKD form)

100 Vehicles other than railways
Organic Chemicals
Miscellaneous Chemical Products
80 Pharmaceutical Products
USD (MILLION)

Cotton yarn and woven fabrics of cotton

Articles of Iron and Steel
Machinery and Mech. Appliances
60
Iron and Steel
Man‐made Staple Fibers

40

20

0
2005-06 2006-07 2007-08 2008-09 2009-10
IMPORT ITEMS
FOB 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
IMPORTS
450

400

350

300

Mineral Fuels, mineral oils

USD (MILLION)

250
Iron and Steel

200

150

100

50

0
2005-06 2006-07 2007-08 2008-09 2009-10
 IMPORT ITEMS
IMPORTS
3.5

2.5 Plastics and Articles thereof

Wood and articles of wood
Sugars and sugar confectionery
2 Inorganic Chemicals
USD (MILLION)

Copper and Articles thereof

Lead and Articles thereof
Aluminum and Articles thereof
1.5
Glass and Glassware

0.5

0
2005-06 2006-07 2007-08 2008-09 2009-10
 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
 INDIAN EXPORTERS TO COLOMBIA
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 IMPORTS FROM 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
EMAILS
EMAILS
 COMPETITORS
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 Express
Services –
• 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
What are the HR requirements to
handle the trade lane?
 Basic Organisational Structure

Country
Manager

Business Operation Manager Route

Finance HR IT
Development Excellence Development

Solution Design
Operations
& Supervisor
Manager
Implementation
 Basic Organisational Structure
Manager
Route
Development

Manager
Marketing Manager Manager
international
Dispatch marketing Service
logistic

Cargo and
Packaging Sales Rejection Complain Returns
freight agent

Drivers and
forklift/boom Inbound Out bound
operators
Centralised or
Decentralised
System
• Organisation structure
and other HR policies in
place.
• Hierarchy
• Provide consistent
service globally through

1. Expatriates
2. Training to individuals
 Job Analysis and Job Evaluation

Job
Descriptions
Job Analysis
Job
Specifications
What is a Job
Description

How does it help

the organisation

How does it help

the employee?
 Grading Structure
• Broad banded structure
– High turnover
– Motivation
 Incentives
• Pay for performance
• Incentives are based on the
individual’s performance
• Organisational profit sharing
will not be much effective
 Key Result Areas

Sr. No. KRA Tasks Competency MOP

1.
 Knowledge Sharing
• Transfer of best practices
• Transfer of explicit knowledge
• Competitive edge
 Other policies
• Policies for leave structure of the organisation
• Office timings
• Working hours
• Holidays etc.
How will you train employees to make
them successful in handling this trade
lane.
 Training
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
 Implement
Implement Needs
Needs
Evaluation
Evaluation Design
Design
ation
ation Assessment
Assessment
Four: Three: Two: One:
Phase Phase Phase Phase
Systems Model of Training
Bridge the Cultural Gap
 Safety of employees and goods
• 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
 Communication Skills Development

• Strong communication skills

• Efficient negotiating abilities
• Image building of the organisation
• Bargaining Power
 Latest technology
• Pace of technology change
• Tracking the courier
• Knowledge Sharing
• Best practices
 Cross training
• Training of one employee to do another's
work.
• Monotonous tasks leading to high turnover
• Cross training helps in job rotation
 Knowledge of Contract labor Act

• Contract
– Loading
– Security
– Cleaning services
 Services offered by Companies

• MAERSK Shipping

• Shipping Corporation of India

• Mediterranean Shipping Company

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 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.
Special features of Containers
Reefers
• Dehumidification system
ensuring optimum
humidity.
• Controlled atmosphere
• Environmentally friendly
CFC free R-134A refrigerant
• Super freezers : 60°C/ -76°F
Dry Containers
• Hanger beams
• Extra door width versions
• Bull rings and lashing bars
• Ventilated containers for
crops
 Other Services
• 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.
Charges
Registration on Maersk
Reply from Maersk
Shipping Corporation of India
 Services Provided

• 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.
Mediterranean Shipping
Company
 Mediterranean Shipping Company

• 2nd largest container operator in the world

• Shipping line of the year award – 2008

• Voted as best Ocean Carrier – 2007

 Vessel Characteristics
TEUs CAPACITY YEAR OF
SR NO VESSEL NAME (REEFER ) IMO NO FLAG OWNER BUILT CLASS NO GRT NRT

FALCON SERVICE AT NSICT

SEATRUST
1 MSC GERMANY 2708 (R-217) 7502928 LIBERIA SHIPPING INC 1978 GL-11597 38991 13039

COMPANIA
NAVIERA
2 MSC AMERICA 2680 (R-150) 9008603 PANAMA AMERICA S.A 1993 GL-33398 34231 16058

REEDEREI F.
3 MSC PALERMO 2680 (R-150) 9008548 LIBERIA LAEISZ GMBH 1992 GL 34231 16058

HINTER MARINE
4 MSC FINLAND 3032(R-262) 8511184 LIBERIA S.A 1986 NKK 42000 21308

5 MSC CORINNA 2415(R-214) 8208684 PANAMA LATMIC CORPN 1984 ABS 32703 13904

HEDRAS INTL
6 MSC CLAUDIA 2594(R-120) 7104673 PANAMA CORPN 1971 GL 50303 19695
Mumbai
Mundra
Freight and Profit Projection
 Assumptions
1. Trade done by all 4 vessels is the same i.e. 25%
2. Profits % is assumed
3. Revenue in first year = 1% of total market share of
the international trade by ship between India and
Columbia
4. Cost = Freight + Demurrage + Other Expenses
5. Demurrage increases by 10% every 3 years
6. Revenue increases by 10% every year.
7. Other expenses increase by 10% every year.
 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.
 Expenses

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
• Deduct expected other expenses from the total cost. This Step 4
leaves you with cost which has only freight and demurrage.
• Calculate the total cost (Total revenue – Profits) Step 3
• Calculate the profit as a percentage of revenue. Step 2
• We predict revenue i.e. 1% of international trade to Colombia Step 1
and then increase revenue by 10% each year.
Profit Projection Calculation
• Now total cost of freight and demurrage which we get in step 4 is divided by Step 8
per unit cost of freight and demurrage of step 7 to predict the volume .
• We come to a demurrage and freight per unit (i.e 1277) by taking an Step 7
average of all 4 types of containers.
• We assume that units transported to Colombia are done equally by all 4 Step 6
types of containers.
• The cost of demurrage and freight is being given in the table provided Step 5
earlier.
Profit Projection Calculation
 PROFIT/VOLUME PROJECTION
Profit/Loss Other D+F
Year (%) Revenue Profit/Loss Total Cost Expense Dem + Fr ( 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

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