Introduction:
Dwell time is the time cargo spends at the port between unloading and pickup and is one of the most accurate indicators of efficient logistics. These hours have become a major instrument to attract more cargo and generate revenue. Furthermore, research has shown that cargo dwell time can be quickly and significantly lowered, once you know the key problems. India and the UAE have been trading partners for decades, with trade valued at $180 million per annum back in the 1970s. Today, the annual bilateral trade between the two countries is estimated to be worth $60 billion, with the UAE now India’s third-largest trading partner. However, through various studies, the following factors were found to be common issues that have been impacting the dwell time between India and UAE.
- Load Complexity:
More complex orders, such as mixed-pallet loads, have been contributing to greater delays at pickup and delivery facilities. By grouping purchase orders so that similar goods are delivered at the same time, or by scheduling higher-complexity loads to arrive during off-hours when delays are less likely to occur, the cargo dwell time can be reduced.
- Arrival Times:
Multiple types of research have shown a direct correlation between high load volume & high dwell times between UAE and India, suggesting that load-balancing initiatives across both times of day and day of the week can be the key to reducing dwell.
- Check-In Procedure:
Complex or convoluted check-in procedures at facilities are another cause of delay. The average time taken for certification procedures other than customs, such as obtaining technical certificate clearance, permits & licenses, sanitary & phytosanitary certificate, certificate of origin, etc. for exports takes an estimated 29 hours while the same for imports is estimated at 33 hours. This seriously impacts the cargo dwell time between India and the UAE. The only solution to this can be simplifying and consolidating check-in procedures, for example, implementing paperless check-in technologies like rostering system, is an easy way to lower detention costs throughout the organization and thus reduce dwell time.
- COVID-19 Pandemic:
The UAE-India trade relationship remained stable with a steady increase since March 2020. Even as India extended its travel restriction in Covid 19 to January 2021, it resulted in increasing the dwell time for cargo. UAE exports to India reached USD 2.45 billion (INR 178 billion) by October 2020, a small increase over the January figure, suggesting things were indeed going back to normal. Even so, the pandemic has distraught the supply chains overall, making it a very challenging scenario globally. Fresh lockdowns and border closures imposed amid threats of mutant strains of Covid-19 continue to hinder economic activity and continue to increase cargo dwell times at ports.
With regards to UAE, an Emirates SkyCargo senior vice-president has mentioned that a shortage of freight space and manpower as a result of the pandemic, compounded by a rapid recovery in demand, has jammed seaports and airports and led transport costs to skyrocket and the dwell times to increase.
Conclusion:
With all these challenges being faced, especially the pandemic, the cargo dwell times have been getting impacted between India and UAE. Only time will tell if better measures can be introduced to negate these hindering dwell times that have affected our supply chain system on a massive scale.
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