You are now viewing: ITinerary Archives : 2003 Q1

• Electronic Payment Facilities available to Port Users (March 31, 2003)
• Where is my cargo? How Foreign Shipping Lines answer this question? (March 17, 2003)
• Where is my cargo? (March 3, 2003)

Electronic Payment Facilities available to Port Users (March 31, 2003)

The end of each month is always a milestone period for an average middle-class Filipino consumer in Metro Manila like myself. This is not due to the fact that it's payday but rather because it is payment time. Credit card fees, loan payments, house rentals, mobile phone charges - these are just some of the regular financial obligations that must be paid.

Fortunately, there are now a number of electronic payment services and facilities that provide convenience, security and quick access to consumers. If you receive your salary through an ATM payroll account, the ATM networks of BancNet, Megalink and ExpressNet provide services that allow you to pay most - if not all - of your monthly bills for electricity, telephone, water utility, and credit cards.

If one is lucky or hardworking enough to have substantial money in the bank, there are electronic services that enable you to pay bills through automatic debit from your account by using phone or Internet banking.

Benefits for the Filipino consumer.
Banks and other financial institutions refer to these electronic payment facilities as part of consumer or merchant retail banking services. They provide three main benefits. One is convenience - you can pay anytime and anywhere, whether at home, office or shopping mall, or wherever you have physical access to an ATM machine. Another benefit is security - no need to carry that much cash in your wallet. Finally, real-time transaction - no need to wait for an official receipt since payment is immediately credited to the party you are paying to.

This is really good news for the Filipino consumer - but how about the customs broker, importer or exporter who has to pay duties and taxes to the Bureau of Customs, wharfage fee to the Philippine Ports Authority, as well as arrastre and/or storage charges to ATI and ICTSI?

Electronic payment facilities for port users.
The Philippine port community started to benefit from electronic payment solutions during the mid-1990s. Let us briefly summarize them in the sections below.

Payment of customs duties and taxes.
As part of its computerization program, the Bureau of Customs implemented a system for paying import duties & taxes through authorized agent banks (AABs) which was developed and implemented in partnership with the Bankers Association of the Philippines. The payment transaction details are electronically transmitted by the AABs to BOC through a highly secure computer link. Once the amount paid is automatically matched with the assessed duties and taxes, BOC computer system generates an electronic release instruction to both ATI and ICTSI systems. At this point, cargo charges can be paid and the shipment released to the importer or consignee.

What is perhaps the first web-based payment facility for customs duties and taxes is the 1Time secure payment system of United Coconut Planters Bank. This is currently available to clients of e-trade.net.ph.

In this aspect, I understand that other leading banks are currently preparing to offer similar services. The availability of these other facilities will be a most welcome development.

Payment of cargo charges at MICT and South Harbor.
Insofar as payment of wharfage, arrastre and storage charges are concerned, there are currently two Internet-based electronic payment facilities available to port users at MICT. One is the ePayment facility of UnionBank which was implemented in 2001 and the most recent is UCPB 1Time system. Both of these are accessible through ICTSI's MICT iBox facility. Payment is actually done even before the cargo owner physically goes to MICT to claim his shipment for release.

Port users in South Harbor who want to use electronic payment will be glad to know that ATI has made available cargo charges payment using BancNet facility. All that is required is for the consignee or his authorized customs broker to swipe his BancNet ATM card at the machine provided for this purpose and located beside the ATI cashier, type the correct ATM PIN number, and payment will automatically be credited to his arrastre/wharfage or storage invoice.

Optimizing the benefits of electronic payment.
At this point in time, I believe that many things can be done to fully optimize the benefits of such facilities for the entire Philippine port community.

One of these is for other leading banks to offer similar services just like what UCPB and UnionBank have pioneered. In terms of payment volume transaction alone, there are very tangible business justifications for other banks to come into the picture.

Another is to review existing business procedures related to clearance of cargo within the port and identify areas of improvement intended to further reduce time duration for import cargo delivery. For instance, BAP and the AABs may want to introduce improvements to shorten processing time between actual receipt of payment and transmittal of payment record to BOC computer system

Finally, I look forward to the time when payment of customs duties & taxes, wharfage, arrastre and storage charges will be done through a single, common electronic facility. Will someone please come forward and make this happen?

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name.

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Where is my cargo? How Foreign Shipping Lines answer this question? (March 17, 2003)

In the maiden issue of this column last 03 March, I wrote about how web-based cargo/container inquiry works and the kind of information generally available from it. The features of ATI WebTrack and ICTSI MICT iBox were cited as examples of how the country's leading port operators currently implement this kind of facility within their respective web sites.

Today, I will focus on how foreign shipping lines implement this "track & trace" functionality.

Basic & Straightforward Cargo Tracking
It can be generally said that cargo tracking is always an integral part of a shipping line's customer service. This principle has, in fact, guided the technology strategy on which the information content of inquiry functionalities in some web sites are being designed and implemented. I found numerous examples of very basic and straightforward cargo tracing features without any frills and among these are tracking features incorporated in the web sites of Dongnama Lines and Yang Ming Transport Group. The most common tracking criteria are container number, bill of lading and booking number. However, there are some restrictions on the extent of information that clients can obtain when using this inquiry feature such as only outbound cargo can be tracked and not all trade routes are included.

"Track & Trace" As Part of a Service "Brand"
A number of shipping lines currently implement web-based "track & trace" as part of a distinct "brand" of service offering. What they try to communicate across to their client is the message that such functionality is a new category of online access to shipping line services.

In the China Ocean Shipping web site, it is named simply as Cosco Online Services. On the other hand, Maersk Sealand describes its web-based Tracking Module as a facility that provides quick and easy real-time online access (through the web or electronic mail) to all container movements of cargo globally. It allows advanced tracking (e.g., all cargo for a given destination) in addition to tracking through one or more specific identifiers (container number or bill of lading). Another interesting feature is that the customer can track both planned and actual schedule of his shipment.

Hanjin Shipping implements cargo tracking in its web site as part of what it distinctly calls as HJS e-service that incorporates ship schedule, booking, rate, shipping instruction, bill of lading and arrival notice. Its "track & trace" functionality consists of standard web-based tracking (wherein the inquiry results are immediately displayed on the computer screen), email tracking (inquiry results are automatically transmitted to an email address specified by the client), and mobile tracking (mobile results are automatically transmitted to the clients personal digital assistant or PDA).

A more enhanced implementation of "track & trace" as part of a service brand is found in the web site of Nippon Yusen Kaisha. It is integrated into what it calls as e-Commerce Liner Services that encompass vessel schedules, container tracking, rate inquiry, booking, shipping instruction, bill of lading processing, shipment summary, cargo tracing, shipment detail, event notification, and exception reporting.

"Track & Trace" As Part of a Web Portal
American President Lines has gone a notch higher by integrating tracking functionality as component of its HomePort Web Portal that enables customers to view real-time ship schedules, make bookings, submit & print bills of lading, create custom reports and view account statements. A highly interesting feature of its shipment tracking module is that search parameter is not limited to the common criteria of container number, bill of lading and booking number. It allows customers to use a new shipment tracking using references meaningful to the business user such as purchase order and invoice number.

Event Notification & Exception Reporting
At present, there is a very distinct trend to incorporate event notification and exception reports (or alerts) as part of the overall design for web-based "track & trace" facilities. Both NYK and APL are already implementing these.

Event notification involves defining a list specific activities related to cargo movements during which the customer is automatically notified by the shipping line through email once that activity is recorded to have occurred for his shipment. NYK e-Commerce Liner Services lists down the following as example of event notification criteria:

Exception reporting or alert enables the shipping line to automatically notify the client through email if his shipment is early or late based on exceptions pre-defined by the client himself. There are basically three steps that the customer must undertake:

1) select the exception alerts (e.g., APL HomePort Web Portal lists some of these as cargo origin, load port, discharge port and cargo destination

2) define exception criteria

3) specify schedule of automated email (day and time)

How About Short Messaging Service (SMS) or Text Messaging?
Come to think of it, I am quite perplexed why there is no publicized implementation in Philippine ports and shipping of "track & trace" and event notification using SMS or text messaging as of the moment. I am certain that with substantial technology resources at their disposal, both ATI and ICTSI would have already successfully completed technical tests or even developed prototypes for this kind of solution. There were even reports last year about plans to have customs import clearance notification transmitted to customs brokers and cargo arrival status for EPZA locators relayed to designated company officers using text messaging. For now, let us give more time for the proponents of this solution to analyze their implementation strategies and determine the real business value this will provide to their customers.

Overall Benefits to the Business User
It is very important to remember at all times that web-based (and SMS-based) "track & trace", event notification and exception alerts constitute a new medium of transacting business with shipping lines.

These technology solutions are here for business users to utilize in accordance with their own individual needs and requirements. The web site features I mentioned above are only a small sample of what are currently available on the web. Whether you are an entrepreneur about to start an import/export business or a large trading firm with a vast network of contacts locally and abroad, there is no longer a physical barrier that will constrain you from knowing "where is your cargo" - anytime.

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name.

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Where is my cargo? (March 3, 2003)

DURING the early days of South Harbor and the Manila International Container Terminal, it was not unusual to see customs brokers and importer representatives right inside the container yard trying to look for the precise location of their containers. This hapless situation was always the result of inaccurate yard location data, a risk inherent in manual-based recording systems used during those times.

Today, the technology solutions used by port operators in graphics-based container yard planning and instantaneous recording of container movements through radio data terminals are of such sophistication that container location and status are accurately determined on a real-time basis throughout the entire duration of stay-time within the port.

The country's leading port operators in South Harbor and MICT have in fact already made available through the Internet their respective online inquiry facilities thereby enabling port users to locate and track their shipments electronically. These systems are called WebTrack (Asian Terminals Incorporated) and MICT iBox (International Container Terminal Services Incorporated).

Understanding The Concept of Web-Based Container Inquiry Facility
Before I describe the overall features of WebTrack and MICT iBox, let me discuss from a layman's perspective the conceptual design behind such electronic inquiry facility and the innovative value-added functionalities integrated in them.

a) Track & Trace
This web-based facility is generally anchored on a core component called "track & trace", a term widely used in shipping and logistics services. "Track" pertains to the current movement and location recorded for a container. "Trace" refers to the preceding movements recorded for the container since it first entered the port during its current stay-time duration.

As an example, a typical "track & trace" computer system response to a container number search will provide the following information:

container number: AAAA1234567
container size: 40-foot
status: full container load - import
current location: container yard position XXX222
seal number: 12345
vessel/voyage number: Shipname voyage 24N
vessel discharge: 26 Feb 2003 5:45 PM
port of origin: HongKong

For an import container, the full range of activities recorded in a standard terminal management system which may be inquired upon by port users encompasses name of vessel carrier, date/time of discharge from vessel, stack position within the yard, customs release status, date/time loaded onto truck, name of trucking company, and date/time of gate exit. In the case of an export container, key activities include date/time of gate entry, stack position within the yard, date/time loaded onto vessel, and name of vessel carrier.

b) Beyond "Track & Trace"
Recent advances in technology, increased focus on customer satisfaction and business demands for cost efficiencies in shipping and transport have provided the impetus for current web-based container inquiry facilities to extend beyond the confines of "track & trace" and integrate value-added components into the overall system design.

Nowadays, the latest implementations already incorporate electronic bill presentment and electronic payment of terminal and cargo charges.

Electronic bill presentment is a functionality wherein the port user who inquires on a specific container is now also able to view - through the same web interface - an electronic copy of the invoice for terminal and cargo charges to be paid for his shipment. The system is always designed in such a manner that the port user is not compelled to immediately proceed with actual payment. If he decides to pay, the system will automatically redirect him to an electronic payment site (normally a third-party bank web site) where he can make payment in various modes (credit card or automatic debit from his bank account). Payment confirmation is subsequently displayed on screen to inform the port user that the applicable amount was debited from his bank account.

ATI WebTrack System
WebTrack is the first operational component of ATI's e-Commerce initiative and was launched in August 2000. It provides real-time information on vessel schedules in South Harbor and a vast range of container and non-container cargo movement activities. There are separate inquiry menus for shipping lines and agents, importers/exporters, cargo consolidators, freight forwarders and customs brokers.

For containerized cargo, information available include road receival & delivery, ship discharge and loading, container stuffing & stripping, container yard inventory, import and export list, and container dwell time. For non-containerized cargo, they include cargo status, cargo discharge list, truck monitoring and daily cargo delivery.

The latest functionalities include electronic bill presentment and electronic payment for vessel charges but these are made available only for shipping lines and agents as of now. WebTrack is linked with the ePayment facility of UnionBank.

Registration as WebTrack user is free. Interested parties should contact Ms. Jel Yulo at email address jyulo@asianterminals.com.ph.

ICTSI MICT iBox
iBox was implemented in November 2001. Its core functionalities include CY import charges payment, CY export charges payment, vessel schedule inquiry, container inventory listing, container information, and truck visit information. A standard container inquiry provides information on container size, ISO code, reefer indicator, seal number, damage code, container type, carrier vessel, transporter company, and container moves listing.

Electronic bill presentment and electronic payment of cargo charges were recently incorporated. iBox is linked to the ePayment facilities of UnionBank and United Coconut Planters Bank.

User registration is free. Interested parties should contact Ms Chato Balais (cbalais@ictsi.com), Mr Christoper Magat (cmagat@ictsi.com) or Ms Juvy Taasan (jtaasan@ictsi.com).

Are These Web-Based Inquiry Facilities Proving Their Worth?
Definitely yes.

I know of several shipping lines and agents in South Harbor which rely fully on ATI WebTrack for daily tracking of all their container movements - discharge/load, in-yard locations, and gate in/out. At MICT, there is now a considerable number of port users which use both container inquiry and ePayment facilities of UnionBank and UCPB.

Altogether, increasing the level of awareness and actual utilization of these web-based facilities need to be further worked on by both port operators. At the same time, availability of faster but cheaper Internet access from the numerous Internet service providers (Pacific Internet, Mozcom, Globe DSL, PLDT DSL just to name a few) will further help facilitate wider port user acceptance.

What To Expect Next?
If you think everything ends with ePayment, you are mistaken. The existing conceptual design of web-based container inquiry facilities are now incorporating the capability for SMS or text-messaging. In other words, you can now inquire on a container through your mobile phone by sending a text message. The response you get is also a text message pertaining to the container's location and status.

What makes it even more interesting is the technology trend for "track & trace" to likewise incorporate "event notification". These are the so-called premium services that now constitute the competitive edge for web-based online facilities in ports, shipping and transport.

I will write about SMS and "event notification" during the subsequent issues of this column.

The author has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries. For comments or inquiries, email him at leo@morada.name.

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