How Maersk helps Jindal Stainless to solve its logistics challenge posed by Covid-19?

August 22, 2020: World largest shipping company Maersk is helping India’s largest stainless steel producer Jindal Stainless by facilitating to and fro rail movement of containerized exports and imports between Vizag Container Terminal (VCT) and Jindal Stainless Logistics Park (JSLP), a newly commissioned Inland Container Depot (ICD) located at Jajpur, Odisha.

Jindal Stainless is the largest stainless steel production company in India and ranks amongst the top 10 stainless steel producers in the world with an annual turnover of $2.8 billion. Combining Intermodal to ocean logistics and creating an acceptance point closer to the factory helps save costs and time. The maiden rake from VCT ICD Jajpur was moved on on July 24, 2020, with 90x20’ containers.

The challenge
Jindal Stainless’ cargo movement for import and export would take place from Vizag Port to a container freight station (CFS) by road and from there to the factory in Jajpur on rail and vice versa. This journey from port to factory and back to port, included multiple handlers. Additionally, during the lockdowns caused by COVID-19 pandemic, trucking became a big challenge for the entire logistics industry due to lack of drivers, causing the cargo to slow down and reduced visibility in its movement.

The Maersk solution
The solution offered to Jindal Stainless was based on the concept of completely eliminating road transport from port to CFS and simplifying the overall supply chain. The cargo was moved on dedicated rail from port to the factory and back. Maersk also opened an acceptance point for issuing Bill of Lading at the Inland Container Depot (ICD) at Jajpur, right next to Jindal’s factory. In addition to offering intermodal transportation, Maersk also added Imports Booking Management in the bundled package that that combined ocean and landside transportation.

The result
The Maersk solution for Jindal Stainless brought in three advantages to Jindal:

1. It eliminated road transport and thus improved reliability.
2. By reducing the stop at CFS, the transit time was reduced by up to 25 percent.
3. A single point of contact for the entire journey was created thus offering greater visibility.

Abhyuday Jindal, managing director, Jindal Stainless, said “Our collaboration with Maersk is a mutual win-win solution as it harnesses volumes on our side and expertise on theirs. This arrangement shall help us strengthen our supply chain, expedite container movement, besides saving costs for us.”

Steve Felder, managing director, Maersk South Asia, said, “Our aim is to provide our customers with access to products and solutions that meet their end-to-end supply chain needs. With a solution crafted and implemented especially with and for Jindal Stainless, we are going all the way in delivering our promise of being enablers of trade.

Jindal Stainless Logistics Park
Spread over 12 acres and operational since November 2019, Jindal Stainless Logistics Park is a rail‐linked ICD at Jajpur, fully equipped with the custom‐bonded facility, covered warehouse, and container handling/storage/repair facilities to cater to the requirements of various importers and shippers located in Kalinganagar and nearby industrial areas of Odisha.