Participation in the Secure Chain in Rotterdam and in Certified Pick up (CPu) in Antwerp reduces the probability of fraud when transferring the release right for picking up an import container. In practice, participation in these initiatives however often leads to confusion and several challenges. In this article, we will therefore explain how both solutions work and discuss how the various interfaces are integrated into the Modality system.
The basics of the import process
For the sake of clarity, let’s first go back to the basics of the import process. The shipping line is the first link in the process of collecting an import container at the deepsea terminal. Once the sea freight dues have been paid to the shipping line, it releases the shipment. The release authorisation (also called: ‘release right’) is then passed on to the shipper and/or the forwarder (hereinafter referred to as ‘shipper’). In the past, this process involved the use of PIN codes. In the new approach, however, release rights can only be digitally forwarded to authorised parties in an encrypted form. Next, the shipper instructs the inland operator to collect the container at the deepsea terminal and passes on the release right to the inland operator. The inland operator submits a pre-notification to the deepsea terminal and collects the container activating the release right.
Different ports, different methods
The release right is passed on in different ways:
Rotterdam – Secure Chain
In Rotterdam, all communication is centrally organised via Portbase. Inland operators are able to receive and transfer the release right via the Port Community System (PCS), which they are familiar with. We explain exactly how this works below. The pre-notification is already submitted to the terminal via the PCS of Portbase. As a result, all requirements for collecting an import container in the port of Rotterdam can be handled via one single system.
To explanation Secure Chain
Antwerpen – CPu
In the port of Antwerp, the situation is somewhat more complicated in this respect. Here, the release right (CPu) is passed on using two different parties; either NxtPort, which is an initiative of Port of Antwerp-Bruges, or Secure Container Release of T-Mining. You can find out exactly how this works below. Furthermore, the submission of pre-notifications requires multiple interfaces with the various systems of the deepsea terminals in Antwerp.
The operation of the Secure Chain in theory
Only needing one system for collecting import containers at the deepsea terminals in Rotterdam – the PCS of Portbase – is convenient. Portbase has developed various APIs (Application Programming Interfaces) for the different services which can be used to transfer the release right within the PCS: ‘Cargo Controller’, ‘Cargo Release Manager’ or ‘Hinterland Container Notification (HCN)’. Because inland operators are already using the service HCN to submit their pre-notifications, there are theoretical benefits to being able to also receive and forward the release right within the same digital environment. An inland operator receives the release right from the client/shipper. This release right gives the inland operator the exclusive right to pre-notify the container in HCN and collect it at the terminal.
In terms of passing on the release right, Portbase makes a distinction between various roles. The ‘Cargo director’ is the party that pays the sea freight dues to the shipping line; in the aforementioned example, this is the shipper or the forwarder. The shipping line releases the container and the Cargo director is able to transfer the release right to the inland operator. Within the Portbase system, the party that possesses the release right has the role of ‘release owner’. This role is continuously forwarded from one company to the next. When the inland operator submits a pre-notification within HCN, the release right is linked to the pre-notification within HCN. By the way, the implementation of the Secure Chain takes place in phases. At present, containers from Latin America, North America, Africa, the Middle East, India and Pakistan are already released by means of the Secure Chain. For import containers from other countries, the old-fashioned PIN code is still used for this.
Integration Secure Chain within the Modality system
To facilitate the collection of import containers in the port of Rotterdam, we offer an API interface with Portbase. The release right can be retrieved either directly via this API or via the service HCN. Within the Modality system, the received Secure Chain releases are displayed in a central list. As a result, customers have access to all the information in one single environment and they do not need to log in to the Portbase web portal.
The Secure Chain in current practice; challenges and confusion
This combined approach by Portbase is solid in theory, but in actual practice the situation is far more complicated. To be able to transfer the release right, every party involved must use the services of Portbase. This is not really an issue for the inland operator, which is already familiar with the PCS; for shippers, this however is not the case.
Parties that are not yet familiar with the services ‘Cargo Controller’, ‘Cargo Release Manager’ or ‘Hinterland Container Notification (HCN)’ are often confused about which service they should use and how exactly they should transfer a release right. Furthermore, they are not always sure about their exact role or they may have multiple roles.
Within HCN, we also see that when the inland operator proceeds to the terminal to collect the container after having directly received the release right from the client, the release right and the pre-notification are usually received correctly there. However, if this inland operator passes the release right on to another inland operator, it often remains linked to the original pre-notification of the first inland operator. This means it cannot be transferred to the inland operator that is actually tasked with collecting the container.
Ideally, the processes for submitting the pre-notification and passing on the release right should also be separated from one another in Rotterdam as it is in Antwerp. This prevents problems from arising when the transport is outsourced.
Certified Pick up (CPu) in theory
In the port of Antwerp, Certified Pick up (CPu) is used. CPu is the term for the collection of an import container by an authorised or certified party through the use of a digitally encrypted release right. While in Rotterdam the release right is passed on via the Portbase system, in Antwerp the process involves two different parties. Shipping lines CMA CGM, MSC and HAPAG transfer the release right via ‘Secure Container Release’ of T-Mining while all other shipping lines use NxtPort for this. Once the sea freight dues have been settled, the shipping line sends the release right to NxtPort or T-Mining. The shipper (or forwarder) issues the order for transport to the inland operator, thus transferring the release right. The inland operator specifies the truck, barge or train which will be used to collect the container. NxtPort or T-Mining communicates this to the terminal. When the inland operator has submitted the pre-notification, which is a separate process from transferring the release right, the container may be collected. The pre-notification is sent by means of direct EDI interfaces with the terminals.
Integration of CPu within the Modality system
For receiving and forwarding releases, Modality has set up API interfaces with NxtPort and T-Mining. The received releases are shown in a central list in the Modality system, eliminating the need for parties to log in to the various portals.In addition, Modality has EDI interfaces available with PSA, MPET and DP-World for the pre-notification of import containers in the port of Antwerp.
Certified Pick up in practice
The individual processes for picking up import containers in the port of Antwerp run quite smoothly. One complicating factor is the fact that the inland operator has to connect with many parties; NxtPort, T-Mining and the various deepsea port terminals such as DP World, MPET and PSA. Setting up five interfaces is a costly affair for the inland operator. In addition, high recurring costs are charged for NxtPort and T-Mining.
In Antwerp, the ability to pass on the right of release via one single portal, just like in Rotterdam, would of course be ideal.
Do you still have questions about passing on the right of release via the Secure Chain or via CPu after reading this article? Or would you like to know more about the technical solutions available from Modality? Then contact our sales department directly via sales@modality.nl or via +31 (0)180 531 035.
