Headquarters Session 2019 - in Zurich - May 2019
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No. 127 | May 2019 Magazine of the International Federation of Freight Forwarders Associations Headquarters Session 2019 in Zurich AN EXCELLENT MIX DON’T PANIC! COUNTRY REPORT Hundreds of delegates How to deal with Assets of la República from all the regions lost Bills of Lading Oriental del Uruguay
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CONTENTS Editorial 5 From the President’s Desk HQ Session 2019 in Zurich 6 AFI, CAI, MTI, Rail, Road, Sea 12 ABIA, ABIT, ABLM, ABSS, ABVT 19 RAME, RAMNS, REU, FLA 22 Association Members’ Forum Working Group Sea 24 Opportunities: Detention / demurrage Country Report 26 Uruguay – a regional gateway in Latin America Meeting the VLA in Vietnam 28 Working Group Sea Transport Good advice on the BoL 29 What to do in case of loss? Exclusive Provider A big hurray for 45 graduates 30 Malaysia’s new generation steps in of the FIATA Group Personally 32 New on Board: Joana Nunes Bond Programme 32 René Zimmermann retiring 33 Meet Ahmed M. Hamed Khaleel – Avalon’s programs are designed specifically for Vice-President of FIATA international logistics providers and our 34 Obituary products and services are tailored for FIATA members. In addition to the FIATA Group Bond Here & There / Agenda Programme, we also offer the following: 35 Happy Birthday! 35 Forthcoming Events ► Forwarder’s Liability Insurance 35 Masthead ► Errors & Omissions Insurance ► Surety Bonds Cover ► Cargo Insurance Beautiful Zurich ► Business Insurance in full bloom. ► Claim Handling & Subrogation Services Photo: Thinkstock Contact us at fiatabond@avalonrisk.com or +1 847 700 8176. FIATA Secretariat Schaffhauserstrasse 104 www.avalonrisk.com CH-8152 Glattbrugg/Switzerland Phone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 65 info@fiata.com, www.fiata.com No. 127 | May 2019 FIATA REVIEW 3
THE LARGEST AND MOST INFLUENTIAL BUSINESS PLATFORM IN THE WORLD FOR THE FREIGHT AND LOGISTICS INDUSTRY. 1200 +75 60 15 PARTICIPANTS COUNTRIES EXHIBITORS HOURS OF REPRESENTED NETWORKING REGISTER NOW REGISTER NOW AND BOOK ACCOMMODATION AT THE SAME TIME www.fiata2019.org The International Federation of Freight Forwarders Associations (FIATA), with the South African Association of Freight Forwarders (SAAFF), is pleased to announce that the 2019 World Congress will take place in Cape Town, South Africa from 1 to 5 October 2019. FIATA SAFARI PRE-CONGRESS DAY TOURS BOOK GOLF - STEENBERG ACCOMMODATION FIATA World Congress 2019 Organiser: T +27 (0)21 683 2934 E info@fiata2019.org www.fiata2019.org
FROM THE PRESIDENT’S DESK Dear Colleagues and Friends F IATA held its Headquarters Session 2019 in Zurich, Switzerland from the 27th – 30th of March. This was a trainer courses, which will be provided to FIATA members with limited re- sources, to deliver to their members for productive Session, where FIATA mem- training initiatives. bers came together to address the chal- – Overview for members of the implication lenges that have arisen over the last relating to Brexit, noting in particular the twelve months in international trade and impact on physical resources relating to therefore also in international transport, the movement of goods across borders, a through changing bilateral and multilate- significant increase in the submission of ral trading arrangements and positions customs declarations, and other certifi- of some of the world’s larger economies. cates relating to origin and phytosanitary FIATA discussed issues with repre- issues to support border clearance. sentative national association members The MTI Working Group Sea report- from 108 countries, addressing the follow- ed on an enlightening case from Antwerp, ing, amongst others. which is fully in line with FIATA’s best – The digitalisation of FIATA documents, practices concerning ‘Demurrage and De- in particular its multimodal bill of la tention in Container Shipping’, which state ding, and the potential of the enhance- that when demurrage arose from terminal ment of its use in international trade, in congestion beyond control of the mer- particular its common recognition also chant or forwarder, the latter should not by financial institutions. be liable for expenses. – The key work being undertaken between The HQ Session 2019 also witnessed FIATA and IATA concerning improve- changes in the Secretariat team. Mr. René ments and changes to the industry’s air Zimmerman retired after 14 years of ser- cargo programme. vice to FIATA. FIATA appreciates his con- – Delivering information to members to tributions and wishes him the best in his support them in their ongoing informa- retirement. I am very glad that Ms. Joana tion technology protection processes, Nunes has joined the team to be the new through the release of a best-practice pa- MTI Manager. Joana is from Portugal and per on cyber security. has qualified as a lawyer, she has previously – Release of best-practice guidelines on also worked with the Portuguese Freight container process management, focus- Forwarders Association. ing on the quality of containers p rovided It is with great sadness that we heard of by shipping lines, which it is noted has the passing away in early March of RAME decreased significantly, and the need for Chairman Mr. Stephen Elias J oseph shipping lines to provide empty con- Ngatunga. Stephen was a passionate practi- tainers that are ‘fit for purpose’. tioner as well as an industry leader com- – Release of its first three e-training mo mitted to promoting FIATA in the RAME dules, covering the ‘introduction to inter- region. FIATA expressed its deep condo- national trade’, ‘maritime’ and train-the- lences to Stephen’s family. Kind regards, Babar Badat FIATA President No. 127 | May 2019 FIATA REVIEW 5
HQ SESSION 2019 ANOTHER DELEGATES RECORD AT HQ MEETING A great event! The number of delegates and attendees at the HQ Session in Zurich underlined our members’ extensive interest in FIATA’s institutes and working groups. The broad variety of meetings and sessions held was once again unmatched. The new e-registration tool passed its test, and the provision of a ‘goody bag’ by ‘Zurich Tourism’ has become a fine tradition. O ver 276 participants joined FIATA’s 2019 Headquarters Session from the 27th to 29th of March in Zurich, with and improved features were introduced, such as an event app and the extension of the free pass for public transport. This, ‘Zurich Tourism’, which again provided a ‘goody bag’. Thank you Zurich for the warm welcome to our delegates! a record spread of delegates from more and a fine-tuned e-registration option, The FIATA team cherished having you, than 69 countries! The Crowne Plaza launched a great variety of excellent ses- our members, with us, and is looking for- Hotel Zurich remained the venue, and new sions. We also put our hands together for ward to welcoming you again next year! 6 FIATA REVIEW No. 127 | May 2019
HQ SESSION 2019 AIRFREIGHT INSTITUTE (AFI) Delegates assembled for the 100th AFI Meeting on Friday the 26th of March 2019. The Chairman, Mr. Keshav Tanna, ACAAI, India, informed his audience that FIATA was celebrating the 100th AFI Meeting and the fiftieth birthday of its existence – see also page 6 of FIATA Review, No. 126, March 2019. He announced the presence of two for mer AFI Chairman, Mr. William Gottlieb and Mr. Rodolfo Sagel, and regretted the fact that two other past Chairmen, Mr. Sarosh Nagarvala and Mr. Herman Donker, were not present at this centenary meeting. These past Chairmen had also made immense con- tributions to the AFI. “All of these gentle- men have devoted many, many years to AFI and brought it to where it is today.” The meeting received two presen- tations from Guest Speakers. The first, Mr. Ariaen Zimmerman, Executive Di rector of Cargo iQ, informed his audi- ence of “Cargo iQ? The Importance of Planning & Control for the Air Cargo Industry”. Cargo iQ is an IATA special interest group, made up of forwarders, carriers, ground handling firms, trucking companies, IT enterprises and strategic partners, such as airports. The second presenter was Mr. Steven Polmans, TIACA Vice Chair, Head of Photos: FIATA Cargo & Logistics of the Brussels Airport Company and Chair of Aircargo Bel- gium. He presented “Collaboration and Opportunities FIATA / TIACA”. The Executive Director of Cargo iQ, Ariaen Zimmermann, put forward the IATA special Mr. Polmans complemented Cargo interest group’s goals in planning and managing the air cargo industry. IQ by announcing that Cargo Service Quality (CSQ) is a new assessment tool body can do this better, as Mr. Polmans which will benefit the airfreight forward- to measure clients’ satisfaction. Forward- stated. Therefore, TIACA has a different ing industry globally and regionally. ers using the tool are able to rate the level strategy and is seeking the collaboration However, some other topics continue to of service quality provided by Cargo Ter- of FIATA and of its Forwarder Members be painful and the AFI is tirelessly march- minals. The collected research data will to strengthen its CSQ tool to improve ing on to overcome obstacles and to provide unique and transparent informa- services provided at airports. achieve change, withdrawal or improve- tion that will flow in the CSQ’s journey, The Deputy Chair, Mr. Mike Jones, ment related to certain rules or measures consisting of Quality Assessment, Bench- provided an update on recent delibera- introduced by IATA and / or its members. marking and Improvement, and will lead tions made at the IATA / FIATA Consul- Mr. Bill Gottlieb, FIATA Past Presi- to higher standards and to Excellence. tative Council (IFCC). Members were dent, provided an interesting update TIACA would like to work together notified of some positive achievements, on ICAO, the status and a preview of closely with FIATA on different topics. It which promise significant improvements the Dangerous Goods collaboration, does not want to duplicate FIATA, which to conditions, or in other words, a re- the evolvement of Training Centres and is the forwarders’ organisation, and no- lief of some cumbersome requirements, an overview of GACAG and its agenda No. 127 | May 2019 FIATA REVIEW 7
HQ SESSION 2019 that was recently set for the year 2019. work and structure of the different WCO INCOTERMS 2020 Ms. Joana Nunes, FIATA’s IFACP Gov- working bodies and sub-groups, and how Mr. Tej Contractor gave an update on ernance Manager, provided an update on FIATA has contributed to WCO decision- the next edition of the Incoterms and re- the programme and the ongoing discus- making processes throughout this time. ported what the ICC working group, in sion of amendments to the IFACP For- Members had the chance to learn which FIATA is included, has being de- warders Agreement. more about the recently-adopted ‘WCO veloping it for the past three years. The Chair then provided further com- Framework of Standards on Cross-Border The first edition of the Incoterms ments on this topic and informed mem- E-Commerce’, a freshly-launched Compre- started in 1936, and we are now on our bers of some strong headwinds that are hensive Review of the Revised Kyoto Con- way to the 9th edition in 2020. The first being faced by the IFGB, the issues being vention (RKC), the work of the WCO on draught of this updated edition was made mainly legal in nature. He praised the tre- ‘the Future of Technologies’, as well as other in August 2016, and it is envisioned that mendous efforts that had been invested by ongoing WCO activities in 2019. the final text will be concluded in June Board Members on both sides – A irlines The issues of e-commerce and the 2019. In Cape Town FIATA will be able and Forwarders. However, he said that RKC Review were identified as crucial to present the final text, set to become “somewhere along the line, legalities have and deserving special attention. New, effective in January 2020. perhaps moved ahead of commercial re- amended or created standards and pro- Throughout this process there were sev- quirements. That said, both sides, airlines cedures that will pave new ways for our eral points that were analysed by the FIATA as well as forwarders on the IFGB, are try- industry in Cross-Border and Customs team and the ICC working group. Should ing to ensure that all efforts and time fruc- issues were on the agenda and debated EXW / DDP be applied in domestic moves tify into a successful Global Programme.” at the WCO and, once finalised, will be- only, is insurance coverage sufficient or come WCO rules and eventually rules in should clause A be included, should FOB many of its Member States. be excluded for containers, should FAS Ms. Stoyanova noted that it is impor be deleted, should scanning of containers tant to grasp every opportunity to con- and VGM be included in the Incoterms, CUSTOMS AFFAIRS tribute to key WCO developments. CAI should we have separate Incoterms for e- INSTITUTE (CAI) is looking forward to FIATA members’ commerce? FIATA has given comments and CAI delegates’ support, and encour- and inputs on all of these matters. ages members to provide their valuable CIF and CFR have been in use for a CAI MEETING, HQ, MARCH 2019 and rich input with regards to the issues very long time for inland waterways or sea The CAI Chair Mr. Steve Parker intro- discussed during the meeting, in particu- transport CIP and CPT have been added duced CAI’s special guest, Ms. Ekaterina lar the revision of the RKC. afterwards and are being used effectively in Stoyanova, who recently took over from any mode of transport. There was a discus- Mr. Ferdinand Desmazières as FIATA’s BREXIT sion in the last draught to allow CIF / CFR representative at the World Customs The CAI Chairman informed and up- to inland destinations as well. FIATA feels Organisation (WCO). Interested FDDS dated his audience on Brexit, with the this would create confusion and therefore readers, being CAI Delegates or FIATA aim that forwarders and logistics service recommends the use of these terms as they Associations receiving CAI documents, providers themselves apply and prepare are currently used. may already have benefited in the past possible scenarios. Insurance form Clause C to Clause A. from excellent reports derived from meet- However, as the world knows, the The second draught sought to change ings related to CAI and the WCO, etc. Brexit is now postponed and we will have Clause C to Clause A, but in the third All this information, provided with docu- to check the future outcome and the draught CIF shipments retain Clause C ments, is meant to serve and assist FIATA news for an ongoing and longer time. We and CIP / CPT will allow the minimum members for advocating with their Gov- shall see how exactly this amazing Brexit standards to be under Clause A. FIATA ernment Agencies for the improvement is going to be fixed – or maybe disappear. insisted that it would not be positive to of their constituents’ daily work with have two different minimum standards. Customs Authorities. The quality of these EXW to be loaded in the means tools and the benefit gained from them of transport. It is not practical that the was confirmed by attendees from Canada buyer arranges the loading of the goods and Australia. MULTIMODAL at the seller’s premises, but still the ICC TRANSPORT (MTI) maintained EXW not loaded. THE WCO Regarding transport documents, of- Ms. Stoyanova informed delegates of FIA- The Chairman of the Multimodal Trans- ten in FCA and FOB the seller is required TA’s involvement in relevant discussions port Institute, Mr. Robert Keen (UK), to produce the transport document at the at WCO level. She presented in detail the welcomed a large number of participants. buyer’s risk and expense. FIATA suggest- 8 FIATA REVIEW No. 127 | May 2019
HQ SESSION 2019 ed that the ICC brings to the terms what FIATA with other international organisa- Group on the e-FBL, which is a joint is happening in practice. tions and also on the interaction of the WG (ABIT, ABLM and MTI) under the One additional change is changing Working Group Rail with various other leadership of ABIT. It is already evaluat- the name of DAT to DPU. It will be bodies of FIATA. ing the introduction of a FIATA e-FBL, only a name change, with no substantial Cooperation with the OSJD is ongoing. which can also be issued for railway change in the contents. The second meeting of the enlarged Work- transportation. ing Group FIATA / OSJD on Rail Trans- Regarding UNECE, FIATA parti BEST PRACTICES GUIDE ON port was held in Istanbul, Turkey. The meet- cipated in a meeting of the UNECE CONTAINER SHIPPING AND ing was hosted by UTIKAD, the Turkish Inland Transport Committee on inter THE QUALITY OF CONTAINERS Forwarders Association, with 55 partici- national Transport and Logistics, held in Mr. Jens Roemer (Belgium), Chairman pants from 18 countries discussing ‘new Geneva (19th – 21st of November 2018). of the Working Group Sea Transport, in- possibilitiesofEurope – Asia – Europemulti- The Working Party organised a workshop troduced its ‘Best Practices Guide on Con- modal transportation’. The following top- on Intermodal Transport, which con- tainer Shipping and the Quality of Con- ics were addressed. tributed to the realisation of the goals of tainers.’ This is the second volume of the 1. Multiple transport and trade facilita- the 2030 agenda for sustainable develop- MTI’s Best Practice publications, with the tion agreements / initiatives will benefit ment, and also for facilitation of cross- first related to demurrage and detention, the railway sector in a long term. border activities, increase of railways’ which was introduced at the FIATA World 2. Forwarders and railway operators are ability to compete and enhanced coop- Congress in New Delhi. The FIATA WG pioneers in the overall process; one eration between various stakeholders. Sea has received a lot of acknowledge- example is the operation of China – Furthermore, the CLECAT Rail In- ment and positive feedback from FIATA Europe blocktrains. stitute meeting took place on the 14th of members and other stakeholders on the 3. The next meeting with OSJD officials November 2018 in Brussels. first volume, and was therefore pleased to will probably be in 2020. The old Combined Transport Di- release its second Guide on Best Practices 4. The joint OSJD / FIATA learning pro- rective, dating back to 1992, has been focusing on the quality of containers. gramme is being prepared, for FIATA interpreted with significant differences Forwarders often try to pick up empty and OSJD to strengthen their forces in amongst the Member States, which led containers and then notice that it is in a education. The ABVT is also involved to the Commission’s proposal for the re- bad condition and not suitable for trans- in this programme, and both FIATA view of the Directive. The compromise port. In the meantime, transport has and the OSJD are committed to im- ‘Proposal on Combined Transport’ was been arranged and charges have occurred. plementing a programme that will re- presented, which intended to limit the Shipping lines usually refuse to take any spond to market needs. scope of the CT Directive to apply only responsibility, leaving the forwarder with Further information on the draught to international CT operations (inclu additional costs and possibly an unhappy of this programme will be released in ding intra-EU movements and opera- customer, due to the delay. South Africa, at the FIATA World Con- tions between Europe Union Member In a nutshell, FIATA noticed the qual- gress in October. States and third countries), but exclu ity of containers provided by shipping FIATA participated in a CIT meeting, ding domestic CT. lines has decreased substantially and one the fifth meeting of the Multimodality The Forwarders’ priorities for rail has to come to the conclusion that ship- Committee, which was held in Bern, Swit- continue to be to improve service quali ping lines are cutting costs in the mainte- zerland, on the 16th of November, where ty, promote competition and promote nance of equipment. FIATA’s guide iden- several topics were discussed, including the multimodal transport by strengthening tifies responsibilities, refers to practical legal regimes (CMR-CIM-SMGS) in col- combined transport. considerations and suggests best practices laboration with the IRU. A Comparative Under the FIATA / UIC partnership that could be implemented by all parties in Table was presented to delegates. Mr. Erik Mr. Petrov informed his audience that the order to avoid customs that lead to delays Evtimov from CIT will have a meeting Market Place Seminar 2019 will take place and unnecessary supply chain costs. The with FIATA’s railway specialists during this during the Transport Logistic trade fair in document allows National Associations, HQ Session, and F IATA made it very clear Munich, Germany, on the 4th of June. members of FIATA, to attach their logo that the Negotiable FIATA Multimodal Mr. Petrov showed his appreciation for the to it and use it in their national discussion Bill of Lading is the only existing docu- work carried out on behalf of the WG Rail. and negotiations. ment that can be issued as well as used in railway transportation operations. ROAD RAIL Regarding this topic, and consider- Mr. Mark Bromley (BIFA), in the absence Mr. Ivan Petrov reported on tendencies ing the urgency of digitalising the FBL, of Mr. Tomas Suhanyi (Slovakia), Chair- in the railways and how the are moving Mr. Petrov also informed his audience man of Working Group Road Transport, into multimodality, on the interaction of that there is an ad hoc FIATA Working reported that there were two new acces- No. 127 | May 2019 FIATA REVIEW 9
HQ SESSION 2019 sions to the TIR Convention – Argentina in October 2018 and Oman in Novem- ber of the same year. There was a case study shown, of an intermodal TIR transport from the UAE to CZE. The movement of goods be- tween Free Zones in the UAE was made without the need to pay 5% customs du- ties and taxes deposit, with a total saving for three containers of approximately USD 14,000. There were simplified cus- toms clearance procedure in the UAE’s customs processes, which led to saving of cost of customs clearance at customs of departure and exit by AED 350 (using TIR) vs. AED 750 (non-TIR). In this transport task, priority was given to inspection for TIR operations, reducing the waiting time to approxi- mately 30 ~ 45 minutes vs. two hours without TIR. Customs stamps on the TIR carnets, eliminating the use of Exit / Entry Certificate, saving time by only two hours with TIR (integrated IT systems) at the customs of exit vs. the average three days that are spent at the customs of exit to obtain an exit stamp on the ‘Exit / Entry Certificate’. The main benefit of the use of TIR is that TIR is used as a guarantee for pay- ment of customs duties and taxes and transit declaration for the rail leg between Germany and Czechia, and also that the New Delhi the WG Sea again met on the nal report was published in December German and Czech customs authorities 12th of February in Ho Chi Minh City, 2018, with the following conclusions and accepted the use of sub-contractors in the hosted by VLA and coinciding with an recommendations: intermodal TIR operation. event hosted by VLA for its members. 1. Transparent, standardised language for Regarding the member updates on It was well attended, not only by VLA dem / det practices should be available. the Working Group Road, the main members, but also by HAFFA members, 2. Clear, simplified, and accessible de- topics addressed were the changes in with the event ending with a visit to the murrage and detention billing practi requirements in Freight Forwarders’ Tan Cang – Cat Lai container terminal. ces and dispute-resolution processes licences in Turkey, the lack of secure On maritime security, the Work- should be available; parking areas for trucks in Europe, and ing Group Sea has been advised by the 3. Explicit guidance regarding the types also the implications of Brexit, regarding Japanese Association that the 24-hour of evidence relevant to resolving de- the current state of play and contingency rule advance manifest is being enforced murrage and detention disputes should plans for the UK and Europe. strongly and non- compliant containers be available; The European Union issues were will not be discharged. 4. Consistent notice to cargo interests of dealt in the Region meeting Europe Concerning the FBI investigation of box availability and an FMC Shipper major shipping lines on price-fixing practi Advisory Board to be created. SEA ces, the US department has dropped an in- On the FMC tariff filling require- Mr. Jens Roemer (Belgium), Chairman vestigation, clearing all firms involved in the ments, the FMC have made several of the Working Group Sea Transport, re- investigation that started in March 2017. amendments in the rules for tariff filling ported that the focus of the WG Sea was On the FMC investigation on de- requirements as it changed, modernised, on the Best Practice Guide introduced at murrage and detention fees by container updated and reduced regulatory require- this meeting. After the WG meeting in shipping lines (Fact Finding 28) the fi- ments, eliminating filing requirements 10 FIATA REVIEW No. 127 | May 2019
HQ SESSION 2019 write an article on the interesting deci- Some examples on how the terminal sion of a court in Antwerp that has sup- could benefit from a contractual relation- ported a forwarder in its claim that the ship with the Forwarder were given and charging of demurrage charges is unjust are available in the report, which will be in case of congestion. This will be done uploaded to FIATA’s website. for the next issue of the FIATA Review. IMO 2020 SULPHUR CAP GLOBAL MARITIME The new lower 0.5% limit on sulphur in LOGISTICS DIALOGUE ships’ fuel oil will be in force from the An initiative lunched by the International 1st of January 2020, under the IMO’s Transport Forum. In early 2017 it sug- MARPOL treaty, with benefits for the gested a meeting of stakeholders in the environment and human health. The logistic chain (shippers, ports, terminals, new limit will be applicable globally – shipping lines and freight forwarders), while in designated emission-control with the objective of increasing the per- areas (ECAS), the limit will remain even formance of the maritime logistics chain lower, at 0.1%. via collaboration and dialogue – consi Most ships are expected to utilise dering that there are still many win-win new blends of fuel oil, which will be opportunities. This could be achieved by produced to meet the 0.50% limit on bringing together the leaders of the five sulphur in fuel oil. Currently, the maxi- members stakeholders group and inter mum sulphur limit in fuel oil is 3.5% national organisations. globally (and 0.1% in the four ECAS; The first meeting was in 2017 and namely in the Baltic Sea area; the North the last meeting took place in Decem- Sea area; the North American area (cov- The Crowne Plaza Zurich ber 2018 (fourth meeting). The next ering desi gnated coastal areas off the remained the venue for meeting is scheduled will be held in United States of America and Canada); 2019’s FIATA HQ Leipzig in May 2019. and the United States Caribbean Sea Meeting. The FIATA WG Sea recommends area (around Puerto Rico and the Unit- the ITF report on “Information sharing ed States Virgin Islands). for e fficient maritime logistics”, which is The sulphur regulation also allows ves- available on the ITF webpage. sels to meet the requirement by alternative means, such as scrubbers, which allows a for negotiated overall rate agreements un- CONTAINER TERMINALS AND ship to continue to use fuel oil which has der certain conditions. CONTRACTUAL RELATIONS a high sulphur content, as the scrubber This has been a great achievement re- Is there a need for a contractual relation ‘cleans’ the emissions on the ship. sulting from many years of lobbying by between freight forwarders and termi- Whilst sea transport is (relatively) FIATA and TIA. nal operators? The Working Group dis- one of the most environment-friendly cussed the need for a contractual rela- modes of transport, there is a lot of room EUROPEAN CONSORTIA tionship between terminals and freight to reduce the overall environmental im- BLOCK EXEMPTION forwarders acting as carriers. pact of ships and their engines even fur- REGULATION (BER) Due to ever-bigger vessels, high ther. As such, the Working Group fully The BER exempts certain activities of peaks and related cascade effects, many supports all of theses steps and is fully consortia from competition rules, and terminals around the world have to aware that it will have a serious impact it is up for renewal in 2020. Stakehold- deal with congestion. On the other on transport cost. ers were asked to comment, and FIA- hand, forwarders often try to speed up Some shipping lines started to an- TA /CLECAT’s main concerns are legal the delivery or receipt of a container – nounce Sulphur Surcharges to be im- certainty and the concern that any such which would be an advantage for ter- plemented prior to January 2020, well block exemptions should clearly be fo- minals. But the contractual relation- ahead of the actual implementation date. cused on sea freight activities from port ship is between carrier and terminal, The Working Group is concerned that to port only. which gives the forwarder no room to shipping lines may abuse the regulation A verdict in a court in Antwerp re- negotiate terms with the terminal that to implement unreasonable surcharges, lated to demurrage charges due to con- may lead to less ‘in-terminal hours’ of in order to increase profits. The Working gestion in a container terminal. Due a container, and to higher productivity Group decided to refrain from making a to other commitments we have yet to of a terminal. public statement, however. No. 127 | May 2019 FIATA REVIEW 11
HQ SESSION 2019 ROTTERDAM RULES – UPDATE CMA CGM has recently purchased the ADVISORY BODY The formal name of the Rotterdam firm Ceva and a handful of container INTERNATIONAL Rules is the United Nations Convention shipping lines have joined forces to joint- on Contracts for the International Car- ly develop digital products. AFFAIRS (ABIA) riage of Goods Wholly or Partly by Sea. As of today only a few countries THE DIGITALISED FIATA BILL The Advisory Body International Affairs have ratified the convention into their OF LADING (E-FIATA B / L) AND (ABIA) held its annual Headquarters Ses- national law. Another 20+ countries THE PROPOSAL OF A FIATA sion meeting with vibrant participation have signed the convention. To become PLATFORM from all in attendance, to hear about the International law, 20 countries will The e-FIATA B / L is a project run by body’s work over the past five months need to have ratified the convention. ABIT and the WG Sea is highly commit- and also to highlight a new and emerg- The effective date will be twelve months ted to support FIATA and ABIT on these ing topic that typically goes overlooked after the 20th country finalises its over- projects. The Working Group keeps in in our industry. FIATA members had a all ratification process. close contact with ABIT and is updated first-hand look at how refugees and im- The signing of the convention is by ABIT on the further developments. migration impacts international trade expected to gain momentum after the and encourages governments to engage United States of America has signed the INTERNATIONAL MARITIME in protectionist policies. convention. But the overall timing re- BUREAU – NVOCC REGISTER After opening the meeting, the ABIA mains uncertain and does not appear to AND CODE OF CONDUCT Chair Mr. Paul Golland asked Mr. Bassil have ben accorded any priority. There is (FOR NVOCC) Eid to provide a brief update of FIATA’s nevertheless encouragement from vari- The International Chamber of Com- recent participation in the 2018 UN ous sources (CMI) to motivate govern- merce (ICC) International Maritime High-Level Political Forum in New York. ments to sign the Rotterdam Rules, also Bureau (IMB) launched its Non- Mr. Eid informed delegates that this was in view of its relevance with regard to Vessel Operating Common Carriers the one time every year that the UN electronic commerce. (NVOCC) Register and Code of Con- opens its door to the private sector’s in- FIATA has adopted a neutral stance duct on the 15th of January 2019. put, and that it specifically wants to hear and it is for FIATA Association Mem- It is noted that there is a prevalence from the trade and logistics industry re- bers to decide on whether they support of incorrect NVOCC bills of lading pre- garding its role in achieving the newly- the Rotterdam Rules or not and make sented to banks and other stakeholders established 17 Sustainable Development any representations, for or against, to in the trading and finance chain, with Goals (SDG). their own governments. the aim of defrauding the trade finance Although logistics does not have a system, possibly for the purposes of standalone goal in the SDGs, it is nev- DIGITALISATION multiple financing, money laundering, ertheless mentioned 20 times in direct It is expected that in coming years etc. The ICC estimates that more than targets, which are critical to SDG imple- our industry will go through dramatic 95% of the false bills of lading the IMB mentation. Mr. Issa Baluch participated changes. With the event of digitalisa- identifies are issued by NVOCCs. on a panel in June last year with other tion, big data and the Internet of Things The purpose of the NVOCC Reg- private sector stakeholders where he em- (IoT), there will be challenges and also ister is to improve anti-fraud standards phasised focus on logistics connectivity opportunities for operations by tradi- and provide a mechanism to recognise within the proposed SDGs to ensure a tional Freight Forwarders. participating NVOCCs that adhere to future of sustainable trade and long term Threats are not only expected to a minimum standard of anti-fraud mea economic prosperity. come from the traditional market play- sures in their operations. Following the SDG update, the ers, but also from start-up companies When it comes to an international meeting moved to our panel with our with very strong IT bases and substantial quality standard related to NVOCC first speaker, Ms. Rosa Losada, a Re- access to funds. On the other side, the Bill of Ladings, ideally it should have a search Fellow at World Trade Institute. concentration of shipping lines will lead major involvement of FIATA, with the Ms. Losada briefed delegates on the inter to very powerful and big companies with FIATA B / L additionally being the pre- dependencies between migration, human their own plans and agendas. Maersk ferred document. rights and trade and investment in fos- Line is very transparent in its ambition to The next meeting of the Working tering development in third-world coun- become the integrator of container logis- Group is scheduled to be held in Beirut, tries, using the common concern theo- tics, in the process being a serious threat Lebanon. It is simultaneously scheduled retical framework. She highlighted that for our industry. Their Trade Lens prod- to coincide with the RAME meeting, many key migrants put forth immense uct was discussed and reported on in the which in turn is set to be held from the efforts to integrate into societies that are previous report. 24th to the 26th of June 2019. foreign to them and contribute to eco- 12 FIATA REVIEW No. 127 | May 2019
HQ SESSION 2019 nomic development, to boost prosperity different groups with different perspec- having a specific sub-set of states bearing for all. She advised her audience that un- tives of migration, ranging from those the full burden of responsibility as well fortunately, political agendas play a role that support migration to those that wish as of costs. in restricting migration and political pro- migrants would leave and go back home. Following on from all three engaging ponents use this topic as a tactic to gain She believes that religious and cultural presentations, Chairman Mr. Golland popularity and garner votes, especially as upbringing play a role in establishing opened the floor for questions that co elections near. These anti-immigration which group a person belongs to. vered a wide range of queries, from how political agendas also spill over into trade, Ms. Jaamac was followed by Ms. Jose technology has impacted migrant flows, as when migrants are no longer able to phine Liebl, the Head of International to what the private sector can do to help cross borders, there is also a tendency to Advocacy at the European Council on promote the value of migrant workers in reduce the import of goods with less de- Refugees and Exiles, who gave a more their day-to-day operations. mand for imported goods. Euro-centric view on immigration. She As time ran out, Mr. Golland an- Following Ms. Losada, Mr. Golland highlighted the political crisis in Europe, nounced the closing of the meeting, gi introduced Ms. Khadija Jaamac, of the which focuses on the influx of immigra- ving details of the next meeting that will Somaliland Swiss Association, from tion from Eastern European and Middle be held at the 2019 FIATA World Con- Bern, Switzerland. Ms. Jaamac experi- Eastern states. gress in Cape Town, South Africa, in Oc- enced the migrant experience person- This has resulted in a string of re-na- tober of this year. ally, having migrated from Somaliland tionalistic policies and the rise of political to Switzerland. She told her audience movements that are centred on anti-im- about her experiences during an evening migration sentiments. Regardless of the with friends, with her friends discussing facts and statistics, immigration is some- their dislike of migrants who have come thing that voters can see in their everyday ADVISORY BODY to Switzerland, but in the meantime also lives and is therefore more easily relatable INFORMATION refusing to acknowledge Ms. Jaamac as to than statistics, such as immigration’s a migrant herself, because she was seen contribution to raising economic wealth, TECHNOLOGY (ABIT) as a friend and already established as a for example. The European Union has member of society. However, Ms. Jaamac proposed advocacy on responsibility The topic of Information Technol- explained that integration was a process sharing inside the EU; external Affairs, ogy (IT) has witnessed a revival within and required time. She highlighted three Return, Inclusion, EU funding instead of FIATA, and the body has grown and reshaped itself to meet the demands of FIATA members. At our annual 2019 HQ session, the Advisory Body Informa- tion Technology (ABIT) chair Ms. Anne Sandretto advised members that the body will focus on practical projects, starting with recent work and the development of the electronic FIATA Bill of Lading (e-FBL) and move on to a diverse panel of experts to discuss the future of IT de- velopments in the logistics sector. Mr. Bassil Eid, ABIT manager, start- ed the discussion by updating members on the recent development of the e-FBL. He advised his audience that FIATA worked with an IT Supplier called ess- DOCS, conducting five pilots with five Association Members (France, Vietnam, Romania, Netherlands and South Afri- ca), taking on board a freight forwarding member to execute an FBL on the digi- tal platform. The pilot revealed the key requirements needed to move the project forward in developing a fully-fledged ABIT manager Bassil Eid explained the pilot for the electronic FIATA Bill of Lading (e-FBL). overall solution. No. 127 | May 2019 FIATA REVIEW 13
HQ SESSION 2019 In the primary launch of the pilot all the lar AWB. The security of One Record is freight forwarder’s stakeholders (agents, managed through a Trust Network. The banks, carriers, etc) were not taken on steps to bring a user on board are as fol- board into the digital system, making it lows. Register the One Record partici- difficult for them to execute an e-FBL pant through a dedicated accreditation shipment. Therefore, it was required to process; issue a One Record certificate offer a solution for forwarders to print as an identifier; verify the validity of the the e-FBL, after producing it in the digi- One Record certificate; and finally, man- tal system, and through a secure barcode aged by the data owners, regarding who and chip circulate the e-FBL through the can grant access to specific companies or supply chain. groups of companies. Mr. Mulder said As the e-FBL circulated to various that currently, 60 participants from all stakeholders in the supply chain, those areas of the air cargo industry are partici- stakeholders have the capability to scan pating in this project, which includes five the barcode through a downloadable ap- freight forwarders, 21 airlines and two plication, pull up data that confirms the customs authorities. authenticity and ownership of the FBL, Following Mr. Mulder’s presentation, as well as providing tracing updates of the Mr. Salvatore Bocchetti, Strategic Direc- stakeholders that received it. tor at Flyability, took the floor to discuss This system will also allow FIATA the practical uses of drone technology in members to use an electronic FBL with- confined spaces. This presentation high- out having all of the stakeholders in the lighted a different angle for the use of digital platform. Mr. Jaco Voorspuij, Se drones, as previously drones were viewed nior Manager Transport & Logistics at as a last-mile carrier that was not a market- GS1, confirmed that it is available to pro- ready product for the logistics industry. vide GS1 standards, such as the Global This drone technology, however, was cre- Location Number, uniquely identifying ated to operate in confined spaces, such as each user in the system and enhancing warehouses and ports, moving parcels over security within the e-FBL and FBL. The short distances within a small space, or applicability of using this platform to utilising drone technology for inventory tions and their work in the IT logistics execute and / or exchange Fiata Members count through barcode scanning. field. She said that FIATA will remain on HBLs, and / or information with the dif- Mr. Bocchetti presented an overall top of the ongoing technological deve ferent stakeholders through the overall case for drones in the logistics industry lopments and continue to advise mem- supply chain, was also studied and dis- that could add value today and not in the bers accordingly on projects, both inter- cussed in the meeting. future, for which it is predominantly seen nally and externally. Following FIATA’s update on the as a last-mile carrier. e-FBL, Mr. Henk Mulder, Head of Digi- Before closing Ms. Sandretto updated tal Cargo at IATA, detailed IATA’s new members on the European Digital Trans- ‘One Record Project’. IATA’s goal is to port Logistics Forum, which she attend- establish an end-to-end digital logistics ed as ABIT Chair in March 2019. She ADVISORY BODY and transport supply chain, where data advised listeners that the second phase LEGAL MATTERS is easily and transparently exchanged in has commenced, creating two working a digital ecosystem of air cargo stakehold- groups: 1) Paperless Transport and 2) (ABLM) ers, communities and data platforms. Corridor Information System. The first The essence of the One Record is to move working group focuses on assisting the The session of Advisory Body Legal Mat- from a peer-to-peer messaging model to a implementation of the e-FTI Regulation, ters (ABLM) took pace on the 28th of data-sharing model, relying on a Virtual while the second working group aims to March, and it featured an informative Single Record. Data is shared through an create a European Generic Digital Plat- panel discussion on the subject of ‘due Internet of Logistics, using existing web form prototype, offering third-party ser- diligence on sub-contractors’, attended standards, such as HTTP and JSON, vices for transport and logistics, includ- by Dr. Barbara Furrer, Head of Legal relying on standard Application Pro- ing customs-clearance aspects based on Switzerland of the Deutsche Post DHL gramming Interfaces (APIs) to allow for interoperability, amongst others. Group, and Ms. Snowden, Executive example an airline that wants to have ac- Closing the session, the Chair com- Director of the Canadian International cess to the shipment record of a particu- mended the panellist for their contribu- Freight Forwarders Association, and pub- 14 FIATA REVIEW No. 127 | May 2019
HQ SESSION 2019 Ms. Snowden: You get what you pay for. The rate is critical, however; if everyone presses prices down, then this leaves no margin for the supplier to train employ- ees properly and adopt new technologies, and then the whole supply chain will suf- fer in the long term. Dr. Furrer: More and more Euro- pean countries have legislation for mini- mum wages for drivers. If a freight for- warder goes only for the low rate, which possibly does not comply with the mini- mum wage, the liability may come back to the freight forwarder. Q2. For truck transport in Europe, people now go to online platforms to search for the cheapest trucker. It is my concern that people neglect the due diligence process when using these platforms, without knowing who the real carrier is. What are your thoughts? Ms. Snowden: every organisation A lively panel should have a qualified supplier list discussion on created based on its past experience. due diligence on It is not clear whether these plat- subcontractors took forms will make proper financial place in the ABLM and qualification assessment over session. the truck companies. It is a ‘buyer- lication of FIATA’s best-practice guide on own liability, fail- be-aware’ situation. ‘The Prevention of Cybercrime’. ure to perform for Dr. Furrer: Most of these platforms Dr. Barbara Furrer said that the DP- customers, fraud, theft do not offer guarantees for the perfor- DHL compliance programme is made up and financial ruin. She cited an example of mance of suppliers. DPDHL conducts of three parts: Anti-Corruption & Busi- a young couple that had to pay a demurrage DD on these platform suppliers, the ness Ethics Policy, Supplier Code of fee of USD 160,000, as one consignee did same way as other suppliers. Conduct, and an Online Due Diligence not pick up the cargo for eight months. This Mr. Gluck: This trend is also deve Questionnaire. Possible criteria to decide tragedy was mainly the result of the couple loping in the United States of America. whether a sub-contractor needs to go failing to do DD on their shipper. Some of these websites will have due dili- through a complete due diligence process She advises freight forwarders to gence guidelines on these suppliers, but include annual revenue, Corruption Per- have one agent in an overseas city to de- forwarders will need to do DD on their ception Index, brand use and some par- velop a more controllable and sustainable own, so prudence is required. ticularly sensitive criteria. partnership. She also suggested forward- She advised her audience that for- ers check questions, such as whether an Q3. Normally, sub-contractors only warders should have back-to-back contract overseas forwarder is a member of FIATA have carrier’s liability insurance, but conditions with customers and suppliers, or its local association, what credibility it the coverage is low; is it legally feasible especially on obligations on service per- has, whether there is a collect house air- to request them to have insurance for formance, liability, demurrage, liens and way bill under the master airway bill, and the cargo? retention rights, and quality agreement. In whether the consignee is known to the Ms. Snowden: CIFFA has a plan supplier contracts it is important to have freight forwarder. to advise member firms to handle only termination rights, in case the supplier is cargo covered by cargo insurance. CIFFA in breach of its compliance obligations. Q1. Some forwarders shop for the low- requests members to have errors and Ms. Snowden started by pointing out est rate, without regard to the reliabili omissions insurance and legal liability in- the risks of not having proper DD, such ty of the party offering the rate. What surance for a minimum of USD 250,000. as non-payment, extension of forwarders’ are the risks of this approach? Insurance is a good way to mitigate risks. No. 127 | May 2019 FIATA REVIEW 15
HQ SESSION 2019 Dr. Furrer: it is possible to request sub- contractors to do so in the contracts. But it is better to make sure that customer have sufficient cargo insurance coverage. FIATA’s best-practice guide on ‘The Prevention of Cybercrime’ was released in the session. FIATA members and global forwarders can go to www.fiata.com – ‘Media’ – ‘Document for download’ to obtain this document. Mr. Michael Yarwood said that this is an ABLM initiative, having recognised the risks posed by cybercrime in recent years. The document provides an intro- duction to the concept of cybercrime, identifies the primary perpetrators, their motivations and objectives, highlights the current regulatory framework, pro- vides guidance on assessing businesses risk exposure and introduces the applica- ble overall IMO framework. ADVISORY BODY SAFETY SECURITY (ABSS) In the Advisory Body The Advisory Body Safety Safety Security session Security (ABSS) presented the main discussion topic an in-depth agenda at addressed DG software this year’s 2019 FIATA for the handling of hazardous goods. HQ Session. The meet- ing began with short up- dates from the USA, Europe before permission is granted and Australia. Mr. Brian Lovell, for cargo to be loaded on air- ABSS Vice Chairman, confirmed craft bound for the USA. that in regard to Australia, as of the Mr. Niels Beuck report ed 1st of March 2019, all export cargo to on a German road freight initiative any global destination needs to originate called ‘Project Cargo’. Organised by the from a known consignor, or receive techni- German policy agency, the unit targets cal screening before being loaded on board organised crime in road freight. The poli an aircraft. Since the 1st of July 2017, all air Mr. Will Sehestedt updated matters con- cy unit has managed to contain a crime cargo bound for US destinations has already cerning the USC-TPAT, highlighting structure in Poland which sent mobile been processed under new arrangements, but that there is a re-authorisation bill in- teams throughout Europe. During 2018- it only represents 5% of Australia’s export air troduced in Congress to revive the pro- 2019, the project has so far resulted in cargo. Everything has gone smoothly so far, gramme. In addition, the US CBP’s Air an 80% reduction in organised road with many large forwarders implementing Cargo Advanced Screening programme freight crime. The plan is to expand this off-airport screening at their facilities, and (ACAS) went into effect in June 2018, project throughout Europe. Mr. Andreas many larger exporters joining the Known requiring a set of pre-shipment advance Wilhelm advised his audience that due to Consignor (KC) export scheme. data to be filed with the CBP for analysis, Brexit it is now necessary to redistribute 16 FIATA REVIEW No. 127 | May 2019
HQ SESSION 2019 responsibility for designation of ACC3, mated 50% less time required. Their pro- Spedlogswiss, with the topic ‘the Dual RA3, KC3 identified entities to the re- posed solution improves regulatory com- Training System in Switzerland’. maining 27 member states. The former pliance and reduces airline’s rejection and The Chairman Mr. Thomas Sim of- are entities handling cargo with destina- therefore reduces regulatory fines. It hasfered the following statistics on valida- tions in the EU. They published a list the ability to send check results electroni- tions and diplomas issued: of these new assignments, which will be cally to internal and external stakehold- – 17 FIATA Associations validated the available to FIATA members. ers, such as a message to the Notification FIATA Higher Diploma in Supply Following the short updates, ABSS to Captain Document, or error reports Chain Management (FHDSCM). Chair Mr. David Fielder advised dele to the shippers, and manage all check – 311 Higher Diplomas in Supply Chain gates that the main discussion topic for processes and report globally within the Management have been issued since this session will address the growth of organisation, which reduces per usage (all 2015. Of these, 153 were issued in DG software and how the industry will DGD are scanned). They currently have REU, 105 in RAP and 53 in RAME. incorporate this technology when hand a cohort of freight forwarding members – 413 Trainer Certificates have been issued ling DG sensitive goods. testing the software, including DHL, since 2011, 182 in RAP, 152 in RAME, FIATA invited speakers from Dan- Panalpina, Kuehne + Nagel, and others. 47 in RAMNS, and 32 in REU. gerous Goods Management (DGM) In addition, there were representa- – 61 programmes in 53 countries have and the International Air Transport As- tives from Lufthansa DG department validated the FIATA Diploma in sociation (IATA) to demonstrate their who joined the other two presenters after Freight Forwarding at least once, and dangerous-goods software live for the the session, to meet attendees and answer 45 programmes in 41 countries have audience. Mr. Herman Teering, Manag- any further questions re-validated it in the last four years. ing Director at DGM, primarily focused Following both engaging demonstra- – 15,075 FIATA Diplomas in Freight For- on the multimodal capabilities of DGM’s tions, ABSS Vice Chairman Mr. Lovell warding were issued between the 1st of software. Mr. Teering advised his audi- moderated a panel session. Training was a January 1996 and the 8th of March ence that its products are designed to key question of interest from many dele- 2019. The region with most diplomas is operate together with the most common gates, with both speakers confirming that REU, with RAP, RAME and – last but administrative computer systems, includ- certified training will still be required by not least – RAMNS catching up fast. ing SAP, Navision, AS 400 systems, Unix those utilising the software, as software – 614 FDFF have been issued in the last systems, etc. He confirmed the product should be seen as a tool to supplement ex- six months, with RAP taking the lead. provides automatic insight into what is isting mandatory training requirements A handover of the Validation Certifi- allowed and obligatory in trade, transpor- and the user of that tool is liable. cates followed. BAIF (Belarus), IOFFLAT tation, handling, storage and production In closing the meeting with sincere (Chinese Taipei), TLF (France), AFG and fulfils all the required documenta- thanks to all presenters, ABSS Chair (Georgia), GIFF (Ghana), PIFFA (Po- tion and labelling needs to ensure FIATA Mr. Fielder said that the next meeting land), CBFCA (Australia), TAFLA (Chi- members stay compliant with legislation. will be held at the 2019 FIATA World nese Taipei) successfully re-validated the The software is also updated constantly Congress in Cape Town in October. FDFF. PIFFA (Pakistan) re-validated the to continuously comply with the appli- FHDSCM. Mr. Sim appreciated the im- cable rules and regulations of the ICAO proved quality of training programmes Technical Instructions, which are released coming for re-validation. He noted that every two years; but with more frequent CBFCA Australia’s training programme updates when required. ADVISORY BODY was fully online, which demonstrates the Following Mr. Teering, Mr. Chris- VOCATIONAL trend of online training in the future. tophe Gevrey, Product Manager at IATA, Dr. Saeed of the ITC said that since and Mr. Frédéric Leger, Director APCS TRAINING (ABVT) the negotiation for WTO Trade Facilita- at IATA, demonstrated their DG Auto tion Agreement was concluded in 2013, Check software specifically focused on the This session provided delegates with an the ITC had been assisting countries in air transport sector. They advised listeners update on all ABVT matters, includ- adopting and implementing the agree- that today, checks are performed manual- ing diploma and validation statistics. ment. The ITC’s services in capacity- ly by certified Category 6 trained person- It also features two speakers, namely building for SMEs have evolved with nel to accept or reject consignments using Dr. Mohammad Saeed, Senior Trade time, with training manuals – instruc- IATA checklists. DG AutoCheck is an Facilitation Adviser, International Trade tor-led training – on-the-job coaching – IATA solution built to assist users during Centre, with the topic ‘TFA implemen- train-the-trainer methodology – e-learn- the acceptance process. They highlighted tation – from learning to community- ing courses – community-based learning. the fact that their software helps enhance based learning’, and Ms. Julia Mathis- A Training Manual, ‘SMEs and Trade the checking process time, with an esti- von Planta, the Training Manager of Facilitation Agreement’, is free to down- No. 127 | May 2019 FIATA REVIEW 17
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