FIATA e-Flash No. 203 – 3 July 2019
FIATA AND MEMBERS
FIATA WORLD CONGRESS 2019: GET TO KNOW THE MOTHER CITY
Much can be said about Cape Town’s immense beauty, historical richness and unique diversity. With the FIATA World Congress 2019 happening in Cape Town (South Africa), you now can experience it first-hand! Fondly referred to as the “Mother City”, it is a melting pot full of fun, flavour, and flair. The biggest problem most visitors have is “trying to fit it all in” – so take some time to plan your Congress trip.
–Registration: https://fiata2019.org/registration-hotels/
–Programme schedule: https://fiata2019.org/programme/#schedule
–Day Tours: https://fiata2019.org/travel-and-tours/#sights
For those looking to engage in business activities, the program is full of rich speakers from IBM, Panalpina, Africa Union and Turkish Airlines covering a range of topics from African transport policy to the impact of modern slavery on supply chain.
UTIKAD Report – e-commerce in Turkey potential for development
In parallel with the swift pace of electronic commerce’s growth in the rest of the world, the volume of e-commerce has also increased in Turkey in these years. However, this increase has not yet reached the desired levels in terms of international competitiveness: companies have not developed a sufficient level of awareness, and in particular companies engaged in e-export have faced a number of obstacles.
The report, which aims at facilitating the access of SMEs into export-oriented e-commerce activities and to eliminate the obstacles to export-oriented e-commerce, includes recommendations for increasing the share of export-oriented e-commerce in total trade through the analysis of different conditions, including logistics processes, and in particular their optimization.
For more details, please visit: http://www.utikad.org.tr/images/HizmetRapor/potentialfordevelopmentofecommerceandeexportinturkeyandlogisticsprocesses-23983.pdf
FIATA Participates in WCO Private Sector Consultative Group (PSCG)
The Private Sector Consultative Group (PSCG) met for its 47th session at the WCO headquarters in Brussels with the participation of representatives from 16 PSCG members. The freight forwarding industry was represented by Mr. Steve Parker, Chair of the FIATA Customs Affairs Institute (CAI).
During the meeting, the group discussed its work on the Comprehensive Review of the Revised Kyoto Convention, Performance Measurement and the WCO Study Report on Disruptive Technologies. In addition, the PSCG reviewed the status of the WCO Framework of Standards on Cross-Border ECommerce and expressed its support for the Framework and its commitment to participate in any additional WCO work on E-Commerce. The group also prepared for the PSCG Dialogue with the WCO Policy Commission Members on 26 June. This Dialogue included issues of importance to the PSCG’s work over the past last year. PSCG delegates and Policy Commission Members held an interesting exchange of ideas and suggestions for future work.
For more details, please visit: http://www.wcoomd.org/en/media/newsroom/2019/june/wco-private-sector-consultative-group.aspx
WORLD ECONOMY
Outsourcing Logistics and Supply Chain Can Help Boost Profits for SMEs
Logistics and Supply Chain is one such business function that is evolving as a service oriented competency, moving away from being the one of the core traditional Business operations. This has made a huge impact in the success of several Start-up’s and SMEs, who have leveraged the competent services of 3PL and 4PL service providers so as to enjoy leaner operations, efficient results and save on costs.
Worldwide, since the early 21st century, there has been a large shift in outsourcing logistics and, just in the USA, spend on Outsourced Logistics Services have grown 800per cent, from $10 Billion in 2003 to $80 Billion in recent times. Commonly referred to as third party (3PL) or fourth party logistics (4PL) players, the contract logistics services in India today, has evolved from the traditional transport and storage facilitators to modern consultants for end-to-end supply chain engineering for business.
FIATA members and the freight forwarding industry has outlasted the test of time continuing to provide a value added services to their customers for which they see benefits in outsourcing their activities. Due to these services, we have witness our industry’s continued growth and are now seeing interest from outside technology vendors to help us improve our everyday efficiency.
For more details, please visit: https://www.entrepreneur.com/article/336077
Speed Over Profits: How To Make Sure Your Logistics Costs Don’t Ruin Your Business
As more retail moves online, the cost of logistics has moved from being a back-burner issue to a make-or-break cost for many businesses. In 2015, logistics equaled almost 10% of sales, on average. That percentage was higher for smaller companies and for companies with less valuable products.
Those costs are rising. According to the annual “State of Logistics Report” by the Council of Supply Chain Management Professionals, as reported on by The Wall Street Journal (subscription required), the cost of logistics for U.S. businesses rose 6.2% in 2017.
For more details, please visit: https://www.forbes.com/sites/forbescommunicationscouncil/2019/07/01/speed-over-profits-how-to-make-sure-your-logistics-costs-dont-ruin-your-business/#6518c7b9191c
A NEW IMPETUS TO VIETNAM LOGISTICS SERVICE INDUSTRY
Vietam Logistics Business Association (VLA), the Association Member of FIATA, reported that on 4/6/2019, by Decision No. 684, Vietnamese Prime Minister decided to amend and supplement the Decision No. 1899 dated 4/10/2016 on the establishment of the National Steering Committee on the ASEAN Single Window, the National Single Window and Trade Facilitation known as the Committee 1899 or Vietnam’s national trade facilitation committee (NTFC) with a new duty in charge of the management of the logistics industry.
The Committee’s new task is considered a significant milestone to the Vietnam Logistics Service Industry as well as trade facilitation, showing the concerns by the Government and Prime Minister in developing the industry in line with Decision No.200 on 14/2/2017 (also known as National Logistics Action Plan – NLAP) to promote the country’s industry services in keeping with the global advanced freight forwarding and logistics level.
SEA FREIGHT
Hungary to Set up Port, Logistics Base in Trieste
Hungary will set up a port and a logistics base in Trieste with a view to facilitating and speeding up the shipping of Hungarian goods overseas, the foreign affairs and trade minister said on Friday.
The 60-100 million euro investment, to be carried out on a 32-hectare plot, will allow Hungarian companies to ship their goods out to sea within 24 hours, Péter Szijjártó said at the opening ceremony of the V4+ Logistics Forum in Mogyoród, near Budapest.
For more details, please visit: https://hungarytoday.hu/hungary-port-logistics-base-trieste/
DP World acquires leading international marine logistics operator
DP World PLC announces the acquisition of 100 per cent of Topaz Energy and Marine Limited (“Topaz”) from Renaissance Services SAOG and Standard Chartered Private Equity / Affirma Capital for an enterprise value of $1,079 million.
This transaction is in line with our strategy to grow our presence in marine logistics and become a solutions provider to end customers.” Said Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World
For more details, please visit: https://www.freightwaves.com/news/russia-seeks-to-open-its-arctic-waters-to-world-shipping
‘Storm approaching’: firms fear for deliveries in shipping shakeup
U.S. furniture company RC Willey Home Furnishings is so concerned that new global clean air rules will cause transport disruption that it brought forward the shipment of arm chairs and sofas from China by two months.
The tougher regulations, set by the United Nations shipping agency, the International Maritime Organization (IMO), come into force on Jan 1. Costs will rise for ships towards the end of this year and there will be a knock on effect for trucks and other transporters that move goods around the world.
For more details, please visit: https://www.reuters.com/article/us-shipping-imo-costs/storm-approaching-firms-fear-for-deliveries-in-shipping-shakeup-idUSKCN1TQ0HS
First common digital standards for container shipping on the starting blocks
The first common digital standards for the container shipping industry are expected to be proposed this year, according to the newly appointed chief executive of the Digital Container Shipping Association.
Speaking at this week’s TOC Container Supply Chain event in Rotterdam, Thomas Bagge (pictured ) told delegates that members of the recently formed association would hold a general assembly to vote on the first proposed standards for the industry.
As we move into the digital age, common standards are essential to facilitate that transition and ensure each stakeholder can speak the language. Standards look long term and provide an inclusive environment where multiple industries can engage with one another towards the same goal.
For more details, please visit: https://gcaptain.com/digital-standards-for-container-shipping-on-the-starting-blocks/
AIR FREIGHT
Opposition grows to Dutch plans for ‘green’ tax on air cargo
Air Cargo Netherlands, and IATA, have spoken out against a proposal to tax air cargo in the Netherlands, which would be a further blow to the Dutch air freight sector. This week, the government held a closed meeting in the Second Chamber of the Finance Committee to discuss the proposals, which include a tax on freighters.
“The noisiest planes will be taxed at a rate of €3.85 per tonne of cargo and the quietest at a rate of €1.925 per tonne of cargo,” it said last month.
For more details, please visit: https://theloadstar.com/opposition-grows-to-dutch-plans-for-green-tax-on-air-cargo/
Milestone for Budapest Airport’s new cargo terminal
Builders have completed the construction of the structure of the largest building in Budapest Airport’s (BUD) dedicated freight terminal, BUD Cargo City. The external structure of the larger of two warehouse buildings, which covers 21,600 sq m, was completed in only nine months after the project began. BUD cargo staff, builders and regional partners celebrated with a topping out ceremony.
Speaking at the event, Rene Droese, Chief Property and Cargo Officer said: “The topping out ceremony marks another important step towards the opening of BUD Cargo City, which will ‘cement’ our position as the air cargo hub for Central and Eastern Europe.”
For more details, please visit: https://www.aircargonews.net/cargo-airport/milestone-for-budapest-airports-new-cargo-terminal/
Emirates SkyCargo appoints first Emirati female cargo managers
Emirates SkyCargo has appointed its first Emirati female cargo managers, to take over operations in Kuwait and Oman. Fatma Ahli will hold responsibility for Kuwait and Alyazeya Saeed for Oman.
They joined the carrier in 2016. Ms Ahli served as Emirates’ cargo commercial and operation manager for the Far East and Australasia, while Ms Saeed held the same role for European operations.
FIATA is proud support of diversity and empowerment throughout industry having held women and diversity panels at our Region Africa Middle East and HQ Session meetings to advocate the benefits of inclusion and differing perspective.
For more details, please visit: https://theloadstar.com/emirates-skycargo-appoints-first-emirati-female-cargo-managers/
RAIL AND ROAD FREIGHT
Lakefront Futures Launches Trucking Derivatives Group
Chicago-based Lakefront Futures & Options, LLC has launched a risk hedging group focused on the trucking and freight shipping sector, the firm said earlier this month.
It comes on the heels of the launch of a freight futures market by logistics data and analytics provider FreightWaves, price reporting agency DAT, and derivatives exchange and clearing house Nodal Exchange, this past March.
For more details, please visit: https://www.dcvelocity.com/articles/20190624-lakefront-futures-launches-trucking-derivatives-group/
Belarus bottlenecks may see booming Asia-Europe rail freight hit the buffers
Bottlenecks at the Belarus border may slam the brakes on booming Asia-Europe rail services. And replacing the gauge to alleviate the problem would prove financially disastrous.
One source told The Loadstar such had been the success of the China-Europe rail link that Belarus’s stations on the Polish border were showing signs of exceeding capacity. Another said: “To say they are congested may be too strong at the moment, but there have definitely been emerging signs of problems.
For more details, please visit: https://theloadstar.com/belarus-bottlenecks-may-see-booming-asia-europe-rail-freight-hit-the-buffers/
INNOVATIONS
JD.com logistics arm raises $218m investment fund
JD.com’s logistics division has bagged $218m in investment for logistics-related companies and technology. As Alibaba’s closest competitor in China, JD.com has a lot of work to do. JD Logistics became a standalone subsidiary in 2017, and Tech Crunch claims it may be eyeing a public offering in the near future with a valuation around the $13.5bn mark.
In 2016, Alibaba’s logistics division, Cainiao, scooped its own investment but had a valuation a little over half of JD Logistics at $7.7bn. As for what the money is to be spent on, that appears to be under wraps at the moment, although this report suggests drone deliveries, logistics automation and smart vehicles may be potential avenues of spending.
For more details, please visit: https://www.lloydsloadinglist.com/freight-directory/news/Belgium-launches-digital-customs-platform-to-facilitate-e-commerce/74419.htm?cl=article_1&elqTrack=true&mc_cid=39501763a4&mc_eid=2ae75acafa#.XQLTW6JKiUl
Walmart to invest $1.2 billion in China to upgrade logistics
Walmart Inc <WMT.N> plans to invest 8 billion yuan ($1.2 billion) in China over the next 10 years to upgrade logistics, the U.S. retail giant said on its social media account on Monday. The company will also set up or renovate more than 10 logistics centers in the country.
The comments followed a meeting between President Donald Trump and his Chinese counterpart Xi Jinping over the weekend in Osaka, Japan that rekindled hope for a U.S.-China trade deal.
Merchants and marketplaces are increasingly become aware of the importance of logistics and need for greater investments. They are no longer viewing their operations through a per market approach but that their customers reside all over the world and those products need to reach them as if it were a local shipment.
For more details, please visit: https://news.yahoo.com/walmart-invest-1-2-billion-113015341.html
Amazon now delivering 48% of its own packages and also collecting import GST
Data supplied to Axios via market research firm Rakuten Intelligence indicates that nearly half (47.6 percent) of Amazon packages are delivered by the company itself. By comparison, in January 2017, the US Postal Service was handling more than 60 percent of packages and Amazon was delivering fewer than 15 percent.
In addition, Amazon is contributing to Australian new import GST. The Australian Tax Office has confirmed to The New Daily that the GST, which is levied on low-value goods bought on foreign websites such as Amazon or Book Depository, had already reaped a staggering $250 million by the end of April. The figure is more than 3? times the $70 million the ATO had initially forecast for the entire 2019 financial year. Implemented in July 2018, the tax forced online retailers to apply the 10 per cent GST to all online purchases being shipped to Australia from overseas.
FIATA has stated in prior positions that governments will need to play their role in the future of trade must find the right balance between facilitation and security. FIATA is aware that the feasibility of a fully harmonised de mininis threshold is compounded by differing levels of development, throughout the different economies. However, harmonising deminimis levels, taking into account the variety of different economies, could certainly have a positive impact in many regions and eventually at global level.
For more details on Australia’s GST, please visit: https://markets.businessinsider.com/news/stocks/lululemon-air-spending-a-warning-as-trump-china-tariffs-clog-up-ports-1028277897
For more details on Amazon’s logistics development, please visit: https://www.techspot.com/news/80720-amazon-now-handling-more-shipments-than-any-other.html