FIATA e-Flash no. 204 – 16 July 2019
FIATA AND MEMBERS
Regional winners for Young International Freight Forwarder of the Year Award 2019
FIATA and TT Club are glad to announce the regional winners of the Young International Freight Forwarder of the Year Award (YIFFYA) 2019, they are:
Europe – Mrs Evgeniya Khokhlova Russia (FAR)
Africa/ Middle East – Mr Enos Chapra Zimbabwe (SFAAZ)
Americas – Ms Rachael van Harmelen Canada (CIFFA)
Asia Pacific – Mr Phillip Burgess New Zealand (CBAFF)
In introducing these bright young professionals FIATA President Babar Badat said, “Encouraging more young professionals to join the FIATA community has always been a priority for me. I am encouraged again to see these excellent candidates presenting dissertations that cover a wide range of logistic subjects, which demonstrate the challenges that forwarders face every day and the customized solutions they are able to offer”.
FIATA WORLD CONGRESS 2019: FOR FUTURE INDUSTRY LEADERS
The traditional freight forwarding model has transformed into the impelling world of logistics supply chain fulfilment. This business requires young people for the future. The FIATA World Congress is the ideal forum to experience first-hand the opportunities that exist for millennials and the younger generation. For anyone starting out in this industry: coming to the Congress is a must. And for those futureproofing their business: sending your younger staff is a must.
Those 35 years and younger save nearly 30% on registration fees with special Young Participant rates: https://fiata2019.org/registration-hotels/
For more information on the Congress see the website: www.fiata2019.org or email info@fiata2019.org
WORLD ECONOMY
Turkey continues to build logistics centers to boost trade flow
Located at the crossroads of the modern Silk Road, which is being revitalized by China, Turkey has accelerated its efforts to build logistics centers that may handle trade flow worth over $2 trillion.
Transport and Infrastructure Minister Cahit Turhan said nine of the 21 planned logistics centers are now operational. “We have completed the logistics centers in Mersin, Konya and Kayacık. The Kars logistics center is under construction. The remaining eight are in the tender, project and expropriation stages,” he added.
For more details, please visit: https://www.dailysabah.com/business/2019/07/10/turkey-continues-to-build-logistics-centers-to-boost-trade-flow
Freight forwarders query whether government is listening
This week’s news that very few companies have registered for a new government online system designed to protect value added tax revenues on foreign parcels in the event of a no-deal Brexit has led the UK representative body for freight forwarding and logistics companies to question whether Government is listening to advice from industry experts.
Robert Keen, Director General of the British International Freight Association (BIFA) says: “In principle, the UK’s VAT policy on small parcels, relative mainly to e-commerce trade, expatriates the liability for UK import VAT to businesses that are not established in the UK, thereby significantly reducing HMRC’s ability to enforce VAT compliance and revenue collection; potentially forcing freight forwarders and customs agents to become indirect representatives liable for import VAT and other import charges.
For more details, please visit: https://www.hellenicshippingnews.com/freight-forwarders-query-whether-government-is-listening/
Panalpina announces war risk surcharge
The freight forwarder joins a list of ocean carriers implementing surcharges that includes Maersk, Hapag-Lloyd, MSC, CMA CGM and APL. The add-on to the standard rate is in response to increased expense to insure the freight moving through the volatile shipping channel after recent vessel attacks. Since May, the region has seen attacks on a half dozen oil tankers as well as a U.S. drone.
Many large ocean carriers like COSCO, Maersk and CMA CGM already have seen insurance costs increase. Annual war risk surcharges have climbed and breach premiums have been implemented in response to recent attacks on tankers in the region.
FIATA urges the public sector to be aware of the impacts of conflict on free trade. So often political agenda come in the way of economic growth and therefore FIATA with its association member network work not only with an economic view but also looking at social aspects. Just recently in 2019 FIATA HQ Session, a session was dedicated to examine the impact of refugees and immigration on local economic growth inviting content experts and also immigrants who experienced the journey first hand.
For more details, please visit: https://www.americanshipper.com/magazine/daily/?year=2019&month=7&day=10&page_number=4&via=asdaily
SEA FREIGHT
Courts of Antwerp ruled on demurrage and detention cases
Confederation des Expediteurs de Belgique (CEB), the Association Member of FIATA in Belgium, reported two interesting verdicts made by the courts of Antwerp on demurrage and detention where the shipping lines claim the costs for a particularly long period.
In a verdict made on 18th March 2019, the Court of Appeal in Antwerp ruled that in this case, when a container is not returned within one year after the end of the free time, the container should be considered “lost”, the shipping line can only claim the replacement value of the container and the detention costs for the past year. The court decided that, claiming detention costs for a particularly long period is considered to be “manifest exaggerated”, based on the fact that the costs are disproportionate with the subject of the contract and the actual disadvantage accrued by the shipping line.
In another cased ruled on 20th March 2019, the containers were never picked up by the customer/consignee and the containers were seized by the Customs Authorities 2 months after arrival at the port of destination. The shipping line charged demurrage and storage costs over a period of more than 4 years. The Court decided that, as from the moment the customs authorities took possession of the goods, charging of demurrage and storage costs by the shipping line is no longer justified. In addition, the claimed demurrage/detention costs are a compensation clause rather than an accessory of the freight. A compensation clause is eligible for moderation by the Court, the court can even mitigate to zero if no actual damage has been suffered.
Mumbai the first target for programme to tackle corruption in India’s ports
The Maritime Anti-Corruption Network (MACN) and the Indian government have linked up to tackle corruption in the country’s port sector. Copenhagen-headquartered MACN, which has launched successful programmes to target corruption among port and government officials in Argentina, Nigeria and on the Suez Canal, said it would bring this experience to help India’s ports reduce corruption, with a pilot scheme in the Mumbai gateway running until October.
Cecilia Müller Torbrand, MACN executive director, said: “MACN’s experience shows us that real change is possible when all parties are engaged. That’s why we are delighted to have the support of so many key stakeholders for this campaign to improve the operating environment in Indian ports.”
For more details, please visit: https://theloadstar.com/mumbai-the-first-target-for-programme-to-tackle-corruption-in-indias-ports/
Ambitious Targets to cut Shipping Emissions
All new ships for UK waters ordered from 2025 should be designed with zero-emission capable technologies, in ambitious plans set out by Maritime Minister Nusrat Ghani to cut pollution from the country’s maritime sector.
The commitment is set out in the Clean Maritime Plan published today. The government is also looking at ways to incentivise the transition to zero-emission shipping and will consult on this next year.
For more details, please visit: https://seanews.co.uk/environment/ambitious-targets-to-cut-shipping-emissions-2/
AIR FREIGHT
IATA Net Rates platform takes wing, but will the airlines sign up?
IATA’s decision to launch an air cargo rates distribution platform, IATA Net Rates, has raised questions by the industry over potential benefits versus its cost to members. The association said the platform was developed by and for the industry to help carriers and GSAs “streamline the distribution of their cargo rates, but also for freight forwarders to access a unique one-stop shop for all their air cargo rates needs”.
But the platform, whose development began in 2017, has some way to go in comparison with those already on the market. Only Qatar Airways has so far joined, although IATA said it was “actively working” with 30 other carriers.
For more details, please visit: https://theloadstar.com/iata-net-rates-platform-takes-wing-but-will-the-airlines-sign-up/
Stakeholders rally support for dangerous goods awareness
Stakeholders in the transport sector have stressed the need for government and private entities to raise awareness on dangerous goods.The stakeholders, who gathered at the unveiling of a new business of managing dangerous goods in Nigeria by Hybrid Group Limited, in Lagos, on Wednesday, want government to create awareness and keep Nigerians informed on the phenomenon.
Speaking at the event, Director-General, Nigeria Civil Aviation Authority (NCAA), Captain Muhtar Shaibu Usman, said there is need to educate the public on the consequences and challenges of dealing with dangerous goods.
FIATA has long been supported of dangerous goods training and awareness. In 2012, we launched an ICAO FIATA DG by Air Training Program helping to build capacity and knowledge among our members. We have training centers in Canada, Latin America, Africa and Asia that provide ICAO and IATA Accredited training to local members.
For more details, please visit: https://guardian.ng/business-services/stakeholders-rally-support-for-dangerous-goods-awareness/
May Air Freight Volumes Remain Weak
(IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased by 3.4% in May 2019, compared to the same period in 2018. This was a slight improvement on the 5.6% contraction in April.
In seasonally-adjusted terms, the level of FTKs increased modestly for the third consecutive month, suggesting that the low point of this cycle may be behind us, although the market remains weak.
For more details, please visit: https://www.iata.org/pressroom/pr/Pages/2019-07-03-01.aspx
RAIL AND ROAD FREIGHT
Russia lifts ban on transit of sanctioned EU products by rail
Russia has lifted the ban on transit traffic for a range of products that were previously sanctioned. This includes agricultural products and foodstuffs. The measure is effective per 1 July, subjective to certain conditions. This was reported by the Ministry of Transport of the Russian Federation with reference to Presidential Decree N 290 of June 24, 2019.
The decision is considered a major breakthrough for Eurasian rail freight traffic. The transit of the products described was banned since August 2014 when originating from Europe, Norway, the US, Canada or Australia. The ban has had great impact on rail freight traffic between Europe and Asia, as Russia is one of the main transit countries on the New Silk Road. Until now, agricultural products, raw materials and foodstuffs could only be transported to China via routes bypassing Russia, resulting in much longer transit times.
For more details, please visit: https://www.railfreight.com/specials/2019/07/09/russia-lifts-ban-on-transit-of-sanctioned-eu-products-by-rail/?utm_source=newsletter&utm_medium=email&utm_campaign=Newsletter%20week%202019-28&gdpr=accept
Trucking Brokerage Meets Artificial Intelligence
In articles and discussions about artificial intelligence (AI), there’s often a concern expressed about whether we humans will control AI or whether these new systems will control us. For brokers and other intermediaries in logistics and transportation, the question is: Can we manage AI or will AI squeeze us out of the historic margins we’ve enjoyed for years?
What AI promises, perhaps together with blockchain, is an open market for spot freight and contracts that is really open to multiple carriers and offers the chance to combine less-than-truckload loads from different shippers in a lane as well as backhauls without an intermediary company taking a substantial margin out of the transaction.
For more details, please visit: https://www.logisticsmgmt.com/article/trucking_brokerage_meets_artificial_intelligence
Digital advances are key to increasing European rail freight transport
Rail freight transport is undergoing a full digital transformation. Bernd Hullerum, CEO of Transfesa Logistics explains how new technologies are opening possibilities for improved operational efficiency and lower logistics costs, while offering excellent customer service with personalised door-to-door delivery.
This greater role for rail transport in European logistics is coming at a time of thorough digital transformation. Technologies such as mobile apps, cloud computing, the Internet of Things (IoT), blockchain and big data, on which we have been working for a long time in Transfesa Logistics, will be of great help in achieving more competitive railways and will have immediate effects, whose scope we cannot yet fully grasp, in the move towards a smart supply chain.
FIATA encourages the introduction of technology into the freight forwarding industry as such tools and innovative processes will help improve efficiency in our sector ensuring that we continue to provide the value-added services for which our members have done so for decades.
For more details, please visit: https://www.globalrailwayreview.com/article/83903/transfesa-digital-european-rail-freight/
INNOVATIONS
India’s Rivigo raises $65M to expand its freight and logistics platform
Rivigo, a tech startup in India that wants to build a more reliable and safer logistics network, has raised $65 million as major investors continue to place big bets on opportunities in overhauling the trucking system in the country.
Rivigo operates a tech platform that tracks and manages shipments and ensures that drivers are available at all times and trucks are as fully loaded as possible. The platform also automatically rotates drivers so that they can get enough rest and see their family while the trucks keep moving. Drivers use an app to navigate maps and accept assignments.
For more details, please visit: https://techcrunch.com/2019/07/10/rivigo-india-seriese/
Goldman Sachs says Amazon’s logistics network is hardly a threat to FedEx or UPS
Everyone from UBS analysts to Morgan Stanley experts to former Amazon execs has been sounding the alarm about Amazon Logistics, which has quickly built up a fleet of 70 planes, 10,000 vehicles, and access to ocean and rail brokerage in a handful of years.
But a new report from Goldman Sachs is urging everyone to hit the brakes. Amazon’s network is still too small to compete with FedEx or UPS. UPS, FedEx, and Amazon all had no comment.
For more details, please visit: https://www.businessinsider.com/how-amazon-can-beat-fedex-ups-according-to-goldman-sachs-2019-7?r=US&IR=T
Platforms and Blockchain Will Transform Logistics
Consumer-facing transportation and logistics have already seen the rise of platforms such as Uber and Deliveroo, yet business-to-business logistics pose different challenges. Where successful firms once coordinated just two parties’ assets – those of shippers and receivers -logistics hubs now coordinate multiple stakeholders, involving containers, finance, fuel, transport, regulatory approval, and more. Multi-party coordination of this asset-intensive industry adds to overall complexity.
Finally, decentralized last-mile delivery services are a growing industry that will interface with central logistics platforms and can be expected to do so even more as they become autonomous. Amazon’s delivery drones and Uber’s self-driving cars are not yet ready, but in time will offer autonomous, platform-enabled solutions for last-mile delivery. For example, a logistics startup, Dispatch, recently purchased by Amazon, is developing a six-wheeled urban delivery robot that will generate even more value when it connects with logistics platforms.
For more details, please visit: https://hbr.org/2019/06/platforms-and-blockchain-will-transform-logistics
Zalando is building a huge logistics center in the Netherlands
This summer, Berlin-based e-commerce giant Zalando will begin construction of a 140,000 square metre logistics centre in Bleiswijk near Rotterdam. The expansion of the logistics network is an important part of Zalando’s growth target of achieving a gross value of €20 billion by 2023/2024. By the summer of 2021, parcels will be sent from the logistics center near Rotterdam to customers in Western Europe, including the Netherlands, Belgium, Luxembourg, France, Spain, and the United Kingdom.
Zalando plans to invest €200 million in the intralogistics into the new logistics location. Among Zalando’s nine current logistics locations, the centre near Rotterdam will have the highest degree of automation. Automation relieves employees of physically demanding tasks, while more efficient processes will enable better services for customers.
FIATA took early steps to engage with its members on eCommerce practices, highlighting that logistics will need to meet the growing demands of eTraders, meanwhile eCommerce will need to rely on logistics to ensure product fulfilment. This relationship will see the face of logistics evolve rapidly.
For more details, please visit: https://www.eu-startups.com/2019/07/zalando-is-building-a-new-logistics-center-in-the-netherlands/