FIATA E-Flash No. 197 – 8 April 2019 (R.EMP.-F- 24/19)

11 abril, 2019 Ateia

FIATA AND MEMBERS

FIATA holds successful 2019 HQ Session – Zurich March 27-29

«‘This was a most productive FIATA headquarters meeting in Zurich where FIATA members came together to address the challenges which have arisen over the last twelve months in international trade through changing positions of key economies bilateral and multilateral trading arrangements» said FIATA President Babar Badat.

FIATA in its role as the leading non-governmental industry association representing service providers in all modes of the movement of international freight discussed with representative national Member associations from 108 economies discussing issues such as：

. The digitalization of FIATA documents in particular its multimodal bill of lading and enhancement of that in international trading in particular its recognition by a wider variety of persons in international trade in particular financial institutions

. Key work being undertaken between IATA and FIATA on improvements and changes to the industry air cargo program

. Delivery to members on key information to support them in their information technology protection through the release of a paper on cyber security<https://fiata.com/media/press-releases/2019/28-march.html>

. Commentary in relation to best practice on container process management with shipping lines with the release a its updated Guide <https://fiata.com/media/press-releases/2019/2-april.html> focusing on the quality of containers provided by shipping lines in global container shipping which FIATA noted decreased significantly and the need for the shipping lines to provide empty containers that are «fit for purpose»

. Release of its first three e-training modules <https://fiata.com/media/press-releases/2019/29-march.html> covering introduction to international trade, maritime and train the trainer courses which will be provided to FIATA members who have limited resources to deliver to their members to training initiatives.

. Overview to members of the implication relating to Brexit noting in particular the impact on physical resources relating to the movement of goods across the relevant borders, significant increase in the need for submission of customs declarations and other certificates relating to origin and phytosanitary issues to support border clearance ( in particular as to capacity of regulatory agency IT systems as well as business systems to meet these requirements)

In moving FIATA forward in terms of its own administrative arrangements the Secretary General Bob Voltmann discussed with members new initiatives in relation to process management at the FIATA General Meeting saying «FIATA members will at the General Meeting in Cape Town in 2019 operate under arrangements which make the organization at the cutting-edge of meeting requirements with new concepts on e-voting»

FIATA President Mr. Babar Badat Comments on activities throughout the industry

Babar Badat takes a bead on education stating «FIATA deems it necessary to provide the international logistics industry with training foundations that increase its competitiveness, incubate innovation and encourage the interest of youth to work in the industry».

He also advised on security risks confirming that «The FIATA Advisory Body Legal Matters is working on a best practice guideline on preventing cybercrime. This guideline aims at raising awareness among FIATA members and the industry regarding the threats and risks of cybercrime and to provide best practices in prevention of cybercrime from a risk-management perspective,»

Looking ahead to Cape Town where FIATA will hold its 2019 World Congress, Mr. Badat advised «FIATA hopes to bring together over 1,200 industry stakeholders and decision-makers to discuss the changes in the logistics and freight forwarding industry».

For more details on Mr. Badat’s engagement please refer to – http://www.aircargonews.com/FTypers2019/FTypers0419/FT04.05.19.html

2019 RAME Field Meeting Beirut, Lebanon – June 24-26th

The 2019 RAME Field Meeting will take place in Beirut, Lebanon from June 24-26th. This event will be hosted by our Lebanese Forwarders Syndicate which are well underway in preparing an engaging program for all delegates in attendance.

For further details and how to register, please visit the field meeting website – https://rame2019.com/

BIFA welcomes UK Customs’ decision to extend Transitional Simplified Procedures

The British International Freight Association (BIFA) has welcomed UK Customs’ (HMRC ) decision to extend the declaration and import payments for its Transitional Simplified Procedures (TSP) in the event of a no deal Brexit.

The extension to October 4 provides more time to make the necessary preparations, fully test the systems, establish the communication links between the parties involved in the processes, and make sure that everyone concerned is aware of their responsibilities. FIATA supports the extension and recognizes that by allowing our members time to adjust and operate TSP, HMRC is recognizing the critical role that the freight forwarder plays in the UK’s supply chain.

For more details, please visit: https://www.aircargonews.net/freight-forwarder/bifa-welcomes-uk-customs-decision-to-extend-transitional-simplified-procedures/

WORLD ECONOMY

WTO members consider six regional trade agreements

WTO members reviewed six regional trade agreements (RTAs) at a meeting of the Committee on RTAs on 1 April 2019. The new chair of the Committee, Ambassador Carlos Mario Foradori of Argentina, presided at this first Committee meeting of 2019.

The Committee considered the Closer Economic Partnership Arrangement Between Hong Kong, China and Macao, China, which immediately liberalized all bilateral trade in goods on 1 January 2018.

FIATA is pleased to see the WTO engaging with member states on bilateral and regional trade agreements. Their involvement in such discussions will help uncover a new expanded role the WTO can play to help facilitate trade.

For more details, please visit: https://www.wto.org/english/news_e/news19_e/rta_04apr19_e.htm

SEA FREIGHT

Port Report: Hapag-Lloyd sees service, not scale, as key strategy going forward

Hapag-Lloyd said the container ship industry is about as concentrated as it will ever be, with the emphasis now being focused on service quality, not size. The strategy going forward will be for further cost cuts, Jansen said, with the company targeting annual savings of $350 million to $400 million from 2021 onwards.

As for growth in the market, Jansen said he wants Hapag-Lloyd to be able to deliver a higher service level than its peers, which will help differentiate the company in the commodity ocean freight sector and help drive top-line growth.

For more details, please visit: https://www.freightwaves.com/news/maritime/port-report-hapag-lloyd-outlook

Freight forwarders face 25% penalty over 5,000 trapped containers

The Nigeria Customs Service has agreed to resume clearing of over 5,000 third-party containers trapped at the Lagos ports. The reprieve, however, carries 25 per cent penalty, our correspondent gathered.

The containers were trapped as a result of a suspension order issued in January. The Customs authority, in a circular signed by the Deputy Comptroller-General in charge of Tariff and Trade, Issa Talatu, had ordered the immediate suspension of clearance of goods with discrepancies in documentation.

For more details, please visit: https://punchng.com/freight-forwarders-face-25-penalty-over-5000-trapped-containers/

Shipping data signals weakness in global economy

The volume of U.S. ocean cargo imports arranged by Deutsche Post’s DHL Group, United Parcel Service Inc, FedEx Corp and other freight forwarders fell sharply in February, sending a warning on global trade, a key barometer for the world economy.

Though just a sliver of the global delivery and logistics business, freight forwarding – the arranging of end-to-end transport of goods for importers and exporters – is seen as a proxy for international trade. With the rise of protectionist policies, FIATA encourages policy makers to examine the full impacts for restricting imports before actioning any legislations. FIATA reminds the international community that, in previous years, trade has been used as a catalyst for economic activity and stimulus for growth.

For more details, please visit: https://www.reuters.com/article/economy-trade-delivery/shipping-data-signals-weakness-in-global-economy-idUSL1N21F1TR

Chinese e-commerce giant’s debut into shipping

China’s e-commerce company Jd.com, Alibaba’s major competitor, starts its new shipping business. The company has signed an agreement with Orient Overseas International Limited, the Hong Kong’s based holding company which involves in international transportation and logistics, and with the shipping group COSCO.

Under the agreement, the three parts will form a joint venture for the acquisition of Shenzhen-based Eshipping Global Supply Chain Management, an online logistics platform controlled by Cosco.

FIATA took early steps to engage with its members on eCommerce practices, highlighting that logistics will need to meet the growing demands of eCommerce merchants and if unable to do so, marketplaces themselves such as J.D.com and others could one day act as logistics providers for merchants.

For more details, please visit: http://www.themeditelegraph.com/en/shipping/2019/04/04/chinese-commerce-giant-shipping-debut-OhP22c1wl8Gj9fYbPcBA5K/index.html

AIR FREIGHT

Qantas to replace Boeing 747-400F with larger capacity freighters 747-8F

Qantas is replacing two Boeing 747-400F freighters with the larger-capacity 747-8F from July 2019. The change represents a 20 per cent increase in freight capacity, Qantas announced on Thursday, with the 747-8F able to carry an additional seven pallets compared with the 747-400F.

Currently, the two 747-400Fs are operated by Altas Air on behalf of Qantas. The aircraft, which have Atlas Air livery, operate between Australia, China, New Zealand and the United States, according to flight schedules on the Qantas Freight website.

For more details, please visit: https://australianaviation.com.au/2019/04/qantas-to-replace-boeing-747-400f-freighters-with-larger-capacity-747-8f/

Air Freight Demand Continues Downward Trajectory in February 2019

IATA released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased 4.7% in February 2019, compared to the same period in 2018. This was the fourth consecutive month of negative year-on-year growth and the worst performance in the last three years.

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.7% year-on-year in February 2019. This was the twelfth month in a row that capacity growth outstripped demand growth.

For more details, please visit: https://www.iata.org/pressroom/pr/Pages/2019-04-03-01.aspx

RAIL AND ROAD FREIGHT

Road Haulage and Logistics Pairing Launch New Intermodal Freight Services Using Rail Options

Following the recent agreement between freight and logistics group DB Cargo UK and road haulage outfit, Maritime Transport to increase rail freight capacity with the launch of their Maritime Intermodal initiative, the pair have unveiled two new locomotives, Maritime Intermodal One and Two, during a train naming ceremony at Maritime’s recently acquired rail terminal in Wakefield on March 29.

The signing forms part of a 10-year deal with further scope for more services, something which Maritime Transport is already focusing on, with intentions to soon commence services from London Gateway in addition to targeting services from its new terminal under construction at East Midlands, Castle Donington which is due for completion in September.

For more details, please visit: https://www.handyshippingguide.com/shipping-news/road-haulage-and-logistics-pairing-launch-new-intermodal-freight-services-using-rail-options_11837

INNOVATIONS

Blockchain in Transport Alliance welcomes Hong Kong-based Tigers

Tigers, a Hong Kong-based global logistics and transportation company that specializes in technology-enabled supply chain solutions, e-fulfilment and transportation by air, sea, rail and road, has joined the Blockchain in Transport Alliance (BiTA).

Founded in August 2017, BiTA has quickly grown into the largest commercial blockchain alliance in the world, with nearly 500 members that collectively generate over $1 trillion in revenue annually. BiTA members are primarily from the freight, transportation, logistics and affiliated industries.

For more details, please visit: https://www.freightwaves.com/news/blockchain/blockchain-in-transport-alliance-welcomes-hong-kong-based-tigers

Electric trucks like the Tesla Semi are ‘pointless both economically and ecologically,’ according to a vehicle-tech expert

While traditional manufacturers’ models currently have a maximum travel distance of 300 kilometers, Tesla is trying to get ahead of other competitors. According to Tesla, its Tesla Semi battery will charge in just 30 minutes and has enough electricity to last 640 kilometers.

Transport and Environment conducted a study in which the energy consumption of classic diesel trucks was compared with those of electric trucks on long-haul journeys. Though electric trucks may seem to come out of the study favourably in the study, a number of renowned experts take a much more critical view of Tesla’s announcements.

For more details, please visit: https://www.businessinsider.com/this-expert-says-tesla-semi-is-economically-and-ecologically-pointless-2019-2

How Can Freight Forwarding Move Forward?

Freight forwarding is centuries-old, $2 trillion industry sorely in need of transformation. Of the top freight forwarders in the world based on volume, none could be considered Internet-native. As a result, the industry is now scrambling now to adapt legacy technology systems to the modern age.

Alternatively, digital freight forwarders and customs brokerages like Flexport are taking a new, tech-centric, yet human-powered, approach that is helping to enable control, efficiency, and transparency across the supply chain.

FIATA perceives value in adopting and incorporating technology into the freight forwarding process. This is why we are working towards digitalizing our Bill of Lading aimed at Small and Medium sized members to provide with opportunity to streamline their processes and improve efficiency in this digital age.

For more details, please visit: https://www.logisticsmgmt.com/article/how_can_freight_forwarding_move_forward

Topics

FIATA holds successful 2019 HQ Session – Zurich March 27-29

FIATA President Mr. Babar Badat Comments on activities throughout the industry

BIFA welcomes UK Customs’ decision to extend Transitional Simplified Procedures

WTO members consider six regional trade agreements

Port Report: Hapag-Lloyd sees service, not scale, as key strategy going forward

Freight forwarders face 25% penalty over 5,000 trapped containers

Shipping data signals weakness in global economy

Chinese e-commerce giant’s debut into shipping

Qantas to replace Boeing 747-400F with larger capacity freighters 747-8F

Air Freight Demand Continues Downward Trajectory in February 2019