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FIATA REVIEWMagazine of the International Federation of Freight ForwardersAs so ci a tions No. 112, May 2016

HQ Session – Experience leads to Changes

Zimbabwe – Heart of Southern Africa

Geoffrey Arend – FIATA Fellow

the annual meeting point for

Senior Executives from the Global freight,

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FIATA REVIEW NO. 112, MAY 2016 3

Contents

FIATA Secretariat

Schaffhauserstrasse 104, PO Box 364

CH-8152 Glattbrugg/Switzerland

Phone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 65

[email protected], www.fiata.com

The Victoria Falls

Photo: fotolia

Editorial 5 From the President’s Desk

Focus 6 HQ Session – Experience leads to Changes

Country Report14 Zimbabwe – The Heart of Southern Africa

News21 A Brief Overview of Training within the Southern African Development Community Region

22 International Logistics in South America: the Need for Specialised Education

Personally24 Mr Geoffrey Arend – FIATA Fellow in Interview

Here & There26 Happy Birthday!

26 Obituary Bernhardt Bünck

Agenda27 Forthcoming Events

27 Introduction Elena Primitzhofer

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Our team consists of people from more than 40 nations, representing five continents and many different cultures. But what truly matters is what we all share: a passion for quality, reliability and precision. And our vow: We care for your cargo.

SWC Malachi_EN_210x297.indd 1 03.02.15 17:37


From the President’s desk

5

Dear Colleagues and Friends

I am writing with the pleasant memories of my participation in the recent Head-quarters’ meetings. Let me thank you all for your involvement, dedication and passion. FIATA is a learning experience for all, even for your President, despite the fact I am no longer so young. I came home with a full load of information, contacts, memories… and a few new tasks. I really hope you have found the meeting as useful as I did. The end-conference survey replies showed interest, praise and useful sugges-tions for the future.

Obviously this issue contains the HQ reports and those who were not present in Zurich can now read sufficient informa-tion on all meetings to be fully informed. One of the most important events at the HQ is the choice of the year’s FIATA Fel-low. Geoffrey Arend was selected this year. We feature his interview: a closer look at the journalist who served aviation and logistics for over 40 years.

One of the strongest messages emerging from the Future of FIATA deliberations regarded our training initiatives. It is therefore not surprising that two invited guests of the FIATA Foundation speak about the training requirements in their own countries. A good opportunity to know more about training in emerging markets, this is also a sign of the uni-versality of FIATA’s constituency. No wonder that we have a country report from Zimbabwe, an African country coming strongly on the headlines and proposing itself in novel and graceful ways to the world. Read more about this tropical pearl in these pages.

This issue also contains the saddest news that Mr Bernhardt Bünck, former FIATA President and distinguished personality in European and global logistics for decades, died peacefully on March 16th.

Let us now look at the future. An impor-tant part of the Headquarters was devoted to discussing the future of our association. It is becoming clearer and clearer that members want a more agile, responsive and forward-looking structure, which is able to deliver the culturally diverse and articulated assistance our members want. It is also clear that the FIATA structure will have to conciliate and resolve between the ever more important advocacy role our associations require and the business ser-vices that our individual members need, in particular small and medium enterprises. This is a galaxy of smaller companies that collectively control the majority of our market. The Presidency is contemplating how we can achieve better information on this “galaxy”. Today’s knowledge based economy makes it impossible for FIATA to surrender to the idea that our sector is so fragmented that it is not possible to achieve precise information on its consist-ency. In looking at this we shall have to call on all association members in the years to come to help us draw the picture, a picture that will also tell us more about the future of FIATA members.

Let me wish you all the best in your businesses and private lives.

Huxiang Zhao – FIATA President

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Focus

HQ Session – Experience leads to ChangesLongstanding HQ participants were

experiencing all things new: a different

venue to start with, the Crowne Plaza, on the

western edge of Zurich. New rooms,

new meeting facilities and crisp, original

food, but many felt some changes of

proceedings at meetings were more

important. There was a survey launched on

the internet at the end of the event

and noteworthy were the marks of the Lunch

and Learn session created by FIATA’s

Logistics Academy. The sessions were so

interesting that the conference hall was

still filled at six in the evening on Saturday.

Bravo, MTI!

The Secretariat is trying to keep momentum

and we shall try to beat this year’s results

in 2017, but all Members’ reactions were

rather positive about 2016 edition of the

FIATA Headquarters’ meeting, which is tradi-

tionally a members-only event.

Airfreight Institute (AFI)At this year’s AFI meeting, the acting Chair – AFI Vice Chairman Mr Keshav Tanna – announced: “We are now going back in time” and invited Mr Herman Donker, Honorary Member of FIATA to make his presentation. Mr Donk-er referenced the AFI Document 382, titled: FIATA AND IATA RELATIONS OVER THREE DECADES. This docu-ment and the 94th AFI meeting reflected the struggles and challenges, which FIATA has faced with the IATA ad-ministration in its efforts to safeguard its members’ interests. The first IATA-FIATA Consultative Council Meeting (IFCC) was conducted in Zurich in 1980. This mechanism of interacting with the airlines and IATA to resolve our mem-ber’s problems still continues thanks to the foresight of some of our AFI prede-cessors who established this council way back then.

IATA-FIATA Cargo Modernization ProgramFIATA and IATA have been engaged for more than three years in addressing the modernisation of the air cargo relation-ship between forwarders and airlines and establishing a new framework designed to provide equal benefits for participants. For that purpose the Cargo Modernisation Program known as CAMP was embarked upon. The work was carried out with the clear intention to establish a principal to principal relationship between the for-warders and airlines. It is the reality of today’s world that the forwarders are more the customer of the airlines and not nearly agents. A lot of hard work has been put in by the CAMP-WG. This has subse-quently been submitted to legal advisors for compliance issues. There were certain obstacles that needed to be cleared and discussed by legal teams from both sides. “Where do we go from here?” was the ques-


HQ Session – Experience leads to Changestion and the Chair then invited the ABLM Chairman Mr Richard Gluck to give infor-mation on the current legal status.

FIATA was advised by legal advisors that it would be prudent for FIATA to make CASS voluntary in this new programme for the forwarders. They should be given an opportunity before entering into the new principal to principal agreement to opt-out of CASS if they wish and to nego-tiate bilateral payment arrangements with the airlines.

The discussions were ongoing. FIATA was hopeful that the parties would be able to reach some agreement and a solution would be found soon. It was further clari-fied that under the proposed CAMP the role of FIATA was as more of a partner and hence legal compliance was of utmost importance. Delegates were meanwhile informed of a bit of a complicating factor,

which was that the airlines, as a back-up plan, have adopted their own unilateral modernisation programme viz – The Air Cargo Programme. This had been adopted at the last Conference, but had been put on hold until on-going discussions on the IATA-FIATA Air Cargo Program (IFACP) were concluded.

FIATA and ULD CARE cooperationMr Marc Bibeau, FIATA Extended Board Member, CIFFA Immediate Past Presi-dent, provided with his presentation an outcome of the discussions held during the past twelve months between ULD-Care and FIATA on exploring ways of how best these two industry bodies may find common ground with regards to the opti-misation of ULD handling work practices in our global freight forwarding industry. He explained that ULDs provide an essen-tial component in the air cargo industry and one should imagine how it would be if ULDs did not exist and still all cargo were to be loaded into the bulk of the aircraft. He praised the advantages with regards to temperature control in the transportation of pharma, fruit, flowers, vehicles, horses etc. The common factor is that all are relying on ULDs. Everyone has a stake in the preservation of the model which delivers enhanced air cargo efficiency. But the model depends on the smooth running and consistent availability of ULDs.

From this topic there arose discussions on the fact that there are countries where forwarders are loading ULDs day in and day out and then there are freight for-warders and service providers who barely ever see a pallet – this is in other parts of the world where forwarders are not per-mitted to build their own pallets. It was questioned why 100% of the airfreight forwarders should be concerned with the

ULD handling if only a small fraction of the forwarders are actively engaged in ULD handling and build-up.

AFI is sensitive to the situation and it should not lead to any kind of a mandatory training with a cost attached to it.

Mr Bill Gottlieb, Past President of FIATA and FIATA’s representative to the Inter-national Civil Aviation Organisation gave a brief look into FIATA’s current position with ICAO.

Customs Affairs Institute (CAI)CAI Chairman, Mr Stephen Morris, high-lighted for delegates, information about the ongoing CAI work programme and re-lated matters and FIATAs involvement in the World Customs Organisation (WCO) and other governmental and non-govern-mental international bodies. Considerable work is being done, was being done, and will continue to be done in the future to support FIATA members.

The following key topics were discussed at the meeting:European Union Customs Code (UCC): This is with regard to legislative changes within the European Union (EU). Mr Steve Parker, Chairman of CLECAT Cus-toms Institute, FIATA Vice President and CAI Deputy Chair, provided an overview on the UCC implementation focussed on items he noted as having an impact on forwarders and logistics service providers operating outside of the EU and therefore impacting on imports into the EU. With regards to those service providers within the EU, he highlighted the importance of being an AEO and relating to this a new qualification of professional competence

8

Focus

has been introduced, entitled – "Practical standards of competence or professional qualification directly related to the activ-ity carried out”. He elaborated on related work with the European Committee of Standardisation (CEN) on a Standard of Competence and advised that CLECAT is involved with the EU in that it is currently drafting guidelines for the practical use of the legislation.

The CAI Chair and the ABSS Chair Mr David Fielder co-chaired a session on Ad-vanced Cargo Information – Pre Loading Advance Cargo Information (PLACI). In the discussions it was questioned, with all these upcoming requirements to be demanded by the regulators, where would be the return to those who comply with the requirements? PLACI would make work more efficient and facilitate trade and the data could be connected to find syner-gies on safety data to reduce risk. The pre- arrival clearance would be beneficial to the freight forwarding industry in particular since the express forwarders are already working to this outcome.

Mrs Chantho Creze Botticelli, Project Coordinator, Export Control Officer of AREVA, France, presented on the Bot-ticelli Project and The Forwarders role on Trade Export and Import Compliance. This project is based on the UNITED NATIONS Security Council Resolution 1540 regarding the non-proliferation of weapons of mass destruction. It “decides that all States shall refrain from provid-ing any form of support to non-State actors that attempt to develop, acquire, manufacture, possess, transport, transfer or use nuclear, chemical or biological weapons and their means of delivery”. The Chair commented that this topic was important to many in several economies with regards to arms production and sales. What was discussed is of interest in terms of the morals and ethics of economies. The presentation conveyed the challenge our industry faces without having a basis in

legislation and how our industry may fit this oversight and work into daily life.

Multimodal Transport Institute (MTI)The Chairman of the Multimodal Trans-port Institute, Mr Robert Keen (United Kingdom), welcomed a large number of participants to the meeting.

ROAD

Mr Tomas Suhanyi (Slovakia), Chairman of Working Group Road Transport, re-ferred to the German law on minimum wages. As already reported, this regula-tion came into force on 1 January 2015 and applies to German and foreign op-erators performing transport activities on the territory of Germany, including international transport operations to and from Germany, and transit as well. This regulation was not specifically created for international road transportation, but it applies to all professions in Germany. The Working Group felt that this National Regulation is unjustified and excessively burdensome as regards to international transport, as well as bilateral and transit transport between the Federal Republic of Germany and other countries. Therefore, an infringement process has been started by the European Commission. The EU Commission should find solutions with respective governments.

Greece and Turkey are really suffering from the refugee situation in their countries. The border to Macedonia is closed and this situation has a huge impact on road transportation. The industry has reported on the huge impact that the migrant crisis affecting the EU has had upon the private road transport sector over the last year. The truck operators must find other routes with longer transit times and higher costs. Regrettably, the flow of refugees from Syria to Turkey could not be stopped and the government asked for assistance from the European Union countries.

Every day all over Europe, truck drivers transporting high value goods are be-ing forced to park in unsecure parking locations when they need to take their mandatory rest breaks. This is one of the main contributing factors to the growing number of cargo crimes involving truck-based thefts. It has been said that there were more incidents in Germany than in Eastern Europe. Best practices are to be vigilant when selecting carriers; ensuring partners maintain security protocols, GPS tracking and a proper insurance coverage for all parties.

The WG Road Transport welcomes that 45 Russian customs posts along the bor-ders to the Baltic States, Poland, Ukraine, Azerbaijan, Georgia and Mongolia have started to accept the carnet TIR again, ac-cording to the International Road Trans-port Union (IRU).

However, it has been reported that oc-casional problems with TIR processing at some customs posts could crop up. Russia unilaterally broke the international agree-ment when it ceased to accept the carnet TIR at its customs posts in July 2013. The number of issued TIR Carnet in Russian traffic dropped dramatically.

Pakistan acceded to TIR Convention which came into force on 21 January 2016. They will finalise the procedure within this year. IRU reported that the TIR Car-net is not permitted on all border points. At the beginning, this will start with the import cargo traffic.

Once TIR is operational, Pakistan will be more involved with the global economy and well placed to promote regional devel-opment and integration, especially along the regional trade corridors.

Furthermore, the MTI took note:• That China has finalised the TIR acces-

sion process• That for the first time two eTIR pilot


modes of transport, using fully digital TIR processes, were successfully com-pleted. Now proven, eTIR is ready for full implementation, set to reduce international transit costs and increase security

• That the clandestine camp in Calais has been removed and the controls and in-spections at the channel are strict. There should be no delays when transporting cargo by truck and ferry boat to the UK.

RAIL

Dr Ivan Petrov (Bulgaria), Chairman of the Working Group Rail Transport re-ferred to the enlarged UIC/FIATA Contact Group. The first meeting took place on 23 and 24 April 2015 in Vienna / Austria and the Group debated various topics about the EURASIAN link. Last year UIC and FIATA concluded in Vienna to increase the competitiveness of international rail freight between Europe and Asia and they see the need for a consistent corridor management “from terminal to terminal”. Such Euro-Asian or Inter-continental Rail Freight Corridors (IRFCs) might consist of different regional corridors (e.g. Trans-Siberian Corridors and a New Silk Way Corridor or European Rail Freight Cor-ridors in EU member states) to which different regulations apply.

The next meeting of the enlarged Contact Group UIC/FIATA is scheduled on 12 and 13 May 2016 in Shenzhen / China.

Rail experts will discuss the following issues:• What do freight forwarders expect from

Rail Service Providers on the trade between China – Europe and vice versa? And which commodities are suitable to transport on this trade lane?

• Practical results of the usage of differ-ent rail corridors on the trade between China and Europe

• Developments on rail infrastructure and the expansion of terminal operation on the Eurasian rail link

• Border Crossing facilitation in the digi-tal age and how procedures and docu-mentation on the Eurasian Rail Link could be simplified.

The Organisation for Cooperation of Rail-ways (OSJD) and International Federa-tion of Freight Forwarders Associations (FIATA) will sign a memorandum.

OSJD and FIATA have agreed to maintain cooperation in the following ways:

• Document exchange (including sharing of the programmes and annual activity plan; meeting schedules; protocols and publications);

• Participation in the meetings and events;• Establishment of joint working groups

OSJD / FIATA;• Joint organisation of workshops and

conferences;• Arrangement of collective events, rec-

ommendations, decisions and main-taining control over the cooperation implementation.

The memorandum of cooperation was duly signed by the FIATA President Mr Huxiang Zhao and was sent with an accompanying letter to OSJD. OSJD envisage signing the memorandum of cooperation at their high level conference that will be held in Baku 7–10 June 2016.

The 7th Market Place Seminar jointly organised by FIATA and UIC was suc-cessfully held in Antwerp on 24 and 25 September 2015. The conference was entitled “RAIL CROSSROADS” and it was co-hosted and sponsored by the Port of Antwerp, Antwerp Freight Forwarders Association (VEB) and Belgian Freight Forwarders Association (CEB). Mr Petrov was delighted to welcome around 80 participants from various countries rep-resenting railway undertakings, terminal operators, rail service providers, freight forwarders and customers.

SEA

Mr Jens Roemer (Belgium), Chairman of the Working Group Sea Transport report-ed that the Working Group Sea Transport had a very interesting workshop in Cape Town, South Africa with stakeholders from the fruit exporting industry and shipping lines joining in and exchang-ing views on and experiences of various countries. It was interesting to have their different perspectives.

The key topic in Cape Town was the item of Container Weighing – IMO Safety of Life at Sea (SOLAS) Regulation. He reported that in less than 4 months from now it will be illegal for shipping lines to ship a container without a Verified Gross Mass (VGM).

But many questions still remain unan-swered. There is widespread frustration about the lack of information from key parties such as shipping lines, terminals and government agencies.

The World Shipping Council’s (WSC) FAQs documentation is nice and compre-hensive. However, its contents has abso-lutely no proposals or solutions with regard to how the trade is going to deal with it practically in its day to day operation. Ship-ping Lines have no answers and their head offices do not provide any guidelines.

For the time being no single country or port seems to be ready and there are not any clear guidelines available on how to deal with this issue.

The countries of the European Community took a different approach, making it even more difficult for the trade to deal with it. It is not predictable whether the huge trading nations such as China and India will be ready to implement the SOLAS regulation on 1 July 2016. FIATA has published a paper, which was drafted by the WG Sea Transport. It is an excellent

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Focus

document and very much used and ap-preciated by FIATA members. There have been (unofficial) communications about the loading list remaining a separate and additional document that will not be linked with the current document known as ships manifest. The loading list would contain data as reported in the VGM whilst the manifest would contain data as reported in the Bill of Lading.

A separation of the loading list and mani-fest would allow consolidators to weigh the whole container using Method 1, which fully complies with SOLAS, and add all single FBL’s to declare the Ocean Bill of Lading weight according to the current procedures.

It is understood that the manifest (only!) will be used for destination customs pur-poses and the loading list will remain a local document at the place of origin used for the purpose of loading the vessel – only.

There is no provision in SOLAS for any margin of error, but weight tolerance is required for natural variation and for inaccurate tare weight of containers. A number of EU member states, including the Netherlands, France and the UK have already indicated that they will support a 5% margin of error. It seems that government agencies are lacking time and resources to introduce certification programmes. Mainly they referred to existing accreditation schemes. The majority of countries will recognise existing audited certification schemes (AEO, ISO, ERP data).

Shipping lines and terminales do not have legal enforcement, mandate or legal obligation to control the weight (VGM) and to convey the VGM to the authori-ties.They will only be obliged to ensure that the VGM documentation is available and compliant.

Mr Roemer concluded that it is frustrat-ing to realise that with less than 4 months to go, there does not seem to be a single country, shipping line or terminal that is ready and has clear guidelines on how to deal with it. It appears as if rules and legal enforcement are likely to vary among countries, ocean carriers and marine ter-minals, making this rule potentially a big headache for the trade to comply with. It even appears that countries of the Europe-an Community take a different approach.

FIATA published a press release on the SOLAS issue, which has received global attention.

Mr Roemer reported that various AEO (Authorized Economical Operator) schemes have been implemented and mutual recognition is developing. Only recently, in November 2015 the mutual recognition between China and the Euro-pean Union came into effect. Unfortuna-tely, in many countries certified freight forwarders still lack advantages related to the status.

Some governments will consider AEO cer-tified companies as trusted shippers, allow-ing them to declare the container weight under Method 2 as of July 2016 when the SOLAS amendment comes into force.

Also the new European Customs Code, which will be introduced as of May 2016 caters for benefits related to an AEO certi-fication. However, often common benefits of the past are now linked to an AEO certification.

Federal Maritime Commission 46 C.F.R. Part 515 Docket 13-05 – Ocean Transpor-tation Intermediary Licensing

Mr Kevin Sarsfield, Senior Vice President Avalon Risk Management provided a pres-entation on the new Federal Maritime Commission (FMC) Final Rules. He ex-plained that the most significant change in

the new rules is the requirement for OTIs to renew their license every three years. Previously, licenses were granted without an expiration date. Existing licenses will be phased into the system over the first three years beginning 15 December 2016. Foreign Ocean Transport Intermediaries (OTIs) still have the choice of becoming a licensed entity in the United States or registering as a foreign OTI.

ICC

Mr Tej Contractor explained that ICC has established a Working Group on INCOTERMS in order to create a guid-ance document simplifying the Incoterms 2010 for trade. ICC has received a lot of requests for clarification of the terms. The main disputes are: Misunderstandings in division of costs and risks, differences between applicability of terms in Sea and any other Mode of Trans-port, the terms of FCA has 2 points and these are sellers premises and also terminal and finally transit clearances especially for LCL transport. In the meantime they have sent the final draft to the ICC Publish-ing Department. They expected that the guidelines will be released for publishing within the next six months.

Advisory Body International Affairs (ABIA)The ABIA held its annual HQ Session meeting with vibrant participants in attendance to hear about the body’s work over the past 5 months. With a packed agenda, the meeting wasted no time in getting underway.

ABIA Chair, Mr Babar Badat started by briefing the delegates on the latest ac-tivities with the Asian Development Bank (ADB), outlining his recent participation in the “CAREC Workshop on Rail” in Tokyo, on November 24–26, 2015. He highlighted their focus on infrastructure as they examined progress and future needs to develop the six CAREC rail


corridors connecting national and pro-vincial transport corridors. The meeting discussed these countries’ strong demand for improving infrastructure and multi-modal facilities to maximise utilisation of the CAREC railway corridors. He also announced that the ADB would be join-ing FIATA’s Working Group Rail meeting in Shenzhen, China in May this year. The audience got a first-hand look into the work ADB is conducting in railway infra-structure and the mechanism of coopera-tion with FIATA.

Keeping pace, Mr Badat then invited Ms Nicolette van der Jagt to give an update on the ITF side event organised by FIATA, CLECAT, ESC, SFC and IRU. The next ITF event, to be hosted in May this year, will consist of four private sector speakers and two government representa-tives. FIATA confirmed their speaker by nominating Mr.Jianmin YU, from China.

One of the main activities of ABIA has been advocacy at the UN in the area of logistics connectivity. In a brief introduc-tion the Chairman Mr Badat outlined that in the year 2000, 8 Millennium Develop-ment Goals (MDGs) were ratified, but there was no mention of logistics, which meant that it was not included in the

main stream of the global development agenda. In 2015, a new programme was launched and now it has been formalised into 17 Sustainable Development Goals (SDGs). Our engagement in this process and logistics has been in multiple areas. Mr Bassil Eid added that there were 20 di-rect targets, which include logistics and multiple others, which will be indirectly impacted from logistics investment. He reminded delegates of FIATA’s advocacy message, which reads as follows: “More emphasis and focus on logistics connectiv-ity within the proposed SDGs and targets, in order to ensure a future of facilitated trade and economic prosperity”.

Mr Heiner Rogge speaking about envi-ronement issues outlined FIATA’s recent participation in the Sustainability Forum sponsored by Volvo. He said this focused on broader collaboration between busi-ness and society to accelerate actions on the environment in the Sustainable Development Agenda. He then updated members on the agenda of the newly established Working Group on Sustain-able Logistics. He said the focus of the Group will be on the role of logistics in Climate Change topics, such as the Climate Change Agreement concluded in December last year in Paris, which aims

to keep emission levels from increasing more than 1.5 degrees.

Mr Francesco Parisi briefed delegates on the FIATA hosted side event at the 2015 WTO Public Forum. He said the aim was to highlight the role and importance of local industry engaging with government on the implementation of the TFA. He said notable speakers on the panel includ-ed representatives from organisations like ICC, WTO, WCO, UNCTAD and ITC.

Moving to the next point Mr Badat out-lined the importance for members to respond to survey requests. He said that in the past few weeks, two surveys were cir-culated to Association Members for input. However, he said there were a low number of responses and he requested members to respond so that FIATA can communicate with the multilateral organisation in a more informed manner, equipped with the right information from the member-ship. Responding to a suggestion from the floor by Mr Issa Baluch, the Chair agreed that for the next meeting the ABIA man-ager should prepare to make surveys avail-able to delegates at the actual meeting.

Before announcing the closing of the meeting, the Chairman gave details of the next meeting, which he said will be held at the 2016 FIATA World Congress on October 6th. A time and agenda will be provided in due course.

Advisory Body Information Technology (ABIT)The topic of ABIT has witnessed a re-vival within FIATA having been rein-troduced last year with the growing im-portance of IT throughout the industry. The need to provide industry input into standards has never been more impor-tant. This in turn provides direction to IT vendors, which aim to deliver vi-able and up-to date solutions that benefit the industry.

Successful Re-Validation of UZT – Ukraine

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Focus

The main coordinating body for this work is the UN Centre for Trade Facilitation and Electronic Business (UN/CEFACT). Knowing the importance of UN/CEFACT, FIATA invited Ms Maria Rosaria Ceccarelli – Acting Chief, Trade Facilitation Section, UNECE – to showcase some of the key projects. One particular project that was discussed was on Trusted Trans-boundaries, which aims to strengthen the degree of confidence among trading partners.

Mr Dominique Vankemmel, ex-Do-main Coordinator Transport/Logistics, UN/CEFACT briefed delegates on the UN/CEFACT Transport-Logistics meet-ing in Valencia 9–11 March 2016 high-lighting key projects such as, VERMAS (Verified Gross Mass) for containers, SeDAP (Ship e-Documents Access Pro-ject) and e-BOD for Logistics (electronic Bill of Delivery (multimodal transport)) and their relevance to forwarders and the industry.

Ms Anne Sandretto, Chair of ABIT, re-capped on the work that had been done through FIATA’s participation in the Digital Transport and Logistics Forum (DTLF). Two subgroups were formed – Electronic transport documents and Op-timisation of cargo flows along transport corridors (Scandivanian-Mediterranean) with the aim of establishing a single digi-tal market within Europe.

Mr Oleksandr Fedorov highlighted the practical outcomes in Ukraine coming out of developing standards. He outlined the benefits of UN / CEFACT RECOMMEN-DATION 33 in cutting costs through re-ducing delays, faster clearance and release, predictable application and explanation of rules and more effective and efficient deployment of resources.

Closing the meeting, FIATA gave a brief update on the practical projects with industry partners. Our project with e-AWB filling vendor EDI Kale has con-tinued to experience growth in Thailand working with FIATA’s Thai Association reaching a total 30,000 EDI messages for 4,400 shipments. Following on from the Memorandum of Understanding (MoU) signed with MercuryGate at the 2015 FIATA World Congress in Taipei, FIATA provided information to Association and Individual Members on next steps and began to initiate their part of the MoU.

Advisory Body Legal Matters (ABLM) The FIATA ABLM met in Zurich on Friday 18 March 2016, chaired by Mr Richard Gluck (USA).

SOLAS

Mr Mike Brown Avalon Risk Manage-ment and Mr Michael Yarwood from TT

Club London reported that there were a few different exposures that arise out of SOLAS: direct penalties or indirect penalties and claims. He explained that in general the insurance companies will not cover claims. If there is a penalty levied against a freight for-warder from a government body for a fundamental violation in international law, this will be excluded by international insurance

companies. In case that the actual ship-per provides the freight forwarder with an incorrect gross mass and the freight forwarder transfers this weight to the shipping line, the answer can be found again under the merchant clause on the master bill of lading. The claim should not be pursued against the freight forwarder, but rather against the actual shipper who gave the incorrect information.

Mr Yarwood reported that an international convention that any such amendments under SOLAS once adopted become part of national law for the signatory coun-tries of which there are over 170. There are no additional requirements to bring these regulations into national law. As the deadline for compliance is now fast approaching, many questions are being raised, not only in relation to the practi-cal and operational challenges, but also in relation to insurance, legal and risk management issues, which we are going to consider here.

This regulation will come into force on 1st July 2016 and will not be postponed. The final deadline for any member state to have raised any reservations in relation to these amendments passed on the 1st January 2016 without comment.

Mr Tej Contractor explain that there have been numerous cases where the FIATA Multimodal Transport Bill of Lading (FBL) has been fraudulently issued, either by a party not authorized to issue FIATA transport documents or by a party pre-tending to be a company that is authorised to issue FIATA transport documents. The ad hoc WG has started to create a system of storing data validating the FBLs. This would give the ability for a bank or other interested parties to effectively log in and check if the document is valid or not. This approval would effectively protect the interests of FIATA, the association members as well as the freight forwarders involved. The ad hoc WG proposed to Successful Re-Validation of NSBS – Bulgaria


create a survey for a small group NVO’s in various countries to obtain information on how they issue the documents. It is also planned that discussion be had with banks and other financial institutes to see how they could enter the system and check how genuine a document is. They will call for quotes from various software vendors to see how they can take this forward. It is important that the code will belong to FIATA and not to an individual vendor. It is planned that a framework on insurance will be created in order to protect the in-terest of the involved parties. Finally, the ad hoc WG will provide a recommenda-tion to the FIATA Presidency for approval.

Mr Gluck reported on the assistance of the ABLM to the AFI in their negotiations with IATA on a new cargo agency mod-ernisation programme. The full report will be provided and debated by the Air Freight Institute (AFI).

Mr Shmuel Grossman provided a pres-entation on CASS programme in Israel. He reported that the CASS Programme was first approved in Israel by the Israel Antitrust Commissioner in 2011, for a limited period of 3 years. IATA requested to extend the CASS validity for an ad-ditional period and requested from cargo agents to provide IATA with exaggerated new bank guarantees and arbitrary de-mands to furnish IATA with cargo agents’ private financial statements. This situa-tion creates difficulties for cargo agents who asked to work with airlines outside the CASS arrangement and not as a part of it. The freight forwarders Association in Israel could negotiate an arrangement with IATA’s representatives in Israel.

The bank guarantees of the cargo agents will not be increased and Cargo agents who were not required to deposit bank guarantees will not be required to do so.

New bank guarantees will be required from new cargo agents (or those who

had more than a 30% change in owner-ship) or cargo agents who committed over four violations (IRR) in 12 months. The amount of a new bank guaranty will be determined by an agreed mechanism of financial strength. Ms Beata Janicka from Poland reported about rights and obligations of the Polish Freight Forwarder/NVOCC with regard to the non-collection of goods by a consignee.Furthermore the topics of new Stand-ard Trading Conditions in China as well as the new Chinese Anti-Terrorism Law stipulated specific regulations on the de-termination of terrorist organisations and terrorists, safety prevention measures in addition to investigation, response and handling of terrorist incidents, relevant legal liabilities, have been presented by Mr Yang Yuntao from China

Advisory Body Safety Security (ABSS)The Advisory Body Safety Security (ABSS) set forth an in-depth agenda at this year’s 2016 FIATA HQ Session. The meeting started with a topic that has captured headlines throughout the past six months. Mr Ben Radstaak updated members on recent developments surrounding lithium batteries. Issues of counterfeit and unde-clared batteries coupled with the backing of FAA and IATA led to Lithium Ion cells and batteries (UN 3480, PI 965, Section IA and IB) becoming forbidden for carriage on passenger aircraft (PAX). Delegates in attendance were posed the questions; does the ban address the real problem and what can forwarders do to protect aviation from badly manufactured/packaged, counterfeit and wrong/unde-clared lithium batteries?

Following DG updates, Mr Niels Beuck updated members on the status of e-CSD. The main aim of e-CSD was that cargo shall not be subject to re-screening at any transit or transfer point, if accom-

panied by a CSD/e-CSD. He encouraged FIATA to promote the implementation of CSD/e-CSD in any ICAO member state by collaborating with IATA, the respective national flag carrier, and national CAA.

The Chair, Mr David Fielder, then dis-cussed in general the issue of territorial control against a backdrop on the subject of mutual recognition. He cited issues in Bangladesh whereby the government was put in pace of airport screening and prohibiting on airport screening despite global outcries from the industry, IAA and the EU Commission that it created issues around local landside transport security and interfered with a carrier’s right to screen their own cargo as they think fit.

He also raised the issue of mutual recogni-tion, citing examples from Australia and mentioning the UK banning direct ship-ments by air from Bangladesh. Another example was Governmental directives restricting the transportation of cargo associated with Egypt, Somalia, Syria or Yemen. Effective immediately, all ship-ments tendered for entering the USA must be accompanied by appropriate documen-tation confirming the origin. This would affect approximately 1.6 billion USD of cargo to the USA from Egypt. With the increase in terrorist activities such as Paris, resulting in partial closure of borders, could the industry expect more territorial acts? Would other countries follow suit? What can FIATA and forwarders do?

Rounding up the meeting topics, Mr Chen Zhengcai from China advised that at the present time, the international marine transport of dangerous goods is facing two challenges: accident risk and lack of freedom in transport channels.

Delegates engaged with the panel of speakers throughout the meeting, high-lighted key topics to be tackled by FIATA.

➤ ➤

14

Country Report

Zimbabwe – The Heart of Southern AfricaZimbabwe is arguably the most strategically

positioned country when it comes to trading

with Southern Africa.

It is centrally located between South Africa,

Mozambique, Zambia, Namibia (to a lesser

extent) and Botswana.

OVERSEAS CARGO coming to and from Zimbabwe and the Southern Africa region uses mainly the sea ports of Durban (South Africa), Beira and Maputo (Mozambique), Dar es Salaam (Tanzania) and Walvis Bay (Namibia). Of these, Durban and Beira account for most of the volumes by far.

Sea freight is conveyed to Zimbabwe by both rail and road with the latter being preferred of late. Zimbabwe is a key transit country in Southern Africa handling cargo destined for and from all its neighbours and the Democratic Republic of Congo. Most of this transit cargo is transported

by road. This is the reason why Zimbabwe is really the heart of the region when it comes to regional cargo logistics.

Like most African states, Zimbabwe’s government revenue relies significantly on import duties and taxes. To this extent, customs clearing processes are a major part of freight forwarders’ activities. Technical expertise is very critical in this area and the need for capacity building has become one of the major pre-occupations of The Shipping and Forwarding Agents’ As-sociation of Zimbabwe (SFAAZ). SFAAZ is indeed the sole provider of vocational training that is focused on the needs of the country and the region. The FIATA diploma has been conducted by SFAAZ since 1997 with re-validations having been successfully done in 2012 and 2016. The association has also benefitted from the FIATA Train the Trainer programme

that was successfully run with valued assistance from the FIATA Foundation in April/May 2015.

There is no special registration or licensing that is required for an organisation to be a freight forwarder in Zimbabwe but, an organisation must be licensed by the rev-enue authority if it is to conduct customs clearing activities. One of the conditions for such licensing is that the organisa-tion must belong to a recognised freight forwarders association. Although there are a couple of other smaller associations, SFAAZ is by far the dominant one both in membership numbers and the volume of business conducted by its members (see website www.sfaaz.org for a list of SFAAZ members).

Customs clearing of goods is through a single administrative declaration, which

Triumphant Train-the-Trainer course students of Zimbabwe after 2 weeks of intensive learning


Zimbabwe – The Heart of Southern Africais automated in the ASYCUDA World system. This system has improved the turn-around time of customs declarations very significantly, although there is always room for improvement, which the revenue au-thority is striving to do. It is important to note that some imports and exports require permits/licenses before they can be allowed in and out of Zimbabwe. SFAAZ members are available to give guidance on this.

Regionally, Zimbabwe is a member of two economic blocks; the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), both of whom, together with the East African Community (EAC), are in the process of transforming themselves into one eco-nomic region that is referred to as the TRIPARTITE. Both regions are still oper-ating on a Free Trade Area status with an

expectation that they will eventually trans-form into a Customs Union before embark-ing on deeper forms of regional integration.

Zimbabwe’s biggest trading partner is South Africa, although there is significant business that it does with other SADC and COMESA countries, Europe and the Far East (mainly China). South America, Brazil in particular, has also recorded some trade with Zimbabwe.

As of 1 March 2016, Zimbabwe introduced a Consignment Based Conformity Assessment (CBCA) system, which requires certain specified imports to be inspected at source. The CBCA is a form of pre-shipment inspection that has been introduced to curb general dumping and the influx of sub-standard and harmful products in order to protect society and the country’s delicate manufacturing sector from unfair competition. A French company, Bureau Veritas, was contracted to carry out the inspections worldwide. Imports landing in Zimba-bwe without the necessary conformity certificate will not be allowed into the

country and the importer will be required to re-export them. It is, therefore, impor-tant that suppliers are advised of this new requirement before shipping goods to Zimbabwe.

Zimbabwe – Facts & FiguresOfficial Name: Republic of Zimbabwe

Capital City: Harare

Form of Government: Constitutional Democracy

Literacy: Number 1 in Africa

Area: 390 757 Square Kilometres

Coastline: Landlocked / Land linked

Population: Approx. 14 Million

Ethnic Groups: Black, White, Indian and Coloured

Predominant Languages: English, Shona, Ndebele

Administrative Divisions: 10 Provinces (One Central Government)

Major Trading Partners: South Africa, Singapore, Mozambique, China, Zambia, United Kingdom, United Arab Emirates, Botswana, Japan and India

Mainstay: Agriculture and Mining

Import Controls: Affect specified products esp. Agricultural products and fuel

Export Controls: Affect mainly Agricultural products and Minerals

Imports (year 2015) : Diesel 15%, Unleaded petrol 8%, Medicaments 3%, Maize (Excluding Seed) 3%, Wheat 2%, Rice 2%, Crude soya bean oil 1%, Machines 1%, Goods vehicles 1%, Other 64% Source: ZIMSTAT

Exports (year 2015): Gold 24%, Flue-cured tobacco 23%, Nickel ores and con-centrates 9%, Ferro-chromium 7%, Industrial diamonds 6%, Sugar Cane 5%, Electrical energy 2%, Platinum 2%, Cotton 1%, Granite 1%, Nickel 1%, Unsorted diamonds 1%, Other 18% Source: ZIMSTAT

16

Focus

Advisory Body Vocational Training (ABVT)

After five successful re-validations in the framework of the 39th Validation Ses-sion, the Validation Working Group has recognized that e-learning is changing the way our industry is retaining and accessing knowledge and it is transforming and re-structuring the traditional models used by FIATA Association Members to deliver the FIATA Diploma Programmes. E-Learning has enabled Association Members to ex-pand on their current geographical reach, to capitalise on new prospective students and to establish themselves as global edu-cational providers. To name a few exam-ples, Canada and Bulgaria have successfully moved their training programmes into the virtual space. The Validation Work-ing Group has assessed the online training programmes quality using specific criteria.

The 39th Validation Session re-validated the FIATA Diploma in Freight Forward-ing Training Programmes conducted by the following Association Members:• The Shipping and Forwarding Agents

Association of Zimbabwe – SFAAZ – (Zimbabwe)

• Bulgarian National Freight Forwarding Association – NSBS – (Bulgaria)

• Canadian International Freight Forwar-ders Association – CIFFA – (Canada)

• The Association of Logistics and Freight Forwarding of the Slovak Republic – ZLZ – (Slovak Republic)

• Association of transport forwarding and logistics organisations of Ukraine – UZT – (Ukraine)

Equally innovative is the way in which the Young International Freight Forwarder of the Year Award is developing. Statistics shown depict an overall increase in parti-cipation in the competition and a growing interest of previously passive regions. It has also proved the benefit of social media for the promotion and awareness raising of the award.

The meeting unveiled the new FIATA Foundation website: www.fiatafoundation.com which provides global access to re-ports and information on previous TOTs as well as information on its sponsors. You are cordially invited to visit this site and meet the international facilitators, the FFVT Council, the Managing Committee. Perhaps you find the articles written by two special guests, Mrs Susan Mutanga-dura from Zimbabwe and Philip Thier-mann from Chile, interesting? The foun-dation invited them because they were the two best students of the Train-the-Trainer courses conducted in 2015. Their out-standing analysis of the educational status of our industry in their regions makes their essays a recommended reading.

Most importantly, the ABVT Chairperson, Mr Thomas Sim, mentioned that the Minimum Standards to acquire the FIATA Diploma in Freight Forwarding are under-going a monitoring and evaluation process that will result in an updated set of gold standards. This will respond to changes in the industry and enhance the importance of the diplomas.

Finally, let us share some statistics. A total of 56 FIATA Diploma in Freight Forward-ing Programmes have been validated in 53 countries. There have been quantum leaps of New and Re-Validated Pro-grammes in recent years. This has resulted in the issue of 11,954 FIATA Diplomas in Freight Forwarding since 1996. Out of these, 554 were issued within the last six months. Additionally, 15 Association Members have validated the FIATA High-er Diploma in Supply Chain Management and 113 FIATA Higher Diplomas in SCM have been issued.

Region Africa Middle East (RAME)This year, the Region Africa Middle East (RAME) meeting aimed at providing a fresh agenda focusing on a new set of top-

ics relevant in the region today. With the new focus, came a packed agenda even for the usual two and a quarter hour time slot that it is allocated regularly.

The Chairman, Mr Basil Pietersen opened by welcoming participants to the meeting. Wasting no time, he invited Mr Issa Baluch to update members on policy items. Mr Baluch recapped on previous work regard-ing the Yamoussoukro Declaration and Lome Declarations, a regional policy agree-ment aimed at liberalising the air transport throughout the African region. He pointed at FIATA’s position paper advocating for re-implementation with a focus on regional bodies. He moved onto a new policy item for which negotiations had started in Feb-ruary this year. The first meeting of the Continental Free Trade Area Negotiating Forum (CFTA-NF) laid the groundwork for upcoming substantive negotiations on Africa’s largest free trade area.

From an experienced veteran to a newer generation, Mr Zakaria Dabone and Mr Steven Silverstein were invited to outline their African Start-Up, Bisofar, aimed at connecting forwarders, carriers and ship-pers seeking to conduct business in West Africa. Delegates were intrigued by the new technology to be unveiled for testing in May.

Setting the stage for the RAME 2016 Field Meeting in Addis Ababa, Ethiopia, Mr Salahadin Khalifa outlined the three day programme expected to attract higher government officials, the World Bank, UN agencies and executives from the private sector. Delegates asked a number of questions to ensure that all participa-tion roadblocks were covered to ensure their attendance in Addis Ababa from May 19th–22nd.

Looking ahead, the two bidding contend-ers for the 2017 RAME Field Meeting were welcomed to deliver their initial presentation. Cameroon and Morocco


both provided an in-depth look into what a Field Meeting would look like should they win the 2017 nomination ticket. The next stage lies in Addis Ababa during the 2017 RAME Field meeting where they will go deeper into their bids.

With time running scarce, Mr Baluch provided a quick update on two new FLA courses on anti-corruption and anti-bribery, which would be made available to the region online. Capping the meeting, Mr Ahmed Moustafa delivered a short country presentation of recent logistics development in Egypt. He highlighted the main ports in Egypt as the Dekheila Port, which is a natural extension to Alex-andria Port, the Damietta Port, which has the largest container terminal and most sophisticated equipment in the Middle East, and ports Said and Suez at both ends of the Suez Canal.

Americas (RAMNS)The meeting starting with the FIATA Foundation’s Special Guest Mr Philip Thiermann presenting about his experi-ences at the Train-the-Trainer Programme conducted in Chile in 2015. He men-tioned that understanding how to pre-pare and deliver training enabled ALOG to create effective training programmes. Of special interest was the international character of the facilitators. The group then discussed the SOLAS Regulations which begin on July 1st and emphasized that there is still some confusion with the carriers. Association Members mentioned that they have been gathering informa-tion and approached their governments to understand how the rules will apply in each country. Under the topic Air Trans-port its was noted that the IATA – FIATA agreement has not been signed yet and so in Latin America they might implement Resolution 813 zz. Some years ago Latin America expressed its desire to update its programme and recognize the forwarder for what it is, in a principle-principle re-

lationship, and not an agent of the airline. The quorum expects global realignment of the air cargo programme in the future. Meanwhile Latin America can go forward with a programme that is very similar to the one implemented in Europe and Australia whereby freight intermediaries have a stronger voice. The meeting then dialogued about the trend moving from commissions to net rates. They also con-cluded that they will discuss within the ALACAT framework about the “risk of the country” insurance. Ecuador described a historical situation in which this other guarantee that should have been waved after the risk of Ecuador was at the right level was not waived and proceedings had to be conducted. The issue of enhancing transparency has highlighted in the Secu-rity issues in the Americas section. Finally, Mr Jorge Heinermann recalled that he participated in discussions about the im-plementation of trade facilitation. The dialogue conducted can be summarized in three words: knowledge is power.

Asia Pacific (RAP)It was the China International Forwarders Association’s (CIFA) turn for the tradi-tional Members Presentation. The RAP Chairman, Mr Chris Kanter welcomed the FIATA President Mr Zhao Huxiang and Mr Huxiang addressed the RAP meeting in his introduction. CIFA’s presentation was done by Mr Fang Jian, Director of Training Department CIFA and consisted of background information on the China foreign trade and logistics industry, latest developments of the China Freight For-warding Industry and CIFA.

Mr Tej Mayur Contractor of the Federation of Freight Forwarders Associations in In-dia (FFFAI) Member Executive Commit-tee, informed us about his participation on behalf of FIATA in an International Chamber of Commerce Working Group that worked on a guidance document that will provide a Simplification of Incoterms

2010. It is planned that the document will be published in 2016.

Twenty-nine RAP delegates attended and this was a good number. The par-ticipants were active in discussions and raised numerous issues of mutual concern and interest. These discussions were very beneficial and the meeting was concluded with appreciative feedback from many of the participants.

Examples of issues raised

AIR

Reluctance of some airlines to provide Airwaybills or their service to forwarders (new IATA accredited agent).

SEA

Safety on Life at Sea (SOLAS) effective 1st of July 2016.

CUSTOMS

Issues of the region were referenced by the CAI Chair, Mr Stephen Morris and included for example, the Asia-Pacific Economic Cooperation (APEC) subcom-mittee on customs procedures, discus-sions on the World Trade Organisation’s (WTO) Agreement on Trade Facilitation (TFA) and as a key issue the setting up of National Committees on Trade Fa-cilitation (NCTF). These were thoroughly commented on in the CAI with regard to the need for economies to ensure that they actively participate and with regard to associations advocating for getting them integrated into their economy’s NCTFs.

Tenth RAP Field Meeting, 24th June 2016 in Jakarta IndonesiaDelegates at the meeting and RAP del-egates were invited by the RAP Chairman, Mr Chris Kanter, and by the host, the Indonesian Logistics and Freight Forward-ers Association’s (ILFA) Chair, Mr Yukki Nugrahawan, to register as soon as pos-sible for the upcoming tenth RAP Field Meeting and the United Nations Eco-

18

Focus

nomic and Social Commission for Asia and the Pacific (UN ESCAP) meeting. FIATA’s meeting will be held in Jakarta on 24th June and the UN ESCAP meeting will be held on 23rd June 2016. Mr Nugrahawan announced the venue to be the Borobudur Hotel in Jakarta. More details are available on FIATA’s website. FIATA encourages all delegates from the region to attend these meetings as they are a most valuable opportunity to network and to address specific and relevant regional topics.

Europe (REU)The REU meeting was chaired by Dr Ivan Petrov of Bulgaria and was attended by 40 delegates. He introduced his succes-sor Mr Turgut Erkeskin from Turkey. Mr Erkeskin will officially take over the chair of Region Europe after the FIATA Con-gress in Dublin, Ireland.

Mr Andreas Demmer from ZV Zentralver-band Spedition & Logistik of Austria pro-vided a country presentation and reported that the Austrian economy is dominated by small and medium enterprises (SMEs). The majority of Austrian goods that are exported come from these industrial sec-tors. Tourism plays an extremely impor-tant economic role. In 2014 around 25.3 million foreign visitors came to Austria, with almost 96.2 million overnight stays. Austria is the logistics hub for Central, Southeast and Eastern Europe. Logistics services, both directly and indirectly, se-cure more than 148,000 jobs per year.

The annual turnover generated by the logistics sector amounts to approximately 9 billion EUR and the gross production value amounts to approximately 17.62 billion EUR. Zentralverband Spedition & Logistik has the task of representing the interests of the sector and strengthening the economy in Austria. The 180 mem-bers employ 14,000 people and account for about 90 percent of the turnover of the sector.

Ms Fleur Breuillin, Policy Officer at the European Commission – DG Mobility & Transport (DG MOVE) Unit D.1 – refer-red to the Digital Single Market strategy 2015 and said in her presentation that the EU Commission has the intention to have better online access to digital goods and services. They will try to create an environment where digital networks and services can prosper. She stated that digi-talisation will be a driver for growth. The Digital Transport and Logistics Forum has the objective of bringing all relevant stakeholders together in a multimodal perspective in order to support freight transport/logistics digitalisation with analyses and proposals. The Forum was established on 9 April 2015 as a commis-sion expert group. They are working in two subgroups (Electronic transport docu-ments and optimisation of cargo flows along transport corridors) and the plenary meets twice a year.

Mr Petrov encouraged the delegates by a presentation to participate in the second meeting of the enlarged Contact Group UIC/FIATA which will take place in Shen-zhen, China on 12 and 13 May 2016. The key aim of the meeting is to provide a lively exchange platform for railway undertakings and freight forwarders in order to create an opportunity to generate effective transport solutions and discuss railway transport attractiveness on the Eurasian rail link. Ms Van der Jagt, Director of CLECAT, reported that the European Commission intends to present its road package on market access, social issues and enforce-ment this year. Recently the European Commission presented a targeted revision of the rules on the posting of workers. The aim of this proposal is to facilitate the provision of services across borders within a climate of fair competition and respect for the rights of posted workers, who are employed in one Member State and sent to work temporarily in another by their

employer. More specifically, the initiative aims at ensuring fair wage conditions and a level playing field between posting and local companies in the host country. The Commission has noted that because of the highly mobile nature of work in international road transport, the imple-mentation of the posting of workers direc-tive raises particular legal questions and difficulties. It would be most suitable for these challenges to be addressed through sector-specific legislation together with other EU initiatives aimed at improv-ing the functioning of the internal road transport market.

The rules on road charging, and in par-ticular the so-called “Eurovignette” Di-rective 1999/62/EC, are up for a review. Ex-post evaluation findings uncovered that only a small part of the total EU network is subject to user charges or tolls and revenues are not always re-invested in the tolled network, which may result in degrading infrastructure quality. Although there has been some convergence, a great variety of different schemes exist (with some Member States having no road charging in place at all), which leads to inconsistent price signals,


suboptimal transport behaviour, undue emissions and, in some cases, traffic di-version. Time-based vignette systems may discriminate against occasional users of both HGVs and light vehicles.There are various challenges to be solved for road transportation:• Interpretation of EU regulation driv-

ing/rest times• Minimum wages in Germany, Norway,

Denmark, France? For cabotage and international transport

• Too strict an interpretation of cabotage rules for protectionist reasons

• Leads to fragmentation, bureaucracy, costs, instrument to break the internal market

CLECAT suggested that there should be greater efficiency and there should be more clarification on the cabotage rules which should be simplified with the ulti-mate aim of having a better functioning internal market.

They plead for the interoperability of the electronic tolling system with a fair charg-ing for road vehicles.

Ms Van der Jagt referred to the 4th railway packages and reported that on 15 February

2016, the TRAN Committee of the Euro-pean Parliament received the report of the Council's position at first reading on the 4th Railway Package Technical Pillar. In particular on the interoperability of the rail system within the European Union; railway safety and the European Union Agency for Railways and repeal of Regulation.

Wagonload is of crucial importance to certain European industries and freight for-warders would like to have access to the ser-vices. In spite of its importance, wagonload is declining and could disappear altogether in some European countries. This was one of the main conclusions of the study on wagonload traffic in Europe carried out by PwC on behalf of DG MOVE in 2014.

CLECAT recall the urgency of taking ac-tion to prevent wagonload services from further decline. While market-driven solutions are crucial; policy intervention and support are also needed. In view of this, various associations have started an open dialogue on the need to revitalise wagonload services.

A new aviation package, published in December 2015, focused on international

competitiveness, access to growth mar-kets with competition conditions and tackling capacity constraints. CLECAT published a position paper and welcomed the strategy, but opposed protectionism and called for concrete policy proposals and cargo focus.

Mr Steve Parker referred to the Union Customs Code entered into force on 30 October 2013, which will be applica-ble from 1 May 2016. The transitional period will end on 31 December 2020 to allow time for all electronic systems required to be operational/ready.

The following key changes will be applica-ble from 1 May 2016:

• Mandatory guarantees for most special procedures and temporary storage (new authorisations only)

• The possibility to make some move-ments under Temporary Storage and not transit

• Some changes to valuation rules • Procedures that will cease by 1 May

2016: Inward Processing Drawback au-thorisations will no longer be regard-less of any expiry dates shown on your authorisations.

20

Focus

The Euro 10 waiver of customs duty for free circulation customs declarations – where customs duty is payable no de-minimis exemption will apply.

The key issues for the freight forwarding industries are:• Express Summary Declarations – ad di-

ti onal data requirements• Requirements for Guarantees – the

calculation of the reference amount• Ownership of authorisations for Tem-

porary Storage• The importance of being an AEO and

the additional requirement: A new qualification criterion of profes-

sional competence has been introduced – “Practical standards of competence or professional qualification directly related to the activity carried out.”

Furthermore, the subjects of CEN stand-ard of competence and the EU proposal on sanctions and infringements were debated.

FIATA Logistics Academy (FLA)“The question is: what is going to disrupt Amazon? The reality is something will. Someone will come up with a better way to deliver customer value at some point in the future than what Amazon is able to deliver. They are becoming a dominant re-tail consumer player, a much larger player in the commercial space with business to business transactions, we did not expect that. We are talking to a lot of large in-dustrial firms who are terrified of Amazon. You know they are not competing directly with them but they see the potential. Then of course they are moving into the logistics and transportation space, they have decided that the FedEx’s and UPS’s of the world do not have the capacity to serve their peak demand and they are taking control. All of these things are sug-gesting huge investments by Amazon to support its business model. So, one of the threats is a new market player saying, ‘I’ve got a better way. You do not have to have

all this investment to be successful.’ We do not know what it will be, but we see it coming” stated Dr David Frayer, Director of Executive Development Programmes in the Broad College of Business at Michigan State University, who held a presentation on Supply Chain, Knowledge & Expertise Avoiding Obsolescence at the FLA Lunch & Learn Session. This quote reflects FLA’s spirit; FLA aims at disrupting training and education in our industry by becom-ing one knowledge source. The first step is now done and the great library of learn-ing offerings and innovative knowledge transfer opportunities that are relevant to logistics professionals is now established and continuously growing.

A second presentation at this meeting portrayed Business on the Move, a fun educational game that is intended to excite and inspire 9 to 19 year olds about business and the global supply chain. Mr Andy Page and Ms Patricia Smedley il-lustrated the history of this not-for-profit social enterprise and invited the audience to think of new ways of inspiring young people about logistics, supply chains and business as a whole. Using a game they raise aspirations of our next generation, our future workforce and future entrepre-neurs. Their objective is to enhance em-ployability skills – “behaviours, attitudes & skills that last a lifetime”. Their mission and vision is compatible with the mission and vision of FIATA in the sense that their game familiarises the world with the industry, supports vocational training and unites the industry.

Finally, FLA showcased a new bundle of courses focused in Anti-Corruption, Anti-Bribery and Ethics in Management. These will be made available at a discounted rate on the FLA website: www.fiatalearning.com. The FLA is thus responding to the fact that the behaviour of corporations should not be just a reaction to regulation or legal compliance, but a means of doing business that gives customers, employees,

partners and communities the confidence that they are working with an ethical organisation that is not prepared to com-promise on its integrity to achieve its ob-jectives. The FLA believes that education on these topics can help build high stand-ards of ethical conduct, which provide a market differentiator.

Association Members’ ForumOn Saturday morning delegates joined the Association Members’ Forum, a ses-sion dedicated to internal innovation and learning. Chaired by the FIATA DG Mr Marco Sorgetti, the session outlined very tangible key action points focusing on tackling members' needs and enabling FIATA’s global strategic aims. We will outline some of these action points in the following lines.

The Future of FIATA ad hoc WG in cooperation with the Secretariat should develop the “how can FIATA help eBook” containing “how to guides” on advocacy programmes, conflict resolution, human resources best practices, and adding value to members. This eBook will also include a mentoring scheme to enable the sharing of expertise among Association Members. Other action points include developing a common approach to digitalisation in logistics and improving the FIATA Docu-ment Delivery System. The Secretariat will also send out a consultation pack to all FIATA Association Members to gather concrete information on the dimension of the logistics industry globally. It was also decided at the meeting that a new ap-proach to “blanket cover mechanisms” to incentivise membership should be created. FIATA will review and update the FIATA Membership Benefit document. FIATA will also gather feedback on Association Members' membership criteria and share a summary of these findings with the membership base.

News


Once more the FIATA Foundation Vocational Training awarded the outstanding performance of the best students of the Train-the-Trainer courses

held in 2015 by inviting them to the FIATA HQ Session 2016. Ms Susan Mutangadura from Zimbabwe and Mr Philip Thiermann from Chile were the

top students. They recognized the eye-opening opportunities offered to them by the TOT course. FIATA Review asked them to elaborate on the

importance of specialised education for our industry in their region.

A Brief Overview of Training within the Southern African Development Community RegionTHE SOUTHERN AFRICAN Develop-ment Community (SADC) is a regional organisation consisting of 15 Member Countries. These are Angola, Botswana, Congo (DR), Lesotho, Madagascar, Ma-lawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tan-zania, Zambia and Zimbabwe. According to their website, the “main objectives of SADC are to achieve development, peace and security, and economic growth, to alleviate poverty, enhance the standard and quality of life of the peoples [sic] of Southern Africa, and support the socially disadvantaged through regional integra-tion, built on democratic principles and equitable and sustainable development”. It is my observation that there is huge po-tential for the International Federation of Freight Forwarders Associations (FIATA) to play a significant role in the achieve-ment of these set objectives, given that FIATA is the largest non governmental organisation in the field of transportation with worldwide influence and that FIATA represents a huge number of forwarding and logistics organisations.

It is interesting to note though, that the majority of the countries in the SADC region are not members of FIATA. And yet FIATA could play a major role in the objective of achieving development and economic growth for the region.

Only South Africa, Zimbabwe, Zambia and Tanzania (i.e. 4 out of 15 SADC member countries) are members of FIATA. The countries that have formal training programmes are South Africa, Zimba-

bwe, Tanzania, Mauritius and to a lesser extent Zambia. Of these, only Zimbabwe and South Africa are conducting FIATA accredited training. South Africa is ahead

of Zimbabwe in that it also offers the Higher Diploma, which Zimbabwe cur-rently does not offer. Like Zimbabwe, Tanzania has received a Train the Trainer (TOT) course from FIATA, but is still to offer the FIATA diploma. Their training is still localized. Mauritius does offer very good training programmes, although these are not FIATA accredited.

ObservationIt is apparent that there is a real need for formal training within the SADC region under the auspices of FIATA in view of FIATA’s global influence in freight for-warding and logistics.

In terms of the region, we do not seem to have regional co-operation in terms of training among SADC members, in spite of having an SADC regional body, i.e. the

Federation of Clearing and Forwarding Associations of Southern Africa (FCFASA), which is currently led by the CEO of the Shipping and Forwarding Agents’ Association of Zimbabwe (SFAAZ), Mr Joseph Musariri. There is however some momentum towards a regional training programme based on FIATA minimum standards. If this is achieved, perhaps there can be some level of uniformity in terms of logistics practice across the region, which would bode well with the objectives of SADC. There is perhaps an opportunity for FIATA through its Advi-sory Body of Vocational Training (ABVT) to work with Southern Africa through this SADC platform.

It is anticipated that training could achieve the following objectives:• Improve overall efficiency in the move-

ment of goods• Ensure that the shipping and freight

forwarder’s industry activities are not a barrier to trade but a positive enabler

• Reduce corruption through introduc-ing efficient service delivery provided by knowledgeable and well trained professionals

• Enhance revenue collection for the vari-ous governments through expert ser-vice delivery

• Minimise the risk of penalties for ship-ping and freight forwarding agents because the service providers are well trained and knowledgeable in their work.

Training in ZimbabweZimbabwe has a well-established and ro-bust training programme under FIATA

Susan Mutangadura, Zimbabwe

22

News

and has received FIATA TOT training. The training is conducted through face-to-face delivery of lectures. The course modules provided by the association are tailor-made to meet the needs of the industry, making SFAAZ graduates highly marketable in Zimbabwe and the Southern Africa region. The train-ing is conducted by affiliated private colleges and institutions, which have been accredited by the national body responsible for accrediting educational institutions in Zimbabwe. The legal rights to all the training material remain vested in SFAAZ. The examinations are set, marked and moderated by SFAAZ.

The association is also responsible for the awarding of certification. All trainers contracted by the various training insti-tutions must be accredited by SFAAZ. These requirements ensure that SFAAZ monitors overall training standards and facilities to maintain the integrity of the training programmes offered. Zimbabwe hopes to introduce e-learning in the not too distant future.

It is noteworthy that the training being conducted in Zimbabwe has a strong bias towards customs issues. I believe this is a result of the structure of our economy, which places a lot of reliance on revenue

collection matters. While expertise in freight forwarding matters is notably im-portant it would seem there is nothing that propels the need for training in this area, not even legislation, whereas work in the customs field requires licensing and hence a compelling reason for training.

ConclusionThere remains a lot of work to be done in the area of industry training at a re-gional level. It is hoped that FCFASA will promote the necessary training in con-sultation with FIATA for the benefit of the region.

Susan Mutangadura, Zimbabwe

International Logistics in South America: the Need for Specialised EducationFROM THE LARGEST RIVER in the world, to the longest mountain range, through to the driest desert and deep jungles, South America is a diverse and challenging continent for international transport and logistics.

Twelve countries share this continent. The area is larger than the whole of Europe and the estimated population is 406 million people, who live mainly near the coasts of this land.

South America is rich in raw materials, which are usually obtained from deep within this vast landmass. This requires extended transport infrastructure.

In the last decades, South America has gone through strong urbanisation and the population in the cities has become increasingly concentrated. People now

enjoy a higher income and are demanding an ever increasing range and quantity of consumer goods.

Based on the above, it would seem that South America would be very conscious of its transport and logistics requirements, and that it should have developed a large and professional group of intellectuals to deal with these challenges. Unfortunately due to a lack of economic development and under investment in education, South America is running short of dynamic scholars and engineers that have a clear understanding of international transport and logistics. This lack of highly trained professionals is then a problem when the Continent’s interconnection is discussed by its political leaders.

Regional political forums are awash with ideas and big projects to develop infra-

structure and integration. The key phrase is “Corridors”, usually to link two op-posite coasts, or big cities in different countries. These “Corridors” usually end up being almost the same current roads, railroads or ports with minimal additional investment. Unfortunately detailed re-search of the assets available, the transport needs of the regions being connected, or the available economic opportunities is not really taken into account. A con-nection from a major mining region to a port would get a road upgrade instead of a railroad, or a regional airport would get funding for a new cargo terminal when there is no chance there will ever be any freighter operations in that airport.

Having made the basic point of the need for better trained professionals in the area of international transport and logistics, we will briefly review one country, Chile.


Chile has a large number of Universi-ties, offering diverse undergraduate and postgraduate courses, but few offer topics related to logistics or transport (other than building or planning construction). Logis-tics is usually circumscribed to warehous-ing and consumer oriented Supply Chain Management. Both of Chile’s top universi-ties, Universidad de Chile and Universidad Catolica de Chile, do not offer any under-graduate courses that cover logistics or transport in the commercial sense.

Multimodal transport as a concept is rarely heard outside the shipping lines and freight forwarder community. No mul-timodal transport subject appears in the university programmes, not even in spe-cialised postgraduate studies in logistics.

Due to the short supply of logistics profes-sionals, logistics is seldom considered by a local company’s management. Nor is it in the public agenda. Though there is in-novation with regard to either marketing and packaging, or increased/improved production. SCM or Logistics Managers come from Trade Schools and seldom have any interest in or authority to implement strategic planning or major changes in the way a company handles its logistics.

One railroad executive complained that it took him years to convince the manage-ment of a large local mining corporation to switch part of its logistics to railroad, even with a clear cost advantage, due largely to the lack of interest in and under-standing of the advantages of this means of transport.

Another example is a freight forwarder ex-ecutive complaining of fresh produce ship-pers ignoring cool chain issues during air transport, even if they implemented strict

cool storage and quality programmes dur-ing production and processing.

The government fares no better. Offi-cials have little access to knowledge or expertise in international transport, so they usually make mistakes when plan-ning transport infrastructure to connect

or trade with other countries. A notorious example was the initial Santiago Interna-tional Airport project launched some years ago. The cargo handling facilities were the only ones not upgraded or expanded in the new plan. This was based on lim-ited research and statistics on projected slow growth of imports and exports (even though at the time of the project presenta-tion the import warehouses were running close to 100% capacity). Runways were not upgraded to the standard needed for the new cargo aircraft, resulting in both the Boeing 747-8F and Boeing 777F be-ing restricted in their maximum takeoff weight (MTOW) in some of the expected routes departing from Santiago.

This inward vision of logistics and trans-port has to change, especially for Chile, as more than 50% of its GDP comes from international trade and has to match the

increasing Free Trade Agreements that the country is signing. Chile’s main foodstuff export competitor, Peru, is closer to the end markets, so innovation in transport (be it in cost, different means of transport, smart regulations, IT, etc.), should be a priority.

The Chilean Association of Freight For-warding and Logistics (ALOG), has taken the first step towards solving this. It is implementing a diploma course on Freight Forwarding and International Transport, focused on building up the pro-fessional skills of members of the industry. This will also benefit government staff, who are expected to be invited to attend the courses.

But it should also attempt to increase the visibility of international logistics through written articles in Economic forums and related media. Decision makers in the private and public sectors must be made aware of the subject.

Hopefully the increase in visibility of this specific area of the economy through the training of more people and media publications will push other educational institutions to take note and teach inter-national logistics.

The long term objective should be for the government and management of private companies to understand the importance of international logistics, and therefore be better informed and make better decisions, for the benefit of the economy and well-being of the whole country and the region.

Philip Thiermann, Chile

Philip Thiermann

24

Personally

Mr Geoffrey Arend – FIATA Fellow in InterviewFIATA Review: Hi, Geoffrey. Thanks for taking some time to meet with us. Everyone here at FIATA Review is really excited about the chance to talk with you! First, we would like to know why you call yourself an airport kid? How did your childhood experiences make you aware of the beauty and his-torical value of the airfreight industry?

MY FATHER WAS A PILOT. My earliest recollection is of being up in the sky in our Stinson Station Wagon, flying at about 1,000 feet above our home in Toledo, Ohio, on a brilliant, sunny Saturday afternoon.My Dad made lazy circles in the sky as my brother Greg and I watched our Mom hang the wash on the backyard clothesline. Later, we lived in New York between JFK International Airport (then called Idlewild) and LaGuardia Airport, so we always saw airplanes coming in from familiar places and taking off to destina-tions yet to be discovered. As teenagers on weekends we would ride the bus to Idlewild and spend hours fishing in the bay near the airport and watching the airplanes.To me it did not matter what part of avia-tion allowed me access. I just wanted to be part of it.

FIATA Review: We read on your Face-book Page that FlyingTypers is respon-sible for saving the Marine Air Ter-minal at LaGuardia Airport. Tell us more about this 1986 endeavor please. FIATA Review: We know that you headed an extensive restoration project of the "Flight" mural in the terminal. What does this mural mean to you?

In 1976 I arrived at the Marine Air Ter-minal. Once upon a time, it was the only international airport for the entire east

coast of the United States (except Miami).It was home to the Pam American Clipper B314 Flying Boats – the 100-ton Boeings that opened scheduled service from the United States to London in 1940. The MAT, as the place is called, is not only the historical start of international aviation for New York – the greatest city in the world – it is also a stunningly beautiful example of art deco design.

Between 1940 and 1942, the WPA artist James Brooks painted a circular, 237’-around x 12’-high mural for the upper walls of the MAT’s rotunda. Titled simply Flight, at the time it was thought to have communist leanings.

The Port Authority of New York and New Jersey painted over Flight in drab gray wallpaint in 1952, at the height of the “Red Scare” in America, when the gov-ernment pursued artists and filmmakers accused of exploring communism.

I learned the mural was there and con-tacted James Brooks, who told me that he painted the work on Belgian Linen. After it was completed, he sealed Flight under a protective plastic coating.

Armed with the knowledge that the origi-nal artwork was still intact, we built an oaktag display in the MAT appealing for support in its restoration. Luckily, Dewitt Wallace of Reader’s Digest and the finan-cier Laurence Rockefeller saw our display, and the rest (as they say) is history.

Flight tells the story of aviation from Icarus to the Wright Brothers in evoca-tive detail. We saved Flight, successfully declaring the MAT an historic landmark, and the mural has been back in all its glory since 1986.

The fact that an air cargo publication could move the art world and all of avia-tion has always amazed me, and I honestly had not had that feeling of amazement duplicated until FIATA honored me for my time writing about forwarding.

FIATA Review: During your award ceremony you mentioned that you see yourself as someone charged by the air-lines to tell their story to the forwarders. What story would you tell a freight for-warder today? As a FIATA Fellow, I feel charged with telling the forwarder story to the world, and particularly to forwarder partners in a manner and sweep that has never been attempted.

For example, at Cargo Network Services (CNS) in Nashville on April 10, when United States and global airlines and their partners gather for a few days of network-ing, we will be headlining our issue with an interview with FIATA President Mr Huxiang Zhao and an interview with FIATA Board Member Mr Issa Baluch.

These stories are just the beginning of an aggressive campaign to bring FIATA front and center in FlyingTypers, and by exten-sion, the global cargo community. We believe that to be our responsibility as the thought leader in air cargo media world-wide, and it’s a responsibility we cherish and do not take lightly. As for the specific stories we’ll be telling… well, you’ll have to read FlyingTypers!

FIATA Review: The FIATA Logistics Academy is focusing on providing education and training opportunities to freight forwarders, especially the new generation. What is your advice


Mr Geoffrey Arend – FIATA Fellow in Interviewto those young people starting a career in the freight forwarding and logistics industry?

Anybody that tells you the past was won-derful and bemoans the future as not being as good has rocks in their head.

A quick look at the world today under-scores that where trade is active, everybody is lifted. We’ve learned from speaking to people in the freight forwarding com-munity that everyone starts somewhere. Start anywhere in air cargo, and you can move anywhere else – whether that’s later-ally, vertically, what have you. But start somewhere in air cargo – just do it. It’s one of a few industries that operates in an open playing field, where you can easily find where you fit best by simply moving around a bit. It’s not a chessboard – it’s not restrictive that way. It’s a beautiful place where technology is ever present but people still come first. It’s an expansive community of forward-thinking people, and it’s astonishing in its liberality. You can start in one position and end up some-where completely different. Young people would do well to take advantage of that. Approach this industry being open to new and advanced thinking, and to performing different roles – even if they’re outside what you perceive to be your comfort zone. You never know where you’ll eventually end up in freight forwarding and logistics and that’s a fantastic thing – what a great place to discover what you love!

FIATA Review: Our last question now. Why is understanding and knowing about the industry's history important for a freight forwarder today?

The best way we can move ahead and not stumble is by having some working

knowledge of the past. It’s the old adage about history being doomed to repeat itself.But it goes deeper than that.

Understanding history in cargo transpor-tation reveals the thoughts and rationales that put this transportation business in motion. It’s the famous James Baldwin line: “Know from whence you came. If you know whence you came, there are abso-lutely no limitations to where you can go.”In my mind, bringing the forwarder and airline people closer is critical to the suc-

cess of both entities. I think if a greater effort at collaboration had been the rule in the past, the air cargo business today would be much further advanced than it is right now.

It is critical that FIATA reach out as never before to its natural partners, including the airlines. Let’s learn from our history so we don’t make the same mistakes – let’s even make new mistakes! Learning from our history and our mistakes will seed innova-tion and grow our industry, and will prove fruitful for both forwarder and airline.

FIATA congratulates a well known delegate on his birthday. We wish him many more years of good health and happiness.

Mr Jens Roemer (Belgium) 55 on 18 June 2016Mr Roemer has been a longstanding FIATA Delegate since 1993. He be-came Chairman of the Working Group Sea and is a FIATA Vice President since 2013.

FIATA REVIEW NO. 112, MAY 201626

Here & There

Happy Birthday!

Obituary Bernhardt BünckIt is with deep regret that FIATA announces that Mr Bernhardt Bünck, born on 9th of May 1924 passed away on 16th of March 2016.Mr Bünck was a FIATA Delegate since 1981 and became FIATA President in 1985 for the normal two year term until 1987. He then became Immedi-ate Past President until 1989, when he was made Honorary Member of the Board of FIATA.Mr Bünck, originally from Germany, was a person who had a profound influ-ence on the freight forwarding industry of his country, as well as internation-ally. On behalf of all FIATA members, FIATA sends its condolences to his family and friends. His memory will remain with us, may he rest in peace.


Elena Primitzhofer joined FIATA in February this year as Congress Coordinator and in assistance in administration and in assistance to FIATA’s director general.Being of German nationality, she has spent 15 years in South Africa and has returned to Europe in 2010. Having acquired many years’ experience in Financial Controlling and Project Man-agement for various events, projects and

companies Elena is holding a Master’s Degree from the German University of Kassel (Diplom Ing-enieur) in Architecture and Town planning with a further degree in Project Management / Economics.Working many years in South Africa on a corporate level whilst privately aiding African local charities – also with hands on support – has taught her to deal with the unexpected and to find immediate out of the box solutions for any situation occurring.Being accustomed to analytical and diagnostic processes in business she also absolutely cherishes to operate in a team environment with people from multicultural background and is highly motivated working now with FIATA in the Freight Forwarding Industry.You will have the opportunity to meet Elena Primitzhofer at this year’s FIATA World Congress 2016 in Dublin/Ireland.

Agenda

FIATA REVIEWForthcoming Events

May 19—22 2016, Addis Ababa / Ethiopia

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