BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
The magazine of the British International Freight Association November 2024 BIFA link The shipping line ‘merry-go-round’
INSIDE: Inaugural charity golf • BIFA revives National Conference • ENS update • BIFA Awards fi nalists announced • Border control facility • EU postpones Entry/Exit System Issue: 411 Follow us @BIFA
Steve Parker’s Column
In search of superpowers I am writing this having just returned from my fi ve-year-old
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 (A company limited by guarantee. Registered in England: 00391973. VAT Registration: 216476363) Director General Steve Parker s.parker@bifa.org Member Policy & Compliance Director Robert Windsor r.windsor@bifa.org Member Support Director Spencer Stevenson s.stevenson@bifa.org Member Services Director Carl Hobbis c.hobbis@bifa.org Member Engagement Director Denise Hill d.hill@bifa.org International Relations Advisor Robert Keen r.keen@bifa.org Policy & Compliance Frontier Policy Manager Pawel Jarza p.jarza@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Adviser – Sustainable Logistics Mike Jones m.jones@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org Web site: www.bifa.org E-mail: bifa@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Igor Popovics, Robert Keen, Denise Hill, Mike Jones, Pawel Jarza, Natalie Pitts Note to media: If you wish to use items in this magazine that are older than one month, please contact the editorial co- ordinator to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.
granddaughter’s birthday party – where 28 little girls (dressed as Elsa or Anna) and hyped on cake and ice cream – were all ‘singing’ Let It Go from Disney’s Frozen at the top of their voice, whilst wishing (and pretending) they had magical superpowers. BIFA, and the Members it serves, could well use some superpowers as we grapple with the issues affecting our work across all modes. October produced new issues for everyone involved in air freight forwarding following the output from the TSA. Ocean freight teams are still coping with all the issues in the Middle East and a short-lived port strike in the USA. In the Customs arena, we are continuing to deal with requirements on sanitary and phytosanitary goods and Common User Charges, and lastly
our Members in Northern Ireland are continuing to deal with the changes that come their way. But we have had much good news. In regard to the TSA, we continue to work to get all the updates we can and post them on our website. The strike in the USA was over before it really got going, lasting just three days. We had an excellent meeting with our Members plus HMRC and Border Force in Northern Ireland, and lastly, we held our Business Leaders Forum with some great updates about the ocean freight mode, artificial intelligence within logistics, as well as looking at recruitment and retention in our sector. I opened the forum with industry updates, mostly supplied by Analytiqa, which confirmed a lot of the anecdotal feedback I had been getting, suggesting that business was improving, and investments in both hard assets and IT were strong, which all bodes well for the future. We were also engaged with CCSUK and an update meeting on the Advanced Information System (AIS) that has been produced for deliveries and collections in air freight, which is being rolled out at the moment. Nearly 200 people attended and much interest was shown in this development which can help move our industry forward. BIFAlink TV continued to develop as we released episodes on insurance, and implemented multi-channel output, making the content accessible via other platforms such as LinkedIn, as well on our YouTube channel where it was originally launched. Lastly, and in some ways the most exciting development, has seen ITN Business produce and release a programme about the logistics industry, in which BIFA had a significant role regarding the development and content. If you have not watched it, I urge you to do so. You can find it here: https://business.itn.co.uk/programmes/transforming-logistics-precision-and-purpose/ What will November bring? Our work continues and, for something different, at the end of the month BIFA is hosting the Working Group Sea from FIATA. This will be an opportunity for our ocean freight experts to meet with their counterparts from around the globe. And, of course, towards the end of the month, we will all be headed into our lofts or other storage areas to retrieve the paraphernalia associated with the festive holidays that are just around the corner, much to the delight of my five-year-old granddaughter who has already drafted her letter to Santa. Earlier this year, with all the supply chain disruptions, there were headlines about Christmas being cancelled. Thanks to the sterling work done by BIFA Members to address and overcome those disruptions, and keep supply chains moving, I’m pleased to report that those headlines were wide of the mark.
Director General
November 2024 | 3
www.bifa.org
BIFA News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business. Don't miss Ian's weekly news round up on BIFAlink TV, which can be seen on our You Tube channel.
Containership orderbook hits record TEU capacity
security, which helps address welfare and safety concerns for drivers. DP World has introduced a second weekly rail service operated by Freightliner connecting London Gateway and Southampton. It aims to strengthen the UK’s supply chain resilience while significantly reducing carbon emissions by cutting truck journeys, with a mid-week departure that complements the existing weekend service that began in 2022. Freightliner has introduced a new Tilbury2 to Manchester Trafford Park intermodal rail freight link, which was made possible by the “access charge discount” scheme, a Network Rail programme. This supports the creation of new connections and encourages the modal shift to rail, by providing a period of time where charges are waived to grow volumes and enable the service to become financially sustainable. ON THE QUAYSIDE October saw development consent for the £100 million Immingham Eastern Ro-Ro Terminal application for a new ro-ro facility comprising a new jetty with three berths, improved hard-standing, terminal buildings and an internal side bridge to cross existing port infrastructure. The port said the facility would be able to handle up to 660,000 units per year on ferries operated by Stena Line. DP World has announced a £1billion expansion, subject to planning approval and regulatory requirements, that will increase capacity at London Gateway’s port by building two new shipping berths. This will take the total to six berths able to receive the world’s largest containerships, as well as a second rail terminal to handle the expected increase in containerised trade.
ON THE OCEAN In container shipping,
large part of the newbuilds on order. It also reported that one of the carriers in the top ten still has two ships from 1982 in its fleet. Maersk named its latest dual- fuel methanol container vessel at the Port of Felixstowe in October, as part of the line’s efforts to deliver a greener, cleaner maritime sector by reducing harmful greenhouse gas emissions and investing in alternative fuels and technologies. The Loadstar reported that Gemini carriers, including Maersk and Hapag-Lloyd, are warning of an “operational meltdown” when the Suez
Canal reopens for shipping traffic, predicting weeks or even months of congestion as vessels clash for passage. ACROSS BORDERS The EU’s new Entry/Exit System (EES) will be delayed beyond the scheduled 10 November implementation date, it was announced on 10October. There was no indication of a new timeline for an initiative that has been causing major concerns about potential congestion and delays at UK border crossings, which would have a detrimental effect on trade flows. IN THE AIR Worries about a wider conflict airlines to suspend flights to the region or to avoid affected air space. A good summary of the airlines taking that decision has been provided by the American Journal of Transportation. in the Middle East have prompted international Amazon Air Cargo, the airline arm of the ecommerce retail giant, has begun advertising available capacity for ad hoc, charter, or blocked space services. Its cargo fleet has grown to more than 100 aircraft and now offers more than 250 daily flights, including those of partner airlines. OVERLAND The UK government has announced that 23 successful applicants will receive up to £4.5 million in government funding to enhance truck stops and working conditions for HGV drivers, whilst reducing congestion in town centres and roadside parking. Improvements will encompass enhanced dining facilities, changing rooms and rest areas, as well as improved
Alphaliner said that major carriers have driven the containership orderbook to a record TEU level as they modernise and expand their fleets both to meet the need for additional capacity as well as the emerging environmental regulations. The analyst has calculated that in terms of TEU capacity, the orderbook amounts to nearly 31 million TEU of newbuilds. Shipping Watch reported that major container lines still have hundreds of end-of-life ships in their fleets which, when scrapped, could swallow up a
With customs offices on both sides of the Channel, we offer a streamlined end-to-end service with a single instruction.
4 | November 2024
www.bifa.org
YOUR SUPPLY CHAIN SIMPLIFIED
www.boxtop.net
BIFA News
Inaugural charity golf event raises thousands for industry charity
6 | November 2024 forwarding community but also raised vital funds for a organised the event said: “We were thrilled with the turnout and generosity shown at this year’s Golf Day, our first for many years. The event not only brought together key members of the freight of 87 points, with the team from Irish Freight Solutions a close second. In addition to the main tournament, the event featured several mini challenges, including longest drive and nearest-the-pin competitions. These added excitement and further opportunities for participants to contribute to the fundraising efforts. Carl Hobbis, BIFA member services director, who A charity golf event in late September saw participants from 20 Member companies, come together for a day of friendly competition and charity fundraising BIFA’s fi rst charity golf event for over a decade, held at the prestigious Formby Hall Golf Resort and Spa, was a resounding success raising an impressive £3,100 for BIFA’s of fi cial charity partner, Transaid, a cause close to the hearts of many in the industry. The funds will go directly to supporting the work of Transaid, making a meaningful impact on the community in sub-Saharan Africa. BIFA congratulates the winning team from Logicall for its outstanding performance on the course. The Logicall team, consisting of Jordan Phillips, Jon Lilley, Brendan Beech and Paul Phillips, secured first place, on count- back, with an impressive score
The winning team
members collecting their trophy from Carl Hobbis
Dorian Rosca
ITAL Logistics
Stephen Hennessey, Hexagon Transport team, after a chip in from a bunker.
wonderful cause. Congratulations to our winners and a heartfelt ‘thank you’ to all 72 who participated and contributed for their time
and generosity." Following the success of this year’s event, BIFA will expand the number of golfing events it holds in 2025, continuing the
tradition of camaraderie, competition and charity. To register your interest for an event next year go to https://bifa.org/events/
www.bifa.org
BIFA News
Reminder to all Members – Membership Renewal 2025
BIFA revives National Conference During the Business Leaders Forum event last month, BIFA director general Steve Parker announced plans for a BIFA National Conference in May 2025. This two-day event will bring together BIFA Members from around the UK and will tackle a range of relevant issues affecting the industry. The first BIFA National Conference for 19 years, it will be held at the centrally located Warwick Conferences venue, The Slate, on Wednesday 14 and Thursday 15 May, and will include a variety of conference sessions, networking opportunities, a drinks reception and gala dinner. There will also be opportunities for sponsors and exhibitors to attend.
Now begins the renewal of BIFA Trading Membership for 2025. In early November you will receive a request for your BIFA Annual Member Company Declaration which will be sent electronically to all Members. This will be followed by your 2025 Membership Renewal Subscription Invoice (also electronically) in early January 2025. BIFA Annual Member Company Declarations In early November we will distribute the Company Declaration to all BIFA Members. This self-declaration is an important document which confirms to BIFA that you continue to meet the criteria for BIFA Membership. This document also allows you to inform BIFA of any changes to the category of your subscription to reflect your current set up. Please note: Company
Declarations must be returned no later than 16 December 2024. 2025 Membership Renewal Subscription Invoice Invoices will be issued to all Members electronically in early January for those who pay their subscription annually. For Members who pay by direct debit, invoices will be sent electronically 5-10 days prior to the direct debit being applied for in mid-January and mid- July each year. Please note: For those who pay their subscription annually, payment is required within 30 days of invoice date. Why not look to pay for your BIFA Membership via Direct Debit If you don’t already use this payment method, it is worth considering, as we allow you to spread your subscription over two equal payments each year,
which may help cashflow (50% in January and 50% in July). Should this be of interest to you, please contact Sarah Milton s.milton@bifa.org who will be able to set this up. Please note: the option to pay your 2025 subscription fee via direct debit will need to be arranged directly with Sarah Milton prior to the January renewal (no later than 16December 2024). Should you have any questions, or require any database updates, please contact Sarah Milton – BIFA Membership s.milton@bifa.org Don’t forget... it is important that you always let us know of any changes to key contacts, email addresses and location addresses etc. Thank you for your subscription, and we look forward to supporting you into 2025.
14-15 May 2025
To qualify for an earlybird discount on ticket prices, register your interest before 30 November by scanning the QR code and completing your details.
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £17.42 per kg
By sea – Hague Visby rules (2 SDR): £2.05 per kg £683.26 per package
BIFA STC: (2 SDR): £2.05 per kg
By road – CMR (8.33 SDR): £8.54 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 17 October 2024,
By air – Montreal Convention (22 SDR): £22/55 per kg
according to the IMF website, was 1.02489)
+44 (0) 1628 532613
macbeths.co.uk
November 2024 | 7
www.bifa.org
BIFA News
OBITUARY: Colin Joyce, Stansted Training Services
June 1946 – October 2024 Many employees of BIFA Members will remember attending training courses at BIFA delivered by the highly knowledgeable Colin Joyce. The secretariat team was saddened to hear from his family advising of his sudden passing last month. Colin assisted BIFA for many years in the areas of training and Customs policy through his involvement with the BIFA Training Working Group (now defunct) and the BIFA Customs Policy Group. He wrote and delivered training courses in: Freight forwarding, Customs procedures, aviation security, soft skills – customer service, train the trainer, etc. He wrote the original course material for the BTEC Intermediate Award in Multimodal International Freight
Procedures and BTEC Intermediate Award in Customs Export & Import Procedures – training courses that are still delivered to this day. In recognition of his service to BIFA and the industry, Colin was recognised with a Lifetime Achievement Award at the BIFA Freight Service Awards ceremony in January 2018. Industry contribution Ian Moran, EV Cargo, also sat on the Training Working Group and had the following words to say: “Colin must have trained countless people over the years and consequently made a significant contribution to the professional standards of our industry. “He was a good trainer and engaged well with those he was training and his knowledge of
the industry was exceptional. He was a positive character who looked forward and it was always a pleasant experience having a catch up with Colin. I would most certainly place Colin in the top ten people who have had a beneficial impact on our profession during the last 40 years.” Very informative Bob Vernon worked alongside Colin in the delivery of training courses and recalled: “His training programmes were easy to follow, easy to present, and very informative. Training materials were supplied to me neatly organised and held together with dozens of paperclips! “I accumulated enough elastic bands to make balls out of them bigger than tennis balls. He was never late for meetings and usually early. A very chatty and friendly man who always treated everyone with respect.” Sharon Hammond, BIFA events executive, first met Colin while employed by MSAS and shared her memories: “Colin had been employed by Walford Meadows before
various companies came together to form MSAS, at which time Colin decided to set up Stansted Training Services and began writing and delivering various freight and Customs-related training courses for many freight forwarders. “During my time at MSAS he delivered freight and Customs training, customer services, train-the-trainer and aviation security courses. When I joined BIFA in 1999, Colin was already delivering a number of one- day courses and then wrote the original programmes for the BTEC courses that we still deliver to this day. At this time I worked closely with Colin on course scheduling and assessment of learners. “Colin overcame profound deafness to run a successful training business and later in life underwent a cochlear implant and was active in supporting others as they prepared for and got to grips with their own implants. “He was also a part-time farmer, maintaining his parents’ farm for many years, on which he grew barley that he told me was sold for beer production.”
8 | November 2024
www.bifa.org
www.asm.org.uk admin@asm.org.uk
agency sector management
service desk asm (uk) ltd @asmukltd
With the move to CDS now complete, we have successfully supported nearly 500 organisations through the migration. Sequoia has already processed over 7 million CDS declarations and counting. We have also successfully helped more than 100 organisations in the transition to NCTS Phase 5. And by the time you read this, CHIEF will have processed its last ever customs declaration. We long ago lost count of how many millions of CHIEF declarations that Sequoia has handled.
.
With the requirement for safety & security declarations for imports from the EU just around the corner, our main focus will be on that development, as well as integrating with GVMS. But we are also very keen to develop other functionality close to the hearts of our users. If you have any views or ideas on how we can help you then we would love to hear from you.
Email us at roadmap@asm.org.uk.
Air Ocean Road Imports Exports ustoms declarations Worksheet automation Customs eTariff CFSP management Customs Warehousing Duty management Transit (NCTS) management Transit (CT) Guarantee management Import ETSF management CCS-UK electronic fallback Export DEP management Job costing and invoicing Air waybills and eAWB Bills of lading Barcoded cargo labels Consignment security declarations Collection and Delivery notes Consolidation management and Manifests eDocument management Archiving Limitless integration Limitless automation
innovate integrate automate sequoia
Policy & Compliance
Self Assessment: the evolution The following article is reproduced at the request of HMRC. It looks at how the development of Self Assessment brought advantages for users and how to go about the process today
F or many self-employed declare their tax liabilities. But Self Assessment has only been in place since 1996 and was created to streamline the tax collection process for those with any untaxed income who need to declare and pay tax on it. Back then, the online service we know today did not exist, so how did we get from zero to 97% of Self Assessment filers submitting their tax returns online? HMRC faces the same challenge every year – how do we get millions of people to file their tax returns and pay any tax owed by 31 January. workers, Self Assessment has always been the way they Simply, we created an online system for the digitally capable that allows people to self-serve to meet their tax obligations. The Self Assessment population is rising with more than 12 million people expected to file a return each year. About 5 to 6 million of those customers leave it until January to file their returns and this can cause delays both for HMRC and our customers. Going online The online service was launched in 2000 and, not daunted by the prospect of the ‘millennium bug’, 38,000 people submitted their Self Assessment tax return online. Those digital revolutionaries helped set the precedent that now sees more than 11 million people submitting their tax returns online. Encouragingly, almost 68,000 people filed their 2023-24 tax return online on 6 April 2024, the first day of the new tax year. The online service has evolved since 2000 and any new services or enhancements of existing services are made with the customer in mind, after systematic customer research. We want them to navigate the service with ease, get their tax right first time and support them
when they are stuck. Some of the customer-focused changes to filing a Self Assessment tax return on GOV.UK include: • Using pre-populated forms to save customers time inputting their details; • Allowing customers to tailor their tax return, so they only need to complete relevant parts; • In-built help functions with access to videos or guidance to support customers every step of the way. Self Assessment is a digital process on GOV.UK. You can set up your Government Gateway account, register for Self Assessment, complete and submit the Self Assessment forms at www.gov.uk/log-in-register-hmrc- online-services, and set up a payment plan to pay any tax owed at www.gov.uk/pay-self- assessment-tax-bill. HMRC offers a wide range of resources to help customers with their Self Assessment on GOV.UK and YouTube. We know customers are using these resources because there were 48 million page views on GOV.UK and 1.4 million YouTube
views during the most recent Self Assessment peak. • The most popular GOV.UK page was the Self Assessment checker tool (www.gov.uk/check-if-you- need-tax-return), which will help determine each year if you need to complete a tax return. • YouTube videos include how to register and how to stop Self Assessment. Continuous improvement We recognise that some customers may need extra support so there is a specialist dedicated service to help them. We continue to improve our services and are moving towards a better and more modern tax system. We will bring our customers with us on this journey, learning from their feedback, making improvements and innovating along the way, just like we always have done. As the Self Assessment population evolves, HMRC will continuously adapt to make sure we can support customers and help them get their tax right.
“ The Self Assessment population is rising with more than 12 million people expected to fi le a return each year
10 | November 2024
www.bifa.org
Industry Promotion
director, Bethany Windsor, explained, the tactic challenged people to reconsider their preconceptions about a career in logistics as they went about their daily lives. “We know from our research that young people, in particular, know little about careers in logistics, so we needed to shake up their thinking and make them re- evaluate what our sector has to offer,” she said. “Putting messages out on the streets, right under the noses of those we want to attract, was a bold move, but an opportunity we cannot afford to miss when the sector’s skills shortage represents a real opportunity for young people.” Using bold, eye-catching and futuristic designs, the AdVans were seen by almost 60,000 people during the three-day period, with research showing that consumers on the street spent 80% longer viewing the vans than they would traditional out-of-home advertising. Windsor added that, this is all part of the campaign’s strategy to be challenging and provoke discussions among its target audience.
The Generation Logistics campaign van in Nottingham
Generation Logistics takes to the streets
T he ground-breaking awareness campaign Generation Logistics has continued to challenge perceptions of the sector, by taking its message directly to thousands of people in another fi rst for the logistics sector. Using mobile AdVans – the first time that such a medium has been
used to promote roles within the sector – Generation Logistics’ messages about the opportunities available for those seeking a career in the industry were delivered directly to the campaign’s target audience in Leeds, Manchester and Nottingham over three days. As the campaign programme
For more information on Generation Logistics visit www.generationl ogistics.org
Delivering debt recovery & outsourced services to the freight, transport,
Business Support Services
Debt Recovery
Customer Care
Receivables Management
IT and Application Services
Software Solutions
controlaccount.com 01527 386 610
www.bifa.org
November 2024 | 11
Policy & Compliance
ENS update: another waiver extension
legal requirements, but also access to any IT systems that support lodging ENS, is usually very limited. This in turn means that the freight forwarder, who often already provides Customs clearance services, will be their first point of contact when it comes to any legal requirements. Freight forwarders and Customs may also consider combining the lodgement of a Customs declaration and an ENS into one operational procedure in order to streamline the end-to-end process. This would certainly also be a rational move in many cases. Legal requirements So, freight forwarders may have several reasons to put themselves in the role of an ENS filer and we understand that, but we also advise BIFA Members to make sure they understand the legal side of the process and the data requirements. In addition to that they need to plan their operations in such a way that it will be possible for them to meet all filing deadlines. Finally, they need know how to lodge an ENS and have access to the relevant systems. The Secretariat will in the meantime work with HMRC and other departments to ensure the requirement is well understood and communicated. We will also work with our EU partners on raising awareness and publishing further updates when more information becomes available.
BIFA welcomes news of the waiver extension as it had been concerned that not enough is being done to prepare the trading community for the likely legal implications of ENS
W e are now in November and anyone reading this article will know that the waiver for the requirement to lodge entry summary declarations (ENS) for goods imported from the EU has again been extended, this time until 31 January 2025. The delay also applies to the introduction of a reduced safety and security data set that was designed for this purpose. It also means that the Single Trade Window functionality, which is still being developed to allow traders to lodge ENS, will not be available until sometime nearer 31 January 2025. Deceptive appearance BIFA welcomes the news about the waiver extension as we felt the government had not done enough to prepare the trading community for what might seem like a relatively low impact requirement. But appearances can certainly be
deceptive in this case. We have published a number of technical articles about the ENS requirement over the last four months in which we have analysed various aspects of it. The legal obligation to lodge an ENS lies with the carrier, as the carrier is the entity controlling the active means of transport. This in effect means that freight forwarders are unlikely to get involved in the safety and security filing process for air or sea movements. The carriers here would be air and shipping lines that have established procedures and IT solutions to optimise the process. Freight forwarders are, however, more likely to act on the carrier’s behalf in the road freight environment and there may be good operational reasons for that. Most importantly, the majority of road carriers moving goods into and out of the UK are EU based. Consequently, their knowledge of UK
12 | November 2024
www.bifa.org
Automate Your Customs Processing
Descartes customs solutions help businesses make customs clearances easy, accessible,
TALK TO ONE OF OUR TEAM TODAY
Policy & Compliance
The shipping line ‘merry-go-round’
The changing pecking order among the world’s major shipping lines is resulting in a sign fi cant overhaul of their alliances, which will come into effect in February 2025
T he shipping lines of the world operate in a variety of ways. Most work on a combination of vessel-sharing agreements and alliances or, in the case of the very largest, offer standalone services. There is no doubt that the re-alignments announced in September 2024 are significant; however, there is a certain inevitability to the changes, given recent history and market developments. By nature, alliances and other forms of co- operation tend to be relatively fluid and short term with new alliances and vessel-sharing arrangements due to commence in February 2025.
In many ways these changes stem from MSC’s decision to end the 2M Alliance between itself and Maersk. Greater scrutiny The extent to which greater regulator interventions in the containerised shipping market in Europe and the USA have shaped them is unclear at this stage, but greater scrutiny must have been considered by the lines. Recently MSC has been significantly expanding capacity and now operates in excess of 850 vessels
14 | November 2024
www.bifa.org
Policy & Compliance
with more than 80 direct port calls. From MSC’s viewpoint, perhaps the highest risk agreement is with the Israeli carrier ZIM. The three- year agreement covers services from Asia to both the US East Coast and Gulf Coast trades. MSC schedules MSC’s published 2025 schedules feature transits via the Cape of Good Hope and the Suez Canal. The question is, does the relationship with an Israeli carrier jeopardise the latter? Recent reports indicate that the Houthis have ballistic missiles capable of sinking vessels, but they have chosen not to use them. In the USA, the Federal Maritime Commission (FMC) on 9 September gave approval to the Gemini Cooperation between Hapag-Lloyd and Maersk so that it can become operational. The regulator did advise that it would be monitoring how this alliance operates, but as yet no details have been announced regarding the services/operations being offered beyond a fairly generic statement that both carriers intend to align their services aiming for 90% schedule reliability. Ironically, the only alliance that will remain the same is the Ocean Alliance (including CMA CGM, COSCO, Evergreen and OOCL). Without doing anything it will climb to top spot in terms of fleet size and market share, positioning itself as the leading force in global trade. What will be the impact? In reality we do not know what the impact of these changes will be. Many observers monitor such developments but the impact on BIFA Members remains unclear. Maritime has a remarkable ability to deal with such changes and almost everything else it has to cope with. These changes should be regarded in the light of recent history including a pandemic, a long-lasting Red Sea crisis and a war in the Ukraine. Looking forward, the expense of de-carbonising the sector is looming large and these new arrangements will be in place when that process commences fully. To summarise, the new arrangements have resulted in the following scenario: • MSC with 853 vessels and a capacity of 6.1 million TEU (approximately 20% of global trade) is largely ‘going it alone’, although it does have vessel sharing arrangements with ZIM; • The Ocean Alliance of CMA CGM, COSCO, OOCL and Evergreen continues (the largest alliance); • The alliance comprising ONE, Yang Ming and HMM will become the Premier Alliance (the smallest alliance); • 2M is being dissolved and Maersk and Hapag-Lloyd have formed the Gemini Cooperation. Clearly the pecking order in the international container market has changed over the last few years. MSC’s expansion programme has seen it rise to be the world’s largest and most powerful carrier, and in this sector size does matter. A considerable achievement for a shipping line based in landlocked Switzerland.
“ Clearly the pecking order in the international container market has changed over the last few years. MSC’s expansion programme has seen it rise to be the world’s largest and most powerful carrier
with a capacity of 6 million TEU. This gives the carrier a near 20% global container market share. MSC has announced standalone East/West trade lanes comprising five trades with 34 loops. These services cover Asia to Northern Europe, the Mediterranean, North America, transpacific and transatlantic. New slot arrangements Amongst the headlines, the announcement by MSC of a potential weekly service via the Red Sea/Suez, in addition to the Cape of Good Hope routing, received relatively little attention. Whilst MSC feels confident of its capabilities westbound, probably due to lower traffic volumes eastbound, the carrier has formed new slot arrangements, a point that we will return to later in this article. Currently Hapag-Lloyd is part of the six-line THE Alliance but, when the 2M Alliance ends in 2025, three carriers – Ocean Network Express (ONE), Yang Ming and HMM – will re-launch as the Premier Alliance and enter a slot sharing agreement covered by a five- year agreement, while Hapag-Lloyd will join Maersk to form the Gemini Cooperation. In addition to its participation in the Premier Alliance, ONE announced improved global coverage
November 2024 | 15
www.bifa.org
BIFA Awards
consolidations, directly into the UK and Northern European hub ports to reduce shipping costs. Childs added: “We proposed that many Europe-destined products would be better served by a Euro Distribution Centre (EDC), and due to the geographical location of stores, combined with port locations and running costs, we recommended Poland.” To prove the EDC concept to the customer, the company worked closely with its own network for a trial period, receiving products into a Polish warehouse and using its internally developed APGL Insight supply chain software to control and manage the process. The client has now committed to its own warehousing lease in Poland, and Atlantic Paci fi c is helping to manage the operation. “The programme continues to develop,” said Childs. “Right now a major sportswear brand is hosting pop-up shops within the client’s stores, which has meant another layer of logistics services.” Navigating Brexit Childs observed: “Documents and controls have increased since Brexit, but initiatives like Regime 42 help the fl ow. “We believe that the challenges have affected truckers and niche European forwarders more, as they were not used to Customs controls,” he said, whereas “global forwarders like us have been handling Customs procedures to and from the rest of the world for years. “Our centralised Customs hub for Europe is working well. In fact, our development of European services has been led by Brexit and the need for Customs declarations; we were not focusing on it prior to that, and saw Brexit as an opportunity to develop and expand our European market share.” • As well as winning BIFA’s European Logistics Award, Atlantic Paci fi c Global Logistics was recently awarded the King’s Award For Enterprise for International Trade. This rounded off an excellent six months of accolades for Atlantic Paci fi c Group, which made the 2023 FEBE 100 fastest-growing companies list, along with the 2024 Fast Growth 50 and Growth Index 100 lists.
Christine Nichols – Atlantic Pacific Group director and co-founder
Simplifying a complex distribution project
The winner of the 2023 BIFA European Logistics Award was Atlantic Paci fi c, which has developed creative and fl exible solutions for today’s post-Brexit market
A tlantic Paci fi c Global services to support the store fi tting, installation and refurbishment of 75 shop fi ts across Europe, with hundreds of items shipped by road, ocean and air freight from numerous global suppliers. “The shipments were moved under DDP terms through a French entry point to simplify Customs formalities, which included registering the client for Regime 42 procedures to expedite clearance, while improving fi nancial Logistics provided logistics and supply chain control administration and cash fl ow,” explained director Kevan Childs. “Using this method avoids duties and taxes being paid immediately upon arrival.” Products were stored and picked as individual equipment sets for each outlet. In some cases, Atlantic Paci fi c coordinated the main kit to arrive simultaneously with individual products being expedited directly from overseas suppliers. The longer-term view was to establish a sustainable and cost- effective supply model for the
re fi tting and maintenance of over 400 stores on the continent. Much of the material was coming from Asia to the UK, where it was stored at off- port locations to avoid incurring storage and demurrage costs. Synchronised movements Atlantic Paci fi c also worked closely with the customer to arrange synchronised full-load container movements, along with buyer
Ashley Nichols – Atlantic Paci fi c Group chairman and co-founder
European Logistics Award
TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club's primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail and air. TT Club is renowned for its high-quality service, in- depth industry knowledge and enduring member loyalty, with a third of its entire membership having chosen to insure with the Club for 20 years or more.
16 | November 2024
www.bifa.org
Policy & Compliance
Construction starts on post-Brexit Irish Sea border control facility
C onstruction has of fi cially begun on a new border control post in Holyhead, North Wales, which will facilitate post-Brexit checks on goods arriving from the Republic of Ireland. Scheduled to become operational in 2025, this facility represents a next step in the UK’s post-Brexit strategy, four years after its official departure from the European Union. Earlier this year, checks on EU agrifood products commenced at English Channel ports, but goods from the Republic of Ireland remained exempt due to the absence of suitable facilities at key west coast ports. Holyhead, a principal port for Irish goods entering Great Britain, will now play a crucial role in addressing this gap. Notably, goods from Northern
“ Scheduled to become operational in 2025, this facility represents a next step in the UK’s post-Brexit strategy, four years after its official departure from the European Union
Ireland transported directly to Great Britain will not be subject to new checks or controls, following the UK government’s commitment to maintaining “unfettered access”. Lorries from the Republic of
Ireland will still undergo spot checks, but the integrity of the UK’s border controls is intended to be maintained without imposing unnecessary burdens on Northern Irish trade.
)"!&( !#) % %'$ # // #)"!&( !#(&% # // #)"!&( !# %'' #& #( !# % '#$ & $%&('##'! $&('#$( %'# $%'#!"( &#(" #)"!&( !#$( %'$ #' ! )"!&( !#! $ ! you can trust.
" #& % # ( #)"!&( !#(&% # " ( %'# %'!&#!("&('! # )"!&( !#"&#"% %'& !#%' # ( % # $ !#%#"' &% '# ' ("! ##( '#& #(" #$( %" !#& (" ("&# " ( # &(# ( #%'# ' &( ' #$"!&( !#!("&('
For further information contact: T: 0151 350 6666 E " '" !!!$( try.sgs.com/en-gb/ecustoms-services
)('&%$&#"!#&(# ' #("&# ( #%("&# (" #$"!&( !#! $ !#%' # $ # a 1-hour FREE training session . !##)(' &('!#%
November 2024 | 17
www.bifa.org
BIFA Awards
Driving international growth
Having transformed a UK customer’s supply chain model by
N oting that the Kerry Logistics UK team had been “a whirlwind of activity, effort and ingenuity” in response to the rapidly changing post-COVID-19 environment, strategic sales director Europe Emma Rowlands said: “We have worked closely with our UK customers, helping to establish logistics hubs in Asia which consolidate inventory from multiple countries, facilitating more ef fi cient distribution processes, crucially, reducing overall costs.” Indeed, the establishment of the Ningbo hub resulted in a 50% improvement in lead times and a 35% reduction in costs for a British client that was working to expand its presence in Asia, but struggling with a supply chain model whereby goods sourced in Asia were distributed via its UK warehouse. Kerry’s Ningbo facility – part of its extensive Asia network – instead consolidates inbound shipments from vendors in China and Asia for direct distribution via sea, rail and air to their fi nal destinations in the UK, Europe, Australia and the US. Among the challenges involved in setting up the operation was the establishment of standard operating procedures (SOPs) for the client’s diverse customer base. These SOPs varied in complexity improving stock visibility, shortening lead times and, setting up a consolidation hub in Ningbo, China, Kerry Logistics UK gained recognition in the form of the BIFA Supply Chain Management Award
Kerry is adding destinations to its network
and entailed precise instructions for each unique market, encompassing sourcing, local packaging and navigating Customs hurdles. The consolidation of inventory also presented challenges such as incorrect or late deliveries from suppliers, which had the potential to lead to shipping delays. However, through process management strategies, a round- the-clock operational presence and an expanded workforce, Kerry completed the project within a demanding timeframe. Systems Key to its success was Kerry’s Warehouse Management System (KWMS), which, in conjunction with its PO (purchase order) management tool, provided the client with complete visibility of stock. Rowlands outlined: “KWMS is our own system so we are always fl exible in designing around the client’s requirements. The more complex integration was with our VBO (Virtual Buying Of fi ce) for this client, due to the many levels of PO data for their different customers
across B2B, B2C and retail.” The integration of VBO allowed KWMS and the PO tool to communicate with each other, which improved ef fi ciency as it allowed the client to monitor, trace and track their stock through the supply chain with purchase orders. Using the same platform allowed all stock to be monitored as the systems were aligned, creating visibility in one place. “Digital integration is key, when and where it is integrated as a pragmatic system for the client that can communicate with other platforms seamlessly,” Rowlands said. “In this case, the KWMS and VBO link created in effect a one-stop solution instead of disparate teams having to upload and download data cross-system.” The ef fi ciency that digital integration brings automatically helps improve environmental performance across the supply chain, she pointed out, adding that Kerry is also introducing products like KTREKER to monitor sustainability and ESG goals for its clients. As demand continues to grow, more destinations have been added to the Kerry Air-Sea and Sea-Air solutions this year, with more ports in China and across Southeast Asia helping to accommodate increased volumes. Finally, the Kerry E Commerce (KEC) team is now established in EMEA and is assisting customers looking to develop their e- commerce business internationally.
“ KWMS is our own system so we are always fl exible in designing around the client’s requirements – Emma Rowlands, Kerry Logistics
Supply Chain Management
Descartes + BoxTop Technologies has been successfully delivering freight
management software solutions to international freight forwarders and logistics providers for over 25 years. Descartes + BoxTop Technologies puts you in control of a smarter, more efficient organisation and enables your team to free up time to focus on developing other areas of your business.
18 | November 2024
www.bifa.org
Policy & Compliance
“ The Commission is now considering a phased approach... not a big bang of all border crossing points at the same time
There was considerable speculation during early October that the previously announced EES implementation dates of 10 and 17 November were not achievable, particularly when France, Germany and the Netherlands all announced that their systems would not be ready EU postpones launch of its Entry/Exit System
approach, step by step.” As well as delaying the launch of EES, it seems the EU has watered down some of the checks, with the most recent communication stating that passengers will need to provide a facial scan or a fingerprint, whereas previously it was understood both would be required. Likely new dates The latest delay means many travellers will probably now undergo EES registration in the summer of 2025. This will be in tandem with the need to register for the EU’s ETIAS visa waiver scheme, which the EU says will be introduced “in the first half of 2025”. ETIAS will require visitors from 60 visa-free countries, including the UK, to obtain a new electronic travel authorisation to enter 30 European countries. The fee for ETIAS will be €7 for those aged 18 to 70 and it will be valid for three years.
A s previously advised to comprehensive reform to modernise checks at the EU’s external borders and promote information sharing, by forming a registry for short-stay travellers. On 10 October, an announcement came from the European Commission confirming that it had decided to delay the introduction of the Entry/Exit System. Members, the EU Entry/Exit System (EES) is a
In a meeting of EU interior ministers, Ylva Johansson, the Commissioner for Home Affairs, said the commission does not yet have a new timeline for the start of EES, but that it is now considering “a phased approach, not a big bang of all border crossing points at the same time. “It’s clear that we’re not going to be ready for the 10 November,” Johansson advised adding: “We will be going for a phased
November 2024 | 19
www.bifa.org
Representation
months in advance, but also the opportunity to debate current topics such as the stuff that was coming out of the TSA for the extra security or the extra data required for the US, Canada and Australia. Of course, we all want supply chains to be secure, we want them to be right, so we all want them to have the right data, but the speed at which the new rules were introduced made it difficult. Part of that problem is that the US government deals directly with the airlines. The airlines took that information and interpreted it as best they could, but consequently we ended up with a mishmash of The 61st edition of the FIATA World Congress took place in Panama City in late September and was attended by a delegation from BIFA. Steve Parker , BIFA director general, reports on the activities and sessions that took place BIFA attends FIATA World Congress “ It is interpretations by the time it reached us, the forwarders. Nonetheless it is a requirement, and if you follow it on the BIFA website we are doing our absolute best to keep our Members up to date with the latest information.
Now I’m a bit of a technophobe and that thought scared the hell out of me. For me technology is moving quickly already, but I sort of understood the point he was trying to make. As technology improves and ideas gather pace, new ways of working will come into play. In fact, those Members who attended our Business Leaders Forum in October heard a fascinating talk about AI and its potential. Encouraging youngsters The last thing, which I really like, is that FIATA hosted the final of the Young Logistics Professional competition at the congress before announcing the winner of the worldwide prize. I absolutely love this, the way that we engage our youngsters in their industry. As you may know, the winner of the BIFA Young Freight Forwarder of the Year award then gets put forward to the European category of the international award. This year the global award was won by Laura Cristin Egerer from Germany. It was great to see these youngsters at our global conference talking about what they are doing in the industry.
S o as many of our Members will know, BIFA is a member of FIATA, the global organisation set up for trade associations like our own, to represent us on the global stage. Every year it has a Congress and some of my colleagues and I have just returned from that. In fl uencing events BIFA sends a small delegation and we take an active part in what is going on because, in addition to holding various positions in the FIATA working groups, it is obviously important for our Members that we influence what goes on around the world. It is a week-long event so there is a lot that happens; there are lots of topics, lots of discussions planned
obviously important for our Members that we in fl uence what goes on around the world
Technological advances The other thing that caught my attention was a bit of talk about technology in our industry. One of the expert speakers used the phrase “there won’t be another time like this where technology moves as slowly as it does today”.
20 | November 2024
www.bifa.org
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28Made with FlippingBook Annual report maker