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 September 2024 BIFA link
Improving cargo safety INSIDE: Cutting ‘Horseshoe’ delays • Lower Thames Crossing • CDS goes live • YFN airfreight focus • BIFA Awards winner pro fi le • Know your STC
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Issue: 409
Steve Parker’s Column
The start of the football season B y the time you read this, the Premier League will be into its third or fourth game of the new season. As fans, many of us will be back to the highs and lows of supporting our team witnessing dodgy VAR decisions and referees who should have been to Specsavers. All of which begs the question – where did the summer go? That causes me to re fl ect on what BIFA has been doing and, of course, what is to come.
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.
A lot has happened during the summer. We have a new government that has a number of manifesto items that could impact on the work of BIFA Members, including re-negotiating the UK-EU agreement. CHIEF has finally been laid to rest and replaced by CDS. New regulatory requirements have continued, for example for SPS goods especially in Kent, and BIFA has been and is continuing to work with some of the ports
on their development to address the issues, with the addition of extra berths and introduction of new systems. Meanwhile, Heathrow Airport, which plans to demolish and rebuild the cargo terminal, will require sophisticated new IT and upgraded processes. So, the summer has been busy! What next? We now look forward to the next few months, when we will work with the new government in any way we can, representing our Members’ interests, and continue the work with key stakeholders such as the country’s gateways. Two examples of this area of our work are: • In mid-August, BIFA joined other industry bodies at a meeting with the Port of Felixstowe to discuss the introduction of the new container booking system (CBS) following concerns raised by users during the trial period; I will provide an update on this subject when available. • BIFA is participating in an event being held on October 24 by the CCS-UK User Group. ‘The Future of Cargo Collection and Delivery at Heathrow’ which will inform the industry about AIS, its recent upgrades and upcoming new features. You can read more about that on page 6 where you will find details of how to register to attend the event. We also have our Business Leaders Forum, on October 10, which is in place to help plan the strategy for our industry. There are still a few places available – go to https://bifa.org/event/business-leaders-forum-4-2/ to register and reserve your place. Meanwhile, our training team is finding that bookings are picking up for the rest of 2024. I am always encouraged by this. Many of you have expressed a desire to make our industry more professional, and training is one of the indicators that we are doing this. How are we sharing all this with our Members? BIFAlinkTV and BIFAlink remain our key communication tools. BIFAlinkTV is now two months old and the viewing figures continue to improve. However, we are aware that some Members restrict the use of YouTube, and our message gets stuck in a firewall, which of course we totally understand, so we are working to see if we can release this on other channels that will allow easier access. We also have all our regional members meetings; the dates and venues for your area can be found on our website (https://bifa.org/events/). These also continue to grow both in attendance and the diversity of speakers and content. Interestingly, we are finding some Members are travelling to be at meetings where they may not have an office, but do have business interests – all of which is fine by us. I will end by saying enjoy what is left of our summer. Christmas is just over 100 days away.
Director General
September 2024 | 3
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Industry News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
Stobart starts second daily Felixstowe train service
The explosion on a Yang Ming ship in the port of Ningbo- Zhoushan, which raised serious safety concerns, was a timely reminder of the need for due care and attention when shipping hazardous cargoes, and the need for robust safety procedures to be in place in regard to the loading and unloading of British Airways will suspend flights from London, UK, to Beijing, China, from October 26 until an unspecified date in November 2025, following the longer flight times and containers. IN THE AIR increased costs that airlines have faced since the Russian airspace ban. However, it intends to keep its schedule By mid-August, container shipping lines were already amid an earlier-than-usual peak season, while air cargo and last-mile carriers were preparing for heightened demand in the months ahead. In the global logistics mergers and acquisitions arena, Transport Intelligence reported that Europe accounted for the largest number of acquisitions (by target location) in July 2024, with 46% of all acquisitions recorded. North America accounted for 39% of under review. IN BUSINESS acquisitions, with 11 recorded in July. Transport Intelligence added that companies providing logistics and transportation services were the most popular targets, accounting for a combined 50% of total July acquisitions. Though not a robust deterrent to determined thieves, the humble container seal plays a central role in identifying location, method and often perpetrators of cargo theft. TT Club argues for greater emphasis on the device as part of a stronger security culture across the supply chain.
OVERLAND Stobart Ports has started a second daily train service between Felixstowe and Widnes in partnership with GB Railfreight. It will now operate an additional five trains weekly, which it claims will remove approximately 500 HGV movements from the UK’s road network each week. The RHA has been granted a Collective Proceedings Order (CPO) and given the go- ahead by the Competition Appeal Tribunal to seek compensation for more than 18,000 operators, after a price- fixing cartel of truck manufacturers was found to have broken competition rules.
ON THE QUAYSIDE As part of its plans to increase capacity on its Liverpool- Dublin route, CLdN is making a multimillion-pound investment in its Brocklebank terminal at the port of Liverpool, which will see infrastructure upgrades to improve the use of space and enhance the flow of cargo movement. Drewry’s latest Global Container Terminal Operators Annual Review and Forecast reports that while the total number of global terminal operators featuring in its league tables for 2023 remained unchanged at 21, the composition changed
significantly. The seven largest firms strengthened their position and now handle more than 40% of global port throughput, on an equity- adjusted basis. ON THE OCEAN Despite the belief that global shipping is concentrated, Sea-Intelligence said the industry’s level of concentration does not exceed the threshold for marginal concentration, adding that the market turmoil since 2020 has neither increased nor decreased these levels. container shipping analyst and consultant Lars Jensen said that shippers should expect ongoing volatility in container shipping freight markets through 2025. He added that even if operations resume through the Suez Canal, immediate relief from disruptions and soaring freight rates are not guaranteed. Speaking on the Freight Buyers’ Club podcast, Boxship newbuilding orders have burst back into life as the Red Sea crisis has caused freight and charter rates to reach levels not seen since the Covid-19 pandemic. Clarksons stated that 89 container vessels, amounting to 1.2 million teu, were commissioned in June and the first half of July, the highest run-rate since the pandemic-induced boom. Global shipping schedule reliability dipped in June, according to a new analysis by Sea-Intelligence, but kept in line with the trends seen so far in 2024, where global schedule reliability has largely been within 50%-55%.
With customs offices on both sides of the Channel, we offer a streamlined end-to-end service with a single instruction.
4 | September 2024
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Industry News
AIS digital booking cuts ‘Horseshoe’ truck delays
Truck queues at Heathrow Cargo Terminal’s handling agent facilities are still an issue at peak times. This ties up trucks and drivers, disrupts urgent deliveries and eats into pro fi t margins. A digital solution has existed for some time in the form of the Advance Information System (AIS) from CCS-UK. This additional module is free to CCS-UK users (there is a nominal charge for non CCS- UK subscribers), and can be accessed through an online portal or integrated into a freight agent’s or haulier’s own freight management system. Using AIS enables freight agents and their transport companies to pre-advise handling agents of cargo being delivered or picked up, down to individual house AWB level. Separately, through a different system provided by CCS-UK, they can also submit electronic consignment security declarations (e-CSD). When a delivery is pre- alerted via AIS, and advance information has been provided, all the necessary information such as driver details and ID, vehicle registration and air waybill, are sent to the handler digitally; most handlers then provide priority handling. Vehicle status updates Using AIS for exports and imports also triggers vehicle status updates direct to the web portal or the agent’s system, eliminating the need to obtain manual updates by phone or email. AIS also generates analytical reports of status updates for all individual truck movements. Where the
Business Leaders Forum – speaker announcement The fourth in the series of Business Leaders Forum events takes place next month – have you reserved your place yet? Led by Steve Parker, BIFA director general, the event will include a range of speakers on topics that are, or soon will be, affecting your day-to-day activities. The first speaker to be announced is Adnan Zaheer, CEO and founder of iCustoms.ai, whose talk entitled AI: The Future of Trade Compliance, will detail how AI is revolutionising trade compliance by streamlining complex processes and delivering significant time and cost savings. Taking place at ETC. Venues, Monument, in central London, this event is free to attend and open to senior personnel of all BIFA Member companies. However, spaces are strictly limited – register to attend by scanning the QR code.
Parker said: “AIS is good news for our airfreight forwarder Members. It’s already speeding up the handling process and reducing queues, and new features currently undergoing testing will also improve security by pre- verifying the drivers and vehicles being used to collect cargo. “When the Shoreham Road terminal area is re-developed, there will be no provision for trucks to park and wait for a handling slot. They will be required to have a pre- booked slot, and this will require a community-wide digital solution. My view is that everyone should get on board with AIS today, so they are accustomed to using it and fully ready for the new situation when it comes.” To book your place at ‘The Future of Cargo Collection and Delivery at Heathrow’, visit: https://mailchi.mp/pilotmarke ting.co.uk/the-future-of- cargo-collection-and-delivery -at-london-heathrow To arrange connection and a demo of AIS, contact Claudia Carley (claudia.carley@bt.com)
handler uses ABS5 or kiosks, all data is pre-populated into its system, reducing paperwork and keying on vehicle arrival and eradicating resultant errors. Future system Currently, using AIS is optional. But Heathrow Airport Limited’s (HAL) planned re- development of the ‘Horseshoe’ will eventually eliminate local truck parking almost completely. HAL’s plans call for the use of pre-booked ‘slots’: trucks will have to have such a slot in order to be serviced. An event being held soon by CCS-UK User Group – ‘The Future of Cargo Collection and Delivery at Heathrow’ – is being supported by BIFA and HAL. It will inform the industry about AIS, its recent upgrades and upcoming new features such as Airwaybill Watch, and how AIS will enable agents to continue using Heathrow’s handlers by pre-booking handling slots. Delegates will see the system in action, hear from those who are already successfully using it, and be able to ask questions of a panel of industry experts. BIFA Director General Steve
6 | September 2024
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Industry News
Lower Thames Crossing could be ready by 2032
Clari fi cation regarding DG Training in UK BIFA has been highlighting non-compliance with IATA dangerous goods training requirements and wants to ensure that its Members are aware of, and comply with, the need to submit the requisite number of dangerous goods training certi fi cates via the IATA portal. The Air Navigation (Dangerous Goods) Regulations places legal responsibility on the freight forwarder to ensure that staff receive initial and recurrent dangerous goods training in accordance with the requirements of the ICAO Technical Instructions. Once training has been completed, certificates must be uploaded to the IATA Customer Portal (https://portal.iata.org/s/lo gin/?language=en_US). If certificates are not uploaded, consignments of dangerous goods submitted for carriage will be refused. All training for individuals in the UK must be compliant regulations. When selecting a training organisation, you must ensure that any training meets the CAA criteria; this will then be accepted by IATA. with UK Civil Aviation Authority (UK CAA)
Denise Hill, Member engagement director, Member regional chair Scott Baker of Uniserve, and regional consultant Paul Newman were delighted to visit the Dartford crossing last month to witness its day-to- day operation and discuss the development of the Lower Thames Crossing project. Our thanks to Stephen Taylor, head of external affairs and the National Highways team who hosted the event and provided some insightful discussion and fascinating facts, some of which are: • The crossing was originally designed for 135,000 vehicle crossings per day but now regularly carries 150,000, with peaks at over 180,000. vehicles are freight related. • Less than 1% of journeys are local commuters, limiting the available workforce. • The south–north direction of • More than 60% of these travel is significantly busier due to the number of freight vehicles from the Channel ports. • The western tunnel must be used for oversize or dangerous cargo, and traffic is stopped every 15 minutes to allow these vehicles to be escorted. • Journey times are highly unpredictable – it is the
Scott Baker, Denise Hill and Paul Newman at the Dartford Crossing
A computer-generated image of the Lower Thames Crossing
will double capacity with a tunnel large enough to take three lanes of traffic in each direction. It is estimated that this crossing would add £40 billion to the UK economy, delivering significant benefits to cross- Channel trade and economic stability. The cost of current congestion for UK freight is believed to be in the region of £130 million per day. The preferred route would run from the M25 J29 east across to the A13 and on under the Thames to the A2/M2 junction. A Development Consent Order is being sought from government, with a decision expected in October 2024. Finance for the £9 billion project is yet to be agreed but, if successful, a planned opening would be in 2032.
worst performing part of the UK’s strategic network. The future solution is the 14.5-mile Lower Thames Crossing, which it is envisaged
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £17.70 per kg
By sea – Hague Visby rules (2 SDR): £2.08 per kg £694.22 per package
BIFA STC: (2 SDR): £2.08 per kg
By road – CMR (8.33 SDR): £8.67 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 15 August 2024,
By air – Montreal Convention (22 SDR): £22.91 per kg
according to the IMF website, was 1.04132)
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September 2024 | 7
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Communications
BIFAlink TV launch boosts Member bene fi ts BIFA’s YouTube channel sees subscribers double with launch of ‘daily dose’ of freight forwarding information “ The existing
J uly saw BIFA launch its new communications channel, BIFAlink TV, which as reported in July’s BIFAlink magazine provides a daily dose of information to BIFA Members. The aim is to update Members on issues that impact the day-to-day operation, plus raise awareness of the services that BIFA has available to ensure that they gain maximum benefit from their membership. The existing YouTube channel, used previously to host highlights from the BIFA Awards, has since doubled in subscribers and continues to grow. At the time of going to print, over 40 episodes had been released. Amongst the variety of topics discussed, episodes relating to policy and compliance have proved to be very popular, alongside our series of industry news updates entitled ‘What the Papers Say’. The ongoing project of cleaning up the BIFA database is progressing well and we encourage Members to support that by ensuring that their
YouTube channel, used previously to host highlights from the BIFA Awards, has since doubled in subscribers and continues to grow
details and contact preferences are maintained using the online Member Portal, accessible via BIFA.org. To ensure that communications remain relevant and useful, Members are welcome to contact the communications team by emailing bifacomms@bifa.org with any feedback and suggestions for future episodes. To access BIFALink TV, plus stay
up to date on all things BIFA, you will need to be signed up to the mailing list. If you are a current Member but do not receive any emails from us, please email BIFAcomms@bifa.org to be subscribed to our content. You will also automatically receive access to the Member Portal. Visit the BIFAlink TV YouTube channel by scanning the QR code on this page.
8 | September 2024
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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.
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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
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Policy & Compliance
With just over a month to go, it is important that Members who want to lodge safety and security declarations familiarise themselves with data requirements and start putting operational arrangements in place Entry summary declarations – technical and data requirements
A s 31 October is drawing ever nearer, BIFA is trying to ensure that Members do not lose sight of the last few remaining elements of the Border Target Operating Model (BTOM) still to be implemented. One of these is the requirement to lodge safety and security declarations, otherwise known as entry summary declarations (ENS), for goods imported from the EU and EEA countries. In the August issue, BIFAlink looked at ENS from a wider legal perspective. This time we take a closer look at the technical and data aspects. The legislation behind the requirement has already been explained in previous issues of BIFAlink but just to summarise, the legal requirement to lodge an ENS lies with the carrier whose very simplified definition says that it is the person who controls the active means of transport. The UK legislation relative to the ENS requirement is still largely based on the retained EU legislation and that legislation makes a number of operational simplifications – for instance by allowing for a pre-lodged Customs declaration to be used for safety and security purposes if certain conditions are met. Yet, HMRC is currently not planning on using any of the UCC facilitations which, in effect, means that traders need to submit full standalone declarations into Safety & Security GB (S&S GB). This can be done via an API connection with the system – a number of software suppliers and CSP already offer this functionality – but in the near future it will also
be possible to use the Single Trade Window (STW) to lodge an ENS. This functionality is currently being developed and tested, and BIFA Members may still be able to take part in this phase of the STW development. As for the data requirements, the below list presents the mandatory data elements. This represents the current data set and, although unlikely, it is not impossible for this data set to change before the implementation date. There are also conditional and optional data sets whose usage will very much depend on the circumstances and specifics of a movement. Members are advised to familiarise themselves with the data requirements thoroughly. We understand that HMRC is still working on additional guidance to provide definitive information on the data requirements with an intention to release for 31 October. Mandatory data elements: • Local Reference Number (LRN) • Country(ies) of routing codes • Person lodging the summary declaration • Mode of transport at the border • Identity of means of transport crossing the border • First place of arrival • Date and time of arrival at first place of arrival • Place of loading • Consignor • Consignee
• Seal number • Transport document number • Transport charges method of payment • Declaration date and time. It is also worth adding that multiple consignments can go on a single ENS. Up to 999 items, consignee and consignor details can be declared, which is an important feature for groupage operators. Submission timeframes There is obviously the question of when to lodge an ENS; the time limits are as follows: • Maritime containerised cargo: at least 24 hours before loading at the port of departure • Maritime bulk or break-bulk cargo: at least four hours before arrival • Roll on roll off (RoRo) — accompanied freight: at least two hours before arrival of the ferry operator • RoRo — unaccompanied freight: at least two hours before arrival of the ferry operator • Shortsea journeys: at least two
“ We understand that HMRC is still working on additional guidance to provide de fi nitive information on the data requirements with an intention to release for 31 October
• Place of unloading • Goods description • Types of packages • Number of packages • Goods item number • Gross mass
10 | September 2024
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Policy & Compliance
I ndustry guidance is that the BIFA Standard Trading Conditions (STC) should always be referenced on the back of your bill of lading (BL) and provided to your customers. They can be sent via email, or listed on your website and referred to on your company documentation, which will include quotes, credit applications and invoices, etc. There is a move towards positive incorporation of terms and the Association strongly emphasises that Members should always ensure that their customers agree to them in writing. It is common for an insurance company to have an expectation that you have properly limited your liability. It will often want to see and approve terms and conditions under which you are trading. Some types of insurance are underwritten based on how you are limiting your liability. The digital environment Electronic Bills of Lading (eBL) are becoming more and more common. There are several benefits, such as reduced costs, increased efficiency and improved security. However, such digital documents bring with them some additional insurance questions. For example, how are your terms and conditions provided to all parties involved and how do they accept those terms and conditions in an electronic environment? Has your insurance company approved of your eBL? Considering that the shipping industry is one of the most targeted by cyber criminals, do you have a cyber insurance policy in place to help you recover in the event of a cyberattack? It is important to work with your insurance company as you move from paper BL to eBL, in order to make sure that you remain in compliance with any requirements the insurer has regarding BL under your policies. For example, there is a possibility that the insurer may have to add eBL to its policy wording. As we work towards a new and more streamlined environment, it is important to remember to include your insurance provider in the conversation. It could make a difficult situation a little easier if everyone is working together from the start. BIFA would like to thank FIATA for providing the information on which this article is based. Insurance considerations when issuing a bill of lading When a BIFA Member issues a Bill of Lading, it is taking on a liability as de fi ned in Clause 26(A) of the BIFA STC
hours before arrival • Short-haul fl ights — less than four hours’ duration: at least at the time of actual take-off • Long-haul fl ights: at least four hours before arrival • Rail and inland waterways : at least two hours before arrival • Channel Tunnel: at least one hour before arrival at the Eurotunnel terminal by the haulier • Road traf fi c: at least one hour before arrival. Source: www.gov.uk/ guidance/making-an-entry- summary-declaration As pragmatic as the time limits are, it is still very important to ensure that operational procedures take them into account as otherwise traders may experience delays and potential financial consequences. When discussing the practicalities of lodging ENS, it is also worth noting that at the time of writing this article it is still unclear whether an ENS reference will need to be declared in the Goods Vehicle Movement System (GVMS). This again may have an operational impact on moving
goods across the border; the Secretariat will monitor this and advise Members accordingly. With just over a month to go, it is important that Members who want to lodge safety and security declarations familiarise themselves with data requirements and start putting operational arrangements in place. For those interested, more information can be found by scanning the QR codes or following the links below:
www.gov.uk/gui dance/safety- and-security-re quirements-on- imports-and-ex ports www.gov.uk/gui dance/making- an-entry-summ ary-declaration www.gov.uk/gov ernment/public ations/the- border-target-o perating- model-august- 2023
September 2024 | 11
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Policy & Compliance
consultation. The questionnaire was designed to research areas such as streamlining Customs declarations and the technology used to submit Customs declarations. The consultation clearly indicated a need for change, which Members felt very strongly about. Based on the response, it was clear that traders wanted to make optional, or completely remove, the completion of certain information related to transportation, goods identification, Customs offices, and information related to the parties involved in the supply chain. As a result, the completion of 10 data elements should be reviewed, and the completion of some or all of them could potentially be omitted. Furthermore, HMRC learned that traders require greater flexibility when completing declarations at the header and item levels. The second part of the results paper discovered various concerns related to technology use. Respondents indicated that one of the most significant issues for SMEs was related to the purchase and maintenance cost of IT solutions needed to access various government services. A potential fix might be a technological solution that offers the ability to interact with multiple government systems. Single Trade Window Stemming from the above comment of “interacting with multiple government systems”, there is one system development that is gradually gaining momentum: the Single Trade Window (STW). From the information we currently have, our understanding is that CDS is an important element of the STW framework, which will be used as an input channel to feed information into the database and also process the declarations by extracting required information from relevant sources linked to the STW. It is worth noting that due to a number of factors, such as the change in government, annual budget limitations, and the complex nature of the system development process, it will be a long journey before we see the anticipated system solutions perform at their full potential.
The newly introduced Customs Declaration Service is an important element of the Single Trade Window framework – but don’t expect everything to run smoothly in its early stages CDS is Live: Is it the end or just the beginning?
O n 4 July 2024, an historic moment in UK Customs dealings was reached. The long-standing Customs Handling of Import and Export Freight (CHIEF) system was replaced by the new Customs Declaration Service (CDS). What does it mean for the users? Following a challenging transition period, is it fully ready for use? As the above introduction suggests, an old system was replaced by a new service which is a modern IT solution that can offer more than meets the eye. CDS enhancements However, the saying ‘Rome wasn’t built in a day’ applies to CDS too. It took around 10 years to bring CHIEF to the operational level we knew before its decommissioning. Considering the evolution of IT technologies since the development of CHIEF, the enhancement of CDS is likely to take less time. So, what do we know about the future plans and what system users would like to have?
The first significant CDS feature was identified during the CDS import migration period, when the trade community learned that pre- lodged import entries could not be amended and resubmitted when rejected on arrival in the UK. As a result, traders had to cancel and submit a new declaration to clear the goods. BIFA contacted its Members with a survey to measure the impact of this CDS feature and the outcome was presented to HMRC. Members’ comments were taken onboard, and a change request was submitted to relevant departments within HMRC and government to explore and develop system changes that will permit the resubmission of amended entries. At the moment, it is unclear whether amendments will be permitted for any data elements or only for specific ones - such as those related to the method of payment instructions. BIFA will update Members as soon as information becomes available. In June 2023, HMRC invited traders to participate in ‘The Future of Customs Declarations’
“ ... it will be a long journey before we see the anticipated system solutions perform at their full potential
12 | September 2024
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Policy & Compliance
Improving cargo safety Increasing concerns about cargo safety in the international supply chain were addressed by BIFA in a recent Member webinar. Robert Windsor , Member policy & compliance director, reviews the lessons learned “ It is estimated Robert Windsor Mike Yarwood
I n an insightful webinar hosted by BIFA in July, Mike Yarwood, MD loss prevention at the TT Club, looked at three linked aspects, where a greater understanding will promote higher safety. The three strands were: adherence to the Code of Practice for Packing Cargo Transport Units (CTU Code); ensuring compliance with the need to supply an accurate Veri fi ed Gross Mass (VGM); and lastly, the International Maritime Dangerous Goods Regulations (IMDG). The webinar looked at these requirements and the importance of applying them relative to all cargoes. One theme that is evident, is that not enough questions are being asked at the booking stage about the nature of the cargo being shipped. The writer started his freight forwarding career shipping mainly industrial products and the presumption then was that all goods were hazardous until shippers could demonstrate otherwise.
that there is one serious fire on board a container vessel every month
BIFA STC Clauses 14 and 15 of the BIFA Standard Trading Conditions (STC) are specific on this point. Clause 15 covers goods of a “dangerous or damaging nature”, highlighting that the shipper should issue written
14 | September 2024
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Policy & Compliance
1. Charcoal/carbon 2. Calcium Hypochlorite 3. Lithium-ion batteries 4. Cotton and wool 5. Fishmeal and krill 6. Seed cake.
Spill or leak risks: these commodities can present a risk if not packed/prepared properly or the packaging is damaged. Spills or leaks from these cargoes can damage the health of people cleaning up a spillage and the environment. The study has shown six commodities that pose a particular risk: 1. Hides and skins (particularly not correctly tanned/prepared) 2. Wine 3. Bitumen 4. Cocoa butter 5. Waste recycled engines and engine parts etc, particularly where oil is still present 6. Vegetable and other oils, particularly when packed in flexitanks. Risks due to incorrect stowage: certain commodities, due to their shape, size and weight, cause difficulties. Very often incorrect loading of the container will result in onshore accidents. The types of identified goods were: 1. Logs and timber 2. Steel coils 3. Marble and granite. It is estimated that there is one serious fire on board a container vessel every month, such incidents can lead to the loss of a vessel or, worse still, loss of life. Ensuring safety at sea is everyone’s responsibility; sometimes these standards lapse leading to dangerous incidents. Breaches of the regulations, as demonstrated by the MSC Flaminia incident (July 2012), can lead to litigation, severe penalties and fines. The other non-financial consideration is reputational damage which can have consequences even greater than the previously mentioned punishments. Resources
Damaged cargo on MSC Flaminia in 2012
instructions confirming the nature of the goods that are then accepted in writing by the BIFA Member. This Clause also confers the right of the BIFA Member to dispose, remove or otherwise deal with such goods at the customer’s expense, should the company determine it necessary and the latter be unable and/or unwilling to do so. It is important to read Clause 15 in conjunction with Clause 18, by which the customer indemnifies the Member against all penalties, claims, damages, costs and expenses whatsoever. Collective responsibility Ensuring supply chain safety is everybody’s responsibility and the best approach is collaborative. Whilst certain products are clearly hazardous, it is not as clear in all cases that the goods need special handling. Whilst it is important to identify all hazardous materials and ensure that they are properly packed, documented and handled, recent work has identified 15 products that are less obvious but cause concern. These can be divided up into three categories: Reactive Hazards: these are cargoes that can catch fire and cause considerable damage and casualties under certain conditions. Usually, these goods are subject to IMDG regulations. Items identified are:
BIFA Members can access a recording of the July webinar ‘Safety in the Maritime Containerised World’ by scanning the QR code. The TT Club issues regular newsletters and publications which can be viewed at www.ttclub.com/news-and- resources/publications/. One
BIFA webinar recording
publication of particular interest should be Book it Right and Pack it Tight, which can be downloaded by scanning the QR code. The BIFA Standard Trading Conditions, and guidance on their use, can be downloaded from https://bifa.org/information-guidance/trading- conditions/bifa-standard-trading-conditions-2021/.
Book it Right and Pack it Tight,
September 2024 | 15
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BIFA Awards
In last month’s issue of BIFAlink we took a closer look at the awards in the Modal and Specialist categories, this month it is the General and Individual categories that we focus on BIFA Awards: The categories – part 2
The Young Freight Forwarder Award was established to recognise an individual with the drive and ambition to flourish in the international freight industry. Entrants must be under the age of 32, employed by a BIFA Member and have a minimum of two years’ experience across relevant disciplines. The winner of the prestigious Young Freight Forwarder Award will be nominated by BIFA to represent the UK in the FIATA/TT Club Young Logistics Professional Award competition next year. Closing date for submission of entries is 2 October 2024 with the finalists being announced by the beginning of November. Go to https://awards.bifa.org/how-to- enter/ to download your entry forms today. What’s in it for me? We know that you are busy, and an award-winning entry takes time and planning, so what are the benefits of putting your effort into an entry? Team building – get everyone together to think about your achievements over the past year and suggest case studies for your entries. A chance to step back and review your processes – taking time to plan your entry means reviewing what you are doing now and could lead to ideas for improvement. Enjoy a great day out – Reward your team and entertain your customers at the BIFA Awards ceremony. Stay tuned for the announcement of who our celebrity host will be! Publicity – Whether you are a finalist or a winner, the publicity does not end on Awards day. BIFA will continue to promote the awards throughout the year across trade publications, press releases and social media. Finalists will receive a digital logo to add to email signatures, etc, and a framed certificate for display in the office. Industry journalists will be present at the ceremony to see the winners announced in January. Make sure that you make the most of your own publicity channels to promote your achievement.
T he BIFA Freight Service with submissions invited from all BIFA trading Members to the 11 award categories. Nine of the categories are for businesses while two are designed to recognise those individuals making an impact in the industry. Whatever your company size and specialism, there is a category for you. GENERAL CATEGORIES Project Forwarding – sponsored by Macbeth Insurance Brokers The successful handling of a major project shipment requires much planning and a multi-disciplinary team. In this category BIFA invites case studies from Members that have completed an out-of-gauge project or co-ordinated a complex Awards 2024 competition opened for entries in June movement that has reached a conclusion in the past 12 months. Specialist Services – sponsored by Descartes + Thyme IT The services offered by a modern freight forwarder extend far beyond the provision of basic transportation and documentation. This category is for value-added services that enhance the customer experience enabling them to concentrate on their core business. Such services need not be modal specific and could include warehousing, pick and pack, technology service, air or shipping line agency, or express services. Staff Development – sponsored by Albacore Systems BIFA Members, whatever their size, need comprehensive training programmes to keep abreast of regular changes in regulations, industry practices and general business matters. In this category the judges want to understand how
Albacore IT for Business
OIA Global celebrate at the ceremony, January 2024
you encourage and develop all personnel to ‘be their best’ and contribute to the success and direction of your business. Supply Chain Management – sponsored by Descartes + Boxtop Technologies Have you worked with a customer to analyse its existing procurement procedures and provided a customer-focused, innovative solution enabling a more efficient and cost-effective management of that supply chain? If the answer is ‘yes’, then this is the category for you. INDIVIDUAL CATEGORIES Apprentice of the Year – sponsored by Menzies LLP BIFA encourages Members to employ apprentices to ensure the industry is well positioned to meet future requirements. In this category, BIFA Members are invited to nominate outstanding individuals to showcase the difference the named apprentice has made to their organisation. Young Freight Forwarder of the Year – sponsored by Virgin Atlantic Cargo
“ Whatever your company size and specialism, there is a category for you
Scan the QR code to visit https://awards. bifa.org/
16 | September 2024
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Industry Promotion
Preparing for the future As Members know, BIFA is passionate about apprenticeships and how they can be a great method of growing and diversifying your organisation. BIFA is always pleased to hear success stories of how apprentices have thrived in their careers. One example of this is the celebration of apprentices at DHL who have recently completed the International Freight Forwarding Specialist standard. If you are looking to hire apprentices into your business, you can check out our BIFAlink TV mini-series on YouTube which walks you through the process of apprentice recruitment. In this three-part series, Carl Hobbis, member services director, shares advice based on the first- hand experience gained from welcoming BIFA’s first apprentice in 2022. Additional resources available on our website will help to navigate the perceived red tape around recruiting apprentices – scan the QR code to visit the website.
Community engagement
Apprenticeships
Sparking an interest Establishing relationships with local schools and colleges can open up a pool of future talent for our industry DHL apprentices celebrate with a graduation-style ceremony
A s the new school year their next steps – a career in logistics could be the best move they will make. Establishing relationships with local schools and colleges and participating in their career-themed activities can help begins, students in years 10 and 11 will be contemplating
keep logistics front of mind for students, whilst also opening up a pool of future talent for our industry. BIFA is here to help Members foster those connections using the industry promotion section of our website, where our helpful tools are readily available – scan the QR code on this page to download the guide.
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September 2024 | 17
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BIFA Awards
Leach added: “It involved a lot of hours. We worked around the clock.” Hemisphere director Louis Perrin pointed out that Morgan, who is based in Ipswich, travelled to Avonmouth regularly in order to manage the project in person. “We are very hands-on with project management,” Perrin said. “We believe it is important to be present. You can learn so much that way, and you can see problems arising and be there to deal with them on the spot without delay. Having project managers on site makes Hemisphere different to other companies. It strengthens communication with our suppliers and customers.” Other than the shipping line complication, the main challenges involved in the project were high winds at installation sites, extra foundation works and complications around installing pylons in protected areas – for example, those that were home to nesting wildlife. “We had to swap or cancel our plans at the last minute sometimes,” Morgan said. “We had to be dynamic and quick-thinking.” Port-centric Currently, Leach said Hemisphere has a variety of work including importing electric buses, machinery and cars valued at over US$20 million. The company is also in the process of building a new 245,000 sq ft warehouse at Great Blakenham near Felixstowe. This modern facility will provide 3PL ful fi lment services, including for the rapidly growing e- commerce market. It will have 35,000 racked pallet locations and 8,000 bulk pallet locations, a state- of-the-art warehouse management system and automated handling equipment. The warehouse will be carbon neutral, with any extra electricity from its solar panels going back to the grid in the summer. Its location near the port of Felixstowe reduces transport miles, journey time, cost and CO 2 emissions. “Growing our port-centric infrastructure is part of our core strategy: we want to be our customers’ total logistics provider for all their logistics and supply chain needs, and have a positive impact on their business,” Perrin said.
The project involved four breakbulk vessels’ worth of cargo
Hemisphere handles Hinkley power challenge
Juggling the requirements of suppliers, clients, port and shipping lines, Hemisphere Freight Services played a vital role in the UK National Grid’s fl agship Hinkley Connection Project – and claimed BIFA’s Project Forwarding Award into the bargain
T he three-year Hinkley Connection Project, completed in 2023, saw Hemisphere transport 116 brand new world- fi rst ‘T-pylons’ to their fi nal installation sites along a 57km route between Bridgewater, Somerset, and Seabank near Avonmonth. Four breakbulk vessels’ worth of cargo, totalling 673 pieces with a combined weight of 580,000 kg and overall volume of 26,200 cu m, had to be discharged, stored and transported to sites across the region. “We put in a lot of time, energy and conversations to fi nd solutions that would work for everybody,” said project logistics specialist Daniel Morgan. “It is important to get in front of people – to travel, have in-person meetings, and bring suppliers and customers together.” A clear example of the importance of this approach occurred when the shipping line wanted two vessels to arrive at Avonmouth simultaneously –
something the port was unable to handle. Morgan recalled: “It was frantic. Detention rates can be tens of thousands of dollars per day so we had to adjust the plan with the port and the vessel. We were there on site to liaise between the stevedores and the captain. In the end we unloaded the two vessels back to back.” Projects team manager Dan
Dan Leach (left) and Dan Morgan, Hemisphere Freight Service
In 2021 Peter Lole joined forces with Macbeth Insurance Brokers and we are extremely proud to continue our association within this sector under the Macbeth name. Whether your business specialises in freight by sea, air, road or Project Forwarding Award
rail, or handles specific goods, we can provide advice on applicable trading conditions and contractual obligations.
18 | September 2024
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