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 October 2024 BIFA link
How to ensure you are protected by BIFA STC
INSIDE: Business Leaders Forum • ENS – The fi nal call • Front End Credibility checks • Austria adopts e-CMR Protocol • Recycling and waste rules • BIFA awards ceremony host
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Issue: 410
Steve Parker’s Column
To insure or not to insure? – that is the question
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.
D uring the 50 years I have been in this industry, whether that was with a commercial freight forwarder or as the Director General of BIFA, one of the things that has surprised me is the amount of freight that moves globally without insurance. The percentage of freight is a point for debate, but estimates suggest 70-80% (on some routes it could be as high as 95%). Of course, I am aware that many of the major companies take a decision not to insure based on the cost being more than the risk, which I fully understand. However, our inbox at BIFA is full with emails from Members where something untoward has happened to a consignment and the ensuing issues cause lots of work and often cost. As I read the messages and empathise with the plight of the senders, I think to myself – if only it was insured.
I think there is a perception amongst BIFA Members that arranging insurance on individual shipments for their customer is cumbersome and time consuming, with wording that is not always the easiest to understand. At BIFA we are trying to help our Members understand the insurance industry and we have embarked on a series on our BIFAlink TV channel where insurance brokers/intermediaries have picked various topics and recorded information for our Members to use. BIFA stands ready to help all the parties involved to explain and streamline the system, being fully aware that if we can drive up the use of insurance everyone benefits. The trader gets the cover it needs, our Member has the comfort of knowing that in the event of any issues the goods are insured, and the insurance industry has more business. I am not totally naive on this topic; I realise I won’t have been the first person to look at this and that this is a global issue, I just wonder that with the advent of more sophisticated IT whether now is the time to review and streamline the process. What do you think? Maybe the readers of this article would like to join me in this quest – after all, wouldn’t it be great if in the future we can say 70-80% of global freight moves with insurance. Speed dating From time to time, I am contacted with requests from companies involved in mergers and acquisitions, and I sometimes find myself putting two companies together. These have in the main been small enterprises trying to make a living, but the news in September regarding DSV and Schenker is a different kettle of fish Both are Members of BIFA, and we will watch with interest as this integration develops. Business Leaders Forum I have recorded a number of BIFAlink TV episodes on our upcoming Business Leaders Forum and would just like to remind Members that this will take place on 10 October in London. We have increased the number of places to allow for demand, so if you haven’t yet registered to attend you can still do so, you will be most welcome. More information on the topics to be covered and the speakers that we have lined up can be found on page 7 of this issue of BIFAlink . Windsor Framework delay As this issue of BIFAlink went to press, HMRC announced that the implementation of new arrangements for the movement of freight and parcels between Great Britain and Northern Ireland under the Windsor Framework would be delayed until March 2025. BIFA welcomes the delay and remains ready to support Members as they continue to prepare to meet the new requirements in 2025.
Director General
October 2024 | 3
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Industry News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
Network Rail offers track access discounts
container line operators topped 20% in the second quarter of 2024, the highest since the COVID-19 pandemic, as the tonnage overhang was absorbed by the Red Sea crisis. Carriers with strong spot exposure to Far East exports performed best in the latest quarter. China State Shipbuilding Corporation (CSSC) has revealed a design it is developing that will increase a containership’s capacity to 27,500 teu. Finnlines has started a new direct weekly ro-ro shipping service connecting the ports of Helsinki and Kotka with Sheerness, which also offers onward connections to Belgium and Spain. According to Bloomberg Intelligence, overcapacity, high costs and uncertain demand shape an alarming 2025 container-shipping outlook. The offsetting 300% increase in freight rates over recent months — driven by Houthi rebels’ Red Sea attacks — may not last long as the industry responds. IN THE AIR Air cargo looks set to continue its precedent-setting volume growth, driven by booming e-commerce, and to have a bright long-term future despite a looming capacity crunch, according to Ryan Keyrouse, co-founder and chief executive of the Rotate consultancy, speaking at the EU Cross-Border E-commerce Forum, held in Liege, Belgium, In mid-September, DSV announced its biggest transaction to date after signing an agreement to acquire Schenker from Deutsche Bahn for EUR14.3billion, claiming that the acquisition will strengthen DSV’s global network, expertise and competitiveness. in September. IN BUSINESS
OVERLAND Train operators have been offered the opportunity to gain discounts on their track access charges by Network Rail in a bid to encourage new business to the railway, particularly freight. The relevant charges would be waived in full for six months whilst new traffic is being established. Freightliner has launched its ECO90 booking service, offering the ability to move as little as one container, across any rail route, on a carbon- reduced service utilising alternative fuels, giving customers, no matter their size or scale, complete flexibility
started re-routing their ships around Africa in response to the growing impact of attacks in the Red Sea on shipping and global supply chains. This has led to significant adjustments in shipping services and a shift in cargo volumes, putting pressure on infrastructure, resulting in increased port congestion, delays and shortages of capacity and equipment. ON THE QUAYSIDE In North Wales, construction work has finally started on a border control post at the Port of Holyhead, which will carry out post-Brexit checks on goods from the Republic of Ireland. The container throughput of Chinese ports was 190.9 million teu from January to July 2024, a year-on-year increase of 8.3%, according to the Ministry of Transport of the People’s Republic of China. It added that Shanghai Port recorded a container throughput of 4.84million teu, reflecting a 15.1% year-on-year growth rate. ON THE OCEAN P&O Ferries has launched its ‘Turn-up and Go’ space charter with Irish Ferries on the Dover-Calais route and says that this is a material improvement for freight customers as they will be offered the next available departure when they arrive at the port on a ‘first come, first served’ principle, regardless of which company operates it. This means ships should always be fully loaded for freight at peak times, allowing freight to clear the port up to 25% faster. Alphaliner’s report in early September stated that margins for the nine largest
and control to manage and reduce their own carbon emissions. According to media reports, data published by AP Møller- Maersk shows that the number of vessels navigating the Suez Canal has dropped by 66% since shipping companies
With customs offices on both sides of the Channel, we offer a streamlined end-to-end service with a single instruction.
4 | October 2024
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BIFA News
Are you still thinking of recruiting apprentices?
New venue for Liverpool Dinner The popular Liverpool Region Charity Dinner has a new venue for 2025. Tickets are now on sale for the event that will take place on Friday 7 March 2025 at the Hilton Liverpool City Centre Hotel. Having sold out for many years, the new venue will allow the event to grow and accommodate more guests for an extended evening that will include a drinks reception, three- course meal, charity fundraising, comedian, DJ and dancing. Entertainment • Musician Maxine Molin will set the mood with her harp during the welcome drinks reception; • Comedian Jay McGee will provide the after-dinner entertainment; • Guests will be able to dance the night away to the sounds of the resident DJ. Fundraising
Most young people started university or sixth-form, or embarked on their fi rst step into work last month. However, there may still be plenty of young people out there looking for the right opportunity – this could be in logistics via the apprenticeship pathway Carl Hobbis, member services director at BIFA, said: “In the last few weeks, we produced a three-part series for BIFAlink TV covering the main elements you need to think about when recruiting an apprentice. “In no more than ten minutes you can find out an array of tips and best practices to help you cut through what can seem like a minefield. It’s quite a simple process and will be worth your time. We cover the elements of funding, recruitment, interview tips and onboarding. “In part 3 you will hear from BIFA’s very first apprentice,
Part 1
Part 2
Part 3
Let’s talk Apprenticeships - Part 3: Welcoming your new apprentice - hear from BIFA’s first apprentice. If you have any further questions about apprenticeships contact Carl Hobbis at c.hobbis@bifa.org
the specific QR codes: Let’s talk Apprenticeships - Part 1: The Apprenticeship levy, what to consider when recruiting. Let’s talk Apprenticeships - Part 2: The recruitment process.
Brooke, who gives her perspective as well.”
The evening will include a raffle and auction in support of the New Home campaign by Liverpool’s Zoe’s Place Baby Hospice. Sponsorship packages are available – please contact bifaevents@bifa.org for more information. Scan the
All editions can be found at BIFA’s YouTube channel or via
Post-Brexit EU trade in ‘sharp decline’
The Centre for Business Prosperity at Aston Business School, University of Birmingham, released a research paper last month entitled Unbound: UK Trade post-Brexit. The full 93-page report can be accessed by scanning the
QR code but the Executive Summary states: “The findings reveal a sharp decline in both UK exports and imports with the EU, underscoring the enduring challenges posed by Brexit on the UK’s trade competitiveness.” Such findings will have an
impact on the activities of BIFA Members and the Secretariat is currently
QR code for event details and to book your tickets.
reviewing the report and will provide its analysis in due course.
6 | October 2024
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BIFA News
Forum tackles things that matter to business leaders
UK secures membership of Trans-Paci fi c Partnership The UK has secured the sixth and fi nal rati fi cation required to trigger our accession to the Comprehensive and Progressive Agreement for Trans-Paci fi c Partnership (CPTPP) before the end of this year. CPTPP is a free trade area spanning five continents and almost 600million people once the UK joins. Following Peru’s ratification of the UK’s deal to join the bloc, the agreement will now officially enter into force by 15December 2024. More than 99% of current UK goods exports to CPTPP members will be tariff-free once the deal enters into effect. By 2040, the agreement could boost the UK economy by around £2billion annually. Before Peru, five other CPTPP members ratified the terms of the UK’s accession: Japan, Singapore, Chile, New Zealand and Vietnam. This means the agreement will come into force with those members by 15 December, and subsequently with other members as they ratify.
This month, Steve Parker leads the fourth BIFA Business Leaders Forum – will you be there? Since being introduced in early 2023 the BIFA Business Leaders Forum events have grown in popularity and are knowledge and discuss issues directly affecting the industry. At this month’s event in central London, speakers will cover a wide range of topics: Session 1 - Maritime MATTERS! In our opening session, we dive into the issues affecting the global maritime shipping industry with contributions from shipping and forwarding representatives. During an open discussion, the background to the issues will be examined alongside the actions being taken by shipping lines to mitigate recognised as a great opportunity to share disruption. Finally, we will look at the protections offered by the BIFA STC to the forwarder in these instances. Session 2 – The EU Entry/Exit System – Are our Channel Ports ready? The EU EES will affect ALL individuals travelling into and out of the EU from the UK, regardless of whether they are
Session 5 – BIFA + ITN Steve Parker, BIFA director general, will round off this Business Leaders Forum with some important updates on your membership benefits for 2025 and exciting news on the ITN ‘Transforming Logistics: Precision & Purpose’ programme. The event will end with the opportunity to network over lunch. BOOK NOW! Spaces are limited and there are just a handful of tickets left. Visit www.bifa.org/events or scan the QR code to reserve your place.
travelling for business or pleasure. This session will explain the new border processes and what you can do now to avoid delays. Session 3 – Revolutionising Trade Compliance with AI In this session, the founder of icustoms, Adnan Zaheer, will show how forwarders can streamline complex processes and unlock significant time and cost savings through the power of AI. We will also hear from specialist maritime solicitor Bruce Hailey of Salvus Law who will examine the legal implications and impact on the BIFA STC. Session 4 – Inspiring the next generation Phil Roe of Generation Logistics joins us to showcase the initiatives taking place across the industry to inspire the next generation of talent.
The Limits of Liability for Carriers
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By air – Warsaw Convention (17 SDR): £17.39 per kg
By sea – Hague Visby rules (2 SDR): £2.05 per kg £681.78 per package
BIFA STC: (2 SDR): £2.05 per kg
By road – CMR (8.33 SDR): £8.52 per kg
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October 2024 | 7
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Policy & Compliance
ENS – The fi nal call The waiver on the requirement to lodge an ENS will fi nally be removed from 31 October 2024. Lodging an ENS is a service that many BIFA Members offer to carriers
rebooking of ferry crossings, etc. All these elements should be considered if an operation is to be successful and legally correct. What is also interesting is that at the time of writing this article, HMRC had not done much in terms of engagement with trade. We do not want to read too much from this fact but we certainly encourage Members to watch any ENS-related developments very carefully. Related enquiries We also encourage Members to contact the Policy & Compliance team (Pawel Jarza p.jarza@bifa.org and Igor Popovics i.popovics@bifa.org) at the Secretariat if they have any specific safety and security related enquiries, which we will try to assist with. For more information, please check the links below: • www.gov.uk/guidance/safety- and-security-requirements-on-i mports-and-exports • www.gov.uk/guidance/making- an-entry-summary-declaration • www.gov.uk/government/ publications/the-border-target- operating-model-august-2023 BIFAlink has published the following articles in past issues: • September 2024 – page 10 – Entry Summary declarations – Technical & Data requirements. • August 2024 – page 20 – Entry Summary Declarations for goods arriving from the EU.
T he Border Target Operating Model published in August 2023 paved the way for the implementation of a full border control regime on goods coming from the European Union. The rationale behind this was to create a unitary border model for imports and exports of goods, regardless of their origin. The model includes the requirement to lodge an Entry Summary Declaration (ENS) for goods coming from the EU and the EFTA countries. This specific requirement has not been enforced under the previous arrangements, but the waiver to lodge an ENS will finally be removed from 31 October 2024. The ENS concept In preparation for this moment, BIFA has been publishing information about the ENS concept, including its legal and operational implications, and this information can be found under the links we quote in this article. BIFA understands that, although the requirement to lodge an ENS is
not directly associated with the freight forwarder (legally it is the carrier who is under the obligation lodge an ENS), many BIFA Members will offer this service to carriers who may not be able to lodge an ENS themselves. This will likely be the case when goods are moved by road and the carrier will be a non-UK based trader whose knowledge of local systems will be limited. Members who consider putting themselves in the position of someone who lodges an ENS should therefore acquaint themselves with the legal requirements. They should also understand how (via software or maybe the Single Trade Window) and when an ENS should be lodged. Equally important is the operational planning, as whoever lodges the declaration should ensure that they can obtain the necessary information required for the purpose of safety and security notifications in a timely manner. This, for many traders, may turn out to be the most difficult part of the process as road freight is known for its high volatility, sudden changes of means of transport,
“ Whoever lodges the declaration should ensure that they can obtain the necessary information required for the purpose of safety and security noti fi cations in a timely manner
8 | October 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.
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Policy & Compliance
The Front End Credibility message is something that can assist the Customs agent in detecting and avoiding serious declaration errors. It should be investigated and not ignored Front End Credibility checks
statement in response. This is a system weakness in BIFA’s opinion. The crucial point is that Members must not ignore the FEC message. The declarant may amend the declaration, confirm that the data is correct or choose to do nothing – in which case the declaration will move to the next stage. Legal declaration The reader must remember that a Customs entry is a legal declaration and there are penalties for submitting an incorrect one. These include financial consequences and the potential for HMRC to set aside a Customs agent’s direct empowerment, increasing the latter’s liabilities. The FEC message is something that can assist the Customs agent in detecting and avoiding serious declaration errors. BIFA’s guidance is that such messages should not be ignored by Members but investigated and the outcome recorded as evidence that the agent has taken the matter seriously.
T here are certain recurring themes in the work of the BIFA Secretariat regarding Customs formalities – the three most common questions we receive relate to representation, establishment and valuation. What is interesting is that on occasion additional information becomes available which, when provided to and followed by Members, assists them to be Customs compliant and thus avoid penalties. Growing awareness Feedback from Members in response to previous articles and communications highlights a growing awareness of these issues, and a desire to prevent them in the first place. Some Members are tightening up their checks and compliance- related activities and there is an
“ The crucial point is that Members must not ignore the FEC message. The declarant may amend the declaration, con fi rm that the data is correct or choose to do nothing...
increasing willingness to question the importer as to the accuracy of the declared value and to decline to enter certain consignments if the Member is not satisfied with the responses received. When a Customs declaration is submitted to HMRC in CDS, there are complex behind-the-scenes system checks, examining the relationship between the declared value, the net weight and item quantities to establish the credibility of the supplied data. If the entry fails the above checks, a Member may receive a CDS message entitled CDS 13000 Credibility Validation Results – Credibility check: incredible value found – Value fails credibility check as too high or too low. Unlike in CHIEF, these Front End Credibility (FEC) checks will no longer inhibit Customs clearance because CDS does not require the trader to make a positive
10 | October 2024
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Policy & Compliance
Austria adopts e-CMR Protocol “ The e-CMR protocol offers several advantages, including the elimination of paperwork, which reduces handling costs and
T he e-CMR protocol entered into force in Austria on 6August, making it the 36th country to join to protocol and paving the way for digital, paperless road freight transport within its borders. With Austria’s accession, any road transport involving the country can now be fully digitised, allowing for seamless and efficient operations and administration. This significant step enables shippers, transport companies and freight forwarders to immediately use the e-CMR for their shipments. Protocol advantages The e-CMR protocol offers several advantages, including the elimination of paperwork, which reduces handling costs and administrative delays. Advocates of digitalisation of road transport documentation suggest that adopting the e-CMR
Convention improves accuracy in tracing shipments and provides real-time access to pick-up and delivery information, which enhances overall transparency and security within the logistics chain. In many ways the adoption of the e-CMR mirrors regulatory changes such as the adoption of
the electronic Transit Accompanying Document, where the Transit Declaration is submitted in NCTS 5. This process will be further extended when NCTS 6 is implemented, which has the potential to link the transit with the safety and security declaration.
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October 2024 | 11
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Policy & Compliance
How to ensure you are protected by BIFA Standard Trading Conditions Over the last 28 editions of BIFAlink a series of articles looking at individual Standard Trading Conditions (STC) clauses has been published. In this article we want to look into the question of incorporating the STC into the freight forwarding contracts between the BIFA Member and its customer.
A t the BIFA Secretariat we receive complaints against Members from their customers – the most frequent being about loss/damage to cargo where liability is limited by Clause 26 of the STC. Long experience has taught us that the fi rst questions that solicitors and insurers ask their client (the freight forwarder) are composed of two parts. The fi rst is: “What trading conditions do you trade under?” The second is: “Have you incorporated these into your contract with your client?” Once properly incorporated into the contract, the STC create an equitable trading relationship between the two parties, providing protection for freight forwarders and placing certain expectations (or responsibilities) on the customer. A key condition to the use of the BIFA STC is that suitable freight liability insurance is maintained by the Member to cover its obligations defined in the STC. A list of insurance brokers offering freight liability insurance is available on the BIFA website. There is more than one approach to concluding a contract – on occasion, specific contractual terms may be negotiated and agreed between the two contracting parties. At other times, international convention or local law may be applicable. In fact Clause 2 (B) clearly states: “If any legislation, to include regulations and directives, is compulsorily applicable to any business undertaken, these conditions shall as regards such business be read as subject to such legislation.” STC advantages There are some significant advantages to using the BIFA STC: • Ef fi ciency – using a standard set of STC for most, if not all, of the business undertaken keeps time spent on negotiation to a minimum. • Cost – It would cost individual traders significant financial sums to develop their own trading conditions and to keep them updated on a regular basis. • Standardisation – insurers are aware of the forwarder’s liabilities which makes it easier to write policies and provide accurate premiums. • Legal Precedent – There is significant UK case law regarding transport and freight forwarding disputes. In many cases the legal profession can advise clients as to the likely outcome of any dispute, which can assist in concluding disputes without the need to take them to court. However, it is important to note that Members must ensure proper incorporation of the STC. Failure to
incorporate them increases the risk that Members will not be able to rely on them if a dispute arises. In today’s business world, where compliance is becoming ever more important, BIFA has noted a stricter approach to incorporating the terms. Not so long ago, a simple exchange of messages and reference to the STC was sufficient to demonstrate that the STC had been incorporated. Nowadays, obtaining the express written agreement of the customer is used more frequently. One of the reasons for this, we believe, is Clause 7 covering Customs Representation and Establishment, which offers significant cover to the Member. Timing It is imperative to remind the reader that the Member must bring the STC to the attention of the customer before the contract is concluded between the two parties. That is before the customer has accepted the BIFA Member’s quote or offer to move a particular consignment. Notice given after the contract has been concluded increases the likelihood that any dispute would fall back on international convention or common law. In any dispute, the party relying on its STC has the legal burden to demonstrate proper incorporation. We have explained that the best way to incorporate the STC is to obtain the customer’s express written agreement; in many cases this can be part of the client onboarding process, which must include due diligence and credit checks. Also, Members should ensure that they fully understand and can meet their client’s freight forwarding, Customs and other service requirements. There are cases, particularly with one-off shipments, when the previously described process is not operationally feasible. Members have a variety of methods of dealing with this situation. At one end of the scale there are IT solutions where the client ticks a box confirming that it has seen, read and understood the STC. At the other end of the scale, Members may have a clause at the bottom of e-mails and shipping documents, etc, stating: “All business is carried out (conducted) subject to the current BIFA STC. A copy can be viewed at https://bifa.org/information-guidance/trading- conditions/bifa-standard-trading-conditions-2021/” Possible problems These and other methods are legally acceptable but there are certain issues that could arise. We would like to examine the likely main problems. Late noti fi cation: A contract is concluded when the
“ It is imperative to remind the reader that the Member must bring the STC to the attention of the customer before the contract is concluded between the two parties
12 | October 2024
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Policy & Compliance
“ Failure to incorporate the STC increases the risk that Members will not be able to rely on them if a dispute arises
customer accepts the Member’s offer. A customer requests a price to move cargo from A to B from a BIFA Member. By quoting, the Member is making an ‘offer’; as soon as the client accepts the price there is an ‘acceptance’ and a legally binding contract has been entered into. If the staff member failed to advise the client that the contract was subject to BIFA STC before the price was accepted by the client, the terms would not be engaged. A subsequent e-mail stating that the STC applied would be ineffective, because it came after the conclusion of the contract. Incomplete noti fi cation: Another issue is that the terms of advising that the STC were incorporated have not been fully met. The most common failure we encounter is when staff send out only the front of a quote or transport document which states that the STC are printed on the reverse. In this case the STC will not be incorporated until the client is sent the reverse side of the documentation. Multiple trading conditions: Many Members trade under different terms, dependent on the nature of the business undertaken. The BIFA STC are used by Members for their freight forwarding activities, but their warehousing activities are often covered by the UKWA terms. It is important that it is clearly stated which terms apply to individual contracts. Whilst on the
subject of clarity, it is essential that where reliance is placed on links to a website to incorporate the BIFA STC, that the client is directed to the specific page applicable to the STC (see QR codes, right, to England, Scotland and Northern Ireland versions). Amended terms: The last issue we hear of at BIFA is “the battle of the forms”. In this scenario the client has queried or declined to accept a particular clause within the terms. Effectively this is a proposed amendment to the STC, and the Member needs to take appropriate steps such as rejecting the amendment or suggesting more acceptable wording. BIFA has been advised that failure to do so means that the Member has accepted the client’s amendments. It is hoped that this article has highlighted the main pitfalls to be avoided when incorporating the BIFA STC into contracts with clients. Conversations regarding the STC indicate that they are not fully understood by clients nor Members. As a whole, all clauses of the STC are important but some have greater importance than others. From a personal viewpoint, the writer would like to highlight that no goods are insured unless agreed in writing (Clause 11) and link that to Clause 26 which clarifies that the forwarder’s liability is limited.
BIFA STC 2021 – England
BIFA STC 2021 – Scotland
BIFA STC 2021 – Northern Ireland
October 2024 | 13
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Policy & Compliance
New recycling and waste requirements for businesses
place, regardless of the amount of food produced. Plastic film and green waste are currently exempt from this legislation. Tool-kit The Department for Environment, Food & Rural Affairs (DEFRA) advises that a tool-kit will be made available, including educational material to assist businesses to train their staff on waste collection requirements. However, the tool-kit has yet to be finalised, so in the meantime it is recommended that businesses contact their waste collection company for further guidance. As waste is a devolved matter, each of the four UK nations has slightly different requirements for recycling. These new guidelines are applicable to businesses in England. By embracing DEFRA’s Simpler Recycling reforms, businesses can streamline their waste management processes and contribute to a sustainable future. More information is available on the DEFRA website – scan the QR code, left.
T he UK government has introduced new ‘simpler waste collections and recycling across England requiring businesses to adhere to stricter recycling practices and aiming to clear up confusion over recyclable and non- recyclable materials. At the same time, the rules will standardise recycling practices, reduce landfill waste and tackle illegal waste activities, whilst recycling’ legislation to reform One sustainable business practice that Members can apply for a quick win is the effective management of waste “ By embracing
with less than 10 full time equivalent employees) will have more time and will not be required to comply until 31 March 2027. It will be important for businesses to ensure that materials are separated out to avoid recycling being contaminated by any non- recyclable materials (residual waste), the non-hazardous waste that cannot be re-used or recycled and is left once the recyclable waste has been separated. Therefore, businesses should plan to have three waste streams: • Dry recycling • Food waste • Residual (non-recyclable) waste. To ensure compliance, it is understood that businesses will continue to have the option to mix dry recyclables. However, it is important to note that disposing of food waste in the general waste bin will now be strictly prohibited and businesses will need to have separate food waste collections in
DEFRA’s Simpler Recycling reforms, businesses can streamline their waste manage- ment processes
promoting a more sustainable and environmentally conscious society. Separating recyclables Businesses with 10 employees or more will be required to separate dry recyclables (glass, paper, card, metals, plastics) and ensure that food waste is collected separately, regardless of the amount produced. These separate dry recycling and food waste collections need to be implemented by 31 March 2025, although micro-businesses (those
14 | October 2024
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BIFA Awards
Serving challenging markets
2015, and since refined and transferred to meet commercial needs in challenging environments.” In 2007, Seafast embarked upon a journey to specialise in cold chain by investing in temperature- controlled facilities (TCFs). In July 2009, Seafast opened the first port-centric TCF in the port of Felixstowe. At just 5,000 sq ft, its scale was modest and did not allow for storage of product. Halliday elaborated: “Our key USP was being able to reduce road miles by devanning import reefer containers in the port, and cross- docking into temperature- controlled trailers through the Felixstowe TCF. This also had the positive impact of significantly reducing demurrage and detention costs as well as inland distribution costs.” Meeting demand Seafast persevered with this model until customer demand for space and services for frozen products was met by the opening of a 100,000 sq ft, 20 m tall modern frozen chamber within the 750,000 sq ft mega distribution centre constructed by its now parent company, Uniserve, in Felixstowe. Seafast is now able to offer storage and other value-added services to customers within the original port- centric model. This expertise is transferable geographically. It is the reason why Seafast is focused on territories where cold chain assets are in short supply, but demand exists to prevent fresh products going to waste before their arrival into market. Rwanda is the prime area where Seafast is looking to invest in assets such as temperature- controlled trucks, as well as potentially pack-house and storage facilities, either independently or in close collaboration with government and other privately owned enterprises. Halliday acknowledged: “Africa is definitely a marathon, not a sprint, so one needs to have belief and determination to turn a vision into reality.”
T he Seafast business model has two distinct areas of specialisation. First, refrigerated cargoes (predominantly frozen products including poultry from Asia and seafood from the South Atlantic). Second, the provision of logistics services in regions that ceo David J Halliday described as “de fi ned by geography, in remote, dif fi cult-to- serve and emerging markets”. Dearth of logistics For example, Seafast identified East Africa as a region where GDP growth rates in a number of countries are amongst the highest and fastest anywhere in the world, but which lacks the end-to-end logistics solutions needed to help the agriculture and horticulture sectors expand into overseas markets. For this reason, just ahead of the COVID-19 pandemic, Seafast established a joint venture with longstanding and trusted Kenyan partners. Located in Rwanda, the company is focused on an integrated cold chain solution to When setting up Seafast Logistics, Seafast Group CEO David J Halliday was determined to differentiate the company. Over 20 years since its creation, Seafast has certainly achieved that – and its unique business model won the company the 2023 BIFA Specialist Services Award
support exports of products such as fresh cut flowers and green beans. Halliday went on to explain that for the past decade Seafast has been delivering new 4x4 vehicles to the UN and other humanitarian and aid entities in difficult-to-reach territories, including South Sudan, Kurdistan (Iraq) and Afghanistan. “The keys to success in delivering cost-effective and sustainable logistics solutions are first, understanding where customers are encountering problems and uncontrolled expenses, and then designing bespoke solutions to overcome such issues,” Halliday said. “This is a skillset which has been developed over almost 20 years, dating back to a decade of support for ISAF Nations involved in Afghanistan between 2005 and
“ Our key USP was being able to reduce road miles – David J Halliday, Seafast
Specialist Services Award
Thyme-IT + Descartes provides easy-to-use web-based Customs and Excise solutions that are competitively priced and address all
HMRC requirements. We connect to all CSPs and Direct-to- HMRC for CDS and CHIEF. We provide imports, exports, CFSP, Transit, S&S GB, EU ICS, EMCS, EXS and GVMS. The Thyme-IT + Descartes solutions allow for data entry via our secure web- based environment, data upload using our simple Excel upload options and 2-way data exchange via our XML APIs.
16 | October 2024
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Policy & Compliance
EU extends roll out of Smart tachograph reading processes
DSRC equipment remotely monitoring smart tachographs
R emote tachograph reading is now mandatory across the EU, enabled by the new Dedicated Short-Range Communications (DSRC) equipment, which all member states are required to implement. This technology allows tachographs to be checked remotely, enhancing enforcement of driving time regulations across Europe. Mixed take-up Several countries, including Belgium, Germany, Poland and France have already been using this equipment for some time. However, not all EU nations have fully implemented it yet. For instance, Hungary currently lacks DSRC equipment, while Lithuania plans to begin using it next year. This mandate ensures that all
“ This data significantly enhances the ability to monitor compliance with driving time regulations and improve road safety across the EU
European inspection authorities must now possess DSRC scanners. These devices enable inspectors to remotely check whether a driver has the correct driver card in the tachograph, detect any tampering attempts, and identify error messages, all of which could indicate tachograph fraud. The data collected allows inspectors to pre-select vehicles for further inspection, ensuring that only those with potential violations are stopped.
With the latest version of the tachograph, the Smart Tacho 2.0, inspectors can now access detailed data on a driver’s current and past driving times, including the time since the last 45-minute break, the longest driving time of the current week, and the total driving time over the past two weeks. This data significantly enhances the ability to monitor compliance with driving time regulations and improve road safety across the EU.
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October 2024 | 17
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BIFA Awards
Passionate about problem solving
After completing a degree in Scots law, Michael Shiels wanted a change of pace. He found it on a graduate scheme at DHL, and was among the 2023 BIFA Young Freight Forwarder of the Year fi nalists
Young Freight Forwarder Award
Virgin Atlantic Cargo is proud to sponsor BIFA’s Young Freight
the end of last year. “We have a Responsible Person in London, but I have been brought in to support compliance for Northern Ireland, Scotland and Manchester,” he said. Michael is still on the graduate scheme at DHL and hopes to secure a permanent role soon, where he can continue to put his problem- solving skills to use. developing and retaining talented young people and is confident this award will help to attract more recruits that want to build a future career in a sector that is so important to the economy and international trade. Forwarder Award to recognise and encourage the next generation of industry leaders. As well as rewarding the progress of the best young people, this award helps to highlight the vital role freight forwarders play in the growth and development of the industry. VAC recognises the importance of
“I am passionate about problem solving,” said Michael Shiels – and much of his work at DHL Global Forwarding (UK) has revolved around just that. “A lot of what I have been doing is improvement projects on the business,” he explained. “Last year I was involved in UK-wide projects on digitalisation, improving transit times, and increasing the ef fi ciency of DHL’s complaints handling process.” Michael likened DHL’s problem solving tool to the Six Sigma method. “There is training to become a bronze, silver or gold champion; I am one of a handful in the company who have reached advisor level.” He loves teaching his colleagues to embrace tools such as 5 Whys, Gemba Walks, and 5S, because he
“ A lot of what I have been doing is improvement projects on the business – Michael Shiels, DHL
fi nds “a structured approach to problems always creates the best solutions”. He is also trained to facilitate a two-day course about the values, ethos and history of DHL for new staff. When he spoke to BIFAlink in February, Michael was looking forward to undertaking a Responsible Person training course in Oxford to support the new pharmaceutical compliance project that he started at
Menzies LLP provides financial and accounting expertise, combined with strategic commercial thinking. We understand your business via our in-depth sector knowledge and use a consultancy-led approach to challenge your objectives and guide your business growth. Each of our clients experiences our Brighter Thinking approach, the difference we make to our clients. With our in depth transport and logistics sector experience we promise to add real value across key areas of our clients’ businesses – to go further than just balancing the books. APPRENTICE OF THE YEAR AWARD Taking a statistical approach While a passion for statistics may not be the obvious route into a career in logistics, it seems to be working pretty well for BIFA Apprentice of the Year fi nalist Kieran Elkin
“Working with statistics is my favourite thing to be doing,” said Kieran Elkin, who studied maths at university before joining Dachser UK. “I have regularly been called upon to provide analysis of raw data and numbers in scenarios involving a prospective customer, or for gaining insights into current operations.” He has also designed an Excel interface to support the sales team. “I created tools using Visual Basic coding,” Kieran explained. “The sales team used to ask our department to create tariffs manually and send them
proactive approach, youth and relatively short time spent using the old system made him an ideal choice for the project. Kieran finished his apprenticeship in September 2023 and became a junior controller for his branch. Since this article was written, Kieran has joined Rhenus Logistics as a business finance analyst.
back. Now they can do it themselves, and it takes five minutes instead of multiple days. Customers are impressed; it means a lot to them.” In addition to his core responsibilities, Kieran helped with Dachser UK’s migration to Microsoft Teams and Outlook. His
18 | October 2024
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