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 April 2024 BIFA link
The end of liner cartel exemptions?
INSIDE: College collaboration • Hat-trick of YFN events • Extra Mile Award winner • Know your STC • Get engaged • New legislation • Record drugs haul
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Issue: 404
Steve Parker’s Column
Beware the Ides of March
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 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 Note to media: If you wish to use items in this magazine that are older than one month, please contact the editor 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.
I suspect you didn’t expect a quote made familiar by Shakespeare to feature as the headline for my latest BIFAlink column. Today this quote from Julius Caesar is often associated with negative connotations, but in the ancient Roman calendar, the Ides of March was not to be feared. It was an important point in time, marking the mid-point of the month. I wrote this column a few days after that mid-point in March, which marks a return to regular meetings for our Regional Member and Policy Groups, after a couple of months when such meetings are rare. For me, it is an excellent opportunity to get back out and meet you, our Members. Not only to bring everyone up to date on what is happening in our industry but also to talk about the future. What will excite us, what will challenge us, and what brings opportunity for business and industry growth.
The United Kingdom This period means some travel, I have attended several regional meetings from Dover to Aberdeen and Belfast, and whilst a number of the topics are nationwide issues, there are always also local ones. I enjoy all of it. The chance to meet and talk about those items that either are or will be important to you, and of course share updates on what is happening on the ground. The good and encouraging news is that attendance at these meetings is growing, with more Members joining in every time. If you are reading this and no one from your company is currently attending our regional meetings, then why not make 2024 the year to change that? The dates of all our meetings are listed at https://bifa.org/events/. Policy Groups In this area, 2023 was important for us. For the first time that anyone can remember we started a new policy group – Sustainable Logistics – which held its second meeting last month with over 30 attendees. Sam Warren from the Woodland Group was elected as its first chair and the fledgling group is already working on what environmental changes are coming and where we can expect legislation to impact us; there are some exciting times ahead. Of course, BIFA’s four other policy groups covering Maritime; Road and Rail; Air; Customs; and Legal & Insurance also found time in March to come together and discuss the topics of the day. I attend as many of these meetings as possible, simply because it is great to watch these teams in action, helping BIFA to formulate policy on issues on which we need to engage with stakeholders. As with the regional groups, if you feel drawn to one of our policy groups then why not contact us; we are always looking for new members to help us shape the future. Business Leaders Forum This will take place on 16 May and, having secured a larger room, we do have a few spaces remaining. However, it is filling up fast so make sure to register as soon as possible. We have some interesting speakers already lined up and they will present on topics that any business leader will need to understand in preparing their businesses for the future. If you are a business leader and want to join us, then please register at https://bifa.org/event/business-leaders-forum-2/. I look forward to seeing as many of you as possible. Representation In March, BIFA joined 11 of the UK’s leading logistics trade associations by co-signing a letter to the leaders of the UK’s and devolved nations’ main political parties, highlighting the role logistics can play in boosting growth and productivity, if backed by the right policies, a dedicated minister and a Cabinet Office structure to support delivery across Whitehall.
Director General
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Industry News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
UK invests £16 million in improved truck facilities
Netherlands, with Finland and the Baltic States, by deploying two 803 teu container vessels. It has also added a call at the Lithuanian port of Klaipeda, whilst relocating its UK port of call from Hull to Immingham. The ripple effect of growing global trade volatility is impacting the entire logistics chain, not least the movement of empty containers which has grown around 20% in the past few months compared with 2019, according to a study undertaken by maritime consultancy Sea-Intelligence, using data from Container Trade Statistics’ region-region movement of full containers. Credit rating agency Fitch said in mid-March that the short- term profitability of ocean carriers will benefit from increased freight rates, which exceed the cost of re-routing. It added that the current elevated spot rates would affect contract rates, resulting in higher average rates per teu for the full year, helping to protect carriers from the impact of lower demand in what is otherwise expected to be a weak 2024. ON THE QUAYSIDE UK retailers and Peel Ports have called on shipping lines and the government to push for a new port of entry strategy that would see shipping lines utilise both northern and southern ports for delivering deep-sea containerised cargo. Currently 90% of such cargo enters the UK by southern ports, with 60% of it ultimately heading for the north via road and rail. STOP PRESS On 21 March, as this issue of BIFAlink was going to press, BIFA received a letter of confirmation from the Department for Business & Trade stating that the Secretary of State agrees with the CMA’s final decision and that, as a result, the CBER will lapse when it expires on 25April 2024.
OVERLAND The UK government and industry are investing £16million on more parking spaces, better welfare facilities and safer rest areas for truck drivers in England. Upgrades will include new showers and restaurants, better lighting and secure fencing around rest areas, as well as creating around 430 new parking spaces for HGVs. In addition there will be new charge points to power electric HGVs and solar panels on truck driver facilities. Chancellor of the exchequer Jeremy Hunt announced the long-awaited Spring Budget on 6 March 2024, with a freeze
when the world was in recovery mode following the COVID-19 pandemic. IATA attributed the increase to rising e-commerce demand, as well as some modal shift as a result of the Red Sea shipping crisis. The opening session of the IATA World Cargo Symposium in mid-March reviewed progress in digitalisation, safety and sustainability within the air cargo industry, with the aim of accelerating progress on these critical priorities to ensure that air cargo growth is efficient, safe and aligned with achieving net-zero carbon emissions by 2050. Reflecting on how e-commerce is rapidly gaining value in the air cargo sector as it grows in volume, Ludwig Hausmann, senior partner at consulting firm McKinsey, told delegates at the IATA World Cargo Symposium that e- commerce will likely stabilise as a third of total air cargo volumes. He added that the percentage of e-commerce within overall air cargo volumes had jumped 10% in the space of five years, with further growth expected. ON THE OCEAN Sea-Intelligence has reported that global ocean carrier schedule reliability continued to decrease in January 2024, dropping by 5.1% month on month to 51.6%, the same month-on-month drop as in December 2023, and the lowest score since September 2022. It added that only five of the top 13 carriers achieved a schedule reliability above the 50% mark in January 2024. Samskip has increased capacity on its fixed-day weekly sailing schedule connecting the UK and the
in fuel duty at its current rate amongst the policies announced. IN THE AIR Air cargo demand increased by 18.4% year on year in January, IATA reported in March, the highest increase registered since summer 2021
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Industry News
College collaboration to boost logistics education
Business Leaders Forum – Thursday 16 May
BIFA announced the establishment of a new collaboration programme with South Hampshire College Group (SHCG) in February to help develop and deliver courses that make students attractive candidates for roles within the logistics sector. This is an extension of a campaign started in 2021 to encourage Members to work with schools and colleges to promote careers in logistics, forwarding and supply chain management. The collaboration will see BIFA and SHCG work together through continuous and structured interaction to engage with the extensive community of BIFA Members in the Solent region. A key objective will be to inform and update local BIFA Members about the skills courses that SHCG runs that are relevant to the logistics sector, whilst enabling them to provide input into those courses to ensure students have the essential foundation knowledge they need for a successful career in the industry. Through its Solent regional
Next month will see 150 BIFA Business Leaders gather in central London for the third event in the Business Leaders Forum series. Introduced during 2023 by BIFA Director General Steve Parker, the Business Leaders initiative to pursue greater Member engagement at all levels, with these events aiming to provide high-level information on issues likely to impact your business, thereby allowing you to plan your strategy for the future. To view the agenda and secure your spot, visit: https://bifa.org/events/ Forum events are an important part of the CCS-UK completes migration to CDS CCS-UK – the UK’s electronic air cargo community system – announced the successful migration at the end of February to the UK’s new HMRC Customs platform, Customs Declaration Service (CDS), for all air imports and exports. CDS has been handling all import declarations since October 2022 and, following a major and complex development programme, CCS-UK is now fully tested and approved for exports. The UK’s maritime communities, which use other community service providers, will begin export migration in due course.
Pictured at the BIFA Solent Regional Members meeting are Paul Cunningham, BIFA Regional Representative; Denise Hill, BIFA Member engagement director; and Anoushka Ottley, executive director of business & partnerships at South Hampshire College Group
group, BIFA will be encouraging its Members to engage with SHCG students to provide valuable insight into the many aspects of logistics and the wide variety of career opportunities that are available.
If you are based in the Solent region and are interested in supporting this initiative, please contact BIFA Regional Representative Paul Cunningham (p.cunningham@bifa.org).
Reducing the risks of manual handling
Manual handling is one workplace risk that can be mitigated but possibly never completely avoided – and it is a frequent topic of Health & Safety Executive (HSE) bulletins. All employees, whether in their work life or personal life, will encounter manual handling tasks and injuries are common, but a number of simple steps can be taken by both the employer and the individual to reduce the risk. Manual handling is defined as any activity that involves transporting or supporting a
load by hand or bodily force. It includes lifting, putting down, pushing, pulling, carrying or moving loads. A load can be an object, person or animal. Injuries can occur whatever the weight of the object, with lightweight objects often giving a false sense of security resulting in less attention to the task and correct lifting technique. Poor posture and repetitive tasks are additional risk factors to be considered. Within the transport and logistics industry, manual handling is an obvious and
unavoidable part of the job for many employees. In some cases, mechanical lifting and automation can be used to reduce the risk to individuals, although these solutions can introduce other health and safety issues that must also be controlled. For further information on assessing manual handling tasks and their risks, and taking steps to eliminate or reduce the risk of injury, visit the HSE Guidance on Manual Handling at Work at www.hse.gov.uk/msd/manual -handling/index.htm#article
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Industry News
Sustainable Logistics Policy Group holds second meeting
Notice of Annual General Meeting Notice is hereby given that the 35th Annual General Meeting of the British International Freight Association (BIFA) will be held at 1 pm on Thursday 16 May 2024 at Etc Venues, Monument, EC3M 1AE in order to: 1. Receive the report of the board of directors. 2. Receive the accounts for the year ended 31 December 2023 and the report of the auditors thereon. 3. Appoint auditors and authorise the board to fix their remuneration. 4. In accordance with the Association’s Articles, to note and approve the election of officers of the Association. 5. Transact any other business that may properly be transacted at an annual general meeting. Steve Parker, Director General A BIFA Member may nominate an attendee, although there will be a limit on numbers once a quorum is achieved. Please email s.parker@bifa.org Note: Any Member entitled to vote at the above meeting may appoint a proxy to vote on a poll in their stead. A proxy need not be a Member of the Association. To appoint a proxy, download the Form of Proxy from www.bifa.org”
The Sustainable Logistics Policy Group held its second meeting on 7 March in Central London. The meeting endorsed Sam Warren of Woodland Group as the policy group’s first chair, an important role. A wide-ranging agenda looked at wider sustainable goals, with a strong emphasis on developing pragmatic policies to benefit Members. Consideration was given to two EU measures, the Carbon Border Adjustment Mechanism (CBAM) and Emissions Trading Scheme (ETS), which are both impacting the UK. The former indirectly, as Members are being requested to provide carbon emissions data for moving goods into the EU. The ETS, which is in its
Mike Jones (L) BIFA welcomes Sam Warren of Woodland Group to the role of Chair of the BIFA Sustainable Logistics Policy Group
infancy, is impacting shipping lines who are incurring additional taxes for emissions generated for maritime movements into the EU from the rest of the world. The higher emissions stemming from a longer journey and higher speeds have increased the taxation level that lines have to
pay to the EU. The meeting also discussed sustainable development goals and those which would be most relevant to the freight forwarding industry. Pledge provided an insight into carbon measurement and offsetting and how BIFA Members could utilise them.
TIACA launches climate action platform
The International Air Cargo Association (TIACA) launched a platform in early March supporting Investment in Climate Action as part of an ongoing programme to accelerate the air cargo industry’s sustainability transformation. In addition to its established BlueSky programme and ongoing initiatives to share best practice around
emissions tracking and reduction, TIACA seeks to unite and support the industry in addressing the United Nations Sustainable Development Goals (SDGs) and bring real benefits for local communities. The platform is open access and will provide users with detailed project information about different technologies and certification standards, help educate the air cargo
industry on funding climate action, and reduce barriers to carbon credit procurement. Investment levels are
determined by the user, starting from very low increments. For further information on this initiative, scan the QR code.
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £17.76 per kg
By sea – Hague Visby rules (2 SDR): £2.09 per kg £696.58 per package
BIFA STC: (2 SDR): £2.09 per kg
By road – CMR (8.33 SDR): £8.70 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 18 March 2024,
By air – Montreal Convention (22 SDR): £22.99 per kg
according to the IMF website, was 1.04486)
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Young Forwarder Network
masterclass for the employers. Cameron Smith, chair of the Northwest YFN, said: “It was an enjoyable presentation and it was great to see so many new faces at the event.” London East A couple of weeks later in the London East region, combating organised crime was the topic when big YFN supporter Operation Pandora addressed an enthusiastic group of YFN members. Operation Pandora is a multi- agency team from HMRC, Border Force and the National Crime Agency. Their representatives delivered a fascinating talk about how they are working with industry to identify suspicious activity and what to look out for when processing shipments. Rachel Townsley, London East committee member, said: “It was a great turn out for the first regional event of the year and a really interesting presentation, a real eye opener.” Anglia The third event in Q1 took place early in March in Felixstowe when the guest speaker was Chrissy Nichols, co-founder and director of Atlantic Pacific Global Logistics. In addition to her work in forwarding, Chrissy is a passionate supporter of the arts, Billericay Town Women’s and Girl’s Football Club and the Lady McAdden Breast Cancer Trust. BIFA host Liz Sumner said: “It was great to have Chrissy as our guest speaker. Not only was it National Careers Week, but with International Women’s Day also taking place the same week, Chrissy’s passion for the industry was evident, which made for a fabulous event.” Future YFN development We welcome your feedback and input, whether you are an employer or young person. Please visit the YFN survey to contribute to its future development by scanning the QR code here. Keep your eyes open for YFN
Members of the Operation Pandora team with YFN London East committee members
The start of February saw the Young Forwarder Network (YFN) kick-off face-to-face events for 2024 in the football hotbed of Manchester YFN kicks-off New Year with hat-trick of events
Manchester C
both young people and employers. Carl Hobbis, BIFA Members Services Director, who set-up the YFN in 2019, gave a talk entitled ‘10 things I learnt from my bosses’, then followed it up with an apprenticeship recruitment
oinciding with national apprenticeship week, the Manchester event –
attended by over 30 guests – consisted of two elements aimed at
An icebreaker session at the Anglia YFN
“ It was a great turn out for the fi rst regional event of the year and a really interesting presentation, a real eye
opener. – Rachel Townsley, London East YFN
events in your area via www.bifa.org/events
8 | April 2024
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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
Policy & Compliance
UK to extend checks on sanitary and phyto-sanitary goods in April
Further post-Brexit changes await the industry this year bringing signi fi cantly increased potential for disruption at the border. Not only are there increased physical checks but also new validation processes between various government systems
T he UK’s exit from the EU was never going to be a single event but, as predicted, a series of minor departures from common policies, re-impositions of checks and barriers for goods and services coming from the EU or the introduction of new requirements and systems. Over the eight years since the referendum, the freight forwarding industry has experienced a number of policy changes and has learnt to use a flurry of new systems including GVMS, IPAFFS or S&S GB. Add to that the complexity of CDS, the system that arrived to replace CHIEF, and the picture one can see is that of continuous change together with an increased burden placed on the sector. The publication of the Border Target Operating Model (BTOM) in August 2023 added further impetus to the process but provided much needed clarity to the rollout of new UK policies for trade between the UK and EU. Consequently, 2024 seems set to be the year when the process will be completed, or at least be near completion. First phase of new controls This year has already seen the first phase of new controls on sanitary and phyto-sanitary (SPS) goods implemented at the end of January, which included the introduction of documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food and feed of non-animal origin (HRFNAO) from the EU.
Yet the January changes did not create a feeling of a major shift towards a more controlled environment. That was mostly due to the fact the changes did not require much additional activity from hauliers, freight forwarders or Customs agents. The changes that took place were mostly noticed by the actual seller and buyer, and vets issuing export health certificates in Europe. But further changes await the industry this year: from 30 April 2024 we will see the introduction of documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high- risk food and feed of non-animal origin from the EU. Existing inspections of high-risk plants/plant products from the EU will move from destination to Border Control Posts (BCP). Government will also begin to simplify imports from non-EU countries. This will include the removal of health certification and routine checks on low-risk animal products, plants and plant products from non-EU countries, as well as a reduction in physical and identity check levels on medium-risk animal products from non-EU countries.
What this means is significantly increased potential for disruption at the border. Not only will there be physical checks of certain categories of goods but also there will be new validation processes between various government systems, most notably CDS and IPAFFS. Data elements Specific data elements including weight, commodity codes and IPAFFS references declared in one system will be cross-validated against the other with very little room for error. Differently declared data or minor typing errors may potentially lead to a no-match scenario where a consignment may have to be presented at an Inland Border Facility (IBF) and/or a BCP. instructions, but also improved communication between various actors in the supply chain, will be key in avoiding system mismatches that potentially lead to delays at the border. Having touched on the importance of clarity of instructions and communication, it is concerning to see that the quality of guidance on how to, for instance, This in turn means that communication of clear
“ From 30April we will see the introduction of documentary and risk- based identity and physical checks on medium- risk animal products, plants, plant products and high- risk food and feed of non-animal origin from the EU
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Policy & Compliance
complete IPAFFS declarations is still lagging behind the expectations. Imprecise wording and confusing instructions all have a potential to exacerbate the above-mentioned risks. Statistics shared with BIFA at the time of writing this article show a high rejection rate of IPAFFS declarations. However, a multitude of reasons for these rejections make them difficult to address. Good quality guidance really is a must in achieving a functional border environment. Lack of legal clarity Another reason for concern is a lack of legal clarity about who is really responsible for lodging an IPAFFS declaration and the potential liabilities for agents involved in the process. It is commonly accepted that a person lodging an IPAFFS declaration should be established in the UK. Government guidance also commonly refers to a person responsible for the consignment, but when the secretariat asked for clarity on a legal definition, again, at the time of writing this article,
that clarity had not been given. This potentially raises a serious concern as freight forwarders and Customs agents completing IPAFFS declarations as agents on behalf of their clients do not know what their legal position is or its potential implications. BIFA understands that further legislation will be published in due course and that may clarify the above, but what is already clear is that UK establishment will be required for lodging an IPAFFS declaration. Will that mean that a UK established agent will in effect be obliged to lodge these declarations and share liability in a similar fashion to indirect Customs representation? That is not clear yet and BIFA will update Members when it is. And it is not all over yet as there are further changes awaiting our industry in 2024. From 31 October 2024, there will be a requirement for Safety and Security declarations for imports into Great Britain from the EU or from other territories where the waiver applies, as set out in the original Target Operating Model.
We expect the introduction of a reduced dataset for imports, as well as government assurances that use of the UK Single Trade Window will remove duplication where possible across different pre-arrival datasets – such as pre-lodged Customs declarations. That is yet to be seen though, as there are still many uncertainties surrounding the import process of controlled goods. Further guidance Safety and Security should certainly stay on Members’ radars and BIFA will be publishing further guidance on this topic. In April, Members are advised to review their processes, especially if moving SPS goods constitutes a part of their service offering. Preparation and good understanding of what is changing, together with good communication within the supply chain, will be crucial to weathering this mini storm. BIFA will provide Members with further guidance when such is available.
“ Another reason for concern is a lack of legal clarity about who is really responsible for lodging an IPAFFS declaration and the potential liabilities for agents who may be involved in the process
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Policy & Compliance
Why the CMA wants an end to liner cartel exemptions The UK Competition and Markets Authority has published the reasoning behind its decision not to seek replacement of the Assimilated Liner Consortia Block Exemption Regulation
T he UK Competition and Markets Authority (CMA) published its fi nal decision on 9 February 2024 not to recommend to the Secretary of State the replacement of the Assimilated Liner Shipping Consortia Block Exemption Regulation (the Assimilated CBER), which expires on 25 April 2024. The CMA and European Commission (the Commission) carried out separate reviews of the CBER. The CMA’s initial proposed recommendation was to replace the Assimilated CBER with a Liner Shipping Consortia Block Exemption Order (UK CBEO) when the Assimilated CBER expires on 25 April 2024.
In a reversal of its initial decision to retain a CBEO after the first stage of its consultation process, on 10 October 2023, the CMA published a provisional decision not to extent the Block exemption. On 17 November 2023, the Agency published results of the consultation on its October provisional decision to recommend that the Secretary of State for Business and Trade does not replace the assimilated CBER with a UK CBEO. On behalf of its Members, the British International Freight Association (BIFA) had submitted a 20-page response as part of the initial consultation.
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Policy & Compliance
were relatively small. This point was picked up by the CMA, which noted “the cost efficiencies to shipping liners of cooperation through consortia are sufficiently large to outweigh the costs of self-assessment under competition law”. The CMA’s fi nal decision The CMA’s final decision adopts the same framework as its provisional decision. The CMA stated that in order for it to recommend the replacement of the Assimilated CBER with a UK CBEO, two broad conditions should be met. First, there must be sufficient certainty that consortia agreements are likely to meet the conditions of the exemption in Section 9 of the Competition Act 1998 (CA 98) (Condition 1). The CMA stated that, given that the Assimilated CBER “provides an automatic exemption from competition law for a whole category of agreements, it is appropriate for the CMA to require a degree of certainty that consortia covered by the exemption are likely to meet the criteria for Section 9 exemption”. Secondly, there must be sufficient benefits brought by a block exemption compared with self-assessment under Section 9 CA 98 (Condition 2). On Condition 1, the CMA concluded that, based on the evidence it had received, it “no longer has sufficient certainty that consortia covered by the Assimilated CBER will produce efficiencies which outweigh their potential impact on competition”. The following are examples of evidence received by the CMA: • Price - The price of liner shipping services, and profits for liners, increased significantly during the COVID-19 pandemic. Stakeholders representing the users of liners’ services argued that the increases in prices and profits demonstrate that the Assimilated CBER had failed to distribute benefits to customers fairly. However, stakeholders representing liners contended that the price increases were due to other factors, including reductions in liner capacity due to delays at ports and increased fuel costs. • Frequency of services and range of port calls – Stakeholders representing liners’ customers submitted that liner consortia have resulted in reduced sailing schedules and fewer direct connections between ports. Conversely, the associations argued that the reduced sailing schedules and direct connections were due to the COVID-19 pandemic. • Concentration– Concentration has increased significantly in the global liner shipping industry. This has resulted in “an increased likelihood that separate horizontal cooperation agreements may involve participants that are common to multiple agreements”. On Condition 2, the CMA concluded that “creating a new UK CBEO as a sector-specific block exemption would give rise to insufficient benefits compared to a scenario where the consortia agreements that might be exempt under a UK CBEO are assessed according to the ordinary provisions of competition law”. In reaching this conclusion, the CMA had regard to the following factors:
“ The CMA concluded that... it “no longer has sufficient certainty that consortia covered by the Assimilated CBER will produce efficiencies which outweigh their potential impact on competition
Unfortunately, no Member was inclined to respond to the CMA, despite assurances that all responses would be treated as being ‘private and confidential’. BIFA again responded to the consultation on the initial decision and was supported by the International Federation of Freight Forwarders Association (FIATA); at this point one BIFA Member was brave enough to contact the CMA. By this time the Red Sea problems were commencing. The shipping lines did not help their cause by imposing retrospective surcharges on consignments that had already arrived in the UK. Unsurprisingly, respondents were divided along the lines of which sector they represented; BIFA, FIATA and the freight forwarder supported the CMA’s provisional decision not to recommend the replacement of the Assimilated CBER with a UK CBEO. Trade and other trade associations representing shippers took a similar view. Shipping lines and their representatives argued to the contrary. We argued that broader market developments mean that it is more appropriate to evaluate consortia on a case-by-case basis rather than providing for an automatic exemption. Market developments include the diversification of liners into other parts of the logistics market. Some associations argued that the cost of self- assessment compared with overall operational costs
Continued on Page 14
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Policy & Compliance
From Page 13
Department of Business and Trade urging that the CMA’s proposals are implemented in full as it will benefit the wider business in general. We can only hope that the government listens to the CMA’s carefully considered and reasoned arguments for ending the CBER. A meeting of BIFA’s Ocean, Road and Rail Policy Group discussed this subject in some detail. It was highlighted that due to their current market shares that the two Members of the soon-to-be-dissolved 2M Alliance would have limited scope to form new consortia. It was envisaged that the following would operate in 2025; • An Independent MSC • The newly formed Gemini Alliance • The Ocean Alliance • The Alliance. It will be interesting to see the market impact of these changes and whether some new lines could enter the market. Given the high capital costs of running a shipping line and current market conditions, the meeting remained unconvinced of there being any significant new entrants into the market. These proposed changes will not stop all disputes between lines and their customers; there will be ongoing arguments about quay rent and demurrage, etc, exacerbated by who charges whom. However, it is clear that the shipping lines will be under closer and more continuous scrutiny in both the UK and EU. In the UK, competition law will be applicable, and the belief is that the CMA will be monitoring the lines’ conduct, at least for the foreseeable future.
• Self-assessment - Many liners that operate as part of consortia are already required to self-assess because they exceed the 30% market share threshold. The CMA considered that the lapse of the Assimilated CBER would be unlikely to result in liners ceasing participation to a significant extent in consortia. In addition, the CMA stated that a multi- trade consortium may benefit from exemption under the Assimilated CBER where the combined market share of the participating liners does not exceed 30% in each of the markets in which the consortium operates. Stakeholders representing liners had disagreed with the CMA’s approach. They had argued that if the combined market share of members of a multi-trade consortium does not exceed 30% in an individual market, then the consortium may benefit from the block exemption in that particular market. • EU competition law – The CMA stated that all consortia currently serving UK ports also call at ports within the EU as part of the same service. If the UK replaced the Assimilated CBER with a UK CBEO in circumstances where the EU will let the CBER expire, liners operating services calling at both UK ports and EU ports would benefit from automatic exemption under UK competition law, but would need to self-assess under EU competition law. The CMA considered that it is “unlikely that the presence of a UK CBEO in the absence of an EU CBER would result in routes being redesigned so that they called exclusively at UK ports”. At time of writing this article, BIFA has written on behalf of its Members to the Secretary of State for the
“ These proposed changes will not stop all disputes between lines and their customers... However, it is clear that the shipping lines will be under closer and more continuous scrutiny in both the UK and EU.
14 | April 2024
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BIFA Awards
box and case was weighed and measured, contents were listed, commercial invoices prepared and expected duties and taxes calculated. “It was an awesome job. We often speak of this story; we know it is these lengths we should be prepared to go to for our customers and have a successful business as a result. This is a very competitive industry; you have to be prepared to do something different and go further for the customer.” Giving back Hogg’s ethos of going the extra mile extends beyond the business to embrace local and international concerns. For example, the company launched a period poverty campaign, donating thousands of packs of sanitary products to food banks in a bid to make them accessible to all in its hometown of Hartlepool. “You do not always think of sanitary products when you think of poverty. We truly believe it is not something that should hold back any female in education or careers. We also called on businesses to #pledgetoendperiodpoverty and offered to give them their fi rst baskets free, with over 30 local businesses joining so far,” Lyndsay Hogg con fi rmed. Clearly very focused on women’s rights, she noted that logistics is still a male-dominated industry, “but that is changing – and anyway, it does not make a difference as long as you know your job. People receive you the same no matter what gender you are.” Further a fi eld, Hogg organised a relief effort for the people of Ukraine, sending 10 trucks of medical supplies that were donated to its of fi ce. The scale of the project, which saw local volunteers helping to pack, sort and list all the items, led to Hogg taking over all the empty units in the building. Furthermore, she said, “it helped so many people on our doorstep to integrate back into society after COVID-19. The community spirit was amazing. “It does not always have to be about business: if you have got the skills to help others, it is nice to do it. I am a strong believer of that.”
Hogg Global won the first King’s Award for Enterprise in the whole Northeast of England
Taking a big-hearted approach to business
BIFA Extra Mile Award winner Hogg Global Logistics is a small family business that goes out of its way for its customers – and it does not stop there.
A s borders closed during the COVID-19 pandemic, many foreign students left the UK, travelling home with only a suitcase full of belongings. Many left behind the majority of their possessions, believing they would soon return. However, that turned out not to be the case, and when a medical university needed to return students’ belongings to them, it turned to Hogg Global Logistics for help. Remembering that initial phone call, Lyndsay Hogg, managing director at the Hartlepool-based company, said: “Hearing the distress in the lady’s voice we agreed to help her get the belongings back to each student as the university was contractually obliged to do. She told us many forwarders had already turned down the job. “We were taken to a storage unit that was piled high with suitcases and boxes – enough to fi ll at least three 40 ft containers.” With over a thousand individual items having to be delivered, duty paid, to different addresses around
the world, fi nding an agent or carrier to take on the job proved impossible – so Hogg was left with only one alternative. “We overwhelmed the local courier depot!” Lyndsay Hogg said. In order to ship each item this way, the company hired extra staff. Each
Above: Lyndsay Hogg: It does not always have to be about business: if you have got the skills to help others, it is nice to do it.
Extra Mile Award
Descartes gives international freight forwarders and shippers a single Customs Platform to import and export freight across international borders. Descartes’ customs, freight and transport management software is used by most of the major forwarders and shippers in the UK to optimise speed of entry with single data entry for multiple countries, boosting productivity and improving data accuracy.
16 | April 2024
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11-13 June 2024 NEC Birmingham UK
MULTIMODAL: SUSTAINABLE TRANSPORT, LOGISTICS & SUPPLY CHAIN MANAGEMENT EVENT FOR CARGO OWNERS Multimodal 2023 was the biggest and most successful event in its 16-year history. With over 320 exhibitors and 12,267 visitors, an increase of 25% on last year, it was a must-attend event for anyone involved in the supply chain industry.
Here are just a few of the reasons why you should exhibit at Multimodal 2024: • Reach a large and influential audience of over 12,000 visitors • Connect with new customers, partners, and prospects • Showcase your products and services to a captive audience • Stay ahead of the curve by learning about the latest trends in logistics • Network with other industry leaders
Multimodal continues to be an important event for Kuehne+Nagel UK, providing us with a unique opportunity to connect with our valued customers, strategic partners and industry organisations over a span of three days. Multimodal enables us to showcase and delve into key strategic topics, fostering engagement with the market through multiple interactions.
Another great #multimodal2023 event this week.
First of all, let me congratulate you on the delivery of a fantastic event. We were very happy and impressed with the levels of attendance and engagement, well done!
Contact us now for exhibiting and sponsorship opportunities www.multimodal.org.uk +44 (0)20 7384 7760 | multimodalteam@clarionevents.com
BIFA Awards
Pursuing opportunities to make a difference
shipments by sea rather than air or using rail rather than road for fi nal- mile delivery. cargo-partner offers CO 2 emissions tracking, and we can recommend carriers that use acknowledging the bad press the garment industry has received in recent years. Getting involved modern planes, which cut emissions,” she pointed out, Georgia has already travelled extensively within Europe and is keen to visit Asia, whose large export markets will be “eye- opening”, she believes. One aspect of travel that she values is the chance to meet different people and build relationships. Closer to home she is part of the BIFA Young Forwarder Network (YFN), which she described as “a great experience”. She chaired the network’s North West region in 2022-23. Having since passed on the baton, she advised other young people to make the most of the opportunities that arise. “Get involved in everything – fi ll your diary!” And Georgia has certainly done that. Besides becoming the youngest business development manager at cargo-partner, and participating in the YFN, she has completed sales and Customs courses and intends to do further sales training at cargo-partner’s headquarters in Vienna. Public speaking She also spoke at Multimodal 2023 on the topic of ‘networking with the next generation’ and was a panelist at the Future of Logistics event held by Seetec Outsource at the Greater Manchester Chamber of Commerce, where she discussed her personal experience as a woman in logistics. “I disagree that freight is a male world,” she said. “Women are as much of an asset as men – and at cargo-partner there are more women than men. “There is a lack of women on boards though; the industry becomes more male dominated the higher you go. But it is up to us to make a difference. Getting women onto boards should not be about ticking boxes.”
Georgia Gibson was highly commended in the BIFA Young Freight Forwarder of the Year category for 2023. Top of her agenda are sustainable logistics and the role of women in freight
O riginally, Georgia Gibson was interested in a career in fashion buying, but chose a logistics-related degree at the University of Hudders fi eld. She said: “Bethany Windsor from the Chartered Institute for Logistics and Transport came and spoke at the college where I was studying. She explained the supply chain route, from factory floor to consumer door, and suggested the Business with Supply Chain Management course would be perfect for me, given my interest in purchasing – and that I would come out with an actual job at the end of the course.” Industry introduction As part of her degree, Georgia spent a year working at Kuehne+Nagel. “My placement was a very helpful introduction to the industry. It really made me want to get more hands-on,” she said – and before she graduated with her First Class Degree in Business with Supply Chain Management, she had a job lined up at cargo- partner. While her dissertation related to pharma logistics, Georgia’s role at cargo-partner is connected with her initial area of interest. “I have gone down the fast-fashion route, importing clothes from southeast Asia and the Far East,” she said. “It is quite niche, but I have taken to it because I love fashion and I can relate to the people I deal with in this vertical. “There is a massive push on sustainable solutions in fast fashion now, such as sending
Above: Georgia enjoyed a tour with Virgin. Below: Speaking at Seetec Outsource’s Future of Logistics event.
Virgin Atlantic Cargo is proud to sponsor BIFA’s Young Freight 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 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. Young Freight Forwarder Award
18 | April 2024
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Policy & Compliance
Know your BIFA Standard Trading Conditions 2021 – Clause 24
This month BIFAlink looks at Clause 24 of the Standard Trading Conditions which provides Members with a defence against liability for all types of loss or damage
M any contracts and agreements have a force majeure clause that essentially frees either one party or both parties from liability when there is an extraordinary event or circumstance beyond the control of the parties. As an example, this could be a war, a crime, a riot or a strike. You will, no doubt, have also heard the legal term ‘Act of God’ describing an event such as flooding, an earthquake or similar natural occurrence. In practice, most force majeure clauses do not excuse a party’s non-performance entirely, but only suspend it for the duration of the force majeure. Clause 24 of the BIFA STC gives a BIFA Member defences under these circumstances. Clause 24: The Company shall be relieved of liability for any loss or damage if and to the extent that such loss or damage is caused by: (A) Strike, lock-out, stoppage or restraint of labour, the consequences of which the Company is unable to avoid by
“ It is important to note that Clause 24 can be overridden by compulsory legislation such as that concerning the international conventions
the exercise of reasonable diligence, or (B) Any cause or event which the Company is unable to avoid
part of its sub-contractor, and that the BIFA Member does not act as an insurer. It is important to note that Clause 24 can be overridden by compulsory legislation such as that concerning the international conventions referred to in the comments on Clause 2(B). Such international conventions may be more specific with regard to the BIFA member’s relief of liability, either by the imposition of duties or the granting of defences. Limiting acceptance of liability to wilful negligence, or only to when the goods are in the BIFA Member’s actual custody, are not attempted in Clause 24 because such limitations would be ineffective under the Unfair Contract Terms Act 1977.
and the consequences whereof the Company is unable to prevent by the exercise of reasonable diligence.
Comment on Clause 24(A) - (B) These are important clauses that set out the BIFA Member’s general defences. They supplement the indemnities in Clause 20. Clause 24 refers to all loss or damage and not merely loss of, or damage to, goods. It also indicates that the BIFA Member does not accept liability without fault on its part, or on the part of its agent, or on the
Which clause? Do you know your Clause 8 from your Clause 18? Sign-up to join the webinar on 10 April for the lowdown on the BIFA Standard Trading Conditions. Member Policy & Compliance Director Robert Windsor will guide Members through the most important clauses of the BIFA Standard Trading Conditions (STC) during this webinar. He will examine clauses relevant to both the BIFA Member and its customer, the warranties and responsibilities
Without incorporation and acceptance, the BIFA STC cannot provide protection to the BIFA Member, leaving the company open to a range of issues and potential costs. BIFA Members can register to attend this exclusive event by visiting: https://bifa.org/event/bifa-member- event-bifa-stc-webinar/ • By the way, Clause 8 details the Member’s right to exercise a lien, and Clause 18 requires that the customer shall indemnify the Member against loss or damage arising from the handling of certain goods.
applicable to each party and the limits of liability. However, the most important fact to remember is to ensure that the STC are properly incorporated into each contract.
April 2024 | 19
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