May 2022 The magazine of the British International Freight Association BIFA link Issue: 381 www.bifa.org
6: News Multimodal 2022 – Not long now 8: BIFA Awards Killick Martin navigates through Brexit red tape 15: Policy & Compliance Protecting against abandoned cargoes 17: Policy & Compliance Ensuring compliance with new EU road freight transport rules
DANGEROUS GOODS: competency-based training and assessment – Pages 10-11
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Robert Keen’s Column
The big issues are not going away
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
With the winter months now behind us and 2022 well and truly in full swing, across the freight forwarding and logistics industry we are seeing companies with new plans, new ideas and new agendas, whilst still facing many of the same operational difficulties that have been with us for some time. Much has been made over the past year of the supply chain ‘talent gap’, a pre- existing concern that was exacerbated by COVID-19 restrictions on the international movements of workers and then compounded by a generalised sense of restlessness among workers throughout the economy. BIFA is doing its bit to rectify this state of affairs, through our training department and our involvement in the ongoing development of the International Freight Forwarding
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Specialist Apprenticeship, as well as our schools initiative, about which you can read more on page 6. Much has also been written about the current state of the maritime supply chain, which continues to see record disruptions, unpredictability and sky-high freight rates, with freight forwarders being faced with moves by certain shipping lines to cut or restrict their access to services, and even compete head-on with the freight forwarding industry. Many stakeholders, including BIFA, have called for competition authorities to pay special attention to these developments to ensure all involved compete on the same level playing field and that competition is fair. Unfortunately, the response to our recent membership survey seeking your views on the current practices undertaken by container shipping lines, as well as your opinions on the easements and exemptions provided to those lines under competition law, was, to say the least, underwhelming. Especially so in light of the number of complaints the Secretariat has received from Members about the matter over the last few months. If you still feel strongly about the issue, I would urge you to take note of the request for information that has been made by FIATA, which is looking for examples of bad or unfair practices by the shipping lines that it can use to protect our industry and argue its case. FIATA needs samples and proof that it can put together and use in its arguments with the relevant authorities. See further details on page 7. Whilst on the subject of maritime transport issues, I would like to draw your attention to a very informative article on pages 15 and 17 of this issue about abandoned cargoes, an ongoing issue for many Members. As the article states, while the best defence lies in the original contractual arrangement, in some cases learning how to identify risks early is key to helping mitigate the fallout. More delays on the cards? Early April brought rumours that government is considering a further delay to the introduction of import checks on goods arriving from the EU, currently scheduled to be introduced in July 2022. At the time of writing this column, these rumours were being denied. The whole process of Brexit has seen a series of delays to the implementation of new processes and any further delays to the introduction of post-Brexit border checks on imports will simply postpone the inevitable and create even more uncertainty. BIFA will continue to encourage Members and the traders they serve to make sure they are as ready as they possibly can be for the additional formalities involved with moving goods across the UK’s borders. After so many delays with the introduction of import controls from the EU, BIFA Members need a clear commitment to future deadlines and an assurance that all the necessary staff, facilities and processes will be functioning and able to cope. 2022 is certainly shaping up to be another year of big issues for the freight industry and its customers. Massive disruptions to supply chains look unlikely to end any time soon, making an already challenging job that much more difficult for all involved in managing those supply chains. As always, BIFA will be here to deliver advice designed to help Members to handle these big issues. That is why, once again, we will be present at next month’s Multimodal Exhibition and Conference at the heart of the Forwarders Village, and I look forward to seeing as many of you as possible at our stand so that we can talk further about those many big issues. I must end my column this month with a clarification relating to the article on page 22 of the April issue of BIFAlink. In that article, certain specific words used in the BIFA Standard Trading Conditions were defined, but a recent change in terminology was overlooked. Following the UK’s exit from the EU the term ‘Representative’ has been replaced by ‘Customs Agent’; therefore throughout the article any reference to Direct or Indirect Representative should be read as Direct or Indirect Customs Agent. The online version of BIFAlink has been updated to reflect this.
email@example.com Executive Director Spencer Stevenson firstname.lastname@example.org Executive Director Carl Hobbis email@example.com Policy & Compliance Advisor – Customs Igor Popovics firstname.lastname@example.org Policy & Compliance Advisor – Air David Stroud email@example.com Editorial Co-ordinator Sharon Hammond firstname.lastname@example.org Communications Manager Natalie Pitts email@example.com Membership Supervisor Sarah Milton firstname.lastname@example.org
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Contributors Robert Keen, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Igor Popovics 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.
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
Zinc Media Group which will be released in partnership with Freight Industry Times this autumn. It will take viewers on a cinematic journey exploring who and what is driving change, via a series of short-form documentaries featuring stories from across the rail freight sector. Eurotunnel said that its freight service moved 139,283 trucks in March, up 13% compared with March 2021, which was due partly to the shutdown of P&O Ferries in mid-March. It added that since 1 January, nearly 375,000 trucks have crossed the Channel aboard its shuttles. IN THE WAREHOUSE The UK warehousing sector has almost doubled in size over the past decade, fuelled by Brexit, the pandemic and the rise of online shopping, according to a report by the Office for National Statistics. However, some observers flagged concerns that the data did not include retail players and wholesale logistics users such as Amazon, Tesco and DHL. IN BUSINESS More than one third of businesses believe that the move to online shopping seen during the COVID- 19 pandemic is now a permanent shift, according to research from supply chain and logistics consultancy SCALA. It found that 36% of companies believe that e-Commerce will now remain at the inflated levels seen during the COVID-19 pandemic. Take a look at the news area of the BIFA website to find out more about how you can help support the Lancaster Environment Centre, based at Lancaster University, with its short research project running until the end of June. The project is trying to understand the current challenges faced by haulage/freight businesses, focusing on traffic in and out of the port of Liverpool to give it some specific place and infrastructural focus.
Box shipping spot rates have peaked, say analysts
ON THE OCEAN Analysts reported in early April that container shipping spot rates are on the decline in 2022 due to lower consumer demand, full inventories at the start of the post-Chinese New Year lean period, and COVID- 19 related shutdowns in China. This suggests that rates have peaked even before the industry’s newbuilding efforts begin to provide the expected dramatic increases in capacity from late in 2023. MSC may have a larger overall container fleet capacity than Maersk, but the latter retains its number one position when ranking shipping lines by their potential reefer carrying capacity, according to Alphaliner. It also reported that final operating profits for the top-10 carriers under its survey of shipping operations reached US$115 billion last year. The global inactive containership fleet has exceeded 700,000 teu in terms of overall capacity, Alphaliner reported at the end of March. This was the highest level recorded since late 2020. Alphaliner added that this reflects the typical upswing
in vessel drydocking commonly observed prior to the summer peak season. Skyrocketing demand for container capacity along with pending environmental regulations, which are ageing out older segments of the industry, have been driving strong order volume for containerships. BIMCO says that the containership orderbook has now surpassed 6.5 million teu for the first time in 15 years. IN THE AIR Global air cargo market demand in February, measured in cargo tonne- kilometres, was up 2.9% compared with the same month in 2021 (2.5% for international operations), according to data released by IATA. This was a result of manufacturing activity being ramped-up quickly after the early February Lunar New Year holiday, whilst capacity was positively influenced by the general
The Court of Justice of the European Union has upheld multimillion-euro fines against several major airlines, including Air
France-KLM, Cargolux and Singapore Airlines, for their
participation in an international air cargo cartel that first started more than two decades ago and was active for just over six years. ON THE QUAYSIDE Peel Ports Group, has entered into a partnership with the University of Liverpool’s Management School to improve its newly formed Innovation Forum, which aims to answer some of the port operator’s most challenging questions in its efforts to reduce carbon emissions. In response to growing customer demand for container storage, Maritime Transport has established a long-term agreement with ABP to operate a 6-acre loaded container storage facility at the port of Ipswich. OVERLAND The Rail Freight Group is producing ‘Rail Freight: Fit for the Future’, a documentary series produced by
and progressive relaxation of COVID-19 travel restrictions,
reduced flight cancellations due to Omicron-related factors (outside of Asia), and fewer winter weather operational disruptions.
The biggest change in nearly 30 years is happening in our industry over the next 5 months.
CDS is replacing CHIEF for import customs declarations at the end of September 2022. In times of great change and upheaval, you look to who stands beside you and with you. ASM is guiding and partnering more than 500 freight forwarders through migration to CDS.
Who s partner?
ASM. Here today. Here tomorrow.
Let us know if you would like a conversation. firstname.lastname@example.org
Notice of Annual General Meeting
Promoting freight forwarding
BIFA attended the careers fair at Fullbrook School in Surrey during March to promote opportunities within the freight forwarding and logistics industries as an option for students. Sharon Hammond, Events & Communications executive, explained the relevance of the industry to everyday life through the concept of “My international shopping basket”, which contained food and drink from around the world, toiletries from various European countries and electronics from the Far East. The logistics involved in international sporting and leisure events, such as the Formula 1 series and music tours, were also discussed in an effort to pique the interest. The school had attracted in excess of 50 exhibitors to the event which was attended by around 500 students and their carers. A steady stream of students visited the BIFA stand during the evening and went away with information on an industry that had not previously crossed their minds. Perhaps your local secondary school has plans for a similar event; why not get in touch with it to offer your time and contribute to the future of the industry.
Notice is hereby given that the 33rd Annual General Meeting of the British International Freight Association (BIFA) will be held on Thursday 26 May 2022 at 12:00 pm by videoconferencing in order to: 1. Receive the report of the Board of Directors. 2. Receive the accounts for the year ended 31 December 2021 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. Robert Keen, Director General, 30 March 2022 A BIFA Member may nominate an attendee, although there will be a limit on numbers once a quorum is achieved. Please email email@example.com Note: Any Member entitled to vote at the above meeting may appoint a proxy to vote on a poll in his stead. A proxy need not be a Member of the Association. A form of proxy is available to download from the BIFA website www.bifa.org Don’t keep it to yourself Not your copy of BIFAlink? Register for your own copy by contacting Sarah Milton in membership firstname.lastname@example.org or visit www.bifa.org/bifalink for a digital version. BIFAlink is the magazine of the British International Freight Association and is distributed free to Members.
Take a look at the ‘Career Day Kit’ and ‘Schools Engagement’ information at https://apprentices.bifa.org/
Multimodal 2022 – not long now!
The Multimodal 2022 exhibition takes place at the NEC, Birmingham, from 14-16 June when BIFA will have a prime position at the centre of the BIFA Forwarders’ Village. Over 15 years, Multimodal has firmly established itself as the premier freight transport, logistics and supply chain management event in the UK, Ireland and Northern Europe, bringing together shippers, retailers, manufacturers, wholesalers, importers and exporters with exhibitors who offer the latest logistics and supply chain solutions. Multimodal offers a unique opportunity to make valuable face- to-face contact with new prospects and existing companies. Year on year, shippers and cargo owners attend to improve their businesses by finding ways of moving their products more efficiently and by meeting new suppliers. In addition to meeting the numerous exhibitors present, there is the opportunity to attend the free seminar programme covering
subjects from the Border Operating Model, the environment & decarbonisation, global trade and apprenticeships – find the full seminar schedule at www.multimodal.org.uk/exhibition/ seminars-2022 The BIFA Forwarders’ Village consists of the central BIFA stand surrounded by 36 Logistics Provider Pods (LogPods), an ideal destination for cargo owners looking for a freight forwarder with which to work. At the time of writing there were a limited number of
LogPods still available – contact Robert.email@example.com to reserve your space. Scan here to register to visit Multimodal 2022.
Seetec Outsource named Transport and Logistics Apprenticeship Provider of the Year
Warehousing: considering the risks Whether you are already operating a warehouse or are considering doing so for the first time, there are a range of risks to be addressed in the set-up and day-to-day activity. Recent changes in supply chain thinking, with just-in-time models being reassessed, have led to an increase in demand for local warehousing capacity and additional services that may be met by the freight forwarder. In March 2022, TT Club released a TT Brief considering warehouse risks – www.ttclub.com/news-and- resources/news/tt-talk/2022/tt- talk---tt-brief-warehouse-risks/ . This lists a variety of risk factors including the control of flood and fire risks, security and cargo theft, cargo damage, personal injury, and maintenance and repair of the premises.
A large number of the apprentices attending BIFA training courses as a part of their International Freight Forwarding Specialist (IFFS) apprenticeship are managed by Seetec Outsource, so BIFA was pleased to note that it has been recognised for its work in our industry sector. In March, Seetec Outsource was for the second time named Apprenticeship Provider of the Year for Transport and Logistics at the FE Week and AELP AAC Apprenticeship Awards. The awards are a celebration of excellence in vapprenticeship delivery and are a highlight in the apprenticeship sector calendar, attracting providers, colleges, employers and apprentices from across the UK. Seetec Outsource, part of the employee-owned Seetec Group, was announced as the winner for the
popular Transport & Logistics category, one of 15 awards recognising excellence in apprenticeship provision. To find out more about Seetec Outsource, visit: www.seetecoutsource.co.uk/programme- sector/transport-and-logistics/
FIATA request for information
In order for FIATA to protect our industry and to argue our case, it needs examples and proof. The federation needs practical examples that can be put together
and used in argument. For this purpose, FIATA kindly asks you to provide feedback on market development and shipping line practices that are considered as
being unfair. Your contribution will be kept absolutely confidential. Please use the below format and send it to firstname.lastname@example.org
Contract agreements were one sided cancelled, forcing us into the sport market. We consider this as discrimination
and abuse of the currently dominant position.
Waiving demurrage and detention charges for containers in carriers’
Demurrage and detention charges have been offered to be
waived on condition that the line is arranging the
on-carriage in carriers’ haulage
Providing bookings only subject to pre-carriage in
The line spot rate tool was not able to provide a booking subject to the option of ‘merchant haulage’. The same request subject to the option ‘carrier haulage’ provided a booking without problems
By air – Warsaw Convention (17 SDR): £17.76 per kg
By sea – Hague Visby rules (2 SDR): £2.09 per kg £696.36per package
BIFA STC: (2 SDR): £2.09 per kg
By road – CMR (8.33 SDR): £8.70 per kg
(The SDR rate on 14 April 2022,
By air – Montreal Convention (22 SDR): £22.98 per kg
according to the IMF website, was 1.04453)
Many of the products Killick Martin moves on behalf of its client are hazardous and require specialist documentation, handling and packing
EUROPEAN LOGISTICS AWARD SPONSOR
“We introduced a three-person ‘hyper care’ team that collectively provided 24/7 availability and service to our client and its EU customers and suppliers, and a Customs team with outsourced capabilities throughout Europe,” Gallagher said. A complication of Brexit – exacerbated by COVID-19 – was the shortage of truck drivers either based in the UK or willing to risk long Customs delays by taking work on Europe-UK routes. “On many occasions, we were able to circumnavigate driver issues by convincing the overseas customer either to combine orders, or to increase the size of an existing order,” Gallagher said. “By increasing the volume of certain shipments, we introduced more flexibility, with full load traffic enabling us to use unaccompanied services including shortsea and railfreight movements.” Killick Martin also identified and eliminated waste in the supply chain. “We smoothed flows by trying to avoid bottlenecks at points where the transport mode changes. If multiple ISO tanks were loaded onto a vessel arriving on a Friday evening or Saturday, nothing would happen with them until the following Monday; and if they all turned up on site at once, they would not get tipped because everything has to dovetail with other activities. Meantime, there would be a lack of empties back at the load point and delays at a railhead.” Gallagher added: “We introduced SharePoint sites so everyone can monitor where their product sits in the supply chain and we take early action or contingencies. It is not rocket science – between us, we already had the software and the will to make it work, so we just had to create trackers.” Gallagher attributes Killick Martin’s ability to overcome challenges to two key factors. “It is a mixture of being prepared to put the work in and having open communication channels between willing partners. I think we have built a lot of trust that way,” he said. The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. As a mutual insurer, TT Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a worldwide office network providing claims management services, and first-class risk management and loss prevention advice.
Paul Gallagher, managing director of Killick Martin
Killick Martin navigates through Brexit red tape
The winner of 2021’s BIFA European Logistics Award was Killick Martin & Company, which reacted quickly to provide a ‘hyper-care’ solution for a key customer facing new challenges in the wake of Brexit
than hoped, he explained. Meanwhile, to protect its commercial position, the client had agreed to new terms of shipment for every customer and supplier, which meant that it was responsible for taxes and Customs formalities in the EU. Having changed terms to DDP for exports and Ex Works for imports, it suddenly found many established supply routes had become much more complex – and called on Killick Martin to handle all of its European logistics business: around 3,000 shipments per annum. Solutions Killick Martin made a plan for each flow of traffic, according to country, export port, destination and transport mode. Instructions of post-Brexit processes were provided to all key EU customers, product suppliers and stakeholders. In order to cope with the sudden threefold increase in volumes, the team set up some routings with providers who would deal with the client directly. Killick Martin handled the rest (including the more sensitive shipments) itself using high-performance carriers.
Killick Martin secured a contract at the end of 2020 to provide ocean and air freight services for one of Europe’s largest producers of performance additives, water treatment and flame retardant chemicals – many of them hazardous. The agreement covered 1,000 shipments per annum and was all set to begin in January 2021. According to managing director Paul Gallagher, each product line requires full technical specification plus specialist documentation, handling and packing. Many are subject to European ADR regulations. However, he said: “The biggest problem was that we had spent 14 months preparing for this contract incorporating the impact of Brexit changes and, virtually at the last minute, the requirements changed.” The Brexit agreement created a harder border
Policy & Compliance
Dangerous Goods training is changing. The 62nd edition (2021) of the IATA Dangerous Goods Regulations (DGR) adopted revised provisions for dangerous goods training to incorporate a competency-based training and assessment (CBTA) approach that will become mandatory for dangerous goods training from 1 January 2023 Dangerous goods: competency based training and assessment
Three reasons why dangerous goods training is important: • To ensure health and safety; • Regulation compliance; • Efficient operations. What has changed in dangerous goods training for air transport? While the framework of the training requirements in the ICAO technical instructions and IATA DGR has changed from category-based to competency-based, the principle of creating a competent workforce to perform assigned function(s) has not. The revisions emphasise more the importance of a person to be trained and assessed and able to demonstrate his or her competence.
Continuous assessment of competency The technical instructions currently require the provision of assessments following training to verify understanding. While this conventional approach is useful in determining the degree to which dangerous goods personnel may understand the material, it should not be the only activity that an employer utilises to assess an employee’s competency in an assigned function. By applying a competency-based approach, standards of performance expected of personnel are established. Once established, these standards support the development of appropriate assessment to ensure that personnel not only understand the subject matter involved in their job, but also have the required skills and knowledge to carry out their functions in compliance with safety standards.
Policy & Compliance
Concentrating on functions and respons- ibilities rather than a job title or description means that the training provided ensures that a person is competent to perform the function
fulfilled when designing the training; 2. An assessment plan providing the process and tools for gathering valid and reliable evidence at different stages during training; 3. A training plan describing the training required to achieve the competencies; 4. Training and assessment materials, and any other organisational resources, needed to implement the training and assessment plans; 5. A programme evaluation report.
What are the competency factors and levels of proficiency?
A competency is a dimension of human performance that is used to reliably predict successful performance on the job. It is manifested and observed through behaviours that mobilise the relevant knowledge, skills and attitudes to carry out activities and tasks under specified conditions to achieve a particular level of proficiency. Performing a dangerous goods task may require different levels of knowledge, skills and attitude, depending on the complexity of the specific task and the operational environment. A level of proficiency should be developed to determine how critical the employee’s knowledge, skills and attitude are for the successful completion of a task. Therefore, to determine the relevant level of proficiency of an employee’s competency factors, the employer should consider the complexity of tasks and context, the range of work (routine, predictability and dependencies) and the level of autonomy of the employee in performing the tasks. What are the benefits of competency-based training and assessment for the safe transport of dangerous goods by air? The main benefit of a competency-based approach to training and assessment is its potential to encourage and enable personnel to reach their highest level of capability while ensuring a basic level of competence as a minimum standard. This is achieved by: • Targeting function-specific training needs. • Supporting continuous learning and performance improvement. • Gearing towards learning rather than simply passing a test. • Ensuring the integration of knowledge, skills and attitude needed to perform a job at the required level of proficiency. • Supporting the application of safety management systems (SMS); • Establishing sufficient, well-trained and competent trainers. This CBTA approach will become mandatory for dangerous goods training as of 1 January 2023 and will be adopted by UK CAA approved training providers.
What is competency-based training and assessment for the air transport of dangerous goods? The goal of competency-based training and assessment is to produce a competent workforce by providing focused training. It does so by identifying key competencies that need to be achieved, determining the most effective way of achieving them and establishing valid and reliable assessment tools to evaluate their achievement. Concentrating on functions and responsibilities rather than a job title or description means that the training provided ensures that a person is competent to perform the function in compliance with Subsection 1.5. of the IATA DGR. For example, ground service providers may perform some functions that are related to the handling of dangerous goods at the direction of operators. The ground service personnel must be trained to perform the assigned functions competently, regardless of their job title. Therefore, the following components are essential for forming a competent workforce for the safe and efficient transport of dangerous goods by air: 1. A training specification that describes the purpose of training, the task list and the requirements that must be
More details can be found at: https://www.iata.org/en/publications/newsletters/iata- knowledge-hub/
Starting from scratch In the 2021 BIFA Awards, BIFA presented a Special Recognition Award in the Young Freight Forwarder category for the first time. It went to Corey Chambers, whose success in setting up a brand-new service impressed colleagues, customers and the BIFA judges alike
YOUNG FREIGHT FORWARDER OF THE YEAR AWARD SPONSOR
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 our industry.
Since joining Ital Logistics in 2016, Corey Chambers has never looked back. “Ital was one of my customers where I worked before,” he said. After moving to Ital, “I bounced around various departments until 2017, when the opportunity arose to start a French service from scratch”. Originally starting with cargo to the Lyon and Marseille areas working with Fatton Transports, he soon set up a similar operation with a partner in Paris so as to serve the whole of France. Between MTLS and Fatton, Corey now has a strong, competitive service that can also cover Morocco and Tunisia. “When I started the French service, I questioned whether I was good enough,” he said. “To think back to that and see what we have achieved is amazing; I thought we would get there eventually, but we have already surpassed some other services in terms of profitability. “In February 2021, I was promoted to French route manager due to the hard work and long hours I had put into the service.” Expansion Corey also inherited Ital’s Portuguese service from its Iberian department and implemented a change in partner in the Porto region in 2021, in order to provide a top-level service with Customs included. Furthermore, he has successfully expanded the French service into Germany and the Benelux region – where long transit times and late deliveries have been a source of frustration. Ital’s entry to the market has therefore been welcomed, with some of its existing customers elsewhere coming on board. “It is early days, but it is going well so far,” he said.
Corey's daughter waves to the camera while out hiking with her dad
Training new staff When BIFAlink spoke to Corey in late February, he was about to welcome a new team member and was excited about training him up. He will also be heavily involved in training three new apprentices at Ital. Corey and one of his colleagues are determined to mentor apprentices until one of them wins BIFA’s Apprentice of the Year Award, he joked. Meanwhile, Corey gained an assistant in 2021, who has “come on in leaps and bounds” under his guidance and allowed him to focus more on development. As for his own learning, Corey has set himself the goal of speaking French by the time he reaches the age of 31 – and who knows, perhaps other languages besides. “I want to be able to show our customers I am making the effort,” he said.
Corey’s ambitions to grow the services under his direction have come to fruition since he won BIFA’s award for Special Recognition in the Young Freight Forwarder category. “Even though I did not win the actual YFF Award, people were really rooting for me and it was great to have their support,” he said. “In the next 10 years, I would like to become a director at Ital.” Asked what qualities he feels are most important to succeed in logistics, Corey considered: “If I was to give advice to other young people starting out in the freight business, I would say take your time, stay calm and think about things rather than panicking or rushing into decisions. If you build good relationships, everyone can help each other.”
SAVE THE DATE 14 - 16 JUNE 2022 NEC BIRMINGHAM
Free to attend
We have already quoted on several jobs and made some fantastic new contacts. We also met with existing customers and was able to have a face to face conversation for the first time in a long time. We have already rebooked for next year. Joanne Gumery, Warehouse Commercial Manager
Multimodal 2022 celebrates 15 years of placing shippers, retailers, wholesalers, importers and exporters in front of exhibitors who offer the latest logistics and supply chain solutions. Whether you are a forwarder, 3PL, shipping line, haulier, port or equipment supplier, Multimodal offers a unique opportunity to make valuable face to face contact with new prospects and existing companies. LOGISTICS & SUPPLY CHAIN MANAGEMENT FOR CARGO OWNERS
Howard Tenens has met some of its largest customers over the years at Multimodal which is why we continue to exhibit each year. We are already counting down to the 2022 show! Elliot Ashton, Development Manager
Multimodal is a great place to meet up with customers and find new ones. Our return on investment has been excellent.. Tony Shally
EXHIBITION SEMINARS NETWORKING AWARDS
Contact us now for exhibiting and sponsorship opportunities www.multimodal.org.uk/exhibition +44 (0)20 7384 7760 | email@example.com
Policy & Compliance
the freight forwarder is willing to take those risks in what are increasingly turbulent times. The simple lesson is that too many bookings are regarded as simply a ‘job’ and staff do not pay sufficient attention to commodities being shipped and the routing. All consignments should be regarded as a ‘contract’ and subject to due diligence before being accepted. It is essential that Members ensure that they have clear acceptance procedures which incorporate BIFA terms into the forwarding contract. It should be remembered that consignments can be rejected at the time of booking. Looking back through our records it is clear that certain types of goods are more likely to be abandoned than others. These tend to be low value items of fluctuating value; however, we have seen relatively high value consignments abandoned for a variety of reasons. Given recent international troubles, sanctions and embargoes imposed between the time of goods being shipped and arrival at destination have become increasingly common problems. As we have seen, certain commodities present greater risk – and may be influenced by geographical or seasonal conditions. Being alert at the outset of the booking process may reduce exposure. Experience will complete your list, but here are a few commodities commonly presenting higher risk: • Waste – all kinds including fabric, paper and wood, • Scrap – metals, plastics, wood, • Cargoes intended for recycling – often waste shipments with an alternate descriptor, • Used computer equipment, • Used tyres,
Abandoned cargo Abandoned cargoes are a continuing issue for many Members. While the best defence lies in the original contractual arrangement, in some cases learning how to identify risks early is key to helping mitigate the fallout
In the maritime environment one of the most frequently asked questions relates to the handling of abandoned consignments. BIFA always encourages Members to monitor the final delivery of consignments, particularly those shipped on a FCL or DDP basis. Based on experience, consigning shipments to an agent at destination seems to minimise this particular risk. Shipping lines have large departments dealing with abandoned cargoes and, referring to the ‘Merchant Clause’ included in their terms, will often seek to recover quay rent and demurrage costs at origin. This explains why it is so important to try to monitor the clearance and delivery of shipments from arrival port to final destination in order to avoid unwelcome large invoices. Substantial costs Abandoned cargo is not a new challenge. Every year, delivery delays or failure of the consignee to collect cargo results in substantial storage, container demurrage and container detention costs. If the freight forwarder’s customer has ceased trading, very often the shipping line will pursue the freight forwarder, who may have booked the cargo with the carrier, for the outstanding monies. The best defence often rests in the original contractual arrangement, whereby the forwarder can argue that it has acted as ‘agent’, putting the shipper and line in a direct contractual
arrangement. In this scenario the freight forwarder should be able to argue that because there is no contract between it and the shipping line, it is not liable for any charges. Recently we have seen lines starting to present letters of indemnity to, in particular, import Customs agents making them liable for all related costs at destination. BIFA’s guidance is that these indemnities should not be signed, pointing out to the shipping line that when acting as a Customs agent you are not party to the shipping contract and thus, in law, you are not liable for these charges. However, there may be occasions where there is no legal or contractual way to escape liability or recover the costs associated with abandoned cargo, including container demurrage, port storage, disposal costs or fines. Often these will relate to scenarios where the freight forwarder is in a direct contractual relationship with the shipping line. As a result, learning how to identify risks early to help mitigate the inevitable fallout is key. Commonly, BIFA recommends establishing effective due diligence procedures and developing specific processes to identify suspect shipments in order to stay one step ahead. Early detection and proactive management reduce losses. However, in the complex logistics supply chain such things are not always straightforward. In many ways it is a question of risk and whether
• Perishable items, • Personal effects.
Tightening regulations It should be remembered that countries are increasingly tightening their regulations regarding what type of waste is accepted for re-processing and, given its value, if refused by the consignee very often the consignor will not be willing to accept the cargo being returned to it. This problem was greater when freight rates were much lower. However, certain metals have appreciated in value resulting in a continuing issue. In addition, we hear from Members encountering issues when cargo containing misdeclared, counterfeit or prohibited items is abandoned. Having spoken to many BIFA Members that have dealt with such scenarios, they are surprised that legitimate trade is being used in this manner to facilitate what is clearly criminal activity. Often a Member says to the BIFA Secretariat
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Policy & Compliance
Ensuring compliance with new EU road freight transport rules
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something like: “Well I have been paid in advance for the shipment so did not expect problems.” At least for identified high risk commodities, and preferably all FCL shipments, BIFA recommends that Members track those shipments and ensure that they have been cleared and collected from the quay. If this does not occur, early intervention to minimise costs should be undertaken, including contacting the shipper and putting it on notice that it is liable for all costs associated with abandoned cargoes. When dealing with such a scenario, it should be remembered that the shipper may not have funds sufficient to cover the costs of returning the goods to origin, particularly if those exceed the value of the goods. Another point to consider is contacting your insurer, whose claims professionals can assist in preventing excessive costs being incurred. We would also suggest speaking to the relevant carrier as often it will be willing to reach a ‘commercial’ arrangement to minimise the costs. Additional risks So far we have examined the commercial risks impacting freight forwarders. However, the TT Club has highlighted a much more serious issue. In August 2021, stored ammonium nitrate fertiliser exploded at Beirut port in Lebanon, killing more than 200 people, injuring 6,500 and devastating parts of the city. The dangerous stockpile had been neglected at the Beirut port for years. In the aftermath of the deadly blast, port authorities revealed that another 50 abandoned containers filled with hazardous chemicals had been discovered in an open-air storage yard. They had been languishing (and deteriorating) at the port for more than a decade – these consignments were all abandoned cargoes. This should serve as a wake-up call to all in the supply chain to ensure that consignments are correctly and promptly handled until final delivery. In all probability, the issue of abandoned cargo will never be resolved but it needs to be better managed. The main problem for our Members usually commences when they receive a communication from a shipping line regarding the abandoned cargo, a request for disposal instructions and an advice holding the origin freight forwarder liable for a large sum covering quay rent and demurrage.
Some advice on how to navigate the EU’s new and inconsistently applied road freight regulations
BIFA has received several enquiries from Members about new road freight regulations that are being implemented across the EU. Although the UK is no longer an EU member, when operating within EU borders or contracting EU entities to undertake work for them, UK companies have to comply with the relevant regulations. This is certainly true of the Mobility Package which was adopted in July 2020 and has introduced important changes to the road transport, social and market access legislation. The main changes concerned: • Driving and resting times, • Access to the market and cabotage operations, • EU legal framework for posting of workers. The rate of implementation of the new regulations varies between member states and, as individual countries have to establish criteria under national law to certify compliance, we are likely to see legislative variations and different penalties for non-compliance. Legal responsibility The legal responsibility to comply with these new rules remains, as previously, mainly with the road haulier. However, there are significant legal provisions included in the legislation to hold the transport buyer responsible when it “knew or ought to have known” that the legal framework would be, or was, violated by the road haulier. From the UK perspective, enforcement is further complicated by withdrawal from the EU, especially with regards to taking legal action against the transport buyer for non-compliance. Article 5 (1) of the Lex Specialis introduces the concept of joint liability of transport buyers in the case of infringement to the posting rules by the road haulier: “Member states shall lay down rules on sanctions against consignors, freight forwarders, contractors and sub- contractors for non-compliance with national provisions adopted pursuant to Article 1, where they knew, or, in the light of all relevant circumstances, ought to have known, that the transport services that they commissioned involved infringements of those provisions.” The regulations place a legal obligation on
the freight forwarder as transport buyer to verify that the drivers are paid at the minimum levels where the transport activity is performed. There is, in addition, an obligation to ensure that the registration of drivers is performed by the road haulier. Based upon information received from CLECAT, which represents freight forwarder interests in the EU, BIFA recommends that Members engaged in EU road freight movements limit their liabilities by following this guidance: • Regular (annual) signing of a letter of legal requirement by the road haulier. • Check the national rules on sanctions for freight forwarders in case of infringements of posting rules (available on member states’ posting websites). • Check the minimum wages applicable to drivers in each EU member state where a commissioned driver is posted. • Request the road haulier to send examples of payslips of the posted driver. • Request the road haulier to prove the submission of the posting declarations on the public interface. As we have highlighted, implementation of the new regulations is inconsistent throughout the EU, and in some instances there are no mechanisms to monitor or ensure compliance. Some observers believe that effective enforcement of these regulations will not be possible until the new Smart tachograph version 2 is introduced. In the EU, it will be mandatory to fit these for newly registered vehicles as of 21 August 2023 and for all vehicles involved in international transport as of 21 August 2025.
The author acknowledges information provided by the TT Club and used in preparing this article.
Know your BIFA Standard Trading Conditions – clause 2
CLAUSE 2 2(A) Subject to sub-paragraph (B) below, all and any activities of the Company in the course of business, whether gratuitous or not, are undertaken subject to these conditions. (B) 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, and nothing in these conditions shall be construed as a surrender by the Company of any of its rights or immunities or as an increase of any of its responsibilities or liabilities under such legislation, and if any part of these conditions be repugnant to such legislation to any extent, such part shall as regards such business be overridden to that extent and no further. Clause 2 (A) should not need further explanation as it clearly states the BIFA Member undertakes all work he does for his customer subject to the STC. Clause 2 (B) Clause 2 (B) is a very important clause and it includes the following two elements or limbs: • The BIFA STC can be overridden by compulsory legislation. • Where such compulsory legislation favours the BIFA Member, more so than the BIFA STC, then there is no surrender of such more favourable rights or immunities. Continuing our examination of the BIFA Standard Trading Conditions (STC) we look this month at clause 2, which is split into two limbs. The explanation of clause 2 (B) will be split over this issue and the next issue of BIFAlink due to space constraints
derived from judge-made decisions and even some of those decisions made in the 17th and 18th centuries are still valid in the 21st century under English law. Contract terms Common law can be modified or overridden by contract terms and that happens when the BIFA STC are incorporated into contracts. Restraint on modifying common law by standard trading conditions is imposed by the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contract Regulations 1999 SI 1999/2083, because if standard trading conditions contravene that legislation, they are ineffective. However, both common law and contract law are overridden by statute law enacted by a British Act of Parliament (‘Act’), by an Order or
Regulations enforced by Statutory Instrument (‘SI’), by powers given in an Act, or possibly foreign law. A Company cannot opt out of or disregard compulsory legislation. However, Clause 2(B) stresses that such legislation applies only to the extent that it is repugnant to the BIFA STC and that the company is not surrendering rights or immunities under such legislation. For example, with regard to the time limit for the notification of a claim, an international convention incorporated into English law may be more favourable to the BIFA Member than the BIFA STC. Next month we will continue to examine Clause 2 (B) and look at the international conventions for the carriage of goods that concern a BIFA Member.
The general rule is that common law is overridden by contract law. Common law is
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