BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
November 2022 The magazine of the British International Freight Association BIFA link Issue: 387 www.bifa.org
EU introduces Import Control System 2
INSIDE
7: News Supporting your local school’s career events?
8: Policy & Compliance
Monitoring regional airport development 16: Policy & Compliance An update on clean air zones
– Pages 12-13
22: BIFA Awards 2022 Finalists announced
Follow us @BIFA
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Robert Keen’s Column
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WTO warns of ‘strong headwinds’
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
In early October, a report released by the World Trade Organization (WTO) predicted that global merchandise trade will grow next year at a much more subdued pace than previously expected, with “strong headwinds” battering the world’s major economies while poorer nations face food insecurity and debt problems. Those points, and others, prompted the WTO to revise its forecasts for global commerce for this year and next. While the WTO raised its projection for global goods trade growth to 3.5% this year from a previous estimate of 3%, the figure next year will be just 1%. That is a big downward revision from its previous estimate for global goods trade in 2023 to expand 3.4%, and will not be welcome news to BIFA Members who are, to a large extent, responsible for managing the supply chains that underpin global goods trade.
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(A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363) Director General Robert Keen r.keen@bifa.org Executive Director Robert Windsor, Policy & Compliance – Surface & Legal
Among the potential drags on activity that the WTO foresees are the fact that major central banks are already raising interest rates in a bid to tame inflation, but overshooting on tightening could trigger recessions in some countries, which would weigh on imports. The WTO also said that risks to the forecast remain “numerous”, including an escalation of the Russia- Ukraine war, and an “under-appreciated risk” of a decoupling of the USA and China. The Ukraine war increased prices for energy by 78% and food by 15% in August versus the same period a year prior, noted the WTO, although it also said that container throughput improved this year as port congestion and supply disruptions in the USA and China eased. Certainly, the container shipping sector continues to focus minds. The October edition of BIFAlink brought a report on how the UK Competition and Markets Authority is set to review and consult on the liner shipping Consortia Block Exemption Regulation (CBER), as the European Commission considers renewing the regulation that enables current container shipping alliances to operate, ahead of the expiry of the existing CBER on 25 April 2024. Last month saw container shipping operators once again locking horns with shippers and forwarders, with the World Shipping Council (WSC), which represents liner operators, saying in a statement that the CBER is an essential regulatory tool that yields significant benefits to the EU, with no downside from competition or consumer welfare perspective. The WSC and the International Chamber of Shipping (ICS) opined that the CBER should be upheld to ensure continued efficient and competitive ocean transport for European shippers and consumers, while meeting climate goals. “The frustration that shippers have understandably experienced from service delays and increased cost has been channelled towards carriers, their vessel sharing arrangements, and the regulatory tools that facilitate such arrangements, including the CBER. But data shows, and regulators concur, that the problems were caused by factors outside carriers’ control and not by vessel sharing,” said John Butler, president and chief executive of WSC. Shipper and freight forwarding bodies, including BIFA, however, disagree. Coincidental to the WSC and ICS statement, the European Shippers’ Council, CLECAT, Federation of European Private Port Companies & Terminals (FEPORT), Global Shippers’ Forum (GSF) and several others, wrote to EC competition commissioner Margrethe Vestager urging that liner operators be allowed to cooperate without extending the block exemption. The letter stated: “As consumers or suppliers to the container shipping sector, we have lost confidence that the benefits of the Block Exemption are being fairly shared and that it is meeting its intended purpose. The purpose of competition policy is to protect the interests of customers and consumers from the predatory effects of dominant suppliers and the establishment of cartelised operations. “The experiences, frustrations and dissatisfaction of large swathes of European business with the behavior of global shipping lines demands a change in approach as a means of restoring trust and confidence in the container shipping industry, which is vital to the economies of member states and meeting the needs of European consumers and businesses.” This debate, which seems to have been raging since the dawn of containerisation, shows no sign of ending soon. Finally, BIFA wishes to extend our condolences to Brian Kelleher on the recent passing of his wife Nickey. Brian was Chair of the Institute of Freight Forwarders from 1982 to 1983 and he was also FIATA President from 1995 to 1997. Brian and Nickey were prominent in many industry circles during his long association with the Institute, BIFA and FIATA.
r.windsor@bifa.org Executive Director Spencer Stevenson s.stevenson@bifa.org Executive Director Carl Hobbis c.hobbis@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Communications Manager Natalie Pitts n.pitts@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org
Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors
Robert Keen, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Brooke Neilson Nezda Leigh, 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.
Robert Keen Director General
November 2022
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BIFAlink
News Desk
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UK failing to deliver on overnight parking pledge Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
days after the charges stop accruing; and provide 30 days to dispute the charges with clear information about how charges should be disputed. Container lines continued their attempts in October at managing service capacity to support freight rates, as volumes fell and congestion eased. Drewry noted 64 cancelled sailings across the transpacific, transatlantic and Asia- North Europe and Mediterranean trades for the two weeks beginning October 17. However, carriers’ attempts at capacity management appeared to have had little effect as freight rates continued to fall week- on-week as reflected in the World Container Index. HSBC’s global head of shipping & ports research, Parash Jain, forecasts that container freight rates are expected to hit a trough in mid- 2023 as spot rates fall. He noted that spot rates reported by the Shanghai Containerized Freight Index (SCFI) had fallen by 51% since the end of July – a decline of 7.5% per week. IN BUSINESS The 2022 Barclays-BDO Logistics Confidence Index has revealed that mergers and acquisitions continue to be a strategic priority for logistics companies with 45% of respondents to a survey reporting that they are likely to make an acquisition in the next 12 months, the highest figure ever recorded in this survey’s 10-year history. Operators are seeking to achieve economies of scale and expand their service offering, ingraining a trend for consolidation into what remains a fragmented industry. ON THE QUAYSIDE Construction of DP World’s new all- electric, fourth berth at London Gateway has officially started in a £350 million investment that will increase capacity by a third and further enable the port to provide greater flexibility and choice to customers.
OVERLAND Designated sites such as truck stops and motorway service areas do not have space for more than a fifth of the HGVs that park overnight near major roads in England, according to a PA news agency analysis of a government- commissioned report. This is despite the government pledge to the haulage industry in July last year that it would drive efforts to “improve the quantity and quality of overnight facilities”. The National Crime Agency and Border Force have issued guidance for hauliers on illegal migration across road haulage, with the
agencies having an amber alert for such activity.
volumes continue to slide. Bruce Chan, Stifel director global logistics, told the Baltic Exchange that with more inventory in the system, more fluidity in the supply chain, less residual boost from fiscal and stimulus policy and uncertainty over the direction of the global economy, Stifel does not believe there will be much of a peak. The International Civil Aviation Organization adopted a long-term global aspirational goal in October for international aviation of net-zero carbon emissions by 2050. This puts great pressure on the International Maritime Organization, which still has some homework to do before a fixed date is set for ocean shipping to become climate neutral. ON THE OCEAN Labour disputes and port workers’ strikes worldwide will continue to cause severe disruptions in container ports, Drewry reported in October. Several of these ports face heavy congestion challenges, with container shipping lines trying to divert their vessels away from the impacted ports and terminals to minimise schedule disruptions. The US Federal Maritime Commission is proposing a new rule that seeks to bring more clarity, structure and punctuality to the demurrage and detention billing practices of vessel operating common carriers (VOCCs), non- vessel-operating common carriers (NVOCCs), and marine terminal operators (MTOs). If the rule is adopted, all will be required to issue bills for demurrage or detention only to parties with which they have a contractual relationship; to be clear regarding the nature of the charges; issue invoices within 30
IN THE AIR Global air cargo market data released by IATA in August demonstrated the industry’s resilience amid economic uncertainties. Global demand, measured in cargo tonne-kilometers (CTK), fell 8.3% compared with August 2021 (-9.3% for international operations), whilst capacity was 6.3% above August 2021 (+6.1% for international operations). The air cargo industry should expect a non-existent, or at best muted, peak season as rates and
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BIFAlink
News Desk
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From trainee to managing director Guidance on reporting cargo-related crime to government
BIFA’s Young Forwarder Network (YFN) heard an uplifting talk from Chris Packwood, GEODIS UK managing director, in September. Sharing his journey from trainee to MD, Chris was very open and honest about the challenges he encountered at times. Throughout his talk, he expressed his encouragement for younger people to join the industry as they are “the future of our industry”, and motivated the attendees to always push themselves outside their comfort zones. He also stressed the importance of taking any opportunity that arises by reflecting on his own experiences and left the attendees with the quote: “If you do not try it, you will always look back and think, what if?” Following the talk, guests asked Chris some insightful questions to gain more knowledge about his journey, and he was kind enough to share both the highs and lows. The networking that followed the talk sparked some interesting discussions around future YFN events and gave an insight into what topics YFN members wanted to hear more about. It also allowed the attendees to meet one another – a real advantage of face-to-face events – and engage with people within the industry to create connections. It was the first YFN event for many, but all expressed their enjoyment of the afternoon and left with the
BIFA receives enquiries on a fairly regular basis regarding how to report frontier-related non-compliance to government. There are two main agencies to report crime to: HM Revenue & Customs (HMRC) and Border Force. BIFA asked both organisations for details of who to contact in order to report criminal activity at the border. The compliance teams have given us the following links for Members to follow. Tax fraud can be reported to HMRC at www.gov.uk/report-tax- fraud Information can be submitted anonymously online or via the following telephone number: • From the UK, telephone: 0800 788 887 • Outside UK: +44 203 080 0871 The lines are open Monday to Friday, 9am to 5pm. For Border Force, information on reporting a crime can be found at: www.amsallegations.homeoffice. gov.uk/default.aspx/RenderForm/ ?F.Name=Lf62UB7cz4C Other useful numbers: • The Immigration Enforcement hotline on 0300 123 7000, • Crimestoppers on 0800 555111, • The Customs hotline on 0800 595 000, • The Anti-Terrorist hotline on 0800 789 321. In an emergency, Members should dial 999 and ask for the police.
Chris Packwood, GEODIS, with local organising committee members Bobbie Costin and Thomas Frost
intention of attending more in the future. Once again, it was another successful event with lots of positive and encouraging feedback. Future events For more information about future YFN events, scan the QR code.
BIFA annual membership renewal reminder
Following the successful introduction of electronic
actioned before renewal invoices are issued; • Membership renewal VAT invoices will be issued early January and payment is required within 30 days; • For Members who subscribe to direct debit membership renewals – payments are applied for mid-January and mid-July each year with VAT invoices being emailed upon receipt of payment.
Membership s.milton@bifa.org Do not forget: it is important that you always let us know of any changes to key contacts, email addresses and location addresses, etc, as soon as they happen in order to ensure that the database and contact details displayed on the BIFA website are kept up to date. Please email s.milton@bifa.org with any amendments as soon as they happen. Thank you for your subscription and we look forward to supporting you throughout 2023.
renewals in January 2021, BIFA would like to remind Members of the process. The new system was well received by Members and has been seen as an improved method for renewal of BIFA and FIATA membership. • BIFA Member company declarations will be emailed to members in mid-November and need to be returned to BIFA no later than 9 December 2022 to ensure that any changes to membership categories are
Should you have any questions, please contact Sarah Milton – BIFA
Permanent closure of Inland Border facilities
Don’t keep it to yourself
Not your copy of BIFAlink? Register for your own copy by contacting Sarah Milton in membership s.milton@bifa.org or visit www.bifa.org/bifalink for a digital version.
Following a recent review of Inland Border Facilities (IBF) usage, HM Revenue & Customs (HMRC) has
The Warrington IBF site will be closing to all customers from 23:59 on 13 November 2022. The Ebbsfleet IBF will also be closing to all customers from 23:59 on 27 November 2022.
HMRC encourages everyone to start using either Sevington or Holyhead with immediate effect as both of the sites are now open and fully operational.
decided to close the IBFs at Warrington and Ebbsfleet.
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November 2022
News Desk
BIFAlink
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Supporting your local school’s career events?
Now that they are well into the new school year, careers advisors will be encouraging students to think about their futures All schools and colleges organise events to support the students and help to broaden their minds regarding different career options. To support the government- backed Generation Logistics awareness campaign, we all need to do our bit, ideally locally. Scan the QR code to download a copy of our School Engagement guide which is packed with ideas of how to go about this. However, if you are based near Heathrow or Felixstowe, we have received initial requests from two of our partner schools to attend events including mock interviews, speed networking and careers fairs. We rely heavily on the support of our local Members to attend these events and they are a great way for students to get to know local companies and for our Members to meet young people and inspire them to consider a career in logistics.
CAREERS EVENTS
Region School
Event
Date
Anglia
Felixstowe School
Speed Networking (Y9 & Y12)
27 January 2023
Y10 Mock Interviews
7 March 2023
Careers Fair (Y7-10 & Y12) - 900 students
6 July 2023
Heathrow
The Logic School, Feltham Y13 Apprenticeship Insights and Visits
9, 16 & 23 November 2022
Speed Networking (Y10 & Y11)
w/c 6 February 2023 w/c 6 February 2023 w/c 27 March 2023
Mock Interviews & Presentation (Y11)
Industry Visits to Companies
If your company can help with any of these events, please contact Nezda Leigh on n.leigh@bifa.org for further information.
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £19.24per kg
By sea – Hague Visby rules (2 SDR): £2.26 per kg £754.38 per package
BIFA STC: (2 SDR): £2.26 per kg
By road – CMR (8.33 SDR): £9.43 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 17 October 2022, according to the IMF website, was 1.13157)
By air – Montreal Convention (22 SDR): £24.89 per kg
+44 (0) 1628 532613
macbeths.co.uk
November 2022
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Policy & Compliance
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Airfreight operations at Birmingham Airport.
Monitoring regional airport development
Safety Agency (EASA) approvals and licences to their UK CAA equivalents by the end of the year. From 1 January 2023, the UK will no longer be able to recognise EASA-issued certificates, approvals and licences for the operations and/or maintenance of UK registered aircraft. The UK Department for Transport has identified in its Future Freight Plan the value that regional airports bring to the four nations of the UK for freight movements. For instance, important nightly Royal Mail operations fly from Birmingham Airport to Belfast International. Regional network In Scotland, the airfreight network is used extensively for time-sensitive critical goods such as supplies to the islands. Other airports, like Bournemouth Airport, are diversifying their operations to facilitate more trade by expanding their cargo operation. Demand for e-commerce shows no sign of abating and regional airports are already showing their ability to handle such shipments and wish to develop this further. Figures show that more than 80% of UK airfreight is currently handled by just three airports. In the light of the wider economic developments, changing priorities and environmental challenges there is scope for development of regional airports. Consideration must be given to ascertaining whether airport development can be aligned with port development centring on freeports to create transport development, which will further enhance regional economic growth and benefits.
The government’s recently published Future Freight Plan has identified the value that regional airports bring for UK freight movements
For some time, BIFA has monitored the growth of regionalism in the UK, which has links to the government’s ‘levelling up’ programme and environmental pressure that cargo should arrive as close as possible to the point of final delivery. In particular, we have noted a gradual shift to cargo arriving at regional airports as evidenced by the recent announcement regarding the re- opening of Manston Airport for cargo operations. A new long-term plan, via a government national strategy, will be crucial in delivering growth and meeting future challenges in the UK’s regional air cargo sector. Regional & City Airports (RCA) reported solid freight volumes during the pandemic at its managed airports in Norwich, Bournemouth and Exeter. The emphasis now is on the government’s recently published Future Freight Plan developed in partnership with the wider industry, including BIFA. The new plan, published in July, recognises the importance of international freight and
logistics providers to the UK economy. The document tackles the challenges facing the freight sector as a whole to ensure it remains cost efficient, resilient and provides attractive career opportunities. Also, it recognises the important role regional airports can play in serving local business needs which may ease the overcrowding in the London airport system. Airport closure Running counter to this positive background, and despite some significant cross-party political support, the disturbing closure of Doncaster Sheffield Airport was announced in September. A spokesperson for the Department for Transport said the decision by its owners to close the airport was “incredibly disappointing” but it “strongly encouraged” local leaders to work together to find a solution. There are concerns about the looming deadline for transitioning from The European Aviation
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We re here to help and guide you through it. Air Ocean Road Imports Exports All customs declarations Worksheet automation Customs Tariff CFSP management Customs Warehousing Duty management NCTS CT Guarantee management Import ETSF CCS-UK electronic fallback Export DEP 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 Unlimited integration and automation Archiving Here today. Here tomorrow.
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BIFAlink
Events
www.bifa.org
The ACL Grimaldi table
Return to Liverpool
Comedian John Martin
BIFA Members, their guests and shipping line representatives gathered together at The Liner Hotel, Liverpool, for the reinstated BIFA Liverpool Region Annual Dinner on Friday 30 September. Hosted by Keith Baguley, Chair of the BIFA Liverpool Region, and Rachel Morley, BIFA National Chair, the evening was a great success with almost £6,000 being raised for local charities through the sale of raffle tickets and the auction of donated items, including Liverpool and Everton football tickets. BIFA was honoured to be joined by the Right Honourable, The Lord Mayor of Liverpool, councillor Roy Gladden and the Lady Mayoress, Roz Gladden along with local business representatives. The event was sponsored by Genco Logistics, Hapag-Lloyd, Maersk, MCP PLC and Peel Ports Group. Before dinner was served, guests were
Lord Mayor, councillor Roy Gladden
and BIFA Regional chair Keith Baguley
The drum corps of the Southport Sea Cadets
entertained by the drum corps of the local Sea Cadets, who have played for us for over 30 years now. After dinner entertainment was provided by
comedian John Martin who drew many a laugh for his observations and witty responses. Proceeds from the night will be distributed to the Sea Cadets, Zoë’s Place Children’s Hospice and Help for Heroes.
Moving from the traditional, pre-COVID-19, late winter date, the BIFA Liverpool Region Dinner has found a new slot in the calendar for the autumn with Friday 6 October having been secured for the 2023 event, once again at The Liner Hotel.
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BIFAlink
Policy & Compliance
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EU introduces Import Control System 2
The new Import Control System aims to create a more integrated approach to Customs risk management for goods entering EU territory or areas that have to adhere to EU Customs regulations
When the United Kingdom was part of the EU there was no requirement for UK trade to submit a safety and security declaration for goods being shipped to, or transiting, the EU. That changed post-Brexit and the system will change again over the next few years as the original Import Control System (ICS) is replaced. Ironically, BIFA was involved in many of the original discussions, via CLECAT, with the Commission leading to the introduction of concepts such as dual filing. The purpose of this article is to provide Members with an overview of ICS 2, in particular release 2 which is due to go live on 1 March 2023. For readers it is essential to remember that, due to the current Northern Ireland Protocol, the change will affect movements to both there and the rest of the EU. The new system aims to create a more integrated approach to Customs risk management for goods entering EU territory or areas that have to adhere to EU Customs regulations. ICS 2 – release 1 is now live. We will examine ICS releases 2 and 3 in this introductory article. ICS release 2 is expected to go live on 1 March 2023; it will require a full Entry Summary Declaration (ENS) for all air cargo movements to or transiting the EU. Release 1 has introduced the need to submit Pre-loading Advance Cargo Information (PLACI) via the Shared Trader Interface. The second release builds on the PLACI requirements and, in addition, Economic Operators will need to submit: • Pre-arrival entry summary declarations, • Notification of the arrival of the active means of transport upon entry into the EU, • Notification of the presentation of the goods. Release 2 impacts all air cargo operators, including freight forwarders, air carriers and express operators. Release 3 is the final release of ICS 2 and is anticipated to go live on 1 March 2024. It will bring on board Economic Operators that move goods via rail, road and maritime. We have been informally advised that the implementation period is likely to last six months. This is because it is widely believed that the road transport industry, due to its fragmented structure
and lack of both Customs expertise and appropriate IT systems, will encounter particular issues transitioning to ICS 2.
Explanation of how ICS 2 works ICS 2 consists of certain central components, which is one of the main differences to its predecessor, where the ENS had to be submitted to Customs in the first country of arrival in the EU. These main components of the system consist of: • The Shared Trader Interface, which is part of the wider system developed by the EU to accept declarations; • A Common Repository, which is a central component that requests the relevant Customs authorities to undertake the required risk assessments. In addition, national systems will be developed to accept notifications that goods have been presented; these will process and respond to risk assessments. Once these risk assessments are complete, the national Customs authority will return the responses to the EU via the Common Repository. Appropriate responses are then shared with traders via the Shared Trader Interface. For Northern Ireland, the Application Programming Interface (API) connection will be developed by HM Revenue & Customs (HMRC) to submit these notifications. Getting ready for ICS 2 Given the amount of data required and the fact that the ENS has to be submitted for goods going to and transiting the EU, the impact may be more significant than initially anticipated. There are various messages and, given the data that is required, more than one party is likely to have to submit this information under the concept of ‘dual-filing’. The supply chain players will have to decide what data they will supply and then what they expect another party to submit; it is anticipated that there will be variations between the modes. Declaration types For instance the following types of declaration will need to submitted:
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Policy & Compliance
BIFAlink
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IT considerations BIFA believes that those responsible for submitting a Notification of Presentation of Goods message will do so directly via an API, which is connected to the HMRC ICS 2 system. Also, consideration has to be given to the role of other parties in the supply chain and what additional IT will be required. If Members believe that they will be impacted by ICS 2 release 2, or you have any enquiries, please email importexporttransit@hmrc.gov.uk
• Pre-Load Advanced Cargo Information (PLACI), • Pre-arrival declarations, • Notification of the active means of transport to the Customs office of first entry, • Diversion requests. In order to submit the declaration, the trader will need software to connect to the Shared Trader Interface and to register through Uniform User Management (UUM), which will be done by contacting HMRC and requesting a profile.
November 2022
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BIFAlink
BIFA Awards
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PROJECT FORWARDING AWARD
Aberdeen to Foynes. According to Arnott: “There was no Customs precedent to call upon for the export, import and transit declaration processes in Foynes or Kerry for equipment and personnel going to/from the drillship operating on the Irish Continental Shelf. “Therefore, our Customs scenario was new territory for Ireland’s Revenue Commissioners. Although they were receptive to potential solutions that we suggested, these all had to be discussed, reviewed and agreed to ensure they were legal within the EU Customs regulatory framework.” With its extensive experience in projects of this nature, both in the UK and internationally, ACE was able to map a bespoke Customs solution that was compliant with the Revenue’s Automated Import System (AIS), applicable by local officers and practical for the client to implement. Summing up, Arnott said: “As a project freight forwarder, the pre-operational legwork to research and develop a comprehensive project logistics strategy is absolutely key to every successful project delivery. “For this project, pragmatism and patience were required when negotiating with government authorities and a respectful approach was needed when engaging and rolling out requirements and procedures with the local vendors.” ACE received a five-year contract renewal from this client in August 2021. For over 40 years, Peter Lole & Co has been insurance advisor to the freight and logistics industry. In 2021 we joined forces with Macbeth Insurance Brokers and are extremely proud to continue our association within this sector under the Macbeth name. Whether your business specialises in freight by sea, air, road or rail, or handles specific goods, we can provide advice on applicable trading conditions and contractual obligations. As an Associate Member of BIFA, we are proud to continue our support of the BIFA awards. the British government regarding its level of support for the industry in the past year. Arnott said. “We need a sensible strategy towards a long-term transition plan, which provides energy security for the UK in the short to medium term and one which provides stability and surety to the UK oil and gas industry, allowing all to progress in strategic alignment towards achieving our country’s future net zero targets.”
Ed Arnott of ACE Forwarding
Drillpipe and equipment being loaded.
When an international energy company was preparing for a remote offshore drilling project in the Atlantic Ocean, it chose BIFA Project Forwarding Award winner ACE Forwarding as its logistics partner ACE’s bespoke solution
factor for our client.” The most challenging operational aspect of the project was its intense schedule. Arnott explained: “The end project site was a very expensive drillship hired on a day rate of hundreds of thousands of pounds, with extremely limited offshore storage areas – meaning that cargo needed to arrive in Foynes exactly when needed, otherwise rig downtime would be incurred.” Dangerous goods ACE transported over 2,300 tonnes of equipment from Aberdeen to Foynes by road – including DG Class 1 explosives, Class 7 radioactive materials and 20 m long baskets. It also chartered a number of coaster vessels to convey 2,600 tonnes of drillpipe and out-of-gauge rig safety and contingency equipment from Limassol and Energy strategy plea Ed Arnott, business and commercial director of ACE Forwarding, pointed out that North Sea oil and gas is vital in providing energy security in the UK, as well as being pivotal for the country’s necessary and just transition towards net zero targets. However, there has been mixed and highly reactive and contradictory messaging from
ACE Forwarding was asked by an energy company to undertake a comprehensive study of available infrastructure, Customs regimes, transport routeings and timings for an Atlantic drilling project, as well as the capability of in- country operators in Ireland. Following agreement to implement its recommendations, ACE was engaged to provide full end-to-end freight forwarding support, Customs management and aviation logistics services for the project to support a drillship positioned 232 km off the coast of Ireland in water depths of 2,200 m. Kerry Airport and Foynes Port were identified as the best options for crew change helicopters and the supply vessels supporting the drilling campaign. ACE provided training at both gateways to ensure safe and compliant operations. Ed Arnott, ACE business and commercial director, recalled: “Although oil and gas logistics experience [at Kerry and Foynes] was limited and needed to be developed from the ground up, the budgetary efficiencies from using these ports were significant and also ensured that local content was maximised, which was an important
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November 2022
Secretariat
BIFAlink
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Brooke takes apprentice role in BIFA Secretariat
Her role will support BIFA’s Member communications
As our members know, BIFA is a strong advocate of the apprenticeships route into logistics and so, true to our word, we are delighted to announce that we have recently welcomed our first apprentice, Brooke Neilson, to the BIFA Secretariat. Brooke joined us in September as our PR and communications apprentice. She has successfully completed her A Levels in English Language, Media Studies and Business Studies – qualifications that equip her well for the role. She has always been very enthusiastic about marketing and communications so knew that it was a career path she wanted to explore after college. “Following college, I consistently pushed
myself towards the apprenticeship route as I knew it would be the most beneficial for me, so I am really pleased that I have landed such an amazing role at BIFA! This role contains everything that I wanted to explore, so it seemed like the perfect fit for me” Communications and PR Brooke is now studying to complete the communications and PR apprenticeship standard, which will support the future direction of BIFA’s Member communications. She is excited to see where this opportunity takes her and looks forward to getting more involved in her role and continuing to meet others within the industry.
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November 2022
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BIFAlink
Policy & Compliance
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Update on clean air zones
Types of clean air zones There are 4 types of clean air zones, Classes A to D. Class Vehicle type A Buses, coaches, taxis, private hire vehicles B
From time to time, we provide Members with information regarding clean air zones. To improve air quality, some local authorities are introducing Clean Air Zones (CAZ), meaning that if your vehicle exceeds emission standards, you may have to pay a charge if you drive within their boundaries. The basic premise for trucks is that a EURO 6 truck will be exempt from paying the fee, whilst an older EURO 5 or earlier HGV will have to pay the daily charge. BIFA concerns Whilst supporting the concept of reducing air pollution, BIFA has some concerns about this policy, not least being that central government has delegated the process to local authorities. This has led to anomalies in charging structures and tariffs, meaning a certain vehicle type may or may not incur a charge in different areas, while also seeing variation in the charge levied. Another adverse comment is that there has been undue emphasis placed on charging HGVs and not the private motorist for entering a CAZ – the view being that local authorities are reluctant The delegation of clean air zones to local authorities is resulting in anomalies in charging structures and tariffs
Buses, coaches, taxis, private hire vehicles, heavy goods vehicles
C D
Buses, coaches, taxis, private hire vehicles, heavy goods vehicles, vans, minibuses Buses, coaches, taxis, private hire vehicles, heavy goods vehicles, vans, minibuses, cars, the local authority has the option to include motorcycles
to lose the votes of local electors. These local variations can have a significant impact on what is charged. Birmingham, which is a Class D CAZ charges £50 per day, whilst the fee to enter Bath’s Class C CAZ is £100 per day. Increasingly, however, observers are forming the opinion that targeting the truck is incorrect, because many operators have switched to newer less polluting vehicles which are, therefore, exempt. Statistics indicate that the road haulage industry, even prior to the introduction of the CAZs, had taken considerable steps to reduce levels of Nitrogen Oxide (NOx) being emitted. Recent statistics indicate that between 2013 and the end of 2021, NOx emissions from lorries fell by over 72%. However, to achieve this reduction, it is estimated that the additional cost to the industry of purchasing EURO 6 compliant vehicles, as opposed to the simpler EURO 5 version, totalled approximately £2.2 billion. In order to maximise the benefits of CAZ schemes, many commercial
vehicle operators believe that targeting should focus on older EURO 3 and EURO 4 vehicles of all types. COVID-19 complications COVID-19 and related issues have exacerbated the situation, seeing replacement rates between 2020 and 2021 decline by 25% below normal levels and production of vehicles decline because key components were unavailable. In many ways, the journey to decarbonise transport is just commencing, and the commercial vehicle operator has incurred disproportionately higher costs than other road users due to the structure of charging, which fails to encourage the users of older more polluting cars to change to newer models. Roadfreight is making significant strides in reducing its emissions, but there are other issues to be considered, such as the volume of traffic at certain times of day in known bottlenecks, such as the motorways around Birmingham, which continue to contribute to high pollution levels.
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November 2022
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BIFAlink
Policy & Compliance
www.bifa.org
species is controlled through a global system of import/export permits which can be obtained from the respective importing and exporting management authorities. Permits are issued following checks on the legality and sustainability of the trade of the species in question. Post-Brexit arrangements All CITES specimens that previously were freely moved between Britain, Northern Ireland and the EU now require CITES permits, or an import notification. CITES-listed species moved into or out of Britain, or between Britain and Northern Ireland, must travel with import/(re)export permits, as between the UK and non-EU countries. These movements must occur through one of the 36 CITES-designated land, sea and airports, with permits endorsed by UK Border Force on entry or exit. Be aware that it is impossible to endorse permits away from the border, or retrospectively. You cannot legally trade CITES specimens which entered the UK without endorsed permits. Responsibilities Incorrectly imported or exported goods may be liable to seizure and/or prosecution and so care should be taken to follow the correct procedure and ensure everyone involved in the trade, including agents or couriers, is aware of their responsibilities. There are criminal offences associated with moving or trading CITES-controlled specimens if you do not have a valid permit or certificate. The maximum penalty is a seven-year prison sentence and an unlimited fine. The up-to-date list of the ports is available on the following GOV.UK page: www.gov.uk/guidance/trading-cites-listed- specimens-through-uk-ports-and-airports. Species are added to, removed from, or moved between appendices every three years at a Conference of Parties (CoP). This allows CITES rules to react to the changing risk for species of over-exploitation as a result of international trade. Therefore, it is important to routinely check whether the
Movement of goods under CITES permits BIFA has been contacted by the Department for Environment, Food and Rural Affairs (Defra) with the following information relating to the movement of goods covered by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
Defra has advised that there has been an increase in CITES permits not being endorsed on entry to Britain and, as a result, plants and bulbs are being seized in high numbers both at the border and inland due to the specimens not having permits, or having permits that were not endorsed on entry. These imports cannot be legally traded or re-exported, and there is no way of retrospectively endorsing them, resulting in substantial losses for importers. It is important that information is passed to drivers and that they understand the importance of CITES permits being endorsed on entry and exit. Background CITES, the Convention on International Trade in Endangered Species of Wild Fauna and Flora,
specimens you work with are subject to any new regulations. You can find information about CITES and the species currently listed under CITES here: https://cites.org/eng
regulates more than 35,000 endangered animal and plant species. This agreement, which is in force in most countries globally, regulates the movement and trade of endangered animals and plants, including their parts and derivatives, to ensure that trade does not threaten their survival. The movement and trade of endangered
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November 2022
BIFA Training
2023 Face-To-Face Training Courses 20% off
To receive the discount, submit a booking enquiry for your chosen classroom course.
Visit bifa.org/training for our latest dates and venues
T&Cs: Bookings must be received by 30th December 2022. Does not apply to any existing bookings. Apprentice training not included in promotion as 20% already applied. Does not include Live courses.
BIFAlink
Legal
www.bifa.org
Know your BIFA Standard Trading Conditions – Clause 8A, Part 1
For reasons of space we are covering Clause 8 in three editions of BIFAlink . Next month we will expand on points to be considered when applying a lien and the following month we will cover clause 8b. All three articles should be read together. Clause 8(A) 8(A) Subject to sub-clause (B) below, the Company: (i) Has a general lien on all Goods and documents relating to Goods in its possession, custody or control for all sums due at any time to the Company from the Customer and/or Owner on any account whatsoever, whether relating to Goods belonging to, or services provided by or on behalf of the Company to the Customer or Owner. Storage charges shall continue to accrue on any Goods detained under lien; (ii) Shall be entitled, on at least 21 days’ notice in writing to the Customer, to sell or dispose of or deal with such Goods or documents as agent for, and at the expense of, the Customer and apply the proceeds in or towards the payment of such sums; (iii) Shall, upon accounting to the Customer for any balance remaining after payment of This month we come to liens and the clause in the BIFA Standard Trading Conditions (STC) that generates the largest number of enquiries to the Secretariat. This is a difficult topic to cover in a magazine article as there can be a plethora of variations in the circumstances of each potential lien
any sum due to the Company, and for the cost of sale and/or disposal and/or dealing, be discharged of any liability whatsoever in respect of the Goods or documents. Comment on Clause 8(A) A LIEN is a legal right, exercisable under certain conditions, to retain custody or control of goods or documents until charges are paid in full. A PARTICULAR LIEN is a right to retain the particular goods or documents that are the subject of the unpaid charges. A GENERAL LIEN is a right to retain goods or documents until all outstanding charges are paid in full – that is not just charges on the goods or documents detained but also overdue charges arising on other goods. An ACTIVE LIEN is one that gives the right to sell or dispose of goods or documents and not merely a right to retain them. Under Clause 8(A), a BIFA Member has an ACTIVE GENERAL LIEN. At English common law, a freight forwarder (whether acting as Agent or Principal) has only a particular lien. It was held in the case Langley Beldon & Gaunt v. Morley [1965] 1 Lloyd’s Rep 297 that a forwarding agent does not have a common law right to a general lien by custom of the trade. It is only when the BIFA STC (or trading conditions with a similar clause) are
incorporated into a contract that the BIFA Member has an active general lien. A common law lien confers no right of sale – it is passive. Clauses 8(A) and 8(B) of the BIFA STC give the BIFA Member the contractual right to sell goods or to dispose of them or to deal with them subject to giving sufficient notice of the intention to do so. The BIFA Member cannot make a profit from such sale but must only cover overdue charges and expenses incurred and must account to the owner for any balance received in the proceeds. The BIFA Member must get the best price in the circumstances and not recklessly sell goods cheaply. A lien is a very useful weapon to use against a defaulting customer, but great care must be exercised otherwise the BIFA Member may face a claim for conversion. This article will be continued next month with some points that must be considered. It is often prudent to engage the services of a solicitor when applying a lien. Liens are also covered in the BIFA Good Practice Guide, A Guide to Exercising a Lien Using the BIFA Standard Trading Conditions (BIFA STC) . This is one of many good practice guides that can be found on the BIFA website www.bifa.org > INFORMATION > GOOD PRACTICE TOOLBOX
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