BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
The magazine of the British International Freight Association August 2024 BIFA link
Freight-related crime wave continues to surge INSIDE: New Customs Policy Group Vice Chair • BIFA Ocean Services Award • YFN member tour • Sustainability in freight forwarding • Freight Service Awards categories
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Issue: 408
Steve Parker’s Column
Mind the gap
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 (A company limited by guarantee. Registered in England: 00391973. VAT Registration: 216476363) Director General Steve Parker s.parker@bifa.org Member Policy & Compliance Director Robert Windsor r.windsor@bifa.org Member Support Director Spencer Stevenson s.stevenson@bifa.org Member Services Director Carl Hobbis c.hobbis@bifa.org Member Engagement Director Denise Hill d.hill@bifa.org International Relations Advisor Robert Keen r.keen@bifa.org Policy & Compliance Frontier Policy Manager Pawel Jarza p.jarza@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Adviser – Sustainable Logistics Mike Jones m.jones@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org Web site: www.bifa.org E-mail: bifa@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Igor Popovics, Robert Keen, Denise Hill, Mike Jones, Pawel Jarza, Natalie Pitts Note to media: If you wish to use items in this magazine that are older than one month, please contact the editorial co- ordinator to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.
A n unusual headline for this month’s column this may be and my research tells me that this phrase came into being on the London underground in 1968, making it a very British saying. Gaps can be important as I have learned from feedback on the BIFAlink TV episode released on Tuesday 9 July. Having just released BIFAlink TV, I took the opportunity following the general election to record an episode on the result and what this meant for BIFA. I explained during the
recording that BIFA is “an apolitical organisation” but, when you listen to the release it sounds like I said “BIFA is a political organisation”. The gap between the “a” and “political” makes a massive difference and changes the whole focus. Fortunately, I think on the recording the rest of the sentence made it clear what I meant. This ‘error’, brought about by my brain knowing what it wants to say but my mouth not keeping up, reminded me how important a gap can be. With BIFAlink TV we try to give you, our Member, a little bit of knowledge every day; hence we say this is your daily dose of industry information. We deliberately keep the accompanying videos short (just two or three minutes) with email titles that are clear and precise, so you know what the message for that day is about. Our point of doing this is to try to help fill small gaps of information and knowledge. I want you, as our Member, to be totally up to date with the latest regulations and to take advantage of all the benefits that being a BIFA Member can bring. For us at the association, it is not just about the protection of the BIFA STC, but also so much more – like training, representation, industry promotion and the provision of information that now is being met with the launch of BIFAlink TV, providing that daily nugget of knowledge that can help you with your business. Many of you are listening every day and we have started to see stable daily numbers. However, I am concerned that as our database is not what it should be, many of you are probably not seeing the notifications; if that is you, please ensure your contact details on our website are up to date. I don’t want to sound arrogant (and those that know me will know I am not), it is just that I really think you are missing out if you are not getting this and checking in with it daily. We want to help you, and this is our latest way of communicating. Holiday reading I appreciate we are in the middle of the holiday season and wondered if you wanted some reading material while you are away? Could I recommend our Know your Trading Conditions booklet? Scan the QR code below to access the guide. Just so you know I practice what I preach, there is a picture (somewhere on the dark web, I suspect) of me on holiday in Malta, by the pool, on a sun lounger with sun hat reading exactly this publication. It is neither exciting nor romantic, but it might help fill a knowledge gap. The BIFA STC, if applied correctly in your business, could save you thousands of pounds in the event of a claim, which in turn may pay the costs of the holiday you are on! Happy reading.
Director General
BIFA STC Guide
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BIFA News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
Non-alliance ocean capacity grows
ON THE OCEAN Whilst the initial disruptions to global supply chains triggered by the pandemic had a profound impact on non- alliance services, with those operated independently of existing alliance structures halting operations on major East-West trade routes, the surge in demand for goods, coupled with rising spot rates, has caused a significant influx of non-alliance capacity into the market, and the entry of several niche carriers, according to Sea-Intelligence. Russia is seeking China’s help in developing an Arctic sea route that could almost halve the journey time between Europe and Asia, reported Hong Kong’s South China Morning Post . It added that the Northern Sea Route (NSR)
may find themselves “at the mercy of the market”. Airfreight rates on key trades out of Asia remained “firm” in June despite the market entering the quieter summer season. Figures from the Baltic Exchange Airfreight Index (BAI) show that rates from Hong Kong to both Europe and North America remained up on a year ago and also increased slightly compared with May levels. In Florida, a 72-year-old is facing multiple charges, including a felony charge, after authorities say he shot a Walmart delivery drone that he said was flying over his house on a trial delivery run. Customers placed orders with Boeing for eleven 777Fs in June, the most the planemaker has received for the type in a single month in three years. It also delivered 44 commercial aircraft in June, the highest monthly total since the company curbed work in its factories in the wake of a harrowing near-miss in early January involving a 737 Max Protection Association (TAPA) outlined security measures in July to increase truck driver safety as they face an escalation in criminal attacks in the Europe, Middle East and Africa (EMEA) region. IN BUSINESS The European Commission plans to impose Customs duties on goods under EUR150, specifically targeting Chinese e-commerce giants such as Temu, Shein, and AliExpress in an effort to curb the influx of substandard items from China and create a level playing field for all online retailers. jetliner. Meanwhile Airbus logged its best monthly deliveries so far this year. OVERLAND The Transported Asset
could become a year-round shipping lane if global warming makes it possible to send ships through waters that were previously only passable in summer. Ships avoiding Houthi attacks in the Red Sea during July faced a different kind of delay- causing threat as they went
around the southern tip of Africa – storms and 30 ft swells. These left them seeking shelter or altering course to avoid the impacted areas, leading to further delays, which are not being helped by the congestion that is spreading at ports of origin in Asia. Global demand for ocean freight container shipping hit an all-time record in May at 15.94 million teu – surpassing the previous record of 15.72 million teu from May 2021 – amid soaring spot rates and severe port congestion, according to data released by Xeneta and Container Trades Statistics. ACROSS THE BORDER Concerns were raised in July that the introduction of the EU’s entry/exit system for non-EU nationals will create supply chain disruption and tailgate queues at ports like Dover and Eurotunnel. The new system, which will require non-EU nationals to provide biometric data before being allowed to enter EU nations, launches in October. IN THE AIR The global air cargo market is heading towards a ‘hot Q4’ of rate increases after a sixth straight month of double-digit growth in June, according to the latest analysis by Xeneta. It warned that shippers and forwarders are ill-prepared for this year’s peak season and
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4 | August 2024
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BIFA News
Customs Policy Group elects a new Vice Chair
DATES FOR YOUR DIARY Have you got the following dates marked in your diary? Wednesday 11 September Solent Port Community Meeting Presented by BIFA in conjunction with CNS and covering issues related to the south coast ports. Register to attend. Wednesday 2 October BIFA Freight Service Awards 2024 Deadline for the submission of entries to the BIFA Freight Service Awards 2024 – ENTER NOW. Thursday 10 October BIFA Business Leaders Forum The fourth event in the series aimed at the senior manage - ment teams within BIFA Member companies is scheduled to take place in central London with the developments in the world of AI and their effect on our industry being one subject on the agenda. Places are limited, reserve your spot now. Friday 7 March 2025 BIFA Liverpool Region Dinner Following a break in 2024, the ever- popular Liverpool Region Charity Dinner returns in March 2025. Register your interest now.
BIFA is pleased to advise Members that, during its meeting on 5 June, the Customs Policy Group elected Nick Beauchamp of DSV as its Vice Chair. Nick has been a member of this key Policy Group since 2019, playing an active role in discussions and in connecting with government during this period. Nick has worked at DSV for 10 years and is currently Director - Global Customs, engaged in the DSV digital transformation programme. Previously he was Director of Customs and Security, covering DSV UK and Ireland companies, where he managed the Customs compliance and security functions. This role involved advising DSV and DSV’s
Customs procedures, excise warehousing, implementing AEO programmes and export controls. The BIFA Customs Policy Group meets four times per year and comprises members of the secretariat, representatives from BIFA member companies and invited speakers from HMRC and other relevant government departments and organisations. BIFA members can view the latest meeting minutes at https://bifa.org/representatio n/policy-groups/ If you have a question about the BIFA Customs Policy Group, please contact Pawel Jarza (p.jarza@bifa.org).
customers on Customs matters. His main areas of specialisation are special
IMO mandates reporting of containers lost at sea
The International Maritime Organization (IMO) has recently formally adopted new amendments to its Safety of Life at Sea (SOLAS) regulations. This amendment will require the mandatory reporting of all containers lost at sea from 1January 2026. SOLAS Regulation 31 mandates that the master of a ship involved in the loss of containers must immediately report specific details to nearby ships, the nearest coastal state and the vessel’s flag state. The flag state is responsible for passing this information on to the IMO via a new module in the Global Integrated Shipping Information System (GISIS). The SOLAS regulations outline the reporting process, specifying that reports of containers lost at sea must be made as soon as possible, with updates provided as more
information becomes available. A final count of lost containers must be confirmed after thorough inspection. Mandatory details include the position of lost containers, the number lost and whether any contained dangerous goods. These amendments to the SOLAS Regulations will help
improve maritime safety and environmental protection because lost containers and their contents will be reported more promptly. According to the World Shipping Council’s statistics around 1,500 have been lost annually between 2008 and 2022.
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BIFA News
STOP PRESS: EES postponed On 18 July, the same day as the BIFAlink TV item on the subject, European leaders announced a delay in implementing the new EU Entry-Exit System (EES) that had been scheduled to go live “sometime in October 2024” as outlined in July’s BIFAlink . The implementation has been postponed until 10 November 2024, with possibility of a further delay of one week. The EES, requiring every non-EU citizen to register biometric data, including fingerprints, at the border threatened to cause delays, especially at the Channel crossings as passengers registered their details. This would inevitably have a knock-on effect on freight operators and supply chains. It is hoped that deferring the implementation date will allow for the development of Apps, which will permit travellers to register their details before travelling to the port, thus minimising delays. The new system will monitor people entering the territory of the EU and their compliance with the 90/180 day rule, a point which all must be aware of. It is important for Members likely to be affected to note this newly announced date and plan how to comply with the EES regime.
BIFA colleagues complete team-building challenges
An important part of planning for the future is to get the team together for brainstorming. So at the end of June, BIFA colleagues gathered on the banks of the River Thames at Henley Business School for two days of training, team building and business planning, providing a great opportunity to get to know each other better, especially those who work remotely and are usually only seen on screen. The first day involved a thought-provoking Personal Resilience Workshop delivered by The Wellbeing Project (https://thewellbeingproject.co .uk) which highlighted the wellbeing continuum, fixed versus growth mindsets, and
the circle of control identifying aspects of work and personal life that individuals can control, influence or should let go. For something completely different from the day job, this was followed by competitive team-building challenges of archery and cryptic puzzles provided by Team Activity Group (www.tag-events.com) in the glorious sunshine on the riverbank.
regional Member meetings and the new Business Leaders Forum events, and the ongoing project to ensure that BIFA communications are reaching the correct addressees. After lunch, the four workgroups delivered the outputs of team discussions which will help Steve and the management team formulate actions for the year ahead. Keep an eye on the Director General’s column on page 3 of
The blue team emerged victorious overall before heading for dinner. On day two, Steve Parker provided a recap of last year’s event and a progress update, which included improved Member engagement through the expansion of regular each issue of BIFAlink and announcements via BIFA’s refreshed You Tube channel, BIFAlink TV (http://www.youtube.com/@ BIFALink_TV), for new initiatives as they come on line. The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £17.39 per kg
By sea – Hague Visby rules (2 SDR): £2.05 per kg £681.78 per package
BIFA STC: (2 SDR): £2.05 per kg
By road – CMR (8.33 SDR): £8.52 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 15 July 2024,
By air – Montreal Convention (22 SDR): £22.50 per kg
according to the IMF website, was 1.02266)
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Young Forwarder Network
Members of the Anglia YFN visit the Port of Felixstowe
Anglia YFN members tour the port of Felixstowe
accreditation for the in-person events held throughout the year. The Felixstowe port tour marks a major milestone in the journey and holds the distinction of being the first port tour to be CPD certified. Virtual YFN events Recent virtual events have covered the niche forwarding area of the carriage of live animals, delivered by Holly Todd and Derek Fraser of Extrordinair, and the personal development considerations for someone taking the first step into a supervisory/junior management role, presented by Cameron Hancock of DHL Global Forwarding. Join today Attendance at all YFN events (in- person and virtual) is free for individuals, employed by BIFA Members, in the early stages of their careers. The YFN exists to promote learning and self-development, provide opportunities for visits to places of interest and networking with peers. If you would like to join the Young Forwarder Network, please contact Nezda Leigh on n.leigh@bifa.org
“ Most areas of the port were accessed, affording everyone the opportunity to witness the manual and semi- automated cranes operating in the yard, the vessels being loaded and unloaded
M embers of the Anglia Young Forwarder Network (YFN) visited the port of Felixstowe recently. With beautiful blue skies and a warm summer breeze, the group started the day with a full English breakfast at the Viewpoint café whilst watching a huge 24,188 TEU mega-container vessel departing the dock. Next, the young forwarders enjoyed a lively Q&A session at the heart of the port and then boarded the coach for a full tour. Most areas of the port were accessed, affording everyone the opportunity to witness the manual and semi-automated cranes operating in the yard, the vessels being loaded and unloaded in the quay and to learn about the future use of autonomous trucks within the port. BIFA would like to acknowledge the time given by the team at the port of Felixstowe in hosting this event.
CPD Accreditation In order to recognise the importance of Young Forwarder Network events to the individual and the benefits that learning opportunities can bring back to your company, BIFA has been working to achieve CPD
The view from the Viewpoint café
8 | August 2024
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Policy & Compliance
What’s in store for our sector – a high-level overview
One of two key programmes that may have an impact on our industry is the Single Trade Window (STW), along with the Modernising Authorisations Programme
A general election is always a good time to re fl ect on what the future might bring, be it in terms of policy or IT system developments in the freight forwarding sector. The last eight years can hardly be described as uneventful. The EU Exit, CDS replacing CHIEF, a raft of new policies and a flurry of new computer systems (GVMS and IPAFFS to name just a couple) have all redefined and reshaped our daily operations. Yet, there is more in store. One of the key programmes that may have an impact on our industry is the Single Trade Window (STW). The concept itself is not new nor revolutionary, as we demonstrated in July’s issue of BIFALink , yet we believe that it has a significant amount of potential to streamline many administrative processes while also offering a number of operational BIFA Members can already try to test the ENS functionality, which will go live before the requirement to lodge safety and security data for imports from the EU (EEA), with more to follow soon. BIFA has been following the STW’s development closely and is planning to continue doing so in future. When talking about the STW, it is impossible not to mention the Modernising Authorisations Programme. Announced at the Spring Budget 2023, the programme aims at improving the HMRC authorisation process by reducing the administrative burden functionalities that may help traders in their day-to-day- operations. ENS functionality
“ We believe that the STW has a significant amount of potential to streamline many processes while also offering a number of operational function- alities that may help traders in their day- to-day- operations admin - istrative
and removing duplicative processes. Something that our industry has been advocating for a long time. Anyone who has had to go through more than one authorisation process will have experienced excessive data requirements, duplication of processing and confusing guidance. These issues are supposed to be addressed over the coming months, resulting in a more efficient environment and a faster path to authorisation. The STW and the Modernising Authorisations programmes are both very pragmatic but also follow a general direction of travel when it comes to data sharing and system efficiencies. There are, however, developments that have the potential to make the freight forwarder’s life a little challenging, if not a little harder, under certain circumstances. One of these developments is the introduction of the UK Carbon Adjustment Mechanism (CBAM) from 2027. Although lighter in its
scope than the EU scheme and, in its current form, making no provision for the forwarder’s active involvement, the scheme will still require IT developments, which may in turn impact on what happens at the frontier. Speculative territory Going further into more speculative territory, we are wondering whether the UK is going to implement an equivalent of the EU Deforestation Regulation. The EU regulation’s scope is far wider than what the name might imply, and it can create operational challenges for anyone working at the border. Regardless of the outcome, it is becoming clear that our role may involve more than just moving goods across frontiers. And with a wider adoption of AI solutions, our roles are set to be profoundly redefined over the coming years. BIFA will be monitoring industry trends and will keep Members up to date.
August 2024 | 9
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Policy & Compliance
Know your BIFA Standard Trading Conditions 2021 – Clause 27 (B)
Last month we began the examination of Clause 27 with a detailed explanation of Clause 27 (A). This month we complete this important clause by analysing Clause 27 (B), which discharges the member liability in respect of services provided unless civil action is commenced within nine months of any event likely to lead to a claim
CLAUSE 27 (A) Any claim by the Customer against the Company arising in respect of any service provided for the Customer, or which the Company has undertaken to provide, shall be made in writing and notified to the Company within 14 days of the date upon which the Customer became or ought reasonably to become aware of any event or occurrence alleged to give rise to such claim, and any claim not made and notified as aforesaid shall be deemed to be waived and absolutely barred, except where the Customer can show that it was impossible for him to comply with the time limit and that he has made the claim as soon as it was reasonably possible Notwithstanding the provisions of sub-paragraph (A) above, the Company shall in any event be discharged of all liability whatsoever, howsoever arising, in respect of any service provided for the Customer or which the Company has undertaken to provide, unless suit be brought and written notice thereof given to the Company within nine months from the date of the event or occurrence alleged to give rise to a cause of action against the Company. for him to do so. CLAUSE 27 (B)
Comment on Clause 27 (B) In the context of this Clause, Suit be brought means commencing a civil action in a court. Cause of action means a factual situation, the existence of which entitles one person to obtain from a court a remedy against another person. Person in this context includes a corporate person such as a limited company. This is a very important clause. No matter what the merits of a claim, unless a person brings court action and notifies the BIFA Member of it within the nine-month period, then the BIFA Member has no liability whatsoever. If the claim is still the subject of ongoing investigation, then to avoid litigation an extension of the time limit should be sought. It was held in the case The Zhi Jiang Kou, Lloyd’s Rep [1991] 1 493 (which concerned the Hague Rules) that time limits are not waived because negotiations are taking place about a claim unless
there is a specific promise to do so, and a defendant is under no obligation to draw his opponent’s attention to a time limit. Because of this time limit, it is necessary to investigate the merits of a claim and deal with it promptly and assess its merits because, under the Civil Procedural Rules, the days are over for issuing a ‘protective writ’ without the need to take further immediate court action. However, the time limit for making suit under Clause 27(B) can be overridden by those in international conventions when they compulsorily apply. Examples are as follows: CMR Convention (international road carriage) a)Partial loss, damage or delay in delivery – 12 months from the date of delivery; b)For total loss – 12 months from the 30th day after expiry of the agreed time limit, or if no agreed time limit, from the 60th day
“ No matter what the merits of a claim, unless a person brings court action and noti fi es the BIFA Member of it within the nine-month period, then the BIFA Member has no liability whatsoever
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Policy & Compliance
International Carriage Rules (Air) The right to damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination or from the date on which the aircraft ought to have arrived or from the date on which carriage stopped. CIM Rules for International Rail Carriage The period of limitation of action shall be one year except in certain circumstances, including wilful misconduct and fraud, when it is two years. The period of limitation is suspended when a claim is presented in a similar manner as under the CMR Convention. Also, for comparison: FIATA Bill of Lading Conditions All liability – unless suit is brought within nine months of the delivery of the goods, or the date when the goods should have been delivered, or the date when they are deemed to be lost. RHA Conditions of Carriage 2009 The carrier shall in any event be
from the date when the goods were taken over by the carrier; c)In all other cases, 12 months from the expiry of three months from the making of the contract. If wilful misconduct on the part of the carrier or its agent is proved, 12 months becomes three years. A written claim suspends the period of limitation until such date as the carrier rejects the claim and returns the documents attached to it. Hague-Visby Rules (sea carriage) The carrier and the ship shall in any event be discharged from all liability whatsoever unless suit is brought within one year of their (goods) delivery or the date when they should have been delivered. In the case The Captain Gregos No.1, Lloyd’s Law Rep (1990) 1 310, it was held that this one-year time bar applies even when there is misconduct on the part of the sea carrier. Montreal Convention and all versions of the Warsaw Convention and the Non-
discharged from all liability whatsoever and howsoever arising in respect of the consignment, unless suit is brought within one year of the date when transit commenced. Special Note regarding time limits If the BIFA STC (or comparable conditions) are not incorporated into the contract between the BIFA Member and the Customer, and if there is no overriding international convention, then the limitation period for making suit for cargo claims is six years under the Limitation Act 1980, in so far as it concerns contracts. Note that in respect of making suit, the terms ‘writ’ and ‘summons’ are obsolete in English law and by the Civil Procedure Rules introduced in 1999, the legal document by which court action is begun is called a Claim Form.
“ ... time limits are not waived because negotiations are taking place about a claim unless there is a specific promise to do so
To view and download the full Know your 2021 Trading Conditions document scan the QR code .
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Policy & Compliance
Last year there were 5,373 reports of cargo theft from HGVs, resulting in an estimated loss of £68 million. BIFAlink takes a look at how and why HGV crime is evolving Freight-related crime wave continues to surge
P eriodically, BIFA updates Members on freight- related crime, which recent fi gures show is increasing. The reasons for this are varied, at the simplest level there is more cargo being shipped, but higher in fl ation, which sharply increased the price of food, it is argued has increased the theft of foodstuffs. Although, in general terms, the thieves’ preferences re fl ect consumer demand and items that are relatively easy to sell and preferably untraceable. Figures as to the actual crime statistics are difficult to obtain – in the UK, police figures do not differentiate between freight crime and other types of lawbreaking, particularly relative to cargo theft from vehicles. There
are privately funded police initiatives such as The National Vehicle Crime Intelligence Service (NAVCIS), but information is only distributed to its membership. In this article we will briefly look at crime and its changing nature, and how some issues such as poor HGV parking have wider consequences than might be initially obvious. According to NAVCIS’s figures, during 2023 there were 5,373 reports of cargo theft from HGVs, resulting in an estimated loss of £68 million. These figures are indicative of the scale of the losses but are incomplete and fail to take into account the impact on a trader’s profitability.
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Policy & Compliance
B IFA has been contacted by the trading Readers will be used to reading about thefts from vehicles, which are all too common for whatever reason. However, recently BIFA has been contacted regarding a different type of crime. As we all know fly-tipping is a problem – and a growing one as well – but a new variation is the use of old trailers to perpetrate the crime. Two local councils have contacted the Association for Member details in the line of their enquiries and in both cases the reason was the same. Members had legitimately disposed of old trailers, which they had no further need for, in both cases at auctions. Following the sales, the old trailers were filled with rubbish and abandoned – fly-tipping on an industrial scale. standards teams from two town councils regarding an unusual type of vehicle crime. Councils, and thus the local council taxpayer, are faced with a considerable bill to remove a trailer and the load, which often contains difficult to dispose of hazardous materials and chemicals. In each of the cases known to BIFA, the local councils had established the original owner of the trailers via the chassis numbers and acknowledged that the BIFA Member was not connected to the fly- tipping. However, they wanted to contact them for information regarding how they had disposed of the units and to whom, in an effort to track down the criminal gangs involved in what is organised crime. When Members dispose of any assets, given the above example, some form of record needs to be retained of the disposal. There are wider implications, dependent upon the nature of the asset, to consider, for example physical IT equipment will have to have the data sanitised. Also, equipment will need to be disposed of in a manner that complies with environmental controls and the Waste Electrical and Electronic Equipment (WEEE) Directive. Given increased environmental legislation and the emphasis on disposal of assets to prevent environmental harm, Members would be advised to consider the correct method and what records should be kept to ensure regulatory compliance. Criminal fl y-tippers have been using legitimately sold trailers to dump waste A different type of vehicle crime
Parking facilities One of the chief reasons for these thefts is the lack and quality of parking facilities. Poor facilities and incidents where violence is used against the driver are contributors to wider issues relating to driver welfare. These then have knock-on impacts on recruitment of new personnel and retention of existing staff. The general view is that freight crime has increased across the whole of the UK and the lack of proper security measures means that cargo is a relatively easy target. For whatever reason, the police do not devote the resources that trade believes are necessary to solving cargo crime. Many believe that police regard such theft as a victimless crime and do not treat it as seriously as it should be – in many instances, when reported a case number is issued and that is about the extent of the investigation. In certain ways business, with some government support, is already taking the lead in resolving some of the problems. The Department for Transport Lorry Parking Scheme is a step in the right direction to addressing the problem. This initiative, stemming from joint work between the department and business, has seen £52.5 million matched funding invested into upgrading facilities at existing truck stops. Thieves are becoming ever more sophisticated – whilst the old “can you deliver around the corner” still catches out the unwary, BIFA has been advised of a rising number of cases where criminals forged documents or set up fake domains and websites, pretending to be legitimate carriers as a method to steal cargo. The push toward the use of digital services is thought to make certain types of crime easier, because at some locations there is less vetting of carriers collecting cargo. Limited knowledge At BIFA we have noted reports from Members that some importers and/or exporters seem to have very limited knowledge as to what they are buying and of the company that they are buying from. Whilst forwarders are not trade policemen, crime does cause them problems, particularly with regard to obtaining payment and also for under-declared values on import DDP consignments. In cases where HMRC cannot locate the trader, because it has acted as an indirect Customs agent, the BIFA Member has to pay the additional taxes (scan the QR code to read the BIFA Good Practice Guide Appointment and Responsibilities of a Customs Agent for further information). Global problems disrupting supply chains and increasing costs at the time of writing are not lessening; in fact some argue that ever higher freight rates are making the situation worse. Many argue that the best steps to take to minimise a company’s exposure to such risks are to ensure that it has effective due diligence procedures in place to screen clients – ‘know your customer’ – and individual consignments. In addition, security procedures should be reviewed to limit opportunities for theft and deception at all stages of the journey.
“ Many argue that the best steps to take to minimise a company’s exposure to such risks are to ensure that it has effective due diligence procedures in place to
screen clients
BIFA Good Practice Guide
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August 2024 | 13
BIFA Awards
general-purpose containers to bring them up to food grade standards – a challenge that grew increasingly difficult towards the latter stages of the project. Needless to say, these efforts paid off, and the job was completed on time. “As a long-established freight forwarder our bread and butter is ocean freight. This project was unique; however, it is a testament to, and reflection of, the years of experience that our dedicated teams have,” Smith said. Another key requirement of the client, and a priority for Woodland Group in all it does, was achieving carbon efficiency. Strategic consolidated rail movements were facilitated with the aim of moving multiple containers on single trains from UK ports to the final delivery point; for these rail movements, Woodland reported an 85%+ reduction in carbon emissions versus all-truck deliveries. Smith said: “Rail is an easy fix for carbon savings, as opposed to looking at changes to warehousing, installation of solar panels and so on, which take time and cost money to implement. If the infrastructure is there, it is a no- brainer. Fifty containers are equivalent to a train or two rather than 50 trucks.” “There is a sustainability drive at our ports,” Rowlands observed. “DP World, which operates Southampton Container Terminal, will subsidise you to go to certain rail heads rather than truck, for instance.” Cost savings The rail component of this project resulted in cost savings, too, as a shortage of HGV drivers in the UK had pushed up road freight rates. Woodland Group also managed to negotiate a favourable ocean freight rate for the final batch of containers, resulting in a significant saving for its client. When BIFAlink spoke to Woodland Group in February, rates were making headlines once again owing to developments in the war in Israel. “Ocean freight rates have gone up five or six times because of the Red Sea crisis,” Rowlands said. “Volumes coming out of the Chinese export market tend to dictate rates.”
iPort rail terminal, an integral part of the iPort site – where Woodland Group has a 195,000 sq ft sustainable distribution facility.
Woodland fi nds solutions for tricky Xmas delivery
The successful delivery of over 270 containers from Mexico to the UK amid various challenges, without sacri fi cing carbon ef fi ciency, earned Woodland Group the BIFA Ocean Services Award
W oodland Group’s winning project involved shipping more than 270 containers from a Mexican plant to the UK in time to meet Christmas demand. Manufacturing had been shifted fairly late in the day from the UK to Mexico as a result of high seasonal demand and limited manufacturing capacity, so the race was on to produce and transport approximately 4,500 pallets’ worth of goods. Besides the challenges of a short timescale, large volume and the need to deliver as green a solution as possible, Woodland Group also faced an unexpected requirement. 11th hour request “At the 11th hour, when the first batch of containers had been positioned, a request was made to change the equipment to food grade standard,” said Jim Smith, account manager. “This undoubtedly became our biggest challenge, given that the factory was in a heavy automotive centric region and therefore food grade containers were extremely scarce.”
To make matters worse, added Iain Rowlands, executive director: “There was an equipment shortage around the world at that time because of COVID-19 and the Suez blockage.” Being an international business and moving products globally via any mode of transport, “there are always challenges that present themselves”, Smith said. But Woodland Group moved quickly, pushing carriers to source suitable equipment and organise the cleaning and making good of Port Express was established in 2004 to provide a comprehensive range of container transport Ocean Services Award
“ Rail is an easy fi x for carbon savings – Jim Smith, Woodland
services to the supply chain industry. Specialising in UK container haulage, Port Express works in partnership with its clients to provide innovative cost-effective supply chain solutions. Due to its ongoing investment and development in new equipment and technology, Port Express operates from strategic locations throughout the UK ensuring the level of service it delivers remains among the very best in the industry. Port Express operates to the highest standards and is committed to the health of safety of its employees, customers and visitors.
14 | August 2024
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Policy & Compliance
The state of sustainability in freight forwarding
• 60% of forwarders report that they have been approached by shippers seeking CO 2 e data. A Q&A followed on the topics of: systems integration; API uploads; offsetting versus insetting; practical measures; regulatory changes; and data quality. Members were reminded that the carbon calculator offered by Pledge.IO is accredited by the Smart Freight Centre for all modes in accordance with the GLEC framework and aligned with ISO 14083. Essential measures With the UK government’s stated national target of net zero by 2050, it is essential that forwarders large and small begin to RECORD- REPORT-REDUCE their carbon emissions as soon as possible. An accredited software package is the most reliable way to achieve this. For further information and guidance on beginning your sustainable logistics journey, and to download the full report, visit https://bifa.org/information- guidance/technical-information/s ustainable-logistics/
I n the fi rst half of the year, BIFA invited Members to take part in a survey to ascertain the State of Sustainability in Freight Forwarding. The responses were analysed by Pledge.IO and a report on the fi ndings was published at the end of June followed by a webinar attended by around 100 BIFA Members in early July. Reporting requirements Mike Jones, BIFA’s policy advisor – sustainable logistics, welcomed those in attendance and outlined the requirements for reporting of Scope 1, Scope 2 and Scope 3 emissions, pointing out that Scope 3 emissions cascade down through the entire supply chain and therefore encompass the activities of all involved, including SMEs. The findings of the survey were
“ It is essential that forwarders large and small begin to RECORD- REPORT-RED UCE their carbon emissions as soon as possible
presented by Greg Herz, Pledge.IO content manager, who made the following points: • Larger forwarders are showing greater preparedness for carbon emissions reporting; • More needs to be done to support SMEs to transition to lower emissions options and to record and report accurately; • Failure to capture carbon dioxide equivalent (CO 2 e ) data may impact a forwarder’s ability to meet customer tender and/or regulatory requirements in the near future;
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August 2024 | 15
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BIFA Awards
Broadening horizons
Young Freight Forwarder Award
Virgin Atlantic Cargo is proud to sponsor BIFA’s Young Freight
Amelia Mulhern studied human geography, which examines the effects on people of political, economic and social developments. Such factors also impact logistics, so it is perhaps not surprising that she enjoys the industry so much and was named a fi nalist in BIFA’s Young Freight Forwarder of the Year category
said, adding: “The project alongside this was to create a customer onboarding checklist for our reefer project.” Amelia was also involved in setting up K+N UK’s Women’s Network, which enables members to share experience stories, support and resources. “There is a sense of belonging,” she said, as well as opportunities for self- development. In particular, Amelia wants to develop her leadership skills as part of her career progression. Forwarder Award to recognise and encourage the next generation of industry leaders. As well as rewarding the progress of the best young people, this award helps to highlight the vital role freight forwarders play in the growth and development of the industry. VAC recognises the importance of developing and retaining talented young people and is confident this award will help to attract more recruits that want to build a future career in a sector that is so important to the economy and international trade.
“I wasn’t sure if it was for me but I am so glad I chose it,” Amelia Mulhern said. “Logistics is often a bit of a hidden industry but it underpins everything we touch.” Amelia’s current role as a trade and business development analyst at Kuehne+Nagel involves growing the company’s activity and relationships in the Far East (eastbound) and Oceania (both inbound and outbound). In addition, by providing market knowledge to sales teams in the UK, she helps them to sell K+N’s services in these sectors. Not content with deepening her understanding of her usual role, Amelia proactively sought out an
“ Logistics is often a bit of a hidden industry but it underpins everything we touch. – Amelia Mulhern, K+N
international mentoring programme, which has broadened her experience beyond dry containers. “Meeting once a week with our global reefer trade manager in Bremen, this programme has been pivotal in supporting my ongoing learning and development,” she
A quest for learning
APPRENTICE OF THE YEAR AWARD
Menzies LLP provides financial and accounting expertise, combined with strategic commercial thinking. We
BIFA Apprentice of the Year fi nalist Leanne Read has an attitude and skillset that are well suited to the freight industry – and she is continuing to broaden her horizons
and partners, too. Meanwhile, Leanne is a member of the BIFA Young Forwarder Network’s North West committee. Noting the importance of bringing young people with fresh ideas into the industry, she said: “We’re not managers yet, but in a few years’ time we will be in that position.” clients experiences our Brighter Thinking approach, the difference we make to our clients. With our in-depth transport and logistics sector experience, we promise to add real value across key areas of our clients’ businesses – to go further than just balancing the books. understand your business via our in-depth sector knowledge and use a consultancy- led approach to challenge your objectives and guide your business growth. Each of our
“I would say yes to any training I am offered. I try to absorb as much information as I can,” Leanne Read said. “It is always a benefit to know as much about the wider picture as possible for the industry you are in.” Besides her role as logistics specialist at Neon Freight, another string to Leanne’s bow is her role as mental health first aider. She sends regular team emails, wellness emails, and links to helpful podcasts and videos. “Whether people engage in this is up to them, but knowing the conversation is open in the office makes a difference,” she said. “We spend such a large portion of
our time at work that you want to make sure everyone is happy and open.” That openness applies to Leanne’s ambitions to manage her own
department, too. “I try to act in a way that someone can ask me anything and I try to help with anything I can,” she said, adding that she would welcome opportunities to travel and meet with overseas customers
16 | August 2024
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