BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
March 2022 The magazine of the British International Freight Association BIFA link Issue: 379 Mixed message: www.bifa.org
frontier experiences since 1 January 2022 – Pages 12-14
INSIDE
6: News Forwarder Pods are back for Multimodal 2022 8: Policy & Compliance Stresses in the container market 16: Profile Hemisphere Freight, winner of BIFA’s Extra Mile Award 2021 18: Profile Laura Hobby, winner of the 2021 BIFA Young Freight Forwarder of the Year Award
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Robert Keen’s Column
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Much to be done over border costs
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
Writing this issue’s comment coincided with a report by Parliament’s Public Accounts Committee concluding that Britain’s exit from the European Union has so far made trade more expensive because of delays and red tape, and that new border arrangements have added costs to business. Whatever your opinion about the rights and wrongs of Brexit, BIFA Members that work at the sharp end of cross-border trade will not disagree with that sentiment, having witnessed increased costs, paperwork and border delays. The Public Accounts Committee cautioned that the government had considerable work to do to make cross-border trade easier for businesses and that there were concerns about computer systems being developed by Customs. Few BIFA Members
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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
will disagree with those sentiments either. In the same week, the government announced a 12-week consultation on the Single Trade Window inviting responses on a number of aspects of how the frontier works. Whilst BIFA, via its policy and regional structure, is consulting with Members to ascertain their views which can then be fed back to government, we are also encouraging all Members to consider replying directly on this subject. In this edition, we begin a repeat of a series of articles that we did some years ago, updated for 2022, concerning use of the BIFA Standard Trading Conditions (STC). On our website there is a downloadable publication called ‘Know your 2021 Standard Trading Conditions’, where each clause of the STC is explained in detail. The book was originally written for an earlier edition of the STC by retired forwarder Derek O’Brien and we are grateful to our solicitor, Kay Pysden, for editing the latest version. Part 1 of Know Your BIFA STC is on page 21 of this edition of BIFAlink , and I would like to ask you to encourage your staff to read it. The more of them that understand the BIFA STC, the better placed they are to deal with the occasional dispute. I will conclude this column with some thoughts on the BIFA Awards. They may have taken place six weeks ago, but I am still enthused by the event that the team managed to put on. We did not quite top the 500 attendee mark, but the feedback has been terrific. I would like to say a special thanks to the sponsors who give up their time to meet and select the category winners. Whilst I and the BIFA team see all entries, we are completely separated from the judging process, which is entirely neutral, and for that reason the BIFA Awards are probably the most well-respected awards in the sector. I would also like to thank all who supported our chosen charity, Transaid, at the event. Transaid transforms lives through safe, available, and sustainable transport in rural Africa. It has been a tough time for all fundraisers during the pandemic, so the total raised of £3,600 was gratefully received. For another opportunity to help Transaid, cyclists should turn to page 17. There was a first this year as we asked our AV contractors to record the event; the video is available on the Awards section of bifa.org. It is easy to skip parts if you just want to see your company in the spotlight. Although not a first, a highlight of the Awards luncheon for me was presenting Gordon Day with a special recognition award. For those who do not know Gordon, he is the Honorary Secretary of the London Freight Club; if you look on page 6, you will see more about the club as well as the Glasgow Freight Club, which BIFA also supports. In light of the earlier mentioned ongoing consultation that the government is engaged upon, I will end this column by repeating what I have said several times over the past few years: Hopefully the government is listening.
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, Nezda Leigh 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
March 2022
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‘Nine months’ to solve box reliability problems Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
container cranes at its Port of Liverpool’s Terminal 1, complementing the six cranes already in place, and enabling greater efficiency and faster turnaround times for the loading and discharging of taller container vessels. They will deliver a 30% uplift in quayside capacity. DP World’s two UK ports handled a record volume of containers in 2021 after major investments in capability and capacity. London Gateway saw throughput of 1,804,871 teu, a 15% increase on the previous annual record set last year, whilst at DP World Southampton, throughput in the 12-month period was 1,871,081 teu. The UK government has announced that two new freeports in Scotland will have net-zero emissions targets that prospective bidders will have to make a pledge to reach by 2045. The bidding process opens in spring 2022 and closes in summer 2022, with the target date for new sites to be operational set for spring 2023. OVERLAND The 50,000th China-Europe intermodal train embarked on its journey towards the west at the end of January, according to Xinhua News Agency. The milestone has been achieved just over a decade after the start of intermodal freight services on the route in 2011, a year when only 17 such intermodal trains were recorded on the New Silk Road. IN THE WAREHOUSE Demand for UK logistics and industrial warehouse space – fuelled by the continuing growth in online retail – has continued to soar, with 2021 full year data (for warehouses over 50,000 sq ft in size) showing a new record high in take-up. A total 70.1 million sq ft was let or sold for own occupation, according to Cushman & Wakefield, more than double the amount of space transacted during a ‘normal’ year pre-pandemic.
ON THE OCEAN It could still take eight or nine months to iron out the disruptions causing record-low reliability in container shipping, according to a report from Sea-Intelligence, which used disruptions to schedule reliability caused by 2015’s US West Coast labour dispute as a baseline for the projection. Tight capacity and soaring profitability for shipping lines led to a new high in the orderbook for containerships in 2021, according to Drewry Shipping Consultants. Orders last year almost equalled the previous five years combined, which means there is clearly a risk of overcapacity returning to the market in 2023 that could depress freight rates, said the analyst. The World Shipping Council (WSC) is for the first time sharing concrete regulatory and economic pathways that it believes the International Maritime Organization (IMO) must take up in order for the shipping industry to achieve zero carbon emissions. It has identified six regulatory and economic pathways forward, which WSC says are critical for IMO nations to address for a successful maritime energy transition. CMA CGM, which currently carries the equivalent of about 50,000 standard containers of plastic waste annually, will stop transporting such commodities on its ships from 1 June to help prevent it being exported to destinations where sorting, recycling or recovery cannot be assured. Drewry Shipping Consultants is reported to have said that a record 7.2 million teu was added to the
global container equipment fleet last year, taking it to 50.5 million teu, driven by demand from ocean carriers, logistics operators and BCOs trying to protect their supply chains. Equipment production is expected to fall to between 4.5 and 4.8 million teu in 2022. P&O Ferries has launched a free digital product to assist freight customers in dealing with Brexit complexities. It helps haulage companies to navigate the pre- journey process and to make check-in procedures at the ports as simple as possible for all their drivers, by identifying which documents are required for each movement based on the route and the cargo being shipped. IN THE AIR Bloomberg has reported that Gatwick Airport will reopen its second terminal in March as easing Covid-19 restrictions give airlines confidence to add flights amid a budding travel rebound, nearly two years after it was mothballed to cut costs.
Strong air cargo rates are set to continue but capacity and ground handling challenges will remain. That was the conclusion reached at the World Cargo Summit’s Air Cargo Market Update & Outlook, which focused on the market outlook for 2022 and beyond, hot spots for growth and the outlook for cargo charters. The UN Economic Commission for Europe (UNECE) and the International Civil Aviation Organization (ICAO) have completed new digital air cargo technical specifications guidance. This is aimed at helping to accelerate the transition towards safer and more resilient supply chains, and permitting the air transport sector to transition away from longstanding paper-based documents used to facilitate the movement of global air freight. ON THE QUAYSIDE Peel Ports Group has completed the commissioning of two additional Liebherr ship-to-shore (STS)
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Forwarder Pods are back for Multimodal 2022
Igor Popovics welcomed to policy and compliance team The Association is very pleased to advise Members that Igor Popovics has been appointed as Policy and Compliance Advisor with responsibility for Customs and frontier-related issues. Igor joins BIFA at a challenging time for those engaged in Customs and related matters, with the new procedures and IT systems designed to facilitate the UK’s departure from the EU still being ‘bedded in’ or implemented. At the same time, the programme to replace CHIEF with CDS is being rolled out and government is looking at implementing the Single Trade Window.
The Multimodal exhibition returns to the traditional summer slot this year and BIFA will again be at the centre of a forwarder village. Around our stand there will be 36 ‘log pods’ available
from the organiser, Clarion Events, for £950. These were very popular last year and we
understand that over half have already been sold for June 2022. If you do book one, please note your contract is with Clarion and you should read its terms before committing as BIFA cannot intercede should there be any dispute. If you decide not to take this low-cost route to exhibiting, hopefully you can come and meet the BIFA team at the NEC in Birmingham between 14-16 June. For details of log pods, please contact Robert Jervis
at Robert.Jervis@clarionevents.com or visit www.multimodal.org.uk
Industry socialising returns to normal
With life in the UK beginning to return to some sort of normality, it is good to see industry socialising groups meeting again. Socialising with industry colleagues has taken a dip in many sectors, with a massive expansion of televised sport, more TV channels and longer pub opening hours; but these clubs continue to provide easy-to-get-to venues and top- quality events. In Scotland, the Glasgow Freight Club holds lunches, golf and snooker competitions and a top- class dinner and dance each year. In London there are seven lunches each year and a golf society. These clubs are entirely member
(pictured) who is the honorary Secretary of the London Freight Club. He is a man who gives up his time to make sure hundreds of freight professionals can meet regularly and have a good time. The London Freight Club met a few times in the second half of 2021 and has a full programme planned for 2022. Meanwhile the Glasgow Freight Club hopes to hold the Raymond Clarkson Lunch on 20 May at the Crowne Plaza. For more information about these events, please contact either Gordon Day at londonfreightclub@hotmail.com or Craig Fyffe at craig@theglasgowfreightclub.org
driven and raise huge amounts for charity every year. At the BIFA Awards ceremony in January 2022, we were pleased to present a special recognition award to Gordon Day
Containerline reliability hits record low
Prior to joining BIFA, Igor held a position at the London Chamber of Commerce. Whilst primarily fulfilling a Customs role, he did gain valuable knowledge of Rules of Origin and Carnets. This experience will benefit both the Association and membership. We hope that BIFA Members will welcome Igor to the Association and we wish him all the best in his role. You can contact Igor at i.popovics@bifa.org
Containerline schedule reliability has fallen again, this time by 1.2 percentage points on a month- to-month basis to 32%, according to the latest report from maritime analyst Sea Intelligence, which included figures up to December 2021. This was the worst global schedule reliability recorded since Sea-Intelligence started the measurement in 2011. On a year-to-year basis, schedule reliability was 12.5 percentage
points lower. Despite the low schedule reliability in 2021, there has not been much fluctuation, with the global scores hovering between 32% and 40% for the most part. The average delay for late vessel arrivals increased to 7.33 days, the fifth consecutive month with the delay figure above seven days. Among the world’s 14 largest container lines, Maersk had the highest reliability, with 46.2%. Maersk-owned Hamburg Süd came
in second with 41%. MSC is third, followed by Hapag- Lloyd. Five carriers had schedule reliability of under 20%, with Evergreen recording the lowest December 2021 schedule reliability figure of 14.3%. Asian container lines usually have lower reliability rates as a large part of their business takes place on the route to the US via the Pacific Ocean, which is the most strained route of all.
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South Korea fines 23 lines for price fixing
Clecat reports that on 18 January, the South Korea Fair Trade Commission (KFTC) fined 23 ocean carriers a total of US$81 million for illegal collaboration on price fixing on the South Korea to Southeast Asia lane between 2003 and 2018. Most of the major liner operators and several regional carriers were among those fined, including HMM, SM Line, Korea Marine Transport
(KMTC Line), Pan Ocean, Sinokor, Maersk, Evergreen, Yang Ming, Wan Hai, SITC and Cosco. Investigations began in July 2018, after timber importers complained to the KFTC that liner operators had simultaneously increased freight rates on the South Korea to Southeast Asia route. While the liner operators claim South Korea’s
Shipping Act permits collective actions on freight rates, KFTC chairperson Joh Sung-Wook said their acts were “illegal” as they failed to meet certain criteria permissible under the law. She noted that liner operators must report any collective actions to the minister for oceans and fisheries and give 30 days’ notice of any change to freight rates or services to shippers.
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By air – Warsaw Convention (17 SDR): £17.59 per kg
By sea – Hague Visby rules (2 SDR): £2.07 per kg £689.96 per package
BIFA STC: (2 SDR): £2.07 per kg
By road – CMR (8.33 SDR): £8.62 per kg
(The SDR rate on 15 February 2022,
By air – Montreal Convention (22 SDR): £22.77 per kg
according to the IMF website, was 1.03494)
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Stresses in the container market
Since 2020 due to COVID-19, and in the UK the additional pressures of Brexit, the logistics industry has operated at full capacity and beyond. The last year presented multiple challenges to every aspect of the freight industry – and there appears little respite as we head into 2022. The first real respite will be indicated by a sustained fall in maritime freight rates, but given the fact that market control has shifted in favour of carriers this is likely to be some time in coming. Since the start of 2021, the industry has responded to a range of stresses that have included, amongst many things, a sustained imbalance of equipment, a brief blockage of the Suez Canal, sporadic port closures and ongoing congestion in numerous nations, together with strong demand for consumer goods from Asia. The last half century has developed a high reliance on standardised freight units for the transport of goods internationally, especially in the maritime mode. The TT Club has highlighted that where containers are in short supply, those depending on the arrival of an empty unit for packing and dispatch of goods might take a more lenient approach to pre-packing inspection, in the knowledge that an immediate replacement might not be available. The consequences of inadequate controls will be varied. There are concerns that container shortages are leading to both a slip in maintenance standards and the retention of some older containers that are ready for retirement
supply chain. Ensuring that controls, processes, records and, importantly, maintenance regimes remain valid is critical to underpin safety. Maintenance and condition are vital for all in this complex web of inter-relationships, where control at national level may also be somewhat opaque. Inevitably, as the age profile of container fleets increases, additional maintenance may be required to ensure physical integrity and cargo worthiness. Controls will include many facets, and in the context of the cargo protection, TT recently highlighted the prevalence of wet damage risks where units are inadequately checked and repaired prior to packing. Maintaining the in-service repair standard is required to prevent the risk of serious structural failures. Some of these may be less obviously visible, but corrosion, physical damage or wear to door hinges, pins and locking equipment, for instance, have the potential to cause bodily injury, either where equipment becomes seized and requires force to operate, or in more serious cases where a door becomes detached. Inevitably, the floor of a container is a component that is routinely placed under stress through the packing and unpacking phases; whether pallet or forklift trucks are used, maintaining the strength of the floor panels to prevent them being compromised through weakness or delamination is essential. Similarly, corner posts and castings are vitally important components for effective intermodal operations; the ability to engage twist locks on spreaders for lifts, or for connection aboard containerships and on other modes of transport is critical in mitigating risks of dropping or loosing containers from their fixed position. Another key aspect of structural safety is the stacking capability of the container, which has been subject of regulatory debate over the last decade. While in container yards, units will typically be stacked four or five high, on board
containerships this can extend to 10 or 11 high. A serious structural deficiency in a container towards the bottom of such a stack, in dynamic circumstances, has the real risk of causing a collapse and loss overboard. During the lifetime of a box, it may be expected that a range of commodities will be packed, any of which may stretch the design capabilities, whether loose scrap, high density cargo or flexitanks. Further, whilst the majority of containers will be carried or handled in a fashion aligned to the units themselves – spreader-based lifting equipment, land-based platforms with corner fixings or cellular ships – this is not a given. The recent supply chain crunch has spurred a resurgence of the use of bulk vessels to carry units, presenting various risks including increased stresses on the containers themselves. Shipper-owned containers In addition, the BIFA Secretariat has noted an increase in enquiries from Members regarding shipper-owned containers. These enquiries are varied in nature, including questions regarding responsibilities for the condition of containers and remedying issues should that condition create a problem on a quay, or worse still on board a vessel. The other question often received in connection with such containers relates to responsibility for its restitution, a point which seems to be regularly overlooked by shippers. The humble container, ‘The Box’ as it is sometimes referred to, has facilitated maritime trade since 1956. It is the cornerstone of the market and it is important to ensure before loading that it is fit for purpose and is suitable to ensure safe transport of the cargoes contained within it. BIFA would like to thank the TT Club for allowing the reproduction in this article of information originally published in TT Talk: considering freight containers.
Immediate repercussions One of the immediate repercussions of
equipment imbalances, shortages and increase in new equipment costs has been a tendency for owners and operators to retain equipment that would ordinarily have been retired from service. The direct impact of older equipment being in service could well be negligible, so long as it remains well maintained and serviced in line with the International Convention for Safe Containers (CSC). Additionally, there has been anecdotal evidence of containers being brought back into service from retirement. This practice has the potential to present more challenges for all in the
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BIFA supports National Apprenticeship Week BIFA teamed up with members of the BIFA Young Forwarder Network (YFN) to speak with students at schools and colleges across the country
National Apprenticeship Week (NAW2022) once again provided an opportunity for employers to promote careers in logistics for young people. Throughout the week, BIFA Executive Director Carl Hobbis teamed up with colleagues and members of the BIFA Young Forwarder Network (YFN) to speak with students at schools and colleges across the country. Our events at South Essex College, the Felixstowe School and one in support of employability charity Spark! – which included 60 students from four local schools near London Heathrow – were supported by BIFA YFN members from Woodland Group, Burhill Logistics and CH Robinson. Highlights As well as sharing our reasons to consider logistics, BIFA Members outlined their perspectives of working in the industry and what employers look for when recruiting – all valuable advice for the workforce of the future. A highlight for us was the Felixstowe School event, where there were over 400 students in attendance across Years 10 and 11! As part of our ongoing partnership with the Logic Studio School in Feltham (West London), we held our first ever Logistics Jobs fair for their Year 13 pupils who are contemplating the next steps in their careers. Once again this was an event that was greatly supported by several BIFA
Carl Hobbis, Training Development Manager BIFA, and Brooke Jennings, Burhill Logistics, visit the Felixstowe School
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“It would be great if we could get the figure past 1,000 by the end of 2022, which is achievable in light of the fact that BIFA’s membership now stands at more than 1,500 companies. “As an industry advocate, BIFA saw NAW2022 as a fantastic opportunity to promote logistics as a ‘career of choice’ rather than a sector that jobseekers ‘fall in to’. It was fantastic to see more Members get involved and raise the profile of the sector to the next generation. We ideally do not want people to fall into it, but we must help ourselves as an industry more. We are grateful to all those Members and individuals who gave up their time to support us.” With National Apprenticeship Week over, our focus turns to National Careers Week (7-12 March) – keep an eye on our social media channels for information on activities taking place. Apprenticeships are fantastic value for SMEs For SMEs, the 18-month apprentice training programme can cost as little as £450 per apprentice and includes all training and a BTEC Customs qualification for the apprentice as well, which makes it great value. With skill shortages in all areas, BIFA is committed to encouraging its Members to capitalise on apprenticeship opportunities to add talent to their workforces. We have a dedicated apprenticeship site which contains all sorts of useful information, assets and practical tips for Members at https://apprentices.bifa.org/ Or for a specific enquiry, contact Carl Hobbis at c.hobbis@bifa.org
Members who came along to promote their upcoming apprenticeship and entry-level vacancies. To round off the week, BIFA hosted a free online event for Members centred around the International Freight Forwarding Specialist standard, with guest speaker James Billingham from the Skills Office Network. We were joined by aspiring apprentices and employers looking to find out more about this popular route into logistics and gave employers numerous tips to navigate the apprenticeship pathway. Executive Director Carl Hobbis shared his thoughts on why more BIFA Members should consider apprenticeships as a cost-effective way
to grow their teams. “Despite a good start after the launch of the International Freight Forwarding Specialist apprenticeship in 2018, uptake has been hit by the disruption caused by the pandemic and the post-EU Exit transition period to many freight forwarders’ daily operations,” he said. Ideal entry point “The International Freight Forwarding Specialist apprenticeship, which BIFA helped create in 2018, is an ideal entry point to the industry with over 600 apprentices already having taken the pathway with great success. It is the only apprenticeship standard with Customs as a mandatory module.
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Mixed message: frontier experiences since 1 January 2022
The start of this year saw the implementation of the second stage of frontier controls required to facilitate the UK’s withdrawal from the EU, which had been delayed for six months whilst infrastructure was built, computer systems re-designed and operational processes finalised. This article assesses how things are going
Since 1 January 1993, the movement of goods between the EU and UK had been a transport rather than a freight forwarding activity, with trade reliant upon the free flow of goods with minimal controls. The introduction of regulatory checks on 1 January 2022 has had a disproportionately disruptive impact on cross-border freight movement by truck for various reasons. The relatively short crossings, the volume and speed of movements, and the reliance on small operators all create problems. From a UK perspective, BIFA has maintained that the implementation of stages two and three (the latter is due on 1 July 2022) would be the most challenging elements of the country’s withdrawal from the EU. Why? Stage one, which took
effect on 1 January 2021, dealt mainly with export processes from the UK, with minimal additional import controls. Exports from the UK to the EU account for around half the volume of imports travelling in the other direction. Also, the additional export Customs procedures were more familiar to many freight forwarders, closely following familiar National Export System (NES) practices. The Goods Vehicle Movement Service (GVMS) had been introduced in 2021 primarily for transit movements. From January 2022 the system was considerably expanded to facilitate all movements through ro-ro ports using the ‘Pre-lodgement’ Customs model, although GVMS was only made fully available
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BIFA is concerned that trucks are regularly delayed for up to three days whilst relatively simple queries are resolved
for use in December 2021. BIFA had warned HM Revenue & Customs (HMRC), on behalf of Members, that the time period for testing and familiarisation was insufficient – a valuable lesson for HMRC and other government departments. For many years there has been a growing concern that HMRC officers have become too remote from frontier operations, a scenario exacerbated by Border Force undertaking frontier inspections on behalf of HMRC. Since 1 January 2022, whilst BIFA notes that individual HMRC officers are endeavouring to ensure that GVMS functions, we believe that officials not sufficiently familiar with how the frontier operates are making policy decisions without adequate consultation, hampering their colleagues’ efforts to create a workable model.
Another issue that BIFA has highlighted is the fact that in inventory-linked systems, the operational process and the order in which things are done is driven by the inventory, which is not the case with GVMS, leading to procedural variations that directly cause non-compliance issues. An example being ferry operators not correctly ‘boarding’ a Goods Movement Reference (GMR), which creates additional work for other parties in the supply chain, who then have to manually ‘arrive’ the Customs declaration in order to clear the goods. The fact that in many cases GVMS does not provide sufficient visibility to all parties about the status of the Customs declaration and GMR also causes problems. Some of the issues that the logistics sector has raised have not been addressed, leading to widespread non-compliance affecting 10%-20% of all road freight movements between the EU and UK. The most common issue being the failure to attach all the relevant Customs declarations to the GMR. The other frequently reported issue is that hauliers are failing to report to Inland Border Facilities (IBF) as required, with BIFA Members having to direct drivers to go to an IBF because they
Customs procedure concerns The BIFA secretariat and the trade association’s wider
membership have frequently warned HMRC that the haulage sector, especially where owner drivers transport the goods, often have little knowledge of Customs procedures. Their primary role is to transport cargo and there could be compliance issues.
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sector well, that is less so in the overland arena. Relative to EU Exit, BIFA wonders whether too many of the policies have been designed to appeal to too many parties and have caused confusion. One example was the last-minute decision to allow GVMS to operate at inventory-linked ro-ro ports; another is clearer messaging to drivers provided by the French Logistics Envelope system. BIFA is concerned that trucks are regularly delayed for up to three days whilst relatively simple queries are resolved. Members frequently complain about a lack of trained staff and confusion regarding who to report to at an IBF. Concerns also remain over the handling of cargo where an importer’s Deferment Account limit has been exceeded. For goods in a warehouse awaiting clearance this is relatively simple, but this becomes more complex when a truck driver wants to deliver cargo to complete their journey. Reports suggest that freight is often offloaded, with no receipt given for the cargo at the IBF. Non-compliance There is also a strong belief that non-compliance is being under- reported. Queues at Dover over the weekend of 21-22 January indicate that all is not well with the new systems. Members have swiftly realised that manually arriving an entry with RRS01 creates a false impression that the consignment has been correctly auto- arrived when, in fact for whatever reason, it has not. The other problems we are being advised of relate to the functioning of the system. For whatever reason, it does not function as expected and on occasion does not seem to process data or generate outputs in the manner expected. One such problem reported to us was that the system failed to facilitate the automatic generation of S8s for goods being exported from ‘pre- lodgement locations’. Many exporters rely on it as the primary evidence of export to support the zero-rating for VAT purposes of export consignments. It is possible to print screen shots of the export declaration (EXD) and send commercial documents to support the zero-rating, but this increases the freight forwarder’s workload. BIFA Members who have addressed the new operating environment early, for instance by raising the GMR themselves and controlling the whole movement, appear to be encountering fewer issues than those who are allowing the haulier to raise the movement reference. From the 1 July 2022, the extra requirement to raise an ENS prior to moving goods from the EU to UK has to be considered. Members are asking BIFA the following questions about GVMS: Who will do it? How will it be done? What information will be transmitted? And to whom? At the moment freight forwarders are endeavouring to make GVMS function properly but are encountering considerable difficulties. Some of these are the result of initial incorrect policy decisions, allocating functions to the wrong party within the supply chain and implementing GVMS without adequate testing and familiarisation. In the short to medium term, GVMS will need to be upgraded to provide better functionality. We have already seen a small step in the right direction with an upgrade which now indicates which IBF a driver should attend when an inspection is required. BIFA is now urging government to take heed of the lessons learned during EU Exit when developing new systems, such as the Single Trade Window.
have become aware of them ignoring a ‘Inspection Required’ message, or the manual arrival of goods has led to a Customs intervention. BIFA continues to receive reports of drivers reaching their depots with uncleared goods on board, including firearms and pharmaceutical products. This is leading to an unusual situation where the customs agent/freight forwarder is having to undertake roles that either HMRC or Border Force should be fulfilling. This is further evidence that the design of Customs and other regulatory systems should be based on the knowledge of people who have practical experience of frontier freight flows. Another important point to stress is that from 1 July 2022, an import safety and security declaration (ENS) will be required; the truck operator is the party legally obliged to submit this, which is much more complex than a GMR. Whilst the haulier can allow a third party to submit the ENS, the legal obligation to ensure that the declaration has been submitted remains with the former, which many see as an unrealistic proposition, and an additional workload that the sector is inadequately prepared to handle. Forwarding processes are complex, especially where they interact with government systems, and whilst Customs procedures and the supporting IT systems, which were largely set by the European Commission, serve the air and maritime
A frequently reported issue is that hauliers are failing to report to Inland Border Facilities as required
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March 2022
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BIFA Awards
www.bifa.org
EXTRA MILE AWARD SPONSOR
The Suez Canal blockage was another headache. Several components were stuck on board the Ever Given, which ran aground in March 2021, and there was no way the shipment would reach Hemisphere’s facility on time. The company advised its client to reorder – which enabled assembly to continue as planned and finish on schedule. By the conclusion of the contract, Hemisphere had produced 29,460 assemblies for the client, amounting to 848,698 kg of cargo. Success So successful was the project that the client is now outsourcing all of its assembly to Hemisphere. The two firms are working together to devise a solution for an additional 2,000,000 assemblies over the next three or four years. Hemisphere director Louis Perrin said: “Our industry has always been flexible and agile, especially when it comes to small and medium- sized freight forwarders; so we were in a good place to react to challenges like the pandemic, Brexit, the Suez Canal blockage, driver shortages... “We also took on extra staff to keep up with demand. This was difficult – there was high demand across the industry – but we grew our headcount by 22% in 2021. “As we have said, we are like a duck on water; the customers do not see all the challenges we deal with on their behalf. We take on the headaches and hassles of logistics for them so they can focus on other areas of their business; we are a facilitator.” The pandemic has certainly revealed the strengths inherent in the logistics sector, and its vital role in areas ranging from critical infrastructure projects to the distribution of medical supplies. “It has shown the world how important shipping and transport is,” Joseph said. Descartes gives international freight forwarders and shippers a single Customs Platform to import and export freight across international borders. Descartes’ Customs, freight and transport management software is used by most of the major forwarders and shippers in the UK to maximise speed of entry with single data entry for multiple countries, boosting productivity and improving data quality. Descartes’ transport management solutions will increase efficiency, reduce costs and enhance customer service when using outsourced multimodal transportation operations.
Left to right: Craig
Perrin, Simon Joseph and Louis Perrin
A flexible approach keeps metro on track Going the extra mile often involves leaving one’s comfort zone – and that is certainly what Hemisphere Freight did last year, extending its services beyond their normal scope under challenging circumstances and going on to win BIFA’s Extra Mile Award
Hemisphere Freight’s client in its BIFA award winning project had to supply Mexico City Metro with a new rail track assembly. This involved procuring individual components from locations in Europe, India and Asia, then shipping these products to the UK for assembly, packing and onward transport to their final destination in spring 2021. Assembly was impossible for the client to carry out at its own facilities within the narrow time window of just a few months. Client’s operation So, said Craig Perrin, director at Hemisphere: “We mirrored our client’s operation and scaled it up. We brought in the necessary equipment and our client provided training; we implemented quality checks, SOPs to follow and supervisor checks, so everything was quality controlled. We managed to set ourselves up and be operational within two weeks, which was quite an achievement before the project had truly started.” According to Simon Joseph, total logistics manager at Hemisphere, the speed of the job
was as impressive as its quality. Hemisphere’s proximity to the port of Felixstowe shortened transit times, saving 45 days. The worst case scenario would have been a wholesale shutdown owing to COVID-19 infections. Hemisphere personnel tested themselves regularly, and additional staff were trained up to cover any absences so that the assembly line could continue uninterrupted. The pandemic posed other problems, too. Joseph said: “When COVID-19 hit there was no space on vessels from the Far East for about six weeks, and a lot of the components were being sourced from places like China, Vietnam and India. We planned ahead and booked space on vessels before products were ready. “We were like a duck on water,” he continued. “We had to work hard and be flexible; we also had excellent global partners that assisted us.”
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March 2022
BIFAlink
www.bifa.org
Join Transaid’s Malawi cycle challenge 2022
special place in our hearts as it was our first cycle challenge of any kind. Over the years we have worked on both access to healthcare and driver training programmes in Malawi, the most recent of these involving the bicycle ambulance – a simple but very effective lifesaving mode of transport.” Commenting on the importance of Transaid’s international cycle challenges, she added: “These events provide a fantastic opportunity for supporters to see the countries we work in, and they contribute essential unrestricted funding towards the testing of new programmes to improve road safety and access to healthcare. “There has been lots of talk about a possible return to Malawi, and we are naturally delighted to be launching this event. We also hope to welcome many new faces on board.” Register today Interested in registering today? Scan the QR code below for the full exciting itinerary and more details in the Transaid Information Pack. Places are strictly limited, register at: https://secure.discoveradventure.com/booking/b ook-now/?scheduled_trip=3505&client=1725 If you would like to talk about the challenge in detail before registering, or have questions, please contact Florence Bearman, head of fundraising, on 07875 284211 or email florence@transaid.org.
Transaid is excited to announce that its tenth African cycle challenge, Cycle Malawi 2022, is nearly full! There are limited places still available
Experience gorgeous Southern Malawi on an unforgettable challenge covering a distance of more than 500 km. Transaid has limited places available for this amazing 2022 challenge. Don’t miss out on joining teams and individuals from Microlise, Michelin, BigChange, Pallite and a whole host of other companies in taking part in this life- changing adventure. This incredible challenge will take you on an epic five-day cycle through the warm heart of Africa. Starting in Senga, the ride will set out on some long distances and challenging climbs, taking in breathtaking African sunsets and unique wildlife before finishing in Mulanje, close to the Mozambique border. The stunning route will take in the incredible Lake Malawi, Mount Mulanje, Liwonde National Park and the Zomba Plateau. Cycle Malawi offers a unique opportunity to connect with other Transaid supporters fundraising for a cause close to the heart of the transport and logistics industry. You will forge
lifelong connections through shared experiences. Cycle Malawi is tailored to take in some of Malawi’s best sights and put you to the test physically at the same time. The key details are: Dates: 1-9 October 2022 Duration: 9 days – Cycling: 5 days Distance: 502 km Registration fee: £349 Minimum fund raising target: £3,800 The ride, which is being organised by charity cycle tour specialist Discover Adventure, will provide an opportunity to discover Malawi away from the tourist trail, witness local life in rural Africa, and to visit one of the many countries Transaid has worked in over recent years. Famed for its spectacular beauty, Malawi played host to Transaid’s first cycle challenge in 2006 – when 12 riders raised £33,000 to support its lifesaving work. Announcing the ride, Florence Bearman, head of fundraising at Transaid, said: “Malawi holds a
Please note: this challenge was due to take place in September 2020, and then September 2021, but has been postponed for a final time due to COVID-19.
March 2022
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BIFAlink
BIFA Awards
www.bifa.org
Laura accepted her BIFA Award from Matt Dawson MBE
An appetite for new adventures
Laura took part in the BIFA Young Forwarder Network Transaid charity run
together and share information. Recently, she took part in a charity run with fellow committee members for Transaid. Laura believes the most important thing for a company’s success is to keep staff motivated. For example: “Rather than just quoting all day, I tried to make the inside sales executive role here more fulfilling. It now incorporates a natural career path towards business development manager or supervisor. Our inside sales executives get additional responsibilities, such as building relationships with their own customers.” Impact Laura’s main impact at FS Mackenzie so far is her redesign of the internal rate sheets, covering everything from spot quoting to a smart freight calculator. “I made new rate sheets from scratch using Excel; they include everything needed to generate an instant price. This saves time for our customers and reduces internal communications about billing,” she said. The new sheets are now used throughout the company. Also, during the last year or so, FS Mackenzie has been implementing a CRM system (under Laura’s guidance) for all quotes and other data that will provide valuable insights into the business. “I think these two changes will stay with the
Laura Hobby, winner of the 2021 BIFA Young Freight Forwarder of the Year Award, thrives on change and challenges – making her ideally suited to a career in the logistics industry
YOUNG FREIGHT FORWARDER OF THE YEAR AWARD SPONSOR
Everyone has always advised me to volunteer for things and to say ‘yes’ to any opportunity, and I have learnt a lot by doing that.” Laura takes inspiration from her lifelong hero, entrepreneur Peter Jones, who once said: “For many young people, on-the-job training and hands-on experience is the real route to employability, not a university education” – though of course, she has done both. Not only does Laura love to learn, she also loves to teach and is currently enjoying passing on her knowledge to individuals within her own and other teams, as well as young individuals within the local community at careers events. In addition to this, Laura is also the chairperson of the BIFA Virtual Young Forwarder Network, which promotes and encourages young people in the industry to network, learn Virgin Atlantic Cargo is proud to sponsor BIFA’s ‘Young Freight Forwarder Award’ to recognise and encourage the next generation of industry leaders. As well as rewarding the progress of the best young people, this award helps to highlight the vital role freight forwarders play in the growth and development of our industry.
As this issue of BIFAlink went to press, Laura Hobby was settling into a new role at FS Mackenzie. She is now a project manager, working alongside the company’s IT manager and an external expert to improve utilisation of FS Mackenzie’s software system. This will reduce manual errors and ultimately result in better customer service. Laura had previously set herself the ambition of progressing from inside sales supervisor to inside sales manager to senior management. “I am very excited about this new adventure,” she said. “It is a good fit for me because I am very technical and good with numbers – plus, my degree in business and management included project management.” Challenge and change She is also looking forward to travelling to other FS Mackenzie offices as part of her new role. “I do like a challenge and a change,” she said, observing that she has often been asked to help with tasks that were outside her remit. “That has benefited me in my career because I have picked up a lot of knowledge for my age.
company for a long time,” Laura said. Clearly, organisation is one of Laura’s
strengths; another is time management. “The last few years have not been what I had expected,” she said. “I was doing my degree, changed my job (joining FS Mackenzie in 2019), then COVID- 19 hit, then I got the supervisor role... but having a confident mentality that I would get everything done seems to have worked. “I was considering doing a Masters next – but for now, I am all studied out. I think I need a holiday.”
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March 2022
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