BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
December 2022 The magazine of the British International Freight Association BIFA link Issue: 388 Freight Development www.bifa.org
Pathway launches: Exclusively for BIFA Members
– Pages 12-13
INSIDE
6: News Government extends Trader Support Scheme
8: Policy & Compliance
Calculating your greenhouse gas emissions
10: Policy & Compliance Proposals on demurrage and detention charges
22: BIFA Awards The hottest ticket in town!
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Robert Keen’s Column
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Problems pile up as Christmas approaches
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
As I wrote this issue’s column, the FIFA World Cup was about to start in Qatar, but not even that event is likely to revive Britain’s spirits heading into Christmas and the winter months when heating bills are forecast to be painfully high. Business confidence levels are at their lowest since the pandemic lockdowns. The Office for National Statistics in mid-November showed that manufacturers and retailers are reducing stock levels in anticipation of weak sales.
Web site: www.bifa.org E-mail: bifa@bifa.org
(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
As well as increasing costs, other trade headwinds are challenging UK businesses, with industrial action slowing goods transit through ports, government IT system errors complicating already clunky trade processes, and looming public-sector worker strikes adding to day-to-day disruptions to economic activity. None of which is welcome news to BIFA Members who are, to a large extent, responsible for managing the supply chains that underpin global goods trade. There have been many words dedicated over the past two or so years to the theme of post-COVID-19 recovery and resilience. But during that time a frequent refrain we have heard from Members, and something that I have often said, is that ‘the only thing you can expect in supply chains is the unexpected’. But one thing that was entirely expected was the problems surrounding the replacement of CHIEF with CDS for processing Customs entries and as of mid-November multifaceted issues continued to face Members, resulting in many calls to the secretariat asking for help and more action in our ongoing discussions with HMRC. The picture is mixed, but many BIFA Members have expressed their frustration at having to use a service that they feel is more cumbersome to use, less reliable than its predecessor and adds significant costs in both time and money to their operations. Clearly Members do not care which part of the system is at fault, they just want someone to take responsibility and make sure that the service as a whole works, which is certainly the tone of our current significant and lengthy discussions with the relevant parts of government. On a more positive note, November saw the launch of our programme called ‘Freight Development Pathway’ in partnership with Manpower, part of the ManpowerGroup, one of the world’s leading workforce solutions companies, aimed at helping to identify, attract and train suitable candidates from outside the freight forwarding and logistics sector for career opportunities with BIFA Members. The programme is part of BIFA’s initiative to address the well-documented recruitment issues that the freight and logistics sector faces, and sits alongside our schools programme, as well as the Freight Forwarding Specialist Apprenticeship standard that we helped to develop. We have also seen the good news about the shortlisting of 26 freight forwarding companies as finalists for the nine service categories of this association’s Freight Service Awards, with 12 individuals also making the finalist shortlists in the Apprentice of the Year and Young Freight Forwarder of the Year categories. The winners will be announced at the sold-out BIFA Annual Luncheon and Awards Ceremony on Thursday 19 January 2023 when footballing legend Kevin Keegan will host many BIFA Members and their guests, which gives us all something to look forward to. Finally, I am paying tribute to Neville Chesworth, a BIFA stalwart who has recently passed away aged 86. Neville was managing director of World Transport Agency (WTA) from 1986 to 1994, when the WTA head office was in Hounslow. Neville was an active member of the west London branch of the Institute of Freight Forwarders, serving as National Chair from 1986 to 1987. I have fond memories of his kind and gentle nature when I joined the BIFA Council about 20 years ago and at that time Neville was a BIFA Vice President. Our condolences to his family.
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, Igor Popovics, Brooke Neilson, 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
December 2022
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chain to have a more comprehensive approach to halting the trend. It has recently updated its guidance publication Book it Right, Pack it Tight , whilst planning to continue with a series of seminars on the subject in 2023. RFG urges GBR to drive rail freight growth Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
OVERLAND The Railfreight Group (RFG) has called for an ambitious target to be set for Great British Railways (GBR)
Maritime consultancy Drewry is urging shippers to start planning for decarbonisation in shipping. It warns of up to US$14 billion in extra costs associated with the pressure to decarbonise and reduce emissions of greenhouse gases across all sectors, not just shipping. IN BUSINESS With margins under pressure and labour in short supply, some see an emerging sea change in the traditional freight forwarder-client relationship around automation. Some forwarders are looking to invest in automation first and then pitch their solutions to potential clients, rather than to win a contract and then possibly install automation if appropriate for efficient and profitable execution. ON THE QUAYSIDE Container depots face a flood of unwanted boxes as retailer inventories run high and demand continues to weaken. Some container depots across Europe are turning business away due to capacity issues and industry experts warn that pressure on depots is set to increase, with the
to drive rail freight growth. Responding to the Call for
Evidence from the GBR Transition Team, RFG highlighted the potential for freight growth and the need for GBR to work with the private sector freight operators and customers to bring more goods to rail. IN THE AIR Global air cargo demand in September, measured in cargo tonne-kilometers, fell 10.6% compared with September 2021 (also -10.6% for international
operations), according to IATA data released in November. Demand continued to track at near pre- pandemic levels (-3.6%), whilst
capacity was 2.4% above September 2021 (+5.0% for international operations) but still 7.4% below September 2019 levels (-8.1% for international operations). Aircraft manufacturers are predicting that the next two decades will see a rapid increase in demand for air cargo. However some experts believe this optimism may be overhyped, saying the long- term view of bullish air freight demand may be offset by the near and medium-term challenges posed by a host of macroeconomic and geopolitical issues. Speaking at TIACA’s Air Cargo Forum event in Miami, Boeing vice president commercial marketing Darren Hulst said the last couple of years have confirmed the importance of maintaining supply chain connectivity through the use of freighters. The pandemic confirmed once and for all that more than half of air cargo traffic will in future be carried by dedicated freighters. ON THE OCEAN With serious fires occurring on containerships every 60 days on average, TT Club is once again calling for everyone in the supply
further release of container inventory into the market.
Strikes affecting container operations at the port of Liverpool have come to an end after Peel Ports and Unite the union struck a pay deal in mid-November. Forth Ports’ operations in Grangemouth and Tilbury have welcomed five and seven new low emission Kalmar straddle carriers, respectively, as part of a multimillion-pound investment in equipment for the group’s key container terminals.
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Liverpool Dinner – donations made to local charities
Government extends Trader Support Service until December next year The Trader Support Service (TSS), which helps businesses move goods between Britain and Northern Ireland, has been extended until the end of December 2023. The TSS was set up in 2020 to help businesses and traders understand the changes stemming from the UK’s exit from the EU and the associated Northern Ireland Protocol, and their effect on the way goods move between Britain and Northern Ireland. The service provides end-to- end support to manage declarations, including completing import and safety and security declarations on behalf of traders. The TSS also provides guidance and training to help businesses understand what the Northern Ireland Protocol means for them and runs a call centre for traders. Since the Northern Ireland Protocol went live on 1 January 2021, over 47,000 traders have registered with TSS; there have been over 560,000 goods movements created involving over 2 million consignments and over 100,000 inbound calls to the TSS contact centres. HMRC recognises the significant support that the service has provided to businesses and the large number of traders that have benefited from its assistance over the past two years. The government intends to ensure that traders are supported throughout 2023 to meet the requirements of moving goods between Britain and Northern Ireland, including tailoring this support in response to the changes the government is seeking to make to the Protocol. Businesses can sign up to the TSS at: www.gov.uk/guidance/trader- support-service and access free online courses and training materials.
As reported in the November issue of BIFAlink , the BIFA Liverpool Region Annual Dinner took place at the end of September and raised almost £6,000 for charity. These funds have now been distributed to Zoë’s Place Children’s Hospice, Help for Heroes and the local branch of the Sea Cadets. Once again, BIFA would like to thank the sponsors of the event: Genco Logistics, Hapag-Lloyd, Maersk, MCP PLC and Peel Ports Group. We also acknowledge the auction lots donated by Drac Logistics, Maersk, Atlantic Container Line, Cardinal Global Logistics, Genco Logistics and Haywards Transport, and the generous bids received on the night that contributed to the sum raised. BIFA Liverpool Region chair, Keith Baguley is pictured with Zoë’s Place corporate and major donor fundraiser Gina Earnshaw, during his visit to Zoë’s Place Children’s Hospice in Liverpool to present a cheque.
Save the date The BIFA Liverpool Region Annual Dinner will take place again at the
Liner Hotel which has been booked for Friday 6 October 2023. Tickets will go on sale in the summer.
BIFA annual membership renewal reminder
Following the successful introduction of electronic
actioned before renewal invoices are issued; • Membership renewal VAT invoices will be issued early January and payment is required within 30 days; • For Members who subscribe to direct debit membership renewals – payments are applied for mid-January and mid-July each year with VAT invoices being emailed upon receipt of payment.
Membership s.milton@bifa.org Do not forget: it is important that you always let us know of any changes to key contacts, email addresses and location addresses, etc, as soon as they happen in order to ensure that the database and contact details displayed on the BIFA website are kept up to date. Please email s.milton@bifa.org with any amendments as soon as they happen. Thank you for your subscription and we look forward to supporting you throughout 2023.
renewals in January 2021, BIFA would like to remind Members of the process. The new system was well received by Members and has been seen as an improved method for renewal of BIFA and FIATA membership. • BIFA Member company declarations will be emailed to members in mid-November and need to be returned to BIFA no later than 9 December 2022 to ensure that any changes to membership categories are
Should you have any questions, please contact Sarah Milton – BIFA
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t Shine a light on logistics during National Apprenticeship Week
National Apprenticeship Week will be celebrated from 6-12 February 2023. The annual week-long celebration of apprenticeships brings together the entire apprenticeship community to celebrate everything that is amazing about careers developed through this pathway. Carl Hobbis, BIFA executive director, said: “We encourage Members to shine a light on the logistics industry, highlighting the positive difference that apprenticeships can make to individuals, businesses and the wider economy. “The week will also be an opportunity for Members of all sizes to showcase their businesses within their local community and promote the logistics sector and the vital work we do. “All schools and colleges will have ‘ready-made’ careers events planned and all they need are local businesses to get involved. Employer engagement is the one thing schools and colleges need help with, no matter the size of your organisation.” For ideas and tips on engaging with local schools and colleges, download the BIFA guide Helping Recruit the Next Generation via the QR Code:
Carl Hobbis of BIFA and Brooke Jennings of Burhill Logistics at a
careers event in Felixstowe
Thomas Frost and Elliot Haldane of GEODIS attend a careers event at their old school
to.” Some other ideas for National Apprenticeship Week activity are: • Offer work experience to one or more individuals, • Offer workplace visits to groups, • Stage an event, • Make a video or write a blog, • Utilise your social media channels, • Job swap for the day with an existing apprentice.
love to hear about them; send any information and photos to Nezda
Leigh at n.leigh@bifa.org For more information on apprenticeships visit: https://apprentices.bifa.org/
Carl added: “All schools and colleges must list their careers lead on their website, so it is very easy to find the right person to reach out
Now is the time to start thinking about your local activity. We would
The Limits of Liability for Carriers
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By air – Warsaw Convention (17 SDR): £18.79 per kg
By sea – Hague Visby rules (2 SDR): £2.21 per kg £736.70 per package
BIFA STC: (2 SDR): £2.21 per kg
By road – CMR (8.33 SDR): £9.20 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 17 November 2022, according to the IMF website, was 1.10504)
By air – Montreal Convention (22 SDR): £24.31 per kg
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Measuring and calculating your greenhouse gas emissions
Over the last two years BIFAlink has included various articles on the environment and sustainability – and how Members may wish to consider addressing issues connected with these subjects. It is quite clear that sustainability is a large topic impacting both our commercial and private activities. Also, it is evident that many environmental activists appeal to the public emotions, whilst businesses require hard facts for them to enact the policies that will deliver long-term environmental improvements. Whilst nobody doubts the importance of the transport sector, it is the largest-emitting sector of greenhouse gas (GHG) emissions, producing 24% of the UK’s total emissions in 2020 (406 MtCO 2 e). It is estimated that HGVs probably account for approximately 18% of all GHG emissions. No-one at BIFA is an expert on environmental issues, but we are gaining a wider understanding of the subject. As part of the transport sector, clearly carbon and related GHG emissions are especially important to BIFA Members. Key to cutting emissions The other fact that has become clear is that measuring these emissions is crucial. Because if you do not measure, you cannot record and thus work out what to do or how to reduce GHG emissions. Our initial suggestion is to do something relatively simple. For instance, you know that using power creates emissions – why not measure your gas and energy consumption? Some utility companies send very detailed reports allowing you to understand and begin reducing your energy usage. At this stage do not worry about calculating the carbon emitted. Over time, maintain records of how you get on reducing your gas and electricity usage. Only then consider calculating the amount of carbon generated in order to generate the power consumed. Calculating emissions, coupled with technological developments, will provide the answers on how to cut greenhouse gases
These sorts of calculations, which will largely be based on the DEFRA carbon calculators, are relatively simple. Calculating GHG emissions becomes a lot more complex when actually moving cargo because of the different modes involved. Since August, the BIFA website has hosted a carbon calculator that is currently free to use. This will allow Members to provide accurate GHG calculations for moving cargo by any
mode, to and from various destinations. The calculator can be accessed at
www.bifa.org/information/carbon-calculator and we would encourage Members to use it. Whilst a standalone offering, Members can contact the provider with a view to integrating it into their own systems. Rather than gluing heads and hands to the road, calculating emissions coupled with technological developments will help provide the solution to current problems in this area.
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Wishing you all a very merry Christmas and a prosperous new year
From everyone at ASM
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An update on proposals relating to demurrage and detention charges
To facilitate its proposals, the FMC has invited further comment from the public as to whether it would be appropriate to include the consignee named on the bill of lading as a further party who can be invoiced for detention or demurrage charges, as an extension to the contractual provisions discussed above. We suspect that forwarders will be vociferous in their support for including such a provision. Interested parties will have 60 days to submit comments to the commission once the Notice of Proposed Rulemaking (NPRM) is published in the Federal Register. Submissions can be made using number FMC-2022-0066 at www.regulations.gov Pros and cons The proposals will no doubt be welcomed by those who are regularly caught by the wide definition of ‘merchant’ within bills of lading, but maybe less so by forwarders who will now be the key focus for parties pursuing demurrage and detention charges. They will then be forced to seek indemnities from their customers, who will no doubt dispute the charges and will expect forwarders to have done all they can to reduce the level of the charges presented. It will be interesting to note the content of the final rules, and whether similar proposals are implemented in other jurisdictions. BIFA would like to thank Richard Allingham of Hill Dickinson for permitting the reproduction of this article.
The US Federal Maritime Commission has proposed a new rule that VOCCs, NVOCCs and MTOs are only permitted to issue invoices for detention and demurrage to parties with whom they have a contractual relationship. The views of the public are now being sought
Many observers noted earlier this year that the US Federal Maritime Commission (FMC) was seeking comment from the public regarding demurrage and detention charges and whether or not the practice should apply to marine terminal operators (MTOs), non-vessel operating common carriers (NVOCCs) and vessel operating common carriers (VOCCs). Further to its initial consultation, the FMC is now determined to bring some transparency to current practices surrounding detention and demurrage billing. New rule The FMC has proposed a new rule that VOCCs, NVOCCs and MTOs are only permitted to issue invoices in respect of detention and demurrage to those parties with whom they have a contractual relationship. Privity of contract is once again paramount. The FMC has proposed 4 actions: I. Adopting the list of minimum information that common carriers must include in demurrage or detention invoices as mandated in the Ocean Shipping Reform Act 2022 (OSRA) and
codified at 46 USC 41104(d)(2); II. Adding to the list additional information that must be included in or with a demurrage or detention invoice; III.Further defining prohibited practices by clarifying which parties may be billed for demurrage or detention charges; IV.Establishing billing practices that billing parties must follow when invoicing for demurrage or detention charges. A properly issued invoice can only be rendered to the entity that has contracted with the billing party for carriage and/or storage, and it is that billed party who is responsible for payment of that invoice. In addition, the billing requirements are such that: i) The nature of the charges must be clear; ii) An invoice must be issued within 30 days after the charges cease accruing; iii)The billed party has 30 days in which to dispute the charges (the billed party having been provided with a clear methodology as to how to challenge those charges).
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Attracting new recruits
BIFA has gone into partnership with one of the world’s leading workforce solutions companies to launch the ‘Freight Development Pathway’
BIFA announced the launch of the ‘Freight Development Pathway’ last month in partnership with Manpower, part of ManpowerGroup, one of the world’s leading workforce solutions companies. The aim of the programme is to help identify, attract and train suitable candidates from outside the freight forwarding and logistics sector for career opportunities with Members of BIFA. Participants, identified from Manpower’s pool of
jobseekers, will undertake a three-week employability programme delivered by Manpower, plus an introductory freight and Customs training course, delivered by BIFA’s team of qualified trainers. The programme will be administered by Manpower and will include group sessions, weekly one-to-one meetings, as well as employability training to get each participant ready for interview and eventual employment. BIFA’s team of trainers will deliver the additional part of
the programme which focuses on some of the key aspects of a career in freight forwarding, such as the buyer/seller relationship; documentation; Incoterms 2020; modes of transport; moving goods around the EU; charges, costings and bookings;
consolidation principles; the UK Trade Tariff; classification of goods; procedure codes; duty and VAT calculations; paying HM Revenue & Customs; and Customs valuation. Jason Greaves, Director of Manpower, said: “We are excited to be partnering with BIFA to introduce the Freight Development Pathway, to encourage candidates to consider the freight sector and support them in achieving their career goals. Manpower has a track record of successfully supporting candidates into work through innovative workforce solutions like our MyPath
programme, which has trained and upskilled thousands of candidates since its launch in 2021. We look forward to applying this expertise to the Freight Development Pathway.” A wider initiative Carl Hobbis, executive director and training development manager at BIFA, said that the programme is part of a wider initiative to
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Carl Hobbis and Mat Beecham signing the Freight Development Pathway agreement
The Freight Development Pathway is to help promote careers within the freight and logistics sector to individuals who would not
help make the delegates work and industry-ready for BIFA Members.” BIFA has already launched a campaign to encourage its Members to work with schools to promote careers in logistics, forwarding and the supply chain, and to encourage students to consider them. The Freight Development Pathway is to help promote careers within the freight and logistics sector to individuals who would not consider this career option otherwise, whatever stage of their career they are at. It will highlight the available roles within the sector, as well as identify the core values and behaviours required when applying for jobs and provide advice that may encourage participants to broaden their horizons. Member sessions BIFA and Manpower will be hosting a series of 45-minute virtual sessions to introduce Members to the Freight Development Pathway and explain how their respective businesses can benefit from this partnership. These will take place on 1, 8 and 14 December. Visit the BIFA website at www.bifa.org/events or scan the QR code for further details.
consider this career option otherwise,
whatever stage of their career they are at
address the recruitment problems that the sector faces. “Partnering with Manpower, we intend that the Freight Development Pathway will create a pool of talent that initially had little knowledge or experience of the freight sector and
BIFA Events
December 2022
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Containers and trailers are subject to theft globally, as well as their cargoes. TT Club explains that being aware of the threat landscape is critical Supply chain security
A recent article by the TT Club reminded the writer of this article of an incident, that they had been involved in when working for a previous employer. A 40 ft container full of books destined for Soweto was hijacked en-route to the final delivery point. The books were found neatly stacked by the roadside – the container was never found. According to the police it was stolen to be converted into a new residential home. Supply chain security usually focuses on cargo but, as the above incident demonstrates, that is not the only target for thieves. While the circumstances are typically more complex, containers and trailers are also subject to theft globally. This type of theft reveals methods that are quite distinct from cargo theft incidents, so being aware of the threat landscape is critical. Freight crime is a concern often highlighted by TT Club, focusing much on the cargo side. However, there are other aspects that impact the industry. Container traffic in 2021 has been estimated to be around 240 million movements, of which about 142 million are laden. There have been widespread problems relating to availability through the pandemic and arising from congestion in various parts of the world, but indisputably demand for available containers continues to be high. It is increasingly widely accepted that all actors in the freight supply chain – including operators of containers – need to exercise diligence in relation to their counterparties, particularly when contracting with those who are new or there is an apparent change in expected behaviour. Misappropriation of containers has proved to be a particular problem when units are seized (often in respect of the contents), subject to commercial disputes or implicated where cargo has been abandoned. Many containers are leased, and shipping lines are usually vigilant in ensuring that their containers are returned – failure to do so often incurs heavy demurrage charges to compensate the line for losing the use of its equipment. BIFA is aware that Members, during the pandemic, extended their operations to include operating their own containers and in some
cases their own vessels. It is important that adequate measures are in place to ensure that containers are returned on completion of the job. Also, it is common practice for importers to arrange their own cartage of cleared containers from terminals, which can expose the Member to increased risk if the container is not returned as per the shipping lines instructions. In order to minimise the risk of problems, it is prudent to establish documented processes to monitor completion of carriage and return of equipment. Early identification of an issue assists as it provides the possibility to investigate and take timely action. Where appropriate, legal advice should be obtained to facilitate the recovery of containers. It can of course be challenging to predict which transactions present risk in this context. There are, however, a number of steps that operators may build into ‘know your counterpart/customer’ (KYC) processes to mitigate risk exposure. Isolated instances of containers not being returned may be more difficult to counter. However, many notable instances of container misappropriation involve multiple containers. Being mindful of these risks when securing contracts relating to batches of containers is essential, building in additional due diligence steps to protect your interests. While not exhaustive, additional steps could include: Enhanced due diligence Robust ‘know your customer processes’ are essential in mitigating this area of risk. Do you know the customer? Does the current request for equipment fall within expected parameters of former behaviour? Is the customer a reputable company? Are there any financial concerns, commercial or operational circumstances that raise suspicion? Insurance Can the customer demonstrate that it has adequate liability insurance in place to cover the value of the equipment while in its care, custody and control? Beware of fraudulent documentation, applying appropriate verification
checks (such as contacting the insurer) – allowing sufficient time to complete such checks.
Cargo What type of cargo is being booked for
shipment? This allows simple checks to ensure that the cargo is consistent with the customer’s activities, as well as acting as an indicator of additional risk. For example, waste, recycling or low value cargoes might be considered red flags when coupled with other factors described in this article. Route/destination Consider the cargo routing; ask yourself does it make sense and what is known about the consignee? And address concerns, if any are raised. For example, if the cargo being packed is waste, ensure that it is not being transported through or to a forbidden country. Equally, does this customer frequently ship containers to this destination? Deployment of technology One practical challenge in all instances where units go missing can be actually locating the containers and/or verifying the last known location. The advent of ‘smart’ containers with the ability to track location (amongst other things) might provide an opportunity to mitigate this particular risk. However, some form of active monitoring may be required to overcome the risk that jamming equipment may block GPS signals. Unusual activity This ‘catch all’ links to each of the former items. Consideration should be given to the number of
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shipped seem relevant to the amount of commodity?
Audit trail Maintain robust processes, monitoring stock and container movements, and undertaking regular control checks. This may assist in identifying suspicious activity at an early stage, even taking into account the complex variations in supplying units. Often these issues occur over long periods (several years); as a result, establishing indicators may assist in identifying problems at an early stage, potentially preventing large scale losses. Act quickly Implementing practical ‘know your customer’ checks will undoubtedly assist in mitigating the risks discussed. However, where it is identified that problems may be unfolding, then it is imperative to escalate the concern as early as possible, making it possible to intervene. BIFA would like to thank the TT Club for allowing the reproduction of the information included in this article.
containers requested. For instance, are the numbers being requested much higher than would normally be requested? Are there any
unusual demands relating to the period of usage? And, lastly does the number of containers
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Plastic Packaging Tax – what counts as transport packaging?
in order to prevent both physical handling damage and transport damage. Transport packaging includes the following when used to import goods into the UK: • Plastic crates, containers, pallets or other heavy duty plastic packaging that are reusable and designed to carry a range of products, • Single-use packaging components such as pallet wrap and retaining straps, • Reusable mail sacks, • Road, rail, ship or air containers.
The Plastic Packaging Tax will stimulate increased levels of recycling and collection of plastic waste. Its key features are explained here
The Plastic Packaging Tax (PPT) provides a clear economic incentive for businesses to use recycled plastic in the manufacture of plastic packaging, which will create greater demand for this material. In turn, this will stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration. Key features of the tax include: • PPT applies to plastic packaging that does not contain at least 30% recycled plastic. • Businesses that manufacture or import 10 tonnes or more of plastic packaging over a 12-month period are liable for PPT at a rate of £200 per tonne. • Businesses exceeding the 10-tonne threshold need to register for PPT. This includes businesses whose packaging contains 30% or more recycled plastic.
These are packaging components designed to be suitable for: • Use in the supply chain from the manufacturer of the goods to the user or consumer to contain, protect, handle, deliver or present the goods, although it does not matter if it is used in the supply chain or by the end user; • Single-use by the consumer to contain, protect, handle, deliver or present a commodity or waste. Exempt packaging There are certain types of packaging that are not in scope or are exempt from PPT, despite falling within these broad categories. PPT is not charged on transport packaging (also known as tertiary packaging) when it is used in the delivery of goods into the UK. You do not need to account for this on your tax return. Transport packaging is packaging conceived to facilitate the handling and transport of a number of sales units or grouped packaging
Are reusable plastic crates transport packaging?
The PPT primary legislation contained in the Finance Act 2021 exempts transport packaging where it is imported into the UK filled with goods. After reviewing information received from industry regarding reusable plastic crates, HM Revenue & Customs has determined that reusable plastic crates fall within this definition of transport packaging. This means they are exempt from PPT when imported into the UK filled with goods. This exemption will also apply to pallet wrap and straps when used to import goods. However, these items are not exempt from PPT when they are manufactured in the UK or imported unfilled.
There are broadly two types of plastic packaging subject to the tax.
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December 2022
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BIFAlink
YFN News
www.bifa.org
YFN enjoys a busy final quarter
Pandora is keen to engage with members of the industry whose suspicions may be raised by a specific or unusual request from a customer, a last-minute change to delivery instructions or discrepancies in paperwork that could lead to the seizure of concealed goods and apprehension of the perpetrators. Meeting in central Manchester, members of the YFN North-West region got together in early
October and November have been busy months for BIFA Young Forwarder Network events with two online events and four face-to-face events
November to hear from Lisa Cameron, operations director of GEODIS Freight Forwarding UK Ltd. In an event aimed at demystifying the
Gradually, the appetite to get out of the (home) office and meet people again has been building. Throughout the regions the Young Forwarder Network (YFN) committees have been busy setting-up and promoting face-to-face events in the final quarter of 2022. In October, chair of the London East YFN, Lexi Laybourn, hosted a sold-out tour of DP World London Gateway during which attendees were taken by coach around the logistics park, container stacks and onto the dockside. Lexi has an in-depth knowledge of the port’s operation and everyone present left with a
greater understanding of the flow of vehicles and freight. We also heard from Marc Tobin, operations planning manager, who dazzled the group with facts and figures relating to the number of containers moved through the port. Also in October, the Midlands YFN committee hosted an event that welcomed BIFA Members in general to hear from representatives from HM Revenue & Customs, Border Force and the National Crime Agency which, together, form Operation Pandora. Freight forwarders can be valuable “eyes and ears” in the constant battle against smuggling and illegal trade. Operation
responsibilities of leadership, Lisa shared some of the factors that come up as careers develop and individuals win promotion. No longer is it just a case of knowing your own job inside-out; now you may be responsible for the welfare and actions of colleagues and be expected to understand additional areas such as corporate social responsibility (CSR), environmental impacts, human resources and people management, budgets, forecasts, marketing and many others. A second event took place in the London East region with a ‘YFN Live’ panel taking questions
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December 2022
YFN News
BIFAlink
www.bifa.org
YFN Live panel, London East, November 2022
The sold-out DP World tour
The Midlands YFN
from YFN members and their employers. Hosted by Lexi Laybourn, the panel consisted of long- standing committee members: Thomas Low, OIA Global; Brooke Jennings, Burhill Logistics; Kyle Lawrence, OIA Global; and Paul Szyszkowski, Linc Freight Management. They spoke of the benefit they have realised through their membership of the network in both their professional and personal development. Skills learned include planning and hosting events, public speaking and time management, in addition to the connections made throughout this diverse and ever-changing industry. Virtual events In mid-October, Simon Adams from ASM UK gave virtual YFN members an overview of the lessons learned in the first few days following the deadline for all import Customs entries to be submitted via the new Customs Declaration Service (CDS). Simon gave an honest round-up of the transition to CDS, pointers to the published workarounds and guidance for BIFA Members still encountering issues. Those who were unable to attend the face-to- face presentation by the team from Operation
Pandora had another chance to hear what they had to say at a virtual event in early November. Once again, YFN members heard about tell- tale signs and methods of concealment and were urged to report any suspicions to Operation Pandora through the following channels: • Email mahcontainers@homeoffice.gov.uk • Telephone - during Office Hours 01394 303116
- 24 hours
07920 587808
• Quote PANDORA Planning for virtual and face-to-face events throughout 2023 is under way and events will be listed at www.bifa.org/events The BIFA Young Forwarder Network relies on the energy of the volunteer committee members to drive it forward and reach out to new members. Individuals new to the industry or studying the International Freight Forwarding Specialist Apprenticeship can join the YFN mailing list by emailing bifacomms@bifa.org and following BIFA Young Forwarder Network on Linked In. New speakers are always welcome – contact Sharon Hammond, Events and Communications Executive (s.hammond@bifa.org), if you can volunteer a couple of hours to the YFN.
The North-West YFN
December 2022
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BIFAlink
Legal
www.bifa.org
Know your BIFA Standard Trading Conditions – Clause 8 (A), Part 2
Liens are also covered in the BIFA Good Practice Guide, A Guide to Exercising a Lien Using the BIFA Standard Trading Conditions (BIFA STC) . This is one of many good practice guides that can be found on the BIFA website www.bifa.org > INFORMATION > GOOD PRACTICE TOOLBOX When applying a lien the following points must be considered: 1. A general lien can be applied only to the true owner of the goods. It is important to establish ownership of the goods – see Crawshay & Others v Homfrey & Others, All ER Reprints [1814-1823] 591, and Chelleram & Son (London) Ltd v Butlers Warehousing and Distribution Ltd [1978], 1 Lloyd’s Rep 412 . A BIFA Member cannot hold goods under a lien when it is a third party such as another freight forwarder that is in default and not the true owner of the goods. Care must be taken that there is not a retention of title clause in the contract between seller and buyer. If the true owner of the goods does not owe any sum to the BIFA Member, there is a risk that the BIFA Member will be sued for conversion or unlawful interference of the goods. 2. The goods or documents must come into the possession of the BIFA Member in the normal course of business when exercising a lien – they cannot be seized. 3. A lien can be exercised only with possession of the goods or of the documents. Such possession need not be physical possession but can be constructive possession or control, so long as the goods or documents are at the disposal of the BIFA Member exercising the lien (the ‘lienee’). This can arise when goods are in transit, when they are not suitable for warehousing, for example by way of size or This article should be read in conjunction with Clause 8(A) Part 1, which was published in the last edition of BIFAlink and covers the operation of a lien
weight, or when the lienee does not have his own warehousing premises. Definite instructions restricting the release of the goods must be given to whoever has custody of the goods (the ‘bailee’). However, a lien is not lost if the BIFA Member is fraudulently induced to part with the goods. 4. Where carriage charges are involved, a lien is normally exercisable only when the carriage has been performed. 5. At common law, the person exercising a lien has to bear the costs of retaining such goods such as rent or storage costs (Somes & Others v British Empire Shipping Co, All ER Reprints [1843-1860] 844) but Clause 8 (A) (i) seeks to make storage costs payable by the owner of the goods held under a lien. 6. There can be no lien without an immediate right to the debt (Raitt v Mitchell & Another, All ER Reprints [1814-1823] 129) . The need to exercise a general lien will probably not arise unless deferred payment terms (‘credit terms’) were granted. However, if the agreed payment terms have been exceeded the contract is breached and they no longer apply, so the charges become immediately due.
defaulter written notice that a lien is being exercised – a letter will suffice. The notice must state the amount owed.
8. In exercising a lien, the lienee must take reasonable care to protect the goods in his possession. A BIFA Member should expect his liability insurance cover to extend to legal liability for loss or damage when the BIFA Member exercises a legally enforceable lien. 9. Clause 8 (A) refers to documents as well as goods because documents of title can represent the goods. As they are needed in order to take possession of goods, exercising a lien on documents of title can be as effective as exercising a lien on goods. 10. Clause 8 (A) gives the Company the right to exercise a general lien without permission of the Court for goods owned by an insolvent Customer that has gone into administration, provided that the debt and the exercising of the lien arose before the administrators were appointed – Uniserve Ltd and Others v Joint Administrators of La Senza Ltd (in Administration) [2012] EWHC 190 Ch. This article will be continued next month and it is often prudent to engage the services of a solicitor when applying a lien.
7. A lien must be activated by giving the
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December 2022
Policy & Compliance
BIFAlink
www.bifa.org
Lithium-ion batteries – a threat to transport An in-depth understanding of the risks, packing requirements and transport limitations is required by all personnel dealing with lithium-ion batteries
A prominent issue is that smoke, being an initial visible sign of a developing fire, comprises potentially highly toxic vapours and fumes. Further, some of these are denser and some less dense than air, so the traditional rule of ‘go in low’ for firefighters does not apply. Awareness training Formal training for freight forwarders, transport and warehouse operators and all personnel within the supply chain is required by the International Maritime Dangerous Goods (IMDG) Code, the IATA Dangerous Goods by Air Regulations and the European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR). BIFA Members are urged to ensure that staff are aware of the commodities that may contain lithium-ion batteries and to check the relevant regulations before accepting a consignment for transportation.
As the demand for lithium-ion batteries continues to increase to meet green-power requirements, the risk of incidents during transportation also increases. The risk of battery failure and potential for catastrophic fires is well-documented, particularly in the aviation sector, but not fully recognised by all transport operators and agents, particularly in other modes. Lithium-ion batteries may be transported within products or on their own, fully charged or only partially charged, new, used or at the end of their useful life, leading to a range of considerations for the transport operator that can only be fully assessed when accurate and timely information is received from the consignor. An in-depth understanding of the risks,
packing requirements and transport limitations is required by all personnel dealing with requests for the movement of these goods, in addition to those actually handling the goods during transportation, whether by air, road or sea, and whilst stored in warehouses. Fire risk and emergency response Many industry bodies have highlighted the intensity at which lithium batteries burn once ignited; typically burning at over 400°C with a sustained flame; such fires are challenging to extinguish and re-ignition is a real risk. Beyond the challenges of extinguishing a fire, particularly on board a ship (whether container or ro-ro), there are other concerns.
Further reading: Scan the QR code or visit www.ttclub.com/news- and-resources/news/tt- talk/2022/tt-talk- spotlighting-lithium-ion- risks/
December 2022
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