BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
The magazine of the British International Freight Association BIFA link May 2025 The importance of correctly declaring container weights
INSIDE: • Insurers urged to simplify processes
• HMRC steps up enforcement • BIFA begins STC update • • BIFA Awards winner pro fi les
Follow us @BIFA
Issue: 417
Steve Parker’s Column
Lots to make sense of!
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 (A company limited by guarantee. Registered in England: 00391973. VAT Registration: 216476363) Director General Steve Parker s.parker@bifa.org Member Policy & Compliance Director Robert Windsor r.windsor@bifa.org Member Support Director Spencer Stevenson s.stevenson@bifa.org Member Services Director Carl Hobbis c.hobbis@bifa.org Member Engagement Director Denise Hill d.hill@bifa.org Policy & Compliance Frontier Policy Manager Pawel Jarza p.jarza@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Advisor – Sustainable Logistics Mike Jones m.jones@bifa.org Policy & Compliance Advisor – Sustainable Logistics Jamie McKean j.mckean@bifa.org Communications Manager Natalie Pitts n.pitts@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org Web site: www.bifa.org E-mail: bifa@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Igor Popovics, Denise Hill, Mike Jones, Pawel Jarza, Natalie Pitts Note to media: If you wish to use items in this magazine that are older than one month, please contact the editorial co- ordinator to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.
A s I wrote the Director General’s column for this month’s BIFAlink , I did wonder if this is amongst the most challenging times ever for our industry; whether we are impacted by global issues, such as the con fl ict in the Red Sea and Ukraine, or tariffs driven by the US president under his America First programme. We also have domestic topics that either are impacting us, or will soon. I am very aware we have infrastructure projects like the Lower Thames Crossing and the development at many of the country’s trade gateways, with the redevelopment of cargo handling facilities at Heathrow being the biggest.
Added to those topics are matters like the environment, cybersecurity and AI, and how they are having an impact on the work of BIFA Members. All the above shapes our industry today and in the future. All of them will require us to be ready for everything that is forthcoming. Supporting our Members The team here at BIFA has been doing all it can to support our Members through these changes. We have reinvigorated our programme of regional meetings, added a policy group and will soon introduce a new advisory body. We have made the ability to train staff as easy as possible, and through BIFAlink TV we have found a new and modern way to communicate. The next step in this process takes place on 14-15 May, our first national conference in nearly 20 years; we titled it – IGNITE TODAY – ACCELERATE TOMORROW, with the idea that we need to be as prepared as we can to move us forward. Great speakers As I write, we have great speakers lined up to cover all the topics outlined above and more. Our sponsors have been tremendous in their support, as have the businesses that have signed up to exhibit at the event. We already have a good number of Members attending – but we have space for more. So, I would urge you to take a look at the agenda, which can be seen on the BIFA website (https://conference.bifa.org/), and try to find a way to join us and be part of this new initiative. I am convinced that you will return to our business wiser and just that little bit more informed about the current state of play in freight forwarding and the key issues that are affecting the sector. I look forward to seeing as many of you as possible.
Director General
May 2025 | 3
www.bifa.org
Industry News
Ian Matheson , from Impress Communications, reviews some recent news that might impact on Members’ business. Don’t miss Ian’s weekly news round up on BIFAlink TV, which can be seen on our You Tube channel. Subscribe by scanning the QR code.
Silvertown Tunnel opens to cut London congestion
parcels from China, and other countries also looking to implement restrictions. IN BUSINESS DSV said in a press release on 15 April that it had fulfilled all closing conditions for its acquisition of Germany’s DB Schenker. Having received approval from the European Commission for the deal, the applicable waiting period in the USA has expired and the parties are now able to complete the transaction. The UK’s Competition and Markets Authority (CMA) has extended its deadline for a decision on GXO’s takeover of Wincanton by a further two months to 25 June 2025. However, it aims to complete the inquiry as soon as possible and in advance of this date. In a competitive market where the promise of profitable new business is alluring, TT Club has issued a warning to freight forwarders and logistics operators to beware of fraudulent customers offering lucrative loads, as it also highlighted the dangers of granting extended credit. As part of its growth strategy and to counter the current instability in trade, the UK government has announced additional support for businesses through a £20 billion increase in government-backed financing of UK Export Finance (UKEF). Small businesses will also be able to access loans of up to £2 million through the British Business Bank’s Growth Guarantee Scheme. ACROSS THE BORDERS Following a recent surge in requests to provide evidence relating to UK preferential origin statements made on the commercial documentation, it has become apparent that EU Customs authorities are now starting to enforce Article 61(1) of UK-EU Trade agreement.
OVERLAND The Silvertown Tunnel opened on 7 April 2025, linking Silvertown in east London to the Greenwich Peninsula. It will reduce congestion at, and provide an alternative crossing to, the Blackwall Tunnel. The cost for a crossing in an HGV is £10 at peak times and £5 at off-peak times. ON THE OCEAN BIMCO, the world’s largest shipping association and one of the primary providers of standardised contracts and charter party agreements used in the maritime industry, has announced significant
updates to its War Risk Clauses for 2025 in response to escalating geopolitical challenges and ongoing maritime security concerns. The approved changes include two major updates: the VOYWAR 2025 for voyage charter parties and CONWARTIME 2025 for time charter parties. The USA’s Federal Maritime Commission (FMC) has launched a “non-adjudicatory investigation into transit constraints at key maritime chokepoints, focusing on the impact of foreign laws, regulations and shipping
practices”. It has identified seven of these choke points – “the English Channel, the Malacca Strait, the Northern Sea Passage, the Singapore Strait, the Panama Canal, the Strait of Gibraltar and the Suez Canal” – and is looking to answer a number of questions. Of the 50 largest container shipping lines in the world in the year 2000, only 24 are still in existence, according to Sea-Intelligence. Their collective capacity has grown from 2.5 million TEU in 2000 to 26.7 million TEU in 2025 in a market that has undergone extreme consolidation. ON THE QUAYSIDE CLdN is investing in its terminal at Killingholme on the river Humber to enhance cargo handling capabilities and cater for projected volume growth on its North Sea connections with Rotterdam and Zeebrugge. The work includes a reconfiguration of the cargo handling operations to optimise the flow of freight through the terminal and ensure an increase in handling and storage capacity for all cargo types. Work is scheduled for completion in the second half of 2026. IN THE AIR Despite increasing regulatory hurdles, e-commerce will continue to be a growth market for air cargo thanks to emerging markets and ongoing consumer demand, it was concluded at the end of a panel discussion at April’s IATA World Cargo Symposium. All panel members said they expected the market share to increase despite recent moves in the USA to end the de minimis exemption for
4 | May 2025
www.bifa.org
www.asm.org.uk admin@asm.org.uk
agency sector management
service desk asm (uk) ltd @asmukltd
Here today. Here tomorrow.
We have been designing and developing the best customs and freight management software for the last 30 years, giving you unrivalled business and technical support round the clock and promoting your views and protecting your interests with government and industry. Let ASM help you to meet the demands of today and the challenges of tomorrow with Sequoia, our market leading customs and freight management software.
.
Software you can rely on, from an organisation you can trust, owned by you.
Air ▪ Ocean ▪ Road ▪ Imports ▪ Exports ▪ C ustoms declarations ▪ Worksheet automation Customs eTariff ▪ SCDP management ▪ Customs Warehousing ▪ Duty management Transit (NCTS5) management ▪ Transit (CT) Guarantee management ▪ Import ETSF management ▪ Safety & Security (GB) ▪ Export DEP management ▪ Job costing and invoicing ▪ Air waybills and eAWB ▪ Bills of lading ▪ Barcoded cargo labels Consignment security declarations ▪ Collection and Delivery notes ▪ Consolidation management and Manifests ▪ eDocument management ▪ Archiving ▪ Limitless integration ▪ Limitless automation
innovate / integrate / automate / sequoia
Industry News
IFCC holds discussions in Geneva
With delegates gathered in Geneva for the FIATA HQ spring meeting in March, the IATA FIATA Consultative Committee (IFCC) took the opportunity to meet at the IATA of fi ce within Geneva Airport. BIFA’s David Stroud attended as a FIATA delegate and contributed to the following discussions: • ONE Record adoption commitment and impact – ONE Record is IATA’s system for data sharing across the complete supply chain; • Understanding the work and rulings of the Cargo Agency Commissioners – The Cargo Agency Commissioners is a neutral body used to settle disputes between carriers and freight forwarders; • The IFCC Working Group to modernise the agency programmes into a
Global Air Cargo Programme – a much welcome proposed programme to allow forwarders valid input to the processes underpinning the movement and handling of air cargo;
• An in-depth review of both the Cargo Agency Conference and Cargo Services Conference agendas – these conferences currently determine how cargo is handled and processed.
David has now stepped down from his role as FIATA delegate following his retirement from BIFA at the end of March, but BIFA will continue to monitor output from the IFCC and report to Members as appropriate.
Challenge yourself – support Transaid
BIFA’s charity partner Transaid has launched its next EU cycle challenge. Join Transaid on an adventure through the scenic southern roads of the Republic of Ireland in the organisation’s first challenge in the country. Beginning in the historic city of Cork, the route heads east, weaving through lush farmland and stunning coastal roads in view of the formidable Wicklow Mountains, before finishing in Dublin’s bustling city centre. This exciting three-day, 331- kilometre journey will take place from 24-28 September 2025, bringing together teams from across the transport and logistics industry to raise crucial funds for Transaid’s road safety and access to healthcare projects across sub-Saharan Africa. Transaid’s cycle challenges
are well known across the transport and logistics industry, and with individuals
and teams at all levels welcome on the ride, why not take on the challenge?
Find out more: www.transaid.org/events- challenges/cork-to-dublin/
6 | May 2025
www.bifa.org
Industry News
Insurers urged to simplify processes for clients
Windsor Framework implementation update HMRC has issued guidance to businesses based in Great Britain regarding new arrangements for the movement of goods to Northern Ireland, as set out in the Windsor Framework taking effect from 1 May 2025. BIFA Members are reminded that BIFA has shared a large amount of information on this subject over recent months which can be found at: https://bifa.org/2025/03/19/ windsor-framework- implementation-update/ Don’t keep it to yourself Not your copy of BIFAlink ? Register for your own copy by contacting Sarah Milton in membership s.milton@bifa.org or visit www.bifa.org/bifalink for a digital version. BIFAlink is the magazine of the British International Freight Association and is distributed free to Members.
Steve Parker, BIFA director general, joined Marcus Baker, global head of marine, cargo and logistics at Marsh, to deliver the opening address at the Cargo Insurance London conference. Addressing the reasons behind, and problems caused by, under- or uninsured cargoes, Parker and Baker focused on the amount of cargo premium available globally and explored whether there is an opportunity that the insurance market is currently missing.
Both agreed that the insurance sector needs to simplify the process for clients in regard to both placement and claims for cargo insurance,
so that everyone can win. If you would like to discuss this topic further, please contact Steve by email at s.parker@bifa.org
BIFA Annual Report available online
Following the positive feedback received after last year’s digital launch, BIFA’s Annual Report will remain paperless, with the 2024 edition now available to download at https://bifa.org/overview-of- bifa Our colourful infographics remain, showcasing the association’s top achievements across Membership; Policy & Compliance; Member Engagement; Communications; Young Forwarder Network; Training; and Apprentices. Key highlights of 2024 were: • Launch of BIFAlink TV on
• Increased attendance at Regional Member Meetings and moving to larger venues; • 69% of delegates studying BIFA’s BTEC qualifications achieved a distinction; • Collaborations with TRS and South Hampshire College group to drive logistics education and recruitment. The document includes the Income & Expenditure Account and those Members wishing to view the full financial statement for the year ending 31 December 2024 should visit https://bifa.org/documents/a nnual-report-2024-financial- statements/
YouTube, BIFA’s primary communications channel; • Eight webinars hosted on key policy and compliance topics, attracting over 2,700 Member attendees;
The Limits of Liability for Carriers
In association with
By sea – Hague Visby rules (2 SDR): £2.05 per kg £682.85 per package
By air – Warsaw Convention (17 SDR): £17.41 per kg
BIFA STC: (2 SDR): £2.05 per kg
By road – CMR (8.33 SDR): £8.53 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 17 April 2025,
By air – Montreal Convention (26 SDR): £26.63 per kg
according to the IMF website, was 1.02427)
+44 (0) 1628 532613
macbeths.co.uk
May 2025 | 7
www.bifa.org
Policy & Compliance
HMRC steps up customs enforcement HMRC has been expanding its compliance workforce, indicating that it intends to proactively enforce fi scal and potentially customs regulations rather than merely offering guidance
ports without the need to submit a full customs declaration for the affected shipment. This rejection policy marks a clear move toward a stricter customs procedure standard across all freight movements. New detection approach Additionally, it came to BIFA’s attention that Home Office Intelligence investigators have developed a new detection approach that combines information from the HMRC Compliance and Risk Engineering Solutions Team (CREST) with Companies House data, enhancing its ability to flag suspicious activity or inconsistent trading behaviour. This signals a more joined-up approach between government agencies aimed at identifying non- compliant traders. The above indicators demonstrate HMRC’s commitment to enforce compliance in a more data-driven and proactive manner. It is also sending a clear message to traders operating in the customs and logistics sectors: adapt quickly to this stricter regulatory environment or face operational challenges leading to potential penalties as a consequence.
F ollowing the last major update under the Border Target Operating Model (BTOM) – the introduction of the Safety & Security (S&S) declaration requirement – recent developments suggest a shift towards a fi rmer approach from government of fi cials, with growing attention on compliance enforcement. HMRC’s strategic shift from guidance to action places emphasis on ensuring that traders meet their customs obligations and follow the correct customs procedures. One of the recently announced changes is HMRC’s commitment to expand its compliance workforce by an additional 500 officers per year over the next five years. As a result, by 2029/30 HMRC will have increased the number of compliance officers by 5,500 since July 2024. This scaling up of human resources clearly reflects HMRC’s intention to proactively enforce fiscal and potentially customs regulations rather than merely to offer guidance.
Penalties From 7 April 2025, HMRC began issuing civil penalties of up to £2,500 to hauliers failing to present Transit Movement Reference Numbers (MRN) in the Goods Movement Reference (GMR) when using Goods Vehicle Movement Service (GVMS) ports. According to the Customs Transit Procedures (EU Exit) Regulations 2018, the inclusion of all MRN is a legal requirement to enable proper Office of Transit checks. Since January 2025, HMRC and Border Force have been distributing educational flyers to raise awareness. However, this grace period has come to an end and non-compliance will have direct financial consequences. In another significant development, HMRC has started rejecting C21 Customs Clearance Requests with 9-series Additional Procedure Codes (91U & 96M) for short shipments, closing a loophole previously used to release short- shipped goods from inventory linked
“ In another signi fi cant develop - ment, HMRC has started rejecting C21 Customs Clearance Requests with 9-series Additional Procedure Codes (91U & 96M) for short shipments
8 | May 2025
www.bifa.org
Visit CNS at Multimodal 2025 on Stand 7080
CNS has launched a new digital platform; CNS Enterprise, which allows customers to streamline their end-to-end shipping and cargo processes using a single, online solution.
CNS Enterprise Maximise efficiency and minimise costs with CNS Enterprise, the ultimate platform for customs, freight, and logistics management. Our integrated solution will enhance your operations from end to end, ensuring efficiency, compliance, and growth. CNS Enterprise empowers users to manage both customs and logistics tasks seamlessly, with the benefit of an integrated FMS powered by SeaRates ERP. CNS Enterprise: Your competitive advantage • A comprehensive suite of tools, which unifies everything from customs declarations and cross-border movements, to customer account management with its built-in CRM. • Financial tasks are simplified with integrated accounting, billing, invoicing, and quotation generation. • Shipping is made efficient with document creation, tracking, and direct booking capabilities for major air, land, and sea carriers. • Real-time updates on sailing schedules and all freight movement milestones provide complete shipment visibility. • One trusted platform for all your operational tasks increases efficiency, reduces errors and gives you a 360 degree view of your business.
CNS Enterprise: Unify Your Logistics, Unleash Efficiency
• End-to-End Integration • Strategic Cost Efficiency • Operational Enhancement • Unified Business Operations • Meeting business demands.
CRM & Sales
Quotations & Contracts
Shipments & Tracking
Billing & Invoicing
Customs Management
Analytics & Dashboards
Get in touch with a member of our team to organise a demonstration. getonboard@cnsonline.net
BOOK YOUR DEMO TODAY and get ahead of your competition
+44 (0) 23 8079 9601 www.cnsonline.co.uk
BIFA Events
Top row, left to right: Matthew Bradley (CNS); Alan Lewis (Smart Freight Centre); Allie Renison (SEC Newgate); Jens
Roemer, (FIATA)
Bottom row, left to right: Sophie Said (Menzies); Scott Bright (Menzies); Michael Yarwood (TT Club)
You can view the speaker profiles on BIFAlink TV by scanning the QR code
This month sees the BIFA National Conference take place at The Slate, Warwick Conferences. For last minute bookings, go to: https://conference.bifa.org/request-tickets/ Are you joining us?
Steve Gordon, Clarksons Research; Robert Windsor, BIFA. • Customs: Artur Sarkisian, RM Boulanger; Simon Adams, ASM (UK) Ltd; Igor Popovics, BIFA. • Legal: Robert Windsor, BIFA. • Hostile Profiling – Risks from Online Data & Mobile Devices: David Benford, Blackstage Forensics. • The Future of Systems: speakers to be announced. • North Atlantic Relations and Trade: Allie Renison, SEC Newgate. • Insurance: Michael Yarwood, TT Club; Steve Parker, BIFA. • Value of Work-based Learning: Carl Hobbis, BIFA. • Transport & Logistics – Opportunities & Challenges: Sophie Said & Scott Bright, Menzies LLP; Steve Parker, BIFA.
I n the April issue of BIFAlink we outlined the BIFA National Conference agenda and introduced some of the speakers that you can expect to hear from. BIFAlink TV has also been pro fi ling the speakers and giving an insight to their sessions. What’s on the agenda? The two-day agenda is now bursting at the seams and will include:
• A high-profile keynote speaker.
• The Role of CSPs at the UK Border : Matthew Bradley, CNS. • The Future of Air Freight: James Golding, Heathrow Airport Ltd; Pawel Jarza & Andy Cooke, BIFA. • Sustainability: James Shorey, Planetmark; Alan Lewis, Smart Freight Centre; Jamie McKean, BIFA. • The Open Seas of Ocean Freight: Jens Roemer, FIATA;
Sponsors:
Ticket options: The following ticket options are available
Ticket type:
Includes:
Price (BIFA Member)
Fully inclusive
£595 + vat per person
All conference sessions, access to exhibitors, networking lunch on both days, drinks reception & gala dinner (Wednesday evening), overnight accommodation, breakfast (Thursday morning), on-site car parking
Exhibitors:
Local delegate
£495 + vat per person
All conference sessions, access to exhibitors, networking lunch on both days, drinks reception & gala dinner (Wednesday evening), on-site car parking (accommodation NOT included)
Day delegate All conference sessions, access to exhibitors, networking lunch on both days, on-site car parking (drinks reception, gala dinner and accommodation NOT included)
£445 + vat per person
10 | May 2025
www.bifa.org
14 - 15 May 2025 The Slate, Warwick Conferences, Coventry BIFA National Conference
conference.bifa.org
Headline sponsor:
Policy & Compliance
VGM-related issues are relatively infrequent but their impact can be substantial, as is highlighted below. As a freight forwarder can be held responsible, Members should review existing procedures and ensure they have adequate cover for any potential liabilities The importance of correctly declaring container weights
T he system of verifying the weight of shipping containers came into force in July 2016 by requiring the shipper or the freight forwarder to provide a Veri fi ed Gross Mass (VGM) to the carrier. These weights are used in ship loading plans. To date, in the UK there have been relatively few reported breaches of the regulations. However, those that have occurred in the rest of the world, due to the weight discrepancies involved, have been signi fi cant. Responsibility Under the International Convention for the Safety of Life at Sea (SOLAS) requirements, the shipper named on the bill of lading is the party responsible for providing the maritime (ocean) carrier (master) and the terminal operator (terminal representative) with the verified gross mass (VGM) of a packed container. In the UK there are two methods to calculate the VGM. Under Method 1, the fully loaded container is weighed on a weighbridge. In the UK this is often performed by the port, on a chargeable basis, as the vehicle carrying the container enters the terminal. Under Method 2, often referred to as the ‘Aggregation Method’, the weights of all individual shipments, plus dunnage and the TARE weight of the container, are added together to produce the VGM. In the UK, before a shipper or forwarder can use Method 2, it has to be approved to do so by the Maritime and Coastguard Agency (MCA). Incidents BIFA has identified two incidents, neither of which originated in the UK, where weight-related issues highlighted the problems that can occur if procedures are not adhered to. In the case of Stournaras Stylianos Monoprosopi Epe v Maersk there was a substantial difference between the VGM (provided by the terminal operator) and the
shipper declared weights (as per the shipping documents) for a shipment presented to the carrier in 2019 for freight loaded at Jebel Ali. Many of the shipper declared weights were only 30% or 40% of the VGM. Unbeknown to either party there was alleged fraudulent activity by the shipper. Stournaras took the case to an English Commercial Court alleging that there was a duty of care obliging the carrier to cross- check the VGM and shipper’s declared weights and not issue an unclaused bill of lading where the discrepancy was significant. The Commercial Court concluded that Maersk was not liable to Stournaras because, based on the facts, Maersk had no reason to suspect that the shipper- declared weights might be fraudulent. As a result, it did not know, nor ought to have known or been put on notice, that there was a reason not to issue clean bills of lading. The duty under Art III rule 3(c) of the Hague Rules was for Maersk to assess the “apparent order and condition of the goods”. The apparent order and condition of cargo refers to its external condition as would be apparent from a reasonable examination. The weight of a container would not be apparent from an inspection of the external condition of the container. The court acknowledged that if there was a significant discrepancy between declared and actual weights, the carrier should flag that and an unclaused bill of lading implied that there was nothing wildly at odds with the bill of lading quantity. However, given the court’s factual conclusions,
“ Breaches of the VGM regulations that have occurred in the rest of the world, due to the weight discrep - ancies involved, have been signi fi cant
12 | May 2025
www.bifa.org
Policy & Compliance
Maersk was not in breach of this duty. It was stated that the position would have likely been different if the two weights had been in front of the person who was issuing the bills of lading. The court found that in 2019, Maersk was not expected to compare VGM with bill of lading weights. From further reading, it would appear that additional case law may develop and change this concept of the duty of care. Container stack collapse The second incident occurred on 6 February 2024, onboard the US-flagged containership President Eisenhower, which resulted in the loss of 23 shipping containers overboard and damage to another ten. The damage to the vessel and the value of the lost cargo was estimated at over $735,000. When considering this incident, it should be noted that the ‘booking agent’ as referred to in the official report is the party receiving the booking on behalf of the line. As we will see, the cargo loading plan had been drawn up by the ship’s planners using the verified gross mass provided to them by the booking agent. The official investigation noted that during the booking process, a shipping reservation for 40 containers was automatically flagged in the booking system due to a single overweight container. To resolve the issue, the booking agent split the reservation into two bookings: one with the single overweight container and one with the other 39 containers. An error in the booking system prevented
the shipper’s information, particularly the cargo weights, from automatically populating in the new booking, so the cargo weights for each of the 39 containers had to be re-entered manually. During the manual entry, the 39 container cargo weights were each incorrectly entered by the booking agent as 2,500 kilograms (5,511 pounds). The system automatically added the incorrect cargo weight with the tare weight of each container, which produced a VGM of between 6.2 and 6.4 tonnes for each of the 39 containers. These incorrect VGM values were then given to the ship load planning team and used to create the cargo loading plan. The actual VGM for the 39 containers was found to be 18.3 to 22.2 tonnes greater than the VGM used to develop the cargo loading plan. The situation was compounded because the port had no suitable equipment to weigh the laden containers. Since the container VGM were incorrect on the cargo loading plan, the container stacks on the port side of the vessel were inadvertently arranged with heavier containers in the upper tiers and progressively lighter containers toward the bottom tiers – an arrangement called reverse stratification. This placed significant strain on the lashing systems and the structure of the container stack which eventually collapsed, resulting in the loss and damage as described. Both incidents highlight the importance of supplying the correct VGM to the ship’s master or representative. The second incident is interesting because it was the
“ Both incidents highlight the importance of supplying the correct VGM to the ship’s master or represent- ative
Continued on page 14
May 2025 | 13
www.bifa.org
Policy & Compliance
Continued from page 13
weight (VGM) is not automatically ‘pushed’ to the party who requires it, to provide this information to the carrier. The shipper or forwarder has to actively monitor systems until the VGM becomes available and then provide it to the carrier. The noteworthy point is that the port acts on behalf of the party that is required to submit the VGM, but if it is incorrect it is the freight forwarder or shipper that will be liable for any penalties. Providing an accurate VGM, which is used in ship stowage plans, is essential to comply with SOLAS. Whilst UK operations seem to generally ensure a greater compliance than elsewhere in the world, errors can potentially occur. We can only encourage Members to review their activities against their statutory obligations as detailed in The Merchant Shipping (Carriage of Cargoes) Regulations 1999 . The first essential point to review is how the VGM is established. Where weighing equipment is used, procedures covering its use, calibration and record keeping are essential. If weighing is outsourced, an agreement should be in place covering these functions plus, where applicable, warranties and indemnities. If a VGM is provided using Method 2, Members must check that the party providing it is authorised to do so. Lastly, Members should discuss with their insurers to ensure cover is in place for any liabilities that result from a VGM-related incident. VGM-related issues are relatively infrequent, but their impact is substantial as we have seen. One case resulted in lengthy and expensive litigation, and the other in a substantial loss of cargo and damage to a containership. In neither case was a freight forwarder at fault, but it should be remembered that a Member may find itself in a situation where it is held liable. Prevention, being better than cure, dictates that reviewing existing procedures and ensuring adequate cover for any potential liabilities is the best approach.
line’s own internal errors that created the issues leading to a stack collapse. Potential liability But what are the liabilities of BIFA Members should they be involved in a situation when an error has been made and which leads to substantial damage and cost? From the writer’s perspective, there are two main scenarios to consider: • Where the freight forwarder acts on behalf of its customer, who has provided the VGM, Or • When the freight forwarder has loaded a groupage container and establishes the VGM itself. The regulations place responsibilities on both shippers and forwarders and failing to supply or provide a correct VGM (knowingly or recklessly) is an offence. It will be for the courts to decide on the correct level of the penalty. Currently the onus is on the party submitting the VGM, not the recipient. This has created a rather one-sided situation, and it will be interesting to see how the law develops on this subject. From a contractual viewpoint, under Clause 17 of the BIFA STC, the Member’s customer is required to provide an accurate weight (VGM) to the BIFA Member. Shipping lines will have similar contractual warranties regarding VGM and the losses that may be claimed if these are breached. As few Members have weighbridges large enough, many make use of the port weighing facilities to establish the correct VGM. We have been advised that some ports weigh all arriving containers to cross- check the booked weight against the VGM. Member feedback is that the port established
“ Prevention, being better than cure, dictates that reviewing existing procedures and ensuring adequate cover for any potential liabilities is the best approach
14 | May 2025
www.bifa.org
Free to attend
Years
Sustainable transport, logistics & supply chain management event for cargo owners
Celebrating 18 years of providing shippers and cargo owners with solutions to optimise their supply chains by improving efficiencies and sustainability goals
Register Free
300 Exhibitors 60+ Conferences Digital sessions from Google Interactive AI Clinic Networking Drinks Party
Supported by
Policy & Compliance
The new BIFA Standard Trading Conditions will be available for Members as soon as possible, once they have fi rst been carefully assessed from a compliance perspective BIFA begins Standard Trading Conditions update
T he BIFA Standard Trading Conditions (STC) are one of the foundation stones of the relationship between BIFA and its Members. Since 1989, the STC have provided Members with a contract to conduct their forwarding relations with their customers – a forwarding contract in effect. These STC are reviewed on a periodic basis in the light of industry and legislative changes. The current edition became effective in 2021. The Association endeavours not to re-issue too frequently to minimise a Member’s administrative burden. However, since the UK left the EU, and with increasing global tensions that have increased trade difficulties and therefore risks to Members, the Association recognised that a thorough review was necessary in order to protect Members’ interests. For example, in the earliest versions there are few references to Customs activities. The first significant reference was to direct Customs representation as defined in the EU Customs code; the 2021 edition of the STC expanded this subject further. The review process has been undertaken by BIFA’s Legal and Insurance Policy Group in conjunction with our solicitors, Salvus Law. This policy group includes forwarding Members, in addition to legal and insurance experts. The aim is to ensure a legally compliant set of STC balancing the interests of Members and their customers to ensure compliance with The Unfair Contract Terms Act 1977. The original drafters of the 1989 STC achieved this goal, and it has been one of the guiding principles of every update of the STC. Whilst the redrafting process is ongoing, it would not be appropriate to comment on the changes to individual clauses. However, one of
the main ambitions is to re-write them using modernised language and, where possible, simplify them to make them more readily understood. For instance, the present clause 26 of the 2021 edition causes considerable confusion and work is ongoing to re-draft it to achieve the previously mentioned end result. We believe that this will make them more readily understandable for Members and thus easier to use. When BIFA issues the new STC, Members will have to incorporate them into their contracts with customers and bring them to their insurers’ attention. In such a situation there is always a transition period. BIFA believes that the most appropriate point at which to move from the 2021 STC to the new set is at the Member’s renewal date for insurance policies, such as their freight forwarder’s liability policy. At this point the Member will have to advise its insurers that it intends to start trading under the new edition of the STC. Incorporation At this stage Members must remember that to rely on the STC Members that for a written term to be considered incorporated by the courts, it must fulfil three requirements: • Firstly, notice of the terms should be given before or during the agreement of the contract. • Secondly, the terms must be found in a document intended to be contractual. • Thirdly, ‘reasonable steps’ must be taken by the party that forms they have to incorporate the relevant set of STC into their contracts with clients. It is relevant to remind all
One key point for each Member to consider is, at what specific date will it transition to using the new STC? Then, Members will have to decide how they inform existing customers of the fact. As all Members incorporate the STC in different ways, individual Member companies will have to decide what is appropriate for their business. The methodology is likely to be varied, including announcements on websites, emails and via all other communications with customers to raise awareness of this important change. However, there should be a more formal communication on the subject. This could be in the form of an email addressed to the managing director or proprietor of the client. Alternatively, where paper systems are adopted, a letter similarly addressed could be sent with monthly statements (including zero balance ones) to all customers. When considering the above process, Members should consider a few points: • Record keeping so that BIFA Members can demonstrate having taken reasonable steps to bring the change to the attention of the other party. • Timeframes for bringing the subject to the attention of a customer.
“ When BIFA issues the new STC, Members will have to incorporate them into their contracts with customers and bring them to their insurers’ attention
the term to bring it to the attention of the other party.
16 | May 2025
www.bifa.org
Policy & Compliance
Challenges, common errors and how to get it right Safety & Security declarations
T he introduction of the Safety & Security (S&S GB) declaration earlier this year completed the implementation of the Border Target Operating Model (BTOM), marking a signi fi cant milestone in the UK’s post-Brexit border strategy. As of May 2025, all goods entering Great Britain must comply with stringent S&S regulations, reinforcing the country’s border security while ensuring a smooth flow of goods. As businesses adjust to the new requirements, several common errors have been identified, prompting Border Force to continue its educational approach to boost compliance and support hauliers and carriers. Some of the most common errors include: Incorrect data entries: Many declarations contain mistakes in key fields such as commodity codes, consignment details, or transport information, leading to delays in processing. Omissions in Safety & Security data: Missing mandatory data elements, particularly trailer identification, container numbers and location details which affect shipment tracking. Timing Issues: Some declarations are submitted with generic time template – eg 00:01 – rather than actual estimated arrival schedules and consequently fail to meet the required timeframes based on the mode of transport. Responsible party declaration: There have been instances
where declarants failed to provide responsible party
contact information for unaccompanied goods. Incorrect risk assessment data: Errors in providing accurate descriptions of goods or their intended use leading to misclassification and potential compliance risks. To support businesses, Freight Engagement and Data (FEDAT) officers have committed to an ongoing educational approach, helping traders understand the requirements and rectify errors. Rather than taking immediate enforcement action, in the next few months, the authorities are prioritising guidance and feedback to ensure smooth adaptation to the new system. As officers identify further common errors, the insights will be shared to help traders improve their compliance. Traders are encouraged to review their processes and ensure that data accuracy is a priority in all declarations. BIFA has also advised Members to stay updated on guidance and seek clarification when necessary. Please scan the QR code to access the slides from the joint webinar where Border Force representatives explained in detail the common errors found in declarations and shared clarification on correct
• Review of bespoke client agreements, including
agreements covering specific business activities. All of these agreements, where they exist, should be “subject to BIFA STC”, but the question is, which set? All will need to be checked. Where agreements state “current BIFA STC”, no change is required as they automatically update, but if they refer to the 2021 edition, amendment is required. • Advising partners – Members will need to make overseas offices and agents/correspondents aware of the change and include the new STC in agency agreements. BIFA is working on having the new STC available for Members as soon as possible, but they will need to be carefully assessed from a compliance perspective prior to their issuance. BIFA intends to hold a series of online webinars and other events to advise Members on the most significant changes between the 2021 edition and its successor. The BIFA Secretariat will be happy to answer any questions on this subject – please contact Robert
“ BIFA intends to hold a series of online webinars and other events to advise Members on the most signi fi cant changes between the 2021 edition and its successor
declaration completion instructions.
Windsor via email to: r.windsor@bifa.org.
May 2025 | 17
www.bifa.org
BIFA Awards
Leading the race to fi nd greener logistics solutions
sustainable marine or aviation fuel, there’s no way to know the extent to which a given flight or vessel will use it; you can’t guarantee that. But with our book-and-claim approach, credits are auditable; it does not matter on which flight or vessel the renewable fuels are used, as emissions will be reduced somewhere in the earth’s atmosphere, and the reduction is clearly allocated to the specific customer.” Still, the lack of feedstock and infrastructure means targets for SAF implementation remain somewhat limited. For instance, the UK’s SAF mandate came into effect on 1 January 2025, with the aim of achieving a 10% ratio of SAF in the aviation fuel mix by 2030. That rises to 22% by 2040, a level determined by current availability and infrastructure. DHL complies with the various, continuously evolving standards around greenhouse gas emissions, for instance with its book-and- claim system. But Fowler noted that the variety of national or regional requirements is “confusing”, and said: “Having one standard globally would make sense; you’re either doing it right, or you’re not.” Bottom line As DHL seeks to improve its environmental performance still further, final-mile electrification is high on the agenda, and any new buildings are only approved if the plans are carbon neutral or carbon negative. As a group, DHL is investing extensively to lower its Scope 1, 2 and 3 greenhouse gas emissions to less than 29 million tonnes by 2030, as it heads toward net zero by 2050. “Traditionally, DHL’s bottom lines were to be the provider, investor and employer of choice. Now, our fourth bottom line is to be the green logistics of choice. Carbon- efficient operations, and a suite of green solutions for customers, will be the only way to have a viable business in the future,” Wright said, pointing to DHL’s ‘burn less’ and ‘burn clean’ offerings. Indeed, added Fowler: “Even the bonuses of our corporate board are partially linked to sustainability.”
As the fi rst global logistics company to commit to a net zero
Paul Fowler
carbon goal (2050), DHL Global Forwarding was a deserving winner of the BIFA Sustainable Logistics and the Environment Award
“ Now, our fourth bottom line is to be the green logistics of choice – Lawrence Wright, DHL Global Forwarding (UK)
O ne example of how DHL Global Forwarding (UK) is putting its products and commitments to work is its partnership with Formula 1. DHL’s fleet of biofuel-powered trucks that serve the European leg of the F1 season now numbers 51, each truck contributing to an average greenhouse gas emissions reduction of 83% compared with diesel-driven counterparts. DHL also uses Boeing 777 aircraft, which are around 17% more fuel efficient than legacy aircraft – and the company has adopted sustainable aviation fuel (SAF), cutting emissions by an estimated 80% per flight compared with conventional jet fuel. In 2024 that saved 5,819.12 tCO2e (tonnes of carbon dioxide equivalent). One atmosphere Paul Fowler, vice president motorsport – global, observed: “People want to be seen to be working on sustainability. F1 is an early adopter; it’s out front, and it travels the world. Of course there are cost implications for becoming more sustainable but the expense is coming down. It’s no longer prohibitive.”
Lawrence Wright
There are still hurdles – not least the limited and uneven availability of SAF, although Lawrence Wright, vice president, head of sales and marketing, pointed out that the ‘one-atmosphere’ approach means this is perhaps not such a problem. He explained: “If you purchase
Sustainable Logistics and the Environment
American Airlines Cargo provides one of the largest cargo networks in the world with cargo terminals and interline connections across the globe. Every day, American transports cargo between major cities in the US, Europe, Canada, Mexico, the Caribbean, Latin America and Asia. Together with wholly owned and third-party regional carriers the airlines operate an average of approximately 6,700 flights per day to nearly 350 destinations in over 50 countries.
18 | May 2025
www.bifa.org
Policy & Compliance
manage their supply chains. Knowing exactly where any given shipment is helps them plan their resources and meet demand. Smart containers are also a deterrent to criminals wishing to break in to steal the cargo or place illicit goods within an already loaded container. By monitoring and reporting suspicious or unexpected door openings that might be a red flag, operators can immediately alert local agents or authorities to potential criminal behaviour. Smart containers can provide greater transparency as to what is packed in the container and who has packed it, helping to mitigate the risk of mis-declaration of dangerous goods and associated risk of ship fires. IoT sensors can detect the slightest change in the atmosphere inside the cargo space, potentially helping with early fire detection. Finally, IoT sensors in smart tank and reefer containers can ensure the set temperature is maintained to avoid cargo wastage and improve sustainability. They can also monitor the efficient operation of reefer equipment, identifying opportunities for preventative maintenance and a reduction in emissions if the equipment is working harder than needed to maintain the set temperature. There are other related smart technologies available, such as electronic smart security seals, that could enhance the benefits of smart containers further. Currently, however, innovators in this space typically work in silos to solve specific challenges. TT implores those focused on delivering such smart solutions to collaborate and take a more holistic approach to address the current risk landscape. Summary The global fleet of smart containers continues to expand, providing transport and logistics operators and their customers with the exact location of containers at all times and ensuring that quality standards are met during transport. This in turn enables any necessary mitigation to be undertaken proactively to minimise the risk of damage or delay. Shipping cargo in standard containers will no doubt continue for many years, but it will eventually start to look like the less smart option.
Why smart containers are the future TT Talk reports on the accelerating adoption of smart containers and the bene fi ts they bring to all parties
T he world’s container cargoes are increasingly at risk of being delayed, damaged, lost or interfered with. Continuing growth in international trade together with ongoing climate change, geopolitical disputes, rogue operators and organised crime gangs mean transport and logistics operators need to keep an ever- closer watch on their containers. Operators and their clients need to ensure containers are where they should be at all times and, if not, initiate mitigation measures to minimise any commercial impact. They need to know containers and their cargoes are being kept at the right temperature and humidity to avoid the risk of damage or fire, and be alerted to any unplanned openings that might indicate theft or smuggling. It is therefore not surprising that so-called ‘smart containers’ have become increasingly commonplace, providing operators with the benefits of greater visibility, security, safety and sustainability. According to Drewry research in 2024, smart containers grew by 9.2% during 2023 to an estimated 2.93 million, up from the previous
year’s growth of 5%. The total is expected to expand four-times over the next five years to more than 8.2 million, nearly 22% of the total (Drewry Maritime Research). Sensors and antennae A smart container is one equipped with ‘internet of things’ (IoT) sensors and antennae, enabling data to be collected and transmitted in real time. The sensors continually monitor information such as location, temperature and humidity, while identifying impact or shock events and door openings. The antennae then send this data to a secure cloud-based platform, which automatically detects important events. Operators can access the data using web-based applications. Bene fi ts of smart containers One of the major benefits of smart containers is greater visibility. They effectively provide independent track and trace information on both land and, increasingly reliably, at sea. This facility is also invaluable as an added-value service to end- customers in helping them to
“ Smart containers effectively provide independent track and trace information on both land and, increasingly reliably, at sea
May 2025 | 19
www.bifa.org
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24Made with FlippingBook Annual report maker