BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
April 2023 The magazine of the British International Freight Association BIFA link Issue: 392 www.bifa.org
INSIDE
Ten questions for your climate partner
6: News Carri Marais joins BIFA’s expanding training team 8: Policy & Compliance The introduction of electronic Bills of Lading
16: BIFA Awards Noatum Logistics UK, the 2022 BIFA Air Cargo Services Award winner 19: Policy & Compliance A summary of the Windsor Framework
– Pages 12-14
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Steve Parker’s Column
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Events that will shape our country
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
As I started to write the DG column for April’s BIFAlink , it occurred to me that there were several significant events in March that would shape our country and even our industry for the weeks and months to come. There is an excellent article on page 19 written by BIFA’s policy & compliance manager and executive director, Robert Windsor, (who is delighted to have an agreement named after him) which is worth a read. In the article, Robert considers the impact of the recent Windsor Agreement on Members’ activities, whilst not forgetting the wider social aspect. The reason for mentioning this is to assure BIFA Members that your trade association remains very close to this agreement, having had calls with the Secretary of State for
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Director General Steve Parker
s.parker@bifa.org Executive Director Robert Windsor, Policy & Compliance – Surface & Legal
r.windsor@bifa.org Executive Director Spencer Stevenson s.stevenson@bifa.org Executive Director Carl Hobbis c.hobbis@bifa.org International Relations Manager Robert Keen r.keen@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
Northern Ireland, the Rt Honourable Chris Heaton-Harris MP, as well as HMRC and Treasury officials. Rest assured, we will monitor and report on the likely impact of the outputs as they become available, but as ever with these things the devil is in the detail. As the Chancellor announced his budget in the middle of March, one focus was the government’s intention to implement a fiscal policy encouraging some sectors of the population to delay retirement or return to the workplace. Part of this strategy includes people development and training. My reminder to you would be that BIFA has several excellent and well proven courses from which Members can benefit. Whether this is our import and export basics course, or the Customs BTEC course (which supports the Standard of Competency, set out in AEO accreditation) there should be something of interest that assists further learning. Turn to page 21 for overviews and delegate feedback relating to these two popular courses. This, along with the work we have done with Manpower on the Freight Development Pathway (FDP), a programme launched at the end of last year in partnership with Manpower to offer career guidance to individuals looking to switch from other sectors, should support the recruitment and development of such people to our industry. I am pleased to note that March saw the first candidate from those that have completed the FDP start employment as a trainee Customs operator in KTL (Europe) Ltd’s Customs department. Are Chelsea a barometer for the freight industry? As a lifelong Chelsea fan, the last 20 years have been full of excitement and success. Not so much this season, however, and most of 2023 has been flat, although at the time of writing there were signs of improvement. I wonder if it is the same for the freight industry? IATA figures suggest freight volumes are down, but the expectation for the coming months is brighter. In the ocean freight environment, I read an interesting article quoting the former chairman of two of the world’s leading carriers, who said that container lines will counter excess capacity and slow demand growth by deploying multi-faceted strategies to reduce slot supply. It will be fascinating to see how that pans out. Members active in the cross-border European road freight sector will be interested to hear the outcome of the short survey that was conducted in March by the DfT’s Future Border Policy team, in conjunction with KPMG, investigating the recent experience of HGV drivers and transport managers that drive or manage vehicles using the Short Strait crossing. BIFA is attending Multimodal 2023 With just over two months to go before Multimodal 2023 opens at the NEC, have you registered to attend? If you have, do make sure that you come and visit us in the BIFA Village. Along with colleagues, I will be attending and look forward to meeting as many of you as possible. I submitted this column from Geneva, where I was attending FIATA’s 2023 HQ Meeting. The theme of the event focused on how disruptions in supply chains have revealed the vulnerability of freight forwarding and logistics companies. The COVID-19 pandemic, the war in Ukraine, rising energy costs and other climatic disasters illustrate the extent of the challenge and the consequences for global supply chains and sustainable development. These challenges underscore the need to build resilience, particularly in the most vulnerable economies. In this context, ‘Navigating Uncertainty’ was the perfect theme for the 2023 HQ Meeting, which I attended on BIFA’s behalf. I look forward to telling you more about how FIATA will work towards providing tools to promote resilient logistics, in the face of disruptions, to support its Association and Individual Members to cope with the new challenges.
Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors
Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Igor Popovics, Brooke Neilson, Nezda Leigh, Robert Keen 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.
Steve Parker Director General
April 2023
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Air cargo demand continues to decline Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
shipping lines need to respond to changed market conditions in a timely manner and to use this time of low demand to improve container quality and cleanliness standards, and provide reasonable free time for their proper usage. Despite the glut of equipment and falling freight rates, shipper-owned containers (SOCs) may be more cost-effective than renting those owned by carriers, says consultancy Container Xchange in its annual survey. It suggests this is because of scarce equipment in inland locations and SOCs not being subject to unexpected demurrage and detention fees. As a result of frenzied newbuilding orders in 2020 and 2021, the world’s 11 largest container carriers are scheduled to receive 89 large containerships in 2023, according to maritime consultancy Alphaliner. OVERLAND A modest investment in overhead wiring for short branch lines could allow 95% of railfreight in the UK to be electrically hauled, compared with only 10% currently, said the CILT(UK). It added that electrifying short branch lines and other stretches of route could avoid the situation where freight trains travel for hundreds of miles diesel hauled ‘under the wires’ because a few vital miles have not been wired. Changing from diesel to electric locomotives en route is costly and can potentially lead to delays, so train operators tend to avoid doing so, even if it means operating for long distances with diesel instead of less polluting electric traction. Eurotunnel is launching FIRST, a subscription-based service offering a range of innovative services, including priority access to check-in lanes, boarding lanes and to the Douane/SIVEP Customs, plant and animal control centres, to better meet the needs of freight customers looking for additional time savings and dedicated support on their Channel crossings.
IN THE AIR Economic constraints continue to take their toll on demand in the air cargo sector as January became the 11th month in a row that air cargo volumes declined, according to IATA. It reported that global demand, measured in cargo tonne- kilometers (CTK), fell 14.9% year on year, whilst overall supply, fuelled by a resurgence in belly capacity, was up 3.9% compared with January 2022. From 3 April 2023, IAG Cargo will introduce a £10 charging fee for customers who opt to continue using paper air waybills (AWB), as part of its drive to become fully digital.
ON THE OCEAN Container lines will counter excess capacity and slow demand growth by deploying multi-faceted strategies to reduce slot supply,
according to Bronson Hsieh, former chairman of both Evergreen and Yang Ming. He told the The Freight Buyers’ Club podcast that carriers “know how to arrange” supply-side reductions and would do everything in their powers to “control redundant capacity”, which will include laying up ships, mass blank sailings and slow steaming to tie up more vessels and cut fuel costs. Condor Ferries will introduce a new ro-ro vessel between Portsmouth and the Channel Islands later this year. It provides sailings linking Portsmouth and Poole, the Channel Islands and the French ports of St Malo and Cherbourg, using a mixed fleet of high speed and conventional ships. Shortsea container shipping operator WEC Lines has expanded its existing services into the port of Liverpool, with new weekly calls from Bilbao, Vigo and Gijon in Spain, Setubal and Leixoes in Portugal, Casablanca in Morocco, and Santa Cruz and Las Palmas in the Canary Islands. These add to its existing Portuguese and Spanish routes, which have called at the port since 2019. FIATA has called for reasonable free time periods at pre-pandemic levels to be reinstated, adding that
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Carri Marais joins BIFA’s expanding training team
FIATA calls for reasonable free time for container usage FIATA, the International Federation of Freight Forwarders’ Associations, has urged shipping lines to review the current free time periods for container usage and to reinstate these back to pre-pandemic levels. Demurrage and detention charges are an important tool for supply chain stakeholders to ensure the efficient use of their container stock, which represents a substantial investment. Understanding the need for maintaining the velocity of cargo, containers need to be turned around as fast as possible. Consequently, merchants who use containers for longer periods should be discouraged from this practice. Best practices on this topic can be found in FIATA’s Toolkit on Detention and Demurrage and the Best Practice Guide on Container Shipping and Quality of Containers Vol 2
BIFA has strengthened its training team with the
“Carri brings knowledge of CDS and actually making declarations into the new system, which brings added experience to the team.” At the time of writing, Carri was just completing her Level 3 Award in Education and Training (PTLLS) qualification. In her spare time, she really enjoys knitting and one day hopes to complete the jumper she has been working on for the last 10 years. She is also a qualified hypnotherapist. BIFA director general, Steve Parker added: “Brexit, the switch from CHIEF to CDS, and the development of a relevant freight forwarding apprenticeship, are among a number of issues that have led to a significant increase in the demand for our training programmes. Carri’s appointment strengthens the team and helps to ensure that we have the resources in place to meet demand.” If you have any training enquiries, contact Carl Hobbis at c.hobbis@bifa.org
appointment in January of Carri Marais as trainer – freight and Customs procedures. Carl Hobbis, executive director at BIFA, who also has overall responsibility for the trade association’s training activities, said that 2022 was another excellent year for BIFA’s training courses, and it is anticipating demand for them to remain high. “With the appointment of another full-time trainer to our training delivery team, we now have a four- strong team based in Yorkshire, Manchester, Birmingham and Heathrow, which will enable us to deliver more training days for our Members during 2023.” Carri, who joins BIFA from DB Schenker, will be based in South Yorkshire. She has over 25 years of experience in freight forwarding and logistics, including the management of import and export consignments across all modes, team building and
training, internal sales, Customs, customer service and key account management, as well as documentation. Prior to DB Schenker, she worked in UPS-SCS for many years, as well as at IFE Global Logistics. Hobbis added: “It is a pleasure to welcome Carri to the team that delivers our freight and Customs training programmes, which go from strength to strength and are
generally seen as the most engaging in the industry.
FIATA’s Toolkit on Detention and Demurrage
HMRC warning to contractors
Best Practice Guide on Container Shipping and Quality of Containers
BIFA has been contacted by HM Revenue and Customs (HMRC) in an effort to spread the word about tax avoidance schemes. These schemes are usually aimed at individuals working as contractors or through agencies and often involve umbrella companies who offer to handle payroll and tax arrangements for the individual. If BIFA Members are using contractors or agency staff, they are urged to ensure that they do not
become inadvertently caught up in such a scheme when recruiting and paying salaries to agencies. HMRC is urging contractors in a wide range of roles across the freight sector not to get caught out by unscrupulous promoters of tax avoidance schemes. Tax avoidance is when people bend the rules of the tax system to try to pay less tax than they should. Every individual is responsible under UK law for paying the correct
amount of tax. This still applies if contractors have appointed someone else to deal with their tax affairs or have been given bad advice – the ultimate responsibility and risk rests with the individual. There is more information on identifying possible tax avoidance schemes on HMRC’s Tax Avoidance – Don’t Get Caught Out
FIATA notes that it is the obligation of shipping lines to provide a reasonable free period to allow the merchant sufficient time for: • The loading and delivery of the container for an export; • The pick-up, unloading and return of the empty container for an import. Whilst the decision to reduce the free time periods was one- sided, market conditions have in the meantime changed and justifications for status quo no longer remain valid. Read the full FIATA press release at https://fiata.org/n/fiata-calls-for- reasonable-free-time-for-container
campaign webpage. Scan the QR code to learn more.
BIFA Membership: Your annual subscription is now OVERDUE
If you have not yet made payment for the annual subscription, you are reminded that your remittance is now overdue. Following the issue of the Company Declaration to all BIFA Members in late 2022, the annual
subscription invoice for 2023 membership was sent in January. In order to continue to benefit from the protection afforded to your business under the BIFA Standard Trading Conditions 2021, advice and information and access to
regional meetings, it is essential that your membership is renewed promptly. If you have a query relating to membership and your renewal, contact Sarah Milton, membership supervisor (s.milton@bifa.org).
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Recruitment success stories
Annual General Meeting notice Notice is hereby given that the 34th Annual General Meeting of the British International Freight Association (BIFA) will be held on Thursday 25 May 2023 (venue and time to be advised) in order to: 1. Receive the report of the board of directors. 2. Receive the accounts for the year ended 31 December 2022 and the Report of the Auditors thereon. 3. Appoint auditors and authorise the board to fix their remuneration. 4. In accordance with the Association’s articles, to note and approve the election of officers of the Association. 5. Transact any other business which may properly be transacted at an Annual General Meeting. Steve Parker, Director General 31 March 2023 A BIFA Member may nominate an attendee although there will be a limit on numbers once a quorum is achieved. Please email s.hammond@bifa.org Note: Any Member entitled to vote at the above meeting may appoint a proxy to vote on a poll in his or her stead. A proxy need not be a Member of the Association. A form of proxy is available to download from the BIFA website www.bifa.org
BIFA is pleased to report on two Member recruitment success stories, proving that a little initiative and planning will reap dividends
Ital Logistics proves school engagement works
When BIFA Member Ital Logistics wanted to recruit two apprentices, it reached out to BIFA for advice. James Mears, development director, Ital Logistics, said: “BIFA encouraged us to get in touch with our local school and gave advice on the best approach. We attended careers events which enabled us to promote our business to the local community and as a result Tilly and Valerie joined our company in July 2022. Unfortunately for us, Valerie decided to return to full time education studying accountancy, but the Ital door is always open for her. “Tilly is working within our Iberian export team, completing daily tasks from quotes, dealing with customers, shipment processing, Customs work and arranging domestic collections. I am extremely proud of Tilly’s development and progress so far. “Ital Logistics will be back to school during April looking for one, maybe two, new apprentices for our Italian export service.” Scan the QR code for ideas and advice on reaching out to schools.
Left to Right: Mr Burnham (head teacher), Miss Tobin (head of year 11), Valerie (apprentice), Tilly (apprentice), James Mears (development director) and Corey Chambers (French/Germany route manager) – Young Freight Forwarder of the year finalist 2021.
First for Freight Development Pathway initiative KTL (Europe) Ltd has become the first company to employ a candidate that has completed the Freight Development Pathway (FDP), a programme launched at the end of 2022 by BIFA in partnership with Manpower. Louie Turner, who has been employed as trainee Customs operator within KTL (Europe) Ltd Customs department, said: “The FDP was a perfect fit for me. The group sessions were informative, and the individual learning, which could be done in my own time, suited me. I am already seeing some of the freight industry terminology I learned during the introductory freight and Customs training course.” Myles Daly, managing director of KTL (Europe) Ltd, added: “I joined one of the FDP introductory sessions that are being run by BIFA
and Manpower, and thought this is a great way to attract new talent that will have a basic understanding of the freight industry.”
Mat Beecham, operations manager, Manpower Freight
Development Pathway, said: “It is fantastic that Louie has become the first candidate of the FDP to secure employment in the freight industry. We got involved in this programme to help alleviate the talent shortage and support more people into work; in many ways, Louie is a perfect example of why BIFA and Manpower set up this new initiative. It is also really pleasing to hear how KTL (Europe) Ltd has also embraced the FDP as a route to secure new entry-level talent.” To learn more about the FDP initiative, join one of
our information events. Scan the QR code for future dates.
The Limits of Liability for Carriers
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By air – Warsaw Convention (17 SDR): £18.70 per kg
By sea – Hague Visby rules (2 SDR): £2.20 per kg £733.44 per package
BIFA STC: (2 SDR): £2.20 per kg
By road – CMR (8.33 SDR): £9.16 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 17 March 2023,
By air – Montreal Convention (22 SDR): £24.20 per kg
according to the IMF website, was 1.10016)
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advising that the electronic methodology will be a contractual requirement. However, transferring to a completely electronic system is going to be complex; in certain jurisdictions only paper documents are accepted, which will actually require changes in the law. In fact, in the UK, the eBL has no legal status.
There is a Bill currently moving through Parliament to facilitate eBLs and other
e-documents of trade which was considered in the House of Lords in November 2022. The draft bill resulted from The Law Commission’s recommendations on electronic trade documents made in March 2022. The Law Commission’s recommendations were: 1. Only one person should be permitted to exercise control over any e-document at any one time; 2. Once transferred, the transferor should no longer have control over the e-document; 3. The system of use must be reliable to manage those e-documents meeting the necessary criteria. One further recommendation was made, being that there should be a list of factors to be taken account of when assessing the reliability of the system of use. The expected benefits are efficiency and economy in operating costs, increased security and compliance, environmental benefits, and to maintain English law’s leading role in global transaction governance. Business benefits Lord Parkinson, in the House of Lords, giving the lead comments announced that the Bill is permissive and facilitative and only seven clauses in length. He referred to figures in support saying that UK trade is worth £1.4 trillion, and this Bill should provide benefits to UK businesses over the next 10 years of £1.1 billion. Such changes, if and when they are fully implemented, will need a considerable re- engineering of forwarding processes. Also, there is the possibility of a dual approach, with some key documents moving through an electronic pathway, whilst paper documents are still required for Customs clearance, etc. Undoubtedly change is coming. The UK government is looking at implementing a single trade window that would allow digital messaging to replace paper documents. This would be a step in the correct direction, but particular questions regarding costs, the methods available to submit data and what shipping lines will do with the data are still causing concern.
The UK government is looking at implementing a single trade window that would allow digital messaging. While this is welcome, there are several areas of concern The introduction of electronic Bills of Lading
Members will probably have noted various reports in the trade press advising of significant initiatives to extend digitalisation within the container trade. There has been progress in implementing similar programmes in air and there are plans to do so in roadfreight via the eCMR. FIATA is digitalising its Forwarders Bill of Lading, transforming it into an eFBL – more information is available at www.efbl.fiata.org/ . There is a clear direction of travel in trade documentation but, as a whole, the sector has been remarkably resistant to change. The paper bill of lading, depending on who you read, has certainly been in existence since the 17th century. Bills of lading have evolved over the centuries, with the three main functions of a traditional negotiable bill of lading today being: • Evidence of a contract of carriage, • Proof that the carrier has received the goods, • Document of title to the goods. The Express Bill of Lading is a type of bill of lading in which the carrier is obligated to deliver the goods to the named consignee with no
original bills of lading re-issued. Estimates indicate that approximately 45 million bills of lading are issued by carriers each year, of which 1.2% are electronic. In February this year, the nine members of the Digital Container Shipping Association (DCSA), a neutral, non-profit organisation founded by major ocean carriers to digitise and standardise the container industry, committed to converting 50% of original bills of lading to digital within the next five years and 100% by 2030. Cost savings The press release highlighted that the adoption of the electronic Bill of Lading (eBL) would save $6.5 billion in direct costs for stakeholders and enable $30 to $40 billion in annual global trade growth. The problem with this announcement is, who will be the main beneficiaries of this significant change? Forwarders remember similar pronouncements from IATA in the air environment, where the perception was that most of the cost savings accrued to the carrier and very little to the forwarder. In some jurisdictions carriers are already contacting shippers and/or freight forwarders
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2022 saw ASM successfully support nearly 500 organisations through the challenging migration of import customs declarations to the new Customs Declarations Service (CDS). Users of Sequoia have now processed over one million live CDS declarations and counting, whilst continuing to have access to CHIEF declarations and the CDS test (TDR) environment during the migration period.
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In what will be another challenging year, the focus is now switching to the migration of exports to CDS and the significant changes to transit movements under NCTS Phase 5, both of which will happen in 2023. You can rest assured we will be here to support all of our customers through these changes as well.
Air Ocean Road Imports Exports ustoms declarations Worksheet automation Customs eTariff CFSP management Customs Warehousing Duty management Transit (NCTS) management Transit (CT) Guarantee management Import ETSF management CCS-UK electronic fallback 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
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N CTS5 – Office of Incident
In this article, HMRC explains the role of the new Office of Incident and how to report an incident that happens during the transit journey once NCTS5 is introduced. From 30 November 2023, any incident, such as change of vehicle or damage to security seals, that occurs during the journey must be reported to the nearest Office of Incident so it can be recorded into NCTS. In a significant change from current procedures, NCTS5 removes the requirement to carry a paper Transit Accompanying Document (TAD), unless it is requested by the haulier at the Office of Departure. From 30 November 2023, even if the haulier is carrying a paper TAD, it will no longer be possible to record an incident manually on the TAD. Incidents must be reported at the time of occurrence and hauliers will no longer be able to wait until arrival at the authorised destination to notify HMRC about incidents that happened during the journey. What is an Office of Incident? Currently, Customs offices have specific transit roles which can be any combination of the following: • Office of Departure – handles formalities and release of a movement at the start of the transit procedure; • Office of Transit – records the entry of a movement into that office’s Customs territory at its border; • Office of Destination – handles formalities upon a movement’s arrival and the goods’ release. (www.gov.uk/government/publications/ community-common-transit-and-tir- newsletters) To help freight forwarders operating transit prepare for the introduction of NCTS5 on 16 November 2023, HMRC is issuing detailed updates each month. All NCTS5 updates are published on gov.uk
From 30 November 2023, the role of Office of Incident will be used to record the details of incidents that occur during the transit journey and notify the Office of Departure and the trader at departure, as required. In the UK, all Offices of
Departure, Destination and Transit locations will carry out Office of Incident functions. The Office of Incident will record the details in NCTS, notify the Office of Departure and decide if the transit movement can continue its journey.
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• Where the transit movement cannot continue, the Office of Incident will act as Office of Destination and carry out all arrival formalities there. • Where the Office of Incident decides that the transit movement can continue, the journey
The reasons why you need to take action and report an incident have not changed. The person responsible for moving the goods (such as the haulier) must present them, together with the MRN for the declaration, to the nearest Customs office (who will act as Office of Incident) in the territory in which the means of transport is located at the time of the incident. You can find further
can resume, ending at the Office of Destination as originally planned.
When an incident is registered, a notification will be issued electronically to the person who made the departure transit declaration. This will be either via its NCTS5 compatible software, or via the NCTS web portal, if used. The notification will include all details of the incident, such as the location and any additional relevant details including transport changes, transhipment and seal changes. From 30 November 2023, if an incident occurs during a transit movement, you will need to report the details immediately to the nearest Customs office. NCTS5 users can find a list of Customs offices on the official website of the European Union (https://data.europa.eu/data/datasets/customs- office-list?locale=en).
information about reasons for reporting an incident in the Transit Manual Supplement
(www.gov.uk/government/publications/transit- manual-supplement pp 94-95 section 7.6 Control Declaration Goods – incidents en route).
Further NCTS5 updates issued by HMRC will be uploaded to www.bifa.org/information/ ncts-5 as they become available and reproduced in future issues of BIFAlink .
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Ten questions for your climate partner when measuring logistics and transportation emissions
In this second of a series of articles for BIFAlink , the integrated carbon measurement and offsetting platform Pledge has compiled 10 key questions that you should ask a prospective climate partner
2. What methodologies do they adhere to? In order to calculate the footprint of a shipment, your climate partner has to combine the previously mentioned emissions intensity factors with several other data points using a specific calculation methodology. The GHG Protocol is one of the most commonly known approaches. It recommends combining the distance travelled, the weight carried (when relevant) and the emissions intensity factor for the corresponding vehicle, fuel type and geography. Domain specific methodologies are also available. For air transport, the International Civil Aviation Organization (ICAO) developed an emissions calculation approach that is well recognised. While there are multiple ways to calculate carbon footprint, not all these methodologies are robust and can be trusted. Being able to verify the source of the calculation conducted by your climate partner is essential. 3. Can it clearly explain the results? It is important to make sure that you understand the measurement data that your climate partner outputs, and that you can confidently report on it to your shareholders, clients and employees in a clear and concise way. This can be particularly important if you have to combat accusations of ‘greenwashing’ — in other words giving a false impression or providing misleading information about how a company’s products or services are environmentally sound. 4. What modes of transport can it support? If your business uses a range of different transport modes, you do not want to end up using different measurement partners for each one. That is why checking your partner’s modal coverage is important before you commit. 5. Does it use vehicle or vessel identifiers to make your measurements more accurate? The International Maritime Organization (IMO) number, a unique
BIFA is cooperating with Pledge, an integrated carbon measurement and offsetting platform, to help Members better understand and address the environmental issues that affect how they manage international supply chains. Being a sustainable organisation is not just good for the environment, it is good for business too. A focus on sustainability can help you stand out as a competitor in your industry and drive efficiencies within your company. If you are a BIFA Member company getting started on your journey to Net Zero, you might not know where to start. There is a lot to consider, which is why many companies turn to third- party solution providers to play their climate partner. But with a vast range of sustainability consultancies and software solutions now on the market, it is important to complete your own checks. 1. What emissions factors do they use? There are different ways to calculate CO 2 emissions; it all depends on the information that you have available. The most accurate method is using primary data from your carrier, such as the amount of fuel consumed or the distance that your shipment has travelled. Unfortunately, this data can be difficult to obtain and it is hard to ensure consistency across the different carriers being used. If you do not have access to primary data, there are default values that can be used for measurement. An emission factor is a co-efficient which allows you to convert activity data into greenhouse gas (GHG) emissions. It is the average emission rate of a given source, relative to units of activity. Emissions factors come from multiple sources. The Global Logistics Emissions Council (GLEC) framework is the most widely used source in freight and logistics, but there are others that are more specific to given areas. EPA Smartway is commonly used for US-related emissions, DBEIS (formerly DEFRA) is used for UK emissions and ADEME for France. Asking your climate tech partner about the emission factors it uses is important, so as to confirm that its calculations are based on reliable sources.
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7. Is it accredited by a recognised independent standard? As mentioned above, there is a range of methodologies out there for measuring emissions, which means that it is sometimes difficult to know which climate partner to choose from. That is why it is worth checking whether it is accredited by a recognised independent body, which verifies that its calculations are accurate. 8. Can you sign-up and get started straight away? One of the benefits of using a climate tech partner is the speed at which you should be able to get started. The onboarding process and general user interface should be effectively set up to guide you in using the platform. 9. Is it easy to integrate and share data? If you have an in-house team of developers, an application programming interface (API) would probably be your best option, as it allows you to embed emissions estimates into your customer journey. But if you are a smaller company with no in- house technical support, you may prefer a basic data import such as a CSV file. This method is also useful if you want to trial the platform before committing to long-term use. 10. What happens when we cannot reduce our emissions further? Reduction of emissions is crucial in every company’s sustainability journey. But most companies reach a point where their carbon emissions cannot be reduced any further using conventional carbon reduction methods. Offsetting is a viable solution for addressing any residual or unavoidable carbon emissions and this is where many companies reach out to third parties that partner with offsetting projects around the world. To avoid duplication, check that you can track your offsetting in the same platform in which you measure your emissions.
identifier for ships, is useful for emissions calculations, particularly when it comes to filling in missing data. If your partner uses IMO numbers, it will be able to retrieve any data about a given ship, including its type and weight, which are important factors for accurately calculating emissions. It can also correct any mistakes in an imported data file. All of this means that the measurement produced will be far more accurate. For airfreight, airline and aircraft codes can be used to accurately identify an aircraft model and its corresponding layout. Having access to these plane specific details is important as it impacts how the aircraft load factor and fuel consumption is derived. This allows your climate partner to use calculation methodologies that go beyond the GHG protocol baseline and do not rely on average emission intensity factors. In addition, flight numbers can be used to retrieve the actual distance flown by the aircraft to give a more accurate output. 6. Do they offer routing and distance calculations? Maintaining a good level of accuracy is very important in emissions measurement, particularly when you do not have any primary data to hand. As mentioned previously, most formulae include the distance travelled, the weight carried and the emissions factor. With Google Maps and similar road mapping tools, land transport is relatively easy to estimate if you know the start and end points of each journey. But shipping and rail are not covered by widely used routing services. It is important to ask your climate partner how it manages its routing and distance calculations, as it is relatively easy to obtain a highly inaccurate estimate. The direct distance (as the crow flies) between a sea carrier’s starting point and its end destination will be widely different to the true distance that it needs to travel to avoid land mass.
With a vast range of sustainability consult - ancies and
software solutions
now on the market, it is important to
complete your own checks
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April 2023
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BIFAlink
BIFA Awards
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Noatum’s skills smooth launch of skincare range
Shortly after cosmetics brand Trinny London had selected Noatum Logistics UK to support the introduction of its new skincare range and its Australian launch, COVID-19 struck. Noatum’s response to the exploding demand and supply chain nightmares won it
PowerVIEW underpins Noatum’s growth Trinny London and its global suppliers are now using PowerVIEW, Noatum’s system that provides global end-to-end inventory visibility and control at purchase order and SKU level. This was essential to support the company’s rapid growth and to handle the added complexities of the supply chain during COVID-19. PowerVIEW also provides visibility of those shipments that are split by SKU in the UK and sent to specific production lines at the filling factories, to ensure traceability of particular products in case they are recalled.
the BIFA Air Cargo Services Award 2022
Trinny London’s business was growing fast by early 2020, so much so that its supply chains had become unnecessarily complex and beset by various risks. Enter Noatum Logistics, which offered solutions covering regulatory compliance, purchase order and vendor management, end- to-end supply chain visibility, multi-vendor consolidation and equipment utilisation, and a consolidated air freight platform. Cosmetics and skincare products contain specialised ingredients prone to adverse effects related to weather, temperature, humidity and light. The supply chain must therefore meet strict regulatory requirements such as temperature- controlled storage and transport. Trinny London’s Australian launch brought further complexity in the form of regulatory and Customs processes specifically for holding and importing cosmetics into that country. Noatum guided Trinny through these step by step, and its local experts fast-tracked authorisations and product registrations. Whole picture Lee Ward, account manager – international supply chain, said: “Rather than just being a freight forwarder who moves things from A to B, we look at the whole picture, including all the Customs processes. Plus, we have the IT to support our clients and we work closely with the factories – so the vendors trust us.” Not long after Noatum came on board, travel restrictions and lockdowns came into effect around the world. Overnight, Trinny London’s products became even more sought after. “It was boom time,” Ward recalled, observing
Noatum’s facility at London Medway
Lee Ward of Noatum Logistics UK
that Trinny London is mainly an online brand: an ideal business model to ensure the company’s success during lockdown, particularly with its new, more efficient supply chain. Ward said coping with peaks in demand such as those that occur around Valentine’s Day and Christmas – and, as it turns out, during lockdowns – is a significant challenge for the cosmetics industry. He explained: “There are only a few factories
that produce high-end products and packaging. So we try to plan ahead using ocean freight and then use air freight when necessary.” Through the initial COVID-19 period up to the end of 2021, Noatum moved over 250,000 kg of air freight for Trinny, using a blend of ambient and temperature-controlled scheduled, cargo and charter services to overcome the capacity shortages experienced during the pandemic. Split orders With available space so limited, it was often necessary to split orders across several aircraft, tranship, or fly to secondary destinations, for re- consolidation before delivery to the factory. Noatum’s proprietary supply chain management platform, PowerVIEW, proved its worth in managing these processes. On the other hand, 10- and 15-ton time-critical shipments for ramping up factory production ahead of the launch of Trinny London’s new skincare range required chartered aircraft. Spare capacity on these planes was often filled with competitor cargoes to achieve economies of scale and so cover costs – demonstrating Noatum’s flexibility in finding the best solution to any problem.
AIR CARGO SERVICES AWARD
IAG Cargo, the single business combining the strengths of British Airways, Iberia, Vueling, Aer Lingus and LEVEL, has sponsored the BIFA Awards for over 30 years. The success of the UK freight forwarding sector remains as important as ever to Britain’s place in international trade. Its sponsorship of these awards underlines its commitment to not only promote the sector, but to continue working closely with the freight forwarding community to deliver more connections and opportunities for global growth.
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BIFAlink
BIFA Awards
www.bifa.org
him starting an apprenticeship there. “I fell in love with the job,” Thomas said, describing the BIFA International Freight Forwarding Specialist Apprenticeship as the best decision of his career to date. Since then he has completed a Customs Declarations Service (CDS) course in preparation for the switch away from the UK’s Customs Handling of Import and Export Freight (CHIEF) system. Thomas has also begun training other apprentices, one of whom received a distinction in her final assessment. He explained: “After I had done my apprenticeship, I wanted to build the success of other young people in the company. I put the idea to my boss and he agreed. I do one-to-one sessions with other apprentices about their assignments as well as day-to-day operations.” He has also been guiding a new junior freight forwarder, whose development is exceeding her targets. “I have surprised myself,” Thomas said. “I never thought I would be the person teaching someone else! I have got the hang of it though. It helps having a connection with the colleague you are teaching; it is not like managing a classroom full of children who do not want to learn,” he joked. The training programme that Thomas has developed will remain in place not only for new apprentices but also for anyone new to the business. Currently, it is available only in the UK, but Thomas would be keen to see it rolled out elsewhere in OIA’s network if the opportunity presents itself. Proactive approach Meanwhile, he has moved from operations to a more commercial role and is actively working towards a leadership position. “I am pointing things out, communicating with the team and trying to become known for being able to do things,” he said. “I am putting myself out there and saying, ‘I am here, I can deal with this.’ “The only way to get where I want to be is to be proactive,” he continued. “You do not know what you are capable of until you push yourself.” Thomas is applying the same attitude outside his role at OIA, too. When he was named Apprentice of the Year, he was also appointed vice chair of the YFN’s London East region. “When the opportunity came up, I felt I had to give back in some way after all the help I had received from the YFN, so I signed up right away,” he said. “I am making connections and learning how it all works. The best way to learn is to jump straight in.” Thomas will move up to chair the region in September 2023.
‘Jump straight in’, says BIFA apprentice winner
Thomas Low, one of last year’s finalists in the BIFA Apprentice of the Year Award category, stepped up his success a notch this time around by winning the accolade
APPRENTICE OF THE YEAR AWARD
Seetec Outsource Training & Skills is a leading provider of innovative training, education and recruitment. Seetec Outsource has delivered thousands of successful programmes to a range of small and large organisations nationwide and helped many people into employment. Seetec Outsource provides apprenticeships and traineeships on a range of subjects at various levels. In May 2016, Seetec Outsource Training & Skills became part of the Seetec Group. Seetec is one of the leading public and business service providers in the UK and Ireland. Established for over 30 years, Seetec has helped businesses to grow, communities to flourish and people from all walks of life to reach their full potential.
Thomas Low completed his apprenticeship three months early, achieving a distinction into the bargain. “I had never got such a high mark before so I was really pleased,” he said understatedly. Early career “I was originally a chef by trade – that is what I had wanted to do since childhood – but I did not enjoy it as much as I thought I would. So I went into food purchasing, which combines my passion for food with logistics. Then COVID-19 came along and I was furloughed for eight months.” Enter BIFA’s Young Forwarder Network, through which Thomas completed ‘bitesize’ courses and obtained an interview with OIA Global that led to
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