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 June 2023
Young Forwarder Network hits a century of events
INSIDE: Members raise nearly £2,500 • The HGV Levy returns • Workplace hazards and safety failings Award winning Westbound Logistics Services • Know your BIFA STC: clause 2
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Issue: 394
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Steve Parker’s Column
Meet us at Multimodal 2023 H aving watched May’s Coronation from the comfort of my home, I could not help but admire the thousands who took part or simply attended. They did so for much of the ceremony in the pouring rain and carried off the day with either (or both) precise pageantry or sheer enthusiasm. They were determined not to let a bit (or a lot) of rain spoil their day. I could not help but think what a stoic nation we are. speaking at Multimodal 2023. Let’s be clear; we will not be on horseback or standing to attention in neat rows or even wearing uniforms that date back hundreds of years, but we will tackle the Customs and border- related issues that impact our industry today with the same stoicism, pageantry and even a little enthusiasm! The changes facing us As the Coronation was full of historical references, we plan some ourselves, as we consider all the changes that have come into place since the result of the referendum in 2016, which brought about the UK’s exit from the EU plus the added requirements that a new Customs system (CDS) has brought and I am sure will bring in the coming days, weeks and months. But coronations are not just about pageantry and the past, they mark an important point in time. They are a serious occasion, setting the stage for the future too. Opportunities (and challenges) Whatever your view on royalty, and whether you were those attending or like me watching on the television, you could not help but feel the importance and gravity of the occasion. Whatever your view, the event demanded your attention and even response. It is with this same frame of mind that Robert Windsor and I will be During our session we will consider the opportunities (and challenges) that all the changes bring us. So, whether you want to discuss the Spring Budget, the Border Target Operating Model, the Single Trade Window, the Customs Declaration System, the Import Control System (2), or even the fifth release of NCTS, we will address them all. I know you may be thinking that is a lot to fit in a short space of time, and of course you are right, but they are all important developments and all need to be understood and embraced. Facing up to industry issues With all that in mind either come and join us at 15:00 on Wednesday 14 June in the I0E&IT conference theatre, or visit the BIFA stand where we will be only too pleased to meet you and consider all the issues faced by the freight forwarding and logistics sector today, and what BIFA can do to assist in addressing them.
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 Web site: www.bifa.org E-mail: bifa@bifa.org (A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363) Director General Steve Parker s.parker@bifa.org Member Policy & Compliance Director Robert Windsor r.windsor@bifa.org Member Support Director Spencer Stevenson s.stevenson@bifa.org Member Services Director Carl Hobbis c.hobbis@bifa.org Member Engagement Director Denise Hill d.hill@bifa.org International Relations 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 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.
Director General
June 2023 | 3
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BIFA News
Containerline reliability continues to improve Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
based European Cargo using its fleet of all-cargo A340 wide-bodied freighters, each with a capacity of 70 tonnes, as part of a strategic partnership to grow its cargo operation. OVERLAND The Upply x Ti x IRU rates index indicates spot and contract rates in the European road freight market dropped 7.5% and 2.8%, respectively, quarter on quarter for the three months to 31 March, amid falling volumes and rising capacity. Upply CEO Thomas Larrieu said that while it is typical for road freight rates to dip after the holiday season, this year’s drop is hitting harder than usual. Legislation will be laid to safely roll out longer lorries on Great Britain’s roads from 31 May, in a move that the government claims will help grow the economy, boost productivity, slash road emissions and support supply chains. The longer vehicles are able to move the same volume of goods, while making 8% fewer journeys than current trailers. An open letter and petition has been handed in to 10 Downing Street calling for more safe and secure parking for HGV drivers, emphasising the concern that poor conditions and insecure sites mean many lorry drivers now believe they can do better parking off-site. IN BUSINESS The UK government must ensure its policies support the decarbonisation of London’s logistics sector if the UK is to meet net zero ambitions, says the Accelerating Logistics Towards Net Zero report, produced by consultant Sounding Board (ILSB). Two of three recommendations in the report suggest the installation of rooftop solar panels across all logistics spaces and clarifying the electrification of HGVs across the capital. Turley, and the London Industry and Logistics
ON THE OCEAN After a dramatic 7.7% increase in reliability between January and February this year, global containerline schedule reliability was up a further 2.4% in March. They reached an average of 62.6% according to SeaIntel’s latest Global Liner Performance Report, which covers over 60 lines on 34 different trades and was published in mid-May. Stena Line is constructing two bespoke 147 m long freight ferries for its Heysham-Belfast route that have been designed to maximise freight volumes and will provide 2,800 lane metres of capacity, an 80% increase on current ship
capacities. The first is due to enter service on the route in autumn 2025. IN THE AIR The Loadstar publication predicted in early May that surging China-Europe air passenger services will only serve to further depress air freight rates, as the industry struggles to contend with
mounting belly capacity amid weak demand. It added that for the UK alone, the spike in services over the past six months has been dramatic, with weekly China-Heathrow flights increasing more than tenfold, from five to 54. IATA has released data for March 2023 global air cargo markets showing a continued decline against the previous year’s demand performance. Global demand, measured in cargo tonne-kilometers, fell 7.7% compared with March 2022 (-8.1% for international operations). It said, however, that the decline in demand is slowing, although at this point, it is unclear whether this is a potentially modest start of an improvement trend or the upside of market volatility. According to analysis in mid- May from CLIVE Data Services, part of Xeneta, the global air cargo market may have to ‘hang on until October’ for signs of a recovery after a flood of summer bellyhold capacity on major lanes and a -4% drop in demand in April indicated a challenging 4-5 months ahead. Bournemouth Airport’s Cargo First air freight business is celebrating the start of a thrice-weekly all-cargo airfreight service between Chengdu Shuangliu International Airport (CTU) in China and the UK airport operated by Bournemouth-
4 | June 2023
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BIFA News
Just before Easter, the London East YFN region held a charity quiz and raised almost £2,500 in aid of Homerton University Hospital Regional Neurological Rehabilitation Unit (RNRU). Lexi Laybourn, the chair of London East’s YFN, who has done so much for it since its inception, was the driving force behind the quiz. The evening was a night to thank Homerton University Hospital RNRU for what it has done for her dad Rob, who suffered a large stroke in the first half of 2022. He spent four months in the rehab unit, learning to walk, Members raise nearly £2,500 for a fabulous cause
Pictured above are: The Homerton University Hospital RNRU team who cared for Rob (centre). YFN chair, Lexi Laybourn (right) with BIFA’s executive director, Carl Hobbis (second left).
talk and live an independent life again. The family learnt first-hand how important this type of place is. Carl Hobbis, Member Services Director, BIFA said: “It was a fabulous event. We would like to thank all the
Members involved for their generosity in buying tables, donating auction and raffle prizes and their all-round support. Not to mention the BIFA and YFN teams with their organisation of the event and the quiz itself.
“Finally, a special mention to DP World for its support with the venue hire and, although the evening was not about winning, for the record they won. Congratulations to Uniserve who were a worthy runner-up.”
Meet Denise, our Member Engagement Director
As part of a strategy to enhance engagement with Members, Denise Hill has joined the association as Member Engagement Director. With a strong background in commercial and relationship management, Denise will oversee and develop BIFA’s interaction with Members in regard to the services provided and how best the views of the membership can be represented. For much of the past decade, Denise has worked for DHL Global Forwarding and was involved in Customs brokerage account management and related activities, building strong relationships to progress account growth for multinational clients. Most recently, she set up and implemented a new team
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to manage Brexit-related Customs activities for the company’s clients from the automotive sector. Denise is a graduate with a degree in European Business Studies and she completed an MBA in 2015. To start a conversation with Denise, email d.hill@bifa.org
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BIFA News
Freight Development Pathway in the spotlight at Microlise Conference
Call for stronger data governance standards FIATA, the International Federation of Freight Forwarders Associations, and the Global Shippers Forum, have jointly issued an agreed Charter for Protection and Governance of Data in International Trade The charter sets out the minimum arrangements for data security and confidentiality that providers and operators of digital booking and trading platforms should adopt and incorporate in their End-User Agreements (EUAs). Recommendations in the charter seek to enable a safe and trustworthy environment for conducting business based on a level playing field. The charter has been approved by Members of both organisations and is believed to be the first declaration of rights for platform users in the trade and logistics sector.
The Freight Development Pathway (FDP), a three-week employability programme that BIFA and Manpower launched at the end of last year, was showcased at the recent Microlise Conference, a free-to-attend one-day event for those involved in the operation of a road transport fl eet. During a workshop, Carl Hobbis from BIFA and Mat Beecham from Manpower gave an overview of the Freight Development Pathway. This aims to help identify, attract, and train suitable candidates from outside the freight forwarding and logistics sector, help them to familiarise themselves with the sector and become work
and industry-ready for career opportunities with Members of BIFA. They covered its aims, intent, content and how it could potentially be replicated across the logistics industry. In addition to the employability programme, the FDP gives participants an introductory freight and Customs training course, delivered by BIFA’s team of
qualified trainers, and is part of a wider initiative to address the well-documented staffing issues that the sector faces. The programme is administered by Manpower and includes group sessions, weekly one-to-one meetings, employability training to get each participant ready for interview and employment, as well as the BIFA training.
Graeme steps up to head BIFA training team
Graeme Wilkinson has become the Training
and now heads BIFA’s five- strong training team. Graeme reports to Carl Hobbis, Member Services Director, who has overall responsibility for the trade association’s training activities. Carl said: “During Graeme’s six years at BIFA he has shown how his wide range of industry knowledge, covering many aspects of forwarding and logistics, can provide excellent support for the delivery of our freight and Customs training programmes.”
Development Manager, a new position created as part of a strategy to further develop the portfolio of training activities offered. Graeme joined BIFA’s training team in 2017 and has played a major role in the re-design of all of BIFA’s training materials since it took its extensive portfolio of training and education activities in-house, replacing an external contractor. He has over 25 years of freight forwarding experience,
including spells at Pantos Logistics, C.H. Robinson, MIQ Logistics and Emery Worldwide,
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £18.27 per kg
By sea – Hague Visby rules (2 SDR): £2.15 per kg £716.56 per package
BIFA STC: (2 SDR): £2.15 per kg
By road – CMR (8.33 SDR): £8.95 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 19 May 2023,
By air – Montreal Convention (22 SDR): £23.65 per kg
according to the IMF website, was 1.07484)
+44 (0) 1628 532613
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June 2023 | 7
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Policy & Compliance
the charges will be applied; previously the charge was based on a combination of the number of axles and Euro standard. The new HGV levy will be based on: • Vehicle weight as a broad approximation to CO 2 emissions, • Vehicle air quality emissions standard. In effect, this is now becoming another environmental tax and there is no regard to the damage to the UK’s increasingly pot-holed roads and thus their maintenance. For UK-registered trucks, payments will be collected by the DVLA; the operator will pay levy costs at the same time as Vehicle Excise Duty (VED). BIFA understands that the levy rates will be calculated automatically by the DVLA. For non-UK registered vehicles, the operators will have to set up an account and make advance payments via the following link ‘Pay the HGV levy’: www.gov.uk/hgv-levy . The non-UK registered HGV levy contact e-mail address is hgvcustomercare@necsws.com
The HGV Levy returns
The HGV Levy was suspended by HM Government on 1 August 2020 as a response to the impacts of the COVID- 19 pandemic – a move that was generally welcomed by industry. In March this year the Department for Transport announced its re-introduction,
effective 1 August 2023, for all HGVs of 12tons and over to ensure that they make a contribution for using the UK’s roads. The levy is equally applicable for both UK and overseas-registered trucks operating on the UK’s roads. There are significant changes in how
Some Top Tips for employing apprentices
2) Choose the most relevant apprenticeship standard There are over 35 approved standards in transport and logistics, but there are plenty of others that may be more suitable for your business, such as sales, marketing, business admin, etc. Get whole business buy-in to agree what the business needs. You can view all the standards available via: www.instituteforapprenticeships. org/apprenticeship-standards/ 3) Engage with your local school This is the easy way to recruit your apprentice. Schools need more employer engagement, and have a ready-made list of career events that you could become involved in. Just reach out to them and you can promote your business locally at the same time. If you want to find out more apprenticeship tips, join the monthly FREE 45-minute online event we are running for members when we will share our own experiences as well. The next one is on Friday 16June, at 1100hrs. Sign-up via www.bifa.org/events
W ith many young people still undecided about their career pathway, if you are thinking about employing apprentices, here are some of our tips to ensure that the process is a success for both the apprentice and the employer. 1) Line managers must have time This is paramount. If the line manager and team members do not have time to invest in the apprentice, it is likely that the apprenticeship will fail. The apprentice will require guidance and mentoring; you may even have to provide coaching for your team to ensure that they have the right skillset to support the apprentice if you decide to hire a young person.
“ If the line manager and team members do not have time to invest in the apprentice, it is likely that the apprentice- ship will fail.
8 | June 2023
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History
London Conference in the spring of 1942, a sub-committee was established to “study the question of the improvement of the status of the forwarding trade”. The suggestion was to seek a form of licensing for shipping and forwarding agents. Liverpool joined the sub-committee, followed by some other UK port associations. The outcome was a conference in March 1943 and subsequent meetings where all eight UK forwarding associations were present and began acting as a body representing the whole shipping and forwarding sector for the UK following a common policy. Professional body During 1943, the idea of a professional body to raise the status of the Shipping and Forwarding Agents and its staff began to take shape. On 1 December 1943, the last of the joint meetings was held and the National Council of Shipping and Forwarding Agents was instituted, consisting of two members from each of the eight associations. The primary duty of the National Council was to form an Institute of Shipping & Forwarding Agents, and in the meantime it was to act as a body representing the general interests of all agents throughout the country. The next step was to draw up a constitution and form the proposed Institute. The local associations became branches of the institute and the National Council was replaced by the Council of the Institute. On 28 November 1944, the personnel of the National Council became the signatories to the Memorandum and Articles of Association, making them the first Council of the newly formed Institute, which was incorporated on 19 December 1944 as the Institute of Shipping & Forwarding Agents.
In the beginning Since stepping down from his position as Director General at the end of 2022, Robert Keen has been busy documenting the history of BIFA, the fi rst instalment of which is published here.
W hilst it is likely that there are no formal records prior to 1897 when the London Shipping and Forwarding Agents’ Conference was constituted as an organised body to represent freight forwarders. The year 1901 saw the commencement of the Liverpool Shipping and Forwarding Agents’ Association, and in 1913 London became an incorporated body, Liverpool being incorporated in 1920. The London Shipping and Forwarding Agents’ Conference assumed a leading position in the organisations of freight forwarders existed earlier, international arena, demonstrated by the UK being a founder member of FIATA, the International Federation of Freight Forwarders, at the inaugural meeting in Vienna in May 1926. Early organisations For many years Liverpool and London were the only British organisations, although local arrangements existed in some ports. In April 1926, the Manchester Shipping and Forwarding Agents’ Conference was formed and this led to the formation of the British Association of Shipping and Forwarding Agents in January 1928, which was incorporated in July 1930. The British Association of Shipping & Forwarding Agents was constituted as a trade association and encouraged the formation of further local associations. But whilst it was a
“ The British Association of Shipping & Forwarding Agents was constituted as a trade association and encouraged the formation of further local associations
central organisation for the industry, it did not command support throughout the whole of the UK. In May 1938, the Southampton & District Shipping and Forwarding Agents’ Association was instituted and became a Company Limited by guarantee in February 1939. Also in May 1938, the UK-Canada Westbound Forwarding Association Ltd was incorporated. The Shipping and Forwarding Agents’ section of the Glasgow Chamber of Commerce was formed in November 1941 and by September 1942 the Bristol Channel Association of Shipping and Forwarding Agents had been inaugurated, agents in both districts having found the necessity of an organisation to protect their interests. At the annual meeting of the
10 | June 2023
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Young Forwarder Network
The YFN group visiting the Wagtail dog team
A t the end of April, a group of young forwarders, accompanied by BIFA Trainer Claire Capaccioli, took a scenic drive for an educational trip to the Wagtail facilities in North Wales. In a beautiful, peaceful setting the sound of excited dogs barking indicated they had arrived. The team gave a presentation educating those present about the brilliant work that Wagtail carries out and explained that dogs are used for detection purposes as they are quick, agile, curious, have the hunt and prey instinct and, primarily, have an amazing sense of smell; this can be trained to identify a range of scents, alerting the handler to their presence in seconds. Wagtail is a private company A group of young forwarders took a trip to discover how the Wagtail dog team provide a surprisingly large range of services to the transport and other sectors Gone to the dogs! “ The dogs can be trained to identify a range of scents, alerting the handler to their presence in seconds.
employed in many sectors, including private enterprises, airports, Customs or Trading Standards, for example. The dogs from Wagtail are sometimes called to challenging
premises (football grounds, large shopping centres, busy airports, cargo sheds, cramped shops) but together the team can quickly screen the entire site and, if anything is found, the dog will
12 | June 2023
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Young Forwarder Network
indicate by freezing. The team explained that the dogs can find contraband hidden in ceilings, floors, behind false walls, in machinery – nothing gets past them. Searching cargo Wagtail is the UK’s leading provider of Free Running Explosive Detection Dogs (FREDDs). FREDDs are specifically trained to screen air cargo for the presence of explosives. Strictly licensed and regulated by CAA and DfT, FREDDs are very quick, accurate and effective and they offer a ‘real time’ screening solution and an effective alternative to X-rays. FREDDs are less intrusive than other methods and screening turnaround times can be significantly reduced, saving time and money. Predominantly Wagtail uses the ‘floppy ear’ breeds like spaniels, labradors and gun dogs. Specifically, in the world of international movements, they screen people and search vehicles and cargo. Trained dogs are used to detect all sorts of contraband: cash, drugs,
search and rescue operations; Wagtail recently supported the earthquake recovery in Turkey and Syria and was involved in security around the coronation. Some of the YFN members had the pleasure of trying to work with the dogs to undertake searches – and discovered it is not quite as easy as the handlers make it look. It was a privilege to see how the dog and handler work together as a team and witness some of the training these clever dogs undergo, in their harness, which indicates to the dog that it is working. Networking Afterwards, the YFN members enjoyed an informal networking session over lunch and planning future YFN events in the North West. BIFA and the YFN committee members would like to express their thanks to Wagtail for the fascinating and informative tour. The next North West YFN event is a BBQ on 26 July with guest speaker, and ex-YFN member, Ryan Wilkes from K+N Melbourne.
explosives, firearms, weapons, plants, tobacco and ivory. As Kevin explained, Wagtail also does brilliant conservation work in terms of supporting ecologists with surveys searching for birds, bats and great crested newts. Dogs are also used in urban
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June 2023 | 13
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Young Forwarder Network
Young Forwarder Network hits a century of events
14 | June 2023
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Young Forwarder Network
B IFA's Young Forwarder Network (YFN) has reached a century of events. In April 2023, a tour of the DP World Southampton container terminal saw the BIFA Young Forwarder Network achieve the notable landmark of 100 face-to-face and virtual networking events four years after its inception in 2019. With events ranging from the purely social, through “field trips” to ports, airports and other operational
facilities, to inspirational career and leadership stories, and talks on specialist and technical subjects, the YFN creates a sense of belonging, a networking experience, boosts confidence and provides learning opportunities not available in the everyday hustle. Over 1,000 individuals have participated in the YFN’s events – to find out more and get involved scan the QR code and follow our LinkedIn page #BIFA Young Forwarder Network.
June 2023 | 15
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Young Forwarder Network
Sophie Hammond
Elliot Haldane
Lucy Dudley
the power of apprenticeships, that is why it is so great to see fellow apprentices at YFN events. The YFN is such a great opportunity to learn from industry professionals and to develop your network by meeting like-minded individuals. Lucy Dudley Company: Worldwide Logistics Group Location: London East Why did you choose this industry? I was looking for a career full of opportunities where I could continually learn and develop my skills. Freight is always evolving and has many avenues. When I stumbled across the job adverts for freight companies, I was fascinated by the amount of job roles, all with different daily tasks. I soon realised that I had found an industry that would allow me to reach my personal goals. When did you start your career in logistics? October 2019 as an import trainee. Why did you decide to get more actively involved with the YFN? I had no idea what I wanted to do after school and so I attended several career events. I had never heard of the freight industry as it is not spoken about in schools. I want to support other young people in the industry and encourage more to consider a career in freight. I want to help to grow the YFN and be surrounded with like-minded individuals. I would love to see more young people within the freight industry.
New YFN committee members step up
In the fi rst quarter of 2023 we made an appeal for volunteers for the regional committees of the Young Forwarder Network (YFN). Last month we introduced three volunteers – here we meet three more individuals who have stepped forward
Sophie Hammond Company: Kuehne + Nagel Location: Heathrow (currently on a three-month placement in Frankfurt) Why did you choose this industry? I applied to the KN Air Logistics Graduate Programme because I was very interested in joining an industry that is so diverse and fast-paced. Logistics really does make the world go round and offers such a wide range of global opportunities. When did you start your career in logistics? September 2021. Why did you decide to get more actively involved with the YFN? It can be slightly intimidating to start a role in a completely new industry, but having a network where you can meet other like-minded young people is a great comfort. The YFN offers a great platform for members to learn about the industry outside of their day-to-day roles, and the events are a fun way to expand your network beyond your organisation.
Elliot Haldane Company: Geodis UK Location: Heathrow Why did you choose this industry? I was aware of freight forwarding due to my close proximity to the airport, and also due to the fact that many of my friends and family worked in this industry. When did you start your career in logistics? Early in my working career, when I was 16, I joined a well- known parcel company and worked part-time while in school. I was told I would not be able to make a career out of it by my then-teacher, but since then, I have had a drive to work as hard as I can to prove myself in this industry. Why did you decide to get more actively involved with the YFN? Upon completion of my apprenticeship here at Geodis, I decided to get more involved with the YFN. I am now proudly a member of the Heathrow committee. I am a strong believer in
“ The YFN offers a great platform for members to learn about the industry outside of their day- to-day roles
16 | June 2023
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BIFA Young Forwarder Network
Join the Young Forwarder Network today! The YFN enables employees of BIFA Members to enhance their careers and grow their professional networks through the attendance of our exclusive events.
Being in the YFN has not only my career so far but also hugely rewarding and motivating! Georgia Gibson Committee Chair
Boosting knowledge, sharing skills, advice, and experiences from industry professionals, and providing visits to places of industry interest. All events are free and are open to BIFA Member employees under the age of 32.
www.bifa.org/information/young-forwarder-network Email bifacomms@bifa.org to sign up to our mailing list @ BIFA Young Forwarder Network
Policy & Compliance
Don’t get caught out by workplace hazards and safety failings
This article addresses some of the key health and safety issues seen in the industry and serves as a reminder to plan, prepare and assess health and safety operations
I n February this year, the Swindon Crown Court dealt with a case involving multiple breaches of the Health and Safety at Work Act 1974 (HSWA) and the Reporting of Injuries, Diseases and Dangerous Occurrences Regulation 2013 (RIDDOR), by a logistics company. This is not an uncommon occurrence. The courts are dealing with an alarming number of health
and safety breaches. In the aforementioned case, the Swindon Crown Court handed down a fine in to a logistics company of £125,000, as well as ordering that the company pay Swindon Council’s legal costs amounting to some £80,623. The logistics company had inherited a site in Swindon
18 | June 2023
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Policy & Compliance
Safety Executive (HSE), it was found that the company failed to provide supervision of operatives and drivers working on night shifts to ensure safe protocols were followed – practices were “routinely ignored”, specifically, safe walkways and the safe operation of machinery to ensure visibility. Sentencing was adjourned until August 2022, when the Portsmouth Magistrates Court fined the company £200,000 and ordered it to pay costs of £15,631.61. A health and safety audit is absolutely essential to employee safe working. • Another transport company was fined in November 2022 by the Salisbury Magistrates Court, following the death of one of its drivers whilst working in the back of his vehicle, loading and unloading. The company was ordered to pay £400,000 and received a costs order of £19,841.99. A health and safety executive investigation found that the company had not carried out a proper risk assessment of working at height and that insufficient training had been provided. The HSE inspector emphasised that simple control measures would have prevented the incident. What to do So, whilst health and safety at work has historically been seen as a separate (and in some cases, less important) part of business operations, it is clear that companies must now account for health and safety offences, which if in breach, may disproportionately affect the bottom line. Simple steps such as training and full risk assessments can often make the difference. Key action points: • Know the rules: this is aimed at both employers and employees. Whilst you may be familiar with the longstanding company policy, your primary responsibilities are set out within the Health and Safety at Work Act 1974 : -Section 2: outlines the duties of an employer and deals with the safety of the working environment, instruments/equipment and the provision of training or supervision for the employees. -Sections 7 to 8: outline the duties of the employees (including cooperation and an obligation to take reasonable care of yourself and others). - The Health and Safety at Work Act 1974 is enforced by the Health and Safety Executive (HSE) and local authorities. • Make use of your resources: HSE issues comprehensive guidelines in a range of different areas including risk assessments. Specific guidance on forklifts, risk assessment charts for manual handling activities and incidents notable of reporting are also outlined in s. 6 to 11 of RIDDOR. • Be aware of updates: rules and regulations are updating all the time. Keep track of the latest HSE guidance and seek advice where necessary. Work-related incidents are a major problem for the logistics and transport industry which is, in many ways, at higher risk than other industries. Follow the guidance, be proactive and protect your employees to protect your bottom line. BIFA would like to thank LA Marine Solicitors for allowing BIFA to re-use information included in its original article when preparing this piece.
and took over operations a number of years ago, before the court hearing. Swindon Council was called to the site after an employee became trapped by a cage that shifted following an impact from a vehicle operating inside the warehouse. The council then discovered that there had been other incidents on site that had not been reported to it under RIDDOR. The court found that the logistics company failed to comply with its responsibilities set out within HSWA and had further failed to report past incidents within the workplace, in breach of RIDDOR. The judgment demonstrates the courts’ increased intention to issue fines for those in breach of health and safety at work law. Heavy fi nes Other logistics firms have had heavy fines imposed on them for similar health and safety breaches: • In March 2022, a cargo handling company pleaded guilty to breaching section 33 of HSWA after an employee was fatally crushed between shipping containers whilst working in a container park in Portsmouth in 2017. After investigation by the Health &
“ Follow the guidance, be proactive and protect your employees to protect your bottom line
June 2023 | 19
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BIFA Awards
allow us to open up the wine market through our wet bond. “You cannot just be an old- fashioned freight forwarder,” Keens continued. “You need to offer extra services such as fulfilment, and you have to be flexible in what you offer. So we continuously develop For instance, business has grown such that Westbound now provides end-of-week departures as well as the Wednesday departures it had initially set up. Indeed, further expansion and more services are planned for 2023. Westbound will be investing in customer service, for instance, with a balance between technology and the personal touch always front of mind. Keens stressed that a retained customer is just as valuable as a new customer. “We see customers as partners. The more they benefit from our service, the better for them and the better for us,” he said. Elements align our services to satisfy our customers’ needs as they themselves evolve.” Looking back on how Westbound successfully set up the European operation, Keens said: “Everything aligned. First, we were fortunate to tap into our existing customer base. By definition, if someone imports things from the Far East, for instance, they will have other requirements too. “Second, there was the timing of it. Some people might ask who in their right mind would want to start up a European road freight service while Brexit was going on, but in fact it opened a lot of doors because everything was changing so much.” Although there are still “minor bumps in the road” relating to Brexit as the final implementations of the agreement are put into action this year, the situation seems to be more controlled now, and the establishment of free trade ports in the UK will create new avenues to explore. The third star that aligned for Westbound was its good fortune in finding the right staff with the right work ethic, which Keens said was Westbound’s biggest achievement. “It has been a whirlwind two- and-a-half years – but very rewarding,” he summed up.
Some of the team at Westbound’s Basildon head office
Stars align as Westbound sets up Europe operation
Westbound Logistics Services developed a thriving European operation from a standing start in 2021. Its success was crowned with BIFA’s 2022 European Logistics Award
shocks to the supply chain.” Westbound saw an opportunity to set up its own European operation. It found new staff, brought partners on board, and settled on Paris, Frankfurt and Munich for its European hubs. It also opened another UK office, in Manchester, to cope with what was obviously a growing market. Plus, Westbound established a presence in Portugal to service Europe from a different gateway. “Portugal is developing,” Keens stated. “It links up with Africa – as do our connections in Paris – there are feeder options to Latin America, and it has ocean gateways that will
W estbound set up its own operation in China in 2016, which provided the potential for e-commerce client opportunities in Europe, based largely on inventory management and distribution through online sales platforms. Initially, the UK was the hub for the company’s retail and ful fi lment business from China – but Brexit resulted in signi fi cant volumes being routed directly to Europe. Changing market Martin Keens, director of roadfreight and warehousing at Westbound, said the company had noticed increasing acquisitions, diminishing service levels and increasing automation on European services. At the same time: “A lot of manufacturing is coming back from China to North Africa and Eastern Europe. Markets within Europe are growing as people try to build contingencies in the face of high rates, COVID-19 and other
Martin Keens, Westbound
Logistics Services
European Logistics Award
TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in- depth industry knowledge and enduring member loyalty. It retains more than 93% of its members with a third of its entire membership having chosen to insure with the Club for 20 years or more.
June 2023 | 21
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Legal
Know your BIFA Standard Trading Conditions: clause 2 – REVISITED
Carriage by Air Acts (Implementation of the Montreal Convention 1999) Order 2002 SI 2002/263. Up to December 2010, 97 states had adopted this convention including the UK and all other EU states and the US. Also still in force are three versions of the Warsaw Convention – Original, Amended and Montreal Protocol No.4 of 1979, identi fi ed as ‘MP4’. For ‘Non- International Carriage’ (see below) there are now the Non- International Carriage Rules implemented by The Carriage by Air Acts (application of provisions) Order 1967 SI 1967/480 as amended. The Montreal Convention of 1999, the three versions of the Warsaw Convention and the Non- International Carriage Rules can all apply to air carriage to and from the UK. These complexities arise because each regime applies only if both the country of despatch and the country of destination have adopted it, failing which the regime previously common to both countries applies. For example, until the 28 June 2004, the UK had adopted (since 1998) the MP4 version of the Warsaw Convention. Israel has not adopted the Montreal Convention of 1999 (up to December 2010) but in 1998 it adopted the MP4 version of the Warsaw Convention. Thus air carriage between the UK and Israel is subject to the MP4 version of the Warsaw Convention, not the Montreal Convention of 1999 (which in so far as cargo is concerned have little difference) The term ‘non-international carriage’ is used in the legal sense – not the geographical sense – and the term does apply to air carriage between the UK and its overseas territories such as the Channel Islands, Bermuda, Falkland Islands, Turks and Caicos Islands, etc. Thus the Non-International Carriage Rules apply to such air carriage as well as to air carriage within the UK. The Montreal Convention of 1999 and all versions of the Warsaw Convention apply only to the period
This month we pause the Know Your BIFA Standard Trading Conditions series to revisit Clause 2.
I n June 2022, BIFA examined the relationship between Clause 2 of the BIFA STC and the various international modal conventions covering the carriage of goods. The main focus was on common law, contract law and statute law. Subsequently BIFA received an enquiry from a Member regarding a 2018 judgment which, in certain limited circumstances, impacts on this particular clause. Due to the complexity of the subject matter, and to ensure that context is clear to the reader, we are reproducing the whole article with the amendment highlighted in blue. The CMR Convention for the International Carriage of Goods by Road enacted by the Carriage of Goods by Road Act 1965. It is important to note that this Convention concerns the contract of carriage and not the vehicles used to perform the contract. Thus the CMR Convention may still apply to local collections and deliveries before and after carriage by the vehicle used for an international journey, if those local journeys form part of the contract of international carriage. If the local carrier has not contracted for international carriage, then that local carrier may have liability only to the extent offered under its trading conditions, unless it has taken over the CMR consignment note or unless the provisions of the CMR Convention are voluntarily adopted. The CMR Convention does apply to road carriage to or from a country that is a party to the CMR Convention. Most European countries are a party to the CMR Convention. The CMR Convention does not apply to a contract for the carriage of an ISO container when the container is taken off the road vehicle for sea carriage (that is what usually happens).
The CMR Convention does not apply to road carriage between the UK and the Republic of Ireland, nor that between the UK and Jersey. Hague Visby Rules: The Hague Visby Rules for Sea Carriage enacted by the Carriage of Goods by Sea Act 1971. This International Convention applies compulsorily only when a bill of lading or equivalent document is issued by the carrier (not a certificate of shipment or sea waybill because sea waybills are not bills of lading under Article 1(b) of the Hague-Visby Rules as found in the case of the Rafaela S [2005] ). There is a small exception to this where it is possible for the rules to apply compulsorily when sea waybills are issued when the contract of carriage requires bills of lading to be issued or allows the customer to demand the issue of bills of lading and no bills of lading are issued. (Kyokuyo Co Ltd v AP Møller-Maersk A/S (Maersk Tangier) [2018]) . It also applies compulsorily only to the time when the goods are loaded onto a ship until they are discharged from a ship (‘tackle to tackle’). Thus, for multimodal carriage by container, they apply compulsorily only to the ‘sea leg’. The Hague Visby Rules apply to international sea carriage when the port of shipment is in the UK. Several other countries have adopted the Hague Visby Rules of 1968 but other countries apply the Hague Rules of 1924 or the Hamburg Rules of 1978, or variants of those rules. All these rules can apply to imports into the UK, depending on the country of shipment. The Montreal Convention 1999 for International Air Carriage. The main UK legislation for this Convention is the Carriage by Air Act 1961, as amended by the
“ The CMR Convention does apply to road carriage to or from a country that is a party to the CMR Convention. Most
European countries
are a party to the CMR Convention.
22 | June 2023
www.bifa.org
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