Robert Keen’s Column
BIFAlink
www.bifa.org
Entering stage two of Brexit changes
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
One year ago, the freight and logistics sector faced one of the most significant changes to its operations in many years with Brexit heralding fundamental changes in the conduct of EU-GB trade. Twelve months on, we have entered stage two of the phased approach, with the introduction of full Customs control on goods moving between the EU and Britain, which has added to the list of additional declarations and increased the amount of supporting paperwork required. As I wrote this column in mid-January, I think it would be fair to say that however ready BIFA Members were, the new system, and some shippers and carriers, were not; administrative problems brought GVMS issues on day one, causing some congestion, delays and a need for Inland Border Facilities to be utilised.
Web site: www.bifa.org E-mail: bifa@bifa.org
(A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363) Director General Robert Keen r.keen@bifa.org Executive Director Robert Windsor, Policy & Compliance – Surface & Legal
Coincidentally, I have been reading an interesting report issued recently by the consulting firm AECOM. ‘Freight Matters’ examines how the COVID-19 pandemic and the effects of EU Exit are influencing the development of the industry. Our sector has remained in the spotlight throughout 2021 and has been seen as proactive despite driver shortages and the so-called UK fuel crisis. With COVID-19, the report considers that rather than looking to a return to pre-pandemic normality, there are potential opportunities that the pandemic has opened up. The message from BIFA has not changed. In situations such as this, the advantages of using a freight forwarder become more pronounced. With a sole provider handling the goods’ preparation, documentation and transport from door-to-door, the process is seamless and gives the customer greater visibility throughout the shipment. It also alleviates the administrative burden on the customer and, in many cases, can even expedite the shipment where the provider has Authorised Economic Operator full (AEOF) and/or ‘Clearance on Wheels’ status. BIFA has said consistently that our Members will always step up and find ways of keeping goods moving; the headlines that Christmas would be cancelled may have grabbed attention but were proved premature. With EU Exit still dominating political activity, and with the likelihood this will continue for some time, the changing patterns of trade will continue to affect supply chains. The AECOM report concludes that there are many questions remaining unanswered regarding the future of freight and logistics in the UK and calls for a national freight strategy that helps to put in place the required infrastructure. Hopefully, policymakers will provide this, and the skills support needed for the vital role that our Members play Currently the BIFA Policy and Compliance team is ‘locking horns’ with the Department for Transport over the state of competition within the deepsea container shipping market. BIFA members are concerned that certain practices undertaken by the principal shipping lines, as well as easements and exemptions provided to them under competition law, are distorting the operations of the free market to the detriment of international trade. We have expressed your concerns to Robert Courts MP, Under Secretary of State for Transport at the Department for Transport. The well-documented chaos within the container shipping sector is leading to commercial power becoming increasingly concentrated, resulting in diminished market choice and competition, and distorted market conditions. In 2015, there were 27 major container shipping lines carrying global containerised trade, with the largest having a 15.3% market share. Today, there are 15 shipping lines, organised into three major alliances carrying that trade, with some analysts observing that the market share of a single alliance on certain key routes could be over 40%. The pandemic has highlighted and accelerated this development, which has also contributed to dreadful service levels and hugely inflated rates, with carriers allocating vessels to the most profitable routes with little regard to the needs of their customers. See pages 16-17 and keep reading BIFAlink to follow our representational activity on your behalf. As you read this, some of you will have had the opportunity to attend our Freight Service Awards luncheon, meeting in person to celebrate excellence across the freight forwarding industry, in an awards scheme that is now in its 33rd year and is justifiably regarded as the most prestigious in the sector. Once again, we were delighted with the range of entries received from BIFA Members that managed to take the time to document their achievements while continuing to manage their businesses through incredibly trying times, which is a testament to their tenacity. See pages 10-13 for a full run-down of the event. All awards entries demonstrated a clear understanding of overcoming last minute challenges to achieve success, which is something I suspect will characterise the year ahead.
r.windsor@bifa.org Executive Director Spencer Stevenson s.stevenson@bifa.org Executive Director Carl Hobbis c.hobbis@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Communications Manager Natalie Pitts n.pitts@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org
Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors
Robert Keen, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Nezda Leigh Note to media: If you wish to use items in this magazine that are older than one month, please contact the editor to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.
Robert Keen Director General
February 2022
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