BIFAlink
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BIFAlink
February 2014 www.bifa.org BIFAlink Issue: 280 The magazine of the British International Freight Association BIFA celebrates silver jubilee awards See pages 10-13 INSIDE 7: News Automated Customs clearance project launched 8: Legal Eagle Know you Standard Trading Conditions – clauses 13 and 14 14: Trade Services The Vine Report on the Border Force 16: Trade Services Supply-chain cyber risks continue to multiply See your business transformed Over the past three years you’ve looked hard at every aspect of your business – except VRIWZDUH,W¶VWLPHWRORRNDW\RXUV\VWHPVIRUVDOHVRSHUDWLRQVDQG¿QDQFH V RIWZDUH,W¶VWLPHWRORRNDW\RXUV\VWHPVIRUVDOHVRSHUDWLRQVDQG¿QDQFH s time to see if there’ s an easier, easierr,, lower cost way to do everything verything better r.. It’s there’s better. It’ It’ ’s time to look at Azyra. It’s Marketing | Operations | Customs Financials | Business Intelligence Forwarding | Logistics | Transport Transport | W Warehousing arehousing a Cross Docking | Barcoding | Scanning Customer Orders | Purchase Orders Online Web Web Service | EDI Document Imaging | Electronic Filing | 0 0LFURVRIW2I¿FH LFURVRIW2I¿FH Multi-Currency | Multi-Company | Multi-Country Microsoft SQL Server Logistics and Freight System www.AzyraSystems.com www w.AzyraSystems.com .AzyraSys www.bifa.org BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 Fax: 020 8890 5546 Web site: www.bifa.org E-mail: [email protected] A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363 Director General Peter Quantrill [email protected] Executive Director Robert Keen [email protected] Director Trade Services John O’Connell [email protected] Manager Trade Services Robert Windsor [email protected] Member Relationship & Information Manager Spencer Stevenson [email protected] Editorial Co-ordinator Sharon Hammond [email protected] Administration Controller Jane Robinson [email protected] Published by Park Lane Publishing [email protected] Contributors Peter Quantrill, Robert Keen, John O’Connell, Robert Windsor, Spencer Stevenson, Sharon Hammond Regional Representatives Jim McCall - [email protected] Scotland Paul Young [email protected] North West, Midlands & Northern Ireland Geoff Stark [email protected] North East (Humber, West Yorkshire) Colin Young [email protected] South (London West, Solent, SW England & S Wales) Nigel Peall – [email protected] South East (London East, Dover, Felixstowe, Rochester) Subscription rates: UK £38 Rest of the World £50 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. Peter Quantrill’s Column BIFAlink MINTs – stars of the future Just over 10 years after he invented the ‘BRIC’ acronym, Jim O’Neill, former chief economist and head of asset management at Goldman Sachs, has taken to looking at four frontier economies that over the next decade could develop into global stars. In a four-part radio documentary produced by BBC World Service last month, O’Neill shone a light on Mexico, Indonesia, Nigeria and Turkey (the MINTs), identifying them as countries with the necessary building blocks to encourage strong, long-term economic growth – similar to Brazil, Russia, India and China (the BRIC) countries he identified in 2001. O’Neill pointed out a number of special characteristics that the MINTs enjoy, such as: young populations of working age; advantageous geographical positions; political softening and reforms; and infrastructure and energy generation improvements, among other criteria. The investments that will be associated with those characteristics should provide a fillip for international trade and bring benefits for BIFA Members already active in those markets, or planning to be so. Meanwhile, closer to home, with the health of the UK economy steadily improving, there have been a few items of good news that should help to boost confidence in the freight forwarding and logistics sector. The automotive sector is having an excellent time, with UK car production reaching a six-year high and car sales also at their highest levels since 2007. Interest rates look set to remain low for 2014, and wages are expected to rise at a slightly higher rate than inflation. Provided the country maintains a high productivity rate, then the wage rise should not affect inflation. In the Eurozone, the previously perilous economies of Greece, the Republic of Ireland and Portugal are now looking less of a potential disaster than 12 months ago, although the spotlight has turned to France, where the prognosis for 2014 is not looking great. Useful content February’s BIFAlink includes useful and instructive information on various aspects of the freight forwarding industry that may affect many BIFA Members in their daily business. On page 7, we take a look at how HM Revenue and Customs (HMRC) and the Department for Environment Food and Rural Affairs (Defra) are leading a cross-government project which will see the existing Automatic Licence Verification System (ALVS) for horticultural and plant products extended to cover third country imports that are recorded on the EU TRACES (Trade Control and Expert system). We study the Vine report on Border Force activities on page 14 and conclude that the report is a step in the right direction. Meanwhile on page 16 we reproduce a fascinating TT Club insight into how supply chains are open to ever-increasing cyber risks. A comprehensive review of the current situation in regards to current EU and US sanctions against Iran is provided on page 18 – a must-read for any Members doing business with that market. In the article on page 6, we provide some guidance on the drawing up of logistics contracts, which is becoming an ever-increasing requirement for shippers when negotiating detailed contracts covering their business with both shipping lines and freight forwarders. Having omitted an article last month on the BIFA STC, we consolidate two clauses into one this month and focus on clauses 13 and 14. Freight Service Awards 2013 The BIFA Freight Service Awards ceremony takes pride of place in this issue and I encourage you to take a look at the comprehensive review and great pictures from the Brewery that appear on pages 10-13. Of course, this year the Awards celebrated their silver jubilee and judging by the well-attended presentation ceremony and luncheon in January, they really are now fully established as a benchmark of quality for the British freight forwarding industry. I applaud every company and individual that took the trouble to enter the competition, and congratulate the eight corporate members, which have made their own notable achievements by winning our 2013 awards, as well as Phoebe Rockwood of Damco UK, who was named Young Freight Forwarder of the Year. Peter Quantrill, Director General February 2014 3 BIFAlink www.bifa.org News Desk Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business Channel ferries inquiry jurisdiction to be reviewed IN BUSINESS Eurotunnel and the British mobile telephone operators EE and Vodafone have signed a 10-year agreement to offer mobile services in the Channel Tunnel allowing Le Shuttle customers, including freight drivers, to use their mobile phones or tablet devices at any point on the journey through the Channel Tunnel. ON THE OCEAN The Competition Commission is to reconsider the issue of jurisdiction in its inquiry into Groupe Eurotunnel’s acquisition of three ferries and other assets from former ferry operator SeaFrance. Maersk Line has brought back to life an old maritime name – SeaLand – as a regional container shipping company serving the intraAmericas market. Japan’s version of the 24-hour advanced manifest rule for containerised cargo shipments will come into effect on March 8. It will require advance submission of shipping details for security screening prior to loading of cargo on board the vessel at origin. PORTSIDE The Port of Dover has posted its best year-end traffic figures for freight vehicles since 2009, recording a 13% rise in 2013 when it handled 2,206,728 freight vehicles. The first UK feeder service has operated from the new London Gateway port with BG Freight Line’s Cetus J calling at DP World’s London Gateway before making its scheduled visit to Teesport in northeast England in late December. Doug Morrison, the Southampton port director who retired in December 2013, was awarded an OBE in the New Year’s Honours list in recognition of a lifetime devoted to working in the UK’s ports. DONG Energy has signed an agreement with Associated British Ports to locate its permanent operations and maintenance base on the Royal Dock in Grimsby. The 4 London’s Heathrow Airport will have to cap its charges to airlines from April 2014 at a lower-than-expected 1.5 % below inflation, under a final ruling from the industry regulator. Optimism among London’s businesses about the economy has jumped to 69%, up from 56% last quarter, and is now at its highest level since the end of 2010, according to latest CBI/KPMG London Business Survey. Eurotunnel set up the MyFerryLink business in 2012 employing mainly former SeaFrance staff. facility will become the home of the Westermost Rough Offshore Wind Farm operations and maintenance team for the next 25 years. OVERLAND A succession of tumultuous storms tested the UK rail industry’s resilience during a difficult period at the start of the year which saw punctuality on the railways fall to 83.7% between 8 December 2013 and 4 January 2014, compared with 88.3% for the same period 12 months earlier. The railway dealt with almost 400 downed trees, almost 130 floods and 29 landslips, some blocking major routes over the period. A vital part of the Ipswich rail chord project, which will provide more freight capacity, was delivered over the Christmas break as Network Rail, working with contractors, successfully demolished the old steel bridge over the River Gipping, replacing it with a new steel deck bridge at the start of the new junction for the chord. A 50 mph HGV speed limit trial will be introduced on the A9 by the Scottish government in line with the installation of average speed cameras on a stretch between Perth and Inverness. Currently HGVs over 7.5 tonnes are limited to 40 mph on single carriageway sections of the A9. The trial will last for 36 months. The Federation of Small Businesses in Wales has called for an immediate cut in Severn Crossings tolls once the bridges pass into public hands. Six EU transport ministers are calling for tighter rules on cabotage in road haulage. French transport minister Frédéric Cuvillier has written to the European Commissioner for Transport, Siim Kallas, demanding that he quickly takes measures to address infringements of cabotage regulations in the road haulage sector. IN THE AIR The International Air Transport Association (IATA) has released figures showing a 6.1% growth in demand (in freight tonne kilometres or FTK) for air freight in November 2013 compared with the same month in the previous year. The latest survey of IoD members shows that 87% expect UK GDP growth to be higher in 2014 than in 2013, with 74% predicting higher revenue in 2014, 58% higher profitability, 41% a higher level of business investment and 41% higher employment in their organisations. The Panama Canal Authority and a consortium of international companies overseeing a multibillion-dollar construction project to widen the canal have been at loggerheads over building costs, threatening to delay the planned October 2014 re-opening of the widened waterway. PEOPLE In the New Year Honours list, Martin Johnson, managing director of BIFA Member Quality Freight Services, Leeds, was awarded an MBE for services to business. It is with the sadness that we report the passing of John Barnett on the 8 January 2014. John was well-known as a cofounder of Wexco Airfreight – one of the earliest UK GSA companies – in 1979. February 2014 intelligent Freight Management Systems All your forwarding and logistics software in one complete package FOR YOUR BUSINESS I Multi-modal Job Booking Facility I Customer Relationship Management I Accounts Management & Reporting I Warehousing Management I e-Doc File Management Facility I Microsoft Office Integration FOR YOUR CUSTOMERS I Shipment Tracking & Milestones I Job Booking Facility I Purchase Order Creation & Tracking I Warehouse Stock Management I KPI Reporting simplifying the supply chain boxtop.net BIFAlink www.bifa.org News Desk Drawing up a logistics contract Drewry, the supply chain adviser, recently published an interesting article in its logistics executive briefing for importers and exporters (to see the article follow this link http://tinyurl.com/cundzef). The article noted an increase in shippers negotiating detailed contracts covering their business with both shipping lines and freight forwarders. So what should you do if you are asked by a customer to enter such a contract? With the increasing complexity and range of services provided by freight forwarders, BIFA has provided guidance on logistics contracts. If you go to www.bifa.org > INFORMATION > GOOD PRACTICE TOOLBOX you will find a number of guides that are designed to assist you. A Guide to Logistics Agreements is one of these and the key items to include in a contract are specified in the document. One golden rule is never to set aside any aspect of the BIFA Standard Trading Conditions (STC). There are certain contracts where you may feel you can agree to a variation, but you should ensure that your liability insurer is fully aware of the scope of activity that you undertake and will cover any risks thought applicable. The drawing up and negotiating of contracts is a specialised skill and BIFA recommends that your solicitor is consulted when you have drafted the initial agreement. It is quite common for the other party to include unreasonable demands and to add its own clauses that can negate aspects of the BIFA STC, which is where the skills of a solicitor are invaluable. A well drafted contract can be a great advantage, giving greater business certainty and sometimes removing uncertainties in common law. The risk of litigation can be reduced as liabilities and performance targets can be contractually agreed. Too often the forwarder’s customer only begins to understand aspects of liability and insurance when it is too late. Warning of fraudulent FIATA e-mails FIATA has been informed about the receipt of fraudulent e-mails in the name of FIATA advising about unpaid invoices. Please note that e-mails with the following e-mail addresses and titles are fraudulent: [email protected] or [email protected], FIATA PENDING INVOICES or any other addresses from the fiatapayments.com domain. Please do NOT answer such e-mails. In case of any doubt, contact BIFA. 6 Gordon Tutt takes over the chair of AFSS Gordon (pictured above right) has taken over from Ken Gower (left) who has been chairman of the Association of Freight Software Suppliers (AFSS) for the past eight years. AFSS, which was formed in 1993, brings together and represents nearly 30 of the leading suppliers of software to the freight and transportation industry. AFSS represents members on various working groups keeping an eye on developments that will have an impact on software development. Pearson Edexcel approves popular BTEC courses Towards the end of 2013, Pearson Edexcel Limited gave new approval to two of the popular BTEC courses developed and offered by BIFA. The courses involved are the BTEC Intermediate Award in Customs Export & Import Procedures (CM3) and the BTEC Intermediate Award in Multimodal International Freight procedures (MFT1). These courses are now approved under the Pearson SelfRegulated Framework (SRF) for industry-specific customised courses. Delivery and content of the courses remain unchanged and you can continue to be assured that both courses provide a wide-ranging and detailed look at the subjects covered, giving delegates a broad understanding of this complex industry and the confidence to deal with customers’ queries and demands. The third course, BTEC Intermediate Award in Customs Import Entry & Procedures (CM5), is scheduled for migration to the Pearson SRF towards the end of 2014. In the meantime it is business as usual. Details of course content and scheduled presentations for all three BTEC courses are available on the BIFA website at the following links: • BTEC Intermediate Award in Multimodal International Freight Procedures – www.bifa.org/content/Training.a spx#43CLink • BTEC Intermediate Award in Customs Export & Import Procedures – www.bifa.org/content/Training.a spx#18CLink • BTEC Intermediate Award in Customs Import Entry & Procedures – www.bifa.org/content/Training.a spx#19CLink February 2014 www.bifa.org News Desk BIFAlink DB Schenker and BIFA welcome students For the past few years, BIFA has assisted our German counterpart body DSLV with a UK familiarisation visit by a group of logistics students. The goal is to show the students an airport cargo terminal, pickand-pack warehouses and of course an international freight forwarder. The students are all employed in logistics roles and attend a regional college one day a week. This is a three-year course leading to a professional qualification. This year BIFA is grateful to DB Schenker for its hospitality. It gave The German students saw a comprehensive DB Schenker presentation about the industry and how varied a freight forwarder’s day can be. a comprehensive presentation of the industry and how varied a freight forwarder’s day can be. As well as a facility tour there was an uplifting talk on how to develop a career in forwarding. Many thanks to DB Schenker, especially Carl Hobbis, Kimberley York and Martin Dyson, for arranging the visit and giving up their time to assist BIFA and our friends from Germany. Automated Customs clearance project launched HM Revenue and Customs (HMRC) and the Department for Environment Food and Rural Affairs (Defra) are leading a crossgovernment project that will see the existing Automatic Licence Verification System (ALVS) for horticultural and plant products extended to cover third country imports that are recorded on the EU TRACES (Trade Control and Expert system). This change will automate the transmission of import control decisions to HMRC’s CHIEF system, thereby speeding up customs clearance for imports of live animals, products of animal origin and food not of animal origin products (which require a common entry document). Mike Peters, Defra ALVS project manager, explained: “ALVS is a messaging system that will electronically match customs entries with the results of checks carried out by animal health and port health officers. If the details match, ALVS will then transmit the release decision electronically, in real time, direct into CHIEF generating an automated customs-clearance of the consignment as long as any additional customs related checks have also been completed. “We believe this will bring added benefits for the Trade. With the introduction of ALVS, agents or importers will not have to fax copies of import documents to the National Clearance Hub and customs clearance times will reduce from more than two hours to approximately 10-15 minutes. The feedback on ALVS from agents who import horticultural goods has been very positive.” Testing of the new system is expected to take place in early 2014 with a pilot of the new process starting in May. Full takeup by agents who import live animals or animal/food products is expected from October 2014. Prior to the launch, Defra and HMRC will host a series of briefing sessions for trade at various air/seaports. For more information, visit: www.defra.gov.uk/ahvlaen/imports-exports/importing/alvs/. The Limits of Liability for Carriers By sea – Hague Visby rules (2 SDR): £1.87 per kg £624.09 per package In association with By road – CMR (8.33 SDR): £7.80 per kg Proud sponsor of the 2013 BIFA Award for Project Forwarding +44 (0) 1628 532 613 February 2014 www.peter-lole.co.uk By air – Montreal Convention (19 SDR): £17.79 per kg By air – Warsaw Convention (17 SDR): £15.91 per kg BIFA STC: (2 SDR): £1.87 per kg (The SDR rate on 14 January 2014, according to the IMF website, was 0.936128) 7 BIFAlink www.bifa.org Legal Eagle Know your BIFA Standard Trading Conditions – clauses 13 and 14 company to handle or deal with any such goods otherwise than under such prior agreement, the company shall have no liability whatsoever for or in connection with the goods, howsoever arising. As there was no article on the Standard Trading Conditions in the January 2014 edition of BIFAlink, we are consolidating two clauses here. This month’s edition of BIFAlink covers clauses 13 and 14 Comment on clause 14 The goods referred to in this clause require special attention and this clause confers the right of the BIFA Member to refuse to accept or deal with them when there is no prior agreement in writing. This clause also disclaims any liability whatsoever howsoever arising when such arrangements are not made. At common law, a carrier is responsible for all goods delivered to him unless they are dangerous. Much depends on the knowledge of the BIFA Member, the previous course of dealing and the extent to which special arrangements have to be made. CLAUSE 13 Advice and information in whatever form it may be given is provided by the company for the customer only. The customer shall indemnify the company against all loss and damage suffered as a consequence of passing such advice or information to any third party. Comment on clause 13 This clause is intended to cover the potential liability of a BIFA Member to persons other than his customer. At common law there is a duty of care in respect of the making of a negligent statement that is known or expected to be acted upon. The three criteria in respect 8 of this common law duty of care are: foreseeability of damage, proximity of relationship and the reasonableness or otherwise of imposing the duty – Hedley Byrne & Co Ltd v Heller & Partners, All ER [1963] 2 575 and Caparo Industries v Dickson & Others, All ER [1990] 1 568. This clause intends to restrict the use of advice and information so that it does not have unexpected consequences for the BIFA Member when used by persons unknown. If the advice or information given by the BIFA Member to the customer has an error or omission which causes harm or loss to the customer, the BIFA Member’s liability is limited according to Clause 26 (A) (ii). Clause 14 Without prior agreement in writing by an officer of the company so authorised, the company will not accept or deal with goods that require a special handling regarding carriage, handling or security, whether owing to their thiefattractive nature or otherwise, including but not limited to bullion, coin, precious stones, jewellery, valuables, antiques, pictures, human remains, livestock, pets and plants. Should any customer nevertheless deliver any such goods to the company, or cause the We are grateful to BIFA Legal and Insurance Policy Group member Derek O’Brien who wrote the original publication Know your Trading Conditions, which is part of the STC training course and on which this series of articles is based. February 2014 BIFAlink www.bifa.org Awards The winners: L to R Back: James Colson of Yusen Logistics (UK) (Supply Chain Management); Hugo Cabos of Damco UK (Environment); Gary Powell of OHL International (Air Freight); Rick White of Cardinal Maritime (Ocean Freight); L to R Front: Roddy Warriner of Moto Freight (Project Forwarding highly commended); Philip Knowles of James Cargo Services (Special Services); Nicky Holdcroft of Dachser (Staff Development); Chris Malyon of DSV Road (European Logistics); Phoebe Rockwood of Damco UK (Young Freight Forwarder), Rachel Morley of Spatial Global (Project Forwarding). BIFA celebrates its Silver Jubilee Awards presentation ‘Silver Jubilee’ was the theme of the Freight Service Awards 2013 competition, so it was highly appropriate that the television presenter Julia Bradbury, noted long-distance walker and BBC Countryfile presenter, was chosen to host the Awards luncheon as Countryfile also celebrated its own Silver Jubilee last year. This year DP World London Gateway kindly sponsored the celebrity host. The luncheon ceremony took place on 16 January at The Brewery in Chiswell Street, London, and was attended by over 500 guests including BIFA Members, their guests, key industry figures and members of the trade press. BIFA President Sir Peter Bottomley, MP, again welcomed guests to the ceremony and, along with Julia Bradbury, presented the 10 Event Host, Julia Bradbury (Television presenter) finalists with their certificates. To mark the 25th anniversary, a special programme, sponsored by Delamode, was distributed at the event commemorating the Awards’ 25 years and revealing every sponsor and winner’s name since the event started. Guests also enjoyed a special retrospective audio-visual presentation, sponsored by American Airlines Cargo, which looked at how the Awards and the Association had supported the freight forwarding industry over the last 25 years. Other ceremony sponsors, in addition to those already mentioned above, and to the category sponsors, were: Impatex Freight Software (ticket sponsor), MCP (certificates sponsor), Port of Antwerp (table gifts sponsor), Simpex Freight Management (luncheon wines sponsor) and Woodland Group (trophies sponsor). BIFA fully appreciates the tremendous support received at this special occasion in the event’s history. Stuart Forsyth of IAG Cargo was presented with a Special Award in recognition of the airline’s sponsorship of the Awards for the full 25 years since their inception. The BIFA Freight Service Awards 2013 winners, including the judges’ comments about why they were selected as the trophy recipients, are: General categories The Environment Award – sponsored by Red Recruit Winner – Damco UK: The judges considered that Damco UK exhibited a range of initiatives with a far-reaching scope that extended beyond its own organisation, including reporting the carbon footprint to its customers, demonstrating total transparency. Finalists – Freight Systems Express (Wales); Hellmann Worldwide Logistics; MacAndrews & Company. February 2014 www.bifa.org Awards BIFAlink THE AWARD WINNERS ENVIRONMENT AWARD: Sponsor: Caroline Seear of Red Recruit (right) Winner: Hugo Cabos of Damco UK (centre) PROJECT FORWARDING AWARD: Sponsor: Tracey Meaney of Peter Lole & Co (right) Winner: Rachel Morley of Spatial Global (centre) SPECIAL SERVICES AWARD: Sponsor: Peter Kibble of Forward Computers (right) Winner: Philip Knowles of James Cargo Services (centre) STAFF DEVELOPMENT AWARD: Sponsor: Cliff Atkinson of Albacore Systems (right) Winner: Nicky Holdcroft of Dachser (centre) SUPPLY CHAIN MANAGEMENT AWARD: Sponsor: Christopher Hewlett of BoxTop Technologies (right) Winner: James Colson of Yusen Logistics (UK) (centre) AIR FREIGHT AWARD: Sponsor: Stuart Forsyth of IAG Cargo (right) Winner: Gary Powell of OHL International (centre) EUROPEAN LOGISTICS AWARD: Sponsor: Brian Sullivan of TT Club (right) Winner: Chris Malyon of DSV Road (centre) OCEAN FREIGHT AWARD: Sponsor: Simon Clark of CargoWise (right) Winner: Rick White of Cardinal Maritime (centre) YOUNG FREIGHT FORWARDER AWARD: Sponsor: Maria Sanchez-Grant of Virgin Atlantic Cargo (right) Winner: Phoebe Rockwood of Damco UK (centre) The SPECIAL AWARD presentation to IAG Cargo for 25 years’ category sponsorship: Stuart Forsyth, IAG Cargo (centre); Becky Thurtell, BIFA Events Organiser (right) The Project Forwarding Award – sponsored by Peter Lole & Co Winner – Spatial Global: The company impressed the judges by undertaking a major project that demonstrated project forwarding at its best. It involved co-ordinating the arrival of cargo from multiple destinations to meet a fixed installation sequence with excellent planning. Highly Commended – Moto Freight. Finalists – Charles Kendall Freight; UFS. The Special Services Award – sponsored by Forward Computers Winner – James Cargo Services: The judging panel said the company submitted a concise presentation detailing an outstanding service. The unusual requirement of moving gorillas presented numerous logistical challenges which were handled and met with complete success. Finalists – ASAP Cargo (UK); Charles Kendall Freight; Interspan Freight Solutions. February 2014 Awards host Julia Bradbury is in the left of every photo 11 BIFAlink www.bifa.org Awards Peter Quantrill, BIFA Director General, ,proposes the Loyal Toast Over 500 guests at the ceremony in the Brewery’s Porter Tun Room The Staff Development Award – sponsored by Albacore Systems Winner – Dachser: The judges felt that Dachser showed outstanding commitment to staff development with numerous schemes. These included setting up its own training facility and monitoring progress every step of the way. Finalists – 512, Customs Clearance, GKN Freight Services. The Supply Chain Management Award – sponsored by BoxTop Technologies Winner – Yusen Logistics (UK): The company impressed the judges as it worked in partnership with AstraZeneca, demonstrating a thorough approach to creating solutions across a wide range of transportation modes in a demanding sector. It showed tangible financial benefits for the customer, reduced stock levels as well as shorter transit times. Finalists – Damco UK, OHL International; WS Logistics (Procurus) Modal categories The Air Freight Award – sponsored by IAG Cargo Winner – OHL International: The judges felt that OHL International described the implementation of an innovative solution in a growing UK export sector. Not only has the solution demonstrated the effective utilisation of the company’s own 12 MCP, one of the ceremony sponsors, enjoying pre-lunch drinks skills, but has also delivered service benefits to its customers. Finalists – Geodis Wilson UK; IJS Global (UK), RIF Worldwide. The European Logistics Award – sponsored by TT Club Winner – DSV Road: The company conducted research into the European marketplace to fully understand its customers’ needs and expectations. Its investment in new IT and operations enabled it to achieve greater customer satisfaction through shorter transit times, and improved accuracy of deliveries. Finalists – IJS Global (UK), MacAndrews & Company, WS Logistics (Procurus). The Ocean Freight Award – sponsored by CargoWise Winner – Cardinal Maritime: In a toughly contested category, Cardinal Maritime’s submission stood out from the other finalists due to the company’s revolutionary approach to providing full transparency. This demonstrated its utmost confidence in the overall quality of its service delivery. Finalists – Brunel Shipping (London); Estuary Logistics; Ideal International. Individual category The Young Freight Forwarder Award – sponsored by Virgin Atlantic Cargo Winner – Phoebe Rockwood of Damco UK: On graduating in 2007, Phoebe made a conscious decision to work in the international logistics industry where she gained a highly sought-after position on the AP Moller-Maersk graduate programme in the US. During her six years in forwarding Phoebe has actively managed her career with periods in China and now the UK. Finalists – Samantha Bates, OHL International; Sam Camphion, Kuehne + Nagel; Michael Keeble, Professional Freight Solutions. Besides a crystal glass trophy, the winner of the Young Freight Forwarder was also presented with a cheque for £1,000, as well as a nomination as UK candidate for the FIATA/TT Club Young International Freight Forwarder of the Year Award 2014. A full list of the BIFA Awards 2013 judging panel, and further photos from the luncheon ceremony can be found on the event website at www.bifa.org/awards If you are interested in receiving entry information, or being a sponsor for the 2014 competition or ceremony, please email the BIFA Events Office at [email protected] February 2014 BIFAlink www.bifa.org Trade Services Vine Report on the Border Force: a step in the right direction The Vine Report is a comprehensive review of Border Force activities and identifies the domestic main issues. However, it has missed some opportunities John Vine, the Independent Chief Inspector of Borders and Immigration, published his much commented-on report in November 2013 about the Border Force’s Freight Operations. BIFA welcomes both the report and the Home Office’s positive response by accepting the findings in full. Objectives “The main aim of the inspection was to inspect the efficiency and effectiveness of Border Force’s management of its freight operations at maritime and airports for imported goods.” The main issues addressed were the effectiveness of: • Border Force Freight teams in detecting illegal activity at the border. 14 • Information flows between frontline operations and targeting hubs in Border Force and HM Revenue & Customs (HMRC), • Referral process between Border Force and HMRC, • The relationship between HMRC and Border Force, and barriers that prevented operations being more efficient or effective. In one way this is a curiously restrictive set of criteria looking at UK domestic frontier activities without grasping the key international aspects of frontier management – which is the fundamental weakness of the report. The detailed report criticises management and procedural failings within the Border Force. However, the report notes the commitment and professionalism of the individual officer in performing his or her duties. BIFA can concur with the latter observation because when dealing with individual officers, particularly at the frontier, we have found them to be both helpful and pragmatic. Debate It is time that there was a sensible debate on how to better manage the frontier involving all the key stakeholders; this report is as useful a starting point as has been published to date. We do agree that correcting the issues highlighted within the report is an essential precursor to rectifying other problems. It is concerning that the Border Force referred to its customs activity as a “secondary control point”. There has been a growing view amongst our Members that the Border Force has come to regard its customs activity as being secondary to its immigration role. This is hardly surprising given the political sensitivity this subject arouses. From a freight forwarder’s perspective, the most encouraging paragraph is 5.113, which simply states: “Due to the economic importance of freight to the UK economy, it is important that Border Force interventions cause minimal disruption to daily operations at UK ports.” Whilst sending a positive message, when read in conjunction with paragraph 1.5, which states that “Border Force enjoyed a broadly positive relationship with its key stakeholder, namely port authorities”, concerns begin to emerge. The latter reference to “port authorities” is too limited a definition of the main stakeholders. February 2014 Trade Services BIFAlink that it is unnecessary to inspect all such shipments. We can think of two scenarios where this is the case: the first involves authorised economic operator (AEO) companies who are regarded as being a ‘trusted trader’ and are regularly audited by HMRC – in effect control is based on auditing. The second stems from profiles within CHIEF, particularly regarding foodstuffs, that the EU might target for inspecting a certain percentage. However, the only way to achieve this is by selecting all such goods for Route 2 but only checking a sufficient percentage to comply with EU regulations. locations. Whilst discussing communication, the Border Force’s national consultation with trade must be improved. HMRC consults with trade nationally via the Customs joint consultative committee, which meets three times a year. There are smaller specialist sub-groups that meet to discuss particular customs activities and regimes. There does not seem to be any such mechanism for Border Force to engage and consult with trade – something that needs to be resolved urgently. The Vine Report is a comprehensive review of the Border Force’s activity and identifies the domestic main issues. When successfully resolved, these will place the Force in a much better place to manage the frontier. However, their resolution must also be concurrent with an increased focus on the international aspects of the Force’s role and improved consultation with trade. These processes will have to be undertaken against a rapidly changing background caused by the implementation of the Union Customs Code and CHIEF replacement. Courtesy of the Port of Felixstowe www.bifa.org There are many parties who should be regarded as important stakeholders, including carriers and freight forwarders. In this significant aspect the report fails to fully appreciate the international nature of the Border Forces activities. Whilst agreeing that domestic issues have to be addressed and rectified, more could have been made of obtaining and using data contained in commercial transactions before cargo has been shipped or arrived in the UK. Missed opportunity In short, the report fails to grasp that the documentary frontier can be crossed long before goods ever reach these shores. Whilst highlighting the importance of accurate information in tackling criminal activity and lamenting the use of paper manifests at Heathrow for risk assessments, Vine has missed an important opportunity to point the way forward. Within the EU there are a variety of disconnected and poorly functioning IT systems that fail to deliver for both Trade and regulators. Without going into too much detail, it is essential that IT systems are better integrated and co- February 2014 ordinated to make use of the available data, allowing regulators the opportunity to conduct their riskbased assessments before cargo arrives. Having this data earlier would enhance the Border Force’s ability to make targeted interventions. The report omits to address one key question that we have repeatedly asked the Border Force for: a definition of ‘the frontier’. Many Border Force activities, such as passport control, involving passengers lend themselves to a fixed physical frontier control point. The same is often not true of freight. In particular, mixed groupage cargo is often removed from the actual port of unloading to an inland facility for inspection, as required, and final clearance and release. Such cargo is more difficult to identify at the frontier than in the location where it is finally cleared and released. To the freight forwarder, the logical place is where the goods are inspected and cleared – the Border Force probably has a different view. The report emphasises the Border Force’s failure to inspect all Route 2 consignments. Whilst the failure of 68% of all Route 2s, 98% of which were at LHR, is unacceptable, it is highly probable Communications One of the main aspects of the report is to highlight communications between the Border Force and HMRC. It is evident that in certain cases, particularly at policy level, these are successful, but at junior levels this is not always the case. In fact, some Members have actually commented that within Border Force there does not seem to be a method for policy-makers in London to communicate with their regions, leading to procedural variations between different 15 BIFAlink www.bifa.org Trade Services Supply-chain cyber risks continue to multiply The increasing sophistication of technology brings many benefits for freight forwarders – but also for thieves. This TT Club report looks at some of the latest developments Whilst technological advances undoubtedly provide greater operational efficiencies and opportunities for carriers and operators to mitigate their exposure to theft and fraud, unfortunately they are equally as beneficial to organised criminal organisations. As invasive cyber-technology becomes more widely available, the TT Club suggests that what has been observed in recent months could be a significant emerging risk to legitimate trade, exposing the operators in the supply chain to economic and commercial damage. The ingenuity of thieves and fraudsters has always surprised unsuspecting victims. The stakes are high and it is clear that the international supply chain, which by its nature facilitates movements across borders, is being targeted in order to fulfil trafficking of people and drugs, and other illegal trades, such as dumping waste, as well as intercepting valuable cargoes. Spyware infiltrations The TT Club has previously highlighted the risks associated with internet clearing sites and suchlike, but press reports recently identified another approach regarding IT-based theft. Going beyond simply misleading other operators into thinking they are dealing with a legitimate company through the use of internet-based clearance websites, it has been established that cyber criminals may access and take control of operators’ IT systems. In the last weeks a small but significant number of incidents have been reported which at first 16 This article was originally published in the November 2013 edition of TT Talk and is reproduced with permission. appeared to be petty break-ins at office facilities. The damage appeared minimal – nothing was physically removed. More thorough post-incident investigations revealed that the ‘thieves’ had actually installed spyware within the operator’s IT network. Interestingly, this involved physical installation. More typically the criminals identify targets (generally individuals) where the system cyber security is inadequate, combined with sufficient access and authority rights. As such, operational executives who may travel extensively can be particularly exposed. The type of information being sought and extracted may be release codes for containers from port and terminal facilities. However, spyware can record movements, key strokes, and even download and print documents and screen shots to an external source. In the instances discovered to date, the cyber criminals have apparently been focused on specific individual containers, taking steps to track the units through the supply chain to the destination discharge port. Once the container has arrived, the perpetrators intervene, collecting the required release data from the unsuspecting operator’s IT system, ultimately facilitating the release of the container into their custody and control. The incidents to date are thought to have been related to drug trafficking, a means of importing illegal substances through the supply chain unnoticed. Criminals are focused on emerging technologies. The use of such technologies, however, could very easily be replicated to infiltrate other areas of the supply chain, from freight forwarders through to warehouse operators. The potential scope of valuable information within the supply chain cannot be underestimated. In addition to the focused incidents experienced to date, there is scope for highly selective and targeted cargo theft, human trafficking and general disruption of the global supply chain. Disruption Generally, security efforts focus on the potential for disruption and ‘business continuity’; these recent spyware infiltrations point more to criminal leveraging to achieve darkly profitable ends. Implementing effective computer logs and ‘dashboards’ (as part of detailed operational and performance management information) may arguably be more pressing than updating and testing appropriate response plans. Driven by the necessity to become more cost effective and efficient, many of today’s national and global logistics operators are substantially reliant on IT systems to manage every section of their business from stock management and vehicle routing tools through to accounting, security and even communication systems. The value and extent of the information held increases daily to the cyber-criminal. Criminal organisations are well resourced and focused on utilising emerging technologies, not only to perpetrate crime but also to mitigate the risk of detection. The cyber-criminals’ ability to hack into email accounts and communication channels is well-established, and the risks to the logistics operator must not be ignored. For instance, if a driver received instructions to deviate from a planned delivery destination and to deliver to a nearby warehouse, from what appears to be a known and trusted source from within his own organisation, would he question it? Similarly, by accessing a warehouse operator’s stock management February 2014 www.bifa.org systems, a criminal organisation can achieve its ends by altering the logical versus actual stock levels held within a facility. Combating cyber risks The ensuing losses can give rise to very large financial exposures, let alone the commercial and reputational damage. The increased sophistication of such a ‘cyberattack’ of course makes it challenging for operators to build effective defences. However, awareness is the first step, followed by thorough risk assessment. Managements need to articulate a clear risk culture and deliberately follow through the process. February 2014 In many cases, the human element is both the strongest and weakest link in the armoury – the potential for individual or contractor malfeasance may be thoroughly mitigated by others’ alertness, thorough training and effective procedures (such as segregation of duties and ‘whistle-blowing’). Vigilance and due diligence in day-to-day operations – the more physical side – are clearly vital, together with general security of IT installations. However, it would also be wise for operators to investigate the means of a greater degree of protection from and detection of hacking and spyware activity. When reviewing IT systems, the Trade Services BIFAlink 2013/2014 Global Fraud Report issued by Kroll identifies two key questions to consider: • If you discover that your systems have been compromised, does your system have the facility to trace and identify what was viewed, modified or taken? • What would be the potential commercial impact on your business if it became known to your clients that such information had been accessed through your IT systems? Equally, removing single system dependencies, such as implementing bifurcated messaging through different devices, and controlling information release by GPS mapping, have been shown to foil infiltration. Security in the supply chain is no longer ‘simply’ about the use of locks, alarms and tracking systems. Organised crime has spawned new risks. For those who need to consider this topic further, the Kroll report provides a thorough global overview, with many comments applicable to those involved in transport and logistics. Additionally, the TT Club’s handbook ‘Supply Chain Security – Management, Initiatives and Technologies, is a useful contextual reference. BIFA is grateful to the TT Club for permission to reproduce this article. 17 BIFAlink www.bifa.org Legal Eagle EU and US sanctions against Iran Daniel Martin of solicitors Holman Fenwick Willan takes a broad look at sanctions against Iran and explains how they impact on freight forwarders. This article also recently appeared in TT Talk Despite significant political, legislative and judicial developments since Hassan Rouhani was elected President of Iran, the current EU and US sanctions against Iran remain by far the most onerous. Where sanctions in general are complex and require close attention, any business engaging in any trade that has any connection with Iran has to pay particular attention to the onerous restrictions and recognise the significant ‘teeth’ behind the political positioning. History The EU sanctions against Iran were first imposed in 2007. In 2010, further measures added prohibitions and yet more restrictions were imposed in March 2012. Again the measures were extended in December 2012. The list of asset freeze targets was expanded in parallel throughout 2011, 2012 and 2013 with the result that the asset freeze list currently includes over 100 individuals and almost 500 entities. The US has kept pace with expanding EU sanctions against Iran and has even tended to adopt more onerous restrictions than the EU. US domestic measures effectively amount to a complete prohibition on trade between US and Iranian persons other than certain licensed trades, such as foodstuffs, medical supplies and humanitarian aid to Iran. The US domestic measures will of course apply to US transport operators, but they will also impact indirectly on non-US transport 18 operators where the company is owned or controlled by a US company, where it employs US nationals as directors, or where it makes US dollar payments. Legislation In addition to domestic measures, the US has passed numerous pieces of sanctions legislation that have extra-territorial effect, including the Comprehensive Iran Sanctions, Accountability & Divestment Act 2010 (CISADA), the Iran Threat Reduction & Syria Human Rights Act 2012 (TRA) and the Iran Freedom and CounterProliferation Act of 2012 (IFCA). These sanctions affect companies worldwide because of the nature of the penalties for breaching the sanctions, the most significant of which is likely to be exclusion from the US banking system (which in turn would mean that the company could not make or receive any US dollar payments). US regulators have aggressively enforced the sanctions against Iran, with substantial fines imposed against banks including Standard Chartered, which agreed to pay USD327 million in fines in December 2012. Compliance In order to ensure compliance with international trade sanctions, a transport operator which engages in any trade that has any connection with Iran needs to check carefully the identity of its counterparties (as well as any other party involved in the transaction, such as port agents and port operators) to ensure that they are not included on any sanctions list, such as the US SDN List. Content Transport operators also need to obtain information from their customer about the precise cargo that is being carried, as well as the intended receiver (and ultimate end user), so that they can check that neither the cargo nor the cargo interest are subject to any restrictions. Transport operators need to consider whether their existing contractual warranties give them adequate protection against the risk that their counterparty is a sanctioned entity, or is trading with sanctioned entities, or is asking them to carry prohibited goods. Suitable warranties are not commonly found in standard trading conditions, nor international carriage regimes; transport operators may need to seek legal advice on suitable additional terms to include in their contracts and ensure that they are effectively incorporated. If the transport operator is persuaded to engage in legitimate, permitted trade with Iran, such as cargoes of foodstuffs or humanitarian aid to non-designated persons, he should liaise closely with his bank and his insurers to check that all necessary payments can be made, that he will have insurance cover for the voyage, and that, in the event that security February 2014 www.bifa.org Legal Eagle needs to be put up or claims paid, this can be done. Banks and insurers will commonly require detailed evidence that there is no risk of a sanctions violation. impact on their business should take legal advice. However, the following websites contain current and, generally, clear guidance on this intricate aspect of international trade: Further information: Modern supply chains are themselves complex and anyone who suspects that sanctions may US www.treasury.gov/resource-center/sanctions/Programs/Pages/ Programs.aspx Support your local member group BIFA holds regional member meetings around the UK and here are some due to occur soon. If you would like to attend and find out more about BIFA and what we do, why not contact your regional representative. Full contact details are on the BIFA website www.bifa.org in the Contacts section. All BIFA members are entitled and encouraged to attend their regional meetings. However prebooking is essential. Contact your BIFA regional representative at www.bifa.org >Contacts February 2014 BIFAlink UK www.gov.uk/sanctions-embargoesand-restrictions We gratefully acknowledge the assistance in the preparation of this article of Daniel Martin of Holman Fenwick Willan LLP and Peregrine Storrs Fox of the TT Club. Region Date Time Venue BIFA Contact Solent Regional Members’ meeting London East Regional Members’ meeting Anglia Regional Members’ meeting Manchester Regional Members’ meeting Midlands Regional Members’ meeting Liverpool Regional Members’ meeting Stansted Regional Member’s meeting Heathrow Regional Members’ meeting Northern Ireland Regional Members’ meeting Gatwick Regional Members’ meeting Tue 11 Feb 0800 Duke of Wellington Colin Young Tue 18 Feb 1400 DP World London Gateway Nigel Peall Wed 19 Feb 1000 Holiday Inn Ipswich-Orwell Nigel Peall Wed 12 Mar 1030 MAG, Manchester Airport Paul Young Thu 13 Mar 1030 MAG, East Midlands Airport Paul Young Tue 18 Mar 1030 Paul Young Tue 18 Mar 1130 Liverpool Chamber of Commerce LSC, Stansted Colin Young Thu 20 Mar 1400 Redfern House, Feltham Colin Young Thu 20 Mar 1030 Paul Young Thu 27 Mar 1230 Mission to Seafarers, Belfast Timberham House, Gatwick Colin Young 19 BIFAlink www.bifa.org Training Training courses: February-May 2014 AVIATION SECURITY Air Cargo Security Level A – General Awareness * Check www.bifa.org for additional dates scheduled to meet demand * Feltham, West London 10 February 11 February North West England Feltham, West London 18 February Feltham, West London 26 February 3 March Midlands 6 March Feltham, West London Feltham, West London 17 March Feltham, West London 24 March 8 April Scotland Air Cargo Security Level B - Drivers As Level A – General Awareness Air Cargo Security Level D – Handling & Preparation of Air Cargo As Level A – General Awareness Air Cargo Security Level E – Screening of Air Cargo Screening by physical examination only, x-ray training not included 11-12 February North West England Feltham, West London 19-20 February Midlands 3-4 March 24-25 March Feltham, West London 8-9 April Scotland Feltham, West London 27-28 May Air Cargo Security Level F – Security Supervisor As Level E – Screening of Air Cargo Air Cargo Security Level G – Security Manager As Level E – Screening of Air Cargo Air Cargo Security – Refresher Levels A and B 3 February Feltham, West London 5 March Feltham, West London 7 April Feltham, West London 8 May Feltham, West London Air Cargo Security – Refresher Levels D and E 13 February Feltham, West London 11 March Feltham, West London 10 Apr Feltham, West London 12 May Feltham, West London Air Cargo Security – Refresher Levels F and G 27 February Feltham, West London 27 March Feltham, West London 28 April Feltham, West London 29 May Feltham, West London Aviation Security Cargo X-Ray Operator Available as an in-house course, contact BIFA to schedule a date Aviation Security NXCT NB – test session only – no training takes place 24 February Feltham, West London 20 March Feltham, West London 16 April 15 May Feltham, West London Feltham, West London Known Consignor Air Cargo Security 17 February Feltham, West London 15 April Feltham, West London CUSTOMS PROCEDURES Customs Procedures for Export Cargo (CM1) Feltham, West London 3 March South West England 18 March 14 May Feltham, West London Customs Procedures for Import Cargo (CM2) Feltham, West London 4 March 19 March South West England 15 May Feltham, West London BTEC Intermediate Award in Customs Export & Import Procedures (CM3) Midlands area 1, 8, 15, 29 Apr and 13 May 22, 29 May, 5, 19 Jun & 3 Jul Feltham, West London BTEC Intermediate Award in Customs Import Entry & Procedures (CM5) 2, 9, 23, 30 Apr and 14 May North West England DANGEROUS GOODS Dangerous Goods by Air (DGA1) 10-12 February Feltham, West London 24-26 February Manchester 3-5 March Bournemouth 3-5 March Feltham, West London 10-12 March Birmingham 17-19 March Bristol 31 Mar – 2 Apr Feltham, West London 28-30 April Newcastle 28-30 April Feltham, West London 12-14 May Birmingham 12-14 May Manchester 19-21 May Feltham, West London Dangerous Goods by Air – Revalidation (DGA2) 13-14 February Feltham, West London 27-28 February Manchester 6-7 March Bournemouth 6-7 March Feltham, West London 13-14 March Birmingham 20-21 March Bristol 3-4 April Feltham, West London 29-30 April Newcastle 1-2 May Feltham, West London 15-16 May Birmingham 15-16 May Manchester 22-23 May Feltham, West London course (DGR1) Dangerous Goods by Sea (DGS1) Mancehster 6-7 March 20-21 March Birmingham 24-25 March Glasgow Feltham, West London 10-11 April Dangerous Goods Safety Adviser (DGSA) Feltham, West London 24-28 February Manchester 24-28 February Radioactive Goods by Air (DGA3) See www.bifa.org for future presentations Radioactive Goods by Air – Revalidation (DGA4) See www.bifa.org for future presentations Infectious Substances by Air (DGA5) 6 February *** NEW COURSE *** Carriage of Lithium Batteries See www.bifa.org for booking options Feltham, West London 3-4 February *** NEW COURSE *** Excepted & Limited Quantities by Air Road and Sea See www.bifa.org for booking options 5-6 February Feltham, West London FREIGHT FORWARDING AND INTERNATIONAL TRADE Exports for Beginners (EXP1) 31 March Feltham, West London 20 May Scotland Imports for Beginners (IMP1) 1 April 21 May Feltham, West London Scotland Introduction to Air Cargo (AC1) 17-21 March Feltham, West London BTEC Intermediate Award in Multimodal International Freight Procedures (MFT1) 11, 18, 25 Feb and 11, 25 Mar North West England 29 Apr, 6, 13, 27 May and 17 JunFeltham, West London Multimodal International Freight Procedures 2 (MFT2) Two-day optional add-on to MFT1 See www.bifa.org for future presentations Sea Freight: The Basics (SF1) 12 March North West England 30 April Feltham, West London 1 May London East Dangerous Goods by Road (DGR1) 3-5 March Manchester 17-19 March Birmingham 7-9 April Feltham, West London Introduction to Letters of Credit 19 May Feltham, West London Dangerous Goods by Road – Revalidation (DGR2) Days 2 and 3 of the above Dangerous Goods by Road Emergency First Aid – Appointed Person (FA1) 24 February Feltham, West London HEALTH AND SAFETY To view course content or to make a booking, go to www.bifa.org and click on training BIFA is a member of: Heathrow area
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