September 2015
Transcription
September 2015
September 2015 www.bifa.org BIFAlink Issue: 299 The magazine of the British International Freight Association Container weighing: Are you ready? – See pages 10-11 INSIDE 6: News New Alternative Dispute Resolution rules set to come into effect 8: Legal Good practice: A guide to agency agreements 9: Policy & Compliance New warning issued to airlines on lithium batteries 18: Events Last chance to enter Freight Service Awards 2015 Follow us @BIFA 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 Robert Keen [email protected] Policy & Compliance Manager Robert Windsor [email protected] Policy & Compliance Advisor Mike Jones [email protected] Member Services 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 Robert Keen, Robert Windsor, Mike Jones, Spencer Stevenson, Sharon Hammond, Becky Thurtell Regional Consultants to BIFA Jim McCall - [email protected] Scotland Paul Young [email protected] North West, Midlands & Northern Ireland Geoff Stark [email protected] North East (Humber, Yorkshire, Tyne Tees) Colin Young [email protected] South (London West, Solent, SW England & S Wales) Paul Newman – [email protected] London East, Anglia, South East Subscription rates: UK £40 Rest of the World £52 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. September 2015 Robert Keen’s Column BIFAlink National event for BIFA Members Having been Director General for a year now, I thought I should be honest and refresh my thumbnail photograph. Those of you who have seen me in the past few years may have thought that I was somewhat vain as the image you have been seeing for the past 12 months was taken well over 10 years ago. Rather than be like the youthful images of actors you see in a theatre programme, here is the up to date me. And what a year it has been. Membership has continued to grow and, as I write, we are at an all-time high. Our influence with government departments and nongovernment organisations has spread together with a higher media profile. The downside of this is that I am often on the receiving end of telephone calls at the weekend from BBC or CNN researchers regarding Calais. However, I am really pleased that more and more news organisations are approaching us for our views. I am not going to rant on about Calais as I have done in previous issues except to say that the position is blindingly obvious and we keep telling our government contacts and the immigration minister that coherent action is needed rather than the muddled efforts we have been witnessing until now. Whilst our hallmark event is the BIFA Awards luncheon every January, some of you will remember that we used to stage a National Conference. These grand events gave way to shorter more focused gatherings and we have not held a formal event for many years. The last such occasion was in June 2007 at the Institute of Directors in London and was titled Security without Barriers to Trade. We brought together HM Revenue & Customs (HMRC), traders and forwarders, with the Secure Supply Chain and the Authorised Economic Operator being key subjects discussed. I think it is about time we got our Members and Customs together again with other appropriate stakeholders, so please put Thursday 26 November in your diaries. The venue will be One Great George Street in Westminster and the key topics will be Changes in Customs Legislation Emerging from the Introduction of the Union Customs Code in May 2016, Becoming an AEO, and Container Weight Verification. We are already delivering regional briefings on the expected outcomes of the UCC but in November you will have the opportunity to hear from HMRC and BIFA on the changes planned in a superb surrounding for networking with key people. After Customs we are planning a session on Container Weight Verification, bringing you the most up-to-date information of the new procedures that become law in July 2016. Watch out for our mailings and other publicity material heading your way soon. September sees the annual FIATA Congress and this year BIFA will be centre stage with our Young Freight Forwarder finalist in the international competition. Fingers crossed that Jeni Taylor of Santova Logistics is the global winner. Our influence in FIATA has grown in the past few years. We have our Immediate Past Chairman, Steve Parker, as a voted member of the FIATA Board and he also plays a prominent role in its Customs Institute. I am Chairman of the FIATA Multimodal Transport Institute, with the working groups for Sea, Road and Rail reporting to me. BIFA Director Mark Bromley of Allways International is a key member of the Road Group. Finally, Mike Jones represents BIFA’s Air interests, being a member of the FIATA Air Freight Institute, so we are present in all of the policy-making bodies, and the UK is looked to as an area of expertise. Many thanks to the BIFA Members I visited in August for their hospitality and interesting discussions. I have been challenged to present a webinar by Unsworth Global Logistics who assure me they will look after the technical stuff if I pick a topic to deliver, so watch out for details of me coming soon on a PC near you! Robert Keen Director General 3 BIFAlink www.bifa.org News Desk Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business Grangemouth to boost reefer box capacity PORTSIDE The port of Grangemouth is to receive a six-figure investment to increase its capacity for refrigerated containers in a move that will be a major boost for importers and exporters of fresh produce using Scotland’s largest container terminal. In anticipation of the arrival of five of the world’s largest cranes at the port of Liverpool in the autumn, Peel Ports has introduced a stateof-the-art ‘virtual’ training simulator on site, designed to ensure all operators are ready to manoeuvre the giant structures from day one of installation. ON THE OCEAN Drewry Maritime Research reports that the drop in the dry bulk market caused by the slowdown in Chinese demand is likely to be mirrored by the container market, but not as strongly. With Greater China responsible for approximately 30% of all container moves in the world, the direction of the Chinese economy has a huge bearing on world container shipping growth. Drewry estimates that China container imports grew by only 1.6% last year, whereas exports rose by 9.1%. The latest WTO data suggests that China’s merchandise imports were down by 15.5% in the first six months of 2015, whereas SIMPEX express ONLINE CALCULATOR AN EASY-TO-USE CALCULATOR FOR EUROPEAN EXPRESS CARGO WWW.SIMPEX-EXPRESS.COM 115 UK COLLECTION POSTCODES • 15 EUROPEAN COUNTRIES 1-4 PALLETS • 2 EXPRESS TRANSIT TIMES 1 PALLET £320 2 DAYS 2PALLETS £325 3 DAYS 1 PALLET £190 1 DAY 1 PALLET £290 2 DAYS 2PALLETS £485 2 DAYS 1 PALLET 1 PALLET £380 2 DAYS £420 2 DAYS 3PALLETS £640 3 DAYS Cross-Channel disruptions to freight traffic this summer, triggered by the migrant crisis in Calais and a spate of industrial action by French ferry workers, have led to a major rise in haulage companies turning to North Sea ports on the east coast of England for transport to mainland Europe, say shipping lines. OVERLAND PD Stirling said the Scottish government has approved plans for an international rail freight terminal in Mossend, Bellshill, in North Lanarkshire. The company will be expanding its existing operations at Bellshill to create its Mosshead International Rail Freight Park. A Quality Charter for international road haulage operations has been approved by the Transport Ministers of the International Transport Forum (ITF) European member countries. It establishes qualification standards for companies, managers and drivers and will enter into force on 1January 2016. One year after the announcement of a development programme, Egypt’s expanded Suez Canal is open for business with the new 23-mile parallel channel allowing two-way traffic and reduced waiting times. Suez Canal Authority projections that average daily vessel transits will double by 2023 to 97 vessels and more than double revenue to USD13.2 billion within 10 years are unlikely, according to the latest analysis by Drewry. 2PALLETS £565 3 DAYS VISIT WWW.SIMPEX-EXPRESS.COM OR CALL 0121 782 4444 FOR A DEMONSTRATION 4 merchandise exports managed a 1% rise. IN THE AIR The recent half year report from IATA is not encouraging. Global air freight markets recorded a slowdown in growth in June. Air freight volumes measured in freight tonne kilometres rose just 1.2% compared with a year ago. Regional performance varied widely. AsiaPacific, North American and Latin American carriers reported year-onyear declines (-0.3%, -3.3%, and -1.6% respectively), while European carriers reported that markets were flat. This was offset by the strong performance of Middle Eastern (+15.3%) and African (+6.7%) carriers to keep growth in positive territory. The general trend of a weaker 2015 compared with 2014 can be seen in the half-year data. Air freight markets expanded by 5.8% in 2014; however year-to-date growth for 2015 stands at 3.5%. TIACA has launched a new website with added benefits for members including an industry scorecard to help with the drive towards e-freight. The new site includes a range of features such as improved networking opportunities, while the industry scorecard highlights some of the key benefits and challenges for various e-commerce initiatives. Virgin Atlantic Cargo has welcomed the latest moves by other airlines to ban the carriage of hunting trophies and says it is time for the air cargo industry to adopt a strict ethical policy to clearly identify shipments not acceptable for carriage. IN BUSINESS The continuing disruption British businesses face from the Calais crisis highlights the need for strong risk strategies, said Nick Miller, head of FMCG at global supply chain consultancy Crimson & Co. In light of this, Miller urged all businesses to carry out a thorough review of their risks strategies in order to avoid future disruptions. Mega mergers have been on the agenda this summer with talk of one being planned between shipping conglomerates Cosco Group and China Shipping Group, followed by the news of another between Konecranes and Terex Corporation. September 2015 simplifying the supply chain FOR YOUR BUSINESS nFOR Multi-modal Job Booking Facility FOR YOUR BUSINESS YOUR CUSTOMERS I Multi-modal Job Booking Facility nI Customer Relationship Management Shipment Tracking & Milestones I Customer Relationship Management nI Accounts Management & Reporting Job Booking Facility I Accounts Management & Reporting nI Warehousing Management Purchase Order Creation & Tracking I Warehousing Management nI e-Doc FileStock Management Facility Warehouse Management I e-Doc File Management Facility nI Microsoft Office Integration KPI Reporting I Microsoft Office Integration FOR YOUR CUSTOMERS n Shipment Tracking & Milestones b oxtop . net BIFAlink www.bifa.org News Desk New Alternative Dispute Resolution comes into effect From October 2015, the business information requirements for the EU Alternative Dispute Resolution (ADR) Directive will come into effect, impacting all businesses and consumers in the UK. ADR describes a range of processes that offer the parties an easier, quicker and more cost effective mechanism to resolve complaints when compared with the court process. The new regulation will require traders, once they fail to resolve a dispute through their own customer service efforts, to advise the consumer of an ADR body, relevant to their sector, and the nature of the specific complaint. The trader will not be compelled to use the ADR body but it is hoped that the requirement to identify an appropriate body, and the potential benefits in customer relations such schemes may offer, will encourage traders to do so. ADR is widely available in the UK and mediation is available in the county courts or may require parties to consider it in the High Court and other courts. For a list of solicitors that are BIFA Associate Members and who are specialists in the forwarding sector, visit the BIFA website www.bifa.org > Contacts > Useful Links Macedonia joins Common Transit Convention The former Yugoslav Republic of Macedonia acceded to two Conventions on 1 July – on the simplification of formalities in trade of goods and also the Common Transit Convention. At the same time, the former Yugoslav Republic of Macedonia is joining a system based on electronic declarations and processing, which is designed to provide better management and control of the transit of goods. This electronic system was developed with the help of EU funds under the Instrument for Pre-Accession. The European Commission considers this to be an important step for trade facilitation in the region and an important achievement with a view to joining the EU in the future. Growing Your Business and Avoiding Pitfalls (c) 2015 Hilton Hotels & Resorts A free BIFA seminar Full details at www.bifa.org/events 1600-1730, Wednesday 14th October Heathrow Hilton Colnbrook 6 Join us for networking and drinks before and afterwards Reserve your place by email to [email protected] by 18th September 2015 September 2015 www.bifa.org News Desk BIFAlink Date set for BIFA Liverpool Regional Annual Dinner 2016 Belgium starts distance-based tolling The regions of Flanders and Wallonia in Belgium have voted to introduce a distance-based road toll for heavy goods vehicles weighing more than 3.5 tonnes, as of April 2016. The tolled network will be reduced as compared with that affected by the present vignette scheme. The measure, which has been under preparation for many years, is predicted by the road hauliers' associations to cause an increase of 7% in the prevailing road freight rates. So who is joining BIFA? You can find details of new member applications listed on the BIFA website, www.bifa.org. Simply select the tab MEMBERSHIP and you will see a separate page titled NEW MEMBER LISTING. The new member applications are published 14 days prior to the appropriate Regional Consultant to BIFA visiting the applicant for the final audit and welcome visit. If you wish to bring any information to our attention regarding any application, an e-mail should be sent to Robert Keen ([email protected]). BIFA has a Membership Group which can evaluate any contentious applications. We also list on the website those companies that have ceased membership of BIFA . If you sign up for the BIFA e-newsletter it will make checking who has applied for membership really easy. It is sent to subscribers every two weeks and there will be a prompt that will enable a one-click link to the appropriate page on the BIFA website. You can register to receive the BIFA e-newsletter by a simple signup process on the front page at www.bifa.org. You can tailor the type of news that we feed to you. If you have any questions concerning the website our resident expert, Spencer Stevenson ([email protected]), will be pleased to help you. The ever-popular Liverpool Region Annual Dinner will be held on Friday 26 February 2016 at The Liner, Liverpool. Tickets are now on sale at £35 each from Paul Young, the Regional Consultant to BIFA for the North West, the Midlands and Northern Ireland. Contact Paul at [email protected] for a booking form. The event continues to support Zoe’s Place (a hospice for children), Help for Heroes and the Ellesmere Port Sea Cadets, with organisers hoping to match the amazing £5,000 raised in 2015. Contributions of raffle prizes and auction items are welcomed. Entertainment on the night will be provided by the Corps of Drums of the Ellesmere Port Sea Cadets and comedian Josh Daniels. BIFA would like to thank the sponsors of this event: The Limits of Liability for Carriers By sea – Hague Visby rules (2 SDR): £1.78 per kg £594.85 per package In association with By road – CMR (8.33 SDR): £7.43 per kg Proud to be sponsoring the 2015 BIFA Award for Project Forwarding +44 (0) 1628 532 613 September 2015 www.peter-lole.co.uk By air – Montreal Convention (19 SDR): £16.95 per kg By air – Warsaw Convention (17 SDR): £15.17 per kg BIFA STC: (2 SDR): £1.78 per kg (The SDR rate on 19 August 2015, according to the IMF website, was 0.892268) 7 BIFAlink www.bifa.org Legal Good practice: A guide to agency agreements A look at some of the essential the elements you should include when drawing up an agency agreement Agency agreements between freight forwarders are made throughout the world on a daily basis, sometimes as a ‘one off’ arrangement but often based upon long-term co-operation on a sole agency in a defined geographical location. Agreements may also include agreed profit sharing or commission remuneration. binding contract between two parties as long as there is an offer, an acceptance, and value of some kind such as payment passing with acceptance, and should not be entered into lightly. Long-term agreements should be negotiated in English with the final draft being approved by a knowledgeable solicitor. BIFA Standard Trading Conditions (STC) Irrespective of the type of agreement you enter into, if you are providing services of any kind to the other forwarder, it is imperative that the STC are incorporated at the time a quotation is made in the case of a one-off arrangement and, for longer term arrangements, into a formal agency agreement. The document should include the following: 1. Detail of the scope of the agreement – in other words airfreight, seafreight, consolidations, documentary services or all services. 2. Definition of the geographical areas that the agreement covers. 3. Date of commencement and term of the agreement with notice of any termination clauses. 4. Financial agreement – payment terms – the conditions under which you will undertake the The agency agreement Entering into an agency agreement (either verbal and/or written) is a 8 collection of any COD shipments. An agreement that there shall be no invoice adjustments raised on insurance claims prior to mutual agreement of liability and settlement, together with terms on dealings with HM Revenue & Customs on behalf of them and their customers. 5. The incorporation of the STC of both parties with a clear definition of when the STC of either party become paramount to the other. Beware of trading conditions you are asked to accept and be satisfied that they are standard forwarding conditions for the country concerned and not conditions that are being imposed on your partner by his customer. If in doubt, check these conditions with a solicitor. 6. Confirmation that forwarder’s liability insurance is in place and will continue to be in effect throughout the term of the agreement. 7. As far as possible the agreement should contain a list of pre- and post-costs and charges from both parties for haulage, warehousing, freight, customs formalities and any other foreseeable costs/charges including an agreement to bear proven currency, and bunker surcharges without delay. 8. The agreement and the quoted costs/charges should be reviewed on an agreed regular basis. Any interim changes excluding BAF/CAF should require an agreed notice period. 9. Logistics contracts – if this form of business is to be included in the scope you should also take note of A Guide to Logistics Agreements. Separate terms must be agreed for each individual logistics contract, the basis of which should not conflict with the basic agency agreement. 10. If contracting with a foreign agent, the agreement should contain a law and jurisdiction clause. Whilst the BIFA STC do provide for English law and jurisdiction, the agreement itself should also contain a clause specifying agreed law and jurisdiction. This list is not definitive and is designed as a set of guidelines. Informal engagements can be very costly, therefore time and money spent in setting up strong and fair arrangements with existing and potential partners, with clearance from a knowledgeable solicitor, can prove to be a sound investment. Advice and Information The Association is here to help you in any way it can. Whilst BIFA members of staff do not have legal training, they can often assist with commercial questions and source appropriate advice for you. However, any such assistance given and flowing from this guide will be subject to the disclaimer appearing in this magazine. September 2015 www.bifa.org Policy & Compliance Lithium-ion batteries: new warnings issued to airlines Following further research, the US Federal Aviation Administration has again highlighted the fire hazards associated with lithium batteries and the dangers of transporting them by air vAn article in the July issue of BIFAlink was the latest of several articles that BIFA has published about the dangers associated with shipping lithium batteries by air. It highlighted the fire risks that had been identified and predictions of further accidents made by the US Federal Aviation Administration (FAA). Since that article, the FAA has issued a further statement acknowledging that testing it has “conducted on the transport of lithium batteries has indicated that it presents a risk”. Rechargeable batteries The warnings are related to rechargeable batteries that are used in a variety of devices, including mobile phones, laptop computers, power tools and other electronic devices. FAA tests show that when the batteries short-circuit they emit hydrogen and other gases that can build up. When the gases ignite they cause fierce explosions and fires that are very difficult to put out. It is the large number of lithium batteries shipped and their proximity to each other in cargo holds that pose the greatest hazard for aircraft. Boeing, one of the world’s two largest aircraft manufacturers, has also issued a statement recently warning its passenger airline customers that flying bulk shipments of lithium-ion batteries can cause fires capable of destroying aircraft. The guidance sent to airlines around the world urged them not to carry lithium-ion batteries as cargo until safer methods of packaging BIFAlink and transport are established and implemented. This message is particularly important because it signals that Boeing may now be prepared to join the growing chorus of pilot unions, airlines and other industry players calling for a sweeping reassessment of how lithium batteries are transported as cargo on all types of commercial aircraft. Boeing’s message may have only limited immediate or practical impact for forwarders because many airlines have already said they will no longer accept bulk shipments of lithium batteries. Bans imposed As of July 1, some 28 carriers had imposed permanent or temporary bans on bulk shipments of lithium batteries as cargo on passenger planes, according to data assembled by the International Air Transport Association. The airlines include Delta, United, Cathay Pacific, Emirates, Qantas and British Airways. Cargolux, an all-cargo airline, stopped carrying the batteries after reviewing information regarding the effectiveness of the onboard fire extinguishing systems in the case of lithium-ion battery fires and the temperatures that such fires can develop. The International Civil Aviation Organisation (ICAO) has a special working group that is trying to develop new standards for packaging that can contain battery fires. If the group cannot develop such packaging, the UN agency is likely to ban battery shipments from passenger airlines at its next meeting in October. ICAO has a special working group that is trying to develop new standards for packaging that can contain battery fires. September 2015 9 BIFAlink Policy & Compliance www.bifa.org Container weighing: Are you ready? BIFA has been preparing guidelines to the new container weight regime which clearly is of great concern to Members. There will be only two acceptable methods to establish a verified gross mass. BIFA has been briefing its membership since 2013 on the maritime industry’s progress towards the introduction and enforcement of legislation to ensure an accurate gross container weight is advised to the carrier. The necessary amendments to the Safety of Life at Sea (SOLAS) convention Chapter VI were passed after many meetings by the International Maritime Organization in May 2014. During the spring and summer of 2015, BIFA has held 10 meetings where this subject has been discussed at length. What has become clear is that Members are deeply frustrated at the industry’s lack of preparedness to implement the new regime. For instance, whilst the Maritime and Coastguard Agency (MCA) has published its guidelines, at the time of writing the mechanism to join the scheme had not been finalised. With one or two notable exceptions, the shipping lines are unable to provide any information regarding their procedures to handle the additional ‘verified weight’ information provided by the shipper. These and similar issues are beginning to cause the membership considerable concern. Through its affiliation to international organisations, it is clear to BIFA that there are similar concerns throughout the world. 10 It is important to understand that the SOLAS amendment is only part of wider efforts to improve safety in the logistics and maritime industry. These other measures include new guidelines for packing cargo transport units, which aim to ensure that individual pieces of cargo are correctly stowed and the weight evenly spread across the whole of a container. Identifiable solution However, the weighing issue has attracted the most interest because of publicity about well-documented incidents such as the MSC Napoli sinking. The problem is readily identifiable, as in theory should be the solution. It must be remembered that it is already a legal requirement for the shipper to provide to the carrier with an accurate weight. This was enshrined in the Carriage of Goods at Sea Act 1971 and the Merchant Shipping (Carriage of Cargoes) Regulation 1999. Although the language has changed slightly and we now refer to a ‘verified gross mass’, the general principle remains that this information has to be provided prior to the goods being loaded to the carrier. This amendment to SOLAS is a measure impacting on all parties within maritime, and all will have to accept these responsibilities, whether they be actual or implied. In the UK, the regulations will only apply to export containers. The regulation clearly states: “The shipper of a container shall ensure that the verified gross mass is stated in the shipping document.” If this verified weight is not provided “it shall not be loaded on to the ship.” The shipper is defined as “a legal entity or person named on the bill of lading or sea waybill, or equivalent multimodal transport document (eg ‘through’ bill of lading) as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a shipping company.” On many occasions the freight forwarder is contractually the shipper. There are only two methods to establish this verified gross mass: • Method 1 – weighing the packed container using calibrated and certified equipment. • Method 2 – weighing all packages and cargo items, including the mass of pallets, dunnage, etc, and adding these to the tare mass of the container “using a certified method approved by the competent authority of the state in which the packing of the container is completed”. There are certain exceptions to these general rules. For instance, shippers of scrap metal must use Method 1 to establish the weight of the loaded container. The new regulations only apply to exported containers. On inbound shipments, the verified weight will have been established in the country where the container was loaded. During the winter of 2014/2015, BIFA worked with other trade associations, and in particular the Freight Transport Association (FTA), to assist the MCA in preparing September 2015 www.bifa.org workable scheme guidelines. The aim has been to produce guidelines that follow existing work patterns and wherever possible use existing auditable procedures. Where a Member wishes to use Method 2, if they are accredited to ISO 9001 or similar audited standard, and have the required procedures, these can be used as the basis to become what we are going to refer to as a ‘verified shipper’. Additional procedures can be added to the existing programme where necessary to make up for September 2015 Policy & Compliance any procedural gaps. The forwarder will also have to consider what, if any, additional equipment, maintenance and staff training will be required to ensure compliance. MCA checks In both cases the relevant paperwork, plus supporting certification, can be sent to the MCA which will issue the relevant authorisation and list the trader on a central database, which can be checked as appropriate. If the Member does not have the previously mentioned ISO accreditation, we understand that standalone schemes will become available, but will have to comply with MCA criteria. When it has been established after audit that the trader is compliant, it may apply to the MCA as previously detailed to be listed as a verified shipper. For those operating under Method 1, the freight forwarder will need to ensure it uses a provider with calibrated and certified equipment. Consideration will have to be given to retaining weighing BIFAlink certificates in case the cargo’s weight is queried at a later stage. In this brief overview we have endeavoured to highlight the main requirements of how the regulatory system will operate in the UK. Freight forwarders will have to decide which option they will use and in what circumstances. More comprehensive information regarding the scheme can be obtained at: https://www.gov.uk/ government/uploads/system/uploa ds/attachment_data/file/436986/M GN534_Complete.pdf 11 BIFAlink Policy & Compliance Ensure your seafreight boxes are correctly loaded The declared weights of some loaded containers and the safety and security of the goods within them, particularly dangerous goods, remain an ongoing concern for the Maritime and Coastguard Agency The competent authority in the UK, the Maritime and Coastguard Agency (MCA), has indicated that there is serious concern over the declared weights of some loaded containers and the safety and security of the goods loaded within them. These checks have been taking place for a long time and will continue both in this and other countries en route to their final destination. Many loaders fail to ensure an even spread of the load over the length of the container floor. This gives rise to problems in axle weight distribution on the road portions of the journey, stability when lifting, and also on the ship. This is an issue that is addressed at 12 considerable length in the revised IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) issued in 2014. Dangerous assumptions Additionally, many loaders assume that goods within the container will remain stable during transit, a dangerous assumption because unrestrained goods will move within the container under the stresses of transport by road and by sea. The essential thing to remember is that goods loaded to a container or vehicle must be restrained so that they cannot move. This is even more important when the goods involved are classified as dangerous. The IMDG regulations state that, where possible, dangerous goods should be loaded near the doors of containers and with the relevant labels facing the rear doors. This means that, should your container be subject to such an inspection, less time will be taken, minimising delays and the resultant financial implications. If the inspector has to off-load some or all of the load to satisfy him/herself that the load complies with the documentation, the process will be longer and more expensive. In preparing a load for a vehicle or a container, the first priority is the weight distribution, then the placement and securing of any dangerous goods. Most loaders are professional in www.bifa.org their approach but too many examples show not all loads are prepared by professionals. At a recent meeting of BIFA’s Dangerous Goods Advisory Group, the MCA confirmed that 40% of inspected dangerous goods failed their initial examination. This percentage has remained static over a 10-year period. The most common reasons for dangerous goods failing the appropriate safety checks were highlighted in a recent case study supplied to BIFA by the MCA. There were significant errors in both the documentation and the way in which the container was loaded. The transport document referred to dangerous goods which did not form part of the load. Pictures taken of the container showed that the loader did not understand its responsibilities and had not planned the loading or securing of the load. Heavy pallets had been loaded on top of lighter ones, solid substances loaded on top of liquids, and there was no securing of any cargo within the container, resulting in the whole load shifting and making the container dangerously unbalanced. Corrective actions The necessary corrective action involved the out-turning and reloading of the container within the terminal, which delayed the shipment and led to significant costs being incurred. There is a feeling growing within compliant companies that when handling dangerous goods, all parties have an obligation to fulfil their responsibilities and to be willing when questioned to confirm details of the exact nature and handling requirements of goods tendered for shipment. The MCA has openly said it believes there needs to be a cultural shift in the mind-set of some shippers, placing compliance and safety as their number one objective. BIFA would like to thank Bob Cross, Chair of BIFA’s Dangerous Goods Advisory Group, for preparing this article. September 2015 BIFAlink Policy & Compliance e-AWB growth ‘insufficient to hit target’ says IATA While the number of e-AWBs submitted globally has risen to 28.8%, progress is too slow for IATA’s 45% target to be hit by the end of this year e-AWB penetration is not developing fast enough according to IATA and it is now unlikely that the global e-AWB penetration target, of 45% by the end of December 2015, will be reached. Latest figures published by IATA in June show that the number of e-AWBs submitted globally rose to 28.8% of the total. This was a rise of just 0.8% on the previous month and although it is positive growth, it is not sufficient to meet the industry target by the end of the year. IATA says that industry adoption needs to grow by at least 2% every month, which would require a 14 significant acceleration of e-AWB implementation. One of the strategies that IATA has identified is to focus efforts on the top 50 e-Airports where e-AWB is already enabled. Single Process It will also encourage airlines to roll out ‘Single Process’ across more locations in the network. The Single Process simplifies adoption for freight forwarders, allowing them to send electronic data and never deliver a paper AWB with the cargo. The Single Process works by permitting forwarders to follow the same process regardless of any regulatory or operational requirements with the airline determining when a paper AWB needs to be produced. When required, the airline prints a paper AWB, with the conditions of contract on the reverse, on behalf of the freight forwarder, using the exchanged electronic data. This process releases freight forwarders from the complexity and IATA says that experience shows that it can triple the rate of e-AWB adoption. Many small and medium-size forwarders still feel that not enough is being done to help them make www.bifa.org the transition to e-AWB. There is no standardised platform for communicating with the airlines and some airlines and transit sheds are still unable to accept XML format messages. Forwarders have also pointed out that many airlines are not encouraging them or pushing them to make the change as it is not mandatory. Multilateral agreement Despite the disappointment in the slower than forecast progression of e-AWB, more than 84 airlines and 2,206 freight forwarders have signed a Multilateral e-AWB agreement which provides a single standard agreement that airlines and freight forwarders can sign once with IATA, and start doing e-AWB with other parties to the agreement. The progress of e-AWB penetration can be followed in an International Monthly Report on the IATA website, together with the latest news in the e-Cargo Buzz monthly update. September 2015 www.bifa.org Training BIFAlink How BIFA training helps your staff and company • Some courses are now available online • We offer a range of courses at different levels to allow progression • Courses are delivered by industry professionals with hands-on knowledge • Courses are participative to ensure delegates gain real experience • Courses are scheduled on a range of dates and at a range of venues • Courses can be delivered ‘in-house’ to a group of employees • In-house courses can be tailored to your requirements • Course fees are kept to a minimum and BIFA member companies benefit from reduced member rates and 30 days credit. BIFA has been offering training to freight forwarders, their customers and freight intermediaries for almost 40 years but perhaps you are asking ‘Why train?’ This is our answer: • To comply with legislative requirements • To enhance basic skills and industry knowledge • To build on on-the-job training • To create multi-skilled staff by cross-training • To avoid errors • To develop staff • To raise staff morale • To allow company to exploit new opportunities • To raise understanding of the industry and its processes • To enhance the service offered to customers • To create confident personnel • To be the best in the field. Do you need more reasons? Forget facilities, vehicles, PCs and other hardware, your company’s image, profitability and continued success depends directly on the skills, knowledge and demeanour of your staff. No-one likes to feel out of their depth and uncertainty can easily lead to errors and silly mistakes. Customers will pick up on a lack of confidence in your staff and begin to feel uneasy about dealing with your company. Contrary to popular belief, staff do not up and leave to work for a competitor as soon as they have received training. Indeed they are likely to feel refreshed, more valued and show increased commitment as a result. The best investment you can make, therefore, is in the individuals at the forefront of your operation. The payback in improved customer September 2015 The BIFA range of courses covers the carriage of dangerous goods, air cargo security, freight forwarding procedures and customs procedures to meet the mandatory requirements of cargo movement and to develop the knowledge and understanding of the industry amongst your staff. So, go to www.bifa.org/training to review the range of courses and make your training plans. service, quality, new business and staff loyalty will be immeasurable. Training should be at the top of your budget plans. At BIFA we understand the demands of your business and the difficulty in releasing staff for training. For this reason: • We keep training courses short and to the point Free staff training Did you know that BIFA offers a free training course for members? The topic is use of the BIFA Standard Trading Conditions (STC) and mirrors the recent series of articles in BIFAlink where STC clauses are examined in detail. We at BIFA think it is essential that all BIFA members train at least one member of staff in this important subject area. All you do is register with Sharon Hammond ([email protected]) and then you get access to the online course. It can take a few months to complete, depending on how much work you do each week and your level of experience. However we have found most candidates pass the course, many with a distinction mark. 15 www.bifa.org Legal Gender pay gap – an update It has been 40 years since equal pay laws came into effect in the UK. However, despite the equal pay laws, there continues to be a gap between what men and women are paid. The figures from the Office for National Statistics for 2014 show that the gender pay gap (based on median hourly earnings for both full and part-time employees) is currently 19.1%, reducing to 9.4% for full-time employees. However, this is not the complete picture. In the private sector the gender pay gap for full-time employees is 17.5%. When broken down further by occupation, provisional figures for 2014 suggest that the pay gap for those in full-time senior or management roles is around 16%. This figure increases to nearly 25% for those working in skilled trades. The main approach adopted by the government for tackling the gender pay gap has been to promote transparency by asking employers to identify and publicise the gender pay gap within their own organisations. In 2011, the government decided to launch a voluntary disclosure initiative called ‘Think, Act, Report’ to encourage companies to report on their gender pay gaps. Although over 250 companies signed up to the initiative, only five companies have actually published their gender pay gap information. In addition, the government introduced an obligation for tribunals to order employers to carry out an equal pay audit and publish the results where they lose Support your local Member group BIFA holds Regional Member meetings around the UK and listed right are those due to occur soon. If you would like to attend and find out more about BIFA and what we do, then contact the appropriate Regional Consultant to BIFA. All BIFA Members are entitled and encouraged to attend their regional meetings however pre-booking with the named contact is essential. Full contact details are shown on page 3 of this issue. September 2015 an equal pay or pay-related discrimination claim. The Small Business, Enterprise and Employment Act 2015 has received Royal Assent, and the Secretary of State has been given 12 months to put together new regulations, meaning that mandatory gender pay gap reporting will be in Region Date Stansted Regional Members’ meeting Gatwick Regional Members’ meeting Heathrow Regional Members’ meeting London East Regional Members’ meeting Anglia Regional Members’ meeting Southampton Regional Members’ meeting Northern Ireland Regional Members’ meeting Liverpool Regional Members’ meeting Heathrow Regional Members’ meeting Tue 8 Sep Time BIFAlink place by spring 2016. Section 78 of the new act gives the Secretary of State broad powers to prescribe what information employers will need to publish, in what form, and the manner and time of publication. Publication cannot be more frequent than annually. The penalty for an employer that fails to comply could be a criminal fine of up to £5,000 or civil enforcement measures. Whilst this is a positive step for gender diversity, employers will need to start thinking about monitoring gender pay differences more systematically and conducting equal pay audits to identify where pay gaps exist. This would enable them to prepare for potential negative publicity and/or address issues at an early stage. This of course has to be balanced against the risk of creating material that might need to be disclosed in litigation at a stage where gender pay reporting has not yet been implemented. If you have any queries in relation to equal pay or the gender pay gap, please do not hesitate to contact Helen Watson on 01244 405565 or send an email to helen.watson@ aaronandpartners.com BIFA is grateful to solicitors Aaron and Partners who contributed this article. Venue BIFA Contact TBA Stansted Airport Ltd Colin Young Thu 10 Sep TBA Colin Young Tue 29 Sep 1400 Tue 29 Sep 1200 Wed 30 Sep 1200 Tue 13 Oct 0800 Timberham House, Gatwick Redfern House, Feltham DP World, London Gateway Holiday Inn, Orwell, Ipswich Duke of Wellington Tue 20 Oct 1030 Thu 22 Oct 1030 Thu 22 Oct 1400 Colin Young Paul Newman Paul Newman Colin Young Mission to Seafarers, Paul Young Belfast Liverpool & Sefton Paul Young Chambers of Commerce Redfern House, Colin Young Feltham 17 BIFAlink www.bifa.org Events Freight Service Awards 2015 registrations close this month BIFA reveals the identity of the 2015 ceremony host – Sally (Traffic) Boazman who is known for her Radio 2 travel reports Entries for this year’s BIFA Awards competition have been coming in consistently throughout the summer months. With autumn approaching, now is the time for any remaining registrations to be made as the deadline is not far off: Friday 25 September, 5pm. If you have been intending to register but have not yet got round to it, please visit the event website at bifa.org/awards. See the back page for a list of the 11 categories and sponsors. The full category descriptions and entry criteria can be found online at bifa.org/awards under ENTER NOW. With two new categories added for this year, there is plenty of opportunity for you to submit stories or projects for consideration by the judges. These can range from examples of good practice in modal transportation to specific forwarding projects, or from generic examples of excellence in supply chain management to staff development practices. New categories The two new categories, the Cool Award and the Extra Mile Award, give you the opportunity to tell us either about a particular movement of refrigerated goods you have carried out on behalf of a client, or to show off how good the customer service function within your organisation is. Not forgetting, of course, the Young Freight Forwarder Award, which allows managers to put forward any rising stars within their company, thus giving their younger staff members a chance to show off the results of their professional progression and achievements. As 18 Sally Boazman has become a cult figure for Radio 2 a reminder, there is no entry fee for this category, and the individual who wins will receive: • A cheque for £1,000 to be presented at the Awards Ceremony (the three runners-up each receive a cheque for £250), • A place on a BIFA training course Awards ceremony January 2015 of their choice, • A free invitation to the 2016 Awards ceremony held in January 2017 (all finalists also automatically receive a free invitation to the 2015 Awards ceremony to be held in January 2016), • A tour of category sponsor Virgin Atlantic Cargo’s facility at London Heathrow, including an airside visit, • Full-page coverage in the Association’s monthly magazine, BIFAlink, • Nomination as the UK candidate for the FIATA/TT Club Young International Freight Forwarder of the Year Award 2016. If successful as the winner of the Europe Category of the competition, attendance at the FIATA World Congress 2016 in Dublin, Ireland. Ceremony host This year BIFA has picked Sally (Traffic) Boazman as the celebrity to host the Awards Ceremony to be held on 21 January 2016 in the impressive Porter Tun Room at the grade II listed venue of The Brewery in central London. Once again the event host has kindly been sponsored by the UK’s world-class deepsea container port and Europe’s largest logistics park – DP World London Gateway. Sally is well known for her travel reports on BBC Radio 2, where she is affectionately known as ‘Sally Traffic’. She became the station’s first designated travel reporter there in 1998, where she has since been presented with an ‘Outstanding Achievement Award’ for her traffic news on behalf of the UK’s truckers. She is also a popular guest at the Truckfest events, held throughout the country. Additionally, Sally regularly chats on the Steve Wright, Simon Mayo and Jeremy Vine shows, and can be heard at the weekends with Graham Norton, Johnnie Walker and others. She has become a national cult figure for Radio 2, and is even known as the patron saint of road users! Her first documentary for the station, ‘In Search of a British Route 66’, was very well received. In the past, Sally has also worked at BBC Greater London Radio where she became their chief travel reporter, writing and delivering scripts for both radio and Newsroom South East. She has also presented a documentary for BBC television – The Road to Nowhere – celebrating the 25th anniversary of the M25. Sally has been voted one of the most attractive female voices on UK radio in a Radio Times poll, coming in at number 4. She is also an accomplished writer. The Sally Traffic Handbook, full of facts, fun and frolics, was published in 2007. For further information on entering the BIFA Freight Service Awards 2015, or to book tickets for the next Awards Ceremony Luncheon, (Thursday 21 January 2016) please visit bifa.org/awards September 2015 www.bifa.org Training BIFAlink Training courses: September-November 2015 AIR CARGO (REGULATED AGENTS) SECURITY TRAINING NEW level OLD Level CASP A/B CO D COS E CS F CM G NEW – BIFA is now offering CASP, CASP-D and CO courses (initial and refresher) via online CBT to Regulated Agents. See www.bifa.org/training for further information. Known Consignor modules also available online. Known Consignor Air Cargo Security (pm only) 10 September Feltham, West London 7 October Feltham, West London 12 November Feltham, West London Air Cargo Security – CASP (Cargo Aviation Security Principles) Air Cargo Security – CO (Cargo Operative) 17 September Feltham, West London 29 September Feltham, West London 14 October Feltham, West London 26 October Feltham, West London 11 November Feltham, West London BTEC Intermediate Award in Customs Export & Import Procedures (CM3) Commencing 9 September Feltham, West London Commencing 29 October Feltham, West London Dangerous Goods Safety Adviser (DGSA) 9-11 September Heathrow area 9-11 September Manchester 16-20 November Feltham, West London 16-20 November Manchester BTEC Intermediate Award in Customs Import Entry & Procedures (CM5) Commencing 13 October Feltham, West London Radioactive Goods by Air (DGA3) 12-13 November Feltham, West London DANGEROUS GOODS Radioactive Goods by Air – Revalidation (DGA4) 13 November Feltham, West London Air Cargo Security – COS (Cargo Operative Screening) Air Cargo Security – CS (Cargo Supervisor) Air Cargo Security – CM (Cargo Manager) 21-22 September Feltham, West London 20-21 October Feltham, West London 23-24 November Feltham, West London Air Cargo Security – Refresher CASP (am only) 10 September Feltham, West London 7 October Feltham, West London 12 November Feltham, West London Air Cargo Security – Refresher CO (am session) and Refresher COS (pm session) 7 September Feltham, West London 1 October Feltham, West London Air Cargo Security – Refresher CS (am session) and Refresher CM (pm session) 25 September Feltham, West London 26 November 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 28 September Feltham, West London 21 October Feltham, West London 23 November Feltham, West London CUSTOMS PROCEDURES Customs Procedures for Export Cargo (CM1) 12 October Feltham, West London 18 November Midlands Customs Procedures for Import Cargo (CM2) 13 October Feltham, West London 19 November Midlands Dangerous Goods by Air (DGA1) 7-9 September Coventry 7-9 September Feltham, West London 14-16 September Glasgow 14-16 September Manchester 21-23 September Leeds / Bradford 5-7 October Feltham, West London 12-14 October Bristol 12-14 October Newcastle 26-28 October Coventry 2-4 November Feltham, West London 9-11 November Manchester Dangerous Goods by Air – Revalidation (DGA2) 10-11 September Coventry 10-11 September Feltham, West London 17-18 September Glasgow 17-18 September Manchester 24-25 September Leeds / Bradford 8-9 October Feltham, West London 15-16 October Bristol 15-16 October Newcastle 29-30 October Coventry 5-6 November Feltham, West London 12-13 November Manchester Dangerous Goods by Road (DGR1) 7-9 September Manchester 14-16 September Bristol 5-7 October Coventry 19-21 October Feltham, West London 2-4 November Manchester 23-25 November Birmingham Dangerous Goods by Road – Revalidation (DGR2) Days 2 and 3 of the above Dangerous Goods by Road course (DGR1) Dangerous Goods by Sea (DGS1) 10-11 September Manchester 17-18 September Bristol 8-9 October Coventry 15-16 October Glasgow 22-23 October Feltham, West London 5-6 November Manchester 26-27 November Birmingham Infectious Substances by Air (DGA5) 17 November Elstree Carriage of Lithium Batteries by Air, Road & Sea (modules available individually) 14-15 September Feltham, West London FREIGHT FORWARDING AND INTERNATIONAL TRADE Exports for Beginners (EXP1) 16 September Feltham, West London 28 September South West England 9 November Feltham, West London Imports for Beginners (IMP1) 17 September Feltham, West London 29 September South West England 10 November Feltham, West London Introduction to Air Cargo (AC1) 26-30 October Feltham, West London BTEC Intermediate Award in Multimodal International Freight Procedures (MFT1) Commencing 8 September Feltham, West London Commencing 24 September Midlands Commencing 7 October North East England Commencing 28 October Feltham, West London Sea Freight: The Basics (SF1) 19 October Feltham, West London 17 November South West England Introduction to Letters of Credit 16 November Feltham, West London To view course content or to make a booking, go to www.bifa.org and click on training BIFA is a member of: #BIFATraining September 2015 19 BIFA Freight Service Awards 2015 Now in its 27th year Call for Entries The following categories of the BIFA Freight Service Awards 2015 are open for entry: General Categories Individual Category Project Forwarding Award Young Freight Forwarder Award Sponsored by: Peter Lole & Co Sponsored by: Virgin Atlantic Cargo Specialist Services Award Sponsored by: Forward Computers Staff Development Award Sponsored by: Albacore Systems Supply Chain Management Award Sponsored by: BoxTop Technologies Sustainable Logistics Award Sponsored by: Red Recruit 11 Modal Categories Air Cargo Services Award Sponsored by: IAG Cargo European Logistics Award Sponsored by: TT Club Ocean Services Award Sponsored by: Cargoguide International Specialist Categories Cool Award NEW Sponsored by: American Airlines Cargo Award Categories Extra Mile Award NEW Sponsored by: Descartes Entry Cost Submissions’ Deadline Awards Ceremony £80.00 + VAT (non-refundable) per category (no charge for the Young Freight Forwarder Award) Friday 9th October 2015 (5.00pm) Thursday 21st January 2016 from 12.00pm The Brewery, London EC1 Registrations’ Deadline Friday 25th September 2015 (5.00pm) All Young Freight Forwarder Award entrants whose completed submissions are received at BIFA by the deadline date will be entered into a prize draw to win two Virgin Atlantic flights to New York, courtesy of the category sponsor, Virgin Atlantic Cargo. Terms and Conditions apply. To enter visit bifa.org/awards > Enter Now For further information please contact the BIFA Events Office: E: [email protected] T: 020 8844 3641
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