annual report - fiata
TRANSCRIPT
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ANNUAL REPORT
2017/2018
Doc. 30/295
Glattbrugg, August 31st 2018
Published by FIATA
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CONTENTS
ANNUAL REPORT ........................................................................................................................................................... 1
THE STRUCTURE OF FIATA .......................................................................................................................................... 3
FIATA PRESIDENT’S REPORT ...................................................................................................................................... 4
DIRECTOR GENERAL’S REPORT ................................................................................................................................ 8
AIRFREIGHT INSTITUTE (AFI) ................................................................................................................................... 10
CUSTOMS AFFAIRS INSTITUTE (CAI) ...................................................................................................................... 13
MULTIMODAL TRANSPORT INSTITUTE (MTI) .................................................................................................... 14
ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA) ........................................................................................ 18
ADVISORY BODY INFORMATION TECHNOLOGY (ABIT) ................................................................................. 21
ADVISORY BODY LEGAL MATTERS (ABLM) ........................................................................................................ 23
ADVISORY BODY SAFETY AND SECURITY (ABSS) .............................................................................................. 25
ADVISORY BODY OF VOCATIONAL TRAINING (ABVT) .................................................................................... 27
FIATA FOUNDATION OF VOCATIONAL TRAINING (FFVT) .............................................................................. 30
FIATA LOGISTICS ACADEMY (FLA) ......................................................................................................................... 32
WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL) ............................................................................. 33
FIATA WORLD CONGRESS COMMITTEE ............................................................................................................... 35
REGION AFRICA MIDDLE EAST (RAME) ................................................................................................................ 36
REGION EUROPE (REU) .............................................................................................................................................. 39
REGION AMERICAS NORTH AND SOUTH (RAMNS) .......................................................................................... 42
REGION ASIA PACIFIC (RAP) .................................................................................................................................... 44
Registered Office:
FIATA International Federation of Freight
Forwarders Associations
Schaffhauserstrasse 104
P.O. Box 364
CH- 8152 Glattbrugg
Switzerland
Phone: +41 (0)43 211 65 00
Fax: +41 (0)43 211 65 65
E-mail: [email protected]
Website: www.fiata.com
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THE STRUCTURE OF FIATA
Presidency President of FIATA Babar Badat Pakistan Immediate Past President Huxiang Zhao China Secretary General Robert A. Voltmann United States Treasurer Francisco S. Parisi Italy Senior Vice Presidents Turgut Erkeskin Turkey Basil PIetersen South Africa Ivan Petrov Bulgaria
Extended Board Vice Presidents Krishnan Chelliah Malaysia Ole A. Hagen Norway Neil Taylor Montgomery Chile Jens Roemer Belgium Marc Bibeau Canada Bung Jin Kim Korea, Republic of David Nutakor Ghana Ahmed Mostafa Hamed Egypt Antonella Straulino Italy Oleg Platonov Ukraine Nadia Abdul Aziz United Arab Emirates Adelaide Yang Chinese Taipei Chairman AFI Keshav R. Tanna India Chairman CAI Steve Parker United Kingdom Chairman MTI Robert Keen United Kingdom Chairman ABLM Richard D. Gluck United States Chairman ABVT Thomas Sim Singapore Chairman ABSS David Fielder Denmark Chairman ABIA Paul Golland Australia Chairwoman ABIT Anne Sandretto France Chairman FLA Issa Baluch United Arab Emirates Chairman WG SL Heiner Rogge Germany Chairman FWC Stanley Lim Singapore Chairman RAME Stephen Ngatunga Tanzania Chairman RAMNS Jorge Heinermann Uruguay Chairman RAP Chris Kanter Indonesia Chairman REU Turgut Erkeskin Turkey
Secretariat Director-General Hans Guenther Kersten Manager AFI, CAI, RAP Daniel Bloch Manager ABVT, RAMNS, FLA ABIT Verena Schaer Manager MTI, REU René Zimmermann Manager ABLM Angela Song Manager ABIA, WGSL, ABSS, RAME Bassil Eid Manager Congress Elena Primitzhofer Administration Barbara Wieser Administrative Assistants Araseli Torres, Gwenda Boschetti, Amadeus Lomboardi
FIATA Foundation Jean-Claude Delen, President
Barbara Wieser, Secretary
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FIATA PRESIDENT’S REPORT
I am honoured to be writing my first annual report as FIATA’s President. Many activities
have already been under way since the 2017 FIATA World Congress held in Kuala
Lumpur. Alongside my election, FIATA has also welcomed new members at both the
Presidency and the Extended Board, with whom I am working on various subjects
important for our industry. The wise vote of our General Meeting ensures on the one hand
that new voices are heard but on the other hand also lets familiar ones remain, for us to
continue to share their vast knowledge and experience. “In addition to new initiatives, I
intend to continue to build on the work we have done during the time of former FIATA
Presidents Mr. Zhao Huxiang and Mr. Francisco Parisi who have helped shape and prepare
FIATA to meet the new challenges of the changing international environment.
Very early in my presidency on a visit of Dar es Salaam, Tanzania, on Nov 02, 2017 I met
our newly appointed RAME Chairman Mr. Stephen Ngatunga from our member
association the Tanzania Freight Forwarders Associations (TAFFA). Tanzania and the
entire RAME region have shown significant growth and development over the past few
years, it is a very active region in which our membership continues to expand. I had the
opportunity to discuss FIATA’s ideas with the RAME Chair and we agreed that one item
we should focus on is the newly established African Continental Free Trade Area
(AfCFTA). We stand ready to do our share in AfCFTA’s implementation while working
with our members.
Our member from Pakistan PIFFA and its individual companies have always had a large
membership presence in FIATA and the industry there was delighted with the FIATA
Presidentship coming to Pakistan. On Nov 21, 2017, PIFFA had a dinner reception in
Karachi to celebrate this and hosted around 750 guests consisting of the Freight Forwarding
community as well as the Carriers and representatives of the Chambers of Commerce.
On Jan 13 - 14, 2018, we held the FIATA
Presidency meeting in my home country
of Pakistan and it was in the historical
city of Lahore. On January 15, we had
the honour of meeting Prime Minister
Shahid Khaqan Abbasi and the Minister
of State for Industries and Production
Sardar Arshad Laghari at the Prime
Minister’s office in Islamabad. During
the meeting, we highlighted FIATA’s
growing work agenda and our
commitment to work with national governments and international organizations to ensure
favorable policies not only for the freight forwarding industry, but also for the trade in
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general. The Prime Minister showcased the growth rate in Pakistan (5.5%), emphasizing the
contribution of logistics sector and confirmed that Pakistan would continue to offer
extensive business opportunities for logistics and trade in the country - the connected
region.
Also in January 2018 a meeting was held to discuss regional connectivity to promote links
between the CAREC region, the meeting was hosted by the Ministry of Planning in
Islamabad which was also attended by representatives of the Asian Development Bank.
When being asked, I highlighted FIATA’s various trade and logistics related activities at the
UN and its sub bodies, many of these activities being conducted through our Advisory
Body International Affairs (ABIA). Our contribution was welcomed by delegates in
attendance who fully understood the need to enhance logistics links in their respective
countries and the region as a whole, they appreciated the value of FIATA’s participation.
Young logisticians are the future of our industry, in addition to our work in organizing the
Young International Freight Forwarder of the Year Award (YIFFY) as well as the Young
Logistics Session hosted at various FIATA World Congresses, I believe it is important for us
to further step up our efforts in this area. On Feb 10, 2018, Greenwich University (having
campuses at Male at Maldives and Karachi), invited me to speak to a group of MBA
students on the “Future of Logistics Industry in the greater West Asia Region”. In speaking
so, they also got an insight into the FIATA Organization.
Whenever the topic of young logisticians comes up, one thinks of the importance of
training. Our two main FIATA training bodies, the FIATA Logistics Academy and the
Advisory Body Vocational Training are planning to merge this year to gain from common
synergies and thus being able to serve the FIATA membership even better. Moving forward
our association members will have the opportunity of deciding on the future of education
at FIATA and lay the foundation stone of a new FIATA Institute dedicated to training and
education.
The mix of new learning technologies and FIATA’s 14 Minimum Standards in Freight
Forwarding will increase the level of education currently delivered throughout our
network of Association Members and strengthen the brand of the FIATA Diploma. I am
looking forward to the new FIATA Institute which we are confident will bring increased
efficiency and effectiveness as the result of the proposed merger.
Remaining active in the field of international affairs, I participated in the China Economic
Corridor Summit and Expo on Apr 23 - 24, 2018. I had the privilege to Chair the main
session, which was on logistics and opened the meeting by highlighting the importance of
logistics connectivity in global development. The China Pakistan Economic Corridor with
an investment volume of US$ 62 billion could serve as an example of the impact that proper
investment in logistics infrastructure and capacity building could have on local and
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regional economies. The panel boasted a line-up of nine speakers each giving excellent
presentations and providing a high level of engagement with the audience.
I would also like to highlight the work undertaken
by the government of Turkmenistan in improving
their infrastructure. On May 2, 2018 was the
opening ceremony of the new Turkmenbashi Port,
which is on the eastern shores of the Caspian Sea.
There I had a bilateral meeting with the President
of Turkmenistan His Excellency Mr Gurbunguly
Berdimuhamedov and after being conferred the
status of guest of honour, was asked to be the only
speaker besides the President to address the
gathering consisting of Transport Ministers from
several countries as well as port heads and
diplomats from various regional countries.
President Berdimuhamedov showed immense
interest in the logistics industry in the region and asked FIATA to support the
establishment of a Freight Forwarder Association in Turkmenistan.
On June 21, 2018, the UNESCAP meeting was held followed by the 12th FIATA RAP Field
meeting on the next day June 22n, 2018 in Busan, Republic of Korea. Both the events were
very well organized and managed by the Korea International Freight Forwarders
Association KIFFA. Chairman KIFFA Mr. B. J. Kim hosted these well-organized meetings.
Also, present were Korean Parliamentarians including the Minister as well as the Port
Heads from Busan Port Authority and the Incheon Port Authority and they showed great
interest in FIATA activities. The high level of government support for the KIFFA and the
Freight Forwarding and Logistics Industry was very evident. We can look forward to a
very good congress in Busan in 2020.
On June 27, 2018 a seminar was hosted by WTO in Geneva to celebrate the UN MSME
(Medium and Small Enterprise) day. As President FIATA, I was invited to speak on “Trade
Facilitation of MSMEs.” Other invitees were the DG WTO, Executive Director ITC and the
CEO of Ali Baba group Mr. Jack Ma. Having a prior commitment to one of our members, I
regretted but nominated our DG Hans Günther Kersten to represent FIATA at this meeting
in Geneva.
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On June 28, 2018 our member the
Turkish Freight Forwarders Association
UTIKAD held a ceremony to award
Diploma certificates to their high-level
logistics graduation course participants.
As President FIATA, I was invited to the
occasion which was also graced by the
President of Istanbul Chamber of
Commerce Mr. Sakib Aadagic. The
meeting was hosted by the President of
UTIKAD Mr. Emre Eldrner and
coordinated by our Senior Vice President Mr. Turgut Erkeskin who is also the Vice
President of UTIKAD. The training environment & the syllabus programme is very well
managed by UTIKAD for the Turkish Logistics Industry.
On June 30 - July 1, 2018 we held our Presidency meetings in Sofia Bulgaria. Our Senior
Vice President Mr. Ivan Petrov very kindly coordinated the meeting which was in his home
country. The meeting coincided with the 25th Anniversary celebrations of our member the
Bulgarian Association of Freight Forwarding and Transport NSBS as well as the 60th
Anniversary of CLECAT. A reception was hosted by NSBS at the beautiful Military Club in
Sofia to celebrate the Anniversary and various Executive Committee members of CLECAT
and NSBS were present.
The IATA FIATA Air Cargo Program (IFACP), launched in Canada in August 2017, has the
objective to ensure that appropriate and relevant standards with respect to air cargo
operations are developed and maintained. However, the Program is now on hold as the
new IFACP Forwarder Agreement needs to be revised in order to reflect the current way
that Forwarders are doing business with the Airlines, sometimes as Principal and
sometimes as Agent of the Shipper and also ensure that the commercial relations already in
place between the Forwarders and Airlines are not disrupted. The next IFGB meeting is
scheduled for Oct 1 - 2, 2018. Information Technology and Digitalisation are among our top
priorities and we are supporting the Advisory Body Information Technology (ABIT) in
their activities with external bodies of EU and UN as well as in their pilot projects to
develop standards and test the use of digitized freight documents.
I wish to end by registering my appreciation for the support from our various body heads,
my Presidency colleagues and the staff in this first year of my term as President. I thank all
who have assisted in this work, acknowledge their generous input of time and energy, and
look forward to another exiting year as FIATA President.
Babar Badat
President, FIATA
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DIRECTOR GENERAL’S REPORT
This is my first Annual Report as FIATA Director General and I am looking back on a very
challenging year indeed.
The handover from one Director General to another – however diligently prepared –
already constitutes a “stress test” per se - for the organisation as well as for the people
involved.
In this case, however, two factors presented an additional challenge:
Firstly, with the retirement of my predecessor Marco Sorgetti coincided the hospitalization
of FIATA’s Administration Manager for spinal surgery, followed by a sick leave of several
months. Despite the fact that the operation went well, she is not back to full working
capacity until this day.
Secondly, Marco turned 65 at the end of August last year, so the handover date was
September 1st, just a few weeks before the FIATA World Congress. A FWC just four weeks
into the new position without the support of the Administration Manager made me wish
more than once that my predecessor’s 65th birthday had not been in August but in October
or November.
However, thanks to the excellent work of our local host, the Federation of Malaysian
Freight Forwarders (FMFF) lead by Alvin Chua and Krishnan Chelliah, and to the efforts of
my team, in particular my Congress Manager Elena Primitzhofer, for whom this was also
the first FWC in her new role, the Congress was a great success with 1652 participants from
72 countries and many lively and interesting sessions of the Institutes, Regions, Advisory
Bodies and Working Groups of FIATA.
After the FIATA World Congress I received many invitations to visit our members across
the world, but due to the situation in the Secretariat and also for budgetary reasons I had to
cut down on my travelling.
So I was very glad that we had our annual Headquarter Sessions in March were I could
meet many members and thus catch up on the very important personal contact which
telephone and Skype conferences will never be able to replace.
The HQ Sessions brought a new record with more than 220 participants from 65 countries.
Again, the level of the discussions of the Institutes, Regions, Advisory Bodies and Working
Groups was remarkable and for those who were not able to participate, there is an excellent
summary in the May edition of the FIATA Review of every session that took place.
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Also for this success, I would like to thank my entire team who showed a great
performance, be it as organizers of the event as a whole or as managers of the various
FIATA bodies in respect of the content of the sessions.
Like in a sports tournament, the
motto of the FIATA Secretariat is
“after the match is before the (next)
match”, so after the successful HQ
Sessions the focus is now on
preparing the next FWC in Delhi
from September 26th to 29th, 2018.
In Delhi I also hope to be able to
attend more of the interesting
sessions than I could attend in
Kuala Lumpur.
Since the January Presidency Meeting took place in Lahore/Pakistan from where it is a mere
50 minutes’ flight to Delhi, I took the opportunity to participate in an on-site visit of the
FWC venue led by Congress Committee Chairman and Past President Stanley Lim.
This was the first time I visited India and I was overwhelmed by the Indian hospitality and
by the magic of that beautiful country. After this visit, I am even more looking forward to
this year’s FWC and I know our Indian friends will be great hosts.
The Delhi FWC will be the first FWC to be opened by our President Babar Badat and my
report would not be complete without emphasizing his and the entire Presidency’s great
work for FIATA.
President Badat is doing an outstanding job representing FIATA internally and externally.
After our Presidency Meeting in Lahore he invited the Presidency to the capital Islamabad
where he arranged a meeting of the entire Presidency plus Director General with the Prime
Minister of Pakistan. I do not think I would be able to do likewise with my Chancellor.
On his recent visit to Turkmenistan, he was treated like a head of state and returned with
the mission bestowed on FIATA by the President of Turkmenistan himself to assist in
founding a freight forwarders association in Turkmenistan, which could then apply for
FIATA membership.
I plan to travel to Turkmenistan within the next couple of months to fulfil that mission and
I hope we will soon be able to welcome our 109th Association Member.
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Which brings me to the subject of membership figures: When I took over from Marco one
year ago, we had 106 Association Members, we now have 108. As regards the Individual
Members, their number has risen by 425 from 5862 last year to 6287 this year, an increase by
7.25%.
I conclude this report by thanking everyone at FIATA for the warm welcome I received and
for making this past year the most exiting year of my career so far.
I am trying to return this support by 100% dedication to my work and to the noble
principles FIATA stands for.
I have become a proud new member of the FIATA family, many long-standing members of
which, including my predecessor as well as current and former members of the Presidency
and the Extended Board, are providing me with good advice, energy and motivation to face
whatever challenges ahead.
Thank you for your support!
Hans Günther Kersten
FIATA Director General
AIRFREIGHT INSTITUTE (AFI)
Dear Members,
At the last 2017 FIATA World Congress held in Kuala Lumpur, Malaysia, I had the
privilege of taking over the Airfreight Institute (AFI) Chairmanship. In addition to the
valuable assistance of the former AFI Chair Mr Rodolfo Sagel and the Deputy Chair Mr
Mike Jones I am more than happy that AFI may rely on the pro-active and wise assistance
from Joana Nunes, Bill Gottlieb, Jean-Claude Delen, Richard Gluck and many other
knowledgeable persons supporting our institute. FIATA and the industry are grateful for
their tireless support spending their valuable time voluntarily for our industry’s progress.
Not to forget my appreciation for the work done by the AFI Manager Daniel Bloch.
IATA FIATA AIR CARGO PROGRAM – IATA FIATA GOVERNANCE BOARD
In 2017, the FIATA constituents of the IATA FIATA Governance Board (IFGB) overseeing
the IATA FIATA Air Cargo Program (IFACP) were introduced to members during the HQ
Meeting by my predecessor and Ms Joana Nunes, who acts as the IFACP Governance
Manager.
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I wish to thank Mr Werner Blaser, Kuehne & Nagel, who has retired from the IFGB and at
this point I am introducing his replacement Mr Henk Venema and Mr Brian Wu who has
replaced Mr Paul Tsui last year, both men from Hong Kong.
The new IFGB Forwarders voting constituents are:
FIATA Region, FIATA IFGB Voting Member, Company and Association
RAMS, Mr Rodolfo Sagel, EAFF S.A., AAACI,
REU, Mr Markus Mücke, Panalpina Management AG/Spedlogswiss,
RAME, Mr Paul Cheetham, Freitan Sa (PTY) LTD/SAAFF,
RAP, Mr Brian Wu, Bel International Logistics Limited/ HAFFA,
RAMS, Mr William Gottlieb, ITN Logistics Services/CIFFA,
REU Mr Henk Venema, DHL Global Forwarding.
In my capacity as the AFI Chair, I now participate at the IFGB meetings as one of the two
FIATA Non-Voting Members. Either Mr Jean-Claude Delen or Mr Daniel Bloch fills the
second non-voting member seat depending on the agenda items.
It is always very hard to predict the future. We were optimistic at the last World Congress
when Mr Rudi Sagel, in his last annual report, announced the Canadian IFACP pilot.
Canada was launched but has now been stalled until further notice allowing both parties
time to agree and overcome certain obstacles. The entire roll-out of the new program was
originally intended to be successfully finalized by the end of December 2018, following a
transition period where the new IFACP was to run in parallel to the IATA Cargo Agency
Program (in non IFACP countries). After that date, the IFACP was to be the only program
in operation.
However, now all the timelines will need to be revised but this will only be done once the
constituents of the IATA FIATA Governance Board, consisting of voting airlines and
forwarder representatives, will discuss and agree to a solution that paves the way to move
forward. As no solution was reached at the 4th IFGB Meeting last March, we have informed
the FIATA membership in detail about the reasons for having placed the new Program on
hold at the last AFI meeting at Headquarters Session. Please consult AFI Doc. 391 Minutes
of 98th AFI Meeting for more details. Following the decision of the IFGB, we once more
thoroughly consulted small, medium and multinational forwarders and now consequently
insist to keep and reflect in an amended IFACP Forwarder agreement the current day-to-
day practices. We also wish to cover every single circumstance that occurs today, as was
agreed with the airlines that there would be no disruption in current practices of doing
business. Such an agreement would bring all forwarders to sign up to the new programme
and to go beyond the threshold numbers in IATA agents and CASS revenue that were
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unilaterally introduced by IATA after the Canada pilot in which were missing some of the
multinationals.
The IATA CEO and Director General Mr. Alexandre de Juniac (see IATA Press Release No.
23) showed confidence in the industry as he highlighted the continuation of freight growth.
I, together with the AFI Crew, also remain optimistic and confident that solutions will be
found to satisfy the commercial air cargo business and replace the old-fashioned Cargo
Agency Program. This solution will enable us to continue the roll-out of the IFACP, agreed
by the IFGB, the airlines, forwarders and supported by AFI and IATA whereby FIATA’s
AFI is representing all air cargo forwarders and logistics providers, the SME’S and major
global players.
IATA FIATA Consultative Council (IFCC) and EUROPEAN AIR CARGO PROGRAM
(EACP-JC)
We strongly opposed several proposals affecting the global forwarding community in
general, e. g. implementation of a late payment fee and new rules for CASS associates. The
new rules for CASS associates would have seen cumbersome financial obligations imposed
unilaterally by IATA without any consultation.
Outlook
Due to the annual reports
deadline it is too early to
predict how 2018 and
forthcoming years will turn out
and whether the growing
factors will continue. IATA
announced in early May that
airfreight growth slowed as
restocking cycles ended.
However, quoting Mr
Alexandre De Juniac: “Looking
ahead we remain optimistic
that air cargo demand will
grow by 4-5% this year. But
there are obviously some
headwinds. Oil prices have risen strongly, and economic growth is patchy. The biggest
damage could be political. The implementation of protectionist measures would be an own-
goal for all involved—especially the US and China".
One thing is easy for me to predict, this year in New Delhi will be the 99th AFI Meeting and
at the next HQ in March 2019, our 100th. I am certain that not only the 99th AFI Meeting
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but also the FIATA World Congress 2018 in my country India will be very interesting and a
great success. Of course, we shall be informing you about the progress of the IFACP items
related to IATA, the IFCC and other AFI related issues i.e. ICAO, GACAG.
There is no success without member’s participation for building a better future. I look
forward to your strong attendance and participation at our AFI meetings and for your
support and input between the meetings. Without the support of the members, nothing that
needs to be achieved can become successful. Once the rollout of the IATA-FIATA Air Cargo
Programme continues, the fullest collaboration and support of all FIATA members will be
key for a swift and successful implementation of the new program and for the continuity of
the improvement and facilitation of the airfreight industry.
Keshav R. Tanna
Chairperson, Airfreight Institute
CUSTOMS AFFAIRS INSTITUTE (CAI)
Dear Members,
You may remember that in Kuala Lumpur I took over the chairmanship of this important
institute, and in doing so I pay tribute to Steve Morris not only for all the valuable work he
did and continues to do. His knowledge on global customs matters is incredible, and his
energy and passion for Customs remains high. I just hope I will be the same (when I reach
his age!)
My thanks also goes to Daniel Bloch, CAI Manager for helping me to settle into this new
role. I trust between us we will serve FIATA well in the years to come.
Membership
I am pleased to say the numbers of
group members is also steadily
increasing. we now have about a
good dozen from all FIATA Regions,
my appreciation to those who have
offered to give up their time to help
and I look forward to working with
you in the future.
I would say at this point that there is
room for more and if you have an
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interest in Customs and would like to join our exciting Customs family then let Daniel
([email protected]) or me know.
WCO – World Customs Organisation
As you can imagine, most of the work of our group is with this organisation and we
acknowledge the work Ferdinand Desmazières does at being the link as our representative
between the WCO and the CAI. The number of committees and sub committees this
organisation has is unbelievable and hence we cannot cover everything, however we do
select the key ones and are actively involved in all decision making.
As FIATA our standing within the WCO is held in high regard, our inputs are both valued
and respected.
One of my tasks in this coming year is to ensure Ferdinand gets the support and guidance
he needs to represent our industry views at the meetings and committees he attends on
behalf of us all.
Outlook
There are a number of topics facing us in the coming years, from E-Commerce to Safety and
Security data, along with new technologies like BLOCK CHAIN and Artificial Intelligence,
as well are 3D printing, all require changes in legislation or working practice to keep up
with them.
My plan is that CAI will meet that challenge and offer quality and compliant feedback and
input to all the topics in 2018.
Steve Parker
Chair, Customs Affairs Institute
MULTIMODAL TRANSPORT INSTITUTE (MTI)
On some occasions when I sit down to write a report of MTI activity, I can reflect on intense
debate and representation of our industry to regulators and associated stakeholders. A
great example was the amendment to the SOLAS Convention that introduced the term
“Verified Gross Mass” into our everyday business language. In this report, I cannot reflect
on such encounters, however, I can detail to FIATA Members our progress on a number of
key issues. Of course, we have many “slow burn” subjects that remain on working group
agendas for many years and an example is the Rotterdam Rules initially signed by some
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countries in 2009. This proposed new Convention is still being monitored by MTI. While it
appears to have stalled there are still bodies urging for its introduction.
MTI consists of three individual working groups for Road, Rail and Maritime transport.
The three individual Chairs come together at the HQ session and at the World Congress to
update FIATA Members on the main topics of activity. A brief summary of the past year’s
work follows.
Rail
Working Group Rail has had a busy year under the leadership of Dr Ivan Petrov, Senior
Vice President of FIATA.
In June 2017, the first meeting of the enlarged Working Group FIATA / OSJD on Rail
Transport was held in Odessa, Ukraine. This was the first event co-organised by FIATA and
OSJD after signing a cooperation memorandum in 2016. The meeting was hosted by
UKRZOVNISHTRANS and PLASKE company.
The focus of this meeting was on the Southern rail route via Kazakhstan – Caspian Sea –
Azerbaijan- Georgia and via the Black Sea to various European countries as an alternative
to the well-known Northern routes via Russia.
The “One Belt, One Road” (OBOR) strategy boosts the fast growth of international railway
freight; especially the China-Central Asia and China-Europe block train services. Currently
over 10 cities in China run block trains to over 11 destinations in 7 European countries.
Volumes on China-Europe block train are multiplying in growth. By 2020, it is planned to
reach 5000 trains per year.
The FIATA / UIC Market Place
seminar was organised in
Duisburg, Germany on 14 and
15 September 2017. The event
was attended by about 80
delegates and driven by the
topic of the incident in Rastatt.
The key aim of the Market Place
meeting was to provide a lively
exchange platform for railway
undertakings and freight
forwarders to create an
opportunity for effective
transport solutions and
increasing the attractiveness of
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railway transport on the Eurasian rail link.
There are many barriers and lack of coordination which prevent for instance that
locomotive drivers can also work cross-border in other countries. It is a challenge for the
“old” European railways to match the dynamic power of railway companies in Asia.
Nevertheless, there was a lot of success in the railway business over the past years. The
freight forwarders need transport capacity on all modes of transportation (rail and road).
Road
The Road Working Group Chairman, Tomas Suhanyi, has had a full agenda dealing with
the posting of workers within the European Union and the related impact on truck drives;
however, the usual topics of TIR, e-CMR and secure parking have occupied a lot of debate
within the WG.
There are now seventy-three countries that have acceded to the TIR Convention, 1975, the
most recent being the Republic of India and Qatar. The TIR Convention is the global
standard for Customs transit, to facilitate trade and the seamless and secure movement of
goods across borders. The United Arab Emirates has announced that the TIR system has
been fully implemented and is ready to begin operations in Dubai, Abu Dhabi and Sharjah
soon. The UNECE/IRU e-TIR pilot project between Iran and Turkey was a success from
multiple perspectives. The project demonstrated that the full computerisation of TIR is
feasible and that procedures implemented in this pilot could serve as a basis for similar
projects in any TIR Contracting Party wishing to make progress towards the full
computerisation of TIR.
The UN Centre for Trade Facilitation Electronic Business (UN/CEFACT) has launched a
project with the aim of developing and publishing an international XML “Electronic
Consignment Note” message (eCMR) for international and national transportation of goods
by road. Such a standardised electronic version will ensure compatibility between all future
digital solutions for international road transport and will facilitate the electronic exchange
of information with the systems used for other modes of transport. Turkey is the newest
country to opt for digital consignment notes, with its ratification of the e-CMR protocol on
the 31th January 2018.
A complete list of countries that have ratified the additional Protocol to the Convention on
the Contract for the International Carriage of Goods by Road (CMR) concerning the
Electronic Consignment Note is available at the UNECE website.
An exchange of view took place on progress in the various EU Member States with regards
to the acceptance of e-transport documents (eCMR) which replaces the traditional
consignment note. The CMR is documentary evidence used by the various parties in the
supply chain and also serves as a control document during inspections. It was noted that
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the electronic consignment note has the same consequences as the paper version as far as
the liability regime is concerned. The CMR Convention continues to apply in the same way
to the electronic consignment note.
Sea
The past year has seen a wide range of work undertaken by the Working Group Sea driven
by the Chair, Jens Roemer. As well as the regular regulatory matters being dealt with
(Revision of the York Antwerp Rules, amended Service Tax Rules in India, revision of
Incoterms and our ongoing dealings with the US Federal Maritime Commission (FMC), to
name a few), Jens began an initiative concerning supply chain visibility in maritime
transport and then joined with the Advisory Body Information Technology (ABIT)
concerning digitalisation of FIATA documents. Another initiative of Jens was to create a list
of topics where the WG advisors agreed that focus should be maintained on driving service
improvements. This is dealt with on our agenda as “Best Practices”.
The reform of the Indian tax system is a massive project and along the line there is
confusion and questions of definition. Whilst the Working Group’s press release (FIATA
DOC. PR17/02 03/02.2017), was helpful and the view seems to have been generally
accepted, questions related to other issues remain. One such issue is the fact that profit
share on freight amongst forwarders acting as carrier appears to be taxable.
The Working Group will keep this item under review and can rely on our WG Advisor
from India Mr Shantanu Bhadkamkar for feedback.
A problem has been caused with ever bigger container ships. Whilst port and terminals
may have invested in sea side operations to accommodate the bigger vessels, the land side
infrastructure is often lagging behind. It has also been proven that terminals struggle with
the higher peaks in the terminals as a direct consequence of bigger vessels and higher call
sizes. This situation has led to congestions in many ports and terminals around the world.
The Working Group will continue to observe the situation and items of concern are likely to
find their way into the “Best Practices”.
The International Chamber of Commerce will be introducing a new version of Incoterms®
from 2020 to be known as the Incoterms ® 2020 Rules. FIATA is fortunate to have some
very knowledgeable practitioners on the FIATA Incoterms® sub-group led by Tej
Contractor of India with support from the other Institutes and Advisory Bodies.
There has been a revision of the York Antwerp Rules (YAR) and this has been studied by
the WG as the main aspect concerning freight forwarders is that these rules cover General
Average. The new rules leave the main principles of General Average intact and take away
some advantages of the ship owners. Most shipping lines still refer to the 1994 rules, which
18
is difficult to understand as the new rules where driven by shipping line interest. It is
important to note that it has been confirmed that the FIATA B/L will not require
amendments, as it refers to the YAR in general terms.
The FMC has investigated the charging of demurrage and detention fees by container
shipping lines. Shippers and intermediaries have filed a petition in December 2016 claiming
them to be unfair in certain scenarios. It has been suggested to establish a rule that would
limit situations in which detention and demurrage may be collected.
A public hearing was conducted by the FMC that included stakeholders on the petition
such as importers, shipper associations, transport providers, carriers and terminal
operators. The Working Group will follow developments closely. The charging of container
demurrage and detention features high on the Working Group “Best Practices” agenda.
Finally, this has been an exciting time with technological developments in the maritime
sector. Blockchain has become the new mantra. The WG Sea held interesting discussions
inspired by their session in May 2017 which took place “back to back” with the RAME Field
Meeting. The advisors began exploring whether FIATA could develop a “supply chain
visibility tool” to enable all FIATA forwarders to compete with the larger firms whose IT
development budgets are huge. In Kuala Lumpur at the WG Meeting aligned to the
Congress this was developed in cooperation with Anne Sandretto as Chair of ABIT and she
then organised a workshop to coincide with the London meeting of the WG in February
2018. Many WG Advisors arrived a day early for a demonstration of an e-FBL from a
digitalisation supplier. ABIT are preparing a pilot study. Also, before the London WG
Meeting our hosts (BIFA) organised a seminar held at the TT Club covering cyber security
and container safety. Together with the UK attendees the audience of thirty people were
able to socialise afterwards courtesy of BIFA.
Robert Keen
Chairman, Multimodal Transport Institute
ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA)
The Advisory Body International Affairs (ABIA) celebrates its fourth year after being
founded. In this short history, the body has worked to enhance FIATA’s visibility and
presence with several relevant international and multilateral organizations advocating the
importance of “Logistics & Connectivity” in achieving economic and sustainable growth on
a global scale.
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This is my first year as ABIA Chairman and I look forward to continuing the success this
body has so quickly achieved. I wish to thank our current President Mr Babar Badat, the
Presidency and the Extended Board for entrusting me with this important and challenging
role.
This year ABIA has continued its work with the UN receiving invitations to participate in a
number of high level meetings from the United Nations High Level Political Forum (HLPF)
to ECOSOC Partnership Forum in our efforts to highlight the important role our industry
will play in achieving the 17 Sustainable Development Goals (SDGs). For the upcoming UN
HLPF we have appointed our very own Mr Issa Baluch, FIATA Past President to speak on
behalf of the freight forwarding industry at the SDG Business Forum in July. The UN is in
high demand this year to gather perspectives from emerging markets in our sector as they
view trade as the connected link that could bring nations together towards a common goal.
Staying on the topic of the UN, the World Trade Organisation (WTO), for the first time, has
opened its door and invited the private sector to engage with trade policy officials on the
future of the industry. This is a rare occasion as private sector would normally have had to
engage bilaterally with individual member states, but have now been afforded the
opportunity to connect directly with an international body, the WTO, on trade related
matters. These discussions fall under the WTO Trade Dialogues which will be ongoing and
for which FIATA has been invited to the very first one in July to contribute input.
The trade dialogues will also
help us gather an inside view
of the WTO Trade Facilitation
Agreement (TFA) which was
struck in 2013 in Bali and
successfully ratified. Now as
the agreement focuses on
implementation, the private
sector will need to play a key
role to ensure that future
facilitation measures are
welcomed by our industry as
we are the ones to incorporate
these changes into our day to
day processes.
This year ABIA has also developed its own Rules of Procedure (RoP) document. The RoP
has gained approval from our esteemed Presidency and will now be up for adoption at the
next 2018 FIATA World Congress. ABIA is the first body to propose a specifically tailored
RoP document tailored to the work being undertaken.
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The past year also saw us focusing on the need for collecting data from our membership
that would enable us to better informed and meaningful discussion with multilateral
organizations backed by statistics. We had launched a survey last year and presented the
results at our latest 2018 FIATA HQ Session.
The survey helped confirm our industry’s growth but also identified areas reported to
restrict trade. Some of the key trade barriers reported include lack of infrastructure and
stringent trade regulation. The survey also emphasized the importance for members to
remain in contact and engage with their local Associations to help identify local barriers of
trade. Overall, we discovered that surveys are a great tool to communicate with our large
membership body and gather aggregate data that would help us make better decisions on
the direction of our association.
ABIA has also extended its work with the World Bank. Following their participation at the
2017 FIATA World Congress in Kuala Lumpur, ABIA connected with them to circulate
details for the Logistics Performance Index (LPI) to FIATA members. During our ABIA
meeting at the congress, the World Bank confirmed that FIATA is the largest contributor of
data to their LPI which is a great milestone considering the hundreds of partners that the
World Bank works with on such an initiative.
Our annual meetings this year have also focussed on reviewing and anticipating the recent
protectionist trade movements across the world, particularly those in the United States and
the retaliatory trade tariffs. Our recent meeting in Zurich at the 2018 FIATA HQ Session
helped instilled confidence that recent tariffs imposed by the U.S would unlikely result in
prolonged and sustained protectionists’ efforts, as the world had tasted the many benefits
that international trade has to offer. The International Trade Centre was present at the
meeting and confirmed they were ready to mediate diplomatic trade discussions in order to
minimize any further threats of a trade war and believed that other international
institutions were also playing their part. History has displayed that those countries that
take individual action in relation to trade without utilizing the WTO or an international
body framework of discussion had resulted in repeals of such legislation. FIATA believes a
collaborative approach is always the best approach for including partner states and
relevant stakeholders like private sector in discussions prior to action would result in better
trading conditions and opportunities for local economic growth.
With the accumulation of these initiatives, ABIA aims to continue to extend its reach into
the international community and deepen its access into discussions. As an international
organization, we have an obligation to connect at the international level if we are to
influence meaningful changes throughout the logistics industry.
Moving ahead we look forward to working more closely with our Association Member
network to take into account their local challenges & needs and identify how ABIA can
assist at the international level. We very much appreciate the support from FIATA’s
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membership and we look forward to dealing with the upcoming challenges with their
continued support.
Paul Golland
Chairman, Advisory Body International Affairs (ABIA)
ADVISORY BODY INFORMATION TECHNOLOGY (ABIT)
We are pleased to present this annual report of the Advisory Body Information Technology
outlining our achievements in the past year. Our members and their experience are
paramount in our every IT initiative and project, which is why this year we focused on
understanding FIATA members’ needs, dialoguing with delegates of the diverse FIATA
entities and recognizing how the ABIT should support the adoption of technology
throughout the logistics and freight forwarding industry. We think that you will see this
demonstrated in the way we communicate and cooperate inside and across FIATA.
Whether it is by organizing expert working groups, attending the Sea Group Meeting and
dialoguing with its members, organizing educational sessions with top-level speakers at the
FIATA Headquarters’ Session and Congresses, or consulting the Advisory Body Legal
Matters, we are committed to communicate and construct networks with relevant
stakeholders. We design our plans first and foremost with our members in mind.
During this year, we made important progress in advancing and completing the major
initiatives of our short-range plan. This includes the subject of digitalization of the FIATA
documents, which is strategic for our transport and logistics business. We have started
several pilot projects to define and test the safe digitization of the FBL. Participating
association members include TLF – France, USER – Romania, FENEX – The Netherlands,
VLA – Vietnam, and SAAFF – South Africa. Support from the Advisory Body Legal Matters
and the Multimodal Transport Institute was essential to define the scope of the project and
outline the strategic direction of the ABIT. To our milestones, we can also include the
Memoranda of Understanding signed with essDOCs and GS1.
We also further matured our long-range plan, which will seek to define a business model
and specifications for a digital FIATA platform, enabling considerable efficiencies in our
field. We will examine the development of an international secure digital platform
managed by FIATA for the collection, treatment, exchange and storage of data and/or e-
transport documents regarding transport and logistics services provided by FIATA
Members allowing tracking, tracing and trust in digital exchanges for FIATA members and
their clients. Among our medium- to long-term objectives we plan to develop a Proof-of-
Concept (PoC) which analyses the possibilities of allowing users to share data in a safe and
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secure network. Such a prototype will help us demonstrate the feasibility and practical
potential of a blockchain project. We are now working in a world where the process is run
by the technology and supported by the people and we want our members to receive all the
support they need in this digital era.
We are also exploring the use of
blockchain and artificial
intelligence and the opportunities
these technologies can bring to
our members. Blockchain and AI
are two technological trends that,
while ground breaking in their
own right, have the potential to
become even more revolutionary
when put together. Both serve to
enhance the capabilities of the
other, while also offering
opportunities for better oversight
and accountability. In this regard,
we look forward to our next
session at the FIATA World Congress 2018 where the ABIT will feature an educational
session on cutting-edge AI technologies such as machine learning, artificial neural
networks and deep learning. Furthermore, the session will also cover the topic of
blockchain and how it can benefit the logistics industry. Focusing on concepts such as
transparency, fraud prevention, security, visibility, traceability, the session will have a
didactic approach while opening the minds of delegates about how FIATA can implement
this technology to optimize business transactions and trading relationships of its members.
I am sure that you will notice that in all that we do as an Advisory Body, our ultimate goal
is to inform and provide our members with the necessary insights and knowledge on how
to use technology to achieve their mission and advance their services to unsurpassed
quality.
What is not adequately described in these pages is the passion that all ABIT constituents
bring to their work every day. We all feel the deep responsibility we have to this
remarkable advisory body and it is a joy to be able to work with such extraordinary people.
It is their dedication and passion for our mission that makes the ABIT successful.
Anne Sandretto
Chair, Advisory Body Information Technology (ABIT)
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ADVISORY BODY LEGAL MATTERS (ABLM)
IATA-FIATA Air Cargo Program (IFACP)
The Chairman of the ABLM Mr Richard Gluck continues to assist the leadership of the Air
Freight Institute in launch of the new IATA-FIATA Air Cargo Program. At the IATA-
FIATA Governing Board (IFGB) meeting immediately following the World Congress in
Kuala Lumpur we were able to report that the initial pilot program for Canada had been
cleared by outside competition law counsel, and was ready to be launched. An
international law firm had also been engaged by the joint programme, as required under
the IATA-FIATA Cooperation Agreement, to review for competition law compliance the
local financial criteria to be used in each country or region, as the programme is rolled out
worldwide.
However, roll out of the program has been delayed pending resolution of concerns raised
by the multinational forwarders, and supported by the small and medium sized
forwarders, over the terms of a proposed new Forwarder Agreement between the airlines
(represented by IATA) and the forwarders. Specifically, IATA has proposed to shift certain
liabilities to the forwarders, contrary to the “no disruption to existing practices” principle
upon which the modernization program is based. The ABLM chair has participated with
the FIATA representatives to the IFACP in discussions with the airlines, IATA staff, ABLM
co-opted insurance industry representatives and counsel for the multinationals on this
issue. It is hoped that an agreement can be reached with the airlines, and that the roll out
can resume, prior to the next IFGB meeting in Delhi immediately following the FIATA
World Congress.
Review of 1996 FIATA Model Rules for Freight Forwarding Services
The current version of the FIATA Model Rules for Freight Forwarding Services was
formulated in 1996, to assist associations and forwarders in those countries that did not
have general terms and conditions for freight forwarding services at that time. Since then,
the FIATA Model Rules have been used as a starting point or base line by a number of
national associations or forwarders when they draw up their standard trading conditions or
terms.
After discussion in the ABLM pre-meeting during 2018 Headquarters Session, it was
decided that:
ABLM would like to conduct a survey among members to know how many
countries/regions have used the FIATA Model Rules in their Standard Trading
Conditions or national legislations;
ABLM would invite Association Members and individual companies to share their
Standard Trading Conditions with ABLM so that they could be made available as a
resource on FIATA website
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ABLM would see if the current FIATA Model Rules need any update now that
forwarders have transformed from traditional forwarding companies to integrated
logistics providers and their business models have changed;
ABLM would consider issuing some recommended best practices on how to use the
Model Rules.
Best practices against corruption-- joint effort with WCO
In the ABLM Session in Dublin, participants had shown great interest in anti-corruption
best practices. Mr Kunio Mikuriya, WCO Secretary General, had offered to assist FIATA
with developing best practices recommendations. As a follow-up, ABLM invited Ms
Brenda Mundia, Deputy Director of WCO Capacity Building Directorate, to the ABLM
Session in the 2018 Headquarters Session to share their experience and give more guidance
to national associations and freight forwarders.
After the presentation of Ms Mundia Delegates in the ABLM Session again raised a series of
difficult questions, based on problems that have arisen in many countries.
ABLM considered it helpful to issue best practices against corruption for FIATA members
and Ms Mundia has expressed the commitment to assist. In addition, Ms Mundia
mentioned that FIATA had signed three Memoranda of Understanding with WCO in the
past, and suggested to review if the MOUs need to be updated.
ABLM is currently discussing with CAI, the institute in charge of communicating with
WCO, to decide the best way forward and how it might assist in this endeavour.
Digitization of FIATA Multimodal Transport Bill of Lading
ABLM supported ABIT’s leadership in conducting a pilot project to explore the digitization
of the FBL so that it can be used electronically. The ABLM Chair met in Kuala Lumpur with
the Chair of ABIT to advise on the form of agreement to be used with ESS, which has
proposed a model that would allow a staged transition to a wholly electronic bill of lading
process over time. ABLM members also expressed a keen interest in exploring how
blockchain technology might be used to protect the integrity of the FIATA documents in
letter of credit transactions
and in establishing
entitlement to the goods for
delivery purposes. ABLM co-
opted expert Professor
Manuel Alba Fernandez has
agreed to assist in developing
a paper that would address
legal issues related to the use
of blockchain technology by
freight forwarders.
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ABLM now has 12 members and 12 co-opted members from 17 countries around the world.
ABLM received regional and risk management reports on legal development affecting the
industry from many of them, and they contributed actively to the initiatives described
above. They deserve FIATA’s thanks for their active and hard work.
Richard D. Gluck
Chairperson - Advisory Body Legal Matters (ABLM)
ADVISORY BODY SAFETY AND SECURITY (ABSS)
At the HQ session this year in Zurich, Mr Brian Lovell of AFIF, Australia, was nominated
and granted the position of Vice Chair ABSS. Given the number of interesting security
topics raised in the past year which ABSS has had on its agenda, it will be beneficial to
finally have a vice chair.
One particular area that has garnered a lot of attention this year is EU Data Protection
Laws.
At the recent 2018 FIATA HQ Session, ABSS covered this new regulation with an
introductory presentation to shed light on some of the potential risks and best practices that
freight forwarders could follow. EU Regulation 2016/679 aims to protect natural persons
with regard to the processing of personal data and on the free movement of such data, and
repealing Directive 95/46/EC. This came into effect on May 25th, 2018 and is applicable to
any company that stores or processes personal information of EU citizens which included
freight forwarders. Overall, the new laws are meant to create awareness of both companies
and shippers on the type of data that is stored and shared among stakeholders in the
supply chain. This will ultimately increase confidence in the services delivered by
forwarders.
Another area of continuous development which FIATA follows closely is dangerous goods.
There were changes this year in UN Packing Instructions for Lithium Ion and Metal
batteries with new marks and labels to be introduced. Packages containing cells or batteries
must not be placed in an over pack with packages containing dangerous goods classified in
Class 1 referencing PI 965 and 968, Sections IA and IB. These have been in effect since
January 2018. The same restrictions apply for stowage of packages and over packs on an
aircraft. The segregation requirements do not become mandatory until 1 January 2019, but
operators should take steps to implement them as soon as possible.
26
With significant time having passed since the Maersk cybersecurity incident, we were able
to review with members this year some key learning points from the experience.
The importance of having a plan B and carefully thought out storage of company
information/software on back up servers separate from the main system was discussed by
members. Having the majority of systems on one backbone can lead to a vulnerability if it is
breached. Having a plan B can aid quicker recovery and continuation of business and avoid
disruptions therefore we highly encourage all members to implement back up protocols
that would enable a continuation of operations should a security breach occur.
Terrorism was also another prevalent topic in the news this year. We discovered that the
international community had not yet defined terrorism despite several attempts throughout
the decades. In 2017 alone, terrorist activities reported 59 deaths and 527 injured. Currently,
the Global focus is on air travel and the collection of data with many travellers unaware of
how much information is collected that could lead to a greater push for advance passenger
information.
What if it was cargo and not passengers as number 1 priority for attacks? While we already
have many security requirements to meet, the industry would see even greater controls
either through regulatory or industry bodies or even voluntarily to protect our businesses
in the areas of road transport and trucking. We have all seen the capability for trucks to
cause death and destruction not forgetting the first attempt to blow up the World Trade
Towers in New York as a truck bomb. Trucking is integral in the movement of cargo by sea,
air or rail, or road. Every fleet manager if not already will be focusing or should focus on
how they can ensure the next truck used for bombing or driving over people is not one of
theirs.
Going forward it is imperative that industry and governments work together to achieve the
right balance of protecting our industry against what has become a negative part of our
daily lives affecting the way we live. FIATA and its members must work with governments
27
to provide input on the industry’s practices, we must be vigilant of unusual freight requests
and be proactive to accepting security requirements.
Concluding this report, I wish to thank the members of ABSS who willingly dedicate their
time to provide consistent feedback and input on related matters which affect our industry.
We look forward to future challenges in full assurance that ABSS, supported by the
Secretariat, and our members can continue to strive and enhance the safety and security of
our industry.
I therefore look forward to seeing you in New Delhi. As has become a trademark of ABSS
and which will continue well into the future, we can promise you exciting presentations
and speakers. See you all in New Delhi!
Yours Sincerely,
David Fielder
Chairman, Advisory Body Safety & Security
ADVISORY BODY OF VOCATIONAL TRAINING (ABVT)
I welcome the publication of FIATA’s Annual Report for 2017/2018, which outlines the
significant work undertaken by the Advisory Body Vocational Training in meeting its goals
and objectives during the year.
In March 2017 we launched the first action plan to update the FIATA Minimum Standards
in Freight Forwarding which have a central ambition of supporting FIATA association
members in developing training programmes leading to the FIATA Diploma in Freight
Forwarding. I am confident that we can reach a wider scope and this report highlights the
extent of the significant progress made in 2017 towards this ambition.
Currently, 47 Association Members in 43 countries have an up-to-date validation done by
the Validation Working Group and are eligible to issue the FIATA Diploma in Freight
Forwarding. During the latest Validation Sessions at the FIATA World Congress 2017 in
Kuala Lumpur, Malaysia, and the Headquarters’ Session 2018 new members were added to
this repertoire - TFLA, AFFM, MIFFA – our association members in Chinese Taipei,
Morocco and Myanmar. Congratulations!
Few areas are more pivotal to our objectives as is the FIATA Higher Diploma in Supply
Chain Management, where progress was also made. 18 Association Members in 16
countries have validated the FIATA Higher Diploma in Supply Chain Management. 15
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have duly validated and are entitled to issue this diploma distinction. During the last
Validation Session at the FIATA HQ Session 2018 a new member was added to this
repertoire, FENEX – our association member in The Netherlands.
The Working Group Validation looks forward to more members coming forward to
validate their training programmes, thus improving the learning landscape of our industry
in their respective countries and enabling FIATA to contribute globally to vocational
training and professional education of freight forwarders. We believe that these learning
programmes designed and conducted by association members in conjunction with FIATA
are fundamental to the industry’s advance, the freight forwarders’ personal fulfilment and
the building of successful economies.
To date over 14000 FIATA Diplomas and around 250 FIATA Higher Diplomas have been
issued all over the world. We see this as a start and we are determined to maintain the
momentum, progress and build a strong reputation of the FIATA certifications.
FIATA Validation of Training Materials – The ABVT’s Validation/Re-Validation Working
Group met at the 43rd Validation Session in March 2018, within the framework of the
FIATA Headquarters’ Session, to successfully validate and revalidate Training Programmes
conducted by FIATA Association Members around the world. Following associations
validated their material:
Association des Freight Forwarders du Maroc – AFFM - re-validation of FIATA
Diploma in Freight Forwarding
Federation of Freight Forwarders’ Associations in India – FFFAI - re-validation of
FIATA Diploma in Freight Forwarding
Netherlands Association for Forwarding and Logistics – FENEX - re-validation of
FIATA Diploma in Freight Forwarding and new validation of the FIATA Higher
Diploma
Association of Transport Forwarding and Logistics Organizations of Ukraine –
UKRZOVNISHTRANS – revalidation of the FIATA Higher Diploma
Association of International Freight Forwarders of Ukraine – AIFFU – revalidation of
the FIATA Diploma in Freight Forwarding
Asociación Logística de Chile – ALOG – revalidation of the FIATA Diploma in
Freight Forwarding
Awarding of FIATA Diplomas –From 1st January, 1996 to 18th June, 2018 a total of 14'078
FIATA Diplomas in Freight Forwarding have been issued. Top ten countries in terms of
number of issued diplomas include: France (1447), Islamic Republic of Iran (850), Singapore
(809), Poland (730), Ukraine (660), Kazakhstan (642), China (625), Ireland (556), Ghana
(537), and Canada (504).
FIATA/TT Club Young International Freight Forwarder of the Year Award (YIFFY)
Award Competition 2016 - The Young International Freight Forwarder of the Year Award
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continuous being a pillar of our congresses and now enjoys a wider presence in the social
media. The four regional finalists for the 2017 competition were:
Region: Africa/Middle East: Tinasche Chiwanza – Zimbabwe (SFAAZ)
Region: Americas: Bradley Davis – Canada (CIFFA)
Region: Asia/Pacific: Nian Wan – China (CIFA)
Region: Europe: Nina Brose – Germany (DSLV)
Congratulations to the global winner Mr Davis! The judges stressed that the dissertations
this year were of a particularly high standard. The work of the entrants as a whole
admirably demonstrated the complexity of processes carried out within the global supply
chain and the logistics skills employed in its service. The diverse subjects covered by the
dissertations included the transport of Zoological Animals, Olympic Team Equipment,
Agricultural Chemicals, Wine and Raw Tea, a clear example of the variety of challenges the
industry is facing to provide crucial trade services.
We already look forward to the 2018 winners who will be announced at the FIATA World
Congress in New Delhi. We have received 18 dissertations and at this time of the year we
are reading and assessing them carefully. Thanks to all the judges that make this award
possible! Our presence at the Gala Dinner this year is also noteworthy as the global winner
be announced then, providing all delegates the opportunity to celebrate with them.
FIATA Higher Diploma in Supply Chain Management (FHDSCM)
The ABVT Validation Working Group is ready to validate programmes leading to the
FHDSCM. It is strongly recommended that applicants for this qualification should be in
possession of the validated and current FIATA Diploma Programme before enrolling and
applying for the FHDSCM. Association Members from Netherlands, Singapore, France,
Ukraine, Belarus, Kazakhstan, Russian Federation, Vietnam, Ghana, South Africa, Egypt,
Nigeria, Chinese Taipei, Lithuania and Pakistan have successfully validated their
programmes. A total of 248 FIATA Higher Diplomas have been issued.
Trainer Certification
The ABVT is also pleased to announce over 300 Trainer Certificates have been issued till
date. A special highlight is the development of the online Train-the-Trainer course that is
being developed in conjunction with the FIATA Logistics Academy and the FIATA
Foundation – Vocational Training to develop a blended learning approach. We are very
excited about the results and look forward to more interactive classroom courses where
trainers will have the opportunity to conduct more practical activities and design a
collaborative environment.
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Collaboration with the Organisation for Co-
operation between Railways (OSJD) –
FIATA confirmed its support for the training
pilot project initiative presented by the
FIATA’s Association Member
UKRZOVNISHTRANS, ASSOCIATION OF
TRANSPORT FORWARDING AND
LOGISTICS ORGANIZATIONS OF
UKRAINE and conducted in conjunction with
the OSJD. The initiative covers a Vocational
Training Program and its purpose is to obtain
the in-depth theoretical and practical
knowledge, skills, ways of thinking, professional qualities, moral and ethical values,
sufficient for the further successful professional activities. The Vocational Training Program
complies with:
- Agreement on International Goods Traffic by Rail;
- UN Convention on International Multimodal Transport of Goods;
- Convention on the Contract for the International Carriage of Goods;
- Convention on the Common Transit Procedure.
We certainly look forward for similar synergies that help FIATA bring education to the next
level.
Yours Sincerely,
Thomas Sim
Chairperson ABVT
FIATA FOUNDATION - VOCATIONAL TRAINING (FFVT)
Although the FIATA Foundation - Vocational Training (FFVT) is a separate legal entity, its
activities are traditionally included in the FIATA Annual Report.
The elections for the Council Committee and the Management Committee FIATA
Foundation – Vocational Training were held during the FFVT Meeting in Kuala Lumpur /
Malaysia on October 3rd, 2018. Those elected are:
President: Mr Jean-Claude Delen
Council Members: Mr Christopher J. Gillespie
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Mr Francesco S. Parisi
Mr Stanley Lim Hwee Hong
Ms Barbara M. Wieser
Management Committee: Mr Thomas Sim
Mr Issa Baluch
Mr David K. Nutakor
Ms Antonella Straulino
Ms Verena Schaer
Mr Artem Khachaturian
Mr Rolando Alvarez
A Pre-Qualification for a Train-the-Trainer Course in Iran has been conducted from January
28th - February 1st, 2018.
The Pre-Qualification showed a positive result and all training needs analysis have been
sent to the FIATA Secretariat along with a budget for the course. All documents need to be
approved by Mr Thomas Sim, Ms Verena Schaer and Mrs Barbara Wieser before being
presented to the FIATA Foundation Council for final confirmation to conduct a Train-the-
Trainer Course in Iran.
Further Train-the-Trainer courses in Cameroon, Uganda and Mauritius are in planning and
Pre-Qualification Evaluations will be organised as soon as the FFVT has all necessary
documents on hand.
This year was marked by the start of an essential project that will change the way we teach
and learn at the FFVT. We are working on the development of an online train-the-trainer
course that will accompany trainers in their learning journey. This initiative will include the
development of a blended learning approach and make our classroom sessions more
interactive and collaborative.
The Foundation takes the opportunity to warmly thank its regular Sponsors and all those
FIATA Individual Members which have voluntarily increased their annual membership fee
by an optional donation of Swiss Francs (CHF) 25 towards the Foundation’s initiatives. A
large number of the members have chosen to donate this way.
During the World Congress in New Delhi/India, the Foundation will again organise its
traditional raffle during the Gala Dinner.
Jean-Claude Delen
President of the FIATA Foundation
32
FIATA LOGISTICS ACADEMY (FLA)
The FIATA Logistics Academy’s purpose is to shape an education system for the logistics
industry offering up-to-date skills and knowledge that lead to excellent career paths for
young professionals. A strong focus on online learning underpins our policy and the
services we provide. During 2017, a huge milestone for FIATA was reached with the
commencement of the e-learning project mission. This project presents the opportunity to
offer online courses leading to the FIATA Diploma in Freight Forwarding. This year the
project sets out the development of two online courses: Introduction to Global Logistics
Management Theory & Practice and Maritime Transport. The chosen learning platform,
open edX, enhances the options for collaboration between experts and learners, and
modernises our educational offering to meet the challenges of the 21st century. To promote
collaboration and provide seamless pathways for logistics professionals’ learning we
support the implementation of social learning. The introductory course will be launched at
the FIATA World Congress 2018.
This year we have been working on other
system changes to help create the right
conditions for FIATA to achieve progress
in the educational realm. This included:
• Developing a new structural model
for training and education at FIATA.
Changes are based on the
recommendations of the Future of
FIATA discussions and are designed
to provide a system that is easier to
access, more member-focused and
efficient. In their General Meeting 2018 at the FIATA World Congress in New Delhi,
India, FIATA association members will decide on the merger of the FIATA Logistics
Academy and the Advisory Body Vocational Training resulting in the creation of a
new institute, the FIATA Academy.
• Developing digital learning technologies to help ensure young forwarders are
digitally fluent for the future
• Redesigning the Train the Trainer courses offered by the FIATA Foundation –
Vocational Training to be more responsive to the needs of our association members
in developing countries. Here it is worth to mention that the FLA is collaborating
33
with the FFVT to develop an online Train-the-Trainer course and a new blended
learning approach.
We will continue to provide the sector with the core educational strategy it needs in view of
global sector growth and population dynamics. Through all our engagements we have been
inspired and energised by the commitment to delivering excellence in education. We are
confident our combined efforts are helping shape the industry’s educational landscape with
high quality teaching, a strong curriculum and personalised learning pathways.
Issa Baluch
Chairman
FIATA Logistics Academy
WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL)
I am grateful to have the opportunity to compose WGSL 2nd ever annual report and
highlight some of the activities we have undertaken over the past year. More and more we
hear the topic of sustainability being discussed at local and international levels with each
stakeholder trying to understand where they fit in the equation and how they can
contribute. Our sector, seen as a key driver of Greenhouse Gas Emissions, plays a critical
role in identifying sustainability measures that would allow us to strive in the coming
decades and continue to be a stimulus for global economic prosperity.
This year the WGSL published a webpage on the FIATA website dedicated to its activities.
This is the first working group to have such a page within FIATA. We will be updating this
page with news and outcomes relevant to environmental logistics issues.
In order to be more engaged with UN bodies surrounding environmental issues, FIATA
gained its accreditation this year to the United Nation Environmental Program (UNEP) and
will have access to documentation and meetings pertaining to the bodies activities for its
upcoming UNEA-4 meeting. During UNEA-3, UNEP advised they were striving towards
enforcing new emissions standards and improving chemical labelling schemes. WGSL had
released a strong position two years ago on the concept of imposing emissions standards
asking policy makers to not only focus on enacting legislation that will set Greenhouse Gas
(GHG) target emissions for which the industry must remain compliant, but to look at the
glass half full and enact policy that would enable infrastructure development, technological
research, and tracking procedures leading to enhanced connectivity and efficient transport
operations that would in turn stimulate economic growth.
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In addition to UNEP’s work, another critical body which our group follows closely is the
United Nations Framework Convention on Climate Change (UNFCCC) which struck the
global climate change agreement in Paris in 2015. We will be engaging much more with the
Transport Decarbonisation Alliance for Faster Climate Action (TDA) a liaison group with
UNFCCC created to be a multi-stakeholder alliance consisting of countries, cities – regions,
and private sector companies that are committed to ambitious action on transport and
climate change during the event.
The shipping industry has also made great strides in environmental protection. The
International Maritime Organization (IMO) has agreed to halve shipping’s GHG emissions
by 2050. WGSL is coordinating with FIATA’s Working Group Sea Transport group to stay
on top of developments and see how we can further advise our members.
In addition to our work at the global policy level we are also investigating answers to
questions such as how to measure carbon emissions. In this light, we have engaged with
the GLEC group to better understand their standard and contribute feedback from an
industry’s perspective. We are also investigating already published carbon calculator
solutions that would help our members track and reduce their emissions output.
We are looking forward to two key events in the coming year’s COP24: The 24th session of
the Conference of the Parties (COP 24) to the UNFCCC which will take place from 3-14
December 2018, in Poland and UNEA-4: the fourth session of the UN Environment
Assembly (UNEA-4) will take place from 11-15 March 2019, in Nairobi, Kenya.
Before closing, I wish thank all our members especially those which contribute directly to
the work WGSL has undertaken. There is no question that sustainability has played and
will play an even more important role in our industry’s future. We must therefore be
proactive in seeking solutions that will help activate a dynamic and prolonged growth
curve. Thanks again!
Yours Sincerely
Heiner Rogge
Chairman
Working Group on Sustainable Logistics
35
FIATA WORLD CONGRESS COMMITTEE
I am pleased to write the third annual report as Chairman of the FIATA Congress
Committee.
The FIATA World Congress is one of the leading events of our Industry attracting
approximately 800-1500 participants from all over the world for several days.
FIATA is renowned for its diverse and exciting yearly event, which bring together 800-1500
participants from the freight forwarding, transport, and cargo industries as well as
observers from other sectors and a significant number of institutional participants. The
FIATA World Congress is an international social event that offers business and networking
opportunities as well as interaction with governmental and non-governmental
organisations. The presence of traditional ceremonies and high profile visits to world-class
lectures and topical debates are an essential component of the Congress Programme. The
event is also the ideal moment to promote policy issues and debates both within the sector
and with public and private stakeholders. The FIATA Congress Committee, supported by
the FIATA Congress and IT Communication Manager, oversees the correct event
management. We work with professional congress Organisers, the hosting Association
Member, speakers, international organisations and media stakeholders to ensure that the
congress’ goals are achieved.
Members of the Congress
Committee, chaired by Mr Stanley
H.H. Lim, in alphabetical order: Mr
Christopher J. Gillespie, Mr David
Phillips, Mr Francesco S. Parisi, Mr
Hans Günther Kersten, Mr Issa
Baluch, Mr Robert Voltmann, Mr
Turgut Erkeskin, Mr Stephen J.
Morris. FIATA Manager: Ms Elena
Primitzhofer.
One of the principal assignments of
the FIATA Congress Committee is to provide recommendation of the host countries to the
members of the Extended Board. Potential hosts come from four regions, the Americas,
Africa/Middle East, Europe and Asia Pacific. This vast variety in culture and potential
venues make the FIATA World Congress every year a special event open to all our
members and everyone related to the field of logistic. This past year we reviewed
candidates to host the 2020 FIATA World Congress, which will be held by our Korean
Association.
36
The 2019 Congress will held in Cape Town, South Africa.
The host countries must fulfil eight criteria to be considered as successful bidder. The
submitted bids must be showing the Organisers’ ability to host a congress. Key venue
selection criteria are the following:
1. How easily can the venue be reached from all continents?
2. How stringent are the Visa Requirements for participants?
3. How good is the Safety and Security track-record?
4. What is the Availability of Business Opportunities?
5. What is the Availability of Incentives and Sponsorship opportunity?
6. What is Event Organisation History (both Bidders’ and the selected Venue’s)?
7. Provide references, previous experience, coverage and success stories of the
appointed PCO.
8. Include authorities’ support, i.e. expressions of support, availability to speak or
sponsor, etc.
Newly formed sub-Committee: FIATA Congress Programme Committee
The newly formed working group and the Programme Committee develops and
successfully implements guidelines with the overall aim for quality control of the Congress
Programme.
In addition, a process for speaker appointment has been introduced and the members of the
Programme Committee are working hand in hand with the secretariat ensuring the World
Class standard of the event. Members of the Programme Committee are: Mr David
Phillips, Mr Issa Baluch and Mr Turgut Erkeskin.
Stanley Lim
Chairman, FIATA Congress Committee
REGION AFRICA MIDDLE EAST (RAME)
I am grateful to have the opportunity to compose RAME’s 2nd ever annual report and
highlight some of the activities we have undertaken over the past year. This is my first year
as RAME Chairman and I would like to start by thanking the RAME Immediate Past
Chairman, Mr. Basil Pietersen, the Presidency and the FIATA Membership for entrusting
me with this important and challenging role.
37
This year has no doubt been RAME’s most active yet with accolades in training and policy
making, the regional members have been very active in advancing logistics and trade.
Policy has taken center stage among RAME over the past 12 months. After 8 round of
negotiations, the Framework Agreement establishing the African Continental Free Trade
Area (AfCFTA) and the Protocol on Trade in Services was successfully concluded. The
signing of the AfCFTA took place during an extra-ordinary Summit on March 21, 2018, in
Kigali, Rwanda whereby 44 countries signed the agreement. FIATA released a press release
confirming their support for the agreement quoting the FIATA President directly. Nations
are now expected to ratify the deal in their respective parliaments with Kenya, Ghana &
Rwanda being the first to do so. This a milestone agreement that could drive up intra-
Africa trade by about 52%. RAME in previous position papers and key meetings has always
emphasised the key to regional agreements lie on regional bodies such as regional
economic communities (RECs) and private sector involvement through RAME at every step
of the discussion phases all the way through to implementation. Through these advocacy
efforts we have been invited to multiple dialogues at the African Union and United Nations
Economic Commissions for Africa to discuss key elements of the AfCFTA to ensure its
seamless implementation into the day to day users of the industry.
Furthermore, RAME has wanted to see more regional collaboration in the African aviation
industry. This call was heard and FIATA welcomed the launch of the African Union’s (AU)
Single African Air Transport Market (SAATM). The AU has adopted the regulatory text
developed for the Yamoussoukro Decision, the initial open skies agreement struck in 1999,
as the framework for their SAATM initiative. In the immediate term, our industry will
work with member States to amend their current Bilateral Air Service Agreements (BASAs)
until further progress and ratification are achieved through the SAATM. It is important to
also highlight that Africa’s Common Market for Eastern and Southern Africa (COMESA)
implemented the Yamassoukro Decision on air transport ahead of the SAATM confirming
RAME’s hypothesis that regional bodies like COMESA are instrumental in the
implementation of cross border agreements.
Continuing on the lines of COMESA, after striking a Memorandum of Understand (MoU)
with the regional body last year, RAME has been hard at work to find elements of
collaboration together. Recently, RAME participated in the COMESA Digital Free Trade
Area meeting held in the Seychelle at the beginning of this year (2018). It was a successful
meeting allowing RAME to highlight the needs for our members in order to adopt the cross
border digital platform being developed by COMESA. Follow up invitation to RAME has
been extended to contribute at the individual state level calling on Association Members to
be ready to engage in bilateral discussions with their governments. It is also promising to
learn that Somalia and Tunisa will be joining COMESA allowing FIATA to also expand its
work with COMESA into new states.
38
RAME’s regional field meeting took place this year in Douala, Cameroon. The three-day
program attracted high government officials, UNCTAD, ITC and executives from the
private sector and many more. The meeting held in May witnessed FIATA and the Union
of African Shipper’s council sign a Memorandum of Understanding (MoU) to identify areas
of collaboration together. I must extend my thanks to Mr. Basil Pietersen, SVP of FIATA
who signed the agreement on behalf of the FIATA President Mr. Babar Badat. I must also
commend the Syndicat National Des Auxiliaries De Transports et De Transit
(SYNAUTRATRA) on a successful conference that has elevated the benchmark of future
RAME Field Meetings. Next year’s RAME Field Meeting also looks very promising with
two hosts Mauritius and Lebanon putting forth strong bids each with capabilities to host an
unforgettable meeting.
A note must be made to the FIATA Foundation in Vocational Training (FFVT) who have
been very busy in engaging with RAME Association Members launching numerous train
the trainer programs across the continent. Our Association in Cameroon has submitted
their application for a train the trainer course and are awaiting further steps. In addition,
Iran will be ready to host their train the trainer courses later this year. I encourage any and
all associations interested in training to put forth their application to gain access to this
capacity building mechanism from the FIATA Foundation.
I also want to highlight RAME’s commitment in the coming year to grow our membership.
I have called on association heads in the region to take the lead in establishing new
Association Members in country where we do not have a presence and also encourage
more individual members in their local countries to join FIATA. This is an important
mandate if we are to grow our presence throughout the international community and have
more heightened discussions with policy makers.
39
I have very much appreciated the support from FIATA’s membership over the years as our
region continues to grow and progress through the challenges and opportunities.
I must thank all who have assisted in this work and greatly appreciate their time and
efforts. As this is my first year as Chair of RAME, I wish to confirm my commitment to
serve the members of the region and look forward to leaving a strong legacy for my future
successors.
Yours Sincerely,
Stephen Ngatunga
Chairman, Region Africa Middle East (RAME)
REGION EUROPE (REU)
Rail
The major topic concerning rail transport in Europe in the last year was from the freight
forwarders point of view the Rastatt disaster. In August 2017, there was a tunnel collapse
on the Rhine Valley railway. This is Europe’s most important North-South corridor and
excessive disruptions to the smooth flow of Combined Transport trains and the resulting
train cancellations severely hurt European Combined Transport operators and logistics
operators. This has undermined market trust in rail freight.
Various studies have indicated the relative low price of road freight transport. At the same
time, road freight is becoming cleaner and with the expected fuel efficiency standards in
Europe, as announced by the European Commission, road freight transport will be further
decarbonised.
There is a slow but steady shift to new technologies and energy carriers, and we follow
with interest the development of the e-Highways developed by Siemens in cooperation
with Scania and Volvo. Rail, meanwhile, claims to be the best way to decarbonise transport
but today only 60% of freight railway total energy consumption is performed by electric
traction, with further gains limited by locomotive lifecycles and the need for infrastructure
investment. In addition, rail freight suffers from the impact of the noise pollution in
particular in urban areas. These developments will reduce the ‘push’ factors away from
road transport, and thus modal shift, unless sufficient incentives are in place on the rail side
to make it a more attractive option.
40
Road Transport
There is a severe lack of secure parking in Europe. European rules require secure parking
on the core trans-European road network every 100km. EU funding has been available, but
there is little Member State uptake and a need for co-funding and projects with revenue
stream (EFSI). Industry is calling repeatedly for greater provision of good quality secure
parking. Further steps on secure parking are as follows: Provision of secure parking central
to protecting security of goods and ensuring driver welfare, a link with rest times
legislation. A ratings and audit system that allows drivers to know the level of security and
services provided by the parking area.
WG advisers had already reported on the issues relating to secure parking areas also in
relation to the revision of Regulation 561/2006 on driving and rest times. It was noted that
the EC had launched a call for a study on the topic of providing safe and secure parking for
truck drivers. This study includes collecting stakeholder needs and requirements regarding
parking places for trucks along the TEN-T corridors and preparing a relevant set of
requirements for such places. The study will also include a proposal for relevant locations
and a roadmap for policy makers to deploy safe parking areas in the EU.
The EU rapporteur proposed to introduce a derogation to the general rule of not taking
weekly rests in the cabin, provided it be taken in Dedicated Certified Parking Areas. The
Dedicated Parking Certificates should set forth the requirements for those Dedicated
Parking Places, of various types, enabling drivers to take their rest in the vehicle. These
requirements should ensure that all of the facilities necessary for good resting conditions
are present, that is to say sanitary, culinary and others, and including the availability of a
prepayment system. The rapporteur wants to ensure that the daily allowance of the drivers
is used as intended for parking and daily subsistence. The rapporteur considers that
various types of organizations, local governments or others, should be encouraged to
become involved in building such parking places, to be then certified by the competent
authority in the Member State. It could work either as a commercial model, or a social
enterprise, provided the requirements are met.
The WG discussed in detail the Mobility Packages on road transport. The Council of
working groups planned to present the General Agreement on the social / market issues
until end of June 2018. It is important to keep the package completed. The Austrian
Presidency should reach a common agreement on the Eurovignette proposals. Negotiations
will probably not take place until 2019 (prior to the European Parliament Elections). The EU
Commission has proposed a distance-based system and not a time-based application,
different by emission. They intended to extend scope to all vehicles; allowing congestion
charging, including external cost charging. On driving time, they would implement a so-
called smart tachograph. Extension of drivers’ hours’ rules to vans used on international
transports. Reduced and weekly rest time out of the vehicle subject to a derogation if taken
in dedicated Certified Parking Areas.
41
Finally, the difficult subject of posting of workers. The WG Road transport has signed a
joint statement and urged the Members of the European Parliament’s TRAN committee,
who have a sound understanding of the complexities of international transport, to
decidedly reject the damaging EMPL report and to exempt international drivers from
posting of workers rules. A “lex specialis” for road transport which subjects drivers to
posting of workers rules goes against all EU internal market achievements and adversely
impacts the transport and logistics industry.
CUSTOMS
Centralised Clearance is one of the most important improvements that the Union Customs
Code (UCC) provides. It authorises a holder to lodge a customs declaration at the customs
office where he is established, for goods which are presented at another customs office
within the customs territory of the Union. It allows the economic operators to centralise and
integrate accounting, logistics and distribution functions with consequent savings in
administrative and transaction costs, thus providing a genuine simplification.
BREXIT Negotiations
With regards to the economic
relationship, the UK recognized
that the single market is built on
a balance of rights and
obligations, and does not want to
pretend that it can have all the
benefits of membership of the
single market without its
obligations. Therefore, Ms May
suggested to find a new
framework that allows for a close
economic partnership but which
holds those rights and
obligations in a new and
different balance. Current models of economic/trade cooperation do not seem feasible to
the UK, because for example, membership of the EEA (European Economic Area) would
mean a loss of democratic control for the British people and CETA (the trade agreement
between the EU and Canada) would still mean too much restriction on mutual market
access. Therefore, the UK does not seek merely to adopt a model already enjoyed by other
countries. Instead wants to be creative as well as practical in designing an ambitious
42
economic partnership that respects the freedoms and principles of the EU, and the wishes
of the British people.
As persistent uncertainty continues over the future relationship between the EU and the
United Kingdom, customs authorities on both sides are becoming seriously concerned
about the potential impact of a no-deal situation. Several newspapers and websites have
published articles about the concerns voiced by customs authorities in the UK and the EU27
regarding their capacity to cope with such a scenario and the shortage of customs officials
to manage the impact.
AIR
UPDATE ON AVIATION SAFETY RULES AND NEW RULES ON DRONES
The EU ambassadors endorsed the deal concluded with the European Parliament on 29
November on revised common safety rules for civil aviation and a new remit for the
European Aviation Safety Agency (EASA). The reform includes the first ever EU-wide rules
for civil drones that will allow remotely piloted aircraft of all sizes to fly safely in European
airspace and will bring legal certainty for this rapidly expanding industry. The purpose of
the new rules is to create the right conditions so that the EU has the capacity to handle the
expected air traffic increase of 50% over the next 20 years and to ensure that the EU aviation
sector is prepared for tough global competition.
Global air cargo volumes improved in the first quarter but growth slowed as the period
progressed as the effects of Chinese New Year continued into March 2018. In air cargo
exports, the Southern hemisphere did best and worst: Central & South America grew by
12%, whilst Africa lost 3.3%. In incoming volumes, the European market grew by 7%,
whilst the Middle East & South Asia had to content itself with a very modest growth of
0.6%. It added that of the top-30 origins, Turkey, Japan and Ecuador recorded the highest
growth levels.
Turgut Erkeskin
Chair,
Region Europe (REU)
REGION AMERICAS NORTH AND SOUTH (RAMNS)
It is an honour to serve as Chairman of the Region Americas. I observed positive
developments this year towards our ambition to grow and have a wider FIATA presence in
the region. For example, I opened a dialogue with Sindicomis / ACTC with regards to the
43
inclusion of Brazil as a FIATA Association Member. They also look forward to a closer
cooperation and have shown increased interest in joining FIATA.
In terms of our congress session, our meeting point every year, I would like to thank
Ricardo Sanchez who was our FIATA World Congress 2017 speaker. Ricardo is Deputy
Director of the Natural Resources and Infrastructure Division at the UN Economic
Commission for Latin America and the Caribbean UN-ECLAC. He is in charge of topics
such as infrastructure services, port, maritime and logistics issues, and physical integration.
His speech provided an overview of ports’ services, output and transaction costs from a
regional and global perspective. Delegates received an interesting overview of the trends
and critical issues in the industry, demonstrating that from both private and governmental
perspectives, the port industry is under stress due to uncertainties triggered by the slow
global economic, trade growth dynamics and by economic policies such as the revision of
TPP, NAFTA, and Brexit. However, he mentioned that a modest recovery of the region’s
trade is in progress.
As we did last year, in 2018 we are always committed to delivering relevant and quality
information to our delegates. We invited Mr. Enrique Canon, Director General of Uruguay
Customs and Chairman of the WCO, to out next congress in New Delhi where he will talk
about Customs dynamics in the region. He shall include an outlook into the future of
Customs in the Americas as well as information on trade integration and facilitation.
We have also been active
representing FIATA and the
industry’s interests in the region.
Recently, I had the opportunity to
attend the WCO-COMALEP Private
Sector Meeting entitled
“Coordinated Border Management:
A pending challenge”, as well as the
XXXIX Meeting of Customs National
Directors of Latin America, Spain
and Portugal. The agenda for this
meeting was very enlightening on
the topics of Data Harmonization
among Customs of the Pacific
Alliance, non-intrusive inspection, weapon and drugs, and discussions on the use of the
Unified File Format (UFF), discussions on the gaps to WTO Trade Facilitation Agreement
Compliance and risk management with presentations on illicit trade, undervaluation,
piracy and new technologies.
Looking into the future, I look very much forward to providing the RAMNS FIATA
members with the relevant information they need to excel in their companies. The
44
relevance of new technologies and tools and the improvement of information exchange for
better risk analysis are always in our focus. For this reason, we will support international
organizations in our region and participate in consultation groups. We understand that
FIATA members can help express the concerns of the private sector.
In addition, this year we will look into a closer collaboration between FIATA and ALACAT
and strengthening the region. We already have several ideas and a great motivation to
achieve this. On June 29th to 30th the ALACAT Congress took place in Mexico City during
the Cargo Week Exhibition. Three hundred fifty participants registered and participated
during the successful two-day conference where I learned more about the relevant trending
topics and dynamics. I could see that our region is prepared to assume these new
responsibilities to improve business and that FIATA in collaboration with ALACAT are
prepared to assist all national associations in this new challenge.
Jorge Heinermann
Chair,
Region Americas North and South (RAMNS)
REGION ASIA PACIFIC (RAP)
Dear Members
The region same like last year became the engine of world growth where China is one of
the key player. However, the region has also faced security issues especially North Korea as
well as the South China Sea.
Even though there has been amazing development where the President of South Korea has
met with Chairman Kim of North Korea in a friendly discussion, the situation is still
vulnerable. President Trump also met with Chairman Kim at a Summit held in Singapore
that proved positive.
The US dollar has strengthened across the board compared to most currencies including
those in our region coupled with an increase in oil prices has created a situation with the
possibility of crisis.
45
On the other hand,
ecommerce and
digitalization of the world
economy has given new
hope but also thread. The
recent Alibaba Single day
sales 11/11/2017 has
reached a record of US$
25,3 billion in 24 hours. A
rise of 40% compare to
last year and double that
of US Black Friday
combine with Cyber
Monday and not to
mention the total
transaction that was more than 1,480 billion in 24 hours.
Participants to the RAP meeting in Kuala Lumpur, Malaysia on October 2017 from the
example of Malaysia, how ASEAN member states have embraced China’s one Belt and one
Road initiative. This initiative has improved Trade Facilitation tremendously and has built
friendship amongst countries along the Belt and Road Initiative (BRI) with China. Bringing
about political mutual trust, stability and prosperity across the region. Malaysia has been
China's largest ASEAN trading partner for eight successive years and the two governments
entered into a five-year plan to expand trade, investment, tourism, education, finance and
infrastructure development with the aim of achieving bigger bilateral trade going forward.
But just recently to everybody’s surprise, the opposition led by Mahathir Mohamad won
the election and come into power becoming Prime Minister again. His first decision is to
release Anwar Ibrahim, investigate the former PM Najib, review all big projects, and
immediately cancel the KL-Spore high-speed train.
Everything happening in the RAP region will certainly have an impact in the region’s
economy and for sure will have some impact in our industry.
The HQ’s meeting of RAP held on March 2018 in Zurich was once more enriched with
inputs from Chairs and delegates on activities, challenges and solutions achieved or
planned pertaining to the Regions International Freight Forwarding and Logistics Industry.
Taking up from progress in the ASEAN states and by giving an example of uniting
multilateral forces, RAP members were receiving a profound introduction to ASEAN and
AFFA which contained remarkable numbers of ASEAN and AFFA’s purpose, focus,
composition, activities, initiatives.
46
While writing this report, the 12th RAP Field Meeting held in conjunction with an UN
ESCAP’s Regional Conference/Forum for Logistics Service Providers, in Busan, Republic of
Korea, are ahead of us late June 2018.
Since its launch in 2007, all RAP Field meetings were held in conjunction with UNESCAP
meetings or forums. Six out of 12 times, we convened in Bangkok, Thailand. For this, we
are thankful for the support of the Thai International Freight Forwarders Association
(TIFFA)
In 2008, we met in New Delhi, India, in 2010 in Bali, Indonesia, in 2013 in Negombo, Sri
Lanka, 2014 in Beijing, P.R. China. and in 2016 in Jakarta, Indonesia and this year we will
do it in Busan hosted by the Korea International Freight Forwarders Association (KIFFA)
who will also host the FIATA World Congress 2020.
I started with our Region being the engine of the world. Remember? We had our FIATA
World Congress in Shanghai (2006), Bangkok (2010), Singapore (2013), Chinese Taipei
(2015) and this year in New Delhi and in 2020 in Busan.
What proves it more? So let us hope we will smoothly overcome the obstacles and keep the
engine smoothly and strongly running.
Chris Kanter
Chair, Region Asia Pacific (RAP)