FIATA REVIEW
Burundi Aims Forward
HQ Session Discusses Key Industry Matters
The Road to Sustainable Transport
Magazine of the International Federation of Freight ForwardersAs so ci a tions No. 97, May 2013
News
FIATA REVIEW No. 97, MaY 2013 3
Editorial 5 From the President’s Desk
Focus 6 HQ Session Discusses Key Industry Matters
Country Report10 Burundi Aims Forward
News15 Beware of Scams
16 Green Freight Europe: The Road to Sustainable Transport
Personally17 Meet Ernesto Arévalo Schoedl Vice President of FIATA
Here & There18 Happy Birthday
Agenda19 Forthcoming Events
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Tea and coffee are some
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FIATA REVIEW No. 97, MaY 2013 5
From the President’s desk
5
Dear Colleagues and Friends,
T his is the first time that the FIATA Review is published in electronic format only. I thought I ought to explain that
the Presidency has decided to sharply limit the number of printed copies of the Review when its cadence coincides with public events such as the WC or the HQ Session in order to contain our costs. A limited number of printed copies are available for public use and should you need a printed copy for representation please feel free to contact the Secretariat.
This does not mean that this issue is of any lesser value, on the contrary, it contains a number of interesting features: it obviously includes the reports of the HQ Session, which will give those who did not manage to attend, a glimpse into the interesting deliberations. We have also hosted an article kindly provided by Green Freight Europe; this is a business initiative in the area of environmental compliance and best practice that has attracted noticeable inter-est during the HQ Session. Similar initia-tives exist also in other parts of the world such as America and Asia. An important feature will alert you on the always lively topic of “business scams”, to which our companies are unfortunately exposed. We also have the Country Report on Burundi, where we have recently admitted a new association member. The interview with one of our younger board members, Mr Ernesto Arevalo Schoedl, will tell us more about his personality and his objectives.
In short, we have all FIATA’s priorities on the table: vocational training, e-business, regional representation (where FIATA is stronger than ever, e.g. in Africa), the
environmental agenda, and the exceptional value of our meetings. The record numbers at the HQ Session (311 registrations) and consequent costs have hit the agenda of the Presidency and we have studied the issue in light of brining additional value to our association members as well as maintain-ing high value for all individual members. These proposals will be implemented at the next edition, where we shall have a hard time improving the record results of our latest spring meeting.
In parallel our work on airfreight moderni-sation has been progressing and we have spent much time attending conferences at UN level and other public events for which individual reports are issued and circulated. Turning to the back office, I have been in-formed by the Secretariat about the Auto-mated Membership Management System, which should be available for testing after the summer. One of the important deci-sions taken at the recent HQ Session was to start the pilots of the e-FBL projects. All those interested in testing this new product should contact the Secretariat to make use of this opportunity.
Lastly – 2013 is an election year. Let me re-mind you that you are welcome to cooper-ate more closely with FIATA by becoming one of its Board Members. If you decide to do so, your application as a candidate must be lodged by your association member with the Secretariat by June 19th at the very latest.
Stanley LimPresident of FIATA
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FIATA REVIEW No. 97, maY 2013 76
Focus
HQ Session Discusses Key Industry MattersDespite the cold and snow on the streets of
Zurich, this year’s annual Headquarter
Session showcased warm and intriguing
conversations. Once again FIATA received
a record number of registrants and wit-
nessed high participation at this customary
annual gathering.
AIRFREIGHT INSTITUTE (AFI)Multilateral e-AWB agreement At this year’s AFI meeting Vice Chairman, Mr Marc van Corenbergh, announced the break-through of the multilateral e-AWB agreement. This was possible after a few significant changes advocated by FIATA that were endorsed by the IATA/FIATA Consultative Council in February and consequently the emanating version had received its approval in Qatar at the re-cent meeting of the IATA Cargo Services Conference (CSC), as the new IATA CSC Resolution 672.
Freight forwarders and airlines were look-ing forward to greater simplification when they looked at the bilateral e-AWB agree-ments based on Recommended Practice 1670. Parties are still free to sign bilateral agreements. Now this new multilateral e-AWB agreement allows forwarders to sign only once to connect to all signatory airlines.
Mr Van Corenbergh welcomed IATA’s Mr Frederic Leger, Head of Cargo Business Process and Standards, to briefly provide information about the IATA Cargo Con-ferences and in particular the next steps of the agreement’s implementation and about the status of the currently running proof of concept in which some individual freight forwarders were involved. The document can be found on the web at: www.iata.org/e-AWB.
Cargo Modernisation Programme Working Group Several calls were held between IATA and FIATA delegates by means of telephone conferences and face-to-face meetings with the intention to develop an IATA/FIATA Air Cargo Programme operating outside of the IATA conference structure. The programme will be administered by a global IATA/FIATA governance board, with equal participation of carriers and forwarders along with creating a formal dialog platform to discuss, agree and promote common operational standards, information exchange standards and to cooperate in making Air Cargo safe and se-cure throughout the transportation chain. This includes collaborative approaches and procedures in the field of data interchange, DGR compliance, etc.
AFI delegate, Mr Herman Donker, re-ported that at this stage it was still too early to provide any further details since the parties were in the middle of nego-tiations. The atmosphere is good and the parties are in agreement as far as the main principles are concerned. Presently drafts of the IATA-FIATA cooperation agreement and of the freight forwarders agreement are under discussion. As it was felt that at this stage legal input was needed, Tommy Pilarp, Secretary General and Senior Legal Counsel of the Swedish International Freight Association (SIFA) joined the FIATA team.
CUSTOMS AFFAIRS INSTITUTE (CAI)CAI Chairman, Mr Stephen Morris, high-lighted the meeting’s key topic: the lack of harmonisation between regulators to reach uniformity and consistency in the data collection of international trade logistics and supply chain management. Regulators should look towards harmo-
nisation as the methodology and level of specificity for the data that needs to be supplied. A place where this work could be addressed is the World Customs Or-ganisation (WCO) and through FIATA’s intervention in a variety of work under-taken there. However it is still difficult for the WCO to carry it through to their member’s administrations mandatory processes. In this context the Chairman provided a report regarding the work of CAI and the WCO since the last meeting. Considerable work was done, is being done, and will continue be done to sup-port FIATA members.
Ms Nicolette van der Jagt, Director Gen-eral of CLECAT, in her presentation informed delegates about advance cargo data in relation to security and the im-plications for service providers in the European context. The main issue and essence of the CLECAT/FIATA position is: Freight forwarders are prepared to take the responsibility and share informa-tion with the authorities, but forwarders should not be obliged to share commer-cially sensitive information with poten-tial competitors.
Ms Ruth Snowden, Executive Director of the Canadian International Freight For-warders Association (CIFFA), provided first-hand input in her presentation on advance commercial information namely e-manifest based on CIFFA’s cooperation with Canada’s Border Services Agency (CBSA).
MULTIMODAL TRANSPORT INSTITUTE (MTI)The Chairman of the Multimodal Trans-port Institute, Mr Christopher J. Gillespie (Canada), was happy to welcome more than 80 participants to the meeting.
RAil Dr Ivan Petrov (Bulgaria), Chair-man of the Working Group Rail Trans-port, referred to the presentation given by Mr Tom Malloy Northern (Norfolk Southern) at the last MTI meeting in Los Angeles which came to the conclu-sion that the railway systems in Europe are very different to those in the United States. The vast majority of the rail operators in the US are privately-owned and tax-paying firms, using their own tracks and operating their own trains. Also there is no automatic access to other tracks and government funding is mini-mal. While the railway market is increas-ing in the United States, the tendency in the European Union is contrary, and the market share of rail transportation is declining.
The long awaited 4th railway package was published on 30 January 2013. The European Commission (EC) announced a comprehensive package of measures to deliver better quality and a wider choice in railway services across Europe. CLECAT has welcomed the publication; however they were disappointed that the Com-mission has backtracked from its initial intention to impose a separation of the infrastructure management and railway operations.
The new proposal allows incumbent op-erators to keep their holding structures, making separation “optional”. Separating the infrastructure management from the railway undertaking would have repre-sented the quickest and most efficient way of revitalising the industry and cre-ating a level playing field between rail operators. All delegates are encouraged to participate in the 5th Rail Market Place Seminar that will be held in Vienna on 18–19 April 2013.
RoAd Mr Kostas Sandalcidis (Turkey), Chairman of the Working Group Road Transport, mentioned that last year he reported that the truck tariffs in Italy were controlled by the government and that FEDESPEDI started legal action against this new law. Mrs Straulino reported now that the Italian court has issued a ruling and they have referred the case to the Euro-pean Court of Justice (ECJ) and, since the Italian judges partly agreed with FEDES-PEDI’s position, they were confident that the ECJ will decide in their favour.
TIR activities may restart within a few weeks in Afghanistan as all mandatory technical steps have been fulfilled. Final training is being arranged in Kabul prob-ably in April for the association and cus-toms, and Pakistan is already expected to join the system by the end of this year. TIR transport operators are often forced to stop TIR operation and to purchase national guarantees in cases where the amount of taxes and duties payable exceeds EUR 60,000 per truck. These national guar-antees generate costs that can sometimes exceed USD 2,000 per transport. To limit these costs, the IRU is currently trying to find an appropriate solution with the customs of the 3 countries concerned to provide additional guarantee vouchers for transport of high-value goods on the territory of the Eurasian Customs Union.
MARitiMe Mr Robert Keen (United Kingdom), Chairman of the Working Group Sea Transport, was delighted to announce that during its meeting on 13 February, the US Federal Maritime Com-mission (FMC) approved for public com-ment a proposed rule that would require foreign-based unlicensed Non-Vessel-Op-erating Common Carriers (NVOCCs) to register with the Commission and expand
a current tariff rate publication exemp-tion that would allow foreign-based, unli-censed NVOCCs to enter into Negotiated Rate Arrangements in lieu of publishing a rate for cargo shipments in its tariff.
According to the proposed rules, for-eign Ocean Transportation Intermediaries (OTIs) will be able to enter into negoti-ated rate agreements (NRAs) in lieu of publishing rates. This topic has been re-ported on many times at both HQ Sessions and Congresses. It was in July 1990 that the first NVOCC tariff exemption petition was filed on behalf of FIATA by the TIA.
The working group has been following for the past couple of years 1) the manda-tory weighing of containers at the point of loading, and 2) the revision of the guide-lines for packing cargo transport units.
Regarding point 1, a sub-committee of the International Maritime Organisation (IMO) and International Cargo Handling Cooperation Association (ICHCA) met last September to discuss proposed meas-ures. The working group understands the problems caused by overweight containers and agrees that any steps taken to stamp out abuses are to be supported. However, our views were that to routinely weigh all cargo is inefficient, time consuming and wasteful. The view is that the profil-ing of shippers and cargo would make more sense together with sanctions against proven offenders.
Regarding point 2, the IMO, International Labour Organisation (ILO) and United Nations Economic Commission for Europe (UNECE) have reviewed the 1997 edition “Guidelines for Packing of Cargo Transport Units”. The examination and the review are almost concluded and FIATA will publish
FIATA REVIEW No. 97, maY 2013 98
FOCUS
the guidelines once they are finalised.The items of C-TPAT, 100% scanning of containers and the Rotterdam Rules have been covered, but no fundamental changes have been reported on these topics.
digitalisation of the FiAtA documentsFIATA started the project on the digitali-sation of the FIATA documents. The com-pany ESS would be ready to make avail-able a solution within a couple of months and then subsequently adapt a system for FIATA. Mr Alexander Goulandris (ESS) provided a presentation on the project and it seems that relatively high investment costs would be compensated for through several benefits:
• Savingmanpowerandcosts;• Savings on excessive courier charges,
printing charges, etc.; • Lesstypingerrors;and• Moresafetyandsecuritythantheordi-
nary FBL.
The Presidency has concluded to take the necessary steps that in future the Associa-tion Members will have access to digitalise FIATA documents. Association members are requested to show their interest in regards of possible participation in a pilot programme.
ADVISORY BODY LEGAL MATTERS (ABLM) The ABLM Chairman, Mr Richard Gluck, provided a specific report on the progress of the Ad Hoc WG ‘Cargo Releases Best Practices’ (in the US) in the absence of the Ad Hoc WG Chairman, Mr Cameron Roberts (USA). The announced White Paper to the FMC – already discussed at the FIATA World Congress 2012 in Los Angeles – was of great interest and attracted a large floor discussion, where the different points of view of countries such as Italy, Poland, China, and Pakistan, amongst others, were expressed.
Another highlight of this meeting was the presentation done by the ABLM
Vice-Chairman, Dr Yang Yuntao (China), containing first-hand information and updates on the regulation of forwarders’ services in China, introducing a new de-velopment in the VAT reform, and paper-less customs clearance. The ensuing active discussion showed once again the impor-tance of such first-hand information. This report is available on the FIATA website.
The insurance industry committee re-port presented by Mrs Helen Arabanos
(TT Club, London) and Mr Mike Brown (Avalon Risk Management, USA) gave our delegates the opportunity to pay at-tention to the issue of damages caused by Hurricane Sandy in the US, the fatal accident of the MSC Flaminia, abandoned cargo claims, jammer-assisted hijacking, another accident off New Zealand’s coast-line where the ship “Rena” grounded on the reef, and the “Emma Maersk” which was disabled in the Suez Canal when the engine room flooded.
The teething issue of the Container Weighing IMO initiatives was debated in light of the wrong weight declaration in the “Husky Racer” load. The impact of such measures through the supply chain was another interesting discussion point which kept our ears busy. These reports are all available on the FIATA website.
The ABLM Chairman was happy to intro-duce the new co-opted ABLM Member, Mr Tommy Pilarp, legal counsel and the Secre-tary General of SIFA (Sweden). Mr Pilarp has excellent skills in transportation law and will be an advantage to all members of FIATA once he is acting as an ABLM expert. Mr Pilarp has been elected as the new chair-man of the Ad Hoc Working Group “Air Cargo Legal Issues” and will take up his work with immediate effect.
ADVISORY BODY SECURITY MATTERS (ABSM)The ABSM Chairman, Mr David Fielder, welcomed a large number of delegates from various regions to the ABSM Meet-ing. The new interactive structure which had received much positive feedback was again employed. The lively debate com-prised a number of interventions from the floor. A detailed account of the discussion is to be found in the minutes that all mem-bers can access via FIATA’s FDDS.
Mr David Logan (South Africa) paved a panel and floor discussion on the issue of “Terms of Change in Airline Security Legislation and Processes”. He informed delegates about the changes South Africa is facing in terms of airline security legis-lation and processes, as well as the training center in South Africa, ICAO matters and of course the Known Shipper Program.
Mr Bob Voltmann (USA) informed delega tes that the renewed US Safe Ports Act has passed the US Senate and that the issues of scanning and screening are still very important criteria in the US. He fur-
ther passed information about the renewed US Safe Ports Act in detail.
The Chairman was happy to welcome Mr Sören Kullberg from Sweden as new co-opted member of ABSM. Mr Kull-berg is the Head of Corporate Security at Schenker AG in Gothenburg, Sweden and a Member of Security Committee at the Swedish International Freight Associa-tion (SIFA). Further he is a Member and Vice Chair of Transport and Supply Chain Security at CLECAT as well as a Member of CLECAT’s Board.
Mr Kullberg gave an update on matters of European trucking and mentioned that this issue is at present not as regulated as air and ocean. Trucking companies are facing very big problems with hijacking incidences where the latest technology known as ‘jam-ming’ is being used. The EU Commission is involved in this issue with CLECAT.
The most interesting and comprehensive discussions were around the EU 859 im-plementation. This was another interest-ing point that attracted the floor and the panel to an agile deliberation. The infor-mation provided by Mrs Kirsty Westra (EU Commission) and presented by the Chairman followed this discussion point.
ADVISORY BODY VOCATIONAL TRAINING (ABVT)Given the important role well trained man-power plays in the businesses of FIATA’s Members, the main meeting of the Advi-sory Body Vocational Training (ABVT) always evokes a keen response. It was no different at this year’s FIATA Headquarter Session. Over 100 delegates were welcomed by the ABVT Chairman, Mr Thomas Sim, and other ABVT members.
He lauded the commitment of FIATA Association Members towards vocational training and informed delegates that since its launch in 1996, over 8,200 freight
forwarding professionals from around the world had been successful in obtaining the prestigious FIATA Diploma in Freight Forwarding. A number of these profes-sionals had in fact taken the next step in their quest for enhancing their industry knowledge by successfully completing the challenging FIATA Higher Diploma in Supply Chain Management.
Currently FIATA Association Members in 52 countries offered FIATA vocational training programmes. A few days prior to the meeting, Ghana Institute of Freight Forwarders had validated its training material for FIATA Higher Diploma in Supply Chain Management and Irish In-ternational Freight Association had re-validated its training material for FIATA Diploma in Freight Forwarding. During the meeting, certificates were presented to representatives of both these associations by the Chairman. FIATA Foundation’s laudable efforts towards capacity building in developing countries were highlighted and Mr Sim informed the delegates about the Train-the-Trainer course which was conducted by the FIATA Foundation in Tanzania in 2012. Twenty-eight aspirants undertook this rigorous two week course, 18 of whom eventually managed to pass the challenging examination at the end.
Tanzania Freight Forwarders Association has committed to having their training material validated at the FIATA World Congress 2013. Besides Mr Sim, this course was taught by international experts in Logistics and Supply Chain drawn from Germany, Hong Kong and the United Nations. A formal conclusion to FIATA’s e-learning project was announced during the meeting. This project had demon-strated the capabilities of the e-learning method and could be revived based on the Members’ needs.
The delegates were informed that with 16 nominations from FIATA’s Association
All meetings of the HQ Session 2013 were very well attended
continued on page 12
FIATA REVIEW No. 97, maY 2013 1110
Country Report
Burundi Aims ForwardOne of the smallest countries in Africa
with two periods of rain a year, home to
more than 8 million people, as well as
some threatened species such as leopards
and lions, Burundi is aiming forward.
Location
Burundi, officially the Republic of Bu-rundi, is a landlocked country in the Great Lakes region of Eastern Africa, bordered by Rwanda to the north, Tanzania to the east and south and the Democratic Re-public of the Congo to the west. Its capital is Bujumbura located along the shores of Lake Tanganyika. Although the country is landlocked, much of the south-western border is adjacent to Lake Tanganyika. Burundi has a non-strategic position as it is landlocked but thanks to Lake Tang-anyika enjoys the possibility to transport goods more easily and cheaply by water to its neighbours, and also to Zambia.
History
The Twa, Tutsi and Hutu peoples have lived in Burundi for at least five hundred years and, for over two hundred years, Burundi was ruled as a kingdom. At the beginning of the twentieth century, how-ever, Germany and Belgium occupied the region and Burundi and Rwanda became a European colony known as Ruanda-Urundi.
Economy
Little industry exists except the process-ing of agricultural exports – 7.9 million people, out of Burundi’s population of approximately 8.8 million people, live on agriculture. Although potential wealth in petroleum, nickel, copper, cobalt and other natural resources is being explored,
the uncertain security situation has pre-vented meaningful investor interest. In-dustrial development is also hampered by Burundi’s distance from the sea and high transport costs. Chief export goods include coffee, tea, sugar, cotton, and hides but only in small quantities due to the instability of the country and the quality of Burundi’s soil. Burundi’s main trading partners, besides its immediate neighbours, include China, Saudi Arabia, Kenya, Uganda and the EU.
Lake Tanganyika is the most important means of transport especially in the south corridor as it is the cheapest form of transport available. Lake Tanganyika is es-timated to be the second largest freshwater lake in the world by volume and houses some 400 species of fish. It is estimated that 25–40% of the protein in the diets of the approximately one million people liv-ing around the lake comes from lake fish.Burundi is one of five members of the East African Community (EAC) together with Kenya, Tanzania, Rwanda and Uganda. Burundi’s integration into the EAC is mostly viewed as a positive step along the path to political, economic and social stability. The key aspects of the customs union include: a Common External Tariff (CET) on imports from third countries; duty-free trade between the member
states; and common customs procedures. However the ultimate ambition of the EAC is to have one common market, a monetary union, and a political federation. The President of the Republic of Burundi is the EAC’s current Chairman.
Infrastructure
Burundi’s transport infrastructure is lim-ited. A crumbling network of 14,480 kilometres (8,998 miles) of road, of which a mere 1,028 kilometres (639 miles) are paved, is used by only some 19,000 pas-senger cars and 12,300 commercial ve-hicles. The majority of Burundi’s trade is conducted across Lake Tanganyika with the Democratic Republic of the Congo. There is no rail infrastructure. As Burundi is landlocked it relies on the sea ports of Dar es Salaam in Tanzania and Mombasa in Kenya. Burundi has 1 international airport, which is located at Bujumbura, while another 3 airports exist but are un-paved. Only 12,000 people travelled by air in Burundi in 1998.
Professionalising the Industry
The freight forwarders associations of Tanzania, Kenya, Rwanda, Burundi and the Democratic Republic of the Congo have also formed a regional organisation: the Federation of East African Freight Forwarders Associations (FEAFFA).
Created in 2006, Burundi’s association, the Association Burundaise des Agences en Douane et Transitaires (ABADT), has played a significant role in profession-alising the freight forwarding industry through a training program called East African Community Freight Forwarders Practicing Certificate (EACFFPC). The training program for clearing agents was
developed and implemented by FEAFFA and East African Revenue Authorities (EARAs). Some other training pro-grammes for items such as the Customs Management Act and Harmonised System of Classification and Valuation are be-ing followed by clearing agents. These training initiatives are intended to equip clearing agents with the necessary skills, competencies and knowledge needed to enhance efficiency in cargo handling logistics.
Like the other country members of FEAFFA, Burundi is facing challenges and opportunities stemming from its in-tegration into the East African Commu-nity (EAC). One of the biggest challenges facing the industry is poor automation and modernisation. New systems of clear-
ance are being implemented, but slowly. Elimination of all non-tariff barriers and simplification of border controls are the key issues which are being addressed by the 5 countries. East Africa needs a mod-ern and efficient regional and international
transport system that promotes trade and economic growth so as to enhance the live-lihoods of its people. It needs development of strategies that reduce the time and cost of transport in the area.
Tea and coffee are some of Burundi's chief exports
Burundi’s coastline along Lake Tanganyika
Burundi – Facts & Figures
Official name: Republic of Burundi
Capital: Bujumbura
Form of government: Republic
Area: 27,834 km2
Population: 8,749,000 (2012 estimate)
Ethnic groups: 85% Hutu, 14% Tutsi, 1% Twa
Official Languages: Kirundi, French
Administrative divisions: 17 provinces
FIATA REVIEW No. 97, maY 2013 1312
Focus
Members, competition was keen for this year’s Young International Freight For-warder of the Year Award. Four regional winners would be selected by June, who would then vie for the ultimate prize which would be presented at the FIATA World Congress in Singapore in October.
With an enormous number of career op-tions available to the younger generation entering the work force, attracting the right talent to a career in freight for-warding is always a significant challenge. With this in mind, Mr Sim advised that at the forthcoming FIATA World Con-gress (www.fiata2013.org) focus will be firmly on vocational training and educa-tion through a series of events including a “Young Logistics Professionals’ Day” to highlight the appeal of the freight for-warding industry.
AFRICA | MIDDLE EAST (RAME) Mr Issa Baluch opened his last meeting as RAME Chairman and welcomed a large amount of delegates from the Region to this important session.
After reading the legal text in regards of Antitrust Law, he announced that, as already indicated during the last RAME Meeting in Los Angeles, he will be step-ping down as Chairman of RAME with immediate effect. He then presented Mr Basil Pietersen, the new RAME Chair-man from South Africa, and handed over the Chair to him. Mr Pietersen thanked Mr Baluch for all his work done since the founding of RAME and expressed his hope, that Mr Baluch will stay an active friend of all RAME Members.
The CEO of SAAFF, Mr David Logan, shortly commented on a press article published in the ITJ, printed in February 2013, in regards of plans to coordinate ex-pansion work at the port of Durban across 5 countries in Southern Africa: Botswana, Democratic Republic of the Congo, Zam-
bia, Zimbabwe and South Africa. Durban remains Africa’s largest maritime hub.
Another highlight of this session was the presentation made by Capt. Aman-hyia (GIFF, Ghana). He informed the participants about the improving intra-regional trade through freight forwarding activities promoted by AFFA, the African Freight Forwarders Association.
The upliftment of FIATA’s travel ban to Nigeria (in force since 2 September 2011) was another highlight the Chair was happy to announce. The decision to uplift the travel ban was based on very positive in-formation received from Nigeria due to a resolution from the Federal High Court of Lagos which reflects a harmonious settle-ment between the parties involved.
Mr Issa Baluch (UAE) gave a highly informative presentation regarding the procedures to be followed to become a member of the different areas of FIATA: Institutes, Bodies, Extended Board and the Presidency. This presentation also in-cluded the relevant time frames, etc., and was a guideline for all interested parties – not only for RAME members.
As a result of the voting held in Los Ange-les during the last FIATA World Congress in 2012 the decision was clear as to the host of the next RAME Field Meeting: Dar es Salaam, Tanzania, which will be held from 19-21 June 2013.
The representative of the organising asso-ciation, Mr Stephen Ngatunga of TAFFA, was proud to inform the attending del-egates that the State President of Tanzania will be the guest of honour at the Opening Ceremony on 19 June amongst accredited ambassadors and other VIP guests.
FIATA will be represented at this high ranking meeting by the FIATA Presi-dent, Mr Stanley Lim, and of course the
newly elected RAME Chairman, Mr Basil Pietersen from South Africa, the former RAME Chairman, Mr Issa Baluch, and the RAME Manager, Mr Peter Maegerle. On this occasion, RAME members will have sufficient time and resources to bring forward and discuss their local respective country issues.
Egypt and Zimbabwe have announced their interest to host the FIATA RAME Field Meeting in the year 2014. The final decision will be made during the RAME Meeting at the FIATA World Congress 2013 in Singapore.
At this Zurich meeting, the Chairman was happy to announce that two candidates from Egypt and Kenya had good chances of becoming the Young Freight Forwarder of the Year 2013, the final selection of which will take place in Singapore this October.
This meeting hosted the highest amount of RAME delegates the Headquarter Ses-sion had ever seen and is perhaps reflective of the path to development Africa cur-rently finds itself on. Oil, gas and minerals have begun bringing unusual wealth to the countries of this region and things seem to be moving forward.
AMERCIAS (RAMNS)A small but enthusiastic group of freight forwarders attended the RAMNS regional meeting during the recently concluded FIATA Headquarter Session in Zurich, Switzerland. Mr Christopher J. Gillespie (CIFFA Canada), Deputy Chairman RAMNS, chaired the meeting in absence of the Chairman, Mr Rodolfo Sagel, and welcomed delegates from Canada, United States, Argentina, etc.
Sharing information and experiences is one the highlights of this meeting. As usual, issues involving regulators in the region dominated the proceedings. Random container examination contin-ues to be a challenge for the forwarders within the region. Whilst there is a strong global push towards electronic documents, some authorities are still reluctant to change, and favour paper documents. The delegates voiced their concern about these issues. Budget se-questration in the United States and its impact on the transportation industry was also discussed in some detail. The delegates feared that it may have an ad-verse impact on the infrastructure which is so vital for freight forwarding. 100% screening of cargo was also a significant concern and the forwarders in the region were still learning to adapt.
Mr William Gottlieb informed the del-egates about the latest developments concerning IATA’s e-AWB project. He also explained how GACAG (Global Air Cargo Advisory Group) functioned, and the role played by FIATA as one of its
important constituents. The delegates felt that separate rules governing the carriage of Lithium batteries by air on US domestic and international routes were likely to cause confusion. They expressed that these rules needed to be harmonised urgently. Before conclusion of the meeting Mr Jorge Heinermann, President of ALACAT, cordially invited the delegates to the ALACAT 2013 Conference in Guayaquil, Ecuador during 20-22 May 2013.
ASIA PACIFIC (RAP)Mr Paul Golland (AFIF, Australia) re-ported that the Australian Department of Infrastructure is putting pressure on forwarders to examine export cargo for explosives by X-ray and this while most Australian forwarders do not have X-ray machines. AFIF has provided FIATA with a submission which will be sent to their government to oppose these measures.
Mr Bhadkamkar (FFFAI Chairman, India) informed the meeting about the Indian Supreme Court’s decision on liability and the steps taken against some troubling changes to the policies of the customs administration in that country.
Mr Mohan S. Mohandas (Sri Lanka For-warders Association Chairman) presented through a live connection from Colombo insight into the countries logistics infra-structure and his association’s work.
Delegates at the meeting and RAP del-egates were invited by both, the RAP Chairman, Mr Chris Kanter, and the SLFFA Chairman, to register as soon as possible for the upcoming 7th RAP Field Meeting in conjunction with UNESCAP meetings. FIATA’s meeting will be held in Sri Lanka on 5 June with those of UNESCAP on 6 and 7 June 2013.
More details are available on FIATA’s web-site. FIATA encourages all delegates from the region to attend these meetings as well
as those of UNESCAP, if they so choose, as they are a most valuable opportunity to network and to address specific and relevant regional topics.
EUROPE (REU) The REU meeting was chaired by Vice President Dr Ivan Petrov of Bulgaria and was attended by 40 delegates. Prof Shengelia gave a presentation about Geor-gia, a Caucasus country between the Black and Caspian Sea. Georgia has an important role as a transit country for the cargo flow between South East Europe and Central Asia. The ports of Poti and Batumi can be reached by regular ferry boats from vari-ous Black Sea ports and railway and road transport services can be provided to the capital Tbilisi and beyond.
Mr Sandalcidis of Turkey, Chairman of the WG Road, reported that VISAS for truck drivers and the licensing system for freight forwarders is still a problem in Turkey, as well as quotas/permission scheme for Turkish trucks, and furthermore there is a major obstacle for free trade in Russia for non-Russian trucks.
TIR Carnet issuance continues to remain stable, with a 4% increase in 2012 (up to 3,150,000 carnets issued). It is worth noting that, contrary to expectations, the issuance of carnets has not decreased in spite of Turkey joining the T-system in December 2012.
Mrs Van der Jagt (Director of CLECAT) reported that the goal of TEN-T is to create a comprehensive EU transport net-work. Road and rail networks were de-veloped by states with a national agenda. TEN-T aims at eliminating the resulting bottlenecks at the national borders by implementing new technologies in the rail sector.
Rail lags behind other modes of transport with regard to the implementation of new
The newly elected RAME Chairman, Mr Basil
Petersen (left) and former RAME Chairman,
Mr Issa Baluch (right) shake hands.
News
FIATA REVIEW No. 97, MaY 2013 15FIATA REVIEW NO. 97, MAY 201314
Focus
swissworldcargo.com
connecting swissto the power of singaporeNon-stop daily from May 2013
130418_SWC_SIN_210x148.indd 1 19.04.13 12:21
technologies. Stakeholders reacted posi-tively to industry driven initiatives. The impact on rail will be the increase of the permeability of rail connections allowing a higher capacity of the existing network without the need for major changes to the infrastructure.
The EC White Paper announced that legislation on weight and dimension (Di-rective 96/53) should be reviewed to adapt it to new technologies and needs, and to facilitate intermodal transport and the overall reduction of energy consumption and emissions. The recent legal interpre-tation confirmed that cross border use of longer modular trucks is allowed and the review of the directive will be published in the second half of 2013.
There was a review of the Euro Vignette Directive 1999/62, especially the inclu-sion of urban, suburban and interurban road transport on the secondary network, the inclusion of other road users such as private car and collective passenger trans-port, and the mandatory implementation of the ‘user pays’ principle in all Member States, the harmonisation of this imple-mentation, the interoperability of charg-ing systems and the inclusion of other externalities in the scope of the current legislation.
The EU consultation of port users was closed by a final hearing on 18 January 2013 and possible new Commission meas-ures will be published in the second half of 2013. The lack of coordination of opera-
tors providing different port services and the superposition of port administrative procedures often create a specific adminis-trative burden for users.
Furthermore, the subjects of an EU Air Cargo Security programme as well as the Airport Package were debated. Cargo flying from third countries into the EU needs to come from an ACC3 and needs to be screened or come from a secure supply chain. On 1 July 2014 ACC3 needs to pass an EU aviation security validation process. There will be possibilities to become a third country regulated agent or known consignor on a voluntary basis.
Beware of ScamsThere is an abundance of scamming practices
out there and these are increasingly being
targeted at the freight forwarding industry.
Forwarders targeted
There are so many attempts to scam for-warders (mainly over the internet) that we could probably publish a whole edition of the FIATA Review dedicated to the subject. Current feedback is that there are more people than ever trying to con you. Mostly these scams are easy to spot and the usual tell-tale sign is an e-mail address such as Yahoo or Gmail for what is supposed to be a trading company however sometimes the scams are more elaborate such as the recent spate of fake demands purporting to have originated from iata.org.
Many members reported e-mail demands for payments from IATA however most of the e-mails had the usual signs of a scam such as an e-mail address like [email protected] or [email protected] however some of the more deceptive scammers have man-aged to replicate @iata.org into the e-mail suffix. Of course payments to IATA are via your CASS account and scam e-mails should be deleted immediately.
In the UK many BIFA members recently received an approach seeming to come from a legitimate company Towelsoft. This company is registered in the UK with Companies House and rudimen-tary checks would indicate a request for a quotation was authentic. Fortunately the scammer was not too bright and signed the e-mail “Peter Pan” causing a ripple of amusement from the members. However the point to beware of is that if a more be-lievable person’s name had been used then credit checks would indicate the company asking for the quote was bona fide.
Most of these scams start with you being asked to quote for moving a commodity. Our sector grapevine is full of these such as the Teddy Bear scam or the Wedding Dress scam. Another common one doing the rounds is to move furniture. In most cases the scammer deposits many times the quotation into your bank account and then requests you to send the “accidental overpayment” back to him. You send him legitimate money and the bank in the meantime says the deposit you have repaid against was worthless.
Individuals targeted too
And it’s not only freight forwarders being targeted. Private individuals and traders are being ripped off too.
In many cases a legitimate forwarder web-site is cloned and the scammers are hiding behind an image that looks genuine. The legitimate forwarder receives a call from an individual who thinks that they have purchased a car over the internet. They expect the forwarder will deliver the car to them and collect the balance due. The car does not exist and the company has
copied a forwarder website. The scammers make a quick hit and collect some depos-its (usually E2000) before disappearing completely.
Another current scam on traders is that cargoes of scrap metal are being offered to dealers at low prices supported by docu-ments that seem authentic. The commodi-ties offered can correspond with regular trading patterns and in some cases the offers are made in the name of legitimate traders. The potential buyer is provided with a sample of merchandise and buys worthless shipping documents. They are directed to track and trace facilities on a cloned website and by the time they understand they have been conned, the scammers have moved on.
Finally there was a recent article in Gulf News on how a Dubai trader had lost Dh360,000 to an e-mail hacker who had been monitoring his communications for months. When a lucrative trade was being negotiated the e-mail hacker sent invoices appearing to be from the supplier with whom the trader was negotiating but with scam bank details on them. By the time the trader realised the con the e-mail hacker was long gone with the money, and the bank account had been closed.
There is no substitute for knowing your customer and making extensive checks on anyone who is starting to do business with you. These are only a few examples of the tricks that scammers use and there is always a criminal out there planning the next move to target freight forwarders. Beware.
Robert Keen
Executive Director British International
Freight Association (BIFA)
FIATA REVIEW No. 97, MAY 201316
News
Green Freight Europe (GFE) was launched
as an independent voluntary program on
27 March 2012. It aims to be recognised as
the leading programme for improving
environmental performance of road freight
transport in Europe.
The vision behind it is to generate strong market incentives to engage companies across supply chains in the sustainable procurement of transportation services. To achieve a reduction in CO2 emissions, the GFE programme consists of three basic pillars:
1. Establishing a platform for monitoring and reporting of carbon emissions, to assist in the procurement of transpor-tation services and based on existing standards
2. Promoting collaboration between car-riers and shippers in driving improve-ment actions and monitoring progress
3. Establishing a certification system to reward shippers and carriers who fully participate in the program
Furthermore, a platform for sharing Best Practices will be implemented in 2013. It will encourage the knowledge exchange on innovations and technologies among member companies and simplify efficiency improvements.
Since the official launch lots of com-panies, including shippers, carriers and LSPs, joined GFE. Today more than 90 companies are involved, among them industry leaders like Deutsche Post DHL, TNT Express, Procter & Gamble and IKEA. Neutral host of the program is the European Shippers Council (ESC) together with the Dutch Shippers Council (EVO).
Advantages of joining the program are numerous. Shippers, carriers and LSPs can earn lots of benefits from their member-ship. Some of these are:
• MeasureandreduceCO2 emissions
• Meetthesustainabilityrequirementsofcustomers
• Be perceived as an environmentallyconscious company
• Benefitfromknowledgeexchangewithother companies
• Include sustainability in purchasingdecisions
• Enhancetheperceptionofsustainabil-ity within supply chains
To enhance collaboration between differ-ent related initiatives and programs as well as to bundle knowledge and experi-ences, GFE works together with the US SmartWay program and the Green Freight Asian Network (GFAN). The European Commission has given its backing to the scheme as well.
For further information please visit www.greenfreighteurope.eu
Personally
FIATA REVIEW NO. 97, MAY 2013 17
Green Freight Europe: The Road to Sustainable Transport
Meet Ernesto Arévalo SchoedlVice President of FIATA
Ernesto Arévalo Schoedl, born in Mexico
City, studied International Commerce at
3 universities and finished at the Interconti-
nental University in Mexico City. His career
in logistics started aged 17 when he joined
a customs broker company while studying.
He took care of several positions for
13 years and created the freight forwarding
division in 2004. Since 2012 he is Managing
Director at Blu Logistics Mexico. He joined
AMACARGA and became member of the
WG Sea Transport in 2004, followed by WG
Sea Transport Director, General Secretary,
Vice President, and now President until May
2013. Attending his first FIATA event in 2006,
he participated regularly as a member of the
WG Sea Transport and the ABVT.
Had you not joined the transportation business, which profession would you have chosen?I would have loved to be an actor, but maybe without success, or a lawyer, with maybe more success!
What fascinates you about the freight forwarding industry?It requires skills be developed, it is always changing and keeps offering huge op-portunities. Young people can take care of important projects and positions, and learning opportunities and new challenges are endless. I like that you meet new people, travel often and learn more about different cultures.
What was the motivation to accept your post with FIATA?I have always felt committed to give back to the industry. To protect and look after industry growth is very important. I feel more representatives from our region (Latin America) are needed in FIATA and in global freight forwarding meetings.
How do you view the state of the industry today, and in the future?There is much tougher competition than before. Despite the crisis, volumes are in-creasing in many instances, and although profitability and earnings decrease, higher volumes can compensate. The market is every day better prepared, has enhanced logistics knowledge, and demands greater added value, sharper rates and superior services. This requires professionalism, bigger investments, and creative ideas.
I wish to see all shipments passing through a freight forwarder, in at least one step of the supply chain. I would like to see forwarding companies adding value to
transportation, tracking, financing and logistics, and asset owners dedicated fully to the operation of their modes.
What advice would you give a young person joining the industry today?Get ready for long days, tough competi-tion, and a meaningful and joyful career. Do not speculate, be fair. Do not follow what has been done before, be creative. Learn how your company provides services, but also how your suppliers and competi-tors do.
What in your opinion has been mankind’s best invention?Not sure if it’s an invention but mathe-matics interests me greatly. It applies to every single issue of our lives, provides a foundation for tangible and abstract mat-ters and is used in every new invention and science.
Which famous person would you like to meet?Nelson Mandela. I would not only love to know him, but also follow his career more closely. Knowing his story, he demon-strated what integrity means in a man. He has always been dedicated to very specific but meaningful causes and managed to achieve them by being an example. To quote: “It always seems impossible until it’s done”.
Do you have any unfulfilled wishes?Yes, I just hope mine won’t remain unful-filled. Professionally I hope the day will come where I no longer am involved in details and daily issues, and instead am able to dedicate 100% of my time to strategy, planning and creative solutions implementation.
FIATA REVIEW No. 97, MAY 201318 FIATA REVIEW No. 97, MaY 2013 19
AgendaHere & There
Next Edition:
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Forthcoming EventsMay 20—22 2013, Guayaquil/Ecuador
Congress ALACAT 2013www.alacat2013.org
June 5 2013, Colombo/Sri Lanka
7th FIATA Region Asia Pacific (RAP) Meetingwww.fiata.com/fileadmin/light_author/dateien/RAP074_-_Circular.pdf
June 19—21 2013, Dar Es Salaam/Tanzania
Africa/Middle East (RAME) Field Meetingwww.rame2013.co.tz
October 16—19 2013, Singapore/Singapore
FIATA World Congresswww.fiata2013.org
September 29 —October 01 2013, Doha/Qatar
Qatar International Exhibition for Transport & Logistics, 2nd Edition
http://www.trans4qatar.com/
Happy Birthday!
Reach the freight forwarders’ management executives FIATA REVIEW
Next Edition: July 2013. Advertising deadline: 10 June 2013
Mr ivan Petrov (Bulgaria) celebrated his 55th birthday on 20th of April 2013. He became FIATA Delegate in 1994 and is active within FIATA in WG Rail and MTI. Since 2007 he is a Vice President and since 2010 he is Chairman of the WG Rail UIC/FIATA.
FIATA congratulates two well-known del-egates on their birthdays. We wish them many more years of good health and happiness.
Mr Rodolfo J.C. Sagel (Argentina) celebrated his 70th birthday on 6th of May 2013. He became FIATA Delegate in 1998 and from 2001 until 2005 he was a Vice President. Since 2005 he is Chairman of the Airfreight Institute.
International transport week in Odessa28.05 – 31.05.2013
Registration contacts:
Tel.: +380 48 7 385 385Fax: +380 48 7 385 375E-mail: [email protected]
transport-week.in.ua
Under support:
Official Partner
29.05 – 31.05 XII Exhibition & Conference "Inter-TRANSPORT"
28.05 – 29.05 East-West Transport Corridor Association (EWTCA) Odessa FORUM 2013
29.05 VIKING Train Anniversary Presentation
31.05 XI International Freight Forwarder's Day
30.05Third UNECE International Seminar on Single Window and Trade Facilitation
