E-Flash No 24 - 25 March 2011

Successful Headquarters Session 2011

The Headquarters Session 2011 (17-20 March in Zurich) was the most successful in the history of FIATA, in terms of participants, but also in terms of driving many industry issues forward, said FIATA President Jean-Claude Delen. “Some 213 representatives of freight forwarders associations from 63 countries attended the meetings. We saw lively, result oriented debates, highlighting best practices and weaknesses. We took some important steps towards raising industry standards and formulating strategies for the future”.

More detailed information about the meetings of our Institutes, Advisory and Regional Bodies will be published in the next FIATA Review, which shall be sent out by mid-April 2011.

FIATA Region Asia Pacific (RAP) Field Meeting in conjunction with meetings of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)

The dates of this year’s field meeting of the Region Asia/Pacific in conjunction with UNESCAP were confirmed at the meeting of the Region Asia/Pacific at the recent HQ Session 2011:

22-24 June 2011 in Bangkok, Thailand

The 5th RAP Field meeting will take place on 22 June (Wednesday) in Bangkok, Thailand and will be hosted by our Association Member TIFFA, the Thai International Freight Forwarders Association.

The UNESCAP Regional Forum of Freight Forwarders, Multimodal Transport Operators and Logistics Service Providers will be held at the premises of UNESCAP Bangkok on 23 June 2011 (Thursday), and the UNESCAP Meeting of Chief Executives of National Associations of Freight Forwarders and Multimodal Transport Operators and Logistics Service Providers on 24 June 2011 (Friday).

RAP Field meetings are offering a unique platform to discuss more deeply all the issues of concern to our members in the region. Mark the dates in your diaries and block these dates and do prepare yourselves to participate.

We would appreciate if you could inform the FIATA RAP Manager by E-mail (bloch(at)fiata.com, cc: phasukit(at)un.org) about your intention to participate. At a later stage the Agenda, Registration form, information about the venue and Hotel accommodation, etc. will be published on the FIATA website.

Also Individual Members of FIATA are invited to attend the 5th RAP Field meeting on 22 June 2011. We are looking forward to your participation.

Please not that participation at UNESCAP meetings is subject to separate acceptance by the ESCAP Secretariat.

FIATA Airfreight Institute announces Industry Relations Action Plan

At the HQ meeting, AFI Chairman, Rodolfo Sagel announced a new direction in industry relations between the forwarders and air carriers.

He stated “IATA’s role should no longer be that of a regulatory body of the forwarders. The historical reasons for IATA Accreditation and Training of forwarders dating back some 50 years ago are no longer valid as the air cargo industry has matured. To be clear IATA Accreditation of forwarders is no longer required, IATA Training of forwarders is no longer required, as both functions are performed adequately by the forwarding industry itself, through FIATA and its members.”

For more detailed information please read the FIATA Press Release 11/03 of 18.03.2011:

link to FIATA Press Release 11/03 of 18 March 2011

NVOCC tariff publication in the United States

Twenty years ago. i.e. in 1991, FIATA first requested an exemption from the Federal Maritime Commission for the requirement for NVOCCs to file tariffs. On 25 February 2011 the Federal Maritime Commission published the final rule which will be effective 18 April 2011. This will create a new pricing option that NVOCCs in the USA may utilize instead of tariffs or NVOCC Service Arrangements or NSAs. The final rule does not cancel the existing FMC tariff regulations; it modifies these regulations to establish a new Negotiated Rate Arrangement option or NRA. NVOCCs outside the USA, who are registered with FMC, but not licensed, are not eligible to utilize the new Negotiated Rate Arrangement option and must continue to move all shipments to/from the USA under tariff rates, or they may utilize NVOCC Service Arrangements (NSA).

Whilst this is some progress for US based NVOCC the Working Group Sea Transport is disappointed that it creates a competitive disadvantage for non USA based NVOCC who already have more stringent bond posting requirements than US licence holders.

Further action will be discussed at the next Working Group Sea Transport meeting in June 2011. The WG Sea will inform the members about the result of the internal dialogue.

INCOTERMS

Incoterms came into existence in 1936 as a series of sales terms, published by the ICC for use in international commercial transactions. Incoterms are reviewed approximately every ten years to ensure that they relate to current world trade practices.

One thing to remember is that Incoterms do not get automatically superseded by a new edition. To use an Incoterm correctly the edition should be stipulated. For example “FOB Shanghai Incoterms 2000” or “FOB Shanghai Incoterms 1990” are both valid Incoterms should a seller and buyer be in agreement. To use the latest variation of Incoterms a seller would have to clearly indicate “FOB Shanghai Incoterms 2010”.

Indeed this is probably one of the most misunderstood aspects of Incoterms by shippers and consignees who still regularly use traditional Incoterms used prior to 1936 together with made up terms of their own.

25 March 2011

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