e-Flash No. 209 - 23 September 2019

FIATA AND MEMBERS

FIATA WORLD CONGRESS 2019 – LAST CHANCE

The FIATA 2019 Registration Team is ready and waiting to facilitate your Congress Participation.

Have you registered to attend? Here’s a reminder of why you won’t want to miss FIATA 2019.

https://www.youtube.com/watch?v=BycLSY74zbQ&feature=youtu.be

CONGRESS REGISTRATION – SIGN UP TO ATTEND AND BOOK YOUR HOTEL

Registration rates increase as much as $115 after 1 September so register right away to qualify for the Standard Rates.

www.fiata2019.org.za

Vietnam: FIATA Graduation Ceremony for the 20th Batch of International Business students

After 2 years of efforts and hard work, as part of the curriculum of Bachelor of International Business, the 20th batch of students from the high-quality program have completed FIATA Diploma program in international freight forwarding certified by the Federation of International Freight Forwarders Association. In the morning of September 21, 2019, Faculty of Business Administration and Vietnam Aviation and Logistics School (VILAS) held a solemn graduation ceremony to award FIATA Diploma graduates at Hall A403 - Ton Duc Thang University.

Opening the ceremony, Dr. Tran Trong Dao - Vice President of Ton Duc Thang University shared the potentials and advantages of Logistics and emphasized on the importance of training high quality human resources. Mr. Thomas Sim congratulated the students for their achievements and shared with them future trends of logistics development and the rising career opportunities for Logistics-Supply Chain Management, Import and Export. In addition, he explained the important role and impact of FIATA as an official global representative organization of the logistics service industry.

For more details, please visit: https://fba.tdtu.edu.vn/en/news/mou-signing-ceremony-and-fiata-graduation-ceremony-for-the-20th-batch-of-international

WORLD ECONOMY

New ICC Incoterms 2020 Released

ICC has launched Incoterms 2020, the newest edition of the renowned trade terms in 29 languages available for purchase at the ICC’s Bookshop. Access to the rules have also been made easier through a dedicated Incoterms 2020 mobile app.

FIATA was part of the International Chamber of Commerce (ICC) consultation that gave feedback to the drafting committee and made comments on the proposed changes in the 2020 edition. Some brief highlights trailed by the ICC are that Incoterms® 2020:

  • Provides for demonstrated market needs in relation to bills of lading (BL) with an on-board notation on the Free Carrier (FCA) Incoterms®
  • Aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
  • A change in the three-letter name for Delivered at Terminal (DAT) to Delivered at Place Unloaded (DPU).
  • Includes arrangements for carriage with own means of transport in FCA, Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
  • Includes security-related requirements within carriage obligations and costs.

The ICC warns users to be wary of anything other than official ICC guidance; relying on information found online is a major cause of incorrect usage of Incoterms®, with adverse consequences for businesses and their insurers.

FIATA recommends members to reference the ICC new rules in their day to day business dealings. For those wanting to get familiar with the new Incoterms, the ICC Academy, ICC’s dedicated e-learning platform, is offering Incoterms® 2020 training courses, as well as the Incoterms® 2020 Certificate

Australia: Guidance for conducting BMSB Treatments

Stakeholders in the import and shipping industries—including Master Consolidators, vessel masters, freight forwarders, treatment providers, Biosecurity Industry Participants, importers, customs brokers and principal agents—associated with shipping or importing goods that require increased intervention during the 2019-20 BMSB risk season.

The department has published a series of factsheets to provide further guidance on conducting effective and compliant BMSB treatments. The factsheets provide a summary of key compliance requirements regarding:

For more details, please visit: http://www.agriculture.gov.au/import/industry-advice/2019/150-2019

UK NO-DEAL BREXIT PREPAREDNESS

The UK government has launched a ‘Get Ready for Brexit’ public information campaign, starting from Monday 16 September, to help ensure the general public and businesses are ready when the UK leaves the EU on 31 October 2019.

A new checker tool will help businesses to identify quickly what they need to do to ‘Get Ready for Brexit’. As part of the campaign, there will be 30 ‘Get Ready for Brexit’ events across the country for businesses and organisations. The Brexit Business Readiness Events website provides for registrations and further information on the upcoming events.

FIATA has been engaged with our local partners CLECAT, BIFA and other European Freight Forwarding Associations on advising members as to the possible scenarios and outcomes of BREXIT. BIFA has prepared a preparedness toolbox and border guidance to help freight forwarding members prepare.

For more details, please visit: https://www.clecat.org/media/NL29SEC19.pdf

Construction on China-Russia cross-border logistics hub begins

Construction on a China-Russia cross-border logistics hub has begun in Heihe, northeast China's Heilongjiang Province. The China-Russia cross-border Heihe-Yuexing logistics hub covers about one square kilometer and will be built with an investment of about 3 billion yuan (about 423.4 million U.S. dollars), local authorities said.

Upon completion, the hub will mainly perform logistics and warehousing functions, supplemented by intelligent management, commerce finance and public service. The project will also integrate resources including containers, construction materials, facilities and equipment, and agricultural products, as it aims to establish an intelligent logistics platform in Heihe, focusing on China-Russia border trade.

For more details, please visit: http://www.xinhuanet.com/english/2019-09/18/c_138402285.htm

SEA FREIGHT

USA: Proposed Interpretive Rule on Demurrage and Detention Issued

The Federal Maritime Commission of United States is seeking public comment on a proposed interpretive rule on demurrage and detention under the Shipping Act.

This interpretive rule would provide the public with guidance about how the Commission assesses the reasonableness of demurrage and detention practices and regulations under the Shipping Act. The interpretive rule describes a non-exclusive list of factors the Commission may consider in evaluating claims and complaints that come before the agency under 46 U.S.C. 41102(c) and 46 C.F.R. 545.4(d).

FIATA acknowledges that demurrage and detention charges are a valid and important tool for shipping lines to ensure that their equipment is being returned as fast as possible however merchants should not be subjected to unjust and unreasonable charges. We have therefore prepared a best practices guide on this topic.

For more details, please visit: https://www.fmc.gov/proposed-interpretive-rule-on-demurrage-and-detention-issued/

Egypt to launch the largest logistics project in Middle East

Transport Minister Kamel al-Wazir witnessed the signing of a Memorandum of Understanding (MoU) between the Transport Ministry and major European and German companies in the field of handling container terminals, dry ports and logistics to launch the largest logistics project in the Middle East and Africa.

The project includes a container terminal, a railway line, a dry port and a cargo distribution area, with a total investment of 750 million euros, as a first phase. The corridor will serve ports of the Eastern branch of the Suez Canal and ports overlooking the Mediterranean, which will reduce pressure on road transport, he said.

For more details, please visit: https://egyptindependent.com/egypt-to-launch-the-largest-logistics-project-in-middle-east/

Trade war slows freight activity

The ongoing trade war between the U.S. and China has put the damper on freight activity – not just for Washington state but across the U.S. While a recent report by the state Economic and Revenue Forecast council (ERFC) noted a significant drop in state exports, a Sept. 16 meeting of the Tri-State Transportation Commission revealed a nationwide decrease in inbound freight volume for certain products.

Data collected on freight volumes for the second quarter of the 2019 fiscal year shows a drop compared to the same time last year; trucking volumes have also decreased. Ocean freight shipping rates have jumped as a result because “they can’t adjust quickly.”

Eric Jessup the associate director of the Freight Policy Transportation Institute at Washington State University stated “We have companies trying to move freight (in a) very quick timeframe in advance of when the tariffs are going to take place,” he said at the Sept. 16 meeting. “Whenever you try to move things very quickly, it causes rates to jump.”

With free trade increasingly challenged on several fronts in recent times and in the light of recent trends observed in US trade policies (as well as in other countries), freight forwarders and logistics service providers decide to speak up to reconvene the benefits of the open, liberal and global trading system which has been built in the last few decades and has ensured better living conditions to the vast majority of humanity. This was highlighted in FIATA Position Paper which can be found here.

For more details, please visit: https://thelens.news/2019/09/18/trade-war-slows-freight-activity/

AIR FREIGHT

Airfreight rates on key routes tumble in August

Airfreight rates on the major transpacific and Asia-Europe routes began to come under severe pressure in August as demand declines increasingly take their toll on pricing. The latest figures from TAC Index show that average prices on services from Hong Kong to North America slipped by 16.9% year on year to $3.29 per kg.

In year-on-year percentage terms this is the biggest drop off in prices since August 2016. Earlier this year, contacts said that pricing was holding up despite the decline in the overall cargo market. However, prices on this route have now been down compared with a year ago for nine consecutive months and the drop off has sped up since May.

Read more at https://www.aircargonews.net/airlines/airfreight-rates-on-key-routes-tumble-in-august/

Saudi oil attacks set to hit air cargo prices

It is “inevitable” that spikes in the price of oil as a result of attacks on Saudi Arabian facilities at the weekend will drive up the price of air cargo. The attacks, which took place on Saturday, took out around 5% of global oil supply.

Brent Crude prices – a benchmark for jet fuel hedging – initially surged by around 20% on Monday when trading opened. By the end of the day had settled at around 15% higher than at the start of the day at around $69 per barrel.

For more details, please visit: https://www.aircargonews.net/airlines/saudi-oil-attacks-set-to-hit-air-cargo-prices/

RAIL AND ROAD FREIGHT

Kenya says Chinese-built railway will not affect road freight transport

Kenya said on Wednesday the implementation of the Chinese-built standard gauge railway (SGR) which runs from Mombasa to Nairobi has continued to improve transportation of cargo and passengers and will not affect the road freight transport sector.

James Macharia, Cabinet Secretary in Ministry of Transport, Infrastructure, Housing and Urban Development said in Nairobi that even as the use of the SGR is at full capacity, it can only move 40 percent of the total traffic passing through the port of Mombasa, leaving the remaining 60 percent to be transported by road.

FIATA encourages development in both modes, road and rail, to ensure that different options are available to shippers and our members as some customers wish to save costs while others want goods in a timely manner. Modal options reduce the possibility for bottlenecks and create for a smoother supply chain therefore FIATA appreciates Kenya’s in development both modes.

For more details, please visit: http://www.xinhuanet.com/english/2019-09/12/c_138384861.htm

Small Carriers Expanding Fleets as Large Carriers Reduce Tractor Counts

According to the Federal Motor Carrier Association (FMCSA) data, carriers who operate smaller fleet sizes of one to six trucks continue to add power to their operation, with tractor counts growing 5% since last September.

Over the same time, fleets who operate more than 1,000 units have decreased tractor count size by almost 3.5%. A byproduct of the sell-off has been continued increase in used truck prices for 3-year-old class 8 trucks, even as the freight market has softened from a year-over-year perspective.

For more details, please visit: https://finance.yahoo.com/news/small-carriers-expanding-fleets-large-140259106.html

INNOVATIONS

New think-tank set up to spur innovation in logistics sector

Reefknot Investments, a venture capital fund backed by Singapore investment firm Temasek, has set up a think-tank with four other industry players to spearhead changes in the supply chain and logistics industry.

Representatives from Reefknot, Switzerland-based transport and logistic firm Kuehne + Nagel and Singapore Government-owned firm SGInnovate, as well as supply chain expert Wolfgang Lehmacher, signed a memorandum of understanding in Singapore.

For more details, please visit: https://www.straitstimes.com/business/companies-markets/new-think-tank-set-up-to-spur-innovation-in-logistics-sector

How blockchain can transform logistics

Blockchain could boost global trade by $1 Trillion in 10 years and now the Port of Rotterdam is embracing this technology. “With blockchain, we are already beyond the hype,” explains Martijn Thijsen, Digital Strategy, Transformation and Business Development at the Port of Rotterdam. “It’s early stages and there are challenges to figure out.

But, we see multiple uses for blockchain technology and the impact potential is enormous. Rotterdam’s ambition is to be the world’s smartest port and we see this technology as key to supply chain optimization and energy sustainability.”

FIATA will be hosting Dee Waddell, Global Trade Director at IBM, at our upcoming World Congress in Cape Town. This will be a prime opportunity to gather his insights into the future of such blockchain technologies interacting with the logistics providers and other key stakeholders in the supply chain.

For more details, please visit: https://www.freshplaza.com/article/9144474/how-blockchain-can-transform-logistics/

Descartes Delivers Industry-leading Real-time Air Freight Tracking Enhancements

Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced that the Descartes Core™ Unit Load Device (ULD) Tracking solution now offers enhanced network performance capabilities and new support for mobile phone applications.

The developments provide air carriers with an industry-leading, Bluetooth-enabled solution to automatically monitor the real-time location of international mail, parcel and cargo shipments, whether they are on the ground or in the air.

For more details, please visit: https://www.globenewswire.com/news-release/2019/09/17/1916504/0/en/Descartes-Delivers-Industry-leading-Real-time-Air-Freight-Tracking-Enhancements.html

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