e-Flash No. 190 - 17 December 2018


Rolf Schnellecke newest member of Logistics Hall of Fame

A glamorous stage for Professor Rolf Schnellecke: On December 5, 2018 the outsourcing pioneer was admitted access to the Logistics Hall of Fame on the occasion of the annual gala reception of the Logistics Hall of Fame in the historic Erich Klausener Hall of the German Federal Ministry of Transport in Berlin, Germany. Hosted by Federal Transport Minister Andreas Scheuer, more than 250 guests, including the leading figures of the automotive industry and logistics, accompanied the Chairman of the Supervisory Board of Wolfsburg-based Schnellecke Group AG & Co. KG, when he received the membership certificate.
Among the sponsors of the Logistics Hall of Fame are FIATA and its German Association member DSLV.

For more details please visit: https://www.logisticshalloffame.net/en


Maiden Ghana Logistics and Transport Awards held

The maiden edition of Ghana Logistics and Transport Awards (GLOTA) has been held in Accra to appreciate and reward industry players for their excellence and outstanding performance in the sector.                

Mr Obilor said, there were some challenges in the process of organizing the first edition of the awards, but with the support of some members including MacDonald Bubuama, the Events Coordinator and the support from Ghana Institute of Freight Forwarders (GIFF), the awards was successful.                    

For more details, please visit: https://www.businessghana.com/site/news/business/178092/Maiden-Ghana-Logistics-and-Transport-Awards-held


Transporters now get 30-day grace period on transit goods

The Tanzania Revenue Authority has issued a month ultimatum to 143 clearing and forwarding companies to provide documentary proof that goods in transit they handled reached their destinations.

Briefing journalist in the capital Dar es Salaam yesterday, the vice presidency of Tanzania Freight Forwarders Association (TAFFA), Mr. Edward Urio, said that last Friday, the TRA Commissions for customs suspended the said companies from operating.

For more details, please visit: https://www.thecitizen.co.tz/News/Transporters-now-get-30-day-grace-period-on-transit-goods/1840340-4891768-on04qqz/index.html



Pre-January frontloading drives record US Q4 box imports

The latest Container Trade Statistics (CTS) data revealed that headhaul transpacific volumes in October rose 7.4% year-on-year to 1.62m teu, giving lines and forwarders a healthy boost as the traditional peak season was extended into the fourth quarter. And the latest US port figures support the trend noted by CTS. The monthly Global Port Tracker report produced by the National Retail Federation and Hackett Associates recorded record US box imports in October at retail ports and predicted further substantial year-on-year gains in November and December.

“Imports at the nation’s major retail container ports have set another new record, reaching two million containers in a single month for the first time as retailers continued to bring merchandise into the country ahead of a now-postponed increase in tariffs on goods from China,” said the report.

For more details, please visit: https://www.lloydsloadinglist.com/freight-directory/news/Pre-January-frontloading-drives-record-US-Q4-box-imports/73400.htm#.XBDMm2j0mF4


Asia-North Europe spot rates to remain stable to year end

Asia-North Europe spot rates are likely to remain stable through to the end of this year thanks to a strengthening in demand that looks set to offset increases of capacity, according to analysis by Drewry. The container shipping analyst also believes carriers will be looking for a small rise in contract rates for next year, “but are more intent on convincing the market of the need to share the fuel burden arising from the IMO 2020 rules”.

“For the first time this year the headhaul Asia to North Europe container trade in October was able to string together two consecutive months with positive year-on-year growth,” it noted, highlighting that westbound demand increased by 7.8% in September, followed by a 5.4% rise in October, according to data derived from Container Trade Statistics.

For more details, please visit: https://www.lloydsloadinglist.com/freight-directory/news/Asia-North-Europe-spot-rates-to-remain-stable-to-year-end/73399.htm#.XBDcQmj0mF4


New FMC Rule for NRAs (Negotiated Rate Arrangements)

The Federal Maritime Commission (FMC) issued Final Rules pertaining to Non-Vessel Operating Common Carrier (NVOCC) Service Agreements (NSAs) and Negotiated Rate Agreements (NRAs) that will become effective Aug. 22, 2018.

The Final Rule on NVOCC Service Agreements eliminates the requirements that NVOCCs file NSAs with the FMC and publish essential terms of each NSA in tariff format; but it adds requirements that NVOCCs provide free access to its tariffs to the public and include in their tariffs a notice that they will conduct business utilizing NSAs.

The Final Rule on NRAs enables NVOCCs to amend NRAs at any time, permits NVOCCS to include non-rate economic terms in an NRA, and allows pass through of vessel operators' General Rate Increases (GRIs) and pass-through rates and charges, if and when incurred. The FMC also will allow NRAs to become effective upon the shipper's booking of cargo with the NVOCC.

For more details, please visit: https://www.lexology.com/library/detail.aspx?g=66820fd1-a8b1-413f-8ced-3d5964821abf



Cargo volumes trending higher at a moderate rate into Q4

IATA reported that:

  • Industry-wide freight tonne kilometres (FTK) grew by 3.1% year-on-year in October. As we have argued before, the current period of moderate FTK growth is consistent with the typical pattern seen after inventory restocking cycles.
  • Freight volumes have continued to trend upwards into the traditional period of strong demand during the final quarter of the year. Nonetheless, demand drivers, including consumer confidence, have softened since early-2018.
  • The industry-wide load factor fell in annual terms for the eighth month in a row in October. Following the recent moderation in the demand trend, capacity is once again trending upwards at a faster annualized pace.

For more details, please visit: https://www.iata.org/publications/economics/Reports/freight-monthly-analysis/freight-analysis-oct-2018.pdf


Cautious Optimism Extends into 2019 Airlines Heading for A Decade in the Black

IATA forecasts the global airline industry net profit to be $35.5 billion in 2019, slightly ahead of the $32.3 billion expected net profit in 2018 (revised down from $33.8 billion forecast in June). Highlights of expected 2019 performance include:

Lower oil prices and solid, albeit slower, economic growth (+3.1%) are extending the run of profits for the global airline industry, after profitability was squeezed by rising costs in 2018. It is expected that 2019 will be the tenth year of profit and the fifth consecutive year where airlines deliver a return on capital that exceeds the industry’s cost of capital, creating value for its investors.

For more details, please visit: https://go.updates.iata.org/webmail/123902/960020945/448aa6855168837975e946640a99ba560cf6cebb2ca885bf0b49481643b05b88


Etihad Cargo Expands Global Network with Launch of Services to Barcelona

With the launch of Etihad Airways passenger services to Barcelona, Etihad Cargo has expanded its cargo capacity into Spain, providing freight forwarders and cargo customers greater access to its global network along key trade routes connecting Europe to the Middle East, Africa and Asia over its Abu Dhabi hub.

Etihad launched its first scheduled flights linking Abu Dhabi and Barcelona on November 28. Combined with its daily Madrid service, launched in 2015, these operations now offer more than 23,000 tons per year of cargo capacity for the Spanish market. In addition, trucking services from gateways across Europe further compliment the network, offering customers greater reach and faster delivery times.

For more details, please visit: https://www.albawaba.com/business/pr/etihad-cargo-expands-global-network-launch-services-barcelona-1225212



5th EU Rail Freight Day in Vienna

Under the auspices of the Austrian Presidency of the Council of the European Union the 5th EU Rail Freight Day took place on December 6th, 2018 in Vienna, organised by the European Commission and RailNetEurope.
The Austrian Presidency used this opportunity to present an initiative for improvements in international rail freight (follow-up to the “Rotterdam Declaration” of June 21, 2016).

Among the high-level panellists was also FIATA Senior Vice President Dr. Ivan Petrov, who strongly advocated the FIATA Bill of Lading (FBL) as a multimodal transport document, the use of which could further enhance multimodality.

For more details, please visit: https://blog.railcargo.com/en/rail-freight-day-2018/


Truck driver shortage crisis now spreading across the whole of Europe

European Road Freight Transport 2018 reported that the supply chain analyst shows that in just six countries – the UK, Germany, France, Denmark Sweden and Norway – the shortage of drivers adds up to 127,500.

The UK leads the way with a shortage of 52,000 drivers, but is closely followed by Germany at 45,000 vacancies – with predictions that this could increase by a staggering 28,000 each year.

The report says: “In Germany, the DSLV transport union reports that in the next 15 years, two-thirds of drivers will retire. Germany is facing a shortage of 45,000 truck drivers, with around 30,000 leaving the profession every year. This compares with only 2,000 people receiving truck-driving qualifications each year.”

For more details, please visit: https://www.bifa.org/news/articles/2018/dec/truck-driver-shortage-crisis-now-spreading-across-the-whole-of-europe?l=y


German freight transport to move from road to rail

The European Commission has approved a scheme of state aid to support the transfer of German freight transport from road- to rail-based routes.

The scheme, which will support rail freight operators in taking over management of German freight transport, has an annual budget of €350 million and will run from 2018 to 2023. It forms part of a greater push across Germany and the rest of the EU to reduce road congestion and carbon emissions in order to combat climate change and global warming.

For more details, please visit: https://www.governmenteuropa.eu/german-freight-transport-road-rail/91461/


Slovakia has plenty of space to become transit hub on New Silk Road

Slovakia aims to become an important transit country on the New Silk Road. To be precise, it wants to acquire a share of at least fifty per cent of all railway traffic between Europe and China, and it is able to facilitate such volumes. The railway network has sufficient unused capacity, and an even larger spare transloading capacity, the government points out.

The advantage of the route through Slovakia is that it offers spare transloading capacity of approximately ninety per cent, in addition to sufficient free capacity for the transit of trains through Slovakia. Slovakia can handle about 25 more complete trains per day, the Slovak Ministry of Transport and Construction pointed out.

For more details, please visit: https://www.railfreight.com/specials/2018/12/04/slovakia-has-plenty-space-to-become-transit-hub-on-new-silk-road/



Freight Forwarders in South Africa, 2018 - Lucrative Opportunities from Transport-Related Infrastructure Projects - ResearchAndMarkets.com

The "Freight Forwarders in South Africa 2018" report has been added to ResearchAndMarkets.com's offering. This report focuses on the freight forwarding and customs clearing industry and excludes courier activities and the arrangement of freight insurance. It examines current conditions and future opportunities and challenges for the industry in South Africa, on the continent and globally.

The freight forwarding and customs clearance sector is a major facilitator of trade in South Africa and it co-ordinates over 80% of the country's international trade. The value and growth of the market is entirely dependent on local and global economic conditions and trade, over which it has no control.

For more details, please visit: https://www.businesswire.com/news/home/20181206005312/en/Freight-Forwarders-South-Africa-2018---Lucrative


Traditional forwarders beginning to see the threat from online platforms

Logistics, Trends, and Insights (LTI) report claims traditional players have made “significant investments” to offset threats from online operators entering the $220bn global market.

“Many legacy forwarders have launched their own online platforms, which they believe presents an opportunity to attract small-to-medium-sized customers,” says the report.

For more details, please visit: https://theloadstar.co.uk/traditional-forwarders-beginning-see-threat-online-platforms/


E-freight and the e-AWB: How much longer can we wait for full implementation?

UK freight forwarder Gerry Burgin, with some 58 years in the air cargo business, is still passionate about airfreight digitalisation after more than two decades. Burgin is using his experience to call for widespread adoption of the electronic air waybill (e-AWB) as a first step in full digitalisation of the air cargo supply chain.

The progress since then has dragged on very slowly and even now uptake on agreed trade lanes has only just climbed to over 50%, mainly because of the multi-nationals' interest (in which I was very much involved as a consultant) and in certain areas of the world where use of e-AWB has been mandated and/or strictly encouraged.

For more details, please visit: https://www.aircargonews.net/news/single-view/news/e-freight-and-the-e-awb-how-much-longer-can-we-wait-for-full-implementation.html



ITF: measures to decrease road freight CO2 emissions

A new brief published by the International Transport Forum (ITF)—an intergovernmental organization at the OECD with 59 member countries—identifies proven measures that decrease road freight’s CO2 emissions.

Moving goods by road consumes about 50% of all diesel produced; 80% of the global net increase in diesel use since 2000 comes from road freight. Furthermore, road freight activity is set to more than double from 2015 to 2050. This will offset any expected efficiency gains and lead to an increase in emissions by 2050, not a reduction.

The ITF report highlights policy areas that need adjustment for effective decarbonization of road freight and points to fields where more robust evidence through further research is needed.

For more details, please visit: https://www.greencarcongress.com/2018/12/20181210-itf.html


COP24: Consensus on global emission reduction key to carbon markets’ success

Negotiations on the rules for Article 6 of the Paris Agreement—the Article concerned with the setting up of carbon markets—moved at snail’s pace over the first week of the 24th Conference of Parties (COP 24) to the United Nations Framework Convention on Climate Change (UNFCCC) at Katowice, Poland.

Some progress has been made regarding sub-article 6.2, which is concerned with cooperative approaches and internationally transferred mitigation outcomes (ITMOs). But, many elements of sub-articles 6.4 (Sustainable Development Mechanism) and 6.8 (non-market approaches) have been pushed over to be further developed under the guidance of the Subsidiary Body for Scientific and Technological Advice (SBSTA) and then considered in COP25 in 2019.

For more details, please visit: https://www.downtoearth.org.in/news/climate-change/cop24-consensus-on-global-emission-reduction-key-to-carbon-markets-success-62460


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