FIATA e-Flash No. 212 – 18 November 2019


FIATA critical of detention and demurrage process

In its submission to the United States (US) Federal Maritime Commission (FMC) Review of container detention and demurrage charges FIATA supported a more transparent, equitable and business orientated process as regards the determination and levy of such charges not only in the US but in other economies where industry operated under similar processes.

FIATA was critical of the practice which surrounds the determination of detention and demurrage charges which were highlighted in the FMC Review. It also questioned the rationale for such charges in achieving the orderly movement of containers to, and from, ports, terminals or depots rather than being pure finance generators.

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2022 FIATA World Congress – Panama in the News

Panama must strengthen the national logistics strategy and migrate from manual procedures to digitalization, said the Panamanian Association of Cargo Agencies, APAC. It was featured in a recent news station in Panama.

Urrutia, who recently assumed the presidency of the guild for two years, has as its main challenge, to organize the FIATA World Congress in Panama for 2022. The most important international meeting in the logistics sector.

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Lifetime achievement award for BIFA’s Robert Keen

Robert Keen, director general of the British International Freight Association (BIFA), has been presented with a lifetime achievement award at the Global Freight Awards.

Mr Keen has worked in the industry for some 50 years, at a number of freight forwarders. He joined BIFA in 1999, becoming executive director a decade later, and DG in 2014. “We are delighted that Robert has been presented with this prestigious award, which reflects his excellent record of achievement in a lifelong career in freight forwarding and logistics,” said BIFA national chairman John Stubbings.

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FIATA Participates in Euro Transit Forum in November 2019

FIATA represented by Mr. Yang Yuntao, Chairman of FIATA Advisory Legal Matters, participated in “The Potential of Eurasian Transit and Far East Sea-Rail Multimodal International Business Forum” hosted by the Coordinating Council on Trans-Siberian Transportation and North Star.

The event attracted 150 representatives and provided an opportunity for FIATA to highlight the importance of the Negotiable FIATA Multimodal Bill of Lading of which over 1 million copies are issued every year around the world.

Chair Professor Issa Baluch given TIACA’s Air Cargo Professional 2019 Award

Each year, the TIACA Hall of Fame honors air cargo professionals who have played a role in the progress made by the aviation sector and have helped to shape and grow the industry. This year, TIACA has chosen to give recognition to Issa Baluch, the multi-faceted air cargo expert, for all of his work as a key player in the industry.

“I am honored, humbled, and mighty grateful for this award,” said Issa Baluch. “Family and friends are equally joyed and to me this is a testament to the many teams and individuals that have worked side by side with me to excel, be it in the logistics world, or in Corporate Social Responsibility!”

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FIATA Train the Trainer Course in El Salvador

FATA is scheduled to deliver a train the trainer course in El Salvador on December 4-14th, 2019. The program is delivered through the FIATA Foundation, an independent body operating under direct supervision of the Swiss federal government.

The Foundation delegates a team of professional trainers to introduce and implement a qualified training structure. The courses provide knowledge of the profession, based on the “FIATA Minimum Standards (FMST)” elements of pedagogy and practical advice on how to set up a teaching program. Since 2002 FIATA Foundation has carried out programmes in over 15 countries.

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PCFC Discusses Wider Horizons For Trade And Logistic Services in Dubai

Dubai (UrduPoint / Pakistan Point News – 09th November, 2019) Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation confirmed that the Dubai government-led policy initiatives and investments improved growth prospects in trading partners, and preparation to host Expo 2020 are providing the bedrock for increased investment in Dubai.

In his opening speech at the 3rdCustoms Consultative Council (DCCC) meeting 2019 which Dubai Customs organizes quarterly, bin Sulayemsaid the allegations of an economic crisis scattered around by some media is baseless.

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N$23m logistics hub for Arandis

An ambitious logistics hub and truck port project that will capitalise on the increased cargo destined for the Southern African Development Community (Sadc) via the port of Walvis Bay was launched on Friday in Arandis.

The aim is to create an industrial hub at Arandis with the focus on providing tailor-made logistic support to the Namibian logistics industry, create employment and contribute to the Arandis economy, while developing a hub that will be of service to companies outside the rust belt of Arandis.

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Major changes programmed for logistics: threats or opportunities?

Environmental change is not the only key trend which will significantly shape business models, but it is important to look at coming change together to see how businesses will need to progress.

“The changes we know are coming are digitalisation, emissions reduction, constraints of labour and changing consumer behaviour driven by e-commerce,” said Frank Verhoeven, chief executive of Vos Logistics.

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China Focus: Faster logistics powers Singles’ Day shopping

Xu Ze in Hangzhou, Zhejiang Province, placed an order for a pair of sneakers Sunday night, and minutes after she headed out to work early Monday morning, the package had arrived at her door.

Singles’ Day or Double 11, an annual shopping spree, kicked off from Sunday midnight. Sales on Alibaba’s e-commerce platform TMall hit 10 billion yuan (about 1.43 billion U.S. dollars) after one minute and 36 seconds into Monday.

FIATA, in its position paper states, as eCommerce is changing so fast, there is a risk of knee-jerk reactions at first incidences, which could deter new logistics solutions and facilitation. This can be only avoided by working together with mind set on to sustainable development, with eyes open toward innovative solutions, probably at a faster pace than originally expected.

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Amazon opens new logistics center in Poland

The 60,000 sum facility in the village of Okmiany (455 km southwest of Warsaw) will ultimately employ more than 1,000 staff, using modern technology including robots, which will allow orders to be processed faster, according to Amazon.

The U.S. company started operations in Poland in 2014. It now has seven logistics centers in the country, including the one in Szczecin (566 km northwest of Warsaw), pictured above, a research facility in the northern city of Gdańsk and an Amazon Web Services center in Warsaw, according to PAP. Amazon employs more than 16,000 people in Poland, the press agency adds.

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UK Chamber of Shipping Presses IMO on Global Climate Change Agenda

Readers of Private Eye will have noted the latest addition (no.1508) was critical of the lack of publicity for the climate change meeting being held this week at the London headquarters of the International Maritime Organization (IMO) in a piece titled ‘Fuel’s Errand’.

As the piece pointed out the IMO is made up of a broad spectrum of vested interests and opined that there are several schemes proposed which might have a real impact on the production of greenhouse gases from merchant shipping, noting these may well not be adopted given the history of voting in the IMO.

To achieve such outcomes, FIATA emphasises more focus on enhancing logistics connectivity in conjunction with greater trade facilitation by interconnecting all modes of transport to offer seamless travel, better lead times and less congestion resulting in greater movement of goods and stimulus economic package.

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Container Carrier MSC Orders Five Giant Box Ships for $762 Million

Mediterranean Shipping Co. will buy five giant container ships from South Korean yard Daewoo Shipbuilding & Marine Engineering Co. for $762 million in a new sign that ocean cargo carriers are building up their capacity despite falling freight rates and weak trade growth.

DSME announced the order Monday without naming the buyer. Two people familiar with the matter said Geneva-based MSC, the world’s second-largest container shipping carrier by capacity, exercised an option to buy the vessels as part of a previous order.

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Anger as Lufthansa pays ‘the wrong recipient’ to settle air cargo cartel case

Airline executives are up in arms following the news that Lufthansa Cargo paid an undisclosed settlement to DB Schenker over an air cargo cartel. It was shippers, not forwarders, that ultimately overpaid for freight carriage – so any compensation should be rightly theirs, claim air cargo executives.

“This is as unjust to our industry as it gets,” said one key airline executive. “The forwarders cannot be allowed to get away with this.” “I am surprised shipper associations have not picked this up and gone to town with it,” said another. But shipper associations contacted by The Loadstar have thus far been reluctant to get involved.

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Air freight peak season is ‘picking up nicely’ – or is it?

Hopes for a decent air freight peak season are muted, although the market is tightening a little. 2019 has been dismal for air freight; IATA’s latest year-to-date figures, to August, show a 3.3% contraction in freight tonne km.

“There is certainly a peak for 2019, but it’s not what the industry experienced in 2018 and 2017,” said Bill Flynn, chief executive of Atlas Air, on an earnings call last week. “We’re seeing volumes and demands begin to exhibit those peak characteristics.”

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African logistics startup Lori Systems raises Series A led by Chinese investors

African on-demand trucking logistics company Lori Systems has raised a Series A round led by Chinese investors Hillhouse Capital and Crystal Stream Capital. Other participating investors included Nigeria and U.S.-based EchoVC, Flexport CEO Ryan Petersen and Nigerian founder Iyinoluwa Aboyeji.

Lori Systems is not disclosing the amount of the Series A. DealStreet Asia reported the round amount at $30 million earlier Friday, but Lori Systems’ CEO Josh Sandler would not confirm that. That figure was “something lost in translation” and “a mischaracterization of the raise,” he told TecCrunch on a call.

FIATA welcomes innovation on the African continent and believes it needs to be coupled with good policy making. In its position, FIATA’s suggestion to Member States wanting to formulate and implement transport policy is to focus on private sector business association partnerships and regional cooperation with other states and trading blocs (e.g. the tripartite approach).

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World rail freight news round-up

The European Commission has approved a €22·2m state aid scheme in the Netherlands which will support the updating of ERTMS equipment on 99 locomotives used on cross-border freight services.

Genesee & Wyoming’s North Carolina & Virginia Railroad has completed a $11·6m project to upgrade its 90 km network to handle 130 tonne wagons, supported by a $5·8m federal Transportation Investment Generating Economic Recovery grant and funding from North Carolina’s Department of Transportation.

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Alibaba to invest $3.3B to bump its stake in logistics unit Cainiao

Alibaba is doubling down on its logistics affiliate Cainiao, two years after acquiring a majority stake in the firm. The Chinese giant said today it would invest an additional 23.3 billion yuan (about $3.33 billion) to raise its equity in Cainiao to 63% (from 51%).

In a statement, Alibaba said it will subscribe newly issued Cainiao shares in its latest financing round and also purchase equity interest from a certain, unnamed Cainiao shareholder.

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Maersk gets onboard as SaaS specialist ZigZag simplifies reverse logistics

Maersk’s venture capital arm, Maersk Growth, has invested an undisclosed sum in ZigZag, a UK start-up specialising in managing the returns of retail e-commerce goods.

Customer returns, and the reverse logistics that support them, remains one of the largest costs for e-commerce retailers, as consumers have become accustomed to free returns policies.

For more details, please visit: LoadStar Article