FIATA e-Flash No. 213 — 2 December 2019

FIATA AND MEMBERS

ICAO FIATA DG Training Programme — Promotional Offer for DG Training Centers

FIATA wishes to extend an invitation to training organizations which offer Dangerous Goods by Air Training, to consider the benefits of becoming a Recognized ICAO FIATA DG Training Centre. Those interested Training Centers which come forward and submit an application prior to February 28th, 2020 will not be required to pay our Application Fee. A savings of 450 US Dollars.

We would be pleased to provide you with more information on the benefits of becoming an ICAO FIATA DG Training Center, simply send us an email at eid@fiata.com, with your contact details and a member of our training department will be in touch with you shortly. 

For more details, please visit: https://us8.campaign-archive.com/?u=e6dd469f1a328320ed2810636&id=06869bef7e

FIATA — 14th RAP Field Meeting to be held in June 2020 in Danang, Vietnam

The Vietnamese Logistics Association (VLA) will be hosting next year’s (2020) Region Asia Pacific (RAP) Field Meeting. VLA, UN ESCAP together with FIATA have recently agreed to the dates of the meetings which will be held in Danang, Vietnam.

The 14th RAP Field Meeting will be held on Friday the 19th of June 2020 in conjunction with UN ESCAP Regional Conference for Logistics Service Providers on Thursday the 18th of June 2020. 

PLEASE MARK YOUR DIARY.

More information to follow on the FIATA website as soon as available: https://fiata.com/initiatives/fiata-meetings.html

FIATA — Region Africa Middle East Field Meeting — June 2020 in Cairo, Egypt

The Egyptian International Freight Forwarding Association (EIFFA) is set to host the upcoming RAME Field Meeting having locked in dates for June 7-9th in the wonderful city of Cairo, Egypt.

The field meeting typically attracts 500 delegates from not only the region but neighbouring countries who have a vested interested in the development of logistics. Speakers include public and private sector officials, hyper growth technology firms and intergovernmental organisations from WTO, UNCTAD, World Bank and others.

More details will be available on the FIATA website in the early part of 2020: https://fiata.com/initiatives/fiata-meetings.html

Increase of Montreal Convention Liability Limits for Air Cargo Transportation — ICAO

FIATA’s Air Freight Institute informs our membership about the forthcoming increase of liability limits under the Montreal Convention of ICAO. This is also to make those aware who either print or purchase Neutral Airwaybills (NAWB) of the changes to the limits of liability that will require amendment.

On the 18th November 2019, IATA advised its members that ICAO has reviewed the limit of liability in Montreal Convention 1999 (MC99). As a result, there is a revision from 19 SDR to 22 SDR, effective from the 28 December 2019. The IATA Secretariat has now made the corresponding editorial change to Resolution 600b with the effective date 28 December 2019. A corresponding change is also being made to Resolution 600i.

Carriers are cautioned to take all necessary and appropriate advisory action, particularly if using air waybill stock reflecting the prior liability limit, to notify their shippers, cargo agents/forwarders, insurers, and claims departments of the increased liability limit from 19 SDR per kilo to 22 SDR per kilo for carriage of cargo governed by MC99 taking place on or after December 28, 2019.

Airfreight Forwarders acting as carriers issuing House Airwaybill’s are cautioned to act in the same way as described above. We draw your attention to the fact that you might have to review your standard trading conditions and the limits of liability therein. Likewise, you might have to advise your liability insurers of this change in liability limits.

 

WORLD ECONOMY

Legal ruling over forwarder T&Cs in emails may become a global precedent

A court in Australia has ruled that a freight forwarder’s terms and conditions (T&Cs) can be incorporated through an email ‘footer’, despite the absence of a signed contract. The ruling was made in the recent County Court of Victoria case of cargo owner Technology Swiss versus freight forwarder Famous Pacific Shipping (FPS).

According to the court filing, the forwarder «failed to adequately secure the cargo inside the container», which led to the equipment becoming badly damaged, ultimately being sold as scrap back in Australia at a loss of A$755,000 (US$508,000).

Members of the freight forwarding community (and their financiers and insurers) rely heavily on their terms and conditions of trade and the terms of bills of lading to manage risk and liability.  The recent decision of the County Court of Victoria will provide some comfort to freight forwarders who rely upon reference to terms and conditions in their emails and correspondence as a means of incorporating them into their agreements with their customers. While each case will depend of the specific facts of the agreements between the parties, the decision does provide that with proper reference in correspondence, terms and conditions can be incorporated into an agreement, even if the customer does not actually access those terms and conditions.

That decision meant that the limitation of liability provisions in the terms and conditions operated to limit the liability of the freight forwarder, although not as well as had been intended due to drafting issues. The outcome was not so helpful in terms of the incorporation of the terms and conditions of the bill of lading — in this case those terms and conditions were ruled not to apply for a variety of reasons, including that the bill of lading was not provided until after shipment of the goods and that it was issued by the freight forwarder but by an associated company. The court also held that the terms and conditions of the bill of lading could not have been incorporated as they were not referred to properly or provided with the bill of lading.  The decision is, of course, open to appeal but it also includes reference to the leading cases on these topics. It is important to note that the decision from this ruling is not binding to other jurisdiction but may have influence depending on the similarities and circumstances. In addition, how the T&Cs were displayed needs to be taken into consideration for example, freight forwarders which display T&Cs in an email footer has cannot be meant to constitute contractual documents.

For more details, please visit: https://theloadstar.com/legal-ruling-over-forwarder-tcs-in-emails-may-become-a-global-precedent/?utm_source=The+Loadstar+daily+email&utm_campaign=d80d6ba605-EMAIL_CAMPAIGN_2019_11_26_12_55&utm_medium=email&utm_term=0_c4570e43d4-d80d6ba605-153502865b

EU’s AEO Program Goes Digital — Live October 1st, 2019

The EU’s Authorized Economic Operator Program, which grants traders who meet a range of criteria set forth by customs authorities to ensure the safety of cargo clearance, can now apply digital starting October 1st.

Benefits include simplified customs declarations, transit simplification, priority treatment of consignment, option of centralised clearance self-assessment, Easier admittance to special procedures such as CFSP, temporary storage, customs warehousing and many more.

For more details on the portal and EU’s AEO program, please visit: https://ec.europa.eu/taxation_customs/general-information-customs/customs-security/authorised-economic-operator-aeo_en

MENA: Leading the way in innovation

While it has some infrastructure and regulatory obstacles to overcome, the automotive industry in the Middle East and Africa (MENA) region is developing fast, driven by investment and innovation, as delegates heard at the ALMENA conference in Dubai last week.

Jebel Ali Port, located in the Jebel Ali Free Zone (Jafza) in Dubai, has emerged as the leading hub for used cars and spare parts in the United Arab Emirates (UAE). It accounts for 78% of the country’s used car imports and generated AED 31.8 billion ($116.7 billion) through its spare parts trade last year.

For more details, please visit: https://www.automotivelogistics.media/middle-east-and-africa/mena-leading-the-way-in-innovation/39700.article

 

SEA FREIGHT

CMACGM said it plans to raise funds to finance takeover of Ceva Logistics

Shipping firm CMACGM has announced that it wanted to raise $2 billion (1.5 billion pounds) to help finance its takeover of CEVA Logistics, with half the funds coming from selling the port property to its joint venture with China Merchants Port Holdings Co.

CMACGM, the fourth largest container shipping company in the world, headquartered in France, bought CEVA this year to invest in land logistics, valuing the company at about $1.7 billion.

For more details, please visit: https://industryglobalnews24.com/cmacgm-said-it-planned-to-raise-funds-to-finance-its-takeover-of-ceva-logistics

Rosatom Plans Multi-Billion-Dollar Expansion into Ocean Freight

Russian state nuclear power company Rosatom, the operator of Russia’s nuclear icebreaker fleet and the designated manager for the development of Russia’s Northern Sea Route, is reportedly planning to plow billions of dollars into a fleet of container ships in order to make Asia-to-Europe cargo runs through Arctic waters.

Russian outlet Vedomosti reports that based on information from sources close to the company, Rosatom plans to become a shipping giant: it wants to capture about seven percent of the containerized cargo that currently transits the Malacca-Suez-Gibraltar route to and from Europe.

For more details, please visit: https://www.maritime-executive.com/article/rosatom-plans-multi-billion-dollar-expansion-into-ocean-freight

 

AIR FREIGHT

Logistics City to be built at Stockholm Arlanda Airport

The Logistics City will cover an area of 1m sq m and building works, scheduled to take commence next month, will take place in two stages.The southern section of the hub will be built first. The first phase of the southern section is expected to be completed in 2023.

This section of the hub will include warehouses for logistics and skilled trade purposes, as well as hotels, restaurants and petrol stations to serve people using the hub. The northern section will be located next to Runway 1 at Stockholm Arlanda Airport, which will make it easy for freight forwarders and shippers to transport their goods too and from aircraft.

Read more at https://www.aircargonews.net/cargo-airport/logistics-city-to-be-built-at-stockholm-arlanda-airport/

The biggest challenge for forwarders in India is getting cargo through the airports

While air cargo capacity in India is said to have reached a «sufficient» level, airports and airlines need to improve turnaround times. According to KWE India deputy managing director Karthi Baskar, the biggest challenge for forwarders in India is getting cargo through airports and to the customers.

«Detention and demurrage at the airport terminal, low free-days and high turnaround times cost customers time and money,» he told The Loadstar. «There’s a large amount of paperwork in customs, terminal, and cargo operations, which requires a considerable workforce. So automation will be key for improving future operations, but the cost of the technology is a concern.»

For more details, please visit: https://theloadstar.com/the-biggest-challenge-for-forwarders-in-india-is-getting-cargo-through-the-airports/

 

RAIL AND ROAD FREIGHT

‘Costs must go up’: Freight companies warn of looming trucking shortage

The Australian Logistics Council has warned Australian consumers will take a hit as the cost of goods ramps up if the country doesn’t address an impending truck driver shortage, echoing recent calls from smaller freight companies for a national training and technology plan for the sector.

An impending truck driver shortage and a lack of a consistent plan for safety technology are key themes to emerge from the more than 60 public submissions made to a Senate committee reviewing safety and efficiency in Australia’s road transport sector.

FIATA has witnessed the issue of truck driver shortages throughout many countries and regions as reported by its membership. 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. This gap in the labour market has been partly filled by an influx of East Europeans, but the report warns there is a limit as to how much this will ease the driver shortage. One problem is the increasing appetite among global manufacturers to site production facilities in central and eastern Europe, which has provided an alternative source of jobs for many would-be drivers.

For more details, please visit: https://www.theage.com.au/business/small-business/costs-must-go-up-freight-companies-warn-of-looming-truckie-shortage-20191118-p53bho.html

Rhenus Logistics eyes more acquisitions to expand its global footprint

Germany’s Rhenus Logistics is targeting more acquisitions to expand its global warehousing and freight forwarding operations. «Plans include opening warehouses across India and in Durban in 2020, and we are considering Dubai as a potential market too,» a spokesperson for Rhenus Asia Pacific told The Loadstar.

«So the M&A efforts effectively drive our APAC expansion too. Recently, we acquired Freight Logistics in the US, WNL in South Africa, and Rodair in Canada.» Not all the acquisitions have been global, however. In May, Rhenus acquired Singapore’s Triways Logistics and its 10,000sq metre warehouse.

For more details, please visit: https://www.railwaygazette.com/freight/world-rail-freight-news-round-up/55088.article

 

INNOVATIONS

Best Drone Delivery Companies to Watch in 2020

Which are the best drone delivery companies in 2020 and how do companies like DJI, Zipline, Yuneec and others compare to the early days of the phone industry. How do Chinese drone manufacturers fit into the drone delivery industry?

Similar to the smartphone boom, which created Chinese companies like Oppo (2016) and Vivo (2017) which sold 112 and 100 Million phone units respectively. We do suspect a lot more drone delivery companies to come out of China in the coming years. We just saw a license be granted to Antwork Technology having conducted more than 20,000 logistical trials in urban and mountainous areas in Zhejiang and passed risk evaluation and flight tests supervised by the aviation regulators.

For more details, please visit: https://www.megdov.com/post/comparing-drones-to-phones-best-drone-delivery-companies-to-watch-in-2020

JD Logistics partners with global pallet leader to improve efficiency

JD Logistics has formed a partnership with EPAL to enable the association’s pallets to be distributed to partners throughout China via JD Cloud Box — JD Logistics’ logistics transaction platform.

JD Cloud Box will use EPAL products as the standard logistics carriers throughout the supply chain system. EPAL’s products will also be integrated in JD’s cross-border logistics operations. JD Cloud Box will also offer repair and leasing services for the pallets, and provide an online platform for real-time information and transactions relating to EPAL pallets in China.

For more details, please visit: https://www.parcelandpostaltechnologyinternational.com/news/delivery/jd-logistics-partners-with-global-pallet-leader-to-improve-efficiency.html