FIATA E-Flash No. 218 – 24 February 2020
FIATA AFFAIRS
2020 FIATA HQ Session Moving forward – March 26 – 28th
As members will be aware FIATA has been monitoring the COVID-19 (Coronavirus) as to its impacts as to events. As well it has regularly sourced the World health Organisation (WHO) Situation Reports. After careful consideration of all available information it has advised members that the 2020 FIATA HQ Session will be held in Zurich, Switzerland as planned.
FIATA has been working with the service provider to the FIATA event as to contingency aspects. These issues have been considered by FIATA and as part of its HQ event management has put in place the protocols which mirror most other health warnings from the WHO and Health regulators in most countries. FIATA extends its sympathies to the communities in China and elsewhere who are affected by this event.
Details of the FIATA HQ Session can be viewed here: https://fiata.com/fileadmin/user_upload/documents/Diverses/Programme_FIATA_HQ_2020_-_Main_Programme_22-01-2020.pdf
ICAO FIATA DG Training Programme – Promotional Offer for DG Training Centres
FIATA extends 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 Centres 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 Centre, 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
WORLD ECONOMY
Rwanda: Freight Forwarders Decry ‘Unfair’ Rules
When Rwandan companies and individuals are importing goods into the country, they procure the services of clearing and forwarding agents who handle the formalities, clearing taxes and necessary documentation.
However, the agents who are regulated by the Rwanda Revenue Authority, are now decrying tough operating conditions which they say has affected their operations, business growth and service to their clients. Among the regulatory challenges they are facing include the annual license renewal process and liability of clearing agents. The firms are expected to renew their licenses at the start of every calendar year a process, which sees most of them halt operations as they wait for the renewal.
For more details, please visit: https://allafrica.com/stories/202002180021.html
Forwarders need to prepare for Brexit following latest government update
Forwarders and hauliers should start to prepare for Brexit now they have more clarity on when the transition period will come to an end, according Peter MacSwiney, chairman of Customs clearance solutions provider Agency Sector Management (ASM).
MacSwiney said there is limited time to implement the systems needed to tackle trade friction following the UK Government’s announcement this week that import controls would be brought in on European Union (EU) goods at the border from December 31.
The British International Freight Association has published documentation to help aide freight forwarding members in the transition as the U.K prepares to handle clearance of goods coming from European Union.
For more details, please visit: https://www.aircargonews.net/freight-forwarder/forwarders-need-to-prepare-for-brexit-following-latest-government-update/
Logistics association proposes measures to restore activities
The China Federation of Logistics and Purchasing (CFLP) has proposed a set of policies to help restore logistics activities, calling for prioritizing work resumption in the sector due to its key role in ensuring the provision of medical supplies and daily necessities.
A survey by the CFLP showed 49 out of the country’s 56 logistics demonstration parks had started operation as of Feb. 17, but on average only 40 percent of the companies in the parks had opened for business. Complicate procedures for work approvals, a shortage of protective equipment, transportation restrictions and high costs were among the hurdles for business resumption, the federation noted.
For more details, please visit: http://www.xinhuanet.com/english/2020-02/20/c_138802241.htm
Digitization Lands Saudi Arabia in 6th Place in Agility Emerging Markets Index
Saudi Arabia ranked sixth globally, according to the 2020 Agility Emerging Markets Logistics Index, due to achievements by Saudi Customs. The root of the Kingdom’s gains are the transformative plans that comprise Vision 2030, its nationwide economic strategy that aims to open and diversify the domestic economy and integrate it more closely with the global market.
FIATA had the pleasure of H.E Mr. Ahmed Al Hakbani, Governor at Saudi Customs, deliver an opening speech at its 2019 FIATA World Congress held in October in Cape Town, South Africa. His High Excellency presented firsthand the advancements in Saudi Customs adopting advanced digitalization efforts that would surely put Saudi Arabia at the forefront of clearance. It is no surprise to see them moving up on Agility’s ranking and FIATA looks forward to seeing further development from the Kingdom.
Saudi Customs has helped the logistics sector through several initiatives, starting with the digital transformation of services. Saudi Customs worked on reinforcing technical and digital potential in customs work to provide innovative services that improve the clients’ experience.
For more details, please visit: https://aawsat.com/english/home/article/2132751/digitization-lands-saudi-arabia-6th-place-agility-emerging-markets-logistics
DOT applies for $1 billion in FY 2020 BUILD grant funding
Coming on the heels of the White House issuing its proposed Fiscal Year 2020 budget, which had a sharp focus on transportation infrastructure, the United States Department of Transportation (DOT) this week sent out a call for infrastructure funding, albeit in a different way. Introduced in 2018, BUILD is the successor to the Transportation Investment Generating Economic Recovery (TIGER) grant program.
DOT said it published a Notice of Funding Opportunity (NOFO) in order to apply for $1 billion in FY 2020 discretionary grant funding through the Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants program.
For more details, please visit: https://www.logisticsmgmt.com/article/dot_applies_for_1_billion_in_fy_2020_build_grant_funding
SEA FREIGHT
Cosco Shipping International expands logistics operations in Malaysia
Singapore-listed Cosco Shipping International said it has spent MYR88m ($21m) to acquire 80% shares each in Guper Integrated Logistics, Gem Logistics, Dolphin Shipping Agency, and East West Freight Services, via its wholly owned subsidiary SH Cogent Logistics.
The acquisitions have allowed Cosco Shipping International to boost its assets with warehouse of 810,000 sq feet, container depot of 780,000 sq feet, open yard of 430,000 sq feet, and 100 prime movers and 400 trailers.
For more details, please visit: https://www.seatrade-maritime.com/containers/cosco-shipping-international-expands-logistics-operations-malaysia
Ocean freight rates set to spike as carriers ride out coronavirus storm
Ocean carriers are preparing to idle more ships in Asia as the ripples from the coronavirus outbreak in China hit production. But for ships that do sail, container spot rates are likely to spike dramatically, and remain high until the pent-up demand from frustrated orders is satisfied.
In the last reading prior to the CNY shutdown, the Shanghai Containerized Freight Index (SCFI) recorded a spot rate of $969 per teu from Asia to North Europe and $1,179 per teu for Mediterranean ports. On the Asia to US tradelanes the SCFI readings were $1,545 per 40 ft for the US west coast and $2,951 for east coast ports.
For more details, please visit: https://theloadstar.com/ocean-freight-rates-set-to-spike-as-carriers-ride-out-coronavirus-storm/
Shipping industry operators rally support for SON – Nigeria
The Leadership of the Association of Nigeria Licensed Customs Agents, ANLCA, has pledged to partner with the Standard Organisation of Nigeria, SON, in ensuring that Customs agents do not act in breach of the agency’s operational regulations.
National President of ANLCA, Hon. Tony Nwabunike, who led the leaders to a courtesy visit to SON told the Director General of the agency, Dr. Osita Aboloma, that ANLCA members will get further sensitization on the operations and guidelines of the agency with a view to improving compliance.
For more details, please visit: https://www.vanguardngr.com/2020/02/shipping-industry-operators-rally-support-for-son/
AIR FREIGHT
Dnata joins Cargo iQ as it takes aim at performance monitoring
Ground handler dnata has joined Cargo iQ as a full member as it looks to help improve the monitoring of cargo performance across the supply chain. The Dubai-headquartered ground handler’s stations in the UK and the Netherlands were previously members on an individual basis. Cargo iQ’s membership is made up of stakeholders from across the air cargo supply chain and every member’s cargo flows are monitored across the supply chain.
For more details, please visit: https://www.aircargonews.net/services/ground-handler/dnata-joins-cargo-iq-as-it-takes-aim-at-performance-monitoring/
Air France KLM cargo revenues take a hit in 2019
The Franco-Dutch airline group saw total cargo revenues for the year drop by 5.9% to €2.1bn on the back of a 2.3% drop in volumes to 1.1m tonnes. Its cargo load factor was also down, dropping by 2.3 percentage on points on 2018 to 58%.
AF KLM said performance was affected by capacity additions across the industry and weaker demand. However, the group said that its market share “proved resilient” with growth “realised in alternative flows partly mitigating the ex-Asia losses”.
Read more at https://www.aircargonews.net/airlines/air-france-klm-cargo-revenues-take-a-hit-in-2019/
Unisys Highlights Need for Better Security in Air Cargo Industry
Unisys will be advocating for change in the air cargo industry at the upcoming Air Cargo India conference in Mumbai. To that end, Unisys Cargo Industry Director Niranjan Navaratnarajah will be giving a talk that details some of the changes that the air cargo industry will need to make to counter digital security threats and remain economically solvent in the coming years.
Navaratnarajah’s talk will focus on three main areas. The most noteworthy (at least as it relates to the biometrics industry) is digital and physical security. Navaratnarajah will specifically call attention to the International Air Transport Association’s (IATA) ONE Record initiative, which seeks to establish a uniform standard for data sharing. He will argue that air cargo companies will need to adopt a Zero Trust approach to digital security to reduce the threat of data breaches and ensure that only approved individuals have access to sensitive information.
For more details, please visit: https://findbiometrics.com/biometrics-news-unisys-highlights-need-better-security-air-cargo-industry-021906/
RAIL AND ROAD FREIGHT
January truck tonnage readings post modest gains, reports ATA
The ATA’s advanced seasonally-adjusted (SA) For-Hire Truck Tonnage Index for January—at 117.4 (2015=100)—saw a 0.1% increase from December to January, and ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment and the metric ATA says fleets should benchmark their levels with, was 114.6 in January, marking a 1.1% improvement over December.
ATA officials said that the organization’s tonnage data is “dominated by contract freight,” which they have often observed is performing significantly better than what a called a plunge in spot market freight in 2019.
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.logisticsmgmt.com/article/january_truck_tonnage_readings_post_modest_gains_reports_ata
ERFA calls for EC to adopt ambitious rail freight approach
The European Rail Freight Association (ERFA) has called for revisions to be made to the Rail Freight Corridors Regulation (2010/913), following the public consultation on the European rail freight network, as well as the effectiveness of the Regulation. Additionally, ERFA has emphasised the need for the European Commission (EC) to consider and adopt a more ambitious approach to rail freight that meets the needs of the industry.
In order for the rail freight industry to grow, ERFA stresses that the sector needs a strong Rail Freight Corridors Regulation – one that ensures rail freight companies have access to a sufficient level and quality of capacity along corridors. Under the current regulation, capacity allocation is not meeting the needs of international rail freight due to the fragmented approach.
For more details, please visit: https://www.globalrailwayreview.com/news/96734/erfa-ec-rail-freight-approach/
New Chair of FTA Road Freight Council
Allison Kemp, MD of AIM Commercial Services Ltd, is to be chair of the Freight Transport Association (FTA) Road Freight Council. Her role is to determine the FTA’s approach toward pressing issues that include road infrastructure, air quality and driver shortages. In her role she facilitates discussions with FTA members at national council meetings.
Chris Yarsley, Policy Manager for Road Infrastructure at FTA, commented: “With her impressive understanding of the sector and dedication to drive change, Allison Kemp is the perfect candidate to lead FTA’s Road Freight Council. From winning Woman of the Year at the 2019 everywoman in Transport and Logistics Awards to being recognised in FTA Logistics Magazine’s 20 for 20, we are thrilled someone of such stature and influence will be leading our influential Road Freight Council in 2020 and beyond.
For more details, please visit: https://apex-insight.com/new-chair-of-fta-road-freight-council/
INNOVATIONS
Amazon drops more logistics providers, citing safety, performance issues
Thousands of delivery drivers across the country who work for small and medium-size logistics companies that contract with Amazon.com found out in mid-February they may lose their jobs in April, though Amazon said they will have opportunities for other positions with its partners.
On Friday, Transportation Brokerage Specialists Inc. (TBS), headquartered in Costa Mesa, California, became the latest company to file a Worker Adjustment and Retraining Notification (WARN) Act notice of a mass layoff. The brokerage has been operating since 2016.
For more details, please visit: https://www.freightwaves.com/news/amazon-drops-more-logistics-providers-citing-safety-performance-issues
European expansion efforts are going strong for project44
Chicago-based project44, a technology services provider offering standardized, secure Web service API (application programming interfaces) integrations enabling 3PLs and shippers to connect with carriers in real time, this week heralded its ongoing growth efforts in Europe.
One key driver for the company in Europe is its late 2018 acquisition of Nørresundby, Denmark-based GateHouse Logistics, a logistics technology provider focusing on securely sharing data across the supply chain, with an emphasis on visibility of inbound and outbound logistics. That was seen though various metrics cited by project44, including:
For more details, please visit: https://www.logisticsmgmt.com/article/european_expansion_efforts_are_going_strong_for_project44
WiseTech Global Ltd (ASX:WTC) Continued Strong Growth, Revenue up 31%
Founder and CEO, Richard White, said “We continued to deliver high quality growth in 1H20 with revenues up 31% to $205.9m and EBITDA up 29% to $62.5m, a reflection of the strength of our CargoWise business and strategic actions, along with increased adoption by the world’s largest logistics organisations while we continued to expand our technology platform and grow our global footprint.”
“We are investing to grow. In the last 5 years alone, we have invested over $360m in product innovation, adding 3,500 product enhancements to our global platform. All while also securing over 40 strategic assets with 1,200 leading experts, technologist and logistics industry people across 35 countries, thus capturing centuries of hard-to-access capability and significant development capacity to further resource our technology pipeline for future growth.”
For more details, please visit: https://menafn.com/1099724985/WiseTech-Global-Ltd-ASXWTC-Continued-Strong-Growth-Revenue-up-31-EBITDA-up-29
31 hot logistics startups that are set to soar in 2020, according to VCs
The $1.6 trillion logistics industry is undergoing a massive transformation, and big names like Uber, Amazon, Walmart, C.H. Robinson, and more are at the forefront of that change. Business Insider asked six of the industry’s buzziest venture capitalists which startups they believe are going to capitalize big time in 2020.
BI asked them to highlight the coolest startups in their profile, as well as ones they didn’t invest in but are forecasting big things for. The investors were also asked to highlight companies just getting their first seed funding or Series A bucks, as well as bigger names.
For more details, please visit: https://www.businessinsider.com/venture-capital-vc-logistics-startups-valuation-2020-2?r=US&IR=T