INSIDE FIATA WORLD CONGRESS 2018 - December 2018
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No. 125 | November 2018
Magazine of the International Federation of Freight Forwarders Associations
INSIDE
FIATA WORLD
CONGRESS 2018
FFFAI HOSTS FWC OUTLOOK ON 2019 YIFFYA FOR BIFA
Sessions, networking FIATA President Babar Louis Perrin from UK
and festivities in Delhi Badat is optimistic 2018’s happy winner
How we contribute
to the success
of cancer research.
Recently we transported
some 2°C to 8°C
temperature-sensitive
biotech products
in special boxes from
San Francisco to a
Swiss laboratory where
cancer drugs are
prepared to improve
patients’ quality of
life worldwide. This is
just one of the many
success stories we share
with our customers.
swissworldcargo.com We care for your cargo.
CONTENTS
Editorial
5 From the President’s Desk
EXCLUSIVE
Inside
FIATA WORLD CONGRESS 2018 (part I)
6 AFI
8 CAI, MTI
Provider of the
9 Sea, Road
10 Rail
11 ABIA
FIATA Group Bond
12 ABIT
13 ABLM
Programme
FWC 2018
14 Impressions from New Delhi, India
Inside
FIATA WORLD CONGRESS 2018 (part II)
16 ABSS, ABVT & FLA
17 RAME
18 RAMNS
19 RAP
20 REU
An outlook on 2019
22 FIATA President Babar Badat
believes in the industry’s flexibility
Personally
24 Meet Louis Perrin –
Winner of the YIFFYA 2018
Here & There / Agenda
26 Birthdays
27 Anniversaries / Forthcoming Events
27 Masthead
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No. 125 | November 2018 FIATA REVIEW 3
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FROM the pResident’s desk
Dear Colleagues and Friends
W elcome to the last edition of FI-
ATA Review in the year 2018. It
is always hard to realize how fast time
FIATA had its World Congress in New
Delhi, you can find detailed reports
about the sessions in this edition. I am
flies by. Now, it is again the time to look glad to hear from participants that many
back what has happened in our industry sessions were informative and interactive
and in FIATA this year and to outlook with participation from the audience in
for the coming year of 2019. the panel discussions. This is a critical
function and objective of FIATA, being
The trade measures between the world’s the global association for the industry,
two largest economies constitute und- to invite leading experts in transport and
oubtedly the most concerning factor for logistics to answer questions that are re-
global trade, for the past year and for the levant for many businesses of logistics
years to come. The International Mo- providers and freight forwarders.
netary Fund released a major report in
October that projected the world’s eco- I am particularly pleased to note the in-
nomy will grow by 3.7 percent, which is creasing participation of young logistics
0.2 points lower than they had estima- professionals in our Congress. In an in-
ted in April. FIATA always emphasizes dustry that faces a variety of distinctive
that international trade is a fundamental customer requests and continuous chal-
building block for the development and lenges, highly-motived and well-trained
prosperity of every economy. professionals are essential. You will read
the interview of the Global Winner of
The transport and logistic industry con- YIFFY Award 2018, Mr Louis Perrin,
tinues to try out new technologies. We who was recommended by our UK As-
see growing reports of blockchain plat- sociation Member BIFA. I congratu-
forms, autonomous vehicles and Hy- late Louis and the other finalists in the
perloop passenger pods, it is exciting to YIFFY Award and wish them all the best
imagine what our life and industry will in their life and career.
be like in the future. FIATA is also ta-
king steps in the direction for the future, I am looking forward to seeing more
we are on the march to digitalize the young people joining this competition
FIATA training courses and FIATA do- in 2019.
cuments. We expect to announce some
progresses by early 2019. Best regards!
Babar Badat
FIATA President
No. 125 | November 2018 FIATA REVIEW 5
INSIDE FWC 2018
MANY A SESSION OF FWC 2018 EMBRACED DIGITAL CHANGE
A tale of technology, networks,
disruption and opportunities
For more than 50 years the
Indian Federation of Freight
Forwarders (FFFAI) has been
eager to host a FIATA World
Congress. In 2018, this dream
came true, with around 1,200
delegates and participants
present in New Delhi.
T he 2018 FIATA World Congress in
New Delhi, India, was exceptional
in many ways, with a wide variety of
excellent sessions and glamorous and
sparkling evening events. The Chair-
man of the Indian Federation of Freight
Forwarders (FFFAI), Mr. AV Vijay-
Photos: FIATA
kumar, officially opened the Congress,
thanking FIATA for this opportunity, as
India was privileged to host the FIATA
World Congress for the first time, after At the FWC 2018, the future started in India.
a long wait of over 50 years. The FIATA
World Congress is one of the leading formation on the latest developments
and most significant conferences in the in the framework of the transport of
logistics industry. 1,200 participants temperature-sensitive healthcare and
from 130 countries came to Delhi in pharmaceutical products, and on how
September to meet, network and build the industry is responding to the CEIV
strong communities. Certification programme, and the key in- implementation of key milestones thus
dustry priorities for future developments far achieved and those still ahead of us.
in airfreight. The same was well received The core item of the AFI Session was
by the audience, with a host of questions the Panel Session on Disruption and
AFI for Mrs. Gruber. Opportunities.
The second presentation was given AFI Chairman Mr. Keshav Tanna
99TH MEETING OF THE by our very own IATA-FIATA Govern- announced the moderator, Mr. Snehal
AIRFREIGHT INSTITUTE ance Manager, Mrs. Joana Nunes Coelho, Parikh, Managing Director of the Lemuir
This year’s AFI Meeting offered three who gave an overview of the current sta- Group of Companies, Past President
presentations. tus of the new IATA-FIATA Air Cargo and Member of the Board of Advisors
One was by Mrs. Andrea Gruber, Programme. She informed her audience of ACAAI, and a past Vice-President of
IATA Head, Special Cargo on Airfreight, about how a forwarder can join the pro- FIATA. Mr. Parikh has experience of over
IATA CEIV Pharma. Mrs. Gruber, who gramme, explained the formation and 40 years in the Indian logistics and sup-
was our special invitee, provided in- functions of the Regional Councils and the ply chain industry.
6 FIATA REVIEW No. 125 | November 2018
InsIde FWC 2018
The intention of the panel session, as Mr. Sam Katgara: Partner Jeena & Com- independently into all these different
Mr. Parikh explained in his introduction, pany, India, Past President of ACAAI unconnected systems. This is most time
was to examine of what is happening in The panellists’ exchange of ideas and and cost inefficient. Rather than pockets
this globally-changing scenario of disrup- discussion were prompted by some inci- of systems being developed, there is the
tive technology, to envision what the fu- sive questions, citations and comments. need, when we are developing the new
ture of logistics and transportation holds air cargo policy, to also look not only at
for us and to determine what opportuni- some quotes cargo movements but also information
ties we can create for ourselves from this Question: “There are rapid changes tak- flows in an integrated manner. So when
dramatic change. Are we ready for change ing place in global manufacturing, trade we talk of partnerships we should look at
or are we waiting to be left out? and distribution, which are disrupting this as well, in terms of integrating and
Digitisation is omnipresent. It is re- existing business models and practices interfacing.
moving entry barriers in every business and logistics service offerings, on which Ms. Aggarwal, stated that the Indi-
by enhancing direct customer connects, government policy would be based. How an government was doing that, and she
opening the doors for new competition is the government of India approaching provided examples. The ACS is intended
from digital disruptors and raising the this moving target for enhancing our to remove duplication information and
bar for customers’ expectations. strength and positioning in the global also to optimise the reliability of infor-
aviation and air cargo sector?” mation. They do not have to redo what
Welcome to the 4th Ms. Aggarwal replied: “In the entire has already been done. The information
IndustrIal revolutIon, global supply chain, governments are to- flow moves through seamlessly without
Welcome to the day a partner in that chain, rather than duplication into the system for all those
exponentIal age a body that acts as a big brother or just who need to know, while there are data
Software will disrupt most traditional a regulator. So the regulatory function protection and all the other privacy re-
industries in the next five to ten years, is today combined with facilitation and quirements, security, etc. foreseen. It adds
maybe less. The examples set by Uber, partnering, in order to strengthen the Icegate, India’s National Trade Portal. So,
Airbnb, Facebook, Amazon and many supply chain, so that the government ac- regulatory systems were to be connected,
more are before us. Artificial intelligence tually does not becomes the weakest link so that all the participants are there and
makes computers become exponentially in that chain, or causes time and cost in- advanced clearances and other kinds of
better in understanding the world. IBM’s terference to business.” transaction can be dealt with. The Na-
Watson is already displacing many young Ms. Aggarwal was hesitant to use tional Logistics Portal takes that step up
lawyers. It is now happening in the fields the word disruption, because it brings at a wider play. Because they have digital
of health, education, 3D printing, manu- Nostradamus to her mind and predic- road systems (Vahan and Sarathi), rail-
facturing, agriculture, jobs and more. tions of doomsday. She believes technol- ways voice system and the PCS, which
In short – everywhere. Self-driving cars, ogy is challenging us to stay relevant and is the port cargo community system, and
autonomous trucks, air taxi drones, etc. to stay ahead of those who do not have will integrate all these into a multimodal
are here. Imagine pilotless, lighter and the creative juices. system, which talks to each other without
carbon-efficient cargo freighters. Mr. Parikh aligned with Mr. Katgara: duplication. She sees technology as the
Big efforts were made to have a vari- The forwarder as the intermediary is of- best enabler for that. So it provides the
ety of eminent panellists for this session. ten blended with additional costs, speak- opportunity to reach out to the 1.3 bil-
The Moderator welcomed: ing at least for the Indian forwarder as a lion consumers sitting in a village in India
Mr. Kanishka Agiwal: IBM India Pri- typical case, for hardware and software as well, it also provides the opportunity
vate Limited, Head – Travel &Transpor- development. This is further aggravated to reach out to the smallest manufacturer
tation Industry, Member of IBM Indus- by the fact that in India we have a situ- (making handicrafts) for the business
try Academy ation that there are competing airports, reaching out to producers who can serve
Ms. Vandana Aggarwal: Ministry of each developing their own system, even customised needs as well to those being
Civil Aviation, Government of India, customs have their system, and large apart from the big business needs. The
Economic Advisor multinational forwarders would have Big India Cloud, the Big India Digital
Ms. Kirsten De Bruijn: Emirates Sky- their propriety systems. The Indian Air Platform is also in the making. She urged
Cargo, Vice-President, Cargo Pricing and Cargo Association has developed an in- the international cargo community to
Interline – Revenue Optimisation dustry platform called ‘Uplift’ and the partner with the government of India and
Mr. Shankar Iyer: Swiss WorldCargo Di- government is developing the National all the stakeholders who are participating
rector Cargo Africa, Middle East and India Air Cargo Community System (ACS). in creating this digital platform.
Mr. Markus Mücke: Global Head Air So the average forwarder has to The AFI Chair, Mr. Keshav Tanna,
Freight Procurement and Product Man- comply with individual independent explained why he had chosen this subject
agement at Panalpina systems and to feed data separately and of disruption and opportunities for this
No. 125 | November 2018 FIATA REVIEW 7
InsIde FWC 2018
session. It was all caused by a very simple and the opportunities, and finally the have corrupted local leaders, provincial
message he had received. expected positive trade impact of full leaders, ministers, and even presidents
“Uber, the world’s largest taxi com- implementation of the TFA. The meet- and prime ministers.
pany, owns no vehicles. Facebook, the ing noted that 67% of the existing Na- The UfW Transportation Task Force
most popular media owner, creates no tional Trade Facilitation Committees in- is combatting the above. It raises aware-
content. Alibaba, the most valuable re- cluded forwarders’ representatives. ness, intelligence, shares best practices
tailer, has no inventory. Airbnb, the larg- Mr. Ankur Huria Huria, of the World and technical innovations. Campbell ex-
est accommodation provider, owns no Bank (WBG), Senior Private Sector Spe- plained an information-sharing system
real estate. (Origin: various sources on cialist, Trade Facilitation and Logistics, supported by the Royal Foundation and
the worldwide web.) underlined Mr. Gamboa’s presentation in developed to facilitate increased distribu-
“Which way is the world headed? It view of the big gains of TFA, its objec- tion of information with the private sec-
is all about technology. It is perhaps equal tives and benefits, the role of the World tor. This system works in tandem with a
for all, some more, in terms of skills, Bank, its approach and ways of support. secure network to pass information about
some a little less.” WBG projects directly cut trade costs and suspected wildlife traffickers on to cus-
“Disruption is not only for the sake facilitate trade by improving coopera- toms and law-enforcement authorities.
of disruption; it also has to be meaningful tion across border management agencies, Mr. P.K. Das, Member Customs,
and therefore the people who are affected harmonising procedures, and fostering Central Board of Indirect Taxes and Cus-
by it should also be able actually to posi- smoother and more cost-effective logis- toms, Government of India, provided his
tion themselves to remain relevant.” tics. Finally, he focused on establishing insight about e-commerce in India and its
The panel discussion was well re- modern border management. exponential growth. India’s e-commerce
ceived by the audience and the AFI’s The CAI Chair introduced another potential is projected at USD 52 bil-
normal business meeting continued speaker who – as he announced in a first lion. Right now, India is a small space
thereafter. thought – may not be related to customs. in e-commerce, compared to many other
The link soon became evident, howev- countries in the world. He predicted that
er. Mr. Robert Campbell, of the Royal India has huge opportunities, and these
Foundation of the Duke and Duchess of can be taken forward by SMEs as well to
CAI Cambridge, United for Wildlife (UfW) move into e-commerce.
Programme Manager. UfW is engaged The Indian Customs Authorities have
CUSTOMS AFFAIRS in protecting endangered species, such as taken measures to liberalise and facilitate
INSTITUTE elephants, rhinos, tigers and pangolins, e-commerce, to streamline procedures, in
The CAI meeting chaired by Mr. Steve so they can share our world with future particular for couriers and foreign post.
Parker delivered several presentations generations. These procedures to have the basic effect
from speakers about customs topics of “Did you know?” Campbell asked. of making India a better place for the
the day. These were: e-commerce, the There are only HALF as many wild ani- people operating in this sector, whether
protection of wildlife and the World mals in the world today as there were they be customers, vendors, courier ope-
Trade Organisation (WTO) – Trade Fa- 50 years ago? Wildlife trafficking is the rators or foreign post operators.
cilitation Agreement (TFA). World’s fourth-biggest illicit trade ‘mar- Mr. Das informed his audience that
Two comprehensive presentations ket’ and makes up to USD 23 billion the government of India has announced
about the state of play and objective of per year. The people that make the high various digitised initiatives in the last
the TFA were provided. The first one by profits are those that one cannot see – three years. Digital India, Making In-
Mr. Alejandro Gamboa-Alder, Counsel- professional international criminals and dia, Start-up India, to name but a few.
lor, Market Access Division of the WTO. their international organised criminal All these initiatives touch on e-commerce
He explained the ways of the TFA networks. These perform in a huge in- in one way or another.
to overcome obstacles, the so called red dustrialised supply chain to kill wildlife,
tape for trade crossing borders, and he smuggle and sell it.
showed the associated articles in the These networks are organised crime
TFA for cutting red tape at the border networks like many others, and they are MTI
for easier trade. Delegates noted the sta- experienced now in moving into new
tus of the current implementation of the markets, financing poachers, smuggling MUlTIMOdAl TRANSpORT
TFA. Gamboa informed his listeners on contraband on cargo ships and commer- INSTITUTE
issues related to the single window, the cial aeroplanes, and are linked with other The Chairman of the Multimodal Trans-
national committee on trade facilita- threats. Wildlife trafficking is listed as a port Institute, Mr. Robert Keen (United
tion (NCTF) and the e-certificates, and funding mechanism for armed groups. Kingdom), welcomed a large number of
showed the road ahead, the challenges Throughout Africa, wildlife criminals participants to the meeting.
8 FIATA REVIEW No. 125 | November 2018
InsIde FWC 2018
Sea and do everything they can to develop – FIATA further encourages more data
Mr. Jens Roemer (Belgium), Chairman revenue streams that are not necessarily sharing in the maritime supply chain,
of the Working Group Sea Transport, derived from freight, but FIATA does which would lead to greater transpar-
reported that, subject to concerns over not believe that forwarders and shippers ency of information related to these
price-fixing practices by members of should be subjected to predatory pricing charges.
the few remaining alliances, the FBI has of this nature, especially as delays often In lieu of intervention by regulatory
started an investigation of major contain- occur through no fault of the forwarder authorities, the document aims to ex-
er shipping lines by storming a meeting or shipper. amine the current situation and outline
of top industry executives in the USA on In the document, the Working best practices that could be implemented
the 21st of March 2017. The investiga- Group suggests that commercial partners voluntarily by all parties moving cargo
tion is pending. review the following issues related to de- through ports. These best practices may
Furthermore, the FMC has inves- murrage and detention charges and nego- help reduce unnecessary supply chain
tigated the charging of demurrage and tiate an agreement to: costs and inefficient behaviour that lead
detention fees by container shipping – Limit the demurrage or detention ac- to detention and demurrage charges.
lines. Shippers and intermediaries filed crued to a maximum amount. The document can be downloaded
a petition in December 2016, claiming – Extend the free time period in case the from the FIATA Website:
that the investigation is unfair in certain terminal is unable to release / receive a https://fiata.com/fileadmin/user_up-
scenarios. It has been suggested to estab- container by the period that is equal to load/documents/recent_views/MTI/
lish a rule that would limit situations in the duration of the inability. FIATA_World_Congress_2018_-_Pres-
which detention and demurrage may be – Limit the charging of demurrage or entation_New_Working_Group_Sea_-
collected. detention to the item that covers the Best_Practice_Guide_on_demurrage_
A public hearing was conducted by “compensation for the shipping line and_detention-.pdf
the FMC in mid-January 2018, which for the use of the container,” in case the Mr. Nicolas Buhmann provided a
included stakeholders on the petition, merchant is unable to pick up / return presentation about the new project Trade-
such as importers, shipper associations, a container. The (escalating) item that Lens. He explained that IBM and Maersk
transport providers, carriers and terminal covers the “encouragement for the mer- have launched TradeLens. This is an open
operators. chant to return the container” should and neutral supply-chain platform poised
The FMC has amended its rules be waived. to transform the industry.
governing Non-Vessel-Operating Com- – Ensure a level playing field for contain- – TradeLens is built for the industry and
mon Carriers (NVOCC), negotiated ers in merchant haulage and negotiate offers benefits to trade participants
rate arrangements and NVOCC service terms to reduce unfair differentiation. from across the supply chain ecosystem.
arrangements. The regulatory changes – Increase export demurrage free periods, – Responding to industry feedback, IBM
modernise, update and reduce regulatory in order to allow the merchant more and Maersk have revised the approach
burdens. realistic export planning and comply and are proceeding under a collabora-
Among others, the FMC seems to with the various closing dates related by tive model, which offers greater flexi-
have eliminated the requirement that VGM, advanced manifest requirements bility and responsiveness to industry
NVOCCs file negotiated rate arrange- and physical closing. feedback.
ments (NRAs) and NVOCC service ar- – Change the calculation of export de- – An Industry Advisory Board will help to
rangements (NSAs). murrage to transfer the responsibility shape the platform and drive standards.
FIATA respects that demurrage and of vessel delays to the shipping line. – Maersk Line and Hamburg Süd are
detention charges are a valid and impor- – Ensure that demurrage and deten- participants under the same terms as
tant tool for shipping lines to ensure that tion charges on import shipments are other network members.
their equipment is returned as fast as pos- charged much faster, ideally within a – Core platform components are avail-
sible. Merchants exceeding relevant free week. able today, under an early adopter pro-
times should be penalised for the use of – Help to relieve terminal congestion as gramme. Full release remains on target
the container. well as land-side concentration of pick- for Q4 / 2018.
However, merchants should not be ups and deliveries, due to bigger vessels
subjected to unjust and unreasonable and higher peaks, and allow merchants Road
charges. In this context, there are strong more flexibility by increasing demur- Mr. Tomas Suhanyi (Slovakia), Chairman
indications that shipping lines abuse the rage free periods. of Working Group Road Transport, re-
charging of demurrage and detention – Support the modal shift towards more ported that the WG met in Prague, Czech
to maximise profits. It is understood environmentally-friendly modes of Republic, on the 7th of September 2018.
that shipping lines have been suffering transport, by increasing the detention He reported that the TIR has been
in a very tough business environment free period. operational in China since the 18th of
No. 125 | November 2018 FIATA REVIEW 9
INSIDE FWC 2018
May 2018. The first TIR transport was member association of FIATA, and at-
performed by two Chinese and one Rus- tracted 55 participants from 18 countries.
sian TIR carnet holder. Currently TIR Both the industry and governments
transport is performed by Kazakh op- are broadly aware of rail transport
erators (from China) and Uzbek opera- bottlenecks.
tors (to / from China). The TIR has been Taking the Eurasian
operational in Pakistan since the 18th of rail corridor as an ex-
April 2018. The first TIR operation took ample, speakers in
place in July, with goods transported Istanbul pointed
from Iran to Pakistan, and TIR IT tools out that less
used in their full scope in both Iran and developed infra-
Pakistan. The next milestone is to ex- structure in some
tend digital TIR to the entire length of areas represents
the Islamabad–Tehran–Istanbul corridor one barrier, as
(ITI). Finally, the TIR has been opera- do infrastructure
tional in India since the 15th of August gaps, low opera- Intense B2B meet-
2018. Customs offices in the port of efficiency
tional effi ciency and ings – and festivities.
Mumbai and in Delhi are open at the first lack of effeffective
ective con-
stage, the number of customs offices is to nection to other modes of
be expanded further. First TIR operations transport.
are under preparation; TIR in India paves Other bottlenecks which are becoming but society is urged to make compromis-
the way for the activation of the Interna- increasingly significant are administrative es because of its complexity. Multimodal
tional North–South Transport Corridor bottlenecks. Differences in cross-border pro- transports are the challenges for digitali-
corridor (INSTC). cedures, legal systems, trade and transport sation. Digital applications are different
The INSTC, connecting the Indian policies, transport documents and many from country to country and belong to
Ocean and the Persian Gulf to Russia other factors limit efficiency. the regulatory framework in each county.
via Iran, was initiated in the year 2000 FIATA and UIC have decided to or- Mr. Britto supposed that it is very expen-
by Iran, Russia and India. The INSTC ganise the next Rail Market Place Semi- sive to apply digitalisation by medium
was expanded to include eleven new nar in 2019. Place and date have yet to be and small-sized freight forwarders.
members, namely Azerbaijan, Armenia, announced. Euro-Asian rail freight corri-
Kazakhstan, Kyrgyzstan, Tajikistan, Tur- dors transit many countries, all of which CARGO HANDLING IN PORTS
key, Ukraine, Belarus, Oman, Syria and are members of UNECE or UNESCAP. WITH GLOBAL ACTIVITIES AND
Bulgaria (as an observer). Moreover, the Each has a different national railway ITS CHALLENGE IN A DIGITAL-
INSTC should reduce transport costs system, structure, and a different legal ISED WORLD – A FORUM
and transit times. There could be syner- regime governing international rail trans- Mr. Jan Hoffmann, Chief, Trade Logistics
gies between the FIATA multimodal bill port. The convention concerning Inter- Branch, Division on Technology & Logis-
of lading (transport document) and the national Carriage by Rail (COTIF), for tics, UNCTAD, Geneva, reported that
TIR Carnet (transit customs document). example, and its uniform rules regarding there are three stages which have an im-
the Contract of International Carriage of pact on digitalisation.
RAIL Goods by rail (CIM). In addition, there 1st – Optimisation: An important
Dr. Ivan Petrov (Bulgaria), Chairman of is the agreement on International Rail- driver for the optimisation of port calls
the Working Group Rail Transport, re- way Freight Transport (SMGS). is that relevant data is shared in advance.
ported on the second joint FIATA and This enables better planning of berth
OSJD seminar on Combined Trans- DIGITALISATION occupation, availability of equipment,
port, held on in Istanbul, Turkey, on the Mr. Xavier Britto, Chairman of Kerry labour resources, as well as stowage plan-
11th and 12th of July. Under the theme India, reported his views on the digital ning and the subsequent distribution and
of “New possibilities for Europe–Asia– impact on and the challenges in the delivery arrangements.
Europe multimodal transportation” del- freight forwarding business. India has 2nd – Extension: Today, the track-
egates discussed critical aspects for the made a lot of progress in digitalisation ing of cargo in cases of incorrect delivery
development of Asia–Europe transport over the past few years, despite the many is nearly impossible. It is also hard to
corridors, namely political support, unifi- challenges. It is estimated that digitalised identify where in the chain the issue oc-
cation of trade laws and trade facilitation, commerce will grow rapidly over the next curred. This is due to a number of missing
challenges and best practices. The meet- few years. The digital world provides us mechanisms, for example reliable record
ing was hosted by UTIKAD, the Turkish with the comfort of cost effectiveness, of identity, transparent and verifiable trail
10 FIATA REVIEW No. 125 | November 2018InsIde FWC 2018
that India’s global ered insightful views on the impact of
ranking in the diversity in the workplace. Ms. Yechury
World Bank’s 2016 highlighted how the status of women
logistics performance in Indian society has undergone a sea
index saw India jump change over the past few decades, from
from 54th in 2014 to a mere homemaker to a dynamic multi-
35th in 2016. tasking individual.
The global logistics Relating this to our industry, she
industry employs 40 million pointed out that India was the country
professionals, and the Indian with the greatest number of female pilots.
logistics industry employs about Globally just over 5% of pilots are wom-
22 million people. India is one of the en, whereas in India, the figure is close
fastest-growing economies in the world. to 13%. On International Women’s Day
Container handling capacity in the Air India had an all-woman crew fly a
country’s ports is planned to be increased record-breaking round-the-world Delhi–
of ownership to 47 million TEU by 2020 (10.35 mil- San Francisco–Delhi route.
and up-to-date cargo lion TEU at present). India’s major ports After highlighting the various ad-
traceability information. handled 14.68 million TEU in 2017–2018. vances made by women, she hoped that
Possible solution: Blockchain can be Mr. Sachin Bhunushali, CEO of governments and the private sector would
used to solve some of these challenges, by Gateway Rail, reported that there is recognise the benefits of a diverse work-
creating an electronic, immutable, trans- a need to integrate multiple actors, force, not just one focusing on women’s
parent and verifiable decentralised record multiple documents and multiple regula- development, but also on racial and reli-
around cargo documentation. tory processes. The VGM represents an gious diversity, as this cultivates varying
Additional benefits from such a so- important piece of information for all ideas and allows for more opportunities
lution would include access to reliable modes of transportation. There are vari- of growth in new markets.
information that can be used for risk ous international conventions in place Ms. Yechury concluded by highlight-
management or financial purposes, the (Hamburg, Hague-Visby, etc.), but now- ing the fact that gender equality has made
creation of automated smart contracts adays it is very difficult to follow these great strides, but still has a long way to
around container documentation and a rules. There are only three ratifications go. She called on all parties in the private
reduction of human errors due to auto- of the Rotterdam Rules. There should be and public sectors to continue to progress
mated processes. some element addressing e-commerce in the cause forward.
Barriers: implementing an early-stage the conventions. There should be a com- Mr. Jan Hoffmann, Chief, Trade
technology brings a number of risks, in- mon law on multimodal transport, which Logistics Branch, Division on Technol-
cluding cyber security, resistance to adop- is important for digitalisation. ogy & Logistics, UNCTAD, Geneva, fol-
tion and the need to retrain people to lowed this by shifting the focus slightly to
work with the new technology. discuss protectionism, trade and logistics
3rd – Transformation: Urgency in today’s constantly changing landscape.
among leaders to embrace digitalisation, ABIA He highlighted trade growth, quoting
to better understand the implications and UNCTAD’s Secretary General, who
to transform the enterprise to respond to AdvIsory Body Inter stated that “tariff reductions, together
the new reality. nAtIonAl AffAIrs with technological advances, drove the
Mr. Sanjiv Garg, Indian Railways The Advisory Body International Affairs extraordinary expansion of global trade
Traffic Service, reported on dedicated (ABIA) held its annual World Congress that we’ve witnessed in our lifetimes. In
rail freight corridors in India. These cor- meeting with vibrant participants in at- 1960, trade as share of world GDP stood
ridors link the four metro cities in India, tendance to hear about the body’s work at 24%; today it comes to nearly 60%.”
connecting North India with Mumbai over the past five months. With protec- Mr. Hoffmann then examined the
respectively Kolkata. The concept started tionist measures by two key superpower recent protectionist moves by the US
in 2006 and now, in 2018, it is nearly a states this past year, delegates were in government administration, emphasising
reality. The World Bank is co-funding high anticipation for the discussion to that a global trade war might jeopardise
this huge infrastructure work. come, which focused on trade wars. the multilateral trading system itself. This
The Western Corridor was designed for After opening the meeting, ABIA enhanced the role of trade bodies such
double-decker trains, with the maximum Chair Mr. Paul Golland introduced the UNCTAD, WTO and others, which act
train length set at 1,500 m. Mr. Garg re- first panel speaker, Ms. Ragini Yechury, as mediating bodies to settle such trade
ferred to container logistics and mentioned WiLAT Chair, CILT India, who deliv- disputes. He emphasised the fact that the
No. 125 | November 2018 FIATA REVIEW 11InsIde FWC 2018
international community’s work on trade
facilitation is becoming ever more impor-
tant, in the wake of tariffs as an alterna-
tive tool to combat protectionist efforts.
To complement Mr. Hoffmann’s
presentation, the ABIA Chair introduced
Mr. Mohammad Saeed, Senior Trade Fa-
cilitation Adviser at the International Trade
Center (ITC), a subset of the World Trade
Organisation (WTO). Mr. Saeed discussed
recent developments occurring in the Unit-
ed States, and their potential ramification on
world trade. Mr. Saeed instilled confidence
in FIATA members by reassuring them that
recent tariffs imposed by the US would be
unlikely to result in prolonged and sustained More than 1,200 delegates and participants found their way to New Delhi.
protectionist efforts, as the world had tasted
the many benefits that international trade Technology (ABIT) session. ABIT works Ms. Malaika, Senior Technical Staff at
has to offer. The ITC, along with the inter- with UN / CEFACT, ISO and other tech- IBM, Open tech for AI & Data, explored
national community, stood ready to help nology standard-setting organisations to AI today and tomorrow and how AI will
mediate diplomatic trade discussions with ensure that the technology used through- fundamentally change the way we do
bilateral states, to help minimise any further out the logistics industry is taken into business. AI is about analysing the past,
threats of trade wars. consideration when new standards are predicting the future and providing ac-
After hearing both speakers it was proposed and implemented. The aim of tions in the present. AI relies on having
clear to the audience that there would this specific session was provide an educa- digital data. Computing has moved along.
not be any winners from a trade or tariff tional background to delegates on block- In this era much more data is stored.
war. All countries would ultimately suffer chain and artificial intelligence (AI). AI is used for facial recognition and
and it was up to private sector groups and Mr. Le Hors, Senior Technical Staff purchase recommendations, for example.
the public sector to work together to find Member, Web and Blockchain Open Computers learn how to respond to cus-
common ground. Technologies at IBM, explained how tomers. Huge investments are happening
After these three engaging presenta- blockchain will fundamentally change in AI. We can expect it to grow and be
tions the Chairman Mr. Golland opened the way we do business. The novel block- used more and more in every discipline.
the floor for questions that covered range chain architecture gives participants the Ms. Malaika predicted that AI will get
of queries, from changing regulations to ability to share a ledger, which is updated deeper and deeper into systems, more
assistance with diversity in the workplace every time a transaction occurs through data will be analysed and how entities
to the benefits of protectionist measures peer-to-peer replication. Cryptography is deal with each other will be different.
for emerging markets in comparison to used to ensure that network participants You will be able to target much more
developed markets. see only those parts of the ledger that are regularly, personalise at scale. The whole
As time was running out Mr. Golland relevant to them, so that transactions are planet will be instrumented sending mes-
announced the closing of the meeting, secure, authenticated and verifiable. sages to big servers. An emerging area is
giving details of the next meeting, which Blockchain also allows the contract how to trust AI. AI will need regulation
will be held at the 2019 FIATA HQ Ses- for asset transfer to be embedded in the and institutions, because it will need to
sion in Zurich in March. transaction database, determining the be able to explain itself.
conditions under which the transaction Mr. Voorspuij, Senior Manager,
can occur. Network participants agree Transport and Logistics, at GS1’s global
how transactions are verified, through office, put both topics in context by ex-
ABIT consensus mechanisms. Blockchains plaining that both blockchain and arti-
are all about adding irrefutable proof to ficial intelligence work best when leve-
AdvIsory Body of transactions. Blockchain technology ena- raging common global standards. A
InformATIon Technology bles the Bitcoin crypto-currency and is ‘shipment’ is not understood in the same
On the 28th of September Susan Malaika best known for this usage. However, the way by everybody. One thing that needs
and Arnaud Le Hors from IBM, and Jaco shared ledger technology is separate and to be fixed is a common semantics. In-
Voorspuij from GS1, made presentations separable – applicable to a whole range of dividual things moving along the supply
at the Advisory Body of Information business challenges across all industries. chain need to be identified. Many identi-
12 FIATA REVIEW No. 125 | November 2018InsIde FWC 2018
fication numbers are required. Once the B/Ls and safeguard its integrity. Mr. Brown c) FRAuD FOunD In REcEnT
things are identified in our IT systems, introduced the case of Nike, where custom cARGO cLAIMS
you have to be able to link the physical brokers were held responsible for importing Mr. Brown: Apart from the Nike case,
object back to its information. What are counterfeit cargo without knowing that the another example is a shipment of auto
the kinds of information that you may shipper was in fact not Nike, but individuals parts from the USA to China. When
wish to exchange? GS1 identifies events pretending to be Nike. cargo arrived in the port of discharge, the
such as the buying and selling of trans- Mr. Narayanan pointed out that in the consignee could not be found and the
port and logistics services and the ex- current digital era, people tend to under- cargo was found by customs to be tires,
change of master data about the product estimate the importance of data security forbidden to be imported into China.
and the location. and the damage of cyber crime. Cyber The NVOCC had to pay for de-
The panel discussion, moderated by risks are real for both online activities – at- murrage, detention and fines, as it was
ABIT Chairwoman Ms. Anne Sandretto, tacks on IT systems – and offline activities the shipper in the Master B/L. In many
made clear that there are enormous tech – fraudulently requesting confidential data similar cases, shippers did not exist and
opportunities, because logisticians and for shipments from careless employees. consignees were highly susceptible, so the
freight forwarders (including ports, air- Below is some valuable information best advice for freight forwarders is to
ports, etc) are digitising their systems and learned from the Q & A session. know the clients and sub-contractors to
embarking on technologies such as block- the greatest extent possible.
chain and AI. It appears that semantic A) ThInGS TO nOTIcE
PDFs might be a useful concept for the whEn ISSuInG nVOcc D) cYBER ATTAckS AnD
freight forwarders – as a way to help auto- BILLS OF LADInG InSuRAncE cOVERAGE
mating data extraction from documents. Mr. Mukundan: When NVOCCs issue Mr. Narayanan: Freight forwarders usu-
If the documents are varied structurally, bills of lading, it is important to make ally maintain confidential and valuable
then this data-capture solution might be sure that the NVOCC B/L is uniquely data about shipments and clients. If such
appropriate. anchored to the Master B/L and the car- data is inappropriately disclosed to third
go. NVOCCs should make proper checks parties and results in fraud against clients,
that the shipment is really undertaking then clients might hold forwarders liable
and Master B/L has been issued. If the for gross negligence.
ABLM unique connection is broken, multiple Freight forwarders should thus take
NVOCC B/Ls are referred to the same reasonable procedures to prevent data
ADVISORY BODY cargo and NVOCCs cannot prove that leakage, including training of employees
LEGAL MATTERS proper due diligence has been conducted, and the timely updating of computer de-
The ABLM session at FWC 2018 featured then they may be legally accountable for fence software.
an informative and interactive panel dis- the damage. Mr. Brown: Apart from the responsi-
cussion on the topic of “fighting against bility to the data itself, more jurisdictions
trade fraud”. Three distinguished guest B) SwITch BILLS OF LADInG now require data holders to carry out spe-
speakers attended the session on the 27th Mr. Narayanan: Switch bills of lading cific notification procedures to people in
of September, namely Mr. Pottengal are normally a second set of B/Ls, issued case of data breach, such as GDPR in the
Mukundan, Director of ICC Commer- by the carrier as requested by the parties, EU. Cyber crime insurance would be able
cial Crime Services; Mr. Badri Narayanan, to prevent original seller and final buy- to cover such costs.
Partner of Lakshmikumaran & Sridharan; ers from knowing the identifies of each At the end of the session, Mr. Gluck
and Mr. Michael Brown, Executive Vice- other. Forwarders are recommended not reminded his audience that FIATA has
President of Avalon Risk Management. to issue any switch bills of lading, as mal- several standard documents that forward-
Under the moderation of ABLM practice can easily result in fraud, dispute ers might consider using in their busi-
Chairman Mr. Richard Gluck the speakers and litigation. If there is a pressing need ness. The FIATA Model Correspondents’
elaborated on fraud related to NVOCC to do so, forwarder should make sure that Agreement can be used to develop it into
bills of lading, cargo claims and cyber at- they know clearly of the clients and the an agreement with agents and correspond-
tacks, and gave forwarders some advice on shipment and keep all documentation. ents around the globe. FIATA and Asso-
how to prevent such fraud. Mr. Mukundan: From the perspec- ciation Members have developed FIATA
Mr. Mukundan reported that research tive of banks, it is not allowed to have Model Rules and other Standard Trading
conducted by ICC saw multiple sets of origi- two documents of title to the same cargo Conditions that can be used for agree-
nal B/Ls issued on the same cargo and sub- circulating at the same time and through ments with clients. The ABLM is also de-
mitted to different banks for financing. He different banking channels. Banks would veloping guidelines for the prevention of
called on all partners in the process, includ- only finance the switch B/L if the same cyber crime and bribery, which will proba-
ing NVOCCs, to improve scrutiny in issuing bank holds both sets of B/Ls. bly be available to members in 2019.
No. 125 | November 2018 FIATA REVIEW 13InsIde FWC 2018
ABSS challenges of mitigating security concerns as who covers insurance in the case of
AdviSory Body of such unit’s technology to regulators
and the private sector, on a daily basis.
accidents with autonomous vehicles,
to whether the cost of driverless trucks
SAfty Seccurtiy He advised listeners that there were five would justify freight forwarders and the
The Advisory Body Safety Security levels of autonomous trucking, with his market adopting this new technology.
(ABSS) presented an in-depth agenda at company focusing on level three, which ABSS Chair Mr. Fielder announced
this year’s 2018 FIATA World Congress required a driver to be in the truck at all the closing of the meeting, reminding
Session. The meeting began with short times during its autonomous operation. participants that the next meeting would
updates from the United States of Ame- Mr. Manpuria highlighted the fact be held at the 2019 FIATA HQ Session
rica and Australia. that autonomous truck technology was in Zurich in March.
Mr. Will Sehestedt updated mem- collecting real-life data from drivers, to
bers on relevant changes to the USA’s air implement the best driving habits in their
cargo security activities, advising his audi- technology. His company and others had
ence that US CBP’s Air Cargo Advanced accumulated driving habit data from over ABvt And fLA
Screening programme (ACAS) went into 100 truck drivers, which he argued would
effect in June 2018, requiring a set of ad- minimise the risk of accidents on the AdviSory Body vocAtionAL
vance data to be filed with the CBP for road. He also highlighted that technol- trAining And fiAtA
analysis before permission is granted for ogy can replace serious issues of concern LogiSticS AcAdemy
cargo to be loaded onto an aircraft bound around driver fatigue, and would help re- This session, containing several high-
for the USA. He confirmed that the CBP duce overall truck accident rates. lights, marked the beginning of the fu-
would be flexible in the first year of the Following Mr. Manpuria the second ture of learning at FIATA, through the
programme, until June 2019, by not en- panellist, Mr. Zeljko Jeftic, Automation Fiata Logistics Academy (FLA). Mr. Jean-
forcing penalties unless there were repeat- and Security, Global Innovation at IRU, Claude Delen presented the book ‘Emer-
ed violations. highlighted that there were two types of gent Africa’, sponsored by the FFVT. The
Mr. Sehestedt also provided an update players in the driverless truck space. book is written by Dr. Francis Mangeni,
on a voluntary participation programme The first looked to manufacture the Director of Trade, Customs and Mone-
called C-TPAT; whereby US CBP would entire truck itself, and the second aimed tary Affairs, Common Market for Eastern
be adding another tier of participation to to simply retro-fit technology onto an and Southern Africa, and Prof. Calestous
the programme, and minimum criteria existing trucks, enabling them to be au- Juma, Professor of the Practice of Inter-
would be released next year. tonomous. He emphasised the impor- national Development and Faculty Chair
Mr. Brian Lovell then updated mem- tance for private sector actors to protect of the Innovation for Economic Devel-
bers on changes to Australia’s air cargo against threats in the field of cyber secu- opment Executive Programme at Har-
security programme, advising them that rity, as autonomous trucks are likely to be vard Kennedy School. Mr. Delen encour-
following last year’s change, requiring connected to each another, meaning that aged FIATA members to read the book
piece-level advanced screening of all air once a hacker gained access to the system and learn about the tripartite free trade
cargo to the USA, the programme would he also gained access to the entire fleet of area, mechanisms of continental consoli-
now be expanded, with effect from the autonomous trucks. dation, the transformation of economic
1st of March 2019, to cover all destina- Mr. Jeftic further examined the dif- structures as well as the development of
tions, with the exception of cargo originat- ference between modern-day theft involv- new international trade relations.
ing from a regulated ‘Known Consignor’ ing current trucks, versus those involv- Another highlight was signing of a
business. Mr. Lovell and Mr. Sehestedt ing autonomous trucks, asking whether Training Agreement between the FIATA
will keep FIATA updated throughout the it would it be easier to steal truck keys, Logistics Academy (FLA) and the World
development of both programmes. or to hack into a truck? He advised his Customs Organisation. Mr. Luc de Blieck,
Following these short updates, ABSS listeners that higher levels of automation Deputy Director, Procedures and Facilita-
Chair Mr. David Fielder advised dele- will most likely mean new types of crime. tion Compliance & Facilitation Directo-
gates that the main discussion topic for Questions regarding technically more ad- rate, explained that the WCO is the global
this session would address the rise of vanced vehicles, with a potentially bigger centre of customs expertise that continu-
autonomous vehicles, the risk to safety impact, were issues that regulators and ously strives to share this expertise with its
and security in our industry, and how industry needed to examine further. members through various ways.
industry and government can work to- Following these two engaging presen- The WCO Secretariat received a con-
gether to mitigate potential risks. tations, ABSS Vice-Chairman Mr. Lovell siderable number of requests to access the
The first panellist Mr. Pranav Manpuria, moderated a panel session with questions e-learning courses by the private sector. As
CEO of Flux Auto, a driverless truck tech- asked by the audience via a live app por- a result, a brand new Customs e-learning
nology company in India, dealt with the tal. Questions ranged from topics such portal was developed, the WCO Acad-
16 FIATA REVIEW No. 125 | November 2018InsIde FWC 2018
emy. It is the private sector’s point of ac- Diploma in SCM. positive about the journey.
cess to WCO’s expertise. This initiative – Foreign Trade Chamber of Bosnia and Mr. Sim stated that the mission of
benefits small and medium-sized com- Herzegovina: Validation of the FIATA FIATA in the future of learning should take
panies by disseminating knowledge to Diploma in Freight Forwarding. reference to jobs, the workforce dynamic,
the private sector around the globe. The – Federation of Malaysian Freight For- demographics and different levels of eco-
Academy now wants to join forces with warders (FMFF): Validation of the nomic growth. The future of education at
FIATA to add value to the management FIATA Diploma in Freight Forwarding. FIATA needs to address these issues in a
of the supply chain. Mr. Delen looked – Indonesian Logistics and Forwarders very dynamic manner. Jobs and employ-
forward to fruitful cooperation between Association (ILFA): Validation of the ment are the key drivers of change.
the two organisations. FIATA Diploma in Freight Forwarding.
Mr. Dimitris Politopoulos, who is A Panel Discussion moderated by
the Project / Client Relations Coordina- Mr. Christian Doepgen, Editor-in-Chief
tor with the WCO Academy, specified of the International Transport Journal region afriCa
that the WCO Academy’s audience con-
sists of individuals and legal entities. They
ITJ, followed. The panel participants in-
cluded Mr. Delen, FFVT President and
Middle easT
engage companies and associations. The FIATA Past President; Mr. Francesco (raMe)
courses are available in several languages. Parisi, FIATA Past President, Mr. Samir This year, the Region Africa Middle East
He mentioned some of the subjects avail- Shah, an experienced freight forwarding (RAME) meeting aimed to focus on a set
able. The Harmonised System is offered professional who recently received the of key policy topics relevant in the region
under industry-specific courses, Rules certificate of merit from the WCO, and today. With the new focus came a packed
of Origin, Valuation courses and WCO Mr. Sim, ABVT Chairperson. agenda, with high-level speakers from the
Data Model, amongst others. Mr. Parisi mentioned that in the course Africa and the Middle East. Despite the
of his over 40 years of work in freight for- long distance to travel to India, RAME
Mr. ThoMas siM, Chair warding he has become more and more delegates made the journey, in order to
person aBVT, presenTed aware of the importance of training and ed- remain up to date on industry activi-
The following sTaTisTiCs ucation. He has supported the training and ties and to identify how they can pledge
– A total of 283 Trainer Certifications were education section at FIATA very strongly, further support to advance issues in the
issued from 1 / 1 / 2011–23 / 9 / 2018. because he believes it is one of the strong- Middle East and in Africa.
– 61 programmes in 53 countries were vali- est pillars of FIATA now and in the future. Mr.StephenNgatunga,RAMEChair-
dated once, 45 programmes in 41 coun- Mr. Delen looked forward to digitisation man, opened the meeting by welcoming
tries have been re-validated over the last in train-the-trainer programmes and more the participants. Wasting no time, he
four years. train-the-trainer courses. gave the floor to the RAME Young Inter-
– In the period 1 / 1 / 1996–23 / 9 / 2018 Mr. Shah talked about the challenges national Freight Forwarder of the Year,
a total of 14,461 FIATA Diplomas in of logistics training in India and also fo- Ms. Tjaka Segooa, who highlighted her
Freight Forwarding were issued. This cused on the road forward. They are devel- long journey from South Africa to India.
year, from 5 / 3 / 2018–23 / 9 / 2018, a oping a formal education model in India, She also focused on the industry’s youth-
total of 743 diplomas were issued. namely the National Standards for Quality ful future and portrayed much optimism
Mr. Thomas Sim then presented the fol- Factors. This programme offers a bridge towards a sector that has often been
lowing validation certificates. course that provides credit for work expe- viewed as unappealing to younger gen-
– Singapore Logistics Association: Valida- rience and completes it with training. The erations in the past.
tion of the FIATA Diploma in Freight government has also agreed to implement Remaining on the theme of opti-
Forwarding. an apprenticeship programme. mism, Mr. Bassil Eid, RAME Manager,
– ASOCIACION MEXICANA DE They conduct roadshows in the advised delegates that the book ‘Emer-
AGENTES DE CARGA, A.C. country for boys and girls, to showcase gent Africa’, which was co-authored by
(AMACARGA): Validation of the the advantages of pursuing a logistics ca- Francis Mangeni and the late Calestous
FIATA Diploma in Freight Forwarding. reer. They have three large centres of ex- Juma, was ready to be released in Octo-
– Lithuanian National Association of cellence for logistics training coming up. ber. This highly-anticipated publication,
Forwarders and Logistics (LINEKA): Technology is also used to reach out, us- to which FIATA has also contributed,
Validation of the FIATA Diploma in ing logistics games, webinars, audio train- will be made available to FIATA mem-
Freight Forwarding. ings, etc. Audio training is preferred, be- bers free of charge. The book aims to have
– Association of National Freight For- cause people can listen to the course while a profound impact on the continent, to
warders of the Republic of Kazakh- commuting to and from work, for exam- help push forward trade agreements and
stan: Validation of the FIATA Diploma ple. The fruits will take another three to further integration between states.
in Freight Forwarding and Higher four years to be seen, but Mr. Shah is very Looking ahead, there were two very
No. 125 | November 2018 FIATA REVIEW 17You can also read
