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ANNUAL REPORT 2015/2016
Doc. 30/298
Glattbrugg, August 31st 2016
Published by FIATA
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CONTENTS
THE STRUCTURE OF FIATA .......................................................................................................................................... 4
FIATA PRESIDENT’S REPORT ...................................................................................................................................... 5
DIRECTOR GENERAL’S REPORT ................................................................................................................................ 8
AIRFREIGHT INSTITUTE (AFI) ................................................................................................................................... 11
CUSTOMS AFFAIRS INSTITUTE (CAI) ...................................................................................................................... 12
MULTIMODAL TRANSPORT INSTITUTE (MTI) .................................................................................................... 15
Rail ................................................................................................................................................................. 15
Road ............................................................................................................................................................... 17
Turkey / Iran .............................................................................................................................................. 17
Refugees .................................................................................................................................................... 18
Road Crime ................................................................................................................................................ 18
European Union ......................................................................................................................................... 18
TIR System - Situation of the TIR Carnet in Russia .................................................................................... 18
TIR – Expansion .......................................................................................................................................... 18
Maritime Transport ....................................................................................................................................... 19
Container Weighing - IMO Safety of Life at Sea (SOLAS) Regulation ........................................................ 19
C-TPAT (Customs Trade Partnership against Terrorism) and AEO Regimes .............................................. 20
Changes to the FMC’s OTI (Ocean Transport Intermediaries) Regulations ............................................... 20
Rotterdam Rules ........................................................................................................................................ 20
Chairperson’s Conclusion .............................................................................................................................. 21
ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA) ........................................................................................ 21
ADVISORY BODY INFORMATION TECHNOLOGY (ABIT) ................................................................................. 23
ADVISORY BODY LEGAL MATTERS (ABLM) ........................................................................................................ 25
IATA-FIATA Air Cargo Program (IFACP).......................................................................................................... 25
Fraudulent activity involving FIATA Multimodal Transport bills of lading .................................................... 26
UNCITRAL Working Group on Electronic Transferable Records .................................................................... 26
Regional Reports ........................................................................................................................................... 27
DSLV publishes German freight forwarders’ conditions 2016 .................................................................. 27
Standard Trading Conditions: China .......................................................................................................... 27
Non-collection of goods by a consignee ........................................................................................................ 27
ADVISORY BODY SAFETY AND SECURITY (ABSS) .............................................................................................. 28
ADVISORY BODY OF VOCATIONAL TRAINING (ABVT) .................................................................................... 30
FIATA Validation of Training Materials .......................................................................................................... 30
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Awarding of FIATA Diplomas ......................................................................................................................... 31
Young Logistics Professionals Day ................................................................................................................. 31
ABVT Forum ................................................................................................................................................... 31
FIATA/TT Club Young International Freight Forwarder of the Year Award ................................................... 31
FIATA Higher Diploma in Supply Chain Management ................................................................................... 32
Trainer Certification....................................................................................................................................... 32
Future Directions of the ABVT ....................................................................................................................... 33
FIATA LOGISTICS ACADEMY (FLA) ......................................................................................................................... 34
WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL) ............................................................................. 35
FIATA WORLD CONGRESS COMMITTEE ............................................................................................................... 36
Registered Office:
FIATA International Federation of Freight
Forwarders Associations
Schaffhauserstrasse 104
CH- 8152 Glattbrugg
Switzerland
Phone: +41 (0)43 211 65 00
Fax: +41 (0)43 211 65 65
E-mail: [email protected]
Website: www.fiata.com
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THE STRUCTURE OF FIATA
Presidency President of FIATA Huxiang Zhao China Immediate Past President Francesco S. Parisi Italy Secretary General Robert A. Voltmann United States Treasurer Jean-Claude Delen Belgium Senior Vice President Babar Badat Pakistan Senior Vice President Ivan Petrov Bulgaria Senior Vice President Basil Pietersen South Africa Extended Board Vice Presidents Krishnan Chelliah Malaysia Turgut Erkeskin Turkey Paul Golland Australia Robert Kingsford Kutin Ghana Marc Bibeau Canada Stephen Parker United Kingdom David Phillips United Arab Emirates Jens Roemer Belgium Antonella Straulino Italy Keshav Tanna India Jeffrey Wannamaker United States Peter Yang Chinese Taipei Chairperson AFI Rodolfo J.C. Sagel Argentina Chairperson CAI Stephen J. Morris Australia Chairperson MTI Robert Keen United Kingdom Chairperson ABLM Richard D. Gluck United States Chairperson ABVT Thomas Sim Singapore Chairperson ABSS David Fielder Denmark Chairperson ABIA Babar Badat Pakistan Chairperson ABIT Anne Sandretto France Chairperson FLA Issa Baluch United Arab Emirates Chairperson FWC Stanley Lim Singapore Chairperson RAME Basil Pietersen South Africa Chairperson RAMNS Jorge Heinermann Uruguay Chairperson RAP Chris Kanter Indonesia Chairperson REU Ivan Petrov Bulgaria
Secretariat Director-General Marco L. Sorgetti Manager AFI, CAI, RAP Daniel Bloch Manager ABVT, RAMNS, FLA Verena Schaer Manager MTI, REU, ABLM René Zimmermann Manager ABIA, ABIT, ABSS, RAME Bassil Eid Administration Barbara Wieser Congress Coordinator & Executive Ass. Elena Primitzhofer
FIATA Foundation Aldo da Ros, President
Barbara Wieser, Secretary
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FIATA PRESIDENT’S REPORT
It is a great honour for me to write my first report as President of FIATA in the exact year of the 90th anniversary of FIATA. Taking advantage of this precious opportunity, I would like to share with you what FIATA was able to achieve in the past nine decades, the work we have done for the term 2015/2016 and our goal for the future. On May 31st 1926, FIATA was founded in Vienna by 15 founding associations. The purpose was to unite the freight forwarding industry worldwide, represent, promote and protect the interests of our industry. Now, FIATA has largely realised such purpose and evolved into a true global representative of international freight forwarding and logistics industry, with 106 Association Members and represents around 40,000 international logistics and freight forwarding enterprises employing more than 10 million people across 160 countries and regions worldwide. Ninety years have passed, FIATA stays true to its initial objectives all along. Substantive efforts have been devoted to fulfil our mission, such as representing our industry in the public, setting up standards and developing best practice for the industry, offering vocational training and education, building up cooperation platforms for members, etc. Regarding public advocacy, FIATA now has consultative status with various United Nation bodies and the World Bank, and is recognised as representing the global freight forwarding industry by many other governmental and non-governmental organizations like ICC, IATA and ADB. The formulation of FIATA Model Rules and a series of FIATA Documents, such as FIATA Bills of Lading and FIATA Multimodal Transport Waybill, is an epoch-making attempt of FIATA to bridge the gap between different legislations for the international freight forwarding industry all over the world. Providing practice guidelines to the implementation of SOLAS VGM is just another example of FIATA’s routine work to guide our industry in implementing latest regulations. Training and education, the foundation to improve the overall professional capacity and service standards of the industry, has always been a priority of FIATA. We are proud to announce that, ABVT has validated/revalidated 56 programmes in 53 countries to issue the FIATA Diploma in Freight Forwarding and 38 are currently running, 15 programmes in 13 countries are available to issue the FIATA Higher Diploma in Supply Chain Management; 11 Train-the-Trainer Courses in 11 countries have been funded by FIATA Foundation, with 225 qualified trainers successfully receiving the FIATA Trainer Certificate; FLA have been able to associate with several top Universities and Institutions, such as University Alliance and edX, to provide on-line courses in soft and technical skills. Building up platforms for the industry to exchange practical experience and establishing business cooperation is one of the main tasks for FIATA bodies as well. FIATA Regional Meetings, the UIC-FIATA Market Seminar recently held in Shenzhen, China manifest how FIATA works to meet the business development needs of Individual Members and address their service requirement with innovative thinking. Starting the term from September 2015, the incumbent Presidency is committed to propel the “Future of FIATA” (FoF) and other critical industry initiatives, as well as represent FIATA in various international and regional meetings. The FoF special sessions held in 2015 and 2016 both attracted
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remarkable enthusiasm and contribution from the delegates, manifesting high expectations from FIATA members for a more influential and service-oriented FIATA. Living up to such expectations, a considerable amount of measures has been taken. Under the leadership of Director General, the Secretariat team have substantively improved their service level to our members, managed to undertake quite onerous workload with a limited number of staff. The Congress Committee are now working with hosting associations to explore a proper way to increase business networking opportunities in FIATA World Congresses, starting from this 2016 FWC in Dublin. ABVT, FLA and FIATA Foundation have clarified their mission assignments to fully exploit the training resources of FIATA. Other FIATA bodies as well are working on ways to add more value to their work. After four years of negotiations, FIATA and IATA are eventually going to make an official endorsement of the Cooperation Agreement for IATA-FIATA Air Cargo Program (IFACP) in Dublin. Nowadays, air forwarders are no longer merely selling-agents of airlines, instead in most occasions, they are customers that purchase air transport services. Adapting to such reality, FIATA and IATA initiated the IFACP, an airline-forwarder relationship management mechanism jointly governed by both forwarders and airlines, and replaced the original IATA Cargo Agency Program which is solely managed by airlines. Operational and financial criteria for endorsement and retention of IFACP Forwarders will be decided by IATA-FIATA Governing Board, and the financial review of the forwarders will be conducted by an Independent IFACP Assessor, not affiliated with either IATA or FIATA. The new program is expected to start with a pilot in Canada and operate globally before the end of 2017. We are hoping that it will generate new energy in the development of air transport industry. FIATA’s public presence is critical to the advocacy role of FIATA, and such idea is profoundly shared and practiced by the FIATA Presidency and members of various FIATA bodies. In the reference period of this report, FIATA was represented in various events of UN bodies, such as UNCITRAL, UNECE and others, the WTO, the WCO, as well as industry representations such as ICC, IATA, IRU and many others at international and regional level, both governmental and non-governmental organisations. Critically in this year, FIATA was invited to attend United Nations Open Consultation by the Security Council regarding UN Resolution 1540, being the only truly international non-governmental industry association at scene. This is the first time for FIATA to participate in the official meeting of UN, which opened a new chapter for FIATA to advance its relationship with UN and other governmental organisations. Speaking of our industry, while the recovery of global economy continues, but remains less than desirable, our industry is inevitably influenced by such trend. The development of global trade looks uncertain, it may remain difficult for the import and export sector to achieve recovery growth. However, it is encouraging to see that governments at all levels are trying to boost the economy with enhanced trade cooperation. The WTO Trade Facilitation Agreement has already been ratified by over 80 countries, its full implementation will contribute substantially to global economy with much reduced trade cost. Regional trade cooperation regimes, such as Regional Comprehensive Economic Partnership, Trans-Pacific Partnership Agreement, the “Belt and Road” Initiative, and other initiatives at the level of Mercosur and African Union will definitely stimulate logistic needs in these regions, the required investments and eventually benefit our industry in the end. FIATA calls on its members to follow closely these programs that have great commercial potential.
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In the meantime, we shall see the current business opportunities, especially in the expanding market of developing countries. Considerable amount of infrastructure construction, increasing consumption ability brought by the trend toward urbanisation and the rising of the middle class, more and more internet-based life style along with other internal economic factors will create massive opportunities for both cross-border and domestic transport, such as project logistics, supply chain logistics, e-commerce logistics, cold chain logistics, etc. In other words, even in a time of economic sluggishness, the freight forwarders shall find the business potential, find the right market positioning and pursue development. FIATA is ready to accompany and assist our members in this process, and will always be the federation for international freight forwarders and logistic service providers, where they can learn the latest industry developments, express their interests and demands and seek more business opportunities. At this special moment of FIATA’s 90th anniversary, I, Zhao Huxiang, President of FIATA, would like to thank all Association Members and Individual Members for your constant support and appreciation, and also reassure them that FIATA will try its utmost to continuously improve its service quality and enhance its global influence. I also want to thank my fellow colleagues of Presidency, a perfect manifestation of FIATA’s global representation, for their intelligence and endeavour, which enabled us to achieve so many things in merely 12 months. My sincere gratitude is also extended to all members of the Extended Board and FIATA bodies for their constant and selfless contribution of their invaluable expertise and time. This report is too short to mention the work of every FIATA institute, but everything will be reflected in other parts of this FIATA Annual Report, ultimately benefiting our members and the freight forwarding and logistics industry at large. Last but not least, I would like to extend special appreciation to Director General and the Secretariat. They are the ones who work diligently behind the scenes of every FIATA event and the ones who make sure FIATA’s daily service go steadily and efficiently. Happy 90th Anniversary, FIATA! Huxiang Zhao President of FIATA
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DIRECTOR GENERAL’S REPORT
This is my fifth annual report and my impression is that we have moved quite a few steps forward as FIATA in the five years I have served as DG of this organisation. The generous contribution of the Presidency and the Extended Board Members, as well as the participants in our Institutes, Advisory Bodies and Committees makes this possible at relatively contained costs. FIATA has become more influential and more consistent in its approach both with regard to advocacy as well as to membership. The pessimist will always find reasons to complain, but my view is that we have done this without increasing costs and without rising our fees to members for everyone’s advantage. This is a remarkable result that has been achieved thanks to the flexibility of our collaborators and the generous contribution in kind provided by the many qualified volunteers. The list of our institute and standing committees is now as follows: Chairperson AFI Rodolfo J.C. Sagel Argentina Chairperson CAI Stephen J. Morris Australia Chairperson MTI Robert Keen United Kingdom Chairperson ABLM Richard D. Gluck United States Chairperson ABVT Thomas Sim Singapore Chairperson ABSS David Fielder Denmark Chairperson ABIA Babar Badat Pakistan Chairperson ABIT Anne Sandretto France Chairperson FLA Issa Baluch United Arab Emirates Chairperson FWC Stanley Lim Singapore The last four of these bodies were either created or strengthened in the last five years and no additional cost has been loaded onto the FIATA budget, which remains manageable and desirable for a number of other associations, even for those who handle portfolios that appear quite small compared to ours. In addition to these institutes and standing committees we have also created the WG on Sustainable Logistics, which has started its operations in Taipei last summer. The expansion of our policy agenda is testing our ability to approach and secure the most qualified staff for the job. Despite diverse opinions expressed on this subject, fact is that it has been necessary to look at resources based also outside of Zurich to fully satisfy our requirements. Attracting the right persons and creating a compensation package that can ensure their continuous support at times when finding professional and motivated staff is not simple has become crucial in the evolving path of FIATA. In particular, the ABIA and CAI agendas require staff that are familiar with knowledge that is not available in Zurich. In this light FIATA has become more flexible and more open to the world and less dependent on the level of the waters running in the Glatt, the small river that silently flows right by our office. All this being said, for the first time in my life I have the impression that public understanding of logistics is increasing. I was watching the BBC a few days before writing this statement and there I saw an interview with somebody who was talking about freight logistics as a topic for prime time attention all over the world. I may be wrong, but this shows quite a new interest in our industry. I
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believe this is also due to the important work that has been done by our companies in the last couple of decades. Logistics is now being understood as a vital element of society and it is considered important also outside of the specialised audience of operators. Good news I daresay. Coming back to FIATA, the Congress in Dublin is just weeks away and there we shall see a test of our future Congress recipe. Much work has been spent on this chapter and the coordination of the Congress Committee has absorbed some of our resources in the last 12 months, but you will see a partially new concept and I am curious whether the wind will blow for even more change or will calm down and members will be happy with the combination of old and new that we have achieved with our Irish friends in Dublin. Other than normal chores and tasks, which are rightfully and eloquently explained in the specialised reports, there are two areas of business where the Secretariat has been seriously invested with unusual workload and responsibility. The first surrounded the complex discussion about the future of FIATA, which culminated at the HQ 2016. Despite the fact that the discussion did not finally bring dramatic changes, the preparation and the debate has been continuous, transparent and extremely interesting for all parties concerned. The Secretariat, which tried to draw from this long exercise the most significant improvements for FIATA’s members, started a new edition of the Managers’ Conference, which was transformed into a steaming Association Members’ Forum, rich of ideas and proposals. I have been particularly glad and proud to hear the President’s praise of the Secretariat’s ready responsiveness in this regard. The second big agenda item for the Secretariat has been the long and eventually positive negotiation with IATA to create the new global framework for air cargo, which culminated in the agreement presented in July to the Press. Besides the laudable efforts of a first class group of volunteers headed by the Presidency Rapporteur and Treasurer, the structure of the office has supported the process wholeheartedly and incisively. It has been a hands-on process for everybody and I daresay a collective learning curve for us all, which produced epochal results. Looking at our constituency, our Membership base is substantially unchanged, and the next big task for the Secretariat will be preparing, presenting and implementing a membership acquisition campaign. Continuing on the protection of members’ value epitomised by the name and logo of FIATA we shall also start a branding campaign which will strengthen and protect the FIATA brand at global level, as recently decided by the Presidency. An important step was already taken in publicly recognising the new members joining FIATA every month and we take note with pleasure that the numbers are quite reassuring. Branding however also invests the advocacy work. Promoting FIATA members’ views and interests at the level of institutions and international peer organisations is not only one of our main missions, but it is also the most noble and effective way to promote our brand. Again, I daresay this activity has been flourishing with many new position papers and public statements that are routinely sent to the intended recipients, the Media and then published on the FIATA website. We travel to more conferences and events and we do so more importantly than we have ever done before, as the President rightfully mentioned in his report. The coordinated presence of FIATA all over the world, be it in China, in New York, Brussels, Kuala Lumpur, Nairobi, Addis and many other events that run all year round is facilitated by the Secretariat, but FIATA is particularly lucky to have a fair number of volunteers, who are able to meaningfully represent our members’ views at high level and
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factually all over the world. This is one of the greatest achievements of this organisation: FIATA is truly global, in a way that I have seldom seen anywhere else in my now relatively long experience. Looking at last year’s report I had written that “services such as the USA Bond run regularly, other services are being studied (credit protection, e-bookings, resource planning, etc.) and the usual information services, such as e-Flash and the FIATA review are running”. All services are running this year as well, but it is not easy to put in place a cost-effective credit protection scheme; despite many attempts this has not come to fruition, with several challenges yet to be resolved. As mentioned last year training is more and more crucial for our companies and we must register that FIATA’s training offer is global and well balanced, thanks to the new energy injected into the organisation by the FIATA Logistics Academy and the continuing efforts of the ABVT and the FIATA Foundation. FIATA presents many challenges, and this makes the DG’s role a rather complex and at times even difficult duty, in this regard I have to thank in particular our President for his calm, reassuring approach, which is facilitating my often time-consuming chores. I have also great appreciation for the lively and stimulating discussions within the Presidency and Extended Board, which are a real evolutionary itinerary for my professional growth. The Secretariat has now become a place where dialogue flourishes, where alternatives are examined with open heart and open mind. Caution is a continuous and valuable exercise, but I think we need to think about change with greater hope and more confidence in our resources. My key message to my collaborators is to embrace change with expectation and confidence: after 90 years FIATA is sufficiently stable to accept change without distress. There is a common perception that the status quo is comfortable. But after a while even the most comfortable seat becomes uncomfortable if one does not move. So let us all get up and move on. Logistics will change dramatically in the next few year, this is a sure thing, and sure is that we must do precisely that: move, change, evolve and thrive. With much gratitude for your confidence, Marco Leonardo SORGETTI Director-General of FIATA
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AIRFREIGHT INSTITUTE (AFI)
The Global Airfreight Industry as whole is facing difficult times. Global cargo revenues are
down to USD 52 billion in 2015 from USD 67 billion in 2011. While 2015 did not end on a
happy note, comparatively 2016 seems to have started on a more promising one.
The International Air Transport Association (IATA) released data for global air freight
markets in January showing a 2.7% rise in freight tonne kilometres (FTKs) compared to
January 2015. However, this also indicates that yields are likely to come under further
pressure, thus not making things easy for the Industry as a whole.
Total FTKs in January 2016 surpassed the previous all-time peak reached in February 2015.
One of the reasons for this could be the continuously strong growth trend (over 8%) shown
by the Middle East Carriers, probably also due to the majority of the global freight having
to be transhipped through their hubs. Despite this good start, the underlying weak trade
performance makes it unlikely for growth to accelerate significantly in the coming
months.
The industry must find other and new ways to attract and to improve its products. In daily
business Airlines and Forwarders can only succeed based on a good cooperation where the
parties work on equal levels and rights and this is why AFI unflinchingly pursued the new
Air Cargo Program agreement with IATA.
FIATA and its Airfreight Institute continues to stand for the interest of the forwarding
industry. GACAG (Global Air Cargo Advisory Group) provides Industry leadership by
jointly addressing key issues that affect our trade. We jointly work on Security issues,
eCommerce, Customs and Regulatory issues and in trade facilitation, towards a better
Global Airfreight Industry.
At the last Headquarters meeting members were informed about the tremendous work
done by both our AFI representatives as well as our airline and IATA colleagues, who have
met over twenty times in more than four years. Herman Donker, Honorary Member of
FIATA, clearly showed that it is a historical fact that negotiations with IATA were rarely
leading to expedited changes for legitimate improvements for the airfreight forwarders.
One more year passed in consultations and in June 2016 at a IATA FIATA Consultative
Council (IFCC) the final agreement was endorsed for presentation to the FIATA
Presidency. This is despite the fact that in November 2015, both parties formally closed the
Cargo Agency Modernization Program CAMP Working Groups negotiations since the
parties had an impasse to find a Cargo Accounts Settlement System (CASS) opt-out
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...initiative economies are
already working towards
one of the key architectural
pieces of the TFA in
ensuring that they have in
place an active participant
on a National Committee
on Trade Facilitation...
...several economies have
implemented or are in the
process of implementing
the single window concept
for trade data.
solution. FIATA remained firm on this point: even today, CASS participation is not
mandatory in the existing programme. Based on advice of competition law counsel, we
sought only to move this into the new agreement so that it would be seen by the Forwarder
at the time the agreement is executed, and make it clear that CASS participation is not a
mandatory condition to participation in the IFACP than it is to the existing programme
which the IFACP considered in the CAMP work.
IATA having decided to propose an alternative Air Cargo Program, whereas still the IATA
CAC would remain the highest authority to set rules for forwarders as customers of the
airlines, FIATA objected to this creation and carried forward the message to the finish line
in June this year.
Besides the formal public signature of the agreement, at the upcoming 2016 FIATA World
Congress in Dublin, Ireland you will see the journey in air logistics hosted by the Airfreight
Institute which will aim to explore on realising the full potential of airfreight. To my regret
I was not able to attend the last Head Quarter meeting in Zurich, my deputy Chairperson,
Mr Keshav Tanna did an excellent job for which I want to publicly thank him. Let me also
thank all the other colleagues who worked closely with me and the Secretariat for its
invaluable support.
Rodolfo J. C. Sagel
Chairperson - Airfreight Institute
CUSTOMS AFFAIRS INSTITUTE (CAI)
What is New in Trade Initiatives?
The year in review in relation to international trade could
be categorised as perhaps more of the same as economies
struggle to break the cycle of trade downturn.
Commodity prices, in particular oil, remain at historic
lows, and while it would be expected that this would
provide significant underpinning benefits, such can only
be driven on the back of the increased economic
performance of international trade. As reported in the
2015 Review, the World Trade Organisation (WTO) Trade
Facilitation Agreement (TFA) is a pivotal part of the
agenda for reform for the future, and at the time of
writing this report, 77 of the required 108 signatures
countries to the TFA are in place, so there is a level of
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expectation that by the end of 2016 the TFA will be operative however, in the interim,
initiative economies are already working towards one of the key architectural pieces of the
TFA in ensuring that they have in place an active participative National Committee on
Trade Facilitation (NCTF) (Article 23.2). Other economies not necessarily as proactive
appear to be waiting for the prescribed number of signatories to the TFA before
undertaking any work on trade facilitation. Others have put in place a NCTF purely on the
basis of a need to satisfy the TFA while others have emasculated the trade facilitation
opportunities by poor selection of participants or Chair to the NCTF. In relation to any
NCTF, the International Federation of Freight Forwarders Associations (FIATA) position is
support to the United Nations Economic Commission for Trade Facilitation and Electronic
Business and its Recommendation No. 4 on national trade facilitation bodies, which in turn,
provides guidelines and detailed descriptions of the steps for establishing national trade
facilitation bodies as well as their terms of reference and stakeholder identification.
In streamlining the export/import process, several economies have also implemented or are
in the process of implementing the single window concept for trade data. A single window,
while appearing a simplistic concept, is inherently complex, and in terms of data capture,
challenges most border control regulators as to:
developing an appropriate trade data system which is an effective application of
regulatory controls, and
collaboratively working with stakeholders in reducing unnecessary procedural and
process which leads to inefficiency and cost escalation.
In this regard, the United States has been a leader in an expansive single window through
the Executive Order of the President, directing that an International Trade Data System
(ITDS) be implemented by 31 December 2016. It is interesting to note in relation to the
Border Interagency Executive Council to oversight the delivery of the single window in the
ITDS that it was also to: “encourage other countries to develop similar single window
systems to facilitate the sharing of relevant data as appropriate, across governmental
systems and with trading partners.”
So what may be perceived in some economies as no need to get too excited over a single
window concept, other economies, as well as entities such as the Asia-Pacific Economic
Cooperation, are working steadily towards such outcomes. So like with the NCTF, FIATA
members need to be actively involved in single window developments.
In other regulatory areas, things have not remained static, and in terms of safety and
security as to air cargo, there has been active development by the International Civil
Aviation Organisation and the World Customs Organisation through its Joint Working
Group on Advance Cargo Information. In this regard, FIATA notes the work of the United
States Department of Homeland Security, which has leveraged off the outcomes of work
undertaken by the United States Customs and Border Protection (USCBP) in its
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requirements on Importer Security Filing (colloquially referred to as 10+2 and/or the 24-
hour load rule). In this regard, the ability of industry to work with, and facilitate, the
information exchange to the USCBP provided the opportunity for it to assess cargo as to
risk offshore and then take the ISF concept into the air freight environment. To that end,
USCBP trialled its Air Cargo Advance Screening (ACAS), and this will move from a pilot to
a regulated environment in 2017 as it has shown that the 7+1 data is available to be assessed
in pre-load time frames. This concept has been mirrored by the Canadian Pre-Load Air
Cargo Targeting (PACT) and the European Pre-Loading Consignment Information for
Secure Entry (PRECISE).
It is clear that enforcement of requirements learnt from the pilot(s) will become the key to
future operations however, at this stage, further testing and program benefits assessment
which could deliver potential ancillary business benefits and international alignment are
still being determined. However, the future of advance air cargo reporting is now a matter
of timing in a global context.
Business outcomes including regulatory information sharing and automated risk
assessment and targeting will continue to be enhanced. By such processes, the ISF concept
will (has) become the regulatory/ industry norm in terms of data requirements and much of
this will be able to be enhanced and facilitated through single window(s). In this
perspective the work that FIATA does at the level of the World Customs Organisation is
second to none and continues providing invaluable information to members as well
contributing to shaping the Customs regulatory framework of modern trade. FIATA
remains engaged both in its own proper role and as a member of the Private Sector
Consultative Group.
It is extremely important that FIATA member associations and their respective members
are aware of these challenges for the future where changes in business models to flexibly
respond to regulators needs on advance information will meet not only advanced cargo
reports but enable earlier cargo clearance. Such will need investment in communication and
information technology as well as changes to traditional international air freight
forwarding process and business models. However, these changes will also provide
business opportunities.
So while in my opening comment that the year was more of the same, such is clearly not
the case. Things continue to evolve in trade and border compliance and FIATA is at the
forefront in representing its members as to these challenges.
In closing, my thanks to the FIATA Presidency and Administration for their support to the
Customs Affairs Institute over the year in review.
Stephen J Morris
Chairperson - Customs Affairs Institute
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MULTIMODAL TRANSPORT INSTITUTE (MTI)
As I write my third report as Chairperson of the FIATA Multimodal Freight Institute I am
aware that my opening comments seem repetitive, nevertheless it remains true that FIATA
has three excellent Chairpersons for the working groups (WG) and that my role is made
very easy due to their skill and diligence. Furthermore, if you read reports for consecutive
years many of the topics remain in place with only slow progress, but we continue to move
forward on all of the key issues that affect our industry.
Our meetings in Chinese Taipei at the 2015 FIATA World Congress and the Headquarters
session in Zurich earlier this year were extremely well attended and the best MTI events
that I have participated in. It is gratifying when so many people are taking tablet
photographs of our slide shows and giving us so many questions to deal with and this in
turn assists us in validating that we are on the right track.
Rail Our Rail WG highlight was successfully holding the 7th edition of the Market Place
Seminar in Antwerp on 24 and 25 September 2015. The conference was entitled “RAIL
CROSSROADS" and was opened by Mr Ivan Petrov, Chairperson FIATA WG Rail and
newly elected Senior Vice President of FIATA. He was delighted to welcome around 80
participants from various countries representing railway undertakings, terminal operators,
rail service providers, freight forwarders and customers.
Dr Francesco Parisi, Immediate Past President of FIATA welcomed the participants to this
“long-standing successful seminar”. He said that it is the major cooperative event between
FIATA and UIC. The constructive developments over the past year were significant, but
there is still potential for more projects in the future. He referred to the nine rail freight
corridors defined by EU regulation 913/2010 and mentioned that indeed, almost all
corridors begin and end in seaports. He felt that maritime traffic can generate the critical
mass that continental traffic is often lacking.
Regarding the Convention on International Through Railway Traffic, the Governments of
the Organization for Cooperation of Railways (OSJD) States recognised the importance of
developing international railway traffic, stressing the need to create a common railway
transport space in the Eurasian region, promoting an increase in the competitiveness of
transcontinental railway routes. The new Convention has been prepared during the last ten
years by OSJD, in cooperation with its member States. The aim is to replace the existing
SMGS agreement.
The railway freight corridor system in Europe is consistent with the financial budget that
covers the developments of the corridors. The European Commission allocated 26 billion
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Euros for the developments from 2014 to 2020. Now there are some attempts to match these
two corridor systems. In total, there are four EU corridors that will match with the OSJD
corridors. The Eurasian link will be a successful product as long as various operators will
share the market, not only one operator from China, Russia and probably from Germany.
Until two years ago the main focus of the activity of WG Rail was Europe however we have
enlarged the interest, especially to Asia. This is the consequence of the strong investment
plans of China and Russia to improve infrastructure, rolling stock and operations. From
this perspective I am happy to report the significant success of the seminar jointly
organised by FIATA and CIFA in Shenzhen, China which was amply covered in our
specialised reports.
We anticipate that the next two decades will see a tremendous growth in rail transport of
goods along the Eurasian rail networks for the benefit not only of the two extremes (China
and Western Europe), but most probably even more the economies and the populations
living in between.
It is the strong desire of our industry that a coordination between the decision makers of
Europe, Russia and China takes place to make sure that the corridors planned in the
different regions along the Eurasian connections meet and match in terms of capacity,
technology legal and Customs framework. OSJD and FIATA have signed a memorandum
of cooperation and have agreed to maintain cooperation in documents exchange,
establishment of joint working groups, joint organisation of workshops and conferences
and arrangements of collective events, recommendations, decisions and maintaining
control over the cooperation implementation.
Wagonload is of crucial importance to certain European industries and freight forwarders
and would like to have access to the services. In spite of its importance, wagonload is
declining and could disappear altogether in some European countries. This was one of the
main conclusions of the study on wagonload traffic in Europe carried out by PwC on behalf
of DG MOVE in 2014. CLECAT recall the urgency of taking action to prevent wagonload
services from further decline. While market-driven solutions are crucial, policy intervention
and support are also needed. In view of this, various associations have started an open
dialogue on the need to revitalise wagonload services.
On 15 February 2016 the TRAN Committee of the European Parliament received the report
of the Council's position at first reading on 4th Railway Package Technical Pillar, and in
particular on interoperability of the rail system within the European Union, railway safety
and the European Union Agency for Railways and repeal of Regulation. The technical pillar
should reduce costs, increase transparency and contribute to the creation of a single
European rail area. Members supported the Rapporteur’s recommendations to approve the
Council’s positions without amendment. However, some regretted the length of the
transitional periods and the Council’s reluctance to go further in strengthening the
17
Agency’s role. Others noted that the political pillar needed to be concluded before the
single rail area would make real progress.
FIATA and UIC concluded last year in Vienna that in order to increase the competitiveness
of international rail freight between Europe and Asia, FIATA and UIC see the need for a
consistent corridor management “from terminal to terminal”. Such Euro-Asian or Inter-
continental Rail Freight Corridors (IRFCs) might consist of different regional corridors (e. g.
Trans-Siberian Corridors and New Silk Way Corridor or European Rail Freight Corridors in
EU member states) to which different regulations apply.
Road Turning to the Road Working Group, our Chairperson for many years, Kostas Sandalcidis,
stepped down at the World Congress in Taipei. Kostas has been a magnificent Chairperson
and we wish him well for the future. He will remain an advisor on the WG. His place as
Chairperson has been taken by Tomas Suhanyi who gave an impressive debut performance
at the headquarters session.
Germany introduced a minimum wage of EUR 8.50 per hour which applies to German and
foreign operators performing transport activities on the territory of Germany including
international transport operations to and from Germany, and transit as well. The employee
receives the amount of EUR 8.50 for each hour of work on German territory whilst driving
and performing other activities recorded by the digital tachograph as work. This regulation
was not specifically created for international road transportation, but it applies for
Germany.
This National Regulation is unjustified and excessively burdensome as regards to
international transports, bilateral, transit and between the Federal Republic of Germany
and other countries. Therefore, an infringement process has been started by the European
Commission. The Commission should find solutions with respective governments. There
are serious problems with the application of the relevant law in practice. WG Road decided
to monitor all further developments. It was reported that the German authorities control
the application of this regulation, but fines were not imposed. The German Association for
Freight Forwarders and Logistics DSLV has published a position paper on social illicit,
illegal behaviour and distortion of competition in national and European road transport
traffic.
A number of practical problems have been raised by members as follows:
Turkey / Iran
An additional tax will be levied at the Turkey / Iranian border for transporting too much
gasoline in the trunks of the trucks. The WG felt that this is a bilateral problem and could
be solved easily and the World trade in not involved.
18
Refugees
Greece and Turkey are suffering from the refuges situation in their countries. The border to
Macedonia is closed and this situation has a huge impact to road transportation. The
industry has reported on the huge impact that the migrant crisis affecting the EU has had
upon the private road transport sector over the last year. The truck operators must
elaborate other routes with longer transit times and higher costs. Regrettably, the flow of
refugees from Syria to Turkey could not be stopped and the government asked for
assistance from the European Union countries.
The clandestine camp in Calais has been removed and the controls and inspections at the
channel are strict. We hope this will reduce delays when transporting cargo by truck and
ferry boat to the UK.
Road Crime
Every day all over Europe, truck drivers transporting loads of high value, theft attractive
cargoes are being forced to park in unsecured parking locations when they need to take
their mandatory rest breaks. This is one of the main contributing factors to the growing
number of cargo crimes involving truck-based thefts. It has been said that more incidents
caused in Germany than in Eastern Europe. Best practices to avoid these incidents are to be
vigilant when selecting carriers, ensuring partners maintain security protocols, GPS
tracking and a proper insurance coverage for all parties.
European Union
The European Commission intends to present its road package on market access, social
issues and enforcement in the coming year. The EU Commission is also considering the
Revision of the Euro-vignette directive and a proposal for a road agency to strengthen the
implementation of these rules. These initiatives will be bundled into a Road Package,
introduced by a Commission Communication and implemented step-wise over the coming
years.
TIR System - Situation of the TIR Carnet in Russia
Forty-Five Russian Customs posts along the borders of the Baltic States, Poland, Ukraine,
Azerbaijan, Georgia and Mongolia have started to accept the carnet TIR again, according to
the International Road Transport Union (IRU). However, it has been reported that
occasional problems with TIR processing at some Customs posts could crop up. Russia
unilaterally broke the international agreement when it ceased to accept the carnet TIR at its
Customs posts in July 2013. The number of issued TIR Carnet in Russian traffic dropped
dramatically.
TIR – Expansion
China
FIATA has been informed that China has finalised the TIR accession process.
19
Pakistan
Pakistan acceded to TIR Convention which came into force on 21 January 2016. They will
finalise the procedure within this year. IRU reported that the TIR Carnet is not permitted
on all border points. At the beginning, this will start with the import cargo traffics. Once
TIR is operational, Pakistan will be better plugged in to the global economy and well placed
to promote regional development and integration, especially along the regional trade
corridors.
United Arab Emirates
IRU has been working towards making UAE TIR operational in 2015. Successful workshops
towards a TIR implementation were held in the UAE. It was confirmed that all seven
Emirates agreed to start with the process. When UAE is fully operational, IRU expect a
tremendous increase of traffic from Bandar Abas, Iran and the ports in UAE.
An expansion to Oman is under discussion.
eTIR pilot
IRU and UNECE finally agreed at high level and technical level to work together to achieve
a concrete pilot project. Two eTIR pilot transports, using fully digital TIR processes, were
successfully completed for the first time ever earlier this month. Now proven, eTIR is ready
for full implementation, set to reduce international transit costs and increase security.
Maritime Transport
Finally, we turn to the Working Group Sea Transport where Jens Roemer has had the
unenviable task of being in the Chair while the amendments to the SOLAS Convention
have taken effect.
Container Weighing - IMO Safety of Life at Sea (SOLAS) Regulation
FIATA has been providing updates on this topic for the past three years. At its 94th session
IMO’s Maritime Safety Committee has adopted the amendments to the Safety of Life at Sea
(SOLAS) Convention (Chapter VI, Regulation 2 and associated guidelines) that will
introduce a mandatory requirement for the certificated verification of container weights
prior to loading on board of a vessel. The amendments will entered into force in July 2016.
Whilst SOLAS refers to Safety of Lives at Sea, the amendment has a serious impact on
operational practices between various parties involved in the supply chain on shore. The
WG does not think that any other party would have been better positioned to comment on
various on shore practices than FIATA and the Freight Forwarding industry.
Unfortunately, FIATA has no status with the IMO so we cannot attend consultative
meetings. Our lobbying activity was limited to written submissions and it is clear that the
input of the forwarding sector could have assisted the IMO in understanding procedures
across the supply chain.
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The Working Group has created a comprehensive document looking at the SOLAS
amendment from the Freight Forwarders point of view with the objective that the various
FIATA members can use the document as a reference for their discussion on national level.
This document has received a lot of attention and has been appreciated by our members.
On July 1 the SOLAS amendment became law and it will be illegal for shipping lines to ship
a container without a valid VGM. However, many questions still remain unanswered and
there is widespread frustration about lack of information from key parties such as shipping
lines, terminals and government agencies.
C-TPAT (Customs Trade Partnership against Terrorism) and AEO Regimes
Various AEO (Authorized Economical Operator) schemes have been implemented and
mutual recognition is developing. Only recently, in November 2015 the mutual recognition
between China and the European Union came into effect. Unfortunately, in many countries
certified Freight Forwarders still lack advantages related to the status. The European
Customs Code which will be introduced as of May 2016 caters for benefits related to an
AEO certification. However, often common benefits of the past are now linked to an AEO
certification.
Changes to the FMC’s OTI (Ocean Transport Intermediaries) Regulations
In 2013 the Federal Maritime Commission published an Advance Notice of Proposed
Rulemaking (ANPRM). Comments were almost uniformly negative and also TIA and
FIATA strongly objected the approach. In October 2014 The Federal Maritime Commission
published a Notice of Proposed Rulemaking (NPRM). This new proposal would eliminate
or reduce the burden of many of the proposals in the previous Advance Notice of Proposed
Rulemaking (ANPRM). Our US colleagues from TIA have lobbied on behalf of our
industry, with FIATA further supporting and endorsing their view. Above all TIA
questioned the utility and necessity of additional claims reporting and license renewal
requirements, as well as attempts by the FMC to increase regulation of agents of freight
forwarders and NVOCCs. The WG wishes to remind all members that the US has strict
rules related to NVOCC activities that are controlled by the FMC in their Ocean Transport
Intermediaries (OTI) legislation. Among others, it requires registration with the FMC as
well as the filing of tariffs.
Rotterdam Rules
Will the Rotterdam Rules ever enter force? The position has remained static for a couple of
years now and it seems unlikely there will be further progress however the working group
will continue to monitor any developments.
WG Sea wishes to thank countries that host their meetings. Such meetings give the host
country an ideal platform to represent themselves as well as FIATA to the local business
community and to local officials.
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Chairperson’s Conclusion In conclusion I always ask for feedback on the work we undertake and suggestions from
FIATA Members. I really enjoyed talking to the RAME meeting in Taipei last September
and look forward to seeing you all in Dublin. I am particularly keen that we do more to
promote that great Continent so contributions for the headquarters session next year will be
welcome.
Robert Keen
Chairperson - Multimodal Transport Institute
ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA)
The Advisory Body International Affairs (ABIA) celebrates its second anniversary. In this
short time span, the body has tried to add to FIATA’s visibility and presence with several
relevant international and multilateral organisations highlighting the importance of
“Logistics & Connectivity” in achieving economic and sustainable growth on a global scale
Working with the UN, ABIA delegates have attended a number of high level meetings
ranging from the 2015 UN High Level Political Forum and 2015 UN Leaders’ Summit in
efforts to highlight the important role logistics connectivity will play in achieving the
recently struck 17 Sustainable Development Goals and 169 targets. In addition to our
participation, we have released strong positions on the need to include the logistics and
freight forwarding industry into the sustainable development, as such FIATA being the
natural interlocutor with Member States which would bring about collaboration and
positive change. The logistics’ industry had been left out in the 2000 discussion for the
Millennium Development Goals (MDG) resulting in lack of implementation. This year, the
SDG bear logistics within a number of goals and targets which will instigate pro trade
policies and investment into infrastructure to realise many of the SDGs.
To strengthen ABIA’s advocacy efforts towards
the UN, ABIA was also invited to join two
leading private sector partnerships, the Global
Partnership on Sustainable Partnership (GPST)
and the Global Business Alliance (GBA). Both
partnerships aim to give space to private sector
interventions at UN High Level meetings to
ensure that global policies are aligned with
business interest. Without such interventions, states risk enacting policy that leave behind
private sector, which will ultimately be asked to cope with environmental changes. We are
already seeing member states considering a more exclusive track for business participation
separate from civil society to ensure their voice is heard.
“ABIA has an obligation to
connect at the international level
if we are to influence meaningful
change throughout the logistics
industry..“
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In addition to work with the UN, ABIA has also strengthened ties with the World Trade
Organisation (WTO). The WTO Trade Facilitation Agreement (TFA) which was struck in
2013 in Bali has made great headway and is now seeking ratification from 2/3 of the
Member State constituency. ABIA organised a site event held at the 2015 WTO Public
Forum aimed at highlight the important role of private sector’s engagement in the TFA’s
ratification and post implementation process. The event, moderated by the ITJ, headlined
panellists from the ICC, WTO, WCO, UNCTAD, ICC and FIATA creating for an interactive
and thought provoking debate. At the end, it was clear that private sector had a role to play
and needed to be present at every stage of the TFA implementation, a concept that runs
along the lines of the much appreciated FIATA’s position paper on the National
Committees on Trade Facilitation’s creation.
ABIA has also extended its work with the Asian Development Bank (ADB). Following their
participation at the 2015 FIATA World Congress in Taipei, the ABIA Chair participated in
the ADB’s CAREC First Meeting Railway Working Group. The focus was a workshop to
improve infrastructure developments on six key corridors in the Central Asia Region.
FIATA’s input helped delegates to endorse the Strategy’s vision ‘for railways to become a
mode of choice for freight traffic in CAREC countries by 2030’. Our positive participation in
the CAREC meeting has produced additional collaboration opportunities. Following the
meeting in Shenzhen mentioned in the MTI report, FIATA looks forward to a continued
cooperation with the ADB in the areas of logistics investment and trade facilitation.
Our efforts were not only limited to the ADB, collaboration with other multilateral banks
include the World Bank (WB) for which FIATA launched its annual survey which
contributes to producing the WB’s Logistics Performance Index which as just be officially
published.
Our most recent event at the International Transport Forum hosted in collaboration with
CLECAT, ESC, IRU, Smart Freight Centre aimed to explore opportunities for collaboration,
clearly articulate how these can be realised in practice. Private Sector wants to work with
governments to play their part in helping to overcome market and policy barriers to
accelerate innovation.
In addition to the advocacy work on logistics connectivity, as sustainability becomes more
of a key focus throughout international forums, ABIA has contributed to UNCTAD’s Multi-
year Expert Meeting on Transport, Trade Logistics and Trade Facilitation with input on
freight transport’s role in the upcoming climate change agreement and SDGs in addition to
contributions to UNECE’s High-level International Conference Unlocking the Economic
Potential for Sustainable Development The Role of Trade with a letter to the Chair
accompanying FIATA's Five Key Statements (published on www.fiata.com).
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We very much appreciate the support from FIATA’s membership and we look forward to
dealing with the upcoming challenges with their continued support.
Babar Badat
Chairperson - Advisory Body International Affairs (ABIA)
ADVISORY BODY INFORMATION TECHNOLOGY (ABIT)
I am very pleased to have the opportunity to write ABIT’s second Annual Report on our
recently established Advisory Body Information Technology (ABIT). In our only second
year, the ABIT agenda generated an array of different topics from practical projects to
standard setting initiatives.
Within the field of IT standards, FIATA was invited to participate in a recent initiative
that has been undertaken by the European Union in consultation and collaboration with
industry representatives to work towards a connected digital single market. The
Commission had set up a Digital Transport and Logistics Forum (DTLF) which entails a
plenary and technical Working Groups (WG) to tackle topics such as interoperability,
data protection, recognition of documents, data sharing, single window and many
others to achieve a more connected digital environment. FIATA’s advisory bodies and
institute have been engaged in providing input to the DTLF in addition to ensuring that
the other freight forwarding members in the DTLF (10, among which TLF, CLECAT,
FENEX, UPS, DHL, etc.) are aligned in a common voice when submitting input.
In addition, ABIT continued its work on the Multi-Modal Transport (MMT) project which
has progressed a step further in providing a professional structured database and not only
a dictionary on an Excel sheet that would make standards less generic and more flexible to
implement. FIATA members have been welcomed to contribute to the work that is
currently being conducted with a view to completing the project by end of 2016. ABIT has
also continued its contribution towards the Trusted Trans-boundary Project and followed
their participation by inviting UNECE’s Chief of Trade Facilitation Ms. Maria Ceccarelli to
debrief FIATA members on the project’s relevance to the industry.
Additional projects followed by ABIT with CEFACT United Nations Transport / Logistics
standardisation in the margins include:
- VERMAS (Verified Gross Mass) for containers to comply with IMO directive (reference
to SOLAS) for application by July 2016 with EDIFACT then XML (already proposed by
INTTRA).
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- Another project is the SeDAP (Ship e-Documents Access Project) providing electronic
access to certificates and documents required on board of vessels which would
ultimately lead to facilitation of maritime logistics with agreement from IMO.
- In addition, there was a review of e-BOD for Logistics: electronic Bill of Delivery
(multimodal transport).
On standards issues, FIATA has never been more engaged and the capacity to attract input
from the industry is critical to ensure that our industry’s daily operational procedures are
taken into consideration in each standard.
Within the field of practical projects: ABIT’s commitment is to investigate practical IT
projects which include both software and hardware that can greatly enhance the
efficiency of our industry and ensure sustainable transport networks.
The year was also a great achievement for practical IT projects. At the 2015 FIATA World
Congress that was held in Taipei, FIATA signed a Memorandum of Understanding (MoU)
with the highly reputable US based Transport Management Solutions (TMS) provider
MercuryGate. The MoU allowed FIATA members to implement a base package of their
TMS solution for a very small one-time start-up fee inclusive with training. The cloud based
service provider with customers around the world would help mitigate risk for FIATA
Members and be more efficient for example identifying which carriers sail out of which
port.
ABIT is also actively monitoring a pilot project between a technical vendor EDI Kale
Logistics and FIATA’s Thai International Freight Forwarders Association (TIFFA). The pilot
project utilises Kale’s Logistics EDI system to facilitate the electronic data exchange
between forwarders and airlines. Currently, there have been approximately 30,000 EDI
messages for 4,400 shipments. There has also
been additional interest shown by 10 other
Association Members with 3 potential trials to
start this year.
FIATA’s ABIT is also still working closely with
our technical partner essDOCS to offer a
platform called CargoDOCS which houses the
electronic exchange of FIATA’s Electronic Bill of Lading (e-FBL). There has been additional
interest from FIATA’s membership to have an electronic version of the FBL on the market.
We look forward to working with essDOCS and developing the project further throughout
the year with the aim of producing successful cases throughout the entire supply chain.
Overall, ABIT is working to raise the profile of our industry’s input into technical projects.
A recent example includes our participation in the SITL Europe event in Paris in which we
“ABIT has witnessed a growing
demand for IT solutions from
FIATA’s membership and will
this year aim to assess further
solution providers.”
25
highlighted some of the technical projects we are involved in and emphasised the
importance to include the freight forwarding’s perspective in the development standards.
Last year, ABIT has witnessed a growing demand from FIATA’s membership to have IT
solutions made available to them. This year, ABIT aims to assess further solution providers
that could add tangible value to members. Our goal within IT practical projects is to offer
an array of options for our small and medium members at reasonable prices.
The recent two FIATA sessions, 2015 World Congress and 2016 HQ Session, where great
opportunities for ABIT to showcase some of its work this year, but also gain an
understanding of our membership’s needs. There is a shift happening in many industries
and this shift is due to the ever changing technical landscape. Therefore, ABIT must play its
part in ensuring that logistics remains on top of the changing landscapes and early adopters
of technical solutions. We must also be the voice to ensure that industry practices and value
added services are taken into consideration throughout the development of technical
standards
We very much appreciate the support from FIATA’s membership towards the newly
established ABIT and thank all who have assisted in its work. We look forward to
continuous growth throughout 2016 and 2017 by improving the benefits for FIATA
members.
Anne Sandretto
Chairperson - Advisory Body Information Technology (ABIT)
ADVISORY BODY LEGAL MATTERS (ABLM)
IATA-FIATA Air Cargo Program (IFACP)
ABLM assisted FIATA’s Air Freight Institute in reviewing the terms of a joint governance
proposal between the International Air Transport Association (IATA) and FIATA. The
proposal, which AFI negotiated with IATA to modernize the existing air cargo agency
program, would recognise that forwarders are no longer agents of the airlines, but are
instead their customers. Acting on advice of outside competition law counsel, ABLM
advised the AFI leadership and Presidency on steps needed to make sure that the proposed
agreement complies with competition law, and that FIATA retains the ability to advocate
for its members on competition compliance issues related to administration of the Cargo
Accounts Settlement System (CASS) by the airlines. The negotiations initially led to a
disappointing impasse over the airlines’ insistence that use of CASS should be made
mandatory as a condition to a forwarder’s participation in the new program. However,
ABLM helped AFI propose a compromise solution satisfactory to both sides, and
26
agreement was reached in June, 2016 at a special meeting of the IATA-FIATA Consultative
Counsel. Forwarders participating in CASS will be grandfathered into the new program,
but retain the right to agree on separate bilateral billing and payment terms with an airline,
if the forwarder and airline choose to do so. As the program is rolled out by country or
region over the next two years, IATA and FIATA will jointly oversee a legal review of the
local financial criteria for participation in the program, to be performed by independent
competition law counsel, familiar with the local rules applicable to the program, before it
becomes effective. Any changes needed will be made by an IATA/FIATA Governing Board
on which IATA and FIATA will have equal representation.
Fraudulent activity involving FIATA Multimodal Transport bills of lading
Cases are being reported, both directly to FIATA and to the national associations, where the
FIATA Multimodal Transport Bill of Lading (FBL) has been fraudulently issued, either by a
party not authorized to issue FIATA transport documents or by a party pretending to be
authorised. The FIATA Presidency asked the ABLM to develop a recommendation for
mitigating the fraudulent use of the FIATA FBL. A core feature of the recommended
solution should be the mitigation of potential liability to FIATA and the Association
Members arising from the fraudulent issuance of documents bearing FIATA branding. The
ABLM has formed a joint working group with the Advisory Body Information Technology
and asked the group to present a recommendation for presentation to the Presidency. The
working group is considering the creation of a simple, voluntary registry through which
banks and parties to a commercial transaction could verify the authenticity of a FBL issued
by a forwarder belonging to any of the FIATA national associations. An initial forwarder
survey will be conducted to document the business case and to determine how such a
solution might fit with existing forwarder work flows without adding costs or delays.
Trade financing institutions will also be surveyed. Based on the results, it is expected that
proposals for the registry then will be solicited from a range of vendors.
A related problem is the use of the FBL form by software vendors who do not always verify
that the forwarder purchasing the software is authorised by its national association to issue
the FBL. Steps are being taken with the assistance of the Secretariat to notify vendors that
unauthorised issuance of the FBL using their systems would violate the copyright and
licensing agreements for the FBL.
UNCITRAL Working Group on Electronic Transferable Records
The ABLM Chairperson represented FIATA at the penultimate meeting of the UNCITRAL
Working Group on electronic transferable records held in New York May 9-13. The model
law being produced by the Working Group will promote the use of electronic bills of lading
by setting uniform international standards for their reliability and recognition. On behalf
of FIATA, and at UNCITRAL’s request, the Chairperson hosted in New York a pre-
conference meeting of 15 international legal experts who have been the main drafters of the
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model law. Two of those experts, from Spain and Sweden, have agreed to serve as co-
opted experts to the ABLM in developing the FBL fraud prevention registry concept
described above, and in the ongoing effort to create an easily usable electronic FBL.
Regional Reports
ABLM received reports on legal developments from several regions. For example:
DSLV publishes German freight forwarders’ conditions 2016
German Association for Freight Forwarding and Logistics (DSLV) published the new
version of the most commonly used general conditions in Germany, the Allgemeine
Deutsche Spediteursbedingungen (ADSp 2016). DSLV recommends the use of the new
ADSp as of 1st of January 2016. The ADSp 2016 have been modernised and adapted to the
existing legislation and recent case law as well as current developments in freight
forwarding practice. Although the associations of shippers have opted out of the process of
publishing joint conditions, DSLV ensured that the modernised ADSP strike a balance of
interests for both sides of the market.
Standard Trading Conditions: China
The China International Freight Forwarders Association (CIFA) published Standard
Trading Conditions (STC), but the business and legal conditions have changed, requiring
them to be updated. CIFA set up a special expert working group to elaborate on the new
STC with the assistance of TT Club Hong Kong and China Maritime Arbitration Committee
(CIMAC). Their work was finalised in March 2016 and has been made available on their
web site.
Non-collection of goods by a consignee
ABLM’s risk management committee reported that the rejection or non-collection of goods
by a consignee is a growing problem world-wide. Frequently it leads to a situation where a
freight forwarder is found liable for payment of demurrage and other costs – such as
storage charges - connected with non-collection of the goods by a consignee. Precautions to
avoid this liability were suggested by the insurance experts and ABLM representatives
from Poland and elsewhere.
ABLM covered a very broad variety of subjects during the past year, and the ABLM
members deserve thanks for their active and hard work.
Richard Gluck
Chairperson - Advisory Body Legal Matters (ABLM)
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ADVISORY BODY SAFETY AND SECURITY (ABSS)
There has been a number of interesting security topics in the past year which ABSS has had
on its agenda, with several being challenging to our industry. One particular area that has
seen a lot of activity is the area of dangerous goods for which ABSS has been keeping a
close eye on developments and communicating consistent updates to FIATA members.
At the recent 2016 FIATA HQ Session in March,
ABSS advised members that due to issues of
counterfeit and undeclared batteries coupled
with the backing of FAA and IATA led to
Lithium Ion cells and batteries becoming
forbidden for carriage on passenger aircraft
(PAX). Taking this information, ABSS
challenged the industry’s decisions by asking whether the ban really addressed the real
problem. Examining the ban reveals that the impact may not be so great as many airlines
had already banned lithium-ion batteries from PAX aircraft and the prohibition does not
apply to lithium-ion batteries packed with equipment, or contained in equipment. In
addition, while bulk shipments will not be allowed in passenger aircraft, items such as
computers and phones can still be shipped with batteries included. It was clear that
Lithium Battery security would be an ongoing topic and we must do our part in
highlighting what global forwarders can do to protect aviation from badly
manufactured/packaged, counterfeit and wrong/undeclared lithium batteries.
The topic of e-Security Declaration (e-CSD) came under the radar in 2015/2016. In the past,
there were no harmonised formats for security declarations with the AWB being misused
as a security declaration. As a consequence industry had to deal with hundreds of co-
existing standards, which led to confusion, process insufficiencies and errors. As a reaction,
the IATA Cargo Service Conference mandated the use of CSD/e-CSD by IATA members.
Following this recommendation industry is encouraged to establish CSD/e-CSD capabilities
in ICAO member states where a secure supply chain regime exists. In response, ABSS
launched an initiative to gather information to highlight which air cargo security systems
are already in place in which countries and what the experiences of freight forwarders
operating under this system. FIATA has already stated that they endorse the adoption of e-
CSD and with further information will aim to strengthen its position in the coming year
with backed research.
With the political landscape changing and the threat of terrorism attacks on the horizon, the
past year also drew up concerns of territorial control against a backdrop on the subject of
mutual recognition. Examples have risen all over the world starting with Australian having
implemented prohibitions on the carriage of air cargo originating from, or transiting
through, Egypt, Syria, Bangladesh, Yemen or Somalia. Early this year in January, the TSA
"Excellent opportunity for
logistics to work with
international institutions in
providing relief assistance.“
29
issued a security directive restricting the transportation of cargo associated with Egypt,
Somalia, Syria or Yemen. Effective immediately, all shipments tendered for entering the
USA must be accompanied by appropriate documentation. In addition, there is an ongoing
security issue in Indonesia whereby the Indonesian Directorate General of Civil Aviation
(DGCA) urged airlines to move screening of air cargo from “Line 1” (at the airport, either
airside or on the airside/landside border) to so called “Line 2” (landside and off the airport
environment) despite industry stakeholders such as IATA and FIATA, raising concerns
regarding the potential for unsecured supply chains from the point of Line 2 screening until
it reaches the aircraft. Finally, there are the terrorist attacks which have caused partial
border closures. With the increasing examples of territorial acts this past year, the question
lies, is there more to be expected. In response, ABSS will continue to monitor such acts and
highlight to appropriate authorities the need to balance security and facilitation.
Last year FIATA got involved in a global initiative aimed to provide advance information
to customs for air cargo shipments. The Joint Working Group on Advance Cargo
Information (JWGACI) consisting of WCO and ICAO, have worked to find a viable solution
on the topic of Pre-Loading Advanced Cargo Information (PLACI) which is an additional
layer of security risk assessment to detect high-risk cargo by analysing consignment data
provided to Customs early in the air cargo supply chain. There were pilots being conducted
in the U.S, Canada and the EU. The stakeholders include Customs, aviation security
regulators on one side and air cargo industry stakeholders on the other. FIATA continues to
foresee this subject being relevant for some time to come as differences are managed to
result in a global and standard approach while allowing business to continue and grow.
At the 2015 FIATA World Congress in Taipei, ABSS invited Mr Gary Bukowicki, Executive
Director of G4S Security Systems (HK) Ltd to highlight some of the pitfalls of physical
security especially pertaining to CCTV and alarm configurations. He advised the
importance of installation work throughout his presentation by providing examples of poor
installations resulting in potential security breaches. It was an interactive dialogue between
the presenter and delegates in attendance as they consulted his input on their own personal
experiences where security had been issue. Strategic controls had also been a topic of
interest with FIATA Immediate Past President highlighting the need to mitigate risks,
improve due diligence and comply with global security when exporting goods. He listed
some of the common pitfalls one in particular was the lack knowledge of such export
controls.
An interesting opportunity arose early 2016 following up on the participation of Dr Ian
Norton, WHO, at a previous ABSS HQ meeting. FIATA received an invitation from the
FAO, OIE and WHO to collaborate in regards to transport regulations as they relate to the
prompt transfer of infectious substances and biological material. This is an excellent
opportunity for logistics to work with international institutions in providing relief
assistance.
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Concluding this report, I wish to thank the members of ABSS who willingly dedicate their
time to provide consistent feedback and input on related matters which affect our industry.
We look forward to future challenges in full assurance that ABSS, supported by the
Secretariat, and our members can continue to strive and enhance the safety and security of
our industry.
I therefore look forward to seeing you in Dublin and can assure you the high level of, and
exciting presentations and speakers which ABSS has become known for, and which will
continue well into the future. See you all in Dublin!
David Fielder
Chairperson - Advisory Body Safety & Security
ADVISORY BODY OF VOCATIONAL TRAINING (ABVT)
Overall, 2015 was a pivotal year in the development of Training and Education at FIATA.
With the FIATA Minimum Standards in Freight Forwarding being updated, the Advisory
Body Vocational Training (ABVT) encourages every association member to validate
training programmes and enhance education in the freight forwarding industry in a
sustainable manner. The ABVT will spur new strategies to provide greater incentives for
validation of training programmes worldwide – all designed to give developing countries
more opportunities to develop education in Freight Transport and Logistics. The ABVT will
channel different working groups to achieve said strategies and will accomplish them with
innovative approaches.
Currently, the Validation/Re-Validation Working Group has qualified 56 programmes in 53
countries to issue the FIATA Diploma in Freight Forwarding with 38 running programmes,
and 15 programmes in 13 countries to issue the FIATA Higher Diploma in Supply Chain
Management. Additionally, 225 qualified trainers have successfully completed a “Train-
the-Trainer” course and have received the FIATA Trainer Certificate in all 4 FIATA
Regions. These records signify a positive advance in building up trainer pools in those
certified countries. This trainer-numbers is increasing as more trainers realise the benefits
towards structured pedagogical and andragogical aspects of planning, developing,
executing, assessing and evaluating training and learning as a standard ABVT continually
promulgates.
FIATA Validation of Training Materials – The ABVT’s Validation/Re-Validation
Working Group met at the 39th Validation Session in March 2016, within the framework of
the FIATA Headquarters Session, to successfully validate and revalidate Training
Programmes conducted by FIATA Association Members around the world. Those
successful in their validation or revalidation included The Shipping and Forwarding
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Agents Association of Zimbabwe - SFAAZ – (Zimbabwe), Bulgarian National Freight
Forwarding Association –NSBA – (Bulgaria), Canadian International Freight Forwarders
Association – CIFFA – (Canada), The Association of Logistics and Freight Forwarding of
the Slovak Republic –ZLZ (Slovak Republic), and Association of transport forwarding and
logistics organisations of Ukraine - UZT - Ukraine.
Awarding of FIATA Diplomas – 2015/2016 has been another fulfilling year for ABVT.
From 1st of January 1996 to 14th of March 2016 a total of 11'954 FIATA Diplomas in Freight
Forwarding have been issued. Top ten countries in terms of number of issued diplomas
include: France (1328), Singapore (722), Islamic Republic of Iran (718), Poland (658),
Ukraine (600), China (550), Kazakhstan (542), Ireland (498), Ghana (432), and Canada (432).
Young Logistics Professionals Day at FIATA World Congress – The Chinese Taipei
Congress was quite unique in its focus on young professionals in our industry. The ABVT
collaborated with the congress organisers to organise a day devoted to provide policy
advice and knowledge to the youth. The programme included Prof. Charles H. C. Kao
whom presented the topic “Join the World and Principles for Making an Open Society”. Then,
Dr Weng Kun Liu talked about new trends of industrial-academic cooperation in
international trade. Prof. Chin-Shan Lu explored the topic of shipping dynamics and
sustainability. Mr Stanley Lim envisioned the Singaporean Perspective on Young Logistics
Professionals. The forum also featured Prof. Ching-Fong Chang with a presentation on the
cultivating the competent.
ABVT Forum – The 8th ABVT Forum featured at the FIATA World Congress 2015 was
devoted to local experiences and practices on vocational training and education. The special
guest this year was Mr Schnell Jeng, Executive Director of the TAIPEI AIRFREIGHT
FORWARDERS & LOGISTICS ASSOCIATION OF TAIWAN – TAFLA. His presentation
about the “Vocational Training in Taiwan and its Contribution to Society” provided a vast
knowledge and innovative information.
FIATA/TT Club Young International Freight Forwarder of the Year Award (YIFFY)
Award Competition 2015 - During the World Congress in Chinese Taipei in 2015, the
President of FIATA, Mr Francesco Parisi, and the Chairperson of the Steering Group of the
Award, Mr Michael Yarwood, TT Club, were happy to welcome and award the four
regional winners.
The 2015 Regional Winners were:
Africa/Middle East: Mrs Daniela Smal (Zambia)
Americas: Mr Kaya Karakaya (Canada)
Asia-Pacific: Mr Madi Kassabekov (Kazakhstan)
Europe: Ms Jeni Taylor (United Kingdom)
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Thanks to the determined and dedicated YIFFY Steering Group the award has been
strengthened and new mechanisms have been set in place to ensure that the development
of knowledge and expertise within FIATA is promoted around the globe. One of the
promotional projects involves social media. The Steering Group has interviewed past
winners to feature these interviews and videos in the several channels. Several changes in
the award statutes have been also adapted to improve the award. These include that in the
event that the regional winner cannot attend the World Congress and every effort will be
made to ensure that participation can continue via video link. Also, the deadline was
amended to 31st of January for Association Members to nominate participants.
In 2016, 17 dissertations were received from all 4 FIATA Regions. The overall winner will
be announced at the FIATA World Congress 2016 in Dublin and as a prize the winner will
receive a week’s training at one of TT Club's regional centres in London, Hong Kong or
New Jersey, as well as attendance on the Thomas Miller "Insight into Transport Law and
Insurance" course in London, in which TT Club is closely involved. All four winners will
also receive a subscription to one of the industry’s leading media information sources:
International Transport Journal (ITJ/ITZ). Part of the prize is also the
complimentary invitation to the FIATA World Congress for four regional winners.
FIATA Higher Diploma in Supply Chain Management (FHDSCM)
ABVT Validation Committee is ready to validate programmes of the FHDSCM. It is
strongly recommended that applicants for this qualification should be in possession of the
validated and current FIATA Diploma Programme before enrolling and applying for the
FHDSCM. Association Members from Singapore, France, Ukraine, Belarus, Kazakhstan,
Russian Federation, Vietnam, Ghana, South Africa, Egypt, Nigeria, Chinese Taipei, and
Pakistan have successfully validated their programmes. A total of 113 FIATA Higher
Diplomas have been issued.
Trainer Certification
The ABVT is also pleased to announce that 225 FIATA Trainer Certificates have been
issued. So far, trainers were certified in the following countries: Ukraine (31), Malaysia (39),
Belarus (1), South Africa (8), Ghana (10), Kazakhstan (12), India (1), Syria (1), Chinese
Taipei (35), Vietnam (18), Chile (13), Brunei Darussalam (1), Myanmar (1), the Philippines
(5), Singapore (4), Cambodia 4), Thailand (8), Zimbabwe (32).
ToT courses support the development of leadership, career structure, critical mass,
infrastructure, information access and interfaces between instructors and learners. The
success of efforts to build capacity in developing countries can be measured by the amount
of successfully validated programmes of countries that have received a ToT. An excellent
recent example of this success includes Zimbabwe (SFAAZ) where a ToT was conducted in
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2015. Working together the ABVT and SFAAZ promoted a sustainable training programme
providing new opportunities for students in Zimbabwe. Association Members of FIATA
are encouraged to seize the moment and validate their training programmes. Those in
developing countries can apply through the FIATA Foundation for a ToT that will cover all
14 Minimum Standards in Freight Forwarding.
Future Directions of the ABVT – The ABVT provides the international community with
knowledge in Supply Chain Management, Logistics, Freight Forwarding, and all related
topics through the appropriate tools, guidelines and instruments. To maintain and
consolidate its intellectual leadership in capacity building, the ABVT is:
- Developing toolkits and guidance on e-Learning training methodologies to support
Association Members willing to use new educational technologies
- Updating the FIATA Minimum Standards in Freight Forwarding and the FIATA
Minimum Standards in Supply Chain Management (Higher Diploma) to make sure
that relevant world topics are considered and to give a higher profile to its Minimum
Standards.
The ABVT will continue to collaborate with other FIATA entities such as the FIATA
Logistics Academy. Jointly these two entities will feature a Training and Education Session
at the FIATA World Congress 2016 that strengths, expertise, and resources at FIATA are
leveraged to help Association Members make a real impact on education—by driving
growth, promoting inclusiveness, and ensuring sustainability.
Thomas Sim
Chairperson - Advisory Body Vocational Training
FIATA FOUNDATION for VOCATIONAL TRAINING
The FIATA Foundation is now in the final stage of the Train-the-Trainer course planning. A
Pre-Qualification Evaluation was held in Casablanca between 19th and 23rd of December
2015, where the competencies and English skills of 29 participants were evaluated. The
examination of their English knowledge to reach the teaching targets as per the FIATA
Minimum Standards showed a certain weakness. Therefore, the FFVT decided to translate
the training material including the examination scripts from English to French. It is
foreseen that the TOT will be held in Casablanca in September 2016. Further information
will become available at a later stage.
A Train-the-Trainer course in Cameroon is still being planned and a Pre-Qualification
Evaluation will be organised as soon as the FFVT has all necessary documents on hand.
The Foundation finished the work on its new website and launched it in March 2016. The
new FFVT website can be visited on www.fiatafoundation.com
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The Foundation takes the opportunity to warmly thank its regular sponsors and all those
FIATA Individual Members which have voluntarily increased their annual membership fee
by an optional donation of Swiss Francs (CHF) 25 towards the Foundation’s initiatives. A
large number of the members have chosen to donate this way.
During the World Congress in Dublin/Ireland, the Foundation will again organise its
traditional fundraising raffle. Raffle tickets can be purchased in advance via the registration
form.
Aldo Da Ros
President of the FIATA Foundation
FIATA LOGISTICS ACADEMY (FLA)
No matter where one turns these days, it is VUCA everywhere - so what is VUCA? It Is a
trendy managerial acronym: VUCA - short for Volatility, Uncertainty, Complexity, and
Ambiguity.
And so the question: What has VUCA got to do with Training & Education? Professor
Ferdinand Reimers at Harvard University explained it the best - at least to me:
"The field of Training & Education has not been immune to turbulence, with rapid changes taking
place both inside and outside traditional educational systems: the advent of customized, worldwide,
online, for example, seems to make the boundaries of school buildings and even nation-states
permeable; the idea of competency certification in education introduces new possibilities into a
system largely driven by automatic promotion based on age; and the need to "learn to learn" and the
demand to provide an education relevant to student's lives are more pressing than ever in the face of
rapid change around the globe".
And it is this same pressure towards change that made the FIATA Presidency launch the
FIATA Logistics Academy (FLA) at the FIATA World Congress in Istanbul in 2014. Today,
in less than 2 years, FLA has been able to associate itself with the top Universities and
Institutions to bring to it FIATA’s membership these versatile on-line courses that are
second to none both in soft and technical skills.
The University Alliance which makes up 13 Universities also houses the Michigan State
University (MSU) with its world renown Supply Chain and Global Logistics Management,
edX comprises Harvard, MIT and 34 other international Universities from all over the
world offering free on line courses, Open Sesame with Ethics, Anti-bribery and Anti-
corruption business skill courses, diplomacy courses by the United Nations Institute for
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Training and Research (UNITAR) and the handling of lithium batteries by CIFFA in
Canada. Within this short span of time, FLA is set to pursue its goal to continue rolling out
new courses every month with the vision to become "One knowledge Source for Global
Logistics". Of utmost importance for the FLA ‘s success is its composition made up by
passionate professionals of FIATA Secretariat staff, FLA Mentors and FLA Steering
Committee Members.
Part of the FLA's focus in 2015 has been the promotion of its existing learning offerings
through several channels including social media, its website www.fiatalearning.com,
FIATA's available media resources and through the conduction of roadshows and
informative sessions across all FIATA Regions to enlighten the interested public.
Roadshows are organised in conjunction with Association Members and are aimed at
promoting FLA’s course offerings and disclose career opportunities through the use of
Talent Connect, the CV platform. Roadshows have been conducted in Dubai, Addis Ababa,
Mombasa, Barcelona and further ones are planned.
Another focus area has been analysing what Association Members and the industry need
and catering at those needs. And so FLA is now developing a learning management system
to have a technological platform equipped with all necessary functions and features to host
FLA created courses linked to the FIATA Minimum Standards in Freight Forwarding.
Also important to mention is the quality of speakers and topics of interest that FLA has
brought to FIATA World Congresses and Headquarter Sessions. For example, Dr Frayer
from MSU was invited to speak about the future of learning in what was rated as a very
successful and relevant intervention. FLA is just starting and the industry can expect a
positive revolution in education.
Issa Baluch
Chairperson - FIATA Logistics Academy
WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL)
FIATA’s newly founded Working Group Sustainable Logistics met for the first time this
past March at the annual Headquarter Session in Zurich. The founding delegates met to
discuss the development of its mission statement and the formation of goals and objectives
for the group.
The meeting also touched on some of the work that had been done since its inception at the
FIATA World Congress in Taipei last year following a decision from the Presidency to
establish a group to deal with all matters concerning sustainability.
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FIATA Director General, Mr Sorgetti, participated in a panel discussion at the Volvo Group
Summit that took place in November 2015. The theme of the summit was heavily geared
toward discussions surrounding sustainability. FIATA had been regarded as a global trade
facilitating body and the main multimodal representative in the world.
On-going preparations and planning had been underway to bring a successful side event to
this year’s International Transport Forum jointly organised between FIATA, CLECAT, the
European Shippers’ Council, the International Road Transport Union, and Smart Freight
Centre. The ITF summit has been successfully concluded along with our side event
bringing industry representatives together to discuss Business and Government for Smarter
Freight. This year’s ITF Summit took place between 18th and 20th of May in Leipzig,
Germany under the theme Green and Inclusive Transport.
The UNFCC COP21 2015 Paris Climate Conference had also been a prominent feature of
the Working Group’s first meeting. The conference was concluded in December 2015,
where the bottom-up approach taken by collecting Intended Nationally Determined
Contributions from member states resulted in a much more fruitful outcome than the
previous round’s top-down approach.
While the Working Group Sustainable Logistics is still in its infancy stages the founding
group of nominated delegates will meet again at the upcoming FIATA World Congress
2016 in Dublin to further build on its foundations and the direction of the group’s work.
Heiner Rogge
Chairperson - Working Group on Sustainable Logistics
FIATA WORLD CONGRESS COMMITTEE
I am pleased to write the Congress Committee’s (CC) first annual report. I wish to start by
taking you back into history. The Congress Committee was formed and Chaired by
FIATA’s own Issa Baluch over 10 years ago. After a long term as Chair, Mr Baluch
graciously nominated me to take over as chair being one of the first members on the
committee along his side.
The formation of the CC established structured in reviewing, deliberating within and short
listing potential FIATA world Congress hosts. After our initial review, we send the
shortlisted hosts to the Extended Board for voting and winner selection. We do this process
annually to select the Host Country three years ahead of the actual congress. This past year
we reviewed candidates to host the 2018 FIATA World Congress which will be hosted by
our Indian Association.
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The process is based on 7 criteria for which the host countries must fulfil to be considered.
The CC will individually do their own assessments and send their scores into the FIATA
Secretariat for consolidation. Afterwards, the three top scoring host countries will be
forwarded to FIATA Extended Board (EB) with the CC’s recommendations. The three host
countries will then make a presentation separately to the EB during their bi-annual
meeting.
The congress progress thus far has been successful. It is very difficult to predict what will
happen to the host country in the year of the congress but we are lucky that we overcome
those issues and have hosted very successful congresses. Potential hosts come from 4
regions, the Americas, Africa/Middle East, Europe and Asia Pacific. We need to appreciate
the vast difference in culture and the travels to these regions every year.
Once the host selection has been finalized, the work does not stop there. FIATA is
constantly reviewing the congress programmes to be relevant with great Speakers and also
allocate time for business opportunity through networking. You will certainly see this in
the Dublin congress.
Stanley Lim
Chairperson - FIATA Congress Committee
