SHIPPERS’ AND SHIPPERS’ AND FORWARDERS’ DEMANDS, FORWARDERS’ DEMANDS,

one year after....one year after....

8TH IRU TRANSEURO ROAD TRANSPORT CONFERENCE

Tallin, May 18th – 21st 2005

Marco L. Sorgetti: sorgetti@clecat.org

CONTENTSCONTENTS

Clecat & Fiata essentialsClecat & Fiata essentials Fiata and Clecat rolesFiata and Clecat roles Expectations of our sectorExpectations of our sector SC engineering: a Customer SC engineering: a Customer

driven mission in partnershipdriven mission in partnership Conclusions Conclusions

WHAT IS CLECATWHAT IS CLECAT

A 2002 Belgian Law Aisbl, FOUNDED IN 1958A 2002 Belgian Law Aisbl, FOUNDED IN 1958 Members are NATIONAL FEDERATIONS Members are NATIONAL FEDERATIONS

– Freight ForwardersFreight Forwarders– Transport service providersTransport service providers– Logistic providers Logistic providers – Customs Agents Customs Agents

COMPANIES COMPANIES – Global players Global players – SMESME– Family businessesFamily businesses

Clecat is the permanent representation of Fiata in Clecat is the permanent representation of Fiata in BrusselsBrussels

CLECAT’s CORE BUSINESS is EU LEGISLATION CLECAT’s CORE BUSINESS is EU LEGISLATION in progressin progress

CLECAT CLECAT POWERSPOWERS

25 European National Federations 25 European National Federations – Founding member states, Founding member states, – I, II, III process of enlargement and I, II, III process of enlargement and

beyond (BG, RO, TR, UKR)beyond (BG, RO, TR, UKR) REPRESENTATION for over 19,000 REPRESENTATION for over 19,000

companies and businesses companies and businesses Over 1 million workforce are Over 1 million workforce are

directly represented by Clecatdirectly represented by Clecat

• FIATA was founded in Vienna/Austria on May 31, 1926 by 16 founding Members.

• FIATA has consultative status with ECOSOC, UNCTAD, UNCITRAL and UN/ESCAP and cooperates with a number of other international NGO’s

• FIATA has – 95 National Association members in 86 different countries – over 4600 Individual Members in 150 different countries.

FIATA IS THE UNIVERSAL VOICE OF FREIGHT FORWARDERS , i.e.: ONE OF THE MOST IMPORTANT WORLDWIDE

ORGANISATIONS IN LOGISTICS

FIATAThe International Federation of Freight Forwarders Associations

Fédération Internationale des Associations de Transitaires et AssimilésInternationale Föderation der Spediteurorganisationen

FWR (FIATA Warehouse Receipt)

FBL (negotiable FIATA Multimodal Transport Bill of Lading)

FWB (non-negotiable FIATA Multimodal Transport Waybill)

FCR (Fiata Forwarders Certificate of Receipt)

FIATA documents

Last year’s Freight Forwarders’ Day Last year’s Freight Forwarders’ Day (Brussels Dec 2(Brussels Dec 2ndnd) initiated a dialogue to ) initiated a dialogue to draw the new picture of the SC, draw the new picture of the SC, concluding that concluding that – Traders need measurable advantages to Traders need measurable advantages to

balance additional burdens in procedures balance additional burdens in procedures with measurable benefits in performancewith measurable benefits in performance

– Clecat must claim a focal role for its Clecat must claim a focal role for its Members as trade facilitators, enabling Members as trade facilitators, enabling enhanced performance for clients and enhanced performance for clients and service providers alikeservice providers alike

EXPECTATIONS AND EXPECTATIONS AND CHALLENGESCHALLENGES

as service providersas service providers

QUESTIONS FF’s INVESTIGATED:QUESTIONS FF’s INVESTIGATED:– Has demand grown for road transport-based Has demand grown for road transport-based

logistics in quantity or quality?logistics in quantity or quality?– Have hauliers and road transport logistics Have hauliers and road transport logistics

providers been able to meet providers been able to meet shippers'/customers' changing qualitative & shippers'/customers' changing qualitative & quantitative requirements?quantitative requirements?

– What is more important: the freight rate or What is more important: the freight rate or quality (rapidity, security, no damage ...)?quality (rapidity, security, no damage ...)?

– Is there a real demand for value-added Is there a real demand for value-added complex services?complex services?

CHALLENGES AND CHALLENGES AND EXPECTATIONSEXPECTATIONS

when working as partnerswhen working as partners

Has demand grown for road Has demand grown for road transport-based logistics in transport-based logistics in quantity or quality?quantity or quality? Increase in both quantity and qualityIncrease in both quantity and quality

Quantity: impact of EU EnlargementQuantity: impact of EU EnlargementForeign exchange volumes (+300% figure), CZForeign exchange volumes (+300% figure), CZFor road transport volumes (30% – 40%), DFor road transport volumes (30% – 40%), D QualityQualityFrom an administrative perspective, elimination of waiting From an administrative perspective, elimination of waiting

time at borderstime at bordersShippers are being more and more demanding, in Shippers are being more and more demanding, in

particular as regards delivery timeparticular as regards delivery timeQuality could be improved if we had:Quality could be improved if we had:

- - Better and more adequate infrastructure (congestion Better and more adequate infrastructure (congestion problem)problem)

- Better co-operation with shippers on one side and - Better co-operation with shippers on one side and carriers on the othercarriers on the other

Hauliers’ and road transport Hauliers’ and road transport logistics providers’ ability to logistics providers’ ability to meet customers' changing meet customers' changing requirementsrequirements Requirements generally met for quantitiesRequirements generally met for quantities As for quality of services, less successfully, some As for quality of services, less successfully, some

examples:examples:

UK: Extremely hard to find hauliers offering other than UK: Extremely hard to find hauliers offering other than same hit and miss-type services. Need specialists for same hit and miss-type services. Need specialists for regions and commodity (e.g. pharmaceuticals) to be regions and commodity (e.g. pharmaceuticals) to be successful.successful.

Belgium: Delivery by 08.00 am not always necessary. Belgium: Delivery by 08.00 am not always necessary. Routine demands not always justified.Routine demands not always justified.

JIT not always possible, due to the congestion problems in JIT not always possible, due to the congestion problems in Europe.Europe.

1 in 9 EU deliveries goes wrong because of congestion 1 in 9 EU deliveries goes wrong because of congestion (FIATA)(FIATA)

The example of the German logistic market: 150 billion € The example of the German logistic market: 150 billion € – 45% is in the hands of service providers 45% is in the hands of service providers – Transport, transhipment and storage counts for 65% of volumesTransport, transhipment and storage counts for 65% of volumes– share of the GNP is 7,4% share of the GNP is 7,4% among most important D industries among most important D industries

QUALITY (rapidity, security, QUALITY (rapidity, security, no damages...) or LOW no damages...) or LOW RATES?RATES? Freight forwarders’ service (& challenge) Freight forwarders’ service (& challenge)

consists in delivering the highest quality at consists in delivering the highest quality at the lowest price. the lowest price.

However…However…Shippers should understand both elements are Shippers should understand both elements are

interlinked – cannot rescind them interlinked – cannot rescind them Freight rates may impact on the overall cost of Freight rates may impact on the overall cost of

the final product, but logistic costs are often the final product, but logistic costs are often overestimated.overestimated.

FF & carriers partnership = solutionFF & carriers partnership = solution

Is there a real demand for Is there a real demand for value-added complex value-added complex services?services?Still a rather limited percentage, there Still a rather limited percentage, there

is a real demand, usually coming from is a real demand, usually coming from big shippers, and growing, therefore:big shippers, and growing, therefore: carriers may wish to offer a wider range of carriers may wish to offer a wider range of

services than transport onlyservices than transport only FF & carriers may work at common FF & carriers may work at common

projects in partnershipprojects in partnership New MS’s carriers may wish to brush up New MS’s carriers may wish to brush up

their transport service to meet more their transport service to meet more demanding standardsdemanding standards

Adopt common best practices, share knowledge and pull barriers down!

CONCLUSIONSCONCLUSIONS

Fiata & Clecat represent full range of services, Fiata & Clecat represent full range of services, have numbers, influence and solid traditionhave numbers, influence and solid tradition

Fiata & Clecat are in active dialogue with all Fiata & Clecat are in active dialogue with all institutions, EU and worldwideinstitutions, EU and worldwide

Fiata & Clecat are ideal brokers of information Fiata & Clecat are ideal brokers of information in all Trade Facilitation issuesin all Trade Facilitation issues

– With technical expertise, professional With technical expertise, professional qualification and adequate investments qualification and adequate investments Fiata & Clecat Members can be ideal Fiata & Clecat Members can be ideal “facilitators” and partners for carriers and “facilitators” and partners for carriers and shippers alike. shippers alike.

Thank you!