September 2015

September 2015
www.bifa.org
BIFAlink
Issue: 299
The magazine of the
British International
Freight Association
Container weighing:
Are you ready?
– See pages 10-11
INSIDE
6: News
New Alternative Dispute
Resolution rules set to
come into effect
8: Legal
Good practice: A guide
to agency agreements
9: Policy & Compliance
New warning issued to
airlines on lithium batteries
18: Events
Last chance to enter
Freight Service Awards
2015
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BIFAlink is the official magazine of the
British International Freight Association
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Director General
Robert Keen
r.keen@bifa.org
Policy & Compliance Manager
Robert Windsor
r.windsor@bifa.org
Policy & Compliance Advisor
Mike Jones
m.jones@bifa.org
Member Services Manager
Spencer Stevenson
s.stevenson@bifa.org
Editorial Co-ordinator
Sharon Hammond
s.hammond@bifa.org
Administration Controller
Jane Robinson
j.robinson@bifa.org
Published by
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peter@parklanepublishingltd.com
Contributors
Robert Keen, Robert Windsor, Mike Jones,
Spencer Stevenson, Sharon Hammond,
Becky Thurtell
Regional Consultants to BIFA
Jim McCall - j.mccall10@btopenworld.com
Scotland
Paul Young
youngyes@aol.com
North West, Midlands & Northern Ireland
Geoff Stark
grstark@grstark.karoo.co.uk
North East (Humber, Yorkshire, Tyne Tees)
Colin Young
young_colin.t21@btinternet.com
South (London West, Solent, SW England
& S Wales)
Paul Newman –
paul.newman1@btinternet.com
London East, Anglia, South East
Subscription rates:
UK £40
Rest of the World £52
Please be advised that BIFA DOES
NOT OFFER LEGAL ADVICE. BIFA is
not a law firm and the authors of this
publication are not legally qualified and
do not have any legal training. The
guidance and assistance set out herein
are based on BIFA’s own experience
with the issues concerned and should
not be in any circumstances regarded
or relied upon as legal advice. It is
strongly recommended that anyone
considering further action based on the
information contained in this publication
should seek the advice of a qualified
professional.
September 2015
Robert Keen’s Column
BIFAlink
National event for BIFA Members
Having been Director General for a year now, I thought I should be honest and refresh
my thumbnail photograph. Those of you who have seen me in the past few years may
have thought that I was somewhat vain as the image you have been seeing for the past
12 months was taken well over 10 years ago. Rather than be like the youthful images of
actors you see in a theatre programme, here is the up to date me.
And what a year it has been. Membership has continued to grow and, as I write, we
are at an all-time high. Our influence with government departments and nongovernment organisations has spread together with a higher media profile. The
downside of this is that I am often on the receiving end of telephone calls at the
weekend from BBC or CNN researchers regarding Calais. However, I am really pleased
that more and more news organisations are approaching us for our views. I am not going to rant on about
Calais as I have done in previous issues except to say that the position is blindingly obvious and we keep telling
our government contacts and the immigration minister that coherent action is needed rather than the muddled
efforts we have been witnessing until now.
Whilst our hallmark event is the BIFA Awards luncheon every January, some of you will remember that we
used to stage a National Conference. These grand events gave way to shorter more focused gatherings and we
have not held a formal event for many years. The last such occasion was in June 2007 at the Institute of
Directors in London and was titled Security without Barriers to Trade. We brought together HM Revenue &
Customs (HMRC), traders and forwarders, with the Secure Supply Chain and the Authorised Economic
Operator being key subjects discussed.
I think it is about time we got our Members and Customs together again with other appropriate stakeholders,
so please put Thursday 26 November in your diaries. The venue will be One Great George Street in Westminster
and the key topics will be Changes in Customs Legislation Emerging from the Introduction of the Union
Customs Code in May 2016, Becoming an AEO, and Container Weight Verification.
We are already delivering regional briefings on the expected outcomes of the UCC but in November you will
have the opportunity to hear from HMRC and BIFA on the changes planned in a superb surrounding for
networking with key people. After Customs we are planning a session on Container Weight Verification, bringing
you the most up-to-date information of the new procedures that become law in July 2016. Watch out for our
mailings and other publicity material heading your way soon.
September sees the annual FIATA Congress and this year BIFA will be centre stage with our Young Freight
Forwarder finalist in the international competition. Fingers crossed that Jeni Taylor of Santova Logistics is the
global winner.
Our influence in FIATA has grown in the past few years. We have our Immediate Past Chairman, Steve Parker,
as a voted member of the FIATA Board and he also plays a prominent role in its Customs Institute. I am
Chairman of the FIATA Multimodal Transport Institute, with the working groups for Sea, Road and Rail reporting
to me. BIFA Director Mark Bromley of Allways International is a key member of the Road Group. Finally, Mike
Jones represents BIFA’s Air interests, being a member of the FIATA Air Freight Institute, so we are present in all
of the policy-making bodies, and the UK is looked to as an area of expertise.
Many thanks to the BIFA Members I visited in August for their hospitality and interesting discussions. I have
been challenged to present a webinar by Unsworth Global Logistics who assure me they will look after the
technical stuff if I pick a topic to deliver, so watch out for details of me coming soon on a PC near you!
Robert Keen
Director General
3
BIFAlink
www.bifa.org
News Desk
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
Grangemouth to boost
reefer box capacity
PORTSIDE
The port of Grangemouth is to
receive a six-figure investment to
increase its capacity for refrigerated
containers in a move that will be a
major boost for importers and
exporters of fresh produce using
Scotland’s largest container
terminal.
In anticipation of the arrival of five
of the world’s largest cranes at the
port of Liverpool in the autumn,
Peel Ports has introduced a stateof-the-art ‘virtual’ training simulator
on site, designed to ensure all
operators are ready to manoeuvre
the giant structures from day one of
installation.
ON THE OCEAN
Drewry Maritime Research reports
that the drop in the dry bulk market
caused by the slowdown in Chinese
demand is likely to be mirrored by
the container market, but not as
strongly. With Greater China
responsible for approximately 30%
of all container moves in the world,
the direction of the Chinese
economy has a huge bearing on
world container shipping growth.
Drewry estimates that China
container imports grew by only
1.6% last year, whereas exports
rose by 9.1%. The latest WTO data
suggests that China’s merchandise
imports were down by 15.5% in the
first six months of 2015, whereas
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Cross-Channel disruptions to freight
traffic this summer, triggered by the
migrant crisis in Calais and a spate
of industrial action by French ferry
workers, have led to a major rise in
haulage companies turning to North
Sea ports on the east coast of
England for transport to mainland
Europe, say shipping lines.
OVERLAND
PD Stirling said the Scottish
government has approved plans for
an international rail freight terminal
in Mossend, Bellshill, in North
Lanarkshire. The company will be
expanding its existing operations at
Bellshill to create its Mosshead
International Rail Freight Park.
A Quality Charter for international
road haulage operations has been
approved by the Transport Ministers
of the International Transport Forum
(ITF) European member countries. It
establishes qualification standards
for companies, managers and
drivers and will enter into force on
1January 2016.
One year after the announcement of
a development programme, Egypt’s
expanded Suez Canal is open for
business with the new 23-mile
parallel channel allowing two-way
traffic and reduced waiting times.
Suez Canal Authority projections
that average daily vessel transits
will double by 2023 to 97 vessels
and more than double revenue to
USD13.2 billion within 10 years are
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4
merchandise exports managed a
1% rise.
IN THE AIR
The recent half year report from
IATA is not encouraging. Global air
freight markets recorded a
slowdown in growth in June. Air
freight volumes measured in freight
tonne kilometres rose just 1.2%
compared with a year ago. Regional
performance varied widely. AsiaPacific, North American and Latin
American carriers reported year-onyear declines (-0.3%, -3.3%, and
-1.6% respectively), while European
carriers reported that markets were
flat. This was offset by the strong
performance of Middle Eastern
(+15.3%) and African (+6.7%)
carriers to keep growth in positive
territory. The general trend of a
weaker 2015 compared with 2014
can be seen in the half-year data.
Air freight markets expanded by
5.8% in 2014; however year-to-date
growth for 2015 stands at 3.5%.
TIACA has launched a new website
with added benefits for members
including an industry scorecard to
help with the drive towards
e-freight. The new site includes a
range of features such as improved
networking opportunities, while the
industry scorecard highlights some
of the key benefits and challenges
for various e-commerce initiatives.
Virgin Atlantic Cargo has welcomed
the latest moves by other airlines to
ban the carriage of hunting trophies
and says it is time for the air cargo
industry to adopt a strict ethical
policy to clearly identify shipments
not acceptable for carriage.
IN BUSINESS
The continuing disruption British
businesses face from the Calais
crisis highlights the need for strong
risk strategies, said Nick Miller,
head of FMCG at global supply
chain consultancy Crimson & Co. In
light of this, Miller urged all
businesses to carry out a thorough
review of their risks strategies in
order to avoid future disruptions.
Mega mergers have been on the
agenda this summer with talk of
one being planned between
shipping conglomerates Cosco
Group and China Shipping Group,
followed by the news of another
between Konecranes and Terex
Corporation.
September 2015
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BIFAlink
www.bifa.org
News Desk
New Alternative Dispute
Resolution comes into effect
From October 2015, the business information
requirements for the EU Alternative Dispute
Resolution (ADR) Directive will come into effect,
impacting all businesses and consumers in the UK.
ADR describes a range of processes that offer the
parties an easier, quicker and more cost effective
mechanism to resolve complaints when compared with
the court process.
The new regulation will require traders, once they fail
to resolve a dispute through their own customer service
efforts, to advise the consumer of an ADR body,
relevant to their sector, and the nature of the specific
complaint.
The trader will not be compelled to use the ADR
body but it is hoped that the requirement to identify an
appropriate body, and the potential benefits in
customer relations such schemes may offer, will
encourage traders to do so.
ADR is widely available in the UK and mediation is
available in the county courts or may require parties to
consider it in the High Court and other courts.
For a list of solicitors that are BIFA Associate
Members and who are specialists in the forwarding
sector, visit the BIFA website www.bifa.org > Contacts
> Useful Links
Macedonia joins
Common Transit
Convention
The former Yugoslav Republic of
Macedonia acceded to two
Conventions on 1 July – on the
simplification of formalities in
trade of goods and also the
Common Transit Convention.
At the same time, the former
Yugoslav Republic of Macedonia
is joining a system based on
electronic declarations and
processing, which is designed
to provide better management
and control of the transit of
goods.
This electronic system was
developed with the help of EU
funds under the Instrument for
Pre-Accession.
The European Commission
considers this to be an important
step for trade facilitation in the
region and an important
achievement with a view to joining
the EU in the future.
Growing Your Business
and Avoiding Pitfalls
(c) 2015 Hilton Hotels & Resorts
A free BIFA seminar
Full details at www.bifa.org/events
1600-1730, Wednesday 14th October
Heathrow Hilton Colnbrook
6
Join us for networking and drinks before and afterwards
Reserve your place by email to s.hammond@bifa.org
by 18th September 2015
September 2015
www.bifa.org
News Desk
BIFAlink
Date set for
BIFA Liverpool
Regional
Annual
Dinner 2016
Belgium starts distance-based tolling
The regions of Flanders and Wallonia in Belgium have
voted to introduce a distance-based road toll for
heavy goods vehicles weighing more than 3.5 tonnes,
as of April 2016.
The tolled network will be reduced as compared with
that affected by the present vignette scheme.
The measure, which has been under preparation for
many years, is predicted by the road hauliers'
associations to cause an increase of 7% in the
prevailing road freight rates.
So who is joining BIFA?
You can find details of new
member applications listed on the
BIFA website, www.bifa.org.
Simply select the tab
MEMBERSHIP and you will see a
separate page titled NEW
MEMBER LISTING.
The new member applications
are published 14 days prior to the
appropriate Regional Consultant to
BIFA visiting the applicant for the
final audit and welcome visit.
If you wish to bring any information
to our attention regarding any
application, an e-mail should be sent
to Robert Keen (r.keen@bifa.org).
BIFA has a Membership Group which
can evaluate any contentious
applications. We also list on the
website those companies that have
ceased membership of BIFA .
If you sign up for the BIFA
e-newsletter it will make checking
who has applied for membership
really easy. It is sent to subscribers
every two weeks and there will be a
prompt that will enable a one-click
link to the appropriate page on the
BIFA website.
You can register to receive the
BIFA e-newsletter by a simple signup process on the front page at
www.bifa.org. You can tailor the
type of news that we feed to you. If
you have any questions concerning
the website our resident expert,
Spencer Stevenson
(s.stevenson@bifa.org), will be
pleased to help you.
The ever-popular Liverpool Region
Annual Dinner will be held on
Friday 26 February 2016 at The
Liner, Liverpool.
Tickets are now on sale at £35
each from Paul Young, the Regional
Consultant to BIFA for the North
West, the Midlands and Northern
Ireland. Contact Paul at
youngyes@aol.com for a booking
form.
The event continues to support
Zoe’s Place (a hospice for children),
Help for Heroes and the Ellesmere
Port Sea Cadets, with organisers
hoping to match the amazing
£5,000 raised in 2015.
Contributions of raffle prizes and
auction items are welcomed.
Entertainment on the night will be
provided by the Corps of Drums of
the Ellesmere Port Sea Cadets and
comedian Josh Daniels.
BIFA would like to thank the
sponsors of this event:
The Limits of Liability for Carriers
By sea – Hague Visby
rules (2 SDR):
£1.78 per kg
£594.85 per package
In association with
By road – CMR
(8.33 SDR):
£7.43 per kg
Proud to be sponsoring the 2015
BIFA Award for Project Forwarding
+44 (0) 1628 532 613
September 2015
www.peter-lole.co.uk
By air – Montreal
Convention (19 SDR):
£16.95 per kg
By air – Warsaw
Convention (17 SDR):
£15.17 per kg
BIFA STC: (2 SDR):
£1.78 per kg
(The SDR rate on
19 August 2015,
according to the IMF
website, was 0.892268)
7
BIFAlink
www.bifa.org
Legal
Good practice: A guide
to agency agreements
A look at some of the essential the elements you should include
when drawing up an agency agreement
Agency agreements between
freight forwarders are made
throughout the world on a daily
basis, sometimes as a ‘one off’
arrangement but often based upon
long-term co-operation on a sole
agency in a defined geographical
location. Agreements may also
include agreed profit sharing or
commission remuneration.
binding contract between two
parties as long as there is an offer,
an acceptance, and value of some
kind such as payment passing with
acceptance, and should not be
entered into lightly. Long-term
agreements should be negotiated
in English with the final draft being
approved by a knowledgeable
solicitor.
BIFA Standard Trading
Conditions (STC)
Irrespective of the type of
agreement you enter into, if you are
providing services of any kind to
the other forwarder, it is imperative
that the STC are incorporated at
the time a quotation is made in the
case of a one-off arrangement and,
for longer term arrangements, into
a formal agency agreement.
The document should include the
following:
1. Detail of the scope of the
agreement – in other words
airfreight, seafreight,
consolidations, documentary
services or all services.
2. Definition of the geographical
areas that the agreement covers.
3. Date of commencement and term
of the agreement with notice of
any termination clauses.
4. Financial agreement – payment
terms – the conditions under
which you will undertake the
The agency agreement
Entering into an agency agreement
(either verbal and/or written) is a
8
collection of any COD shipments.
An agreement that there shall be
no invoice adjustments raised on
insurance claims prior to mutual
agreement of liability and
settlement, together with terms
on dealings with HM Revenue &
Customs on behalf of them and
their customers.
5. The incorporation of the STC of
both parties with a clear
definition of when the STC of
either party become paramount
to the other. Beware of trading
conditions you are asked to
accept and be satisfied that they
are standard forwarding
conditions for the country
concerned and not conditions
that are being imposed on your
partner by his customer. If in
doubt, check these conditions
with a solicitor.
6. Confirmation that forwarder’s
liability insurance is in place and
will continue to be in effect
throughout the term of the
agreement.
7. As far as possible the agreement
should contain a list of pre- and
post-costs and charges from
both parties for haulage,
warehousing, freight, customs
formalities and any other
foreseeable costs/charges
including an agreement to bear
proven currency, and bunker
surcharges without delay.
8. The agreement and the quoted
costs/charges should be
reviewed on an agreed regular
basis. Any interim changes
excluding BAF/CAF should
require an agreed notice period.
9. Logistics contracts – if this form
of business is to be included in
the scope you should also take
note of A Guide to Logistics
Agreements. Separate terms
must be agreed for each
individual logistics contract, the
basis of which should not conflict
with the basic agency
agreement.
10. If contracting with a foreign
agent, the agreement should
contain a law and jurisdiction
clause. Whilst the BIFA STC do
provide for English law and
jurisdiction, the agreement itself
should also contain a clause
specifying agreed law and
jurisdiction.
This list is not definitive and is
designed as a set of guidelines.
Informal engagements can be very
costly, therefore time and money
spent in setting up strong and fair
arrangements with existing and
potential partners, with clearance
from a knowledgeable solicitor, can
prove to be a sound investment.
Advice and Information
The Association is here to help you
in any way it can. Whilst BIFA
members of staff do not have legal
training, they can often assist with
commercial questions and source
appropriate advice for you.
However, any such assistance
given and flowing from this guide
will be subject to the disclaimer
appearing in this magazine.
September 2015
www.bifa.org
Policy & Compliance
Lithium-ion batteries: new
warnings issued to airlines
Following further research, the US Federal Aviation Administration
has again highlighted the fire hazards associated with lithium
batteries and the dangers of transporting them by air
vAn article in the July issue of
BIFAlink was the latest of several
articles that BIFA has published
about the dangers associated with
shipping lithium batteries by air. It
highlighted the fire risks that had
been identified and predictions of
further accidents made by the US
Federal Aviation Administration
(FAA).
Since that article, the FAA has
issued a further statement
acknowledging that testing it has
“conducted on the transport of
lithium batteries has indicated that
it presents a risk”.
Rechargeable batteries
The warnings are related to
rechargeable batteries that are
used in a variety of devices,
including mobile phones, laptop
computers, power tools and other
electronic devices.
FAA tests show that when the
batteries short-circuit they emit
hydrogen and other gases that can
build up.
When the gases ignite they
cause fierce explosions and fires
that are very difficult to put out. It is
the large number of lithium
batteries shipped and their
proximity to each other in cargo
holds that pose the greatest hazard
for aircraft.
Boeing, one of the world’s two
largest aircraft manufacturers, has
also issued a statement recently
warning its passenger airline
customers that flying bulk
shipments of lithium-ion batteries
can cause fires capable of
destroying aircraft.
The guidance sent to airlines
around the world urged them not to
carry lithium-ion batteries as cargo
until safer methods of packaging
BIFAlink
and transport are established and
implemented.
This message is particularly
important because it signals that
Boeing may now be prepared to
join the growing chorus of pilot
unions, airlines and other industry
players calling for a sweeping
reassessment of how lithium
batteries are transported as cargo
on all types of commercial aircraft.
Boeing’s message may have only
limited immediate or practical
impact for forwarders because
many airlines have already said
they will no longer accept bulk
shipments of lithium batteries.
Bans imposed
As of July 1, some 28 carriers had
imposed permanent or temporary
bans on bulk shipments of lithium
batteries as cargo on passenger
planes, according to data
assembled by the International Air
Transport Association. The airlines
include Delta, United, Cathay
Pacific, Emirates, Qantas and
British Airways.
Cargolux, an all-cargo airline,
stopped carrying the batteries after
reviewing information regarding the
effectiveness of the onboard fire
extinguishing systems in the case
of lithium-ion battery fires and
the temperatures that such fires
can develop.
The International Civil Aviation
Organisation (ICAO) has a
special working group that is
trying to develop new standards
for packaging that can contain
battery fires.
If the group cannot develop
such packaging, the UN agency is
likely to ban battery shipments from
passenger airlines at its next
meeting in October.
ICAO has a special
working group that is
trying to develop new
standards for
packaging that can
contain battery fires.
September 2015
9
BIFAlink
Policy & Compliance
www.bifa.org
Container weighing:
Are you ready?
BIFA has been preparing guidelines to the new container
weight regime which clearly is of great concern to Members.
There will be only two acceptable methods to establish a
verified gross mass.
BIFA has been briefing its
membership since 2013 on the
maritime industry’s progress
towards the introduction and
enforcement of legislation to ensure
an accurate gross container weight
is advised to the carrier. The
necessary amendments to the
Safety of Life at Sea (SOLAS)
convention Chapter VI were passed
after many meetings by the
International Maritime Organization
in May 2014.
During the spring and summer of
2015, BIFA has held 10 meetings
where this subject has been
discussed at length. What has
become clear is that Members are
deeply frustrated at the industry’s
lack of preparedness to implement
the new regime.
For instance, whilst the Maritime
and Coastguard Agency (MCA) has
published its guidelines, at the time
of writing the mechanism to join the
scheme had not been finalised.
With one or two notable exceptions,
the shipping lines are unable to
provide any information regarding
their procedures to handle the
additional ‘verified weight’
information provided by the shipper.
These and similar issues are
beginning to cause the membership
considerable concern.
Through its affiliation to
international organisations, it is
clear to BIFA that there are similar
concerns throughout the world.
10
It is important to understand that
the SOLAS amendment is only part
of wider efforts to improve safety in
the logistics and maritime industry.
These other measures include new
guidelines for packing cargo
transport units, which aim to ensure
that individual pieces of cargo are
correctly stowed and the weight
evenly spread across the whole of a
container.
Identifiable solution
However, the weighing issue has
attracted the most interest because
of publicity about well-documented
incidents such as the MSC Napoli
sinking. The problem is readily
identifiable, as in theory should be
the solution.
It must be remembered that it is
already a legal requirement for the
shipper to provide to the carrier
with an accurate weight. This was
enshrined in the Carriage of Goods
at Sea Act 1971 and the Merchant
Shipping (Carriage of Cargoes)
Regulation 1999.
Although the language has
changed slightly and we now refer
to a ‘verified gross mass’, the
general principle remains that this
information has to be provided prior
to the goods being loaded to the
carrier.
This amendment to SOLAS is a
measure impacting on all parties
within maritime, and all will have to
accept these responsibilities,
whether they be actual or
implied. In the UK, the
regulations will only apply
to export containers.
The regulation clearly
states: “The shipper of a
container shall ensure that
the verified gross mass is
stated in the shipping
document.”
If this verified weight is
not provided “it shall not be
loaded on to the ship.”
The shipper is defined as
“a legal entity or person
named on the bill of lading
or sea waybill, or
equivalent multimodal
transport document (eg ‘through’
bill of lading) as shipper and/or who
(or in whose name or on whose
behalf) a contract of carriage has
been concluded with a shipping
company.” On many occasions the
freight forwarder is contractually the
shipper.
There are only two methods to
establish this verified gross mass:
• Method 1 – weighing the packed
container using calibrated and
certified equipment.
• Method 2 – weighing all
packages and cargo items,
including the mass of pallets,
dunnage, etc, and adding these
to the tare mass of the container
“using a certified method
approved by the competent
authority of the state in which the
packing of the container is
completed”.
There are certain exceptions to
these general rules. For instance,
shippers of scrap metal must use
Method 1 to establish the weight of
the loaded container. The new
regulations only apply to exported
containers. On inbound shipments,
the verified weight will have been
established in the country where
the container was loaded.
During the winter of 2014/2015,
BIFA worked with other trade
associations, and in particular the
Freight Transport Association (FTA),
to assist the MCA in preparing
September 2015
www.bifa.org
workable scheme guidelines.
The aim has been to produce
guidelines that follow existing work
patterns and wherever possible use
existing auditable procedures.
Where a Member wishes to use
Method 2, if they are accredited to
ISO 9001 or similar audited standard,
and have the required procedures,
these can be used as the basis to
become what we are going to refer to
as a ‘verified shipper’.
Additional procedures can be
added to the existing programme
where necessary to make up for
September 2015
Policy & Compliance
any procedural gaps. The forwarder
will also have to consider what, if
any, additional equipment,
maintenance and staff training will
be required to ensure compliance.
MCA checks
In both cases the relevant
paperwork, plus supporting
certification, can be sent to the
MCA which will issue the relevant
authorisation and list the trader on a
central database, which can be
checked as appropriate.
If the Member does not have the
previously mentioned ISO
accreditation, we understand that
standalone schemes will become
available, but will have to comply
with MCA criteria. When it has been
established after audit that the
trader is compliant, it may apply to
the MCA as previously detailed to
be listed as a verified shipper.
For those operating under
Method 1, the freight forwarder will
need to ensure it uses a provider
with calibrated and certified
equipment. Consideration will have
to be given to retaining weighing
BIFAlink
certificates in case the cargo’s
weight is queried at a later stage.
In this brief overview we have
endeavoured to highlight the main
requirements of how the regulatory
system will operate in the UK.
Freight forwarders will have to
decide which option they will use
and in what circumstances.
More comprehensive information
regarding the scheme can be
obtained at: https://www.gov.uk/
government/uploads/system/uploa
ds/attachment_data/file/436986/M
GN534_Complete.pdf
11
BIFAlink
Policy & Compliance
Ensure your seafreight
boxes are correctly loaded
The declared weights of some loaded containers and the safety
and security of the goods within them, particularly dangerous
goods, remain an ongoing concern for the Maritime and
Coastguard Agency
The competent authority in the UK,
the Maritime and Coastguard Agency
(MCA), has indicated that there is
serious concern over the declared
weights of some loaded containers
and the safety and security of the
goods loaded within them.
These checks have been taking
place for a long time and will
continue both in this and other
countries en route to their final
destination.
Many loaders fail to ensure an
even spread of the load over the
length of the container floor. This
gives rise to problems in axle
weight distribution on the road
portions of the journey, stability
when lifting, and also on the ship.
This is an issue that is addressed at
12
considerable length in the revised
IMO/ILO/UNECE Code of Practice
for Packing of Cargo Transport
Units (CTU Code) issued in 2014.
Dangerous assumptions
Additionally, many loaders assume
that goods within the container will
remain stable during transit, a
dangerous assumption because unrestrained goods will move within
the container under the stresses of
transport by road and by sea.
The essential thing to remember
is that goods loaded to a container
or vehicle must be restrained so that
they cannot move. This is even more
important when the goods involved
are classified as dangerous.
The IMDG regulations state that,
where possible, dangerous goods
should be loaded near the doors of
containers and with the relevant
labels facing the rear doors. This
means that, should your container
be subject to such an inspection,
less time will be taken, minimising
delays and the resultant financial
implications.
If the inspector has to off-load
some or all of the load to satisfy
him/herself that the load complies
with the documentation, the
process will be longer and more
expensive. In preparing a load for a
vehicle or a container, the first
priority is the weight distribution,
then the placement and securing of
any dangerous goods.
Most loaders are professional in
www.bifa.org
their approach but too many
examples show not all loads are
prepared by professionals.
At a recent meeting of BIFA’s
Dangerous Goods Advisory Group,
the MCA confirmed that 40% of
inspected dangerous goods failed
their initial examination. This
percentage has remained static
over a 10-year period.
The most common reasons for
dangerous goods failing the
appropriate safety checks were
highlighted in a recent case study
supplied to BIFA by the MCA. There
were significant errors in both the
documentation and the way in
which the container was loaded.
The transport document referred
to dangerous goods which did not
form part of the load. Pictures taken
of the container showed that the
loader did not understand its
responsibilities and had not planned
the loading or securing of the load.
Heavy pallets had been loaded on
top of lighter ones, solid
substances loaded on top of
liquids, and there was no securing
of any cargo within the container,
resulting in the whole load shifting
and making the container
dangerously unbalanced.
Corrective actions
The necessary corrective action
involved the out-turning and
reloading of the container within the
terminal, which delayed the
shipment and led to significant
costs being incurred.
There is a feeling growing within
compliant companies that when
handling dangerous goods, all
parties have an obligation to fulfil
their responsibilities and to be
willing when questioned to confirm
details of the exact nature and
handling requirements of goods
tendered for shipment. The MCA
has openly said it believes there
needs to be a cultural shift in the
mind-set of some shippers, placing
compliance and safety as their
number one objective.
BIFA would like to thank Bob Cross,
Chair of BIFA’s Dangerous Goods
Advisory Group, for preparing this article.
September 2015
BIFAlink
Policy & Compliance
e-AWB growth ‘insufficient
to hit target’ says IATA
While the number of e-AWBs submitted globally has risen to
28.8%, progress is too slow for IATA’s 45% target to be hit by
the end of this year
e-AWB penetration is not
developing fast enough according
to IATA and it is now unlikely that
the global e-AWB penetration
target, of 45% by the end of
December 2015, will be reached.
Latest figures published by IATA
in June show that the number of
e-AWBs submitted globally rose to
28.8% of the total.
This was a rise of just 0.8% on
the previous month and although it
is positive growth, it is not
sufficient to meet the industry
target by the end of the year.
IATA says that industry adoption
needs to grow by at least 2% every
month, which would require a
14
significant acceleration of e-AWB
implementation.
One of the strategies that IATA
has identified is to focus efforts on
the top 50 e-Airports where e-AWB
is already enabled.
Single Process
It will also encourage airlines to roll
out ‘Single Process’ across more
locations in the network. The
Single Process simplifies adoption
for freight forwarders, allowing
them to send electronic data and
never deliver a paper AWB with the
cargo.
The Single Process works by
permitting forwarders to follow the
same process regardless of any
regulatory or operational
requirements with the airline
determining when a paper AWB
needs to be produced. When
required, the airline prints a paper
AWB, with the conditions of
contract on the reverse, on behalf
of the freight forwarder, using the
exchanged electronic data.
This process releases freight
forwarders from the complexity and
IATA says that experience shows
that it can triple the rate of e-AWB
adoption.
Many small and medium-size
forwarders still feel that not enough
is being done to help them make
www.bifa.org
the transition to e-AWB. There is
no standardised platform for
communicating with the airlines
and some airlines and transit sheds
are still unable to accept XML
format messages.
Forwarders have also pointed
out that many airlines are not
encouraging them or pushing them
to make the change as it is not
mandatory.
Multilateral agreement
Despite the disappointment in the
slower than forecast progression of
e-AWB, more than 84 airlines and
2,206 freight forwarders have
signed a Multilateral e-AWB
agreement which provides a single
standard agreement that airlines
and freight forwarders can sign
once with IATA, and start doing
e-AWB with other parties to the
agreement.
The progress of e-AWB
penetration can be followed in an
International Monthly Report on the
IATA website, together with the
latest news in the e-Cargo Buzz
monthly update.
September 2015
www.bifa.org
Training
BIFAlink
How BIFA training helps
your staff and company
• Some courses are now available
online
• We offer a range of courses at
different levels to allow
progression
• Courses are delivered by
industry professionals with
hands-on knowledge
• Courses are participative to
ensure delegates gain real
experience
• Courses are scheduled on a
range of dates and at a range of
venues
• Courses can be delivered
‘in-house’ to a group of
employees
• In-house courses can be tailored
to your requirements
• Course fees are kept to a
minimum and BIFA member
companies benefit from reduced
member rates and 30 days credit.
BIFA has been offering training to
freight forwarders, their customers
and freight intermediaries for almost
40 years but perhaps you are
asking ‘Why train?’ This is our
answer:
• To comply with legislative
requirements
• To enhance basic skills and
industry knowledge
• To build on on-the-job training
• To create multi-skilled staff by
cross-training
• To avoid errors
• To develop staff
• To raise staff morale
• To allow company to exploit new
opportunities
• To raise understanding of the
industry and its processes
• To enhance the service offered
to customers
• To create confident personnel
• To be the best in the field.
Do you need more reasons?
Forget facilities, vehicles, PCs and
other hardware, your company’s
image, profitability and continued
success depends directly on the
skills, knowledge and demeanour of
your staff.
No-one likes to feel out of their
depth and uncertainty can easily
lead to errors and silly mistakes.
Customers will pick up on a lack of
confidence in your staff and begin
to feel uneasy about dealing with
your company.
Contrary to popular belief, staff
do not up and leave to work for a
competitor as soon as they have
received training. Indeed they are
likely to feel refreshed, more valued
and show increased commitment
as a result.
The best investment you can
make, therefore, is in the individuals
at the forefront of your operation.
The payback in improved customer
September 2015
The BIFA range of courses covers
the carriage of dangerous goods,
air cargo security, freight forwarding
procedures and customs
procedures to meet the mandatory
requirements of cargo movement
and to develop the knowledge and
understanding of the industry
amongst your staff.
So, go to www.bifa.org/training to
review the range of courses and
make your training plans.
service, quality, new business and
staff loyalty will be immeasurable.
Training should be at the top of your
budget plans.
At BIFA we understand the
demands of your business and the
difficulty in releasing staff for
training. For this reason:
• We keep training courses short
and to the point
Free staff training
Did you know that BIFA offers a free
training course for members?
The topic is use of the BIFA
Standard Trading Conditions (STC)
and mirrors the recent series of
articles in BIFAlink where STC
clauses are examined in detail. We
at BIFA think it is essential that all
BIFA members train at least one
member of staff in this important
subject area.
All you do is register with Sharon
Hammond (s.hammond@bifa.org)
and then you get access to the
online course. It can take a few
months to complete, depending on
how much work you do each week
and your level of experience.
However we have found most
candidates pass the course, many
with a distinction mark.
15
www.bifa.org
Legal
Gender pay gap – an update
It has been 40 years since equal
pay laws came into effect in the
UK.
However, despite the equal pay
laws, there continues to be a gap
between what men and women are
paid.
The figures from the Office for
National Statistics for 2014 show
that the gender pay gap (based on
median hourly earnings for both full
and part-time employees) is
currently 19.1%, reducing to 9.4%
for full-time employees. However,
this is not the complete picture.
In the private sector the gender
pay gap for full-time employees is
17.5%. When broken down further
by occupation, provisional figures
for 2014 suggest that the pay gap
for those in full-time senior or
management roles is around 16%.
This figure increases to nearly 25%
for those working in skilled trades.
The main approach adopted by
the government for tackling the
gender pay gap has been to
promote transparency by asking
employers to identify and publicise
the gender pay gap within their own
organisations.
In 2011, the government decided
to launch a voluntary disclosure
initiative called ‘Think, Act, Report’
to encourage companies to report
on their gender pay gaps. Although
over 250 companies signed up to
the initiative, only five companies
have actually published their gender
pay gap information.
In addition, the government
introduced an obligation for
tribunals to order employers to
carry out an equal pay audit and
publish the results where they lose
Support your
local Member
group
BIFA holds Regional Member meetings around
the UK and listed right are those due to occur
soon. If you would like to attend and find out
more about BIFA and what we do, then contact
the appropriate Regional Consultant to BIFA.
All BIFA Members are entitled and
encouraged to attend their regional meetings
however pre-booking with the named contact is
essential.
Full contact details are shown on page 3 of
this issue.
September 2015
an equal pay or pay-related
discrimination claim.
The Small Business, Enterprise
and Employment Act 2015 has
received Royal Assent, and the
Secretary of State has been given
12 months to put together new
regulations, meaning that mandatory
gender pay gap reporting will be in
Region
Date
Stansted
Regional Members’ meeting
Gatwick
Regional Members’ meeting
Heathrow
Regional Members’ meeting
London East
Regional Members’ meeting
Anglia
Regional Members’ meeting
Southampton
Regional Members’ meeting
Northern Ireland
Regional Members’ meeting
Liverpool
Regional Members’ meeting
Heathrow
Regional Members’ meeting
Tue 8 Sep
Time
BIFAlink
place by spring 2016.
Section 78 of the new act gives
the Secretary of State broad
powers to prescribe what
information employers will need to
publish, in what form, and the
manner and time of publication.
Publication cannot be more
frequent than annually. The penalty
for an employer that fails to comply
could be a criminal fine of up to
£5,000 or civil enforcement
measures.
Whilst this is a positive step for
gender diversity, employers will
need to start thinking about
monitoring gender pay differences
more systematically and conducting
equal pay audits to identify where
pay gaps exist. This would enable
them to prepare for potential
negative publicity and/or address
issues at an early stage. This of
course has to be balanced against
the risk of creating material that
might need to be disclosed in
litigation at a stage where gender
pay reporting has not yet been
implemented.
If you have any queries in relation
to equal pay or the gender pay gap,
please do not hesitate to contact
Helen Watson on 01244 405565 or
send an email to helen.watson@
aaronandpartners.com
BIFA is grateful to solicitors Aaron
and Partners who contributed this
article.
Venue
BIFA Contact
TBA
Stansted Airport Ltd
Colin Young
Thu 10 Sep
TBA
Colin Young
Tue 29 Sep
1400
Tue 29 Sep
1200
Wed 30 Sep
1200
Tue 13 Oct
0800
Timberham House,
Gatwick
Redfern House,
Feltham
DP World,
London Gateway
Holiday Inn,
Orwell, Ipswich
Duke of Wellington
Tue 20 Oct
1030
Thu 22 Oct
1030
Thu 22 Oct
1400
Colin Young
Paul Newman
Paul Newman
Colin Young
Mission to Seafarers,
Paul Young
Belfast
Liverpool & Sefton
Paul Young
Chambers of Commerce
Redfern House,
Colin Young
Feltham
17
BIFAlink
www.bifa.org
Events
Freight Service Awards 2015
registrations close this month
BIFA reveals the identity of the 2015 ceremony host – Sally
(Traffic) Boazman who is known for her Radio 2 travel reports
Entries for this year’s BIFA Awards
competition have been coming in
consistently throughout the
summer months.
With autumn approaching, now is
the time for any remaining
registrations to be made as the
deadline is not far off: Friday 25
September, 5pm. If you have been
intending to register but have not
yet got round to it, please visit the
event website at bifa.org/awards.
See the back page for a list of
the 11 categories and sponsors.
The full category descriptions and
entry criteria can be found online at
bifa.org/awards under ENTER
NOW.
With two new categories added
for this year, there is plenty of
opportunity for you to submit
stories or projects for consideration
by the judges. These can range
from examples of good practice in
modal transportation to specific
forwarding projects, or from generic
examples of excellence in supply
chain management to staff
development practices.
New categories
The two new categories, the Cool
Award and the Extra Mile Award,
give you the opportunity to tell us
either about a particular movement
of refrigerated goods you have
carried out on behalf of a client, or
to show off how good the customer
service function within your
organisation is.
Not forgetting, of course, the
Young Freight Forwarder Award,
which allows managers to put
forward any rising stars within their
company, thus giving their younger
staff members a chance to show off
the results of their professional
progression and achievements. As
18
Sally Boazman
has become a
cult figure for
Radio 2
a reminder, there is no entry fee for
this category, and the individual
who wins will receive:
• A cheque for £1,000 to be
presented at the Awards
Ceremony (the three runners-up
each receive a cheque for £250),
• A place on a BIFA training course
Awards ceremony January 2015
of their choice,
• A free invitation to the 2016
Awards ceremony held in
January 2017 (all finalists also
automatically receive a free
invitation to the 2015 Awards
ceremony to be held in January
2016),
• A tour of category sponsor Virgin
Atlantic Cargo’s facility at London
Heathrow, including an airside
visit,
• Full-page coverage in the
Association’s monthly magazine,
BIFAlink,
• Nomination as the UK candidate
for the FIATA/TT Club Young
International Freight Forwarder of
the Year Award 2016. If
successful as the winner of the
Europe Category of the
competition, attendance at the
FIATA World Congress 2016 in
Dublin, Ireland.
Ceremony host
This year BIFA has picked Sally
(Traffic) Boazman as the celebrity to
host the Awards Ceremony to be
held on 21 January 2016 in the
impressive Porter Tun Room at the
grade II listed venue of The Brewery
in central London.
Once again the event host has
kindly been sponsored by the UK’s
world-class deepsea container port
and Europe’s largest logistics
park – DP World London Gateway.
Sally is well known for her travel
reports on BBC Radio 2, where she
is affectionately known as ‘Sally
Traffic’. She became the station’s
first designated travel reporter there
in 1998, where she has since been
presented with an ‘Outstanding
Achievement Award’ for her traffic
news on behalf of the UK’s
truckers. She is also a popular
guest at the Truckfest events, held
throughout the country.
Additionally, Sally regularly chats
on the Steve Wright, Simon Mayo
and Jeremy Vine shows, and can be
heard at the weekends with Graham
Norton, Johnnie Walker and others.
She has become a national cult
figure for Radio 2, and is even
known as the patron saint of road
users! Her first documentary for the
station, ‘In Search of a British
Route 66’, was very well received.
In the past, Sally has also worked
at BBC Greater London Radio
where she became their chief travel
reporter, writing and delivering
scripts for both radio and
Newsroom South East.
She has also presented a
documentary for BBC television –
The Road to Nowhere – celebrating
the 25th anniversary of the M25.
Sally has been voted one of the
most attractive female voices on
UK radio in a Radio Times poll,
coming in at number 4. She is also
an accomplished writer. The Sally
Traffic Handbook, full of facts, fun
and frolics, was published in 2007.
For further information on
entering the BIFA Freight Service
Awards 2015, or to book tickets for
the next Awards Ceremony
Luncheon, (Thursday 21 January
2016) please visit bifa.org/awards
September 2015
www.bifa.org
Training
BIFAlink
Training courses: September-November 2015
AIR CARGO (REGULATED AGENTS) SECURITY
TRAINING
NEW level
OLD Level
CASP
A/B
CO
D
COS
E
CS
F
CM
G
NEW – BIFA is now offering CASP, CASP-D and CO
courses (initial and refresher) via online CBT to
Regulated Agents. See www.bifa.org/training for further
information. Known Consignor modules also available
online.
Known Consignor Air Cargo Security (pm only)
10 September
Feltham, West London
7 October
Feltham, West London
12 November
Feltham, West London
Air Cargo Security – CASP (Cargo Aviation Security
Principles)
Air Cargo Security – CO (Cargo Operative)
17 September
Feltham, West London
29 September
Feltham, West London
14 October
Feltham, West London
26 October
Feltham, West London
11 November
Feltham, West London
BTEC Intermediate Award in Customs Export & Import
Procedures (CM3)
Commencing 9 September
Feltham, West London
Commencing 29 October
Feltham, West London
Dangerous Goods Safety Adviser (DGSA)
9-11 September
Heathrow area
9-11 September
Manchester
16-20 November
Feltham, West London
16-20 November
Manchester
BTEC Intermediate Award in Customs Import Entry &
Procedures (CM5)
Commencing 13 October
Feltham, West London
Radioactive Goods by Air (DGA3)
12-13 November
Feltham, West London
DANGEROUS GOODS
Radioactive Goods by Air – Revalidation (DGA4)
13 November
Feltham, West London
Air Cargo Security – COS (Cargo Operative Screening)
Air Cargo Security – CS (Cargo Supervisor)
Air Cargo Security – CM (Cargo Manager)
21-22 September
Feltham, West London
20-21 October
Feltham, West London
23-24 November
Feltham, West London
Air Cargo Security – Refresher CASP (am only)
10 September
Feltham, West London
7 October
Feltham, West London
12 November
Feltham, West London
Air Cargo Security – Refresher CO (am session) and
Refresher COS (pm session)
7 September
Feltham, West London
1 October
Feltham, West London
Air Cargo Security – Refresher CS (am session) and
Refresher CM (pm session)
25 September
Feltham, West London
26 November
Feltham, West London
Aviation Security Cargo X-Ray Operator
Available as an in-house course, contact BIFA to
schedule a date
Aviation Security NXCT
NB – test session only – no training takes place
28 September
Feltham, West London
21 October
Feltham, West London
23 November
Feltham, West London
CUSTOMS PROCEDURES
Customs Procedures for Export Cargo (CM1)
12 October
Feltham, West London
18 November
Midlands
Customs Procedures for Import Cargo (CM2)
13 October
Feltham, West London
19 November
Midlands
Dangerous Goods by Air (DGA1)
7-9 September
Coventry
7-9 September
Feltham, West London
14-16 September
Glasgow
14-16 September
Manchester
21-23 September
Leeds / Bradford
5-7 October
Feltham, West London
12-14 October
Bristol
12-14 October
Newcastle
26-28 October
Coventry
2-4 November
Feltham, West London
9-11 November
Manchester
Dangerous Goods by Air – Revalidation (DGA2)
10-11 September
Coventry
10-11 September
Feltham, West London
17-18 September
Glasgow
17-18 September
Manchester
24-25 September
Leeds / Bradford
8-9 October
Feltham, West London
15-16 October
Bristol
15-16 October
Newcastle
29-30 October
Coventry
5-6 November
Feltham, West London
12-13 November
Manchester
Dangerous Goods by Road (DGR1)
7-9 September
Manchester
14-16 September
Bristol
5-7 October
Coventry
19-21 October
Feltham, West London
2-4 November
Manchester
23-25 November
Birmingham
Dangerous Goods by Road – Revalidation (DGR2)
Days 2 and 3 of the above Dangerous Goods by Road
course (DGR1)
Dangerous Goods by Sea (DGS1)
10-11 September
Manchester
17-18 September
Bristol
8-9 October
Coventry
15-16 October
Glasgow
22-23 October
Feltham, West London
5-6 November
Manchester
26-27 November
Birmingham
Infectious Substances by Air (DGA5)
17 November
Elstree
Carriage of Lithium Batteries by Air, Road & Sea
(modules available individually)
14-15 September
Feltham, West London
FREIGHT FORWARDING AND
INTERNATIONAL TRADE
Exports for Beginners (EXP1)
16 September
Feltham, West London
28 September
South West England
9 November
Feltham, West London
Imports for Beginners (IMP1)
17 September
Feltham, West London
29 September
South West England
10 November
Feltham, West London
Introduction to Air Cargo (AC1)
26-30 October
Feltham, West London
BTEC Intermediate Award in Multimodal International
Freight Procedures (MFT1)
Commencing 8 September
Feltham, West London
Commencing 24 September Midlands
Commencing 7 October
North East England
Commencing 28 October
Feltham, West London
Sea Freight: The Basics (SF1)
19 October
Feltham, West London
17 November
South West England
Introduction to Letters of Credit
16 November
Feltham, West London
To view course content or to make a booking, go to www.bifa.org and click on training
BIFA is a member of:
#BIFATraining
September 2015
19
BIFA
Freight Service
Awards 2015
Now in its 27th year
Call for Entries
The following categories of the BIFA Freight
Service Awards 2015 are open for entry:
General Categories
Individual Category
Project Forwarding
Award
Young Freight
Forwarder Award
Sponsored by: Peter Lole & Co
Sponsored by: Virgin
Atlantic Cargo
Specialist Services Award
Sponsored by: Forward
Computers
Staff Development Award
Sponsored by: Albacore
Systems
Supply Chain
Management Award
Sponsored by: BoxTop
Technologies
Sustainable Logistics
Award
Sponsored by: Red Recruit
11
Modal Categories
Air Cargo Services Award
Sponsored by: IAG Cargo
European Logistics
Award
Sponsored by: TT Club
Ocean Services Award
Sponsored by: Cargoguide
International
Specialist Categories
Cool Award NEW
Sponsored by: American
Airlines Cargo
Award
Categories
Extra Mile Award NEW
Sponsored by: Descartes
Entry Cost
Submissions’ Deadline
Awards Ceremony
£80.00 + VAT (non-refundable)
per category (no charge for the
Young Freight Forwarder Award)
Friday 9th October 2015 (5.00pm)
Thursday 21st January 2016
from 12.00pm
The Brewery, London EC1
Registrations’ Deadline
Friday 25th September 2015
(5.00pm)
All Young Freight Forwarder Award
entrants whose completed submissions
are received at BIFA by the deadline
date will be entered into a prize draw
to win two Virgin Atlantic flights to New
York, courtesy of the category sponsor,
Virgin Atlantic Cargo. Terms and
Conditions apply.
To enter visit bifa.org/awards > Enter Now
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