ANNUAL REPORT 2014/2015. Doc. 30/296. Glattbrugg, August 31 st Published by FIATA

Transcription

1 ANNUAL REPORT 2014/2015 Doc. 30/296 Glattbrugg, August 31 st 2015 Published by FIATA 1

2 CONTENTS THE STRUCTURE OF FIATA... 4 FIATA PRESIDENT S REPORT... 5 DIRECTOR GENERAL S REPORT... 8 AIR FREIGHT INSTITUTE (AFI) CUSTOMS AFFAIRS INSTITUTE (CAI) MULTIMODAL TRANSPORT INSTITUTE (MTI) ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA) ADVISORY BODY INFORMATION TECHNOLOGY (ABIT) ADVISORY BODY LEGAL MATTERS (ABLM) ADVISORY BODY SAFETY AND SECURITY (ABSS) ADVISORY BODY OF VOCATIONAL TRAINING (ABVT) FIATA FOUNDATION OF VOCATIONAL TRAINING (FFVT) FIATA LOGISTICS ACADEMY (FLA) Registered Office: FIATA International Federation of Freight Forwarders Associations Schaffhauserstrasse 104 P.O. Box 364 CH Glattbrugg Switzerland Phone: +41 (0) Fax: +41 (0) info@fiata.com Website: 2

3 FIATA WORLD CONGRESS, ISTANBUL

4 THE STRUCTURE OF FIATA Presidency President Francesco S. Parisi Italy Immediate Past President Stanley Lim Hwee Hong Singapore Secretary General Heiner Rogge Germany Treasurer Jean-Claude Delen Belgium Senior Vice Presidents Babar Badat Pakistan Huxiang Zhao China Suwit Ratanachinda Thailand Extended Board Chairperson AFI Rodolfo J.C. Sagel Argentina Chairperson CAI Stephen J. Morris Australia Chairperson MTI Robert Keen United Kingdom Chairperson ABIA Babar Badat Pakistan Chairperson ABIT Anne Sandretto France Chairperson ABLM Richard D. Gluck United States Chairperson ABSS David Fielder Denmark Chairperson ABVT Thomas Sim Singapore Chairperson FLA Issa Baluch France Chairperson RAME Basil Pietersen South Africa Chairperson RAMNS Rodolfo J. C. Sagel Argentina Chairperson RAP Chris Kanter Indonesia Chairperson REU Ivan Petrov Bulgaria Vice Presidents Krishnan Chelliah Malaysia Turgut Erkeskin Turkey Paul Golland Australia Robert Kingsford Kutin Ghana Ivan Liptuga Ukraine Stephen Parker United Kingdom David Phillips United Arab Emirates Jens Roemer Belgium Antonella Straulino Italy Keshav Tanna India Peter Yang Chinese Taipei Sergey Zhelannov Russian Federation Secretariat Director-General Manager AFI, CAI, RAP Manager ABVT, FLA, RAMNS Manager ABLM, MTI, REU Manager ABIA, ABIT, ABSS, RAME Administration Executive Assistant FIATA Foundation Marco L. Sorgetti Daniel Bloch Verena Schaer René Zimmermann Bassil Eid Barbara Wieser Lanlan Gu Aldo da Ros, President Barbara Wieser, Secretary 4

5 FIATA PRESIDENT S REPORT The term of my Presidency is soon coming to an end and this report covering the period 2014/2015 culminates the major points and achievements during my two year term as FIATA President. To start, I would like to once again underline the top management of FIATA as being very much a team driven by the seven members of the Presidency and the Director General. The largest number of important decisions constantly undergoes a lively debate between the members of the Presidency and deliberations are taken when there is a consensus. Allow me to highlight that not one single decision during the past two years has been taken upon majority, but for all decisions we always have reached unanimity, which, in my opinion, is a remarkable sign of constructive efforts made by all members of the Presidency. The passion for FIATA and the need for change were evident For this reason it is my firm belief that the Presidency has to meet in person at least every quarter, four times every year (two more times in addition to Headquarters Sessions and FIATA World Congress), even if this frequent travelling from different continents represents a cost factor for FIATA. The most important deliberation reached by this Presidency was the conclusion of a very intensive debate which had started in previous years. It was the proposal to change the location of the FIATA Secretariat from Zurich to Brussels. This deliberation was based on a thorough study with the aim to improve the effectiveness of our Federation for its members. It was presented at last year s October General Meeting in Istanbul. This deliberation was not adopted by the General Assembly by a handful of votes required to meet the 2/3 majority, the motion was consequently rejected. The result of this vote as well as the various comments expressed during the General Meeting however did clearly show a strong demand by the members to open a debate among our constituents for the planning of the Future of FIATA. 5

6 At this year s HQ Meetings in Zurich during March, an entire afternoon session was dedicated to start the debate about FIATA s Future. The Presidency employed the help of 3 non-presidency members as facilitators to coordinate the debate, which witnessed participation by a very large number of delegates. Quoting from the report prepared by the facilitators their passion for FIATA was evident and the need for change was readily evident. The Presidency is convinced this session will be slated as a milestone in the history of FIATA, an 89 years young Organisation engaging in a rapidly changing environment, requiring, like any other organisation or company in the world, a constant effort to innovate and provide new value added to its members. The process is on-going defining short / medium / long term priorities which will be implemented or brought to deliberation with the appropriate organs within FIATA in due time. The Presidency has shared the view of the facilitators to establish an ad hoc working group under the leadership of the Secretary General to act as a think-tank providing the Presidency with structured proposals of innovation. This mostly important debate has absorbed minimal resources from FIATA and as it continues to evolve should deliver the best services for our members. Among such services, as already expressed in my report in the previous year, we have to again mention TRAINING and EDUCATION as the most successful and strategically important product delivered by FIATA to its members. To further strengthen this area of services performed in the most professional manner by ABVT and also working in conjunction with the FIATA Foundation we have launched at last year s FWC a new body, FLA (FIATA Logistic Academy), to enhance FIATA s activities in the area of education, select new educational products to be offered to members and develop new learning techniques for our industry (like e-learning). In addition, at last year s FWC we announced the establishment of ABIT (Advisory Body Information Technology) to keep FIATA at the centre of the on-going debate on IT connectivity and digitalization of transport and transport related documentation; another strategic area of great importance where FIATA must be involved in the discussion especially in the interest of our SME membership base. FIATA s activities in advocacy with International Organisations has been particularly intensive thanks to the continuous attention and coordination by last year s established ABIA (Advisory Body International Affairs), culminating in the side event on connectivity organised by FIATA (together with CLECAT) at this past year s ITF Summit 6

7 in Leipzig held in March. Representatives of many major International Organisations were present as panel speakers invited by FIATA. The above enhanced activity and collaboration with International Organisations has convinced the Presidency at its last quarterly meeting in Milan to establish a new ad hoc Working Group, which has been named WGSL (Working Group on Sustainable Logistics) to transversally oversee this most important aspect of the international debate surrounding trade, transport and logistics. At the current stage of writing the report, we unfortunately cannot deliver news about the continued negotiations, covering almost 3 years, carried on by AFI with IATA for the Cargo Agency Modernization Program. AFI and the Presidency are still waiting for a legal opinion/report on competition compliance of the new program draft by an outside legal firm assisted by ABLM. Finally I wish to extend many thanks to all those who have contributed in carrying this quite enlarged workload, the DG and the staff members, as well as all those volunteers from different parts of the world who are willing to invest their time, knowledge, experience and resources for the benefit of FIATA and our industry world-wide. Francesco Stanislao Parisi FIATA President 7

8 DIRECTOR GENERAL S REPORT Another year has gone and there was certainly no time to spare between last summer and this one, one event tailing into another and one policy document following another, I daresay as it should in an association like FIATA. Looking at the public side, in October 2014 we have lived one of the most successful congresses in recent times and I wish to renew my thanks to our Turkish friends and congress hosts for their generous cooperation. Let us hope the same benign star assists our friends in Taipei with equal, if not superior success. From our side we have done all that we could to assist them and show our appreciation for their efforts in trying to bridge all possible roadblocks and difficulties. The artillery provided by the newly adopted Congress Protocol will certainly allow the new bidders to put together first-in-class congress events in future, starting from Dublin in Thinking of formalities and documents let me state for the record that new Rules of Procedure have been adopted by RAME and new Terms of Reference are ready for the FLA and the FIATA Congress Committee. These were prepared in cooperation with the Chairs and are major steps in the direction of regularity and conformity with the Statutes. Speaking of Statutes, the entire election and nomination process has been re-read in light of the applicable Statutes and all steps have been taken to ensure the greatest transparency throughout the constituency. I must thank the Secretary General and the President for their continuous support in this action which has ensured a remarkable list of nominees, and all of it being ready almost one entire month ahead of normal times. Participation and passion for FIATA is all the director asks from you and I know there is plenty of it FIATA is all about membership and I have to say the generosity of our members has been astonishing. The extremely successful EBOLA fundraising started in Istanbul in October 2014 has collected some 100,000.00= USD and delivered these evenly to the Red Cross/Red Crescent and Médecines sans Frontières. This has indirectly produced quite some visibility for FIATA, which has been seriously invited at the table of the main contributors to the defeat of EBOLA. Membership is everything, as I said, and it is solid: the number of association members is substantially unchanged, whilst the number of individual members reached in 2015 close to 5400, with some defections in particular in Europe and in Asia. It has to be registered that the cut should be connected with a more accurate control on the payment of fees, which allowed us to focus on those members that had not paid up their fees by year end. A better use of our IT resources in the future will also enable us to focus on the areas of the world where a successful canvassing action seems more likely to deliver results. 8

9 Membership also has to deal with the protection of our products, our name and our logo. This is an ongoing task that I wanted to launch in 2012 and is now procuring value to our members. It is not a complicated task, but it involves a safe process and collaboration with all members. Those who see our name and logo being misused are invited to notify the Secretariat and seek protection. With regards to advocacy FIATA has been extremely active, a number of positions have been adopted and we have been in permanent dialogue with UN bodies, the ICAO, the WTO, the WCO and other international bodies such as IATA, IRU, UIC as well as remaining aligned with CLECAT on many issues of EU relevance. We have a revamped position now with the ICC and this is due to the fortunate combination of having had the opportunity to benefit from more permanent dialogue as well as having been able to count on the cooperation of many experts within our ranks. Looking at our positions, we are preparing a summary of our recent public positions, which will be printed in conjunction with the Taipei Congress. This will probably make interesting reading for all members, but it is also an article all association members can use in their own advocacy work in their respective countries and territories. The FIATA agenda is as big as ever, or more, dictated by the multimodal nature of our work and it is one of the largest in existence in transport related affairs. The thematic reports that the Chairs have provided will tell you much of the achievements in the various sectors of our activities that span through transport modes, Customs and Trade Facilitation services, Safety and Security as well as Vocational Training and public relations activities. In addition to the more traditional bodies, the Advisory Body Information Technology having been re-established is now working at full speed, especially on the efbl project, which is a crucial development for the future, a development that members should consider with greater emphasis than they do at present. The Advisory Body International Affairs opened its wings for a long flight into the advocacy medium; the FIATA Congress Committee has been structured as a fully-fledged Standing Committee of FIATA; the FIATA Logistics Academy has also been created and is now starting to produce materials for review, including its own Terms of Reference, which required some re-reading considering the rather particular nature of this body. Both new bodies have been absorbed 9

10 by the existing structure of the Secretariat without any particular injection of additional resources. In addition to this rather conspicuous body of policy missions, we have just decided to create an ad-hoc Working Group on Sustainable Logistics that I shall have to personally manage, in the absence of alternatives for the time being. My way of seeing this is ambivalent: it is a practical demonstration of the flexibility of the FIATA structure, but it is also the symptom that we are trying to exploit new areas of business at times without the required budget. In this light it is my view that the issue of expanding our intake through new initiatives will be crucial in the future, so that new investments can be made. As we said last year, FIATA had been strong in advocating for Logistics Connectivity with a view to including the concept in the Sustainable Development Goals for the Post 2015 Development Agenda. The message has been received with great interest at UN level and we have seen a great surge of advocacy activities in New York and Geneva. The extempore creation of new pressure groups has at the end watered down the power of our primary message and created a very wide variety of different, less focussed mantras. Rich in hopes, whether it is realistic that all these come to fruition time will tell. 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, ABIA news (recently created) and the FIATA review are running without too much sweat. A greater emphasis is to be observed on the Dispute Resolution mechanisms, such as the FIATA arbitration rules, where FIATA is the only body within our sector that is able to offer assistance. Were I to judge by the number of instances where FIATA is approached by members in dispute, this is perceived by members as something useful. Regrettably disputes often stem from insufficient instructions or missing contractual elements. It is obvious that better training and education in transport and logistics would significantly improve the level of our commercial dealings, as well as protect our companies from operational problems and financial loss. This is why the Presidency has wisely identified the area of training as the crucial area for the development of our future strategies and has created the Fiata Logistics Academy to market these initiatives and bring them to all members fruition. In the middle of all these inspirations, the Secretariat is running as fast as ever. Admittedly it works on a lean and mean concept, which has become normal, if not chosen. We have one more person to assist though: she is from a Chinese background, filtered through Dubai, thus making this Secretariat probably the most cosmopolitan in FIATA to date. Working in a multicultural environment is putting some challenges on the table, but it is definitely more rewarding for the director and useful for our members. The insufficiency of resources remains an issue, but we hope the injection of new initiatives will also allow us to build a situation that will give us the ability to work with greater ease. Obviously, the structure of the Secretariat will have to respond to the indications coming from the Future 10

11 of FIATA debate that was launched in March. This process should be coming to fruition by the beginning of next year. If it does not provide the end results yet, it will at least provide the indication of the roadmap which FIATA has to follow for a number of years. Coming to a close my thanks are manifold indeed, the FIATA Secretariat for its general flexibility and support in this past year with its daunting tasks, heated debate and much on the table to keep us all very busy. I wish to thank the Presidency and the Extended Board for their genuine enthusiasm; their engagement in FIATA s work is laudable and precious. I may send a message even way past midnight, but often I get an answer right back and this tells you a long story on how constant and studious these professionals contributions are: they devote time and energy for us all. My most heartfelt thanks for all those countless members that patiently plough along, infallibly pay their fees by the due date, or earlier, and perceive FIATA as their own patrimony. My thanks also to those who pose difficult questions; this is how we learn and get better every day, each one of us in the office of FIATA. Without those who challenge us we would make no progress. Let me also thank the Swiss health system and the Hospitals of Bülach and Bellikon, which contributed to putting me back on my feet after a serious accident in January. Participation and passion for FIATA is all the director asks from you and I know there is plenty of it around. I look forward to seeing more of you, more intent in thinking of FIATA, as time goes by. Marco Leonardo SORGETTI FIATA Director-General 11

12 AIR FREIGHT INSTITUTE (AFI) Dear FIATA Members, This past year saw the continued negotiations to bring about a new modernised global airline-forwarder relationship program. The IATA/FIATA Air Cargo Program is to replace the antiquated and dysfunction IATA Cargo Agency Program, which has been in place since the 1960 s, prior to the jet age and wide bodied aircraft. We applauded the devotion of both our AFI representatives as well as our airline and IATA colleagues, who have met over twenty times in the past three and one half years, and now look forward to FIATA and IATA coming together to launch the new program over the next 18 months. While there remains a few hurdles still to overcome, completion of a legal review and endorsement of the FIATA Presidency, culminating with a joint FIATA IATA program agreement, those close to the negations are optimistic that it is only a question of when, and not if, the IFACP is implemented. CASS modifications and changes including those to local forwarder financial criteria, grace periods, financial security and settlement periods continue to be monitored by AFI. Our IATA-FIATA Consultative Committee representatives, review all CASS proposals in advance of their submission to the IATA Cargo Agency Conference for that body s endorsement. AFI routinely recommends and often wins the support of the airline IFCC representatives to stop proposals which have not been processed in accordance with IATA Resolutions and CASS rules, or local consensus from FIATA Association members was not obtained. 12

13 The ICAO-FIATA Transport of Dangerous Goods by Air training program continues to grow with new training schools joining in the past 12 months, and talks are ongoing with ICAO to further expand our cooperation with ICAO. With the establishment of the FIATA Logistics Academy (FLA), AFI has collaborated with FLA to deliver a Lithium Battery online training program, guidelines for forwarders in handling lithium batteries, and establishing a basic air cargo training course. GACAG the Global Air Cargo Advisory Group enters its fourth year with IATA taking on the group s administrative functions. GACAG brings together FIATA, IATA, TIACA and GSF, to lobby regulators on matters affecting the air cargo supply chain in the areas of safety, security, ecommerce, facilitation and the environment. In addition an ad-hoc working group has been formed to focus on ICAO and WCO lead discussions on the implementation of Pre-Loading Advance Cargo Information (PLACI). We welcome all FIATA members to attend the AFI meeting in Taipei on Friday September 11 th, to learn in more detail the actives of your Air Freight Institute. Rodolfo J. C. Sagel Chairperson, Air Freight Institute 13

14 CUSTOMS AFFAIRS INSTITUTE (CAI) As the world economies continue to struggle, one of the pleasing outcomes for international trade and in particular, service providers to international trade logistics and supply chain management, is the implementation of the World Trade Organisation (WTO) Agreement on Trade Facilitation (ATF) which arose from the Ministerial conference in Bali in December The implementation of the ATF can only be seen as a positive sign in trade facilitation. The simple concept of Trade Facilitation will however challenge many border agencies in developing appropriate frameworks to meet the legitimate needs of trusted traders and their service providers in delivering on facilitation with anticipated cost reduction while still maintaining, what most border agencies perceive as their core function, compliance and control. Having previously commented upon the ATF in the Annual Report 2014, it is timely to remind members that in the World Customs Organisation (WCO) instruments, tools and key administrative options to deliver on the ATF initiatives already exist, the key being the Revised Kyoto Convention. Members are encouraged to develop a close and effective working relationship with the respective Government department and/or regulatory agency (cies) responsible for international trade and ensure they are empowered to implement trade facilitation arrangements by taking up the WCO and WTO instruments. What is clear in this aspect is that trade facilitation is not necessarily the policy mandate of Customs administrations and/or What is clear in this aspect is that trade facilitation is not necessarily the policy mandate of customs administrations and/or other border agencies... other border agencies, and the work of FIATA with the WCO and the WTO for member economy uptakes during this implementation phase is critical. One of the key elements of the ATF is encompassed in Article 13.2 where each member state is to establish and/or maintain a National Committee on Trade Facilitation (NCTF) or designate an existing mechanism to facilitate such arrangements. To this end, it is suggested that parties turn their attention to the United Nations Economic Commission for Europe Centre for Trade Facilitation and Electronic Business adoption of Recommendation 4 (ECE/Trade/242) which noted that Government should establish and support national trade facilitation bodies with balanced private and public sector participation with the key objectives of: identifying issues affecting the cost and efficiency of the countries international trade develop measures to reduce the costs and improve the efficiency of international trade, and assist in the implementation of those measures 14

15 What is referenced in both the ATF and this Recommendation is the requirement for cost efficient and cost effective measures in international trade, and to this end, FIATA encourages all of its members to take early steps to address these Trade Facilitation issues. Notwithstanding the work on the ATF, there remains the need for ongoing and meaningful discussions with relevant governmental and non-governmental international bodies to address other trade initiatives. FIATA continues its work with the WCO (and is well received by that organisation) on collaborative approaches on a variety of initiatives. From a border security aspect, the work undertaken by FIATA with other industry associations in the WCO/International Civil Aviation Organisation work on advanced cargo information as it relates to airfreight (addressing the United States Department of Homeland Security initiative on air cargo preload screening for security). FIATA notes there is much to be taken from the work previously undertaken in a sea freight environment through the United States Customs and Border Protection Importer Security Filing (colloquially known as the or the 24-hour load rule). This airfreight work is being undertaken by the Joint Working Group on Advanced Cargo Information (JWGACI) on which FIATA is a member. Such work underpins the WCO Authorised Economic Operator concept as to supply chain security and it is not difficult to envisage that with further enhancements both the FIATA encourages all of its members to take early steps to address these trade facilitation issues. 15

16 security and Customs data will soon be able to be provided prior to the loading of cargo. This in turn can lead to a change in business practice where imported cargo can be cleared from a security perspective and also, if desired, entered for Customs purposes (fiscal and community protection issues) prior to the cargo being loaded onto, in the first instance, a vessel or aircraft for uplift. There is no reason, save for noting time constraints, for such arrangements not being able to be integrated into road and rail. Information technology is now providing the opportunity for both the public and private sector to reassess border control and clearance to facilitate international trade. On these and other matters, the Customs Affairs Institute (CAI) through its membership and/or work with a variety of action groups through the WCO, WTO, and ICAO, now provides this information and data to FIATA Association Members to enable them to work with their own domestic regulators on initiatives. As previously expressed in my report to members, I would like to again thank the FIATA Director-General Marco Sorgetti for his work, particularly in interfacing with the WCO on the Private Sector Consultative Group of which FIATA is an active participant, Manager Daniel Bloch, all members of the Secretariat and FIATA members for their support. The work of the Customs Affairs Institute is as complex as it appears simple and in this regard, I as Chair am always seeking those who have an interest in border compliance and control matters to join in the work of the team. Stephen J Morris Chairperson, Customs Affairs Institute 16

17 MULTIMODAL TRANSPORT INSTITUTE (MTI) The past two years seem to have flown by and it hardly seems like any time at all since I was elected to be the Multimodal Transport Institute Chairman back in I could not have taken over the Chairmanship of MTI at a better time with three stable working groups quietly working on industry problems under the excellent stewardship of my predecessor Christopher Gillespie of Canada. The challenges in our industry are constant and no sooner than we have seen the back of one problem than another appears on the horizon. The unstable political issues in Russia have exercised the Road Working Group (WG) recently with all of the issues concerning TIR carnets and then as some stability emerged the German minimum wage legislation occupied the WG agenda for the past six months. The advances with intercontinental freight trains are a great success for our industry and a clear sign for future growth whilst on the maritime front we are all wondering how the International Maritime Organisation s (IMO) changes to Safety of Life at Sea (SOLAS) Convention will be introduced globally next year. Since my last report we have held a highly successful session at the Istanbul World Congress with some top quality speakers and the headquarters session in March again provided a lively and informative session. The Multimodal Transport Institute meets twice a year, at the FIATA Headquarters session in March and at the FIATA World Congress venue. The backbone of MTI is the working groups led by three experienced Chairmen. The agenda of the Working Group (WG) Rail under the chairmanship of Dr Ivan Petrov is versatile and includes several formats which allow global coverage. As guests speakers to the FIATA World Congress held in Istanbul were invited Ralf-Charley Schultze (UIRR) and Erik Evtimov (CIT), representative of partners organisations with which we cooperate. Also during the Istanbul Congress a premeeting with UIC was held on creation of an enlarged 17

18 joint working party on rail corridors Europe to Asia. At the CLECAT/FIATA meeting (held on 6th November last year) in Brussels we had participation of Ferrmed and UIRR with which we established cooperation for joint position papers, as well as participation of Dr Gerhard Troche from EC (DG Move). The agenda was fully focused on the current and future action plan of rail topics within the EC and Parliament. A Global Transport Experts (GTE) meeting was held in Brussels on 26th November 2014 organised by UIC with a specific agenda item on Euro-Asian corridors of rail. In February of this year a CER meeting together with the EC on rail corridors East-West and their connections to CIS and China was held in Brussels. The Global Transport Experts (GTE) of UIC meeting held in Prague on in March of this year was dedicated to Euro- Asian corridors and there was a good presentation of FIATA done by Mr Radim Prohazka. Later, in April of this year a workshop on User-Friendly access to information on last mile infrastructure for rail freight was held in Budapest. On 23rd and 24th April an enlarged WG Rail meeting of UIC/FIATA was held in Vienna and was attended by more than forty experts from China, Georgia, Kazakhstan and many others from all over Europe. This event was evaluated as a big success and was attended by the President of FIATA Mr F. Parisi and the Director Freight of UIC Mr Kersten. The meeting ended with a brain storming session, as well as a common declaration: 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 Intercontinental Rail Freight Corridors (IRFCs) might consist of different regional corridors (e. g. Trans-Siberian Corridors and New Silkway Corridor or European Rail Freight Corridors in EU member states) to which different regulations apply. Therefore, UIC and FIATA call on the authorities responsible for concluding, implementing and enforcing agreements on such IRFCs that in the relationship between the respective owner/manager of the infrastructure and the freight operator a common legal regime shall ensure that the following principles be observed: Non-discriminatory access to the infrastructure along the entire corridor; One Stop Shop, i. e. a joint body to requests and to receive answers, in a single place and in a single operation, regarding infrastructure capacity for freight trains crossing at least one border along the freight corridor; Interoperability (both of technology and of operational rules); free access of every stakeholder to all information concerning track access Both parties should promote advantages of IRFC; UIC & FIATA regularly inform their members about actual situation in IRFC and potential of development; 18

19 Both parties would promote initiatives in corridors development in International organisations and bodies, form suggestions of development and implementations of the best practices; Make efforts to form balanced freight flows on IRFC to minimize empty runs; Suggest decisions for border-crossing facilitation. As I write this report we are anticipating the participation of Mr Radim Prohazka as a speaker at a conference, organised by UIC in Paris, with regard to the requirements of the process of loading into different wagons, as well as the participation of our Chairman Mr Petrov as a speaker to a seminar organised by EC, DG Move on Corridor customers views and expectations on co-operation between EU Rail Freight Corridors and OSJD rail Corridors. In conclusion you can see that the WG Rail has had a full agenda and I commend their enthusiasm and tenacity. Working Group Road under the Chairmanship of Kostas Sandalcidis has also had a full agenda. On 1 st of January 2015, 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 (cabotage, international transport operations to and from Germany, transit). The employee receives the amount of EUR 8.50 for each hour of work on German territory (driving and other activities recorded by the digital tachograph as work). The law contains an obligation that employers report to the Bundesfinanzdirektion West in Cologne at least every six months by submitting business operation plans involving movements of workers in Germany for the next period (maximum six months). These plans need to be sent before the driver arrives in Germany and they have to mention the start and probable duration of activities and the details (last name, first name and date of birth) of the probable employee who is going to work on German territory. The first registration of transport companies has to be accompanied by a letter certifying that, upon request, employers will provide proof that the minimum wage was paid to the driver. This proof of minimum wage payment should be provided in the German language. Transport operators (but also freight forwarders and shippers) are liable for their subcontractor s compliance with the obligation to pay minimum wages to their employees. Infringements can be penalised between EUR up to EUR This National Regulation is unjustified and excessively burdensome with regards to international transports (bilateral, transit and between the Federal Republic of Germany and other countries). The Working Group decided to monitor further developments and the European Commission has since started an infringement procedure In previous reports we have informed you about the truck blockades at the borders between Turkey and Romania. With new legislation in Romania authorities intend to start a more strict control on transiting Turkish hauliers which have rented their trucks to third 19

20 parties. It was reported that the only remarkable cross-border problem seems to be between Turkmenistan and Iran on both sides. TRANSPark is a free-of-charge IRU app which is available in 9 languages that helps commercial drivers and road transport managers search, locate and contact over 4,000 parking areas in some 40 countries worldwide. It lists the security features and amenities available within each parking area and adds an extra level of security and comfort for drivers, who have to follow strict driving and rest time rules that sometimes force them to stop at unsafe roadsides or insecure parking areas. The WG is in favour of this system and strongly recommends using this tool. Unlike international transport, in the EU cabotage falls under the scope of Directive 96/71/EC on the posting of workers, according to which a worker providing services on a temporary basis to another Member State must benefit from local conditions of employment in terms of: a) maximum work periods and minimum rest periods; b) minimum paid annual holidays; c) minimum rates of pay, including overtime rates; d) health, safety and hygiene at work. The European Parliament did not formally oppose cross border circulation of longer and heavier vehicle but they asked the EU Commission to carry out an assessment by 2016 of the existing practices in Member States and to evaluate the impact of the use of those vehicles before revising the current rules. Further to the official extension (26 th of February 2015) of the agreement of the Russian TIR guaranteeing association ASMAP until 30 th of June 2015, the WG Road Transport welcomes the positive outcomes of a meeting held between the Russian President s Administration and IRU, where all relevant federal executive authorities and ASMAP representatives discussed the application of the TIR Convention across the Russian Federation s territory. As a result, President Putin has issued a "List of instructions aiming at ensuring the functioning of the Customs Convention on the International Transport of Goods under Cover of TIR Carnets (TIR Convention, 1975) on the territory of the Russian Federation. This is of course a very positive development, and additional proof of the increasing importance of the TIR Convention for facilitating and securing trade in Russia as well as across the entire Eurasian region and beyond. FIATA and IRU of course welcome the very clear and decisive instructions given by the Russian President. However, considering the lack of further details at this stage, vigilance remains in order. It could be possible that practical problem could still occur at border-crossing points in Russia in the near future until the new instructions are fully implemented. 20

21 FIATA and CLECAT strongly urge all involved parties to take the final and necessary steps in order to resolve this TIR difficulty. Working Group Sea under the Chairmanship of Jens Roemer last met in Valparaiso, Chile in February. Being a global trade FIATA is grateful to the Associations that have invited the WG to visit their country or region. WG meetings give the host country an ideal platform to represent themselves as well as FIATA to the local business community and to local officials. Also in Valparaiso we enjoyed a seminar with presentations by high ranking officials from Customs, the port authority, government officials and the port community system. FIATA has been providing updates on the proposed legislation for the verification of container weights for the past three years and has resolutely held the view that imposing restrictions on all container traffic (the vast majority of which is legitimate) is wrong and that there should be greater use of intelligence and sanctions against shippers that offend. But at its 94 th 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 enter into force in July It is our view that this does not add anything to safety of containers at sea, it will only add to extra costs and administrative burden to shippers around the world with consequences to global supply chains. There has been feedback from various countries and dialogue sessions between the stakeholders and relevant government authorities have started. However, at this stage I am not aware of any decisions taken. Not surprisingly, the main discussion is about Method 2, with some countries however resolutely insisting on 100% container weighing (for example Malta and Spain). In the European Union, CLECAT together with CEFIC, ESC and Global Shipper Forum (GSF) is lobbying their government authorities to accept existing process methods for establishing a verifiable container weight. The focus is on the acceptance of documented weighing Method No.2: The shipper (or, by arrangement of the shipper, a third party), may weigh all packages and cargo items, including the mass of pallets, dunnage and other packing and securing material to be packed in the container, and add the tare mass of the container to the sum of the single masses using a certified method. In addition, Method No.2 is subject to certification and approval as determined by the competent authority of the State in which the packing and sealing of the container was completed. 21

22 procedures which meet the criteria set out by the competent authority. Container weights provided by Shippers operating in accordance with audited Quality Management Systems, Authorized Economic Operator documentation and ERP (Enterprise Resource Planning) data should be regarded as acceptable for the competent authority s approval. They also suggest five steps to be taken for the calculation of the gross weight and an acceptable deviation of the total gross weight by 5 %. In addition the document makes reference to the timely provision of the verified gross weight of the packed container to the shipping line. The WG has as usual been active with a number of bodies such as the International Chamber of Commerce (ICC) and UNECE (United Nationals Economic Commission for Europe). The work as part of the group of experts dealing with the revision of the UNECE/IMO (International Maritime Organisation)/ILO (International Labour Organisation) Guidelines for Packing of Cargo Transport Units is now complete and the final revision has been agreed. With the ICC there is work in assisting with drafting of a new Q and A for frequent questions regarding Incoterms As always I extend my thanks to Chairmen and members of the working groups and the wide range of experts that attend our meetings. MTI is your Institute and as FIATA members we welcome your comments and suggestions on issues that are of concern to you. The enclosed topics are only a small part of the range of issues that the working groups get embroiled with and we have a wealth of experience with the individual advisors. If you feel you can add to the expertise in the working groups please contact the FIATA Secretariat. Robert Keen Chairperson, Multimodal Transport Institute 22

23 ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA) The Advisory Body International Affairs (ABIA) celebrates its first year anniversary. The body, which was established with the objective of enhancing FIATA s visibility and presence with all relevant international and multilateral organisations and the mercantile community in general concerning logistics & connectivity, has been successful in achieving its ambitious targets. With jurisdiction spanning to the United Nations, its bodies like UNCTAD, the World Bank, Asian Development Bank, African Development Banks, WTO and others, ABIA has made its presence known by opening dialogue and preparing cooperation agendas as well as highlighting potential working strategies with these institutions. Within a few months in operations, ABIA secured a Memorandum of Understanding (MoU) with the World Bank which was signed at its first official meeting at the 2014 FIATA World Congress in Istanbul. The MoU outlines potential collaboration initiatives between both organisations from advisory services on investment opportunities to capacity building projects related to training. In addition, to the World Bank MoU signing, the ABIA meeting hosted a first delegate from the Asian Development Bank (ADB). Since then, discussions have ensued with ADB on outlining areas of collaboration where our respective contributions would add value to logistics development in the area. ABIA has also made it a point to look at the emerging markets of Africa. At the beginning of the year, ABIA took contact with the Africa Development Bank (AfDB) which has shown an interest to work with FIATA and participate in one of our upcoming ABIA Meeting. The body s considerable effort is focused on advocacy towards the United Nations. When ABIA first connected with the UN on the Sustainable Development Goals (SDG) process, logistics had not been taken into consideration. ABIA advised that trade and logistics was a missing component in the Millennium Development Goals (MDGs) not being fully implemented by Member states. 23

24 With this information, over the past 12 months FIATA has been actively advocating for more inclusion of logistics connectivity, to the Open Working Group on Sustainable Development (OWG) and to the international community. Our work started with an Open Letter to the United Nations Commission on Sustainable Development which highlighted the need to include the concept of logistics connectivity in the upcoming SDG process. Following up the letter, we have participated in multiple international events hosted by the UN and UN partners and have articulated our message in further detail. Our work culminated into a Position Paper advocating for more emphasis and focus be put on logistics connectivity in the OWG s Proposed Goals and Targets Document which outlined 17 SDGs and 169 targets. Our most recent event at the International Transport Forum collected major stakeholders in a discussion of connectivity through logistics, to deliver a strong message prior to the UN Summit where the SDGs are to be ratified. Later we published an additional message tailored to the UN High Level Political Forum which has been picked up by the Post 2015 Process for consideration by Member States at the forum in July. In addition to our work with on logistics connectivity, as sustainability becomes more of a key focus throughout international forums there comes a greater need to dedicate resources, more specifically a division, towards ensuring FIATA is included in the discussion. Understanding this importance, ABIA established The Environment and Sustainability Issues in Logistics (ESIL) section to work in conjunction with international organisations within the United Nations, other, NGOs and civil society groups to ensure that logistics is put at the forefront of sustainability when designing targets and goals. With the accumulation of these initiatives, ABIA aims to extend its reach out into the international community and deepen its access into discussions. As an international organisation, we have an obligation to connect at the international level if we are to influence meaningful change throughout the logistics industry. Moving forward into our second year we look forward to working more closely with our Association Member network to take into account their local challenges and needs and identify how ABIA can assist at the international level. We very much appreciate the support from FIATA s membership in our first year and we look forward to dealing with the upcoming challenges with their continued support. Babar Badat Chairperson Advisory Body International Affairs (ABIA) ABIA aims to extend its reach out into the international community and deepen its access into discussions. 24

25 ADVISORY BODY INFORMATION TECHNOLOGY (ABIT) I am very pleased to have the opportunity to write the first Annual Report on our recently established Advisory Body Information Technology (ABIT). Being our first year, we are very much looking forward to booting up FIATA s agenda on the topic of IT and engaging members in our activities. ABIT s agenda already encompasses an array of different topics from practical projects to standard setting initiatives. We view the field of information technology in two sides. The first is the need to work closely with UN/CEFACT, ISO and other technology standard setting organisations to ensure that technology used throughout the logistics industry is taken into consideration when new standards are proposed and implemented. ABIT ensures its involvement on projects undertaken by UN/CEFACT s Transport & Logistics Domain (T&L D) and the International Trade Procedures Domain (ITPD) to ensure that the voice of our industry is heard in discussions both on business needs and on standards setting. The other side is the need 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. In order to tackle these two varying field, ABIT has split its structure into two working groups. The first is the Working Group on International Standard Bodies which will work with UN/CEFACT and standards and the Working Group on Practical Project which will focus on FIATA IT projects. It did not take long for these working groups to start. Already less than a year and ABIT is working with UNCEFACT Standard setting units on the Trusted Transboundary Project and the Single Window Interoperability project. ABIT is participating in teleconferences and meetings to provide input from our industry s points of view in order to ensure that when such technological initiatives are implemented by governments they do not overlook the needs of the freight forwarding industry. In addition, we have also started work on a third standards project which I have the honour of co-chairing. The Multi-Modal Transport (MMT) aims to offer an implementation tool for users as a subset of CEFACT Core Components applicable to transport in the form of a 25

26 structured data base taking into account the security/safety aspects in relation with the Customs. From a practical point of view, FIATA s ABIT is 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 much interest from FIATA s membership to have an electronic version of the FBL on the market. Our goal this year will be to successfully introduce CargoDOCS to a shipper which can then relay their experiences in trialling the software. This successful case could then be replicated to other shippers and increase the e-fbl availability to forwarders. We look forward to working with essdocs and developing the project further throughout the year. ABIT is also actively monitoring a pilot project between a technical vendor called EDI Kale Logistics and FIATA s Thai International Freight Forwarders Association (TIFFA). The pilot project utilizes Kale s Logistics EDI system to facilitate the electronic data exchange between forwarders and airlines. Currently, there have been approximately 6,000 EDI messages exchanged successfully for 668 shipments during the pilot project. This year, EDI Kale and FIATA will be examining areas of expansion for the Kale project to potentially newly interested Association Members. The recent two FIATA sessions, 2014 World Congress and 2015 HQ Session, where great opportunities for ABIT to showcase our goals and present this ever emerging field to FIATA delegates in order to understand their needs and how we can best serve them within the With the digital economy growing ever more important and constant adoption of technology throughout the logistics and freight forwarding industry, there comes much demand for FIATA to enter into this field. advisory body. With the digital economy growing ever more important and constant adoption of technology throughout the logistics and freight forwarding industry, there comes much demand for FIATA to enter into this field to ensure their voice is heard. 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 continued growth throughout Anne Sandretto Chairperson Advisory Body Information Technology (ABIT) 26