July 2016
www.bifa.org
BIFAlink
Issue: 311
The magazine of the
British International
Freight Association
INSIDE
Insider
Threat
– See pages 10-11
Follow us @BIFA
9: Policy &
Compliance
Common European
rules to enhance
road safety
12: Profile
PSL invests to
develop rapid
response service
15: Legal Eagle
BIlls of lading
17: Policy &
Compliance
IATA reminds cargo
agents to submit
DG certificates
www.bifa.org
BIFAlink is the official magazine of the
British International Freight Association
Redfern House, Browells Lane, Feltham
TW13 7EP Tel: 020 8844 2266
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(A company limited by guarantee.
Registered in England: 391973.
VAT Registration: 216476363)
Director General
Robert Keen
r.keen@bifa.org
Manager Policy & Compliance
Robert Windsor
r.windsor@bifa.org
Policy & Compliance Advisor
Mike Jones
m.jones@bifa.org
Member Services Manager
Spencer Stevenson
s.stevenson@bifa.org
Training Development Manager
Carl Hobbis
c.hobbis@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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Contributors
Robert Keen, Robert Windsor, Mike Jones,
Spencer Stevenson, Carl Hobbis, Sharon
Hammond
Regional Consultants to BIFA
Scotland, Northern Ireland and the
Borders
Jim McCall j.mccall10@btopenworld.com
Midlands and the North
Paul Young
youngyes@aol.com
London West and the South West
Colin Young
young_colin.t21@btinternet.com
Anglia, London East and the South
East
Paul Newman – paul@pnauk.com
Subscription rates:
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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.
July 2016
Robert Keen’s Column
BIFAlink
Know your customer
This magazine should arrive with you around the first day of each month, so we finally
reach July 2016 and the introduction of the SOLAS amendment requiring transmission
of the verified gross mass (VGM) of shipping containers before loading. The catalyst for
the change was the abandoning of the MSC Napoli in the English Channel just over
nine years ago. The subsequent report on the loss identified that many containers were
overweight and, following lobbying by the World Shipping Council, the International
Maritime Organisation made the legislative change.
Researching the subject recently, I noticed that it was in April 2011 that we started
writing articles on the subject, so your Trade Association was working on this over five
years ago. Unfortunately, not all parties were as aware, hence the scramble to get prepared
in the past year. The recent announcement of a three-month ‘grace period’ will assist but this is still a major
challenge facing the industry.
We have received quite a few calls recently regarding abandoned containers and forwarder liability. This is a
recurring issue and information has previously been published in BIFAlink regarding many scenarios on the rights
of shipping lines and the reliability of some of the customers that BIFA Members undertake work for. I urge you to
review your procedures and ensure all staff understand the obligations that you can be exposed to if things go
wrong. Each month I look back at my DG Column from a year before and, coincidentally, in July 2015 I was also
talking about this topic.
A typical example is where a BIFA Member has moved a container of goods on behalf of another forwarder or
the buying agent of an overseas party. It could be wastepaper to Pakistan or used cars to West Africa, but the
problem we hear about is always the same. The containers are stuck at destination on demurrage and the
consignee cannot be contacted. The UK forwarder turns to his customer to find that the shipper has
disappeared. In one recent enquiry, a BIFA Member was being asked for nearly £7,000 for a useless commodity
for which he had earned just a few hundred for shipping.
A familiar line I hear is “our name is not on the bill of lading”. If you have read the article we published a few
times in the past titled ‘Abandoned Containers’ (Nov 2014) and ‘But I’m only an Agent’ (Mar 2013 and Feb
2012), you will understand that you accept liability if things go wrong at destination. Of course, if the BIFA
Standard Trading Conditions are incorporated in the contract your customer indemnifies you for such
outgoings, but that is of no use if the customer has disappeared. The watchword has to be KNOW YOUR
CUSTOMER.
Here at BIFA we are gearing up for the launch of the annual awards and there is further information elsewhere
in this edition of BIFAlink. I am currently perusing reams of information supplied by booking agencies as I try to
identify a suitable host for the ceremony. Over the years we have often used television journalists or presenters,
although we have also had some from the world of sport and I am hoping that for January 2017 we will have
such a host again. There remain some opportunities to sponsor the awards – contact eventsoffice@bifa.org for
information.
As you may know we support the charity Transaid, but before we linked to it the BIFA Board thoroughly
examined how much money went to its work and scrutinised its administration costs. The BIFA Board was
satisfied that Transaid is frugal with overheads (I have visited their offices which are far from glamorous) and
good work is undertaken with the funds raised. On page 9 of this issue of BIFAlink you can see an infographic
on the turnover of Transaid.
Finally, this column is written a couple of weeks before BIFAlink publication so as I am typing away in midJune I can finally mention the word Brexit, which regular readers may have noticed has not been seen in the
magazine so far this year. As a trade association, we adopted a neutral position on the referendum over whether
to leave or remain a member of the European Union, so it has been our policy not to mention the subject either
in print or discussion.
And having finally broached the subject, I still cannot write anything as the vote is 10 days away, although
you already know the result!
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
Drone delivery service
to demonstrate aid role
IN THE AIR
Independent drone delivery service
Flirtey has teamed up with Johns
Hopkins University School of
Medicine in the USA and will
demonstrate the use of unmanned
aircraft in delivering humanitarian aid
to a disaster area by conducting the
first ship-to-shore drone delivery
along the New Jersey coastline.
The International Air Transport
Association (IATA) 72nd annual
general meeting unanimously
endorsed a resolution denouncing
the illegal trade in wildlife and
wildlife products, and pledging to
partner with government authorities
and conservation organisations in
the fight against the traffickers of
endangered animals.
IN BUSINESS
Figures from the Office for National
Statistics, published in early June,
show that UK exports surged in
April to their highest level in almost
three years as Britain shipped more
to countries both inside and outside
the European Union. The 9.1%
increase – the biggest monthly rise
since 2003 – left the trade deficit
little changed at £10.5 billion.
Organic growth in the third-party
logistics (3PL) market is down
SEMI-EXPRESS SERVICES
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48hrs to:
8.9%, year-over-year, for the first
quarter of 2016, according to a
report from ARC Advisory Group.
These numbers, which do not
include the effects of acquisitions,
reflect poor quarterly results from
some of the industry heavyweights,
said the consultancy.
Third-party logistics was dominated
in 2015 by mergers and acquisitions,
overcapacity and sagging fuel
prices, says analyst Armstrong &
Associates in its newly published
report on the sector. Major deals
changed third-party logistics from
mid-2014 through to 2015. While
many 3PL warehouses were full in
2014 and 2015, price competition
restricted value-added warehousing
and distribution to a 2.2% increase
in net revenue for the year.
ON THE OCEAN
Ocean freight rates for cargo
moving under contracts on the
major East-West trade routes fell by
another 18% between February and
May, according to Drewry’s
Benchmarking Club, a closed-user
group of multinational retailers and
manufacturers, which closely
monitor their contract freight rates.
This means that the Drewry
Benchmarking Club Contract Rate
Index, based on average
Transpacific and Asia-Europe
contract freight rate data provided
confidentially by shippers, has now
declined by 29% in the year to May.
Austria, Czech Republic, Denmark,
Northern Italy, Poland, Spain & Switzerland.
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4
P&O Ferries says that its six ships
on the English Channel have now
carried more than 100,000 freight
vehicles in every month since May
2015 – its longest run of high
monthly freight volumes between
Dover and Calais in its modern
history. The ferry operator has
never before consistently exceeded
the 100,000 vehicles mark – the
benchmark figure for high monthly
demand on the English Channel –
for this length of time. The previous
record was seven consecutive
months between January and July
2012.
As this issue went to press, the
container vessel Cosco Panama
was due to create history by
making the inaugural transit of the
expanded Panama Canal on
Sunday, June 26, with full
commercial operations kicking off
the following day.
At the recent TOC Europe event,
shippers outlined the risks posed
by container shipping lines
experiencing financial difficulties
and urged carriers to develop a
wider array of services that they
offer shippers. Speakers admitted
that many shippers have
“celebrated” the lowest freight rates
seen in living memory, but added
that the response of carriers to
consolidate presents huge
challenges to those operating
global supply chains. They called
for shipping lines to imitate the
freight forwarding sector and offer a
greater range of services, as well as
differentiating their service offering
from competitors.
PORTSIDE
Peel Ports has opened the UK’s first
automated steel terminal at the port
of Liverpool and has also confirmed
plans for a second, similar facility at
the port of Sheerness.
OVERLAND
LoCITY, an industry-led programme
helping the freight and fleet industry
reduce its impact on air quality by
increasing the use of Ultra Low
Emission Vehicles (ULEVs), says its
programme has taken its first steps
to improve air quality in London by
publishing data to help increase the
availability and uptake of low
emission vans and lorries. More
than 600 organisations are already
working together on the
programme to make the
widespread use of low emission
commercial vehicles a reality.
July 2016
simplifying the supply chain
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BIFAlink
www.bifa.org
News Desk
FIATA World
Congress,
Dublin –
Special Offer
BIFA has been contacted by our
friends at the Irish International
Freight Association (IIFA) with the
following offer for BIFA Members
intending to attend the FIATA
World Congress in Dublin,
3-8 October 2016.
IIFA would like to extend a
limited discounted rate to BIFA
Members.
The CLECAT group takes a
‘flight’ in the London Eye
London ‘away day’ for
CLECAT Customs Institute
BIFA was pleased to host the Customs and Indirect
Taxation Institute of CLECAT (CITI) on 10 June in
London. The group normally meets in Brussels but
one meeting a year is an ‘away day’ and BIFA
Director Steve Parker, who is also President of
CLECAT, invited the committee to visit London in his
final year as CITI Chairman.
The meeting discussed issues that members have
with the Union Customs Code (UCC), which entered
into force on 31 May 2016. The meeting was dominated
by reaction to the impact of the implementation of the
UCC and a wide ranging discussion followed on how
specific member states are interpreting the legal
provisions. A number of challenges were identified in
various countries, in particular procedures.
In addition, some members highlighted specific
issues which cause difficulties, and which are peculiar
to only one or two member states. Particular areas of
concern include direct representation and the use of
guarantees, sealing under transit and the power of
attorney.
Following a detailed discussion and identification of
problems, it was agreed that the issues would be
highlighted on behalf of the CITI to the Commission,
both on a bilateral basis and in the framework of the
Trade Contact Group. Members of the Customs group
were encouraged to document specific problems in the
implementation and transitional arrangements, and
CLECAT will continue to bring these issues to the
attention of the Commission and to look for quick and
pragmatic solutions that will support the membership.
To make our visitors welcome, BIFA hosted the
delegates from various EU Member States to a ‘flight’ in
the London Eye and acted as tour guides to London
sights. The meeting and visit were a great success and
a credit to BIFA.
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 JOIN BIFA
and you will see a separate page
titled NEW MEMBERS.
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
6
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 are also listing 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 first 25 BIFA Members that
contact IIFA to register for the
Congress will be offered a
discounted rate of £549,
including VAT, for the full
Congress, as a special offer.
This rate is not available via the
2016 FIATA World Congress
website.
Registrations must be made via
e-mail to info@iifa.ie marked BIFA
FIATA CONGRESS
REGISTRATION or by telephone
to Seamus Kavanagh on
00353 1 845 5411.
Full details of the Congress
programme can be found at
www.fiata2016.org
Don’t keep it
to yourself
Remember to circulate BIFAlink
to your colleagues. Not your copy
of BIFAlink? – register for your
own copy by contacting Jane
Robinson in membership
(j.robinson@bifa.org).
BIFAlink is free to BIFA member
companies or available by
subscription to non-members.
July 2016
www.bifa.org
News Desk
BIFAlink
European Commission takes action against
France and Germany on minimum wages
The European Commission
decided to take legal action last
month against France and
Germany owing to the
consequences of the application
of their respective minimum wage
legislation to the road transport
sector.
While fully supporting the
principle of a minimum wage, the
Commission considers that the
systematic application of the
minimum wage legislation by
France and Germany to all transport
operations touching their respective
territories restricts, in a
disproportionate manner, the
freedom to provide services and the
free movement of goods.
Following an exchange of
information with the French
authorities and a thorough legal
assessment of the applicable
French legislation, which became
applicable on 1 July, 2016, the
Commission decided to send a
letter of formal notice to France.
This constitutes the first step in the
infringement procedure.
In addition, the Commission
decided to send a supplementary
letter of formal notice to the
German authorities. This follows the
launch of an infringement procedure
in May 2015 and subsequent
extensive talks with the German
authorities with a view to reaching
an amicable solution.
CLECAT supports EC on legal action
However, neither the reply of the
German authorities to the letter of
formal notice nor the subsequent
discussions have dispelled the
Commission’s main concerns.
In both cases, the Commission
considers that the application of the
minimum wage to certain
international transport operations,
with only a marginal link to the
territory of the host member state,
cannot be justified as it creates
disproportionate administrative
barriers, which prevent the internal
market from functioning properly.
The Commission considers that
more proportionate measures
should be taken to safeguard the
social protection of workers and to
ensure undistorted competition,
whilst allowing for free movement of
services and goods.
The French and the German
authorities now have two months to
respond to the arguments put
forward by the Commission.
Nicolette van der Jagt, Director
General of CLECAT, has
welcomed the European
Commission’s decision to take
legal action against France as
she believes the French decree is
too complex and burdensome for
companies and would disrupt the
internal market.
She said: “We are pleased with
the Commission’s decision. The
application of this new employment
rule needs to be reconsidered
because, as stated by the
Commission, it would restrict in a
disproportionate manner the
freedom to provide services and
move goods in the EU.”
Under the new French law,
foreign vehicles operating on
French soil will have to implement
new reporting requirements to
demonstrate compliance. This
includes submitting a ‘posting’
certificate for each worker, which
must be renewed every six
months, and appointing a
company representative in France
to liaise with staff of the
enforcement body for the duration
of the transport operation and for
the 18 months following. With less
than two weeks before the
deadline, the French government
has still not given full guidance to
foreign operators.
The IRU called earlier this week
on French authorities to introduce
a moratorium on the Loi Macron
enforcement for international
transport operators as of 2 July
2016.
“Already in March 2015, more
than one year ago, we voiced our
concerns about the practical
implications of Loi Macron if the
implementation is not thoroughly
explained, in consultation with
the industry,” said Michael
Nielsen, who leads IRU’s work in
the EU. “Two months ago, IRU
submitted more than 40 legal and
practical questions to the French
administration on Loi Macron in
order to inform our members.
Until today this IRU request
remains unanswered.”
By sea – Hague Visby
rules (2 SDR):
£1.92 per kg
£641.08 per package
By road – CMR
(8.33 SDR):
£8.01 per kg
By air – Montreal
Convention (19 SDR):
£18.27 per kg
July 2016
By air – Warsaw
Convention (17 SDR):
£16.35 per kg
BIFA STC: (2 SDR):
£1.92 per kg
(The SDR rate on
21 June 2016,
according to the IMF
website, was 0.961612)
7
BIFAlink
www.bifa.org
Policy & Compliance
There is clear evidence that older technology is increasingly
easy for criminals to overcome, particularly since the advent of
the 3D printer. So how can you make your shipments safer?
when the necessary software to
facilitate the printing of counterfeit
items is posted online.
Recently CAD master files were
posted online allowing anyone with
a 3D printer to create keys and
open any Transport Security
Administration (TSA) approved lock.
Security in many ways is like an
onion, it is most effective when built
upon layers.
Whilst locks, etc, still have their
role to play to deter the
casual/opportunist thief, it is clear
that as modern thieves become
more innovative, more effective
devices are needed to deter them.
These can take a variety of
forms. The writer can remember
one company fitting baby alarms
into trailers so that drivers could
hear if clandestines had broken in.
Times have moved on and
technology has become more
sophisticated, although it is
probable that no one device or
system provides all the solutions.
Shippers can play their part in
protecting shipments from crime by
placing and monitoring GPS
devices into cargo, while operators
can improve vehicle security by
improving the quality of security
devices and training drivers on how
to check their vehicles properly.
The transport and logistics sector in
many ways uses old-fashioned
technology to ensure security. If
you think about it logically, the
bonding cord and seals owe their
origins to the 1960s and in some
cases even earlier. Times have
moved on and we have seen the
introduction of remote monitoring
and security devices actually being
built into maritime containers.
The problem for both road and
air stems in part from the need to
readily access cargo to physically
handle it and the relatively short
timespan that it remains in any one
location.
At recent industry events it
appeared that security was not the
main priority – there seemed to be
a view that more cargo was lost to
damage due to poor stowage and
handling than was lost due to theft.
Precautions
Some operators have now installed
motion-sensitive cameras within
vehicles and replaced standard
curtain sides with the metal meshreinforced variety.
One simple step is to mix up the
colour of the seal being fitted to the
truck and use them in a numerically
random order.
Within the UK BIFA has links with
the National Crime Intelligence
Service, disseminating information
and hosting information on our
website. Sometimes simply
knowing where there are problems
can assist in preventing an issue.
As we have said, there is no one
single issue but companies, by
being vigilant and using appropriate
devices, can play their part in
reducing the scale of what is a
growing issue.
A 3D printer
Does new technology
make crime easier?
8
However, as Border Force statistics
indicate, one-third of all trucks
arriving in the UK are not sealed.
New technology is available, but
is more expensive than the older
technology and is often best fitted
at time of manufacture.
Electronic seals
Electronic seals are a case in point,
particularly when fitted in
conjunction with pressurised
bonding cords, when the latter is
cut, the resultant loss of air pressure
triggers an alarm mechanism in the
seal alerting the driver. For high
value and other sensitive goods,
electronic seals can be
programmed to limit access during
transport. This can cause issues,
for instance if regulators wish to
inspect cargo at the frontier and the
driver has not been given the code.
However, there is clear evidence
that older technology is increasingly
easy to overcome, particularly since
the advent of the 3D printer.
This technology, much of it
available for less than £1,000,
allows thieves to create fake
security seals and security devices
to disguise cargo thefts.
Replication
It is relatively simple using such
devices to replicate ISO17712 highsecurity seals, plus locks and
padlocks in as little as 10 minutes.
In the old days, careful checking
usually revealed whether the seal
had been tampered with – now it is
much more difficult to do so. The
knock-on effect is to make it more
difficult to identify where the theft
took place.
This problem is made worse
July 2016
www.bifa.org
Policy & Compliance
Common European rules
to enhance road safety
A series of rules applicable to road
hauliers were adopted by the
European Commission on 16 March
2016. They include the common
classification of serious road safety
infringements under transport
legislation, as well as new
specifications for smart
tachographs.
The full text of the rules can be
viewed at http://eur-lex.europa.eu/
legal-content/EN/TXT/PDF/?uri
=CELEX:32016R0403&from=EN
The main infringements can be
summarised as:
• Exceeding driving hours,
• Rest period non-compliance,
• Tachograph infringements,
• Failure to provide correct
documentation when required,
• Exceeding the maximum
permitted weight,
• Driving vehicles that are not
roadworthy,
• Licence infringements,
• Load-related infringements.
operator. As a consequence, the
operator may lose the community
licence necessary to run a transport
business in the EU.
It is thought that this common
approach will increase the
effectiveness of cross-border
enforcement as member states are
obliged to exchange data on
serious and very serious
infringements through an electronic
Loss of licence
Where it is proven that a haulier has
breached one of the above
categories, it may lead to the loss
of good repute by the transport
system called the European
Register of Road Transport
Undertakings (ERRU).
Member states will be required to
have introduced the necessary new
BIFAlink
systems for implementing these
common classifications by
1 January 2017.
The new smart tachograph
specification makes full use of digital
technologies including satellite
positioning technology. The system
will transmit data to road controllers
when the vehicle is moving,
reducing the need for inspections.
Connections
It is envisaged that this system will
be connected with other telematics
applications (such as smart parking
or pay-as-you-drive apps) through
a harmonised Intelligent Transport
System interface. Journey start and
final locations will be automatically
recorded.
It is felt that this new system will
assist better enforcement without
causing additional delays for the
operators.
A profile of Transaid’s work in Africa
TOGETHER WE ARE
SAVING LIVES
Thank you for your support.
ROAD SAFETY • ACCESS TO HEALTHCARE • KNOWLEDGE SHARING
Delivered transport
management training
courses
in 3 countries
HGV/PSV & forklift drivers
Provided
492 community
health workers
with bicycles & training
8,881 PEOPLE
used our
emergency
transport systems
in Zambia, Nigeria,
Madagascar and
Uganda
July 2016
Trained 25 driver
trainers and 6,895
Recruited
& trained 1,212
emergency
transport drivers
and riders
We continued to
grow our online
knowledge
centre, which
helps organisations
tackle similar issues
around the
world.
Uploaded
55 new
case studies
Created
65 new
online tools
9
BIFAlink
www.bifa.org
Policy & Compliance
Insider threat
The revelation that one of the Brussels airport bombers was a
former employee of the airport has highlighted ‘insider threat’.
Here BIFAlink looks at some of the measurers that can be taken
to minimise such risks
BIFA Members who handle export
airfreight will be aware of the
aviation security regulations that are
in place, and freight forwarders
generally understand the need to
protect cargo and keep it secure
from interference by an outside
source, regardless of the mode of
transport being used.
However, the reality of ‘insider
threat’ puts a different aspect on
10
security and sets a number of
challenges for the industry.
What exactly is an insider threat?
An insider threat is a malicious
threat to an organisation that comes
from people within that
organisation, such as employees,
former employees, contractors or
business associates who have
inside information concerning the
organisation’s security practices,
data and computer systems.
It has recently come to light that
the suspected Isil bomb-maker who
blew himself up at Brussels
Zaventum airport on 22 March had
worked at the airport for five years
up until 2012. This illustrates the
vulnerability of organisations to
attacks by people who have inside
information, including the layout of
particular sites and local
procedures that are in place.
What can be done to minimise
the risk?
• Risks should be assessed on a
role by role basis and the level of
pre-employment screening
should be appropriate to avoid
recruiting someone who may
pose an inside security risk.
• This is especially important where
the role would allow access to an
airport by means of an airside
identification pass. However, not
all employees need screening to
the highest level – it would
depend on their role and the
July 2016
www.bifa.org
access it affords.
• It is important to remember that
personnel security does not end
at the recruitment and preemployment checks stage.
• Specific risk assessments should
be carried out to identify the
likelihood of an insider threat and
the potential consequences.
• Organisations should introduce
potential mitigations for both
detection and deterrence (see
spot and stop measures below).
.
Spot and stop measures
• Spot measures aim to identify
behaviours or activities of
concern and to identify any
changing or suspicious behaviour
patterns. Effective management
and working in close-knit teams
can help to identify any changes
or suspicions that might indicate
a potential insider threat.
July 2016
Policy & Compliance
• Stop measures aim to prevent or
deter an insider from exploiting their
role for unauthorised purposes.
Random searches, the limiting of
lone working, and monitoring by
CCTV are some examples of stop
measures that can reduce the risk
of insider threat.
The benefit of a positive security
culture
To nurture a positive security
culture, all staff must understand
that they are an integral part of
aviation security.
The attitude that “security is
someone else’s job” can undermine
the efforts an organisation makes
and render the mitigation
ineffective.
Staff surveys of the awareness
and attitudes towards security can
be used to establish an
organisation’s initial level and
subsequent progress.
It is also important that once a
concern has been raised, the
organisation has a process to
manage the situation. Whilst the
process should be similar to the
organisation’s disciplinary process,
it should accommodate the
Staff surveys of the awareness and
attitudes towards security can be used
to establish an organisation’s initial level
and subsequent progress
BIFAlink
situation where an individual may
not have contravened company
polices, yet a security concern still
exists.
However, many apparent
breaches of security have simple
and possibly innocent explanations,
so where possible the employee
should be given the opportunity to
explain his or her actions.
All such actions should be dealt
with promptly and those of high
concern and in a high risk role,
should draw an immediate and
stronger response, given that the
industry operates to a very high
security standard.
Further information about
managing insider risks can be
obtained from the Centre for the
Protection of National Infrastructure
(CPNI) at: www.cpni.gov.uk/advice/
personnel-security1/
insider-threats/
11
BIFAlink
www.bifa.org
Profile
PSL invests to develop
rapid response service
BIFA award winning PSL Freight improved its service, provided
faster turnaround times and won new business after investing
in its staff and operations, reports Giles Large
PSL Freight won the European
Logistics Award, sponsored by the
TT Club, at the 2015 BIFA Freight
Service Awards ceremony, held in
London earlier this year.
According to the judges, the
company showed that it had
invested in both its staff and in
quality systems to develop a new
rapid response offering. “As well as
providing an improved service, with
much faster turnaround times for
existing customers, it has also
generated new routes and new
customers,” they added.
The group’s managing director,
John King, stated: “We specialise in
developing long-term relationships
with customers by providing quality
of service and adaptability,
underpinned by staff involvement at
all levels.”
Set up in 1984, PSL has seven
offices and warehouses in the UK
and employs over 120 staff. “We
have an annual staff retention rate
of over 95%, which we believe is a
mark of an inclusive approach,” he
declared. “Customer retention is
high, due to our willingness to
adapt our procedures to match
their needs and to resolve problems
quickly and efficiently.
“We operate overland services to
mainland Europe in addition to sea
and air freight and a number of
express services,” he said. “Apart
from transit operations, our
warehouses are primarily dedicated
to giving customers the innovative
supply chain solutions that are the
backbone of our ethos.”
Last year PSL set out to develop
a fresh approach to European
logistics by introducing an express
quote initiative, backed by a rapid
12
Mark Ford and Michael Douglas
receive PSL Freight’s BIFA
award in February this year.
response sales support team. “We
had noticed that many of our
customers gain new business from
countries they had never dealt with
before, primarily because Internet
allows access to customers on an
exponential scale,” Mr King stated.
“This development demanded more
rapid and flexible distribution. So,
we wanted to give them the options
for addressing this without the need
for them to reach for unknown
suppliers.”
Rapid response teams
A number of steps were then taken,
including the formation of rapid
response teams to handle sales
enquiries. “Under the guidance and
initiative of our commercial director,
Richard Gibbs, we decided to
supplement the sales staff at several
of our regional offices,” he said.
This involved selecting and
training five new members of staff,
one of whom came from the
government’s apprenticeship
scheme. Under guidance from
senior sales staff, they were then
able to provide instant support for
the increase in enquiries generated
by the company’s express quote
initiative.
To launch the express quote
initiative, PSL contacted all existing
clients to tell them that it was now
able to offer a 30 minute response to
all enquiries for quotes to
destinations in Europe outside PSL’s
core services. “This was a calculated
decision as we were aware that we
may receive requests for many
random shipments in a short space
of time,” Mr King commented. “In
order to cope with this, we
introduced a sales facilitator.
“Put simply, this involved giving a
senior sales person the task of
monitoring all sales enquiries and
ensuring that they were answered
or distributed in a prompt manner
and responded to within 30
minutes,” he explained. “It is a
dynamic role, with normally a one or
two-week period rotating amongst
senior staff. We achieve this by the
IT department routing copies of
emails to a central shared mailbox
where they can be monitored.”
As a result of these developments,
PSL quickly started to receive
requests for quotes to a large
number of European countries.
These quotes were then fulfilled by:
assessing suppliers by service level
agreements (SLAs) and insurance
checks; agreeing internally that the
company would use a limited
selection of potential supplies; using
two freight exchanges which had
over three years’ positive experience;
cargo exchange with other
forwarders with whom the company
had existing arrangements; and,
where necessary, agreeing
short-term contracts directly
with foreign agents.
PSL has also introduced an
online booking form, where clients
can book jobs without the need for
an email or phone call. This
provides the client with a job
reference that can be tracked and
processed quickly, which means
that express shipments can be
prioritised.
“Obviously, web tracking is not
new but we have adapted ours to
allow the scanning and
presentation of documentation that
normally would be available only on
request,” Mr King said. “For
example, some clients require
PODs from parcel carriers to be
available well after the three-month
limit that most parcel carriers
impose on their own tracking
websites. We download these
PODs and reload to our web
tracking site for customers on
demand, allowing their retention for
several years if necessary.”
Urgent collections
Many of the requests received by
PSL are for urgent collections and
deliveries. Internet enquiries are
often the result of a desperate need
by a company to fulfil a requirement
that has been overlooked or
become under-stocked, typically in
construction or manufacturing. “We
have been meeting these by
utilising our express services, or
those of our suppliers,” he said.
“We have a knowledge of price
levels for this type of movement
which ensures that we do not
charge a prohibitive amount that
could result in the client being
unhappy and unwilling to give us
additional business.”
The turnover generated by this
sector of PSL’s business has
increased by over 10% to about
£10.5 million. Overall, the group’s
turnover between 2011 and 2015
increased by 32% to £27 million,
while gross profit grew by 43% to
£7 million and new profit by almost
100% to £1.4 million. “Winning
BIFA’s European Logistics Award is
recognition that traditional freight
forwarders are still the backbone of
our industry,” Mr King declared.
July 2016
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Legal Eagle
Bills of Lading – then, now
and in the future
It is back to basics in Legal Eagle this month as we look at the
bill of lading. BIFA is grateful to Associate Member solicitors LA
Marine for permission to reprint this article
The bill of lading is one of the most
important documents in any
shipping transaction and has been
used for centuries in the shipping
and transport industry. This article
revisits the basic functions of bills
of lading and considers the role of
bills of lading in the future.
It is widely accepted that a bill of
lading serves three functions:
Firstly, a bill of lading is used as
evidence of a contract. The bill of
lading is documentary evidence of
a contract existing between a
shipper/cargo owner and the
carrier. The bill will likely include
some important terms of carriage
which could impact on liability,
jurisdiction and applicable law, and
exceptions and exclusions.
The second function of a bill of
lading is to act as a receipt of the
July 2016
goods being carried. The bill is
issued by the carrier to the shipper
as proof of receipt of the cargo.
Further, the bill will reflect the
condition, quality and description
of the cargo upon which the carrier
can rely on later if necessary. A
carrier is likely to mark any defects
or deficiencies with the cargo on
the face of the bill of lading, if they
are apparent.
Document of title
The third function of a bill of lading
is to act as a document of title to
the goods. This role is important in
establishing who is the owner of
the goods and depends on when
the bill is presented to the carrier
for discharge of the cargo.
The paper bill of lading has been
used for many years despite the fact
that the shipping industry has
become increasingly electronic
and/or digital. However, for some
time there has been discussion over
electronic bills of lading and whether
there can be a form of electronic bill
to supersede the paper bill. This
discussion has gathered some
momentum recently, given the Baltic
& International Maritime Council’s
(BIMCO’s) amendment to the New
York Produce Exchange form
(NYPE) time charter.
There are some difficulties with
the paper bill of lading. Most
notably that the speed of
shipping/transport has increased
rapidly in modern times and
arguably a paper form bill of lading
is outdated and unable to keep up
with the demands of modern
shipping. The argument is that
BIFAlink
electronic bills of lading could be
sent and received almost instantly,
are easily amended and could
generally expedite the process.
It is considered that the
electronic bill would be most suited
to the container industry but the
benefits of an electronic bill of
lading could be utilised in many
forms of shipping and transport.
There would be the usual, common
concerns that come with all forms
of digital documents, for example
hacking, viruses and internet crime.
However, these are considerations
for all industries reliant upon online
and digital data.
Outlook
Whether or not the electronic bill of
lading becomes more prominent
remains to be seen, but the fact that
BIMCO has made provision for it in its
NYPE time charter, and that the
International Group of P&I Clubs has
approved some types of electronic
bills, would seem to suggest that the
electronic bill of lading will rise in
prominence eventually.
Jonathan Biggins, Solicitor
023 8082 7483
jonathan.biggins@LA-law.com
www.la-marine.co.uk
15
BIFAlink
www.bifa.org
Profile
A young director who came
from Russia with love...
After arriving from Russia, Daria Banks has worked her way up
at Banks & Lloyd Shipping to be appointed commercial
director. She talked to Giles Large about her journey
Daria Banks, commercial director at
Banks & Lloyd Shipping in
Wilmslow, was one of the finalists in
the Young Freight Forwarder of the
Year category, sponsored by Virgin
Atlantic Cargo, at the BIFA Freight
Service Awards presentation.
Daria, 29, was born in St
Petersburg, Russia. She graduated
from St Petersburg Pedagogical
University of Russia with a degree
in English Language and
Linguistics, with German as her
second language.
“Upon completion of my studies
at university, I was fortunate enough
to find a job in imports and exports.
I was working for a foam concrete
manufacturer and I was responsible
for looking after both their exports
and imports. So, as well as selling
the equipment to the clients, I was
also responsible for organising all
the customs clearance and freight
arrangements by dealing with
transport companies direct. If you
like, I was the company’s own
freight forwarder,” she said.
Unlike so many who start their
careers in forwarding knowing little
or nothing about the industry,
Daria’s mother had been involved in
imports and exports “for as long as
I can remember”.
“For instance I knew about
Incoterms pretty much from when I
was in my teens, if not perhaps as
much as I know about them now,”
she stated. “It was always the case
that when my mother used to bring
some work to complete at home, I
knew what all the invoices, packing
lists and customs documentation
would look like. It was not anything
new to me when I started working
myself, hence why the choice of
career was pretty much set out
16
from an early age for me.”
Whilst studying at university,
Daria went to the UK to brush-up
on her language skills. “This was
very important,” she commented.
“It is one thing to learn it in a
country where English is not the
main language and quite another
thing when you go to the country
where it is the native language. This
visit was a perfect opportunity for
me to master it.”
While she was in the UK, she met
Edward Banks, her future husband.
“He is a Banks, but not the one in
Banks & Lloyd. This was a pure
coincidence, but nonetheless a very
good one,” she declared.
After a number of years in which
Edward would travel to St
Petersburg to spend time with
Daria, the decision was made that
they should live together in the UK.
“This was a difficult decision, for I
had my career pretty much set-up
in St Petersburg, where my family
lives, but for my husband it was a
lot more difficult to move to Russia.
That is why we made the decision
for me to move over to Manchester
in 2009. We have been together for
13 years and have been married for
nine years’’.
Starting in the UK
“When I came to the UK, I was
prepared to take any job that I
could find and certainly I was
expecting to start from the bottom.
But, I was determined to still be
involved in imports and exports,”
she said. Daria sent her CV to all
the companies in the area she
could find in the Yellow Pages that
were involved in the freight industry.
“I remember the moment when I
sent my CV to Banks & Lloyd
Shipping, thinking that it was the
company that I should go for. As
you can see, it turned out quite
well. They were surprised and
intrigued to receive my application,”
she stated. “I was fortunate enough
to be given the position of
operations assistant and that is how
my career in the UK started’’.
“Obviously this was a big
challenge for as you can imagine,
starting in a new country and in a
new environment and culture, I
needed to get used to a whole
different world and even the
specific linguistics of the UK’s
shipping sector, which was different
to what I knew in Russia.
“But, nevertheless, I progressed
quite quickly in my operations role,
where I was looking after imports,
exports, air freight and consolidated
cargo,” she said. “The directors had
noticed my enthusiasm and I was
given the role of account manager
to look after our biggest client.”
Banks & Lloyd Shipping is a
leading player in the tiles industry,
importing tiles predominantly from
Spain, where the company has an
office. Daria hopes that in due
course, it will also become involved
in the Russian market.
“During my time I have gained a
diverse and valuable experience in
the various aspects of this
business: multimodal transport
operations and account
management,” she said. “A role
then occurred in the commercial
and quotations department
involving rate negotiations, dealing
with suppliers and, of course,
bringing in more business. It took
me a weekend to make up my
mind, because it was quite a new
and different challenge to take on.’’
“As a quotations assistant, I had
to learn pretty much from scratch
how the negotiation process works
and how to deal with suppliers,”
she said. “I have been delighted
with my progress and the directors
soon noticed and it was not long
before I was promoted to
quotations manager. I now have a
great team that is prepared to work
hard and do their utmost to deliver
the highest levels of customer
service’’.
Awards entry
Daria decided to enter for the
Young Freight Forwarder award,
partly so that the Banks & Lloyd
Shipping name would be seen as a
market leader. “I was absolutely
delighted when I was looking at the
BIFA website one Sunday and saw
that I had been chosen as a
finalist,” she declared. Although
Daria did not win, the event in the
Brewery was “a fantastic day”. She
was accompanied to the event by
two directors, who also took her for
coffee at the Ritz Hotel.
“My future will definitely be with
Banks & Lloyd Shipping,” she
stated. Indeed a few weeks ago she
was appointed commercial director,
which she said was a great honour
that came with great responsibility.
“I am determined that Banks &
Lloyd Shipping will grow still further,
and from my side I am going to do
my utmost to see that this
happens.”
July 2016
www.bifa.org
Policy & Compliance
BIFAlink
IATA reminds cargo agents to submit
dangerous goods training certificates
To ensure the
continued retention
as an IATA cargo
intermediary, it is
important that the
validity of
Dangerous Goods
Acceptance
certificates is
maintained
The International Air Transport
Association (IATA) has recently
announced improvements to its
customer portal that will facilitate
the application of agents,
intermediaries and CASS
associates.
This enhanced facility will allow
all required documentation and data
to be submitted directly and
securely. Furthermore, this single
entry point will subsequently enable
access to several systems and
services. The portal can be
accessed by following the link:
www.iata.org/cs
Whilst on the topic of IATA cargo
intermediaries/cargo agents, the
compliance with Dangerous Goods
training requirements was
discussed at a meeting earlier this
year between IATA and The
International Federation of Freight
Forwarders Associations (FIATA).
IATA explained that its records
indicate that compliance in the UK
is currently at a very low level and
that all approved cargo
intermediaries should continue to
meet the staff criteria set out in the
European Air Cargo Programme
(EACP) Handbook by having at
least two persons holding a valid
certificate, issued within the
previous two years.
Oversights
IATA believes that there are many
cases where intermediaries have
met the training requirements but
may have forgotten to submit the
renewal certificates.
However, in order to ensure
continued retention as an IATA
cargo intermediary, it is important
that the validity of the Dangerous
Goods Acceptance certificates be
maintained.
Consequences
Failure to renew or submit the
certificates could be grounds for
IATA’s Agency Administrator to
remove the intermediary from the
directory.
In addition to the stated
Dangerous Goods Acceptance
training requirements, under the
EACP all persons assigned to
handle any consignments and/or
make them ready for carriage
should have at least completed a
Dangerous Goods Awareness
course. With the risk of undeclared
or mis-declared goods being
tendered for shipment by air, BIFA
encourages all Members to ensure
that staff are sufficiently trained to
identify dangerous goods at the
very earliest stage of handling.
The BIFA Dangerous Goods by
Air training courses are run by
trainers who are approved by the
UK Civil Aviation Authority (CAA).
More details about available courses
can be found at: www.bifa.org/
training/dangerous-goods
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.
July 2016
Region
Date
Stansted
Wed 13 Jul
Regional Members’ meeting
Heathrow
Tue 19 Jul
Regional Members’ meeting
Solent
Tue 2 Aug
Regional Members’ meeting
Gatwick
Thu 4 Aug
Regional Members’ meeting
Time
Venue
BIFA Contact
1130
Stansted Airport Ltd
Colin Young
1400
BIFA, Redfern House,
Feltham
Duke of Wellington
Colin Young
Timberham House,
LGW Airport
Colin Young
0800
1230
Colin Young
17
BIFAlink
www.bifa.org
Events
Your call to action
environment, or demonstrate a
reduction in carbon footprint.
Sponsor: Red Recruit
Time to register for the BIFA Freight Service Awards 2016
Summer is here and that can only
mean one thing – the BIFA Freight
Service Awards 2016 competition is
now open for registrations! Now is
the time to review your company’s
activity during the past year and
promote your success and
innovation by entering one or more
of the 11 award categories.
How to enter
Entering the competition is a simple
two-stage process.
A company may compete only
once in each category entered, and
in a maximum number of three
categories.
Entries in the Young Freight
Forwarder category are unlimited
and not affected by other category
entries.
Air Cargo Services
Award
Open to companies
providing air freight or sea/air
services.
Sponsor: IAG Cargo
Cool Award
Open to providers of
specialist refrigerated
freight services for any types of
goods ranging from small highvalue pharma products through to a
large reefer container, by any mode
of transport. Entries should
demonstrate good practice and an
important contribution to the
advancement of the ‘Cool’ Chain.
Step 1:
Register online at bifa.org/
awards by Friday 23 September
2016, 5 pm, selecting the
category/ies in which you wish to
compete.
A non-refundable registration fee
of £80 + VAT per category is
payable (no fee for the Young
Freight Forwarder category).
Sponsor: American Airlines Cargo
European Logistics
Award
Open to companies
providing European road and
shortsea services.
Sponsor: TT Club
Extra Mile Award
Open to companies that
can provide specific
examples of ‘innovation’ and/or
‘customer care’ by adding value
and exceeding their customer/s’
expectations.
Sponsor: Descartes
Ocean Services Award
Open to companies,
including NVOCs,
providing ocean freight services
and multimodal transport
operations.
Sponsorship package available
18
Young Freight
Forwarder (YFF) Award
Open to individuals,
under the age of 32, working
for a BIFA Member company and
preferably with a minimum of two
years’ employment in the freight
industry.
Sponsor: Virgin Atlantic Cargo
Project Forwarding
Award
Open to providers of
project forwarding services, or
companies who have handled a
special project in order to meet the
requirements of the customer.
Sponsor: Peter Lole & Co
Specialist Services
Award
Open to providers of
services, which are not modal
specific, including: warehousing,
transit shed operation, packing,
technology services, air/shipping
line sales agency, and
express/courier services.
Sponsor: Forward Computers
Staff Development
Award
Open to companies who
are developing, or have
implemented, a new
comprehensive staff development
programme.
Sponsor: Albacore Systems
Supply Chain
Management Award
Open to companies who
have provided a customer-focused
innovative solution enabling a more
efficient and cost-effective
management of the supply chain.
Sponsor: BoxTop Technologies
Sustainable Logistics
Award
Open to companies
wishing to present a specific
‘green’ initiative including
international freight by rail and/or
inland waterways. Initiatives should
show consideration for the
Step 2:
Forward to BIFA your 2,000 word
submission (one per category
entered) or YFF supporting
documentation (specification
provided on registration), by the
competition deadline of Friday 7
October 2016, 5 pm latest.
The judging
Judging will take place in early
November to select four finalists in
each category who will be notified
in writing.
The overall winner of each
category will be announced at the
BIFA Awards Ceremony luncheon
on Thursday 19 January 2017.
BIFA would like to thank the
category sponsors for their support
in the 28th year of the BIFA Freight
Service Awards competition.
July 2016
www.bifa.org
Training
BIFAlink
Training courses: July-September 2016
AIR CARGO (REGULATED AGENTS) SECURITY
TRAINING
NEW level
OLD Level
CASP
A/B
CO
D
COS
E
CS
F
CM
G
Air Cargo Security – CASP (Cargo Aviation Security
Principles)
Air Cargo Security – CO (Cargo Operative)
13 July
Feltham, West London
25 July
Feltham, West London
23 August
Feltham, West London
13 September
Feltham, West London
28 September
Feltham, West London
Air Cargo Security – COS (Cargo Operative Screening)
Air Cargo Security – CS (Cargo Supervisor)
Air Cargo Security – CM (Cargo Manager)
13-14 July
Feltham, West London
23-24 August
Feltham, West London
13-14 September
Feltham, West London
Air Cargo Security – Refresher COS (am session)
26 July
Feltham, West London
24 August
Feltham, West London
29 September
Feltham, West London
Air Cargo Security – Refresher CS & CM (pm session)
26 July
Feltham, West London
24 August
Feltham, West London
29 September
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
27 July
Feltham, West London
22 September
Feltham, West London
CUSTOMS PROCEDURES
BTEC Intermediate Award in Customs Export & Import
Procedures (CM3) – NB: attendance required on all five
dates
7, 14, 21 Sep, 5 + 19 Oct
Manchester area
Customs Import Entry & Procedures (CM6)
19, 26 Sep, 3, 17 + 31 Oct
Feltham, West London
DANGEROUS GOODS
Dangerous Goods by Air (DGA1)
4-6 July
Manchester
4-6 July
Midlands
11-13 July
Feltham, West London
1-3 August
Feltham, West London
5-7 September
Midlands
5-7 September
Feltham, West London
12-14 September
Glasgow
12-14 September
Manchester
26-28 September
Leeds/Bradford
Dangerous Goods by Air – Revalidation (DGA2)
7-8 July
Manchester
7-8 July
Midlands
14-15 July
Feltham, West London
4-5 August
Feltham, West London
8-9 September
Midlands
8-9 September
Feltham, West London
15-16 September
Glasgow
15-16 September
Manchester
29-30 September
Leeds/Bradford
Dangerous Goods by Road (DGR1)
11-13 July
Feltham, West London
5-7 September
Manchester
12-14 September
Bristol
Dangerous Goods by Road – Revalidation (DGR2)
Days 2 and 3 of the above Dangerous Goods by Road
course (DGR1)
Dangerous Goods by Sea (DGS1)
14-15 July
Feltham, West London
8-9 September
Manchester
15-16 September
Bristol
Customs Procedures for Export Cargo (CM1)
20 September
Feltham, West London
27 September
Bristol
Dangerous Goods Safety Adviser (DGSA)
5-9 September
Feltham, West London
5-9 September
Manchester
Customs Procedures for Import Cargo (CM2)
21 September
Feltham, West London
28 September
Bristol
Radioactive Goods by Air (DGA3)
See www.bifa.org/training for future presentations
Infectious Substances by Air (DGA5)
See www.bifa.org/training for future presentations
Carriage of Lithium Batteries by Air, Road & Sea
(modules available individually)
19-20 September
Feltham, West London
FREIGHT FORWARDING AND
INTERNATIONAL TRADE
Exports for Beginners (EXP1)
13 July
North East England
6 September
Feltham, West London
Imports for Beginners (IMP1)
14 July
North East England
7 September
Feltham, West London
BTEC Intermediate Award in Multimodal International
Freight Procedures (MFT1) - NB: attendance required
on all five dates
6, 13, 20 Sep, 4+18 Oct
Midlands
15, 22, 29 Sep, 13 + 20 Oct Feltham, West London
Sea Freight: The Basics (SF1)
27 September
Feltham, West London
Introduction to Letters of Credit
See www.bifa.org/training for future presentations
ONLINE COURSES
The following Air Cargo Security courses are available
online to Regulated Agents at initial and refresher
levels:
• Cargo Aviation Security Principles (CASP)
• Cargo Aviation Security Principles – Driver (CASP-D)
• Cargo Operative (CO)
See bifa.org/training to register
Known Consignors – courses covering the modules
required by Known Consignors are also available
online.
Radioactive Goods by Air – Revalidation (DGA4)
See www.bifa.org/training for future presentations
To view course content or to make a booking, go to www.bifa.org and click on training
BIFA is a
member of:
#BIFATraining
July 2016
19
AVIATION
SECURITY
TRAINING
FROM THE PRIME INDUSTRY ASSOCIATION
CALL BIFA TRAINING
0208 844 3625 training@bifa.org www.bifa.org