IIFA NEWSLETTER
JANUARY, 2006
Dear Members,
Please note revised
company details as follows:
Address:
Strand House, Strand
Street, Malahide, Co. Dublin
Phone No/s
01 8455411
(Main Line)
8455533 (Second Line)
Fax No:
01 8455534
E-Mail: iifa@eircom.net
Web Address: www.iifa.ie
CHINESE NEW YEAR
The year of the Dog – The 29th January is the first day of the Chinese
New Year of the Dog. For more details of the Chinese calendar – see
Website httP://www.chinapage.com/newyear.html
DUBLIN CITY COUNCIL
DRAFT HGV MANAGEMENT STRATEGY
We have already circulated , Monday 31st January, the urgent notice issued
by the IRHA regarding the proposed Dublin City Council Draft HGV
Management Strategy ,which sought to alert everyone affected by it, that
they should immediately express a view to the Dublin City Council.
Although most IIFA members do not operate their own vehicles, it is obvious
that the management plan as drafted poses major changes which, if
implemented, will pose serious threats to the operation of many members'
businesses, because these depend to an enormous extent on the smooth,
efficient and economical supply of HGV services.
Therefore, it is in your own interest, to acquaint yourself with the details
of what is being proposed and email or write to
Brendan O'Brien
Head of Technical Services ( Traffic)
Dublin City Council
Roads and Traffic Department
Floor 5 Block 2
Fishamble Street
Dublin 2.
Email: brendan.o'brien@dublincity.ie
At a Glance
1)
2)
3)
4)
5)
6)
7)
8)
9)
Chinese New Year
Dublin City Council
IBEC
Golf Paradise
IATA Report
Snippets
BIFA Freight Awards
Neutral AWBS
Customs Consultative
Council Report
10) WPM Regulations
11) The Bigger Picture
from Davos
12) New Fiata website
13) Hire Purchase
14) History being made
15) Maersk Line
16) More from Davos
17) New FDA Regulations
18) Davos Podium
19) Frans Maas recommends
bid to shareholders
20) In the news
21) Regulation of
Freight Forwarders
22) Norsemerchant Ferries
23) New Manager
24) The Big Picture
25) No Foreigners Please
26) Cabotage in Italy
27) EU and Liner Shipping
28) Dog Story
29) New Scale of Charges
30) Cargolux and Boeing
31) Annual Golf Classic
and the last word
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Colm Walsh
Chief Executive IIFA
THE DEADLINE IS FRIDAY 10TH FEBRUARY AND THE MORE LETTERS RECEIVED THE
MORE NOTICE IS TAKEN.
DONT DELAY - DO IT TO-DAY.
Circular sent on Monday 30th January 2006
Dear Members
Attached is a letter from the IRHA in which they outline their concerns in relation to proposals by
Dublin City Council to impose HGV restrictions within the city. They believe that this will have
serious implications for the freight industry. The issue of future tolling is also raised. (Full details
of DCC's proposals are available online. See attached letter)
You have until February 10th to submit any views or objections to the proposals. The public
consultation process closes after that date. Failure to make a submission on this document will be
interpreted by DCC as your acceptance of their proposals.
If you have a position on this issue, please let us know or reply directly to Brendan O' Brien at
DCC. We would appreciate if you would let us have a copy of this.
Kind regards
Teresa Mulvey
IIFA Administrator
IBEC ALSO CONCERNED AT PLAN
The Irish Business & Employer's Conference (IBEC) is concerned at aspects of the proposed
traffic management plan for HGV's using Dublin Port Tunnel, which is due to open later in the
year.
IBEC's Transport Director Reg McCabe says the business lobby group has concerns over certain
aspects of the proposed traffic management plan and tolling arrangements.
"There are a range of concerns with regard to the freight and distribution interests operating in
Dublin port. The operation of a toll at Eastlink is
an obstacle for truck traffic originating from the MTL container facility on the South Bank wishing
to access the tunnel. Other tunnel freight traffic destined for points beyond Westlink - such as N4
and N7 - will be similarly penalised. It is essential that arrangements be put in place that will
eliminate or reduce tolls on Eastlink and Westlink for this traffic," he commented.
He added: "As a result of accidents or breakdowns, or due to maintenance requirements, Dublin
Port Tunnel will be subject to traffic restrictions from time to time. When this happens it is crucial
that freight users have available designated alternative routes from the city. Routes for
designation would include: North and South Quays, East Wall Road, Sheriff St, Alfie Byrne Road,
Dorset St (to Collins Ave), South Circular Rd and North Circular Rd."
"In view of continuing confusion and uncertainty in the freight sector on many key aspects of
Dublin Port Tunnel and its operations, IBEC takes the view that a confidence building statement
should be issued by the Government well in advance of the tunnel opening to traffic."
2
MCCabe says such statement would provide clarity on key issues of concern, including:
*
*
*
*
*
Scheduling of M1-M50 Turnapin interchange upgrading.
Arrangements at Eastlink and Westlink for DPT truck traffic.
Alternative 'tunnel closed or restricted' transit corridors through the city.
Accommodation of city deliveries post-DPT
Facility management arrangements, including the mechanics of the toll-free regime. In this
regard, while there is an expectation that toll-free vehicles will be issued with 'smart cards',
these operational details have yet to emerge.'
GOLF PARADISE
A freight forwarder found himself wondering whether there were any golf courses in Heaven. He
even began to ask the question in his prayers. One day, in answer to his prayers, he received a
direct answer from on high.
"Yes," said the heavenly messenger, "There are many excellent golf courses in Heaven. The
greens are always in first class condition, the weather is always perfect and you always get to
play with the very nicest people."
"Oh, thank you," said the forwarder, "That really is marvellous news."
"Yes, isn't it?" replied the messenger, "And we've got you down for a foursome next Saturday."
IATA REPORT
Air freight grew by only 3.2 percent in 2005, while passenger traffic expanded by 7.6 percent,
according to a release from the International Air Transport Association (IATA) on 31st January.
Cargo grew by 15.8 percent in 2004.
IATA said in a statement that it expected cargo to grow 5-6 percent in 2006, with passenger traffic
expanding at the same rate.
"The industry is returning to a more normal growth pattern after the shocks that began in 2001,"
IATA Director-General Giovanni Bisignani said. "Air freight, however, is disappointingly low as a
result of weaker demand from critical sectors, such as IT and semi-conductors."
Airlines lost $6 billion in 2005, IATA said, but that is projected to narrow to $4 billion in 2006 on
slightly lower average crude oil prices.
SNIPPETS
ASDA is to roll out RFID ( Radio Frequency Identification ) tagging in its UK warehouses in the
coming months.
A ticket for the World Economic Forum - ( see below for more ) cost Euro44.000.00 .
You can read all about it here - free !!
3
The Rt. Hon. the Earl of Caithness, President of BIFA, addresses the audience
at the commencement of the awards presentation in London on 19 th January 2006
BIFA FREIGHT AWARDS 2006
The winners of the BIFA Freight Service Awards were announced at the BIFA annual luncheon at
its traditional venue - the Brewery in Chiswell Street, London EC1. By kind invitation of Mr Colin
Beaumont of BIFA, Colm Walsh attended as CEO of the Irish International Freight Association
on 19th January. The event, which has now been running for seventeen years, was attended by
400 people including BIFA members and their guests, industry figures and press.
The event host – TV & Radio Broadcaster, Mr Jeff Randall – presented the finalists in each
category with framed certificates in recognition of their achievements, and the ultimate winners
were honoured with a trophy, presented to them by the category sponsor.
Entrants competed in nine award categories overall, but notable amongst the winners were
GEFCO Ltd based in Chiswick, West London, who scooped the European Logistics Award
sponsored by Pall-Ex (UK). The judges felt having worked with Triumph motorcycles since 2003
GEFCO have proved their capability as a consistently, reliable, European logistics provider for
Triumph delivering over 20,000 bikes by the end of 2005. GEFCO have fully utilised their
expertise within the automotive sector by providing a bike cradle rental service helping to reduce
Triumph's distribution costs, shortening lead times and maintained consistently high service
levels.
The other European logistics category finalists were Gwynedd Shipping Ltd, International
Forwarding Ltd, Laser Transport International. For full details of winners this year take a look at
the BIFA Web Site: www.bifa.org
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NEUTRAL AWBS
Neutral Airwaybills available NOW
From
Key Business Forms in Baldoyle
Email: info@keybusinessforms.com
Tel: 01 – 832 1220
Contact: Mr. Jim Fagan
CUSTOMS CONSULTATIVE COUNCIL REPORT
AEP 1 WILL BE "BURNED DOWN "
At he 27th meeting of the Customs Consultative Committee. which took place in the Conference
Room, 3rd Floor, Castle House, South Great George's Street. Dublin in the 10th January 2006
Mr Eamonn Fitzpatrick of Customs Division chaired the meeting and from the outset stressed in
no uncertain terms the utmost urgency on all engaged with AEP (Automated Entry Processing) to
bring home the message that AEP 2 will be in operation by October 2006.
In effect this means that AEP 1 will no longer be in operation and will be "burned down" from that
date. People should not be complacent that post-October will be time enough.
NOW is the time for everyone concerned to deal with the impending changes.
The Chairman went on to highlight some issues to be borne in mind;
From October 1st
OLD SINGLE ADMINISTRATIVE DOCUMENTS (SADS) WILL NOT BE ACCEPTED.
THE NEW SITUATION WILL NOT BE OPTIONAL AND THIS MESSAGE NEEDS TO BE
UNDERSTOOD BY EVERYONE
THE SINGLE ADMINISTRATIVE DOCUMENT WILL NOT CHANGE BUT THE RULES FOR
COMPLETING THE BOXES WILL.
PAPER WILL BE THE EXCEPTION RATHER THAN THE RULE
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The Chairman was at pains to stress the magnitude of the changes which will come about with
AEP 2.
In effect the system will no longer be just Customs and Excise but " all roads through the system "
will lead to an Integrated Taxation Process and this total area will be handled by the IT section of
government and not just by Revenue.
For example accounting for VRT (Vehicle Registration Tax) and EDE ( Excise Declaration Entry )
will be handled by the new system.
A list of software developers was published on the Revenue website this year already, and in
addition this list will be sent out with the monthly statements to AEP Traders.
(As a point of interest there are 8000 authorised traders overall but approximately only 2000 are
'active' at any one time.)
The chairman requested all present to spread the message that NOW is the time to be informed
and up to date.
NCTS- New Computerised Transit System GMS - Guarantee Management System (GMS)
An update was given by Ms Carol-Ann O'Keefe (Customs).
She reported that as of now all 28 NCTS Administrations are using the GMS and that feedback at
both national and EU level has been positive.
Initially there were severe problems in Belgium and Holland caused by large volumes of transit
messages on their systems. The Commission now says that these problems have been resolved.
The report continued that some performance problems have been experienced since the start of
this year with NCTS, but that following close contact with traders on the various issues these are
now being resolved in John's Road.( Revenue IT Division ).
This year the commission will provide a new message in GMS which will enable traders to query
the balance in their guarantee amount. This will require some small development on the part of
Revenue and traders. As soon as the specifications are available software developers and
traders will be advised.
ENQUIRY HANDLING SYSTEM IN NCTS
During 2005 an Enquiry Handling System was launched which enabled National Administrations
to communicate electronically within NCTS on open transits. The time scale for initiating an
enquiry on a transit is now set to six days after the expected date of arrival.
All National Administrations - with the exception of Holland - are now using EHS and
consequently traders will see increased efficiency in the speed at which enquiries are initiated.
Problems with open transits should be resolved more quickly than heretofore and guarantee
amounts credited back to the Principal, where this is relevant.
ERRORS IN TRANSIT DECLARATIONS
Ireland features highly on certain performance graphs produced by the Commission. This was in
relation to errors contained in transit declarations.
In one example 50% of all transits moving through Switzerland had to be diverted because either
no, or an incorrect, office of transit in CH was declared. These errors result in CH Customs being
unable to carry out risk analysis on these transits. It can also cause significant delays for the
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traders concerned, and many others at border crossings.
The Helpdesk has identified some traders and has helped to resolve some problems. However,
the report stressed the need to remind all concerned of the necessity for accuracy of the data
input into the transit declaration.
With effect from 1/1/2006 all Principals are obliged to submit transit declarations using NCTS and
Customs Input ( where the trader has Customs input the details ) is no longer permitted, save in
very exceptional circumstances.
With regard to the lack of an automatic response of confirmation of receipt of transit declaration
message, this defect is due for rectification by the Commission during this year.
A pilot project has been ongoing since July 2005 within the NCTS specifically for TIR ( Transport
International Routier ) movements. Ireland has been involved in the pilot exercise as a country of
destination.
Though the numbers are small, any incoming TIR movements recorded on NCTS have been
handled successfully and closed off on NCTS. The feedback is generally positive and it is
envisaged that this will be the way forward for electronic TIR declarations.
Following a request from Michael D'Arcy of the Irish Association of International Express
Carriers, concerning the future trends of EU Customs Reform, the chairman replied that he
would ask Mr Gearoid Murphy, currently based in Brussels to draw up a discussion paper which
will address the many issues involved.
With regard to Revenue's new organisational structure Michael D'Arcy also highlighted the
changed circumstances coming down the line, whereby we now will have to deal with six regions
and the Assistant Secretaries in each of the six areas who have total responsibility not just for
customs matters but for all Taxation matters in their respective areas.
The chairmen suggested that he would look into the possibility of improving contact with the
relevant liaison officers for AEP in each region - as a beginning.
WPM REGULATIONS START FEB 1ST
US Customs and Border Protection is reminding all importers of products transported on wooden
pallets or in wooden crates that the Phase II implementation of phytosanitary regulations begins
Feb.1 and that non-compliant shipments risk immediate re-exportation at the shipper's expense.
The rules state wood packaging materials (WPM) "must be marked with the International Plant
Protection Convention (IPPC) logo, the two-letter International Organization for Standardization
(ISO) code for the country that treated the WPM, the treatment facility number assigned by the
national plant protection organization, and either the abbreviation HT (heat treatment) or MB
(methyl bromide).
The rule states that regulated wood packaging materials must be marked in a visible location on
each article, preferably on at least two opposite sides of the article, with a legible and permanent
mark that indicates that the article meets the new requirements. Paper treatment certificates will
no longer be required or accepted.
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According to Customs, "pallets"...include(s) single wooden pallets and all pallets that are part of a
unitized packaging container, such as wooden pallets that comprise the base of a carton or crate:
for example, in shipments of motorcycles, machinery parts, pipe fittings."
Customs adds, "Wooden crates or lift vans constructed solely of manufactured wood (for
example, plywood) are not regulated by the WPM rule. However, if other lumber is used in these
crates, those pieces are covered by the WPM rule."
Shipments containing non-compliant wood pallets or crates will be held and will not be released.
The importer, or the importer's representative will be notified by Customs and offered the option
of requesting "separation of the imported merchandise from the violative WPM."
However, if the Port Director determines that separation of the non-compliant crates from the
cargo is not feasible, or if separation is not requested, then the entire shipment, including
compliant wood packaging materials, will be exported from the U.S., at the importers' or party of
interests expense.
So you have been warned !!
THE BIGGER PICTURE FROM DAVOS
Perhaps once in a while it is good to try and perceive the larger frame within which we live in this
global village. Thus we have in this issue some reported items from Davos that caught the light
(including some comments from Bono).
The World Economic Forum is an independent international organization committed to improving
the state of the world by engaging leaders in partnerships to shape global, regional and industry
agendas. Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World
Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national
interests. (http://www.weforum.org)
AFRICA PRIORITY SHIFTS FROM AID TO EMPOWERMENT
Forum panellists agree to boost primary education, remove agricultural trade imbalances.
Several leading world figures in the development debate on 27th January sought to shake off
"poverty fatigue" and follow through on the momentum and "mountain of good will" generated
from 2005 toward the goal of eradicating poverty in Africa. At the World Economic Forum Annual
Meeting, they committed themselves to "this year give direction and purpose" to a new effort.
Top priorities for pragmatic action, they agreed, include: getting global trade talks back on track,
exposing corruption both by givers and recipients, investing heavily in long-term primary
education in Africa, and taking aim at "sacred cows" of European, Japanese and American farm
subsidies that make it impossible for African herders to compete.
"We (in affluent countries) used to talk for centuries about what we could do for Africa," said
Gordon Brown, Chancellor of the Exchequer of the United Kingdom, who pushed for, and
received, a commitment from his panellists to strive for universal free primary education in Africa.
"But the real question is about empowerment, and what Africa can do for itself."
One of the things Africa is showing it increasingly can do for itself is to govern accountably,
pointed out Olusegun Obasanjo, President of Nigeria. "Not all our problems have disappeared,
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but last year elections took place in Liberia successfully, a change in government in Tanzania
successfully, in Burundi successfully, and in Guinea Bissau successfully. Wow. Twenty years
ago that was unthinkable."
Yet good governance alone cannot eliminate poverty without strategic investments and fair trade,
panellists agreed. And the three most vital investments, they said, must come "in capital
infrastructure, physical infrastructure and human infrastructure."
Nigeria won praise from Bono, Musician, DATA (Debt, AIDS and Trade in Africa), United
Kingdom, for strengthening its financial infrastructure by spending its oil revenue windfall on
"buying back debt service from the world".
But Bono put a new spin on an old expression, warning, "They say it is better to teach a man to
fish than to give him a fish, but it is even better to teach a man how to sell fish. Africans are very
entrepreneurial people and want to grow their businesses. Let's get out of the way."
Getting out of the way, panellists agreed, meant removing the "illiterate" Common Agricultural
Policy subsidies, under which European cows are "paid" US$ 2 a day and Japanese cows US$ 7.
"Africa is poor because Africa hasn't grown," said Niall FitzGerald, Chairman, Reuters, United
Kingdom; Member of the Foundation Board of the World Economic Forum. "And it can only grow
when it is allowed to trade freely and openly and fairly. That means these trade distorting
subsidies must be removed by 2010, but we are nowhere near that."
Yet even with fair trade, the ability to "sell fish" will require physical infrastructure - roads and
ports and electricity - to get to market in the first place, observed Paul D. Wolfowitz, President,
World Bank, Washington DC. "The Bank is trying to get back into infrastructure projects" while
avoiding "mistakes", red tape, environmental impacts and "white elephants" that often do as
much harm as good.
Beyond compassion, panellists mentioned several motives for empowerment and poverty
eradication that involve global self-interest: build trust in free trade, avoid the risks of religious
instability, slow migration and secure oil sources. "In Africa we are emerging," said Obasanjo.
"We have taken responsibility, and know change is required so … that we can be empowered in
the way of human and capital infrastructure. And then America and Europe and ourselves will be
the better for it."
NEW FIATA WEBSITE NOW ON-LINE
The website of Fiata, the International Federation of Freight Forwarders' Associations, has been
expanded and updated. Apart from existing tools and information, a photo gallery has been
added under the events link. It is being launched with photos from Fiata's recent World Congress,
held in Moscow (Russia) in September 2005. Additional useful features, such as information
about the activities of the Fiata Foundation Vocational Training, a forum as platform for Fiata
institutes and advisory bodies, etc., will successively be added.
http://www.fiata.com
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HIRE PURCHASE
A freight forwarder got into some difficulties with a client -- who sued him.
He hired a lawyer who contacted the client. The client dropped his case!
So now the lawyer calls the forwarder to tell him about his fee schedule.
"Alright," the lawyer says looking through his papers. "You owe me $1000 down and $417.58
each month for the next thirty-six months.
"What! That sounds like a car payment schedule," retorts the forwarder.
"It is. It's mine."
HISTORY BEING MADE
UPS will enter the German, French and Belgian mail markets within the next few weeks. UPS,
which aims to expand its European business, will start to accept international mail – a market
segment that is already fully liberalised – from February onwards.
In Germany, UPS will work with Swiss Post International (SPI), the international mail division of
Swiss Post. UPS will pick up unsorted international mail from parcels and express customers and
hand this over to SPI for sorting at its centre in Troisdorf, near Cologne (Germany).
SPI will be responsible for organising the international transport and delivery of the mail through
its international network of subsidiaries and distribution partners.
MAERSK SEALAND AND PONL RENAMED MAERSK LINE
Maersk Sealand's and P&O Nedlloyd's names will disappear this month and Maersk Line's new
service network will be launched then. The network combines the P&O Nedlloyd and Maersk
Sealand networks, following A.P. Moller-Maersk's acquisition of P&O Nedlloyd.
THE BIGGER PICTURE - more from Davos
NO IMPENDING ENERGY CRISIS, SAY ENERGY CHIEFS
There is no reason for pessimism over securing future energy needs as high oil prices and the
rise of India and China push search for alternative supplies.
Davos, Switzerland, 27 January 2006 - Leading energy chiefs have assured that there are
adequate world energy supplies, and that the market and governing energy institutions are able
10
to absorb energy shocks. "There is no reason for pessimism," declared Jeroen van der Veer,
Chief Executive of Royal Dutch Shell, today at a press conference devoted to energy security,
during the World Economic Forum Annual Meeting taking place in Davos. "Easy oil may have
peaked," he said, but high oil prices are providing the public and private sectors with the incentive
to invest in discovering alternative sources of energy which are in plentiful supply. A further step
will be to find ways to cut the CO2 footprint, added van der Veer.
Diversification will alleviate pressures on world supplies, agreed Fatih Birol, Chief Economist and
Head of the Economic Analysis Division at the International Energy Agency. Governments and
companies will have to diversify away from oil and gas, as well as away from traditional suppliers
to find new markets.
"We have the mechanisms, machinery and institutions that can respond" to oil shocks, said
Daniel Yergin, Chairman of Cambridge Energy Research Associates, USA. He does not foresee
an oil shock unless there is a "massive recession".
Hurricanes Katrina and Rita demonstrated how initial panic over interrupted energy supplies
proved unfounded and "the situation was quickly normal again," commented Yergin. "The system
reacted well," he said.
"The oil infrastructure is robust enough to deal with a 5% cut in supply," said Birol, but he stated
that market uncertainty is destabilizing.
Mohammed Barkindo, Acting Secretary-General of OPEC, said that his organization "remains
ready to step into the market". He pointed to the fact that the Vienna-based institution made its
reserves available in the wake of Hurricane Katrina. "This shows that OPEC will step in at any
time there is a shortage in the market because one of the key issues is market stability," he said.
The experts agreed that the disclosure of reserves needs improvement and called for guidelines
to be updated. "We need a universally accepted definition of reserves reporting," said Birol.
OPEC does not believe nuclear energy to be a viable alternative option, while Birol stated that
"climate change and energy security will see Europe and the US look at nuclear much more
closely."
NEW FDA REGULATIONS
New regulations under the Bioterrorism Preparedness and Response Act became effective on
December 9, 2005. The new regulations are designed to give the FDA a means of tracking food
and food product shipments to, from and within the U.S., during transit and while in storage.
According to the FDA, the regulations implement Section 306 of the Bioterrorism Act, which
directs the Health and Human Services Secretary to issue regulations requiring persons who
manufacture, process, pack, transport, distribute, receive, hold, or import food to establish and
maintain records.
Under the new regulations, the FDA may demand information pertaining to a food shipment. The
records required to be maintained include items such as:
*
*
The names of the immediate previous source and of the immediate subsequent recipient
The shipment origin and destination
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*
*
*
*
Dates of shipment and delivery
The number of packages shipped
A description of shipment contents
The route information for the food shipment
You can find more information about the new FDA regulations at www.fda.gov or go to
www.fda.gov/bbs/topics/news/2004/NEW01143.html to view the FDA press release on this
requirement.
GATES, CHAMBERS, SCHMIDT, ZENNSTRÖM
SHARE DAVOS PODIUM
Annual Meeting panellists discuss high-tech now and tomorrow Davos, Switzerland, 27 January
2006 - John T. Chambers, President and Chief Executive Officer, Cisco Systems Inc., USA;
William H. Gates III, Chairman and Chief Software Architect, Microsoft Corporation, USA; Eric
Schmidt, Chief Executive Officer, Google, USA; and Niklas Zennström, Co-Founder and
Chief Executive Officer, Skype Technologies, United Kingdom, came together in a panel at the
World Economic Forum Annual Meeting today to discuss the nature of technology and what the
future might look like.
Zennström sees ubiquity as the trend in connectivity. "Small companies anywhere will be able to
make a big impact," he predicted. There’s no need to be totally tech savvy and "no need to even
care about how Cisco servers work" in creating such a business. His own business has 75 million
users. But in a business where underlying costs are virtually nothing, this can be an interesting
business model. As bandwidth becomes cheaper, the Cisco boss said, "Business customers and
consumers are talking about business model enablement more than technology per se".
Gates agreed that the fundamental objective is to get more users. "Here is where terminology
matters." Users can become paying customers. Schmidt seconded this idea, and refined Gates’s
observation: "Google set out to solve the search problem and discovered ads," Schmidt noted.
"We have the mission of organizing all the world’s information - all of it," he declared. But
understandable inhibitions remain, and ease of use challenges. Both require solutions.
Zennström said the purchase of his company Skype by eBay has meant an expansion of the
"self-distributed peer-to-peer model" to integration within the eBay business model. eBay clients
may be separated by some distance, but now the online sales and auction house can provide
users "with an enhanced experience" combining video and voice.
Gates mused that with ubiquitous connectivity "you can eventually even get rid of telephone
numbers." But he cautioned it will be quite some time before voice recognition comes of age.
"Language is so ambiguous," he pointed out.
The cross-border nature of Internet business and increasing competition mean that privacy
becomes extremely important, Zennström observed. Schmidt agreed, but noted that in any case
all companies fall under local law.
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FRANS MAAS RECOMMENDS BID TO SHAREHOLDERS
European transport groups Frans Maas and DSV have confirmed that they are likely to reach
agreement on a public offer by DSV for all outstanding shares in Frans Maas. The price agreed
has been set at €38.00 including any 2005 dividend. The management of Frans Maas has stated
that it will recommend the offer to its shareholders.
The Offer Price of €38.00 per ordinary share represents a premium of 39% to the average share
price over the last 90 trading prior to 21 December 2005, the day DSV and Frans Maas issued a
press release confirming the discussions between the two companies.
According to the management of DSV the deal represents an opportunity for the company to fulfill
its strategy of becoming a pan-European Road freight operator while at the same time
broadening its European scope and competences within logistics services. Management believes
that the businesses are highly complementary and hopes that the combination will be able to
realise synergies through some initial cost savings and optimization of the Frans Maas network.
At present it is still uncertain what will happen to the Frans Maas brand which DSV acknowledges
is very strong in the industry. In the coming months, DSV and Frans Maas together will
investigate the implications on the employment level of the combined workforce and the effect of
the synergies of the proposed merger.
For 2005, Frans Maas expects to realise revenues of approximately €1,080 million and an EBITA
margin of around 2%. The combined businesses of Frans Maas and DSV will have annual
revenues of approximately of €4.1 billion, 19,000 employees and own operations in more than 50
countries worldwide.
IN THE NEWS
From the International Transport Journal - January 6th 2006
People & Companies
Honorary membership of Irish International Freight Association
Michael Slevin and Harry Hines have been unanimously invited by the council of the Irish
International Freight Association (IIFA) to become honorary members of the association, in
recognition of their many years of service to IIFA. Both have accepted the honour. Hines served
two terms as IIFA president (in 1992 and 2001), and Slevin has served on the council for 10
years and has been honorary secretary for five years.
REGULATION OF FREIGHT FORWARDERS
India is introducing legislation to cover shipping trade practices of all intermediaries in a move
that has pleased the country's shippers.
The Shipping Trade Practices Bill has been drafted after consulting stakeholders and is expected
to be introduced in Parliament when it meets in late February.
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Shipping Secretary D.T. Joseph, who retired last week, told reporters in New Delhi that the
legislation would cover all intermediaries and logistics service providers involved in export and
import of cargo.
"The idea is to bring all services rendered in arranging and transportation of export-import cargo
under some kind of quality control," Joseph said. "We also propose setting up of a tribunal that
would take care of disputes involving these service providers."
Service providers would include any company that provides services to transport cargo by air,
sea, road or rail. Freight forwarders, shipping agents, NVOCCs, consolidators, container freight
stations (CFSs), inland container terminals, in-transit warehouses, among others, would come
under the legislation's purview.
A request by shipping lines and shipping agents to be excluded from the legislation was rejected
by the government.
We have been demanding fair trade practices, transparency, competitive and reasonable rates
for more than a decade, said S.R.L. Narasimhan, secretary of the Western India Shippers’
Association. There is a need for a monitoring regulatory mechanism.
The provisions of the legislation will apply to shipping lines and conferences for bunker, currency,
container detention and congestion charges. The provisions will not apply to freight rates fixed by
shipping lines.
The legislation will provide a mechanism for consultation to discuss changes in general tariff and
imposition of surcharges. There will be a dispute settlement mechanism to investigate unfair or
unreasonable rates, charges, classifications, and practices of service providers.
VESSEL FOR NORSEMERCHANT FERRIES
NorseMerchant Ferries, which was recently acquired by Norfolkline, has introduced its latest
Italian-built passenger/freight ferry into its Irish Sea routes ahead of schedule, the 26,500 gross
ton ro-pax ferry "Mersey Viking". It entered service on the Birkenhead-Belfast route, where it now
operates alongside its sister vessel the "Lagan Viking". Both vessels are 186.5 m long and are
certified to carry 970 passengers. Each has five vehicle decks, providing 2,885 lane metres.
Consequently, they can accommodate around 150 commercial vehicles and 160 trade and
private cars.
NEW MANAGER
Renato Chiavi handed over management of DHL Danzas air and ocean to Chris Fahy on 1
January. Fahy, who was previously regional head Europe, now manages the division, which has
grown since the acquisition of Exel and is now called DHL global forwarding. Chiavi will continue
to work with the company and will actively support the integration of Exel and help promote
the expansion of the project and special forwarding business, among other things.
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THE BIG PICTURE
with an interesting reference to a Rubiks' cube
"EVERYONE STANDS TO LOSE IF TRADE ROUND FAILS"
Negotiators agree that much work is needed to keep on track Davos, Switzerland, 28 January - If
the current round of trade negotiations doesn't come together, everyone stands to lose. This was
the message delivered by Washington at the World Economic Forum Annual Meeting 2006 to
both developed and developing countries as they grapple with the huge issues still open in trade
liberalization talks. Panellists generally agreed that there is much work to do before the 30 April
deadline set by trade ministers in Hong Kong to agree on cutting tariffs and subsidies in
agriculture andmanufactured goods.
Both Peter Mandelson, Commissioner, Trade, European Commission, Brussels, and Robert
Portman, US Trade Representative, agreed they see what Portman called a "different spirit
emerging", following a private meeting today organized by the Swiss government. Mandelson
urged all players to capture and use the spirit emerging from the meeting and maximize the better
"mood music". Portman praised this turn and encouraged all countries to work together, but
cautioned that if the current round fails, everyone stands to lose.
Pascal Lamy, Director-General, World Trade Organization (WTO), Geneva, compared the
negotiating process to aligning a Rubik's cube using 150 pairs of hands. "The reality is that we
need to sequence things. Two colours - agriculture and industrial tariffs - must come together.
The major players are here. On agriculture, the EU will have to move on market access and the
US will have to move on domestic subsidies. Japan and Switzerland will have to do both," he
said.
There is just one year to put together what the world trading system will look like over the next 10
years, he said. Lamy stressed that agricultural tariffs will have to be reduced; it is only a question
of how much as compared to the price developing countries will have to pay in other areas.
Alan Kyerematen, Minister of Trade, Industry and Presidential Special Initiatives of Ghana,
warned that increasingly, many countries are becoming disillusioned about whether the
multilateral trading system can deliver on its promises. "WTO members have failed to put
development at the centre of the negotiations," he said. The Minister called for greater
convergence in the respective EU and US positions and on developing countries to better
align their common interests.
Lamy responded that the present multilateral system - with rules and dispute-settling mechanisms
-is fairer than any other system for developing countries. "Developing countries have a say
regarding balancing the system in their favour because they represent two-thirds of the
membership," he pointed out.
Notes to Readers for more information on the World Economic Forum
• Everything about the Annual Meeting 2006 can be found here:
www.weforum.org/annualmeeting
• Here are the key Participants: www.weforum.org/annualmeeting/participants
• In-depth Interviews with key business participants are here:
www.weforum.org/annualmeeting/indepth
• The entire Programme can be downloaded here:
www.weforum.org/annualmeeting/programme
• Follow the discussions and read the Session summaries here:
http://www.weforum.org/annualmeeting/summaries2006
• Watch the key debates live in our Webcasts at:
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www.weforum.org/annualmeeting/webcasts
• Download key debates as Podcasts or Audio Blogs at:
www.weforum.org/annualmeeting/podcasts
• Leave your comments in our Weblog at: www.forumblog.org
• Subscribe to or download Press Releases here:
www.weforum.org/pressreleases
NO FOREIGNERS PLEASE
Russia is not letting any foreign vessels ply their trade on its inland waterways for the time being.
Russian transport ministers Igor Levitin said that international transport companies had
expressed an interest in using Russia's rivers and canals, "as sailing thereon is free". But, he
continued, Russia could not permit clearance at this juncture, as the standard of the waterways
would not allow it. The rivers Neva, Svir, Volga and Don are connected by canals and lakes,
enabling passage from the Baltic Sea to the Black Sea. (vr)
http://www.mintrans.ru
CABOTAGE IN ITALY
The Italian transport ministry has pointed out to all foreign companies active in unaccompanied
intermodal transport that pre and post-feeder trips to an intermodal railway station in Italy are
considered cabotage traffic. Thus the Italian regulations for cabotage services apply to the
vehicles concerned, which may only be performed on 30 days within a 60 day period.
Drivers additionally have to carry a drivers' logbook - obtainable from the transport ministry in
Rome- in the vehicle.
EU AND LINER SHIPPING
After a long assessment period the EU commission is now going to initiate the repeal of
regulation (EG) 4056/86. This would remove the option of fixing prices and cargo space
availability for liner shipping companies. In its recommendation to the EU's council of ministers
and to the European parliament, the EU commission said that it would also be ending existing
exemptions for tramp and cabotage services. Shipping line consortia which do not fix prices, but
rather offer and coordinate services, will not be affected. The EU commission wants to allow the
shipping lines a two-year transition period.
DOG STORY
Question: If your dog is barking at the back door and your wife is yelling at the front door, who do
you let in first?
Answer: The dog, of course. He'll shut up once you let him in.
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NEW SCALE OF CHARGES- FREJUS AND MONT BLANC
The charges to use the Fréjus and Mont Blanc road tunnels were increased on 1 January 2006.
The costs for heavy commercial Euro 1 vehicles rose by 4.08%, those for Euro 2 and 3 vehicles
by 3.83%. An increase of 2.24% applied for light trucks. The tunnel operator Société Francaise du
Tunnel Routier du Fréjus (SFTRF) said the increases were due to high safety costs, which have
to be passed on to the customer via the tunnel levies.
For further details see http://www.tunneldufrejus.com
CARGOLUX AND BOEING
Cargolux has been selected to operate the European routes of Boeing's large cargo freighter
(LCF) project from Grattaglie (Italy). The project involves specially-modified B747-400 large cargo
freighters transporting parts manufactured in Japanese and European facilities to Everett
(Seattle, USA) for the assembly of the all-new Boeing 787 Dreamliner.
The LCF project involves assemblies from units in Italy, Japan and from three US facilities.
Evergreen International Airlines has been selected to fly the routes from Japan and routes within
the US. Sojitz Corp of America has been chosen to coordinate logistics and other services for
Japanese routes. Three large cargo freighters will be used as the primary means of transporting
major B787 assemblies to its Everett final assembly site from partners around the world.
DATE FOR YOUR DIARY
ANNUAL GOLF CLASSIC
Venue: Skerries G.C.
Date: Thusday, May 11th
Time Slots: 12-12.30 and 2.00 – 4.30
Full details will be sent to you nearer the time.
THE LAST WORD
The way to get rid of temptation is to yield to it
Oscar Wilde
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