BIFAlink September 2021

BIFAlink September 2021

September 2021 The magazine of the British International Freight Association BIFA link Issue: 373 www.bifa.org

HMRC confirms CHIEF system withdrawal date Pages 12-14

INSIDE

6: News National

10: Policy & Compliance

Apprenticeship Week 2022 date announced

Quay rent, demurrage and storage charges double in a year 16: Profile B&H Worldwide was the winner of the BIFA Supply Chain Management Award

8: Policy & Compliance The advantages of ‘unaccompanied’ for EU trade

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Robert Keen’s Column

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BIFA launches CDS training course

BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266

August saw an announcement from HM Revenue and Customs (HMRC) of the timetable for the full introduction of the Customs Declaration Service (CDS) and the retirement of the CHIEF system that has enabled UK entry processing for almost 28 years. BIFA has been asking for clarity regarding the full introduction of CDS for a long time and we have expressed concerns from BIFA Members that CHIEF should not be withdrawn from service until CDS is proven to be operationally sound and fit for purpose. There is history in the UK of Government computer transformation not meeting milestone dates and some BIFA Members have contacted us to express concerns, however the publication of the HMRC timetable suggests that there is

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Director General Robert Keen [email protected] Executive Director Robert Windsor

confidence in an orderly transition, the key word being ‘suggests’. So, we are pleased to announce the launch of a new BIFA online training course from September designed specifically to help our Members understand and implement the different working methods involved with the new system. The course is suitable for anyone completing Customs declarations and will cover the main differences between CHIEF and CDS to enable users to submit Customs declarations for exports and imports via the new system no matter which software supplier is used. Full details can be found at www.bifa.org/training/customs-procedures Having started the ball rolling by commissioning development of the course last Autumn, I must pay tribute to my BIFA colleagues who have put in many hours of work with our provider Walkgrove, a specialist e-learning solutions company. We also thank our friends at Agency Sector Management (ASM UK) whose technical help was invaluable. Those of you with long memories will remember the so-called Nigerian fax scam that later became known as the 419-letter scam (419 being the section of the Nigerian criminal code covering such activity). Of course, with the advent of e-mail such scams have proliferated and no doubt you all receive scam e-mails on a regular basis and have procedures in place to identify and ignore them. So, you may have been concerned if a recent e-mail appearing to come from BIFA landed in your inbox, pursuing the usual format of an unpaid invoice. Many BIFA Members contacted us asking if our systems had been hacked but it seems that this is termed a ‘spoofing’ event and was orchestrated from outside of BIFA. As always with dubious e-mails, close examination of the sender e-mail address reveals that it has no relation to bifa.org All we can do is advise BIFA Members to ignore and delete it in the same way that you would the offers from people to transfer millions of pounds into your bank account. If you have any concerns please contact the Secretariat. Last month, I commented on increasing pressure from consumer bodies on regulatory authorities to “do something” about the global maritime supply chain problems and shipping line charges. What anyone can do to address rates charged in a free-market economy is questionable however the matter has been referred to the UK Competition and Markets Authority (CMA) by the British Chambers of Commerce. The CMA is currently consulting to understand the position and it’s our view they will not intervene unless there is any evidence of shipping lines colluding on pricing. However, BIFA Members are increasingly bearing the brunt of customer complaints about a situation that is beyond their control. Delays such as a lack of drivers, disrupted port operations and COVID-19 or “pingdemic” related problems are Force Majeure so it is important that BIFA Members maintain communication with customers to emphasise that you are acting as an intermediary and such matters are outside of your control. Customers need to be reminded that any such additional costs will need to be passed on. We published a report recently (https://bifa.org/news/articles/2021/jul/freight-association-sees-no-change-in-container- shipping-fundamentals-for-months-possibly-years?l=y) at the request of the BIFA Surface Policy Group to assist BIFA Members in demonstrating to their customers that this is a global problem. To end, I would like to remind Members that from 1 October 2021, there will be new requirements to continue importing animal products from the European Union into Great Britain. It is important that businesses take the necessary preparatory steps to ensure they can comply with the new requirements. To assist businesses, the Trader Readiness Team Animal and Animal Products Imports Project will be holding webinars for traders. Search Gov.UK for “Webinars for importers of food and drink products from the EU to Great Britain”

[email protected] Executive Director Spencer Stevenson [email protected] Executive Director Carl Hobbis [email protected] Policy & Compliance Advisor Pawel Jarza [email protected] Policy & Compliance Advisor David Stroud [email protected] Editorial Co-ordinator Sharon Hammond [email protected] Membership Supervisor Sarah Milton [email protected] Published by Park Lane Publishing [email protected] Contributors

Robert Keen, Robert Windsor, Pawel Jarza, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond

Note to media: If you wish to use items in this magazine that are older than 1 month, please contact the editor to ensure that the item in question still reflects the current circumstances. 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.

Robert Keen Director General

September 2021

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cranes for Terminal 1 at the Port of Liverpool to further support growth from intra-European feeder networks and increase its service offering by increasing the height and reach capabilities of the terminal. North-South routes drive rising reefer freight rates Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business

ON THE OCEAN Reefer container freight rates have risen sharply through 2021 – and in contrast to dry cargo rates are forecast to rise further in 2022, driven by catch up on North-South routes, according to Drewry’s Reefer Shipping Annual Review and Forecast 2021/22 report. It adds that the resurgence in reefer freight rates has not been uniform across all trades, with pricing recovery particularly strong on the main East-West routes, but less so on the North-South trades. The new DFDS ferry Côte d’Opal, which made its maiden voyage on the Dover-Calais route in early August, can carry 3,100 lane metres of freight, making it the longest ferry on the short straits route. With two engines instead of four, the vessel will offer reductions in fuel consumption and CO 2 emissions and have a service speed of 20-22 knots. Containers have proved a lucrative business for the multipurpose sector, which faces a boom in all business areas, say a number of the sector’s major carriers. A shortage of new vessels may put a damper on the supply of vessel capacity but keep rates high.The risks of placing container cargo on bulk carriers and general cargo ships are explained in an article on the Gcaptain website, which can be read at: https://tinyurl.com/y4wjvms7 GOING OVERLAND Ti and Upply’s most recent European Road Freight Rate Benchmark (Q2 2021) stood at €1,147, up 3.2% year-on-year or 0.4% quarter-on-quarter, as a result of rising demand levels and supply chain disruption. UK outbound rates were 16.8% higher year-on- year as carriers price in disruptive

IN BUSINESS The National Crime Agency has warned companies with operations at the UK border, such as port and airport operators, contractors, couriers and freight operators, that their staff with detailed knowledge of border controls and processing could be targeted by organised crime groups that are seeking to exploit the COVID-19 crisis. A recent Gartner survey found that 17% of chief executives and senior business executives in supply chain- intensive industries believe cost optimisation is the main issue that chief supply chain officers should focus on. Supply chain resilience was cited as the next most important issue, named by 16% of the 199 chief executives surveyed. The global contract logistics market declined by 3.3% in 2020, ending a decade-long growth streak, according to new research from Transport Intelligence (Ti). However, the post-pandemic economic rebound will be sufficient to drive strong contract logistics growth of 6.5% in 2021, says the consultancy, which forecasts the global contract logistics market will be 24% larger by 2025 than before COVID-19. CUSTOMS MATTERS HMRC announced in early August that at the end of March 2023 it will close the Customs Handling of Import and Export Freight (CHIEF) system that handles declarations. The new Customs Declaration Service (CDS) will replace it in a phased withdrawal whereby 30 September 2022 will see the ending of import declarations via CHIEF and 30 March 2023 will see the full closure of CHIEF/National Export Systems (NES).

new Brexit procedures, compounded by an increasingly acute driver shortage problem. Leeds City Council, West Yorkshire Combined Authority and Bradford Council have secured a Department for Transport and Energy Saving Trust grant to fund 32 new electric- cargo bikes to the value of £160,000. This is part of the latter’s £2 million fund aimed at helping businesses and local authorities purchase cargo bikes in an effort to combat congestion and pollution in city centres. IN THE AIR According to IATA’s latest World Air Transport Statistics report, the top 25 cargo airlines last year saw traffic in terms of scheduled cargo tonne km (CTK) decrease by 3.3% year on year. This was better than the overall industry decline of 9.1%, although it should be noted that IATA’s statistics only include scheduled services and not charter operations.

In the Baltic Exchange monthly market summary, Bruce Chan, vice president of global logistics at investment bank Stifel, writes that the use of passenger aircraft in an all-cargo configuration is unlikely to offset rising air cargo demand for the peak season. He adds that the inflow of passenger-to-freight conversions — so-called preighters — to provide incremental capacity, are insufficient to meet the demand and that, ultimately, these conversions are temporary and will be reversed when rates decline. ON THE QUAYSIDE A record volume of cargo was handled at DP World’s two UK ports in the first half of 2021. London Gateway saw throughput of 888,000 teu, a more than 23% increase on the previous first half year record set in 2020, while DP World Southampton achieved throughput of 995,000 teu.

Peel Ports has invested in two new ship-to-shore (STS) container

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September 2021

www.asm.org.uk [email protected]

agency sector management

asm (uk) ltd

@asmukltd



    ASM have been producing customs and freight management software and representing your interests with government and industry for the last 25 years. With all the current uncertainty and all the changes about to happen with customs systems and procedures, you can rest assured we will be doing just the same (and more) for the next 25.

Whether you are moving to our Sequoia software from a legacy system or bringing your customs clearances in-house for the first time, we have the tools to support you through that migration. Email us at [email protected] for more information.

Air   Ocean   Road   Imports   Exports   All customs declarations    Worksheet automation 
Customs Tariff    CFSP management    Customs Warehousing     Duty management    NCTS  
Transit (CT) Guarantee management    Import ETSF  
   CCS-UK electronic fallback    Export DEP management   Job costing and invoicing    Air waybills and eAWB    Bills of lading    Barcoded cargo labels    Consignment security declarations    Collection and Delivery notes    Consolidation management and Manifests    eDocument management   Limitless integration  
Limitless automation    Archiving

    
 

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Making freight forwarding a career of choice

In the next few weeks, you will receive a personal copy of a useful booklet full of ideas about how to promote your business and the industry to the next generation as a career option. Carl Hobbis, executive director, said: “One of the four pillars at BIFA is industry promotion, and it is our weakest in terms of activity. “We have our own plans to engage with schools better and the idea behind the booklet is to hopefully inspire Members around the country to do something locally. “We need a combined effort to make a real impact.” He added: “Schools need employer engagement and, apart from the blue-chip organisations, generally do not know where to start or who to approach, so why not reverse this and contact the school direct. Their careers lead is always listed on their website. “Furthermore, we have had a specific apprenticeship standard for International Freight

Forwarding for over three years and recently the sector has been in the news more than ever, so what a great time to encourage someone to consider a career in international freight. “I personally dislike it when I hear ‘I fell into the industry’ – but however you started out we need you to go and talk about it more to young people and make it an industry of choice. If

every Member did one thing, it would make a massive impact.” Please keep us updated about your school activity by contacting Nezda Leigh at [email protected] who is coordinating all activity. For more ideas about careers days visit: https://apprentices.bifa.org/employers/career- day-kit/

National Apprenticeship Week 2022 date announced

The annual week-long celebration of apprenticeships will shine a light on the positive differences that apprenticeships can make to individuals, employers and to the wider economy. The week will also be an opportunity for BIFA Members of all sizes to show how they have stepped up during this

unprecedented and challenging time. Carl Hobbis, executive director, said: “We encourage Members to promote the great work of their apprentices, and how they have made a difference to the business. “Given all the challenges we have had to deal with, and the fact that the industry has its highest media profile ever, we need to promote it to the key workers of the future and

give young people employment opportunities. “Good planning of your future talent pipeline is paramount, so get the week pencilled in your calendar and get out there within your local community and promote the industry and your business.” Some ideas you could do or get involved with are: • Offer work experience

• Workplace visits • Work with your local school or college • Stage an event • Make a video or write a blog • Utilise your social media channels • Job swap for the day with an existing apprentice. For more information on apprenticeships visit: https://apprentices.bifa.org/

Increased incentive payments for hiring new apprentices

£3000

For further information about recruiting an apprentice visit apprentices.bifa.org Employers will receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021.

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September 2021

News Desk

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All change on the ‘virtual’ YFN

Advice on money laundering checks What is the advice from BIFA on money laundering checks? This was a question from a BIFA Member following a visit from HMRC asking for details of due diligence, searches and account application, etc, for an importer client. So, what should you do before you commence work on behalf of an importer? We cannot provide a ‘tick list’ answer but this ties in with what we have been preaching a lot in the past few years with the watchword “know your customer”. Money laundering is an offence and whilst certain disciplines are regulated in relation to this area, such as financial bodies and lawyers, the prevention of money laundering should be part of due diligence for any firm. It is not just the Money Laundering Regulations that apply but also the Proceeds of Crime Act, the Anti-Terrorism Act and others, so if you accept money that has been obtained as a result of criminal activity you may face action. No one can “turn a blind eye” over these issues and the legislation in this area is detailed and complex. What is needed is a culture of due diligence making sure the party you are dealing with is a genuine entity. See https://bifa.org/ information/good-practice- toolbox-bifa?p=1 for relevant BIFA Good Practice Guides.

Since the ‘Virtual’ Young Forwarder Network was started in May 2020, Kyle Lawrence, the chair of the most established region, London East, has fulfilled the same role for the digital format, which has become very popular. However, every 12 months it is good for someone else to have the opportunity to gain valuable experience from the role. As a result, from August Laura Hobby has taken over and Kyle will continue with the London East region as we endeavour to get live events back on in the fourth quarter of the year. Carl Hobbis, executive director, commented: “Kyle has done a fabulous job organising things behind the scenes. He has also supported other extra activities and talked at various careers events. He is a great ambassador for the industry and a real success story of

what can be achieved via the apprenticeship route.

(YFN) holds free events every two weeks for one hour. Since the YFN was established in 2019, there have been nearly 60 events and they are open to any employee of BIFA Members. Events are only listed one at a time and can also be found on the dedicated YFN LinkedIn page. For more information, see: www.bifa.org/membership/young- forwarder-network

“I am looking forward to working with Laura who, no doubt, will bring some new ideas and keep the momentum going. As with most things, this digital format is here to stay and once the regional face-to- face events are re-established, the online events will take place every three weeks.” The Young Forwarder Network

IATA names new head of global cargo

IATA has appointed Brendan Sullivan as its new global head of cargo with immediate effect, replacing Glyn Hughes who left the organisation in January. Since Hughes’ departure, Sullivan has been acting global head of cargo alongside his role as head of cargo operations and e-commerce. IATA said that Sullivan has worked in air cargo for 20 years and has spent 14 years at IATA, playing a key role in two recent initiatives; the One Source >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24

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