BIFAlink November 2021

BIFAlink November 2021

November 2021 The magazine of the British International Freight Association BIFA link Issue: 375 www.bifa.org

Showcasing our industry – Pages 12-13

INSIDE

6: News The use of an EORI number on SPIRE is to be mandatory

8: Policy & Compliance

Revised timetable announced for new Customs and DEFRA procedures

10: Policy & Compliance

Hauliers urged to prepare for new Customs rules from January 2022 16: Policy & Compliance Building a new maritime supply chain

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Robert Keen’s Column

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

Many thanks to those readers that took the time to contact us after last month’s edition of BIFAlink . The article regarding driver shortages and road matters by my colleague Robert Windsor seems to have been received well by many of you. It can be a tough act to generate a magazine every month and generally we receive good feedback, but times change, and many people access more instant information feeds from the daily online newsletters such as The Loadstar. We believe there is still an appetite among readers for longer articles, which are naturally written in a different style to internet updates. However, we are embarking on a review of communications to ensure our newsfeed to BIFA Members remains relevant and useful. More information on our plans in the new year. In the meantime all comments, criticisms and suggestions are welcome.

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

This month in BIFAlink you will see articles about ocean freight, which is the lead topic with the media at present. I have heard the question “why doesn’t somebody do something about it?” many times in October, as after years of being under the radar, logistics and supply chains are the current buzz words in the media (with the occasional mention of crisis). I have had many exchanges with radio, TV and print journalists scrambling to learn the intricacies of shipping and what has caused the current problems. The news reports being made are mainly informative and well researched, but by about 11 October we saw the first ‘will Christmas be cancelled?’ story. As readers who move goods every day will know, there is no overnight solution. Add the driver shortage to the impact of ultra large containerships and related port infrastructure that cannot cope, together with distribution depots full to capacity, and the overworked phrase “perfect storm” becomes an apt description. The causes of the current problems are well known to BIFA Members who are, as usual, finding solutions for customers. Is anyone ready for the Customs Declaration System – CDS? There have been reservations expressed by some BIFA Members about the complexity of the new system that will replace CHIEF. October saw the launch of an online training course developed with Agency Sector Management (ASM), which has already had a significant uptake. Early feedback was that the course makes a complicated subject easier to understand, so my thanks particularly to Carl Hobbis and Pawel Jarza at BIFA, Simon Adams from ASM, and Walkgrove, the external company we used to develop the course. By the time you are reading this, the October 2021 Multimodal exhibition should be a good memory. As I write we are gearing up for our first industry sector face-to-face meeting in the BIFA Forwarders Village. Indications are that attendance should be good and this will be an interesting experience as we assess further interaction. We are also planning physical meetings in Anglia, Essex and Dover where many BIFA Members have been urging us to return for some time. The BIFA Awards competition has now closed, and we have had a great response. We are planning the traditional ceremony at the Brewery as I detailed last month. Of course, COVID-19 is still “out there” so we will be watchful of any winter developments that could impact our planning. I am grateful that so many BIFA Members have taken the time to enter the awards, and to do so ahead of the closing date. Usually at this time of the year I am worrying that nobody has entered but then submissions flood in at the closing date. Talking to BIFA Members, I am aware how busy everyone is so thank you for taking time to support the “industry Oscars”, and good luck in getting to the final shortlists which will be nominated to the sponsors’ judging panel in November.

[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

November 2021

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BIFAlink

News Desk

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If Gatwick’s plan to bring its Northern Runway into routine use is realised, the volume of cargo handled by it could increase to Containerlines set for ‘eyewatering’ earnings Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business

around 350,000 tonnes per year by 2047 — up from 150,000 tonnes in 2019-20. This would be driven primarily by the expected growth in long-haul connectivity, with widebody aircraft to destinations in Asia and the Middle East being used by the additional runway. ON THE QUAYSIDE A new 11.5 acre storage park for empty containers at the port of Southampton will be able to hold additional empty containers to meet customers’ requirements, a critical factor in keeping supply chains moving when dwell times at terminals across the UK have increased, says the port’s owner DP World. The storage park will add 25% more storage capacity for empty containers. DP World has begun work on a new fourth berth at its London Gateway logistics hub to increase supply chain resilience and create more capacity for the world’s largest vessels. IN BUSINESS With careers in logistics not always receiving the most positive press, it is heartening to hear that the logistics sector is among the best at retaining workers. Statistics for 2015-2021, presented by Totaljobs, indicate that 49% of those logistics workers surveyed have remained in the sector, with each spending an average of 10.1 years in the industry and 7.2 years with the same employer. International Cargo Handling Coordination Association (ICHCA) and the International Vessel Operators Dangerous Goods Association (IVODGA) have signed a Memorandum of Understanding (MOU) to assist the dissemination of effective guidance on the correct safety procedures that need to be employed on container packing and declaration.

ON THE OCEAN Shipping consultant Drewry has revised its full year forecasts for the combined liner community. It is now suggesting that the world’s containerlines are on course to post “eye-watering” earnings before interest and tax (EBIT) of USD150 billion, at least five times previous all-time records for the sector. Sale and purchase activity in the containership market declined sharply in the third quarter but prices remain on a rising trend, with owners chasing a smaller pool of available assets. Alphaliner reported that sales volumes fell sharply in the July-September period, with ‘just’ 103 ships of 380,000 teu sold – a significant drop from the 170 ships of 625,000 teu that changed hands in the second quarter. The maritime supply chain disruptions will not normalise before the end of 2022, according to the latest Container Forecaster report published by Drewry in early October. The analyst expects fleet growth will continue to lag behind demand growth this and next year, but the discrepancy will be eased from 2023 onwards when the orders for newbuild vessels come on to the market. The huge increase in container shipping asset values has given investors a rare opportunity to leave the market on a high and with box shipping set to return to normal at

warehouse space in Q3 2021 totalled 15.7 million sq ft, bringing the total amount of space leased this year to 46.9 million sq ft. That is 27% above the Q1-Q3 2020 total and puts the UK industrial and logistics sector on course for a record year as the unprecedented levels of occupier demand look set to ensure that the industry will beat the 51.6 million sq ft of space taken in 2020. IN THE AIR IATA has urged the air cargo industry to continue working together at the same pace, with the same levels of cooperation as during the COVID-19 pandemic to overcome future challenges and build industry resilience. Presenting at the 14th World Cargo Symposium (WCS) in mid-October, it said that sustainability, modernisation and safety are key priorities. Air cargo load factors increased to 68% during the final week of September, surpassing pre-COVID- 19 load factors during even peak season. At the same time, available capacity remained down by more

than 10% from 2019 levels, while chargeable weight was virtually flat, according to the latest analysis from Clive >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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