FIATA REVIEW Magazine of the International Federation of Freight Forwarders Associations No. 106, March 2015 Slovakia – The Little Big Country New Year, New Challenge – Train-the-Trainer Course in Chile A Young Voice – Opinions on the FIATA World Congress FIATA REVIEW NO. 106, MARCH 2015 3 Contents Editorial 5 From the President’s Desk News 6 Train-the-Trainer Course in Santiago de Chile 9 Who’s Absent? Did you Validate your Training Programme Yet? 12 FIATA’s NextGen: Finished Product or Work in Progress? 14 The new CTU Code Country Report 10 Slovakia – The Little Big Country Personally 17 Meet Chelliah Krishnan Vice President of FIATA Here & There 18 Happy Birthday! Agenda 19 Forthcoming Events Avalon is the Bratislava castle Provider of and bridge – Slovakia Photo 123RF EXCLUSIVE The FIATA Group Bond Programme Avalon’s programs are designed specifically for international logistics providers and our products and services are tailored for FIATA members. In addition to the FIATA Group Bond Programme; we also offer the following: • • • • Forwarder’s Liability Insurance Errors & Omissions Insurance Surety Bonds Cargo Insurance • Business Insurance • Claim Handling & Subrogation Services Contact us at [email protected] or +1 847 700 8176. Connect with Us! FIATA Secretariat Schaffhauserstrasse 104, PO Box 364 CH-8152 Glattbrugg/Switzerland Phone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 65 [email protected], www.fiata.com www.avalonrisk.com FIATA HEADQUARTERS SESSION ZURICH, 18—22 March 2015 All meeting rooms (except for the Regional Meeting Asia Pacific which is on the 31st Floor) are on the first floor of the Swissôtel. The Meeting Room of the FIATA Foundation Meeting is located at Hotel Sternen Oerlikon – Room Hans. WEDENSDAY, 18 MARCH Meeting of the Presidency* FIATA Secretariat: Marco Sorgetti FIATA Foundation Meeting* FIATA Secretariat: Barbara M. Wieser (for Members only) Time 9.00–16.00 16.30–18.30 Location Swissôtel Room St. Moritz Hotel Sternen Room Hans THURSDAY, 19 MARCH Association Members of the Region: • Africa/Middle East FIATA Secretariat: Bassil Eid 8.00–10.15 Swissôtel Room Zürich/Basel • Asia/Pacific FIATA Secretariat: Daniel Bloch 8.30–10.15 Room Arosa/Davos • Europe FIATA Secretariat: René Zimmermann 8.30–10.15 Room Bern • America FIATA Secretariat: Verena Schaer Coffee Break Advisory Body Legal Matters FIATA Secretariat: René Zimmermann Lunch (free disposal) Advisory Body Vocational Training FIATA Secretariat: Verena Schaer Advisory Body Safety and Security FIATA Secretariat: Bassil Eid Coffee Break Airfreight Institute FIATA Secretariat: Daniel Bloch 8.30–10.15 Room Vevey/Lausanne 10.15–10.45 10.45–12.00 Swissôtel Foyer Swissôtel Room Zürich/ Basel 13.00–14.15 14.30–15.45 15.45–16.15 16.15–18.00 Swissôtel Room Zürich/Basel Swissôtel Room Zürich/Basel Swissôtel Foyer Swissôtel Room Zürich/ Basel 8.30–10.00 10.00–10.30 10.30–12.15 12.30–14.00 Swissôtel Room Zürich/ Basel Swissôtel Foyer Swissôtel Room Zürich/Basel FRIDAY, 20 MARCH Association Managers Conference FIATA Secretariat: Verena Schaer Coffee Break Customs Affairs Institute FIATA Secretariat: Daniel Bloch LUNCH (FOR REGISTERED DELEGATES) Advisory Body International Affairs FIATA Secretariat: Bassil Eid Coffee Break Multimodal Institute FIATA Secretariat: René Zimmermann 14.15–15.30 15.30–16.00 16.00–18.00 Swissôtel, 1st Floor Room Lakeside Swissôtel Room Zürich/Basel Swissôtel Foyer Swissôtel Room Zürich/Basel 9.00–10.15 10.30–11.45 Swissôtel Room Zürich/Basel Swissôtel Room Zürich/Basel 13.30–15-30 15.30–16.00 16.00–17.30 19.30–22.30 Swissôtel Room Zürich/Basel Swissôtel Foyer Swissôtel Room Zürich/Basel To be confirmed SATURDAY, 21 MARCH FIATA Logistics Academy FIATA Secretariat: Verena Schaer Advisory Body Information Technology FIATA Secretariat: Bassil Eid Lunch (free disposal) Open session on the future of FIATA FIATA Secretariat: Marco Sorgetti Coffee Break Open session on the future of FIATA FIATA Secretariat: Marco Sorgetti Extended Board Dinner* FIATA Secretariat: Marco Sorgetti SUNDAY, 22 MARCH Meeting of the Extended Board* FIATA Secretariat: Marco Sorgetti (Coffee Break in the Meeting Room) *Please note that the meetings of the Presidency, the Extended Board and the FIATA Foundation are for members of the relevant Bodies only. 9.30–11.30 Swissôtel Room Bern Official Carrier FIATA REVIEW NO. 106, MARCH 2015 5 F rom the P resident’s D esk Dear Colleagues and Friends A t the time of writing this editorial the first month of 2015 was already coming to an end. listened to, in any case, our advocacy work is strong and is growing stronger. In this fast changing environment FIATA too is constantly on the move to improve and adapt to the changing needs of our The Presidency held its traditional win- industry. In the programme of our next ter meeting in Singapore on the 11th Zurich HQ Session in March, you will see and 12th of January with a strong and that an entire session has been reserved for constructive agenda. My thanks go to the an open discussion on the future of FIATA. Singapore Logistics Association and to As with any other organisation, we need our Immediate Past President Stanley Lim constant innovation, and we have gladly for hosting us in style. Stanley has recently taken on board the constructive suggesreceived an award for his achievements in tions some of you expressed at the FWC Logistics: you will find an article on this 2014 in Istanbul to open a debate on this in the following pages. Congratulations, crucial topic. Starting as brainstorming, Stanley! Your achievement reflects pro- we hope that new and constructive ideas foundly on FIATA too and we are all proud will emerge from the debate. of your results. Do not miss the report by Ms Verena On his way back from Singapore our Schaer on the recently concluded Train the Director General Mr Marco Sorgetti had an Trainer course in Chile and the Advisory accident, which resulted in an operation to Body Vocational Training Validation achis legs. He is now undergoing rehabilita- tivity: this is a clear sign of the importance tion, but we all know that his notebook of training and education for the entire is connected 24/7 and he is answering all FIATA constituency. messages in real time. Marco, best wishes Another young sprout has made his pen for a fast recovery from all of us! available to us: Zein Baluch tells us about The world goes through turbulences: com- his first experience at the FWC. We modity prices, especially energy prices, really have to listen more to the young have collapsed, currencies are fluctuat- generation and are working on initiatives ing widely, some regions appear to have to attract more young professionals to our emerged out of the 2009 world recession, events, especially our World Congresses. whilst some still struggle at zero growth. There is more in this number: the new In this landscape most governments and very important CTU Code, an interview institutions have acknowledged the im- with our friend and FIATA VP Krishnan portance of investing in infrastructure Chelliah, and the country report on Slovafor improved connectivity. If this comes kia: a beauty stretching from the Danube to fruition, it could reflect positively on to the Russian plains… Enjoy your readsustainable economic growth: FIATA was ing and see you soon in Zurich! first to strongly advocate for infrastructural investments, with a view to achieving Francesco Parisi better connectivity. Maybe it was written FIATA President in the stars, maybe our voice has been 6 News Train-the-Trainer Course The FIATA Foundation for Vocational Training chose a fine way to start this year. It sponsored a Train-the-Trainer course in Santiago de Chile from January 2nd to 16th, 2015. ALOG (Asociación Logística de Chile), FIATA’s Association Member in Chile, applied for this course, pointing to the importance of training and education in the field of freight forwarding and logistics in a country that is the world’s number one copper producer and the second largest exporter of salmon. The success of transportation and logistics operations depends decisively on the quality and qualifications of its employees. During two weeks, 13 course attendants obtained professional training in a condensed way. International facilitators included the following experienced personalities: Thomas Sim, ABVT Chairman; Uwe Schick, Director of Studies, Head of Department for Forwarding & Logistics and Senior Teacher at Julius-Leber-Schule, Frankfurt am Main; Vincent Valentine, transport economist at the United Nations Conference on Trade and Development FIATA has a historical tradition of re(UNCTAD) in Geneva, Switzerland; and spect for education. Its foundation cares Dr. Peter Wong, Professor at the Depart- deeply about the sector’s professional dement of Logistics and Maritime Studies velopment. Across the years a solid trainat the Hong Kong Polytechnic Univer- ing plan has been consolidated covering sity. Certainly, the success of education Andragogy, Road Transport, Air Transat the FIATA Foundation is the result port, Rail Transport, Sea Transport, of an emphasis on selecting teachers, Multimodal, Dangerous Good Handling, as well as prioritising investment in ICT, Logistics, Warehousing, Safety developing countries. and Security, Trade Facilitation, Insur- FIATA REVIEW NO. 106, MARCH 2015 7 in Santiago de Chile International Facilitators enjoying a guided tour at the Port of Valparaíso dents are assessed in several ways includ- side of the world, with other points of ing a challenging 6-hour examination on view and experiences. It’s also good that factual knowledge and individual presen- modules include topics or modes of transtations that evaluate their teaching skills. port not usually used locally.” Participants learn how to teach other adults, acquiring the effective skills that “I really think this course was excellent are necessary for industry training. In such in every aspect: excellent teachers and circumstances, teachers of adult learning materials.” One of the aspects that render this pro- who are working as facilitators are expectgramme distinct is its future-orientation, ed to prove themselves as unobtrusive and “It was an unforgettable experience and it industry acceptance and recognition. Suc- learn how to identify learning objectives, will contribute a lot to my future.” cessful TOT graduates receive a Train-the- create a lesson plan, and acquire presentaTrainer Certification that validates them tion skills that allow a natural flow and In addition, to have a better overview of the transportation industry in Chile, as official FIATA Foundation Trainers. interaction among the learners. The course also includes strategic planfacilitators visited the Port of Valparaíso. ning to ensure that a FIATA Diploma in The FIATA Foundation’s reputation as an Valparaíso is a major city, seaport, and Freight Forwarding Course is ultimately educational powerhouse is well-deserved educational centre commune in Chile. implemented in the country. ALOG lies – as can be inferred from some of the par- Visiting this city was an instructive experience for all. at the forefront of a determined educa- ticipants’ feedback: tion agenda – collaborating with national universities a course will be launched in “I’m grateful for this chance and pretty Aware of the strong need for differentiated Chile in March this year. Global economic amazed of what can be done with the development options in the transportacompetitiveness is the aim of this course, knowledge hereby acquired. The pro- tion and logistics industry, the FIATA and ALOG knows that education is one of gramme was challenging and the lecturers Foundation is planning two further TOT were great!” Programmes this year, one in Zimbabwe the drivers. and another in Cameroon. The TOT system values test-taking abili- “The FIATA TOT is world class. It is a ties, creativity and critical thinking. Stu- huge plus to have lecturers from the other ance, and Supply Chain Management. The global character of the programme is then enriched by local lecturers to provide students with national knowledge on Customs Procedures, Legal Matters, and specific modes of transport relevant to the country. FIATA REVIEW NO. 106, MARCH 2015 9 News Who’s Absent? Did you Validate your Training Programme Yet? with expert advice, tools and consulting not been Re-Validated in the last four services in order to support the execu- years and therefore are out-of-date. development of talent that is of great tion of educational programmes around To facilitate the Validation process, the concern to the Supply Chain and Freight the world. Currently, two programmes ABVT has: created a Validation Guide, Forwarding sector. can be validated, leading to the FIATA it has compiled the 14 FIATA Minimum ACCORDING to the supply chain and Diploma in Freight Forwarding and the Standards into a FIATA Diploma in Inter logistics professional development asso- FIATA Higher Diploma in Supply Chain national Freight Forwarding, and it has also compiled the 7 FIATA Minimum ciation CITT, only 8% of supply chain Management. Standards into a FIATA Higher Diploma employees are under 30. A recent study conducted by C. John Langley Jr of Penn The contribution and involvement of in Supply Chain Management. State University in collaboration with FIATA Association Members’ in training Capgemini Consulting, Penske Logistics, and education is vital to the continued Twice a year the Validation/Re-Validation and Korn/Ferry International, states: “… development of the freight forwarding Working Group meets, within the framethe logistics industry continues to suffer industry. Underpinning the entire global work of the FIATA Headquarters Sesa talent shortage, and isn’t doing enough economy, freight forwarding is a strong, sion, taking place in March every year in to attract interest in the field. Unfortu- mature and innovative industry that holds Zurich, and the FIATA World Congress, nately though, solving the supply chain’s together the fabric of modern life in the which takes place annually in September/ talent needs requires more than simply developed world. It is also critical as a October and is hosted every year by a attracting more talent, particularly for means to integrate emerging markets into different Association Member. Prior to leadership roles. To succeed in a slow the global trading system, thereby being each session, the candidate for Validation growth economy, shippers and 3PLs need an effective driver of development. The (a FIATA Association Member) needs to leadership teams that demonstrate high World Economic Forum’s Outlook on the fulfil a set of well-specified and important levels of competency in the multiple as- Logistics & Supply Chain Industry 2012 criteria that enable the establishment of an pects of maturity and agility described pointed out that, “… despite the mas- adequate, didactic education programme. above.” Similarly, Manners-Bell’s research sive investments needed in ports, airports, Programmes need to be Re-Validated evidenced that logistics managers around roads, trucks, ships and airplanes, the every four years. the world are experiencing difficulty in re- industry is essentially a people business. cruiting new staff with the requisite skills. It is estimated that around a quarter of all It is our industry’s responsibility to partner with relevant bodies and amplify Further, PWC’s study “Transportation costs are staff related.” our commitment of time, resources, and & Logistics 2030” stated that “… future job seekers still won’t see transportation Industry knowledge is gaining impor- passion to the end goal of creating better and logistics as a desirable industry. To tance as shippers expand their supply education and more competent freight stand out, transportation and logistics chains in response to increasing complex- forwarding and logistics human resources companies must proactively manage their ity, globalization and ICT. Training and who are equipped to succeed in this chaleducation are required to better align with lenging world. company brand.” market needs. Therefore, it is crucial that And what are FIATA Association Mem- all FIATA Association Members around bers doing about this? Since 1996 the the world Validate and implement a proAdvisory Body Vocational Training has gramme. Currently, 72 programmes in aimed to encourage training in the freight 54 countries have been Validated. There forwarding industry and further develop have been significant improvements in the professionalism therein. The ABVT the take-up rates of New and Validated Validation/Re-Validation Working Group programmes in recent years. However, provides FIATA Association Members there are some programmes which have A lot has been said about the slow 10 Country Report Slovakia – The Little Right at the heart of Europe and with a history intertwined with that of its neighbours, Slovakia has proudly preserved its own language and distinct cultural traditions. IT HAS A POPULATION OF OVER FIVE MILLION and an area of about 49,000 square kilometres. Slovakia is landlocked and bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is the capital, Bratislava, and the second largest is Košice. Slovakia is a member state of the European Union, Eurozone, Schengen Area, NATO, the United Nations, the OECD and the WTO, among others. The official language is Slovak; a member of the Slavic language family. The country was part of Czechoslovakia until the “velvet divorce” in January 1993 and has made significant economic reforms since its separation from the Czech Bratilava panorama with village Devín Republic. After a period of relative stagnation in the early and mid-1990s, reforms Slovakia is also an attractive country for by the OECD, currently ranks Slovak to the taxation, healthcare, pension, and foreign investors mainly because of its low secondary education the 30th in the world social welfare systems helped Slovakia wages, low tax rates and well educated (placing it just below the United States consolidate its budget, get on track to labour force. In recent years, Slovakia has and just above Spain). join the EU in 2004, and adopt the euro in been pursuing a policy of encouraging foreign investment. FDI inflow grew more National Industry January 2009. than 600% from 2000 and cumulatively Although Slovakia’s GDP comes mainly reached an all-time high of $17.3 billion from the tertiary sector, the industrial More Growth Ahead The Slovak economy slowed down in 2013 in 2006, or around $22,000 per capita by sector also plays an important role within its economy. The main industry sectors are but growth is expected to gather pace, the end of 2008. car manufacturing and electrical engineerreaching 2.2% in 2014 and 3.1% in 2015. ing. Since 2007, Slovakia has been the The composition of growth is to become University Education more balanced as the main driving force There are 35 universities in Slovakia world’s largest producer of cars per capita, shifts from net exports to domestic demand. spread all over the country. In the academ- with a total of 571,071 cars manufactured ic year 2012/2013, there were 210,263 in the country in 2007 alone. Slovakia was Employment is expected to grow only students enrolled at Slovak universities placed 1st in World production per 1000 modestly and over the forecast horizon and 67,343 students graduated (both data inhabitants in 2013 with 181 cars/1000 inflation will remain low. The government include Bachelor and Master Studies) in inhabitants. There are currently three deficit is projected to remain just below 2012/2013. The Programme for Interna- automobile assembly plants: Volkswagen’s 3% of GDP. tional Student Assessment, coordinated in Bratislava, PSA Peugeot Citroën’s in FIATA REVIEW NO. 106, MARCH 2015 11 Big Country of aircraft currently used. The airport has enjoyed rapidly growing passenger traffic in recent years. The Port of Bratislava is one of the two international river ports in Slovakia. The port connects Bratislava to international boat traffic, especially the interconnection from the North Sea to the Black Sea via the Rhine-Main-Danube Canal. Additionally, tourist lines operate from Bratislava’s passenger port, including routes to Devín and Vienna. ALFF (ZLZ) SR Trnava and Kia Motors’ Žilina Plant. From electrical engineering companies, Sony has a factory in Nitra for LCD TVs, while Samsung manufactures computer monitors and television sets in Galanta. Ports and Transport Bratislava’s geographical position in Central Europe has long made Bratislava a crossroads for international trade traffic. Various ancient trade routes, such as the Amber Road and the Danube waterway, have crossed territory of present-day Bratislava. Today, Bratislava is the road, railway, waterway and airway hub. Bratislava’s M. R. Štefánik Airport is the main international airport in Slovakia. It is located 9 kilometres northeast of the city centre. It serves civil and governmental, scheduled and unscheduled domestic and international flights. The current runways support the landing of all common types The Association of Logistics and Freight Forwarding of the Slovak Republic was founded in the year 1992. With 98 regular and 34 subsidiary members, it currently represents the largest number of forwarders in Slovakia. The Association is a member of CLECAT, FIATA and ICC NC SR. It cooperates with the Faculty of Operation and Economics of Transport and Communications of the University of Zilina in providing education to the university students. Slovak Republic – Facts & Figures Official name Slovak Republic Abbreviation SR Capital city Bratislava (pop. 452,608) Form of government Parliamentary democracy Area 49,035 km2 (18,932 sq.mi) Population 5,420,763 Major language Slovak Major religion Roman Catholic Export partners Germany 22.3%, Czech Republic 14.9%, Poland 8.8%, Hungary 7.8%, Austria 7%, France 5.6%, Italy 4.9%, UK 4.1% (2012) Import partners Germany 18.6%, Czech Republic 18%, Russia 9.9%, Austria 8%, Hungary 6.8%, Poland 6%, South Korea 4.1% (2012) 12 News FIATA’s NextGen: Finished Product Zein Baluch attended a FIATA World Congress for the first time in Istanbul held in October last year. The Fiata Review asked him to express his views from his unique perspective. What follows is his own appraisal of the event most of you have witnessed in life size. now. And even Dublin makes me excited, although I must confess Dublin will not be such a discovery as the others. The FIATA unique feature of changing venue every year exposes new ideas and contacts and offers all associations the opportunity to portray and promote their country or territory to the others. An opportunity that is difficult to pass. point presentations are what people want, with room for questions and dialogue afterwards. Meaningful graphics, images, and videos should be expected and encouraged. As a close associate commented: ‘why make a Power Point when you could make your point powerfully.’ ZEIN WRITES: “Following my very first Debate was an issue, because there was participation in the 2014 FIATA Congress, almost none of it where it could have been having been asked to express my impres- FIATA is an organization that is willing to used constructively. FIATA needs to take sions is indeed a great honor for me. The adapt and change in the midst of so many advantage of having so many logistics professionals at one place at the same time, fact that a young professional like me was challenges. by throwing challenges for discussions. asked to write a review of the Congress shows that FIATA truly wants to continue There is a willingness to welcome young It would have been great to see the floor growing and developing, and is also will- professionals from across the globe un- opened up and on fire in that area for more ing to remain open to input, suggestions paralleled in similar institutions. FIATA dialogue and real forums. Debates and and even criticism. As I said, I consider it is a truly global organization that caters exchange of ideas help to drive innovation. a great honor, and a challenge. for all countries and territories on this How can we begin to solve the problems logistic planet. This is really easier said we are facing in our industry if we never What struck me most about FIATA and than done. It has taken FIATA years if talk about them? Lectures and presentathe Istanbul World Congress 2014 was not generations to create and foster the tions are great, but progress is achieved the amount of technical, legal, commercial regional representations in the Americas, through dialogue and then action. I hope and organizational transfer of knowledge. Europe, Africa, the Middle East, and Asia- that FIATA will restructure the agenda Too much to absorb for a newcomer? Per- Pacific. FIATA’s board members represent for the Congress to ensure that dialogue is haps, I cannot vouch for others but it was each and every one of these regions, thus more prevalent. certainly a lot to absorb for me. making it a marvelous kaleidoscope of the Punctuality during the conference was a entire world’s logistic industry. The following are a couple of things that big challenge. Having grown up in the stood out to me. The networking amongst I could go on and on describing the pros Middle East, I understand when events colleagues which I could see translates of the FIATA Congress and FIATA in run 10 to 15 minutes behind schedule. into business contacts that flourish and general. However, I did observe some Some individuals have a hard time with make companies thrive; up to date discus- aspects which can be improved, for exam- this, but I typically do not. However, sions on new laws and regulations in our ple, the format of the presentations can during a conference proper timekeeping industry provide a unique platform for benefit from some streamlining. Power- is essential. Please appoint time marshals professionals to exchange experiences and Point needs to be used strategically and and license to break the speeches if they retain a wealth of precious information for not obsessively. There is no point showing become exorbitant. their businesses. twenty page PowerPoints when half of the audience’s attention may be lost half The age range at the conference was 20 The special focus on the host country way through it. Very few people can stay and up which is a remarkable result in was a real plus. I learned much about focused on the speaker while trying to an industry where ageing is perceptible. Turkey that I never would have if I had read the long theory of slides he or she is However, the activities, schedule, and sesnot attended the Congress. I am looking showing on the screen. This makes the as- sions did not cater to young adults. FIATA forward to Taipei for this same reason sociation look antiquated. Short and to the needs to make it a point to keep the young FIATA REVIEW NO. 106, MARCH 2015 13 or Work in Progress? First-timer Zein Baluch in the company of Turgut Erkeskin, President of UTIKAD, Issa Baluch and Farid Saffarzadeh and upcoming talent in our association. If a tragedy to see these young dedicated not, FIATA is giving up the chance to hear professionals having to stop from particithoughts, ideas and feedback from the up- pating due to the cost. coming generation that are going to help drive our industry to the next level. In this A lack of modernization is a drawback regard I must do the honors to mention for young professionals. As I mentioned Fortunate’s performance at the RAME earlier, people want to see new graphics, meeting, where she literally whisked her exciting images, and captivating presentaaudience into outer space with her sugges- tions. For the younger generation, this is not a want but a need. This is the way they tive and powerful presentation. learn. Yes, textbooks and lecturers are still Cost is a factor that may drive our youth heavily used in academia. But more and away. I realize that I am in a privileged more professors are unlocking the power situation and my father covered my costs of technology in the classroom every day. for the congress. That is not the case Why learn at the speed of sound when you for everyone. Many people my age are could learn at the speed of light? The use not able to afford the attendance fees. I of technology at the Congress should not sincerely hope that FIATA forms a plan be feared but rather embraced. to make the congress more accessible for these younger professionals. It would be Attending the FIATA World Congress was a privilege and the opportunity of a lifetime, but I surely intend to come again as an active participant. The individuals that I met at the conference have left a large impression on me. Whether it was attending compelling sessions during the day, delectable meals, listening to professionals telling me their remarkable personal career stories, or having inspiring and moving conversations with others in the hotel lobby restaurant, the 52nd FIATA World Congress has transformed my life. I hope that FIATA never views itself as a finished product, but rather as a work in progress, continually progressing to represent the moving interests and quests of the global logistics industry. Thank you, FIATA, for this opportunity. Zein Baluch 14 News The new CTU Code A new set of guidelines dealing with the • Arrange for a safe working environment. packing of cargo transport units (CTUs) has been issued under the auspices of The International Maritime Organisation (IMO), • Check that the CTU and any securing equipment are in sound condition. The International Labour Organisation (ILO) and the United Nations Economic Commission for Europe (UNECE). The Multimodal • Select the most appropriate CTU type for the specific cargo. Transport Institute of FIATA was represented at the drafting meetings held in Geneva. • Pack dangerous goods near the doors of the CTU where possible. will promote higher standards of CTU transportation. The CTU Code will be one step behind a mandatory UN instrument. It has been approved by the United Nations Economic Commission for Europe (UNECE) and received approval by the International Maritime Organisation’s (IMO) Maritime Safety Committee earlier this year. The International Labour Organisation (ILO) approved the CTU Code earlier this month and accordingly the CTU Code will be officially published and replace the 1997 Guidelines. Critics however argue that as a code of practice it has little weight within the industry. MANY OF YOU may remember the TT Club video “Any Fool Can Stuff a • Do not concentrate heavy cargo over Container” and are aware of the catasmall areas of the floor. strophic consequences of getting this particular discipline wrong so we urge • Do not use securing or protection equipment which is incompatible with all FIATA Associations to disseminate the cargo. information to the forwarding industry regarding the CTU code. • Affix required placards, marks and Nevertheless, it is hoped that legislators signs on the exterior of the CTU. around the world will acknowledge the We are grateful to solicitors Holman Fenbenefits of the CTU Code and enshrine its wick Willan for their permission to reproduce this article which is one of the best In order to counter an ‘out of sight, out recommendations into domestic law, or at of mind’ culture, the CTU Code sets out least use the CTU Code as evidence of best summaries we have seen. a clear chain of responsibility. This chain practice when CTU claims arrive at court. The 1997 IMO/ILO/UNECE “Guide- attaches specific obligations to the various Bill Brassington, a consultant to the CTU lines for packing of cargo transport units parties in the maritime supply chain: con- Code notes that, “Codes of practice are (CTUs)” (1997 Guidelines) are being re- signor, packer, shipper, road haulier, rail intended to assist governments and emplaced by the new IMO/ILO/UNECE haulier and consignee. This is a positive ployers in drawing up regulations and can Code of Practice for the packing of CTUs change, as where the cause of the cargo be used as models for national legislation.” (CTU Code), which is fairly comprehen- damage can be identified then authorities sive in nature. It imposes key common will more easily be able to impose liabil- The CTU Code will enhance the safety not sense requirements upon many parties, ity on a particular party. It is hoped that only of employees who come into direct including: the increased likelihood of accountability contact with CTU but also the safety of Reach the freight forwarders’ management executives FIATA REVIEW Next Edition May 2015 Advertising Deadline: 10 April 2015 FIATA REVIEW NO. 106, MARCH 2015 15 The New CTU code – Adhering to best practices decreases the risk of incident the cargo that is transported within them. claims they make per shipment. Efforts of the CTU Code as it signals a change in If weight is distributed more evenly and to improve safety standards without legal the way those within the maritime supply cargo is properly secured in the CTU intervention have failed to make much chain operate. This is arguably a change then it is likely that vehicle rollovers progress thus far. It is for this reason that that is long overdue and should bring and consequential injuries and fatalities the movement towards the introduction with it visible and extensive benefits. will fall drastically and reduce the fre- of the CTU Code to promote safer packing quent occurrence of damage to cargo. The of CTUs is to be welcomed. This measure The CTU code is currently available on need to properly pack a CTU cannot be should promote more responsible oper- the United Nations Economic Commisstressed enough and failure to distribute ating and facilitate safer environments sion for Europe (“UNECE”) website in and secure cargo appropriately will more throughout the maritime supply chain. English: www.unece.org/fileadmin/DAM/ than likely result in loss or damage to This will have the positive effect of en- trans/doc/2014/itc/id_07_CTU_Code_ hancing the economic efficiency of trade January_2014.pdf the cargo. as the percentage of cargo that is damaged FIATA is grateful to The economic consequences of this are should drop significantly. Matthew Gore of Holman Fenwick Willan not insignificant and shippers thus have for permission to reproduce this article. a vested interest in the correct packing All concerned with the transportation of of their cargo to minimise losses and CTUs should welcome the introduction I am Peace of Mind Mambio Ravezzi Sales Manager Cargo Italy Of course, Swiss WorldCargo is a hallmark for quality, precision and a dedicated global team. But all you really need to know is this: the moment you hand over your cargo to us, you can stop worrying. This is the true meaning of: We care for your cargo. SWISSWORLDCARGO.COM FIATA REVIEW NO. 106, MARCH 2015 17 News Chelliah Krishnan Meet Vice President of FIATA If you had not joined the transportation business, which profession would you have chosen? I always wanted to be a criminal lawyer as I lived near the court house and would listen to hearings and lawyers putting forward their defences citing various laws. This made me dream to become one too. Born in 1949 in Penang, Malaysia Krishnan graduated from ABE/UK in Business Studies. He began his career in 1969 in a junior position at Harper Gilfillan, an English company involved in trading consumer products, where he was actively involved in operations and gradually climbed the ladder to be a manager. In 1999, he decided to join a local company, TransAirMarine, where he was able to share his knowledge and be actively involved in both Air and Ocean Freight Management with global partners. He is now a senior manager based in Kuala Lumpur managing Global Accounts. So what fascinates you about the freight forwarding industry? This industry is so vast in its scope of services. We learn and cope with customer expectations and deadlines especially in project management and communication with global partners around the clock. This gives me the satisfaction of fulfilling my customers’ deadlines. elements of carriers. Granting them exemptions from the Anti-Competition Act is a mockery. Looking at the future, what advice would you give a young person joining the industry today? Giving career talks in schools and polytechnics to young aspirants with this starting pitch “a Forwarder is an Architect of Transport” and all the scopes of services which can also lead them to be an entrepreneur. Generally speaking, what, in your opinion, has been mankind’s best invention (and why)? The evolution of express courier services in response to inefficient postal services which lead to the development of freight And what was the motivation to accept management to the point where multinayour post with FIATA? tional companies own aircraft and control Since I was actively involved in the local, at least 60% of the international market national, and regional logistics associa- share. tions it was my desire to serve the pinnacle. There are numerous challenges in the Asia Which famous person would you like to Pacific Region while the gap widens be- have met? tween air and ocean forwarders. I want to Martin Luther King Jr. – “If you can’t fly see the gap diminished as unity is strength then run, if you can’t run then walk, if you and FIATA needs this vision to lead its can’t walk then crawl, but whatever you members to be their global mouthpiece do you have to keep moving forward.” and set policies affecting the trade. Do you have any unfulfilled wishes How do you view the state of the (professional or personal)? industry today? I would like to see FIATA and IATA The industry today is very competitive thinking outside the box and joining and challenging. It is a nightmare when forces to be relevant to the pressing needs customers want forwarders to control their of trade especially in developing countries. supply chains at a competitive cost and lock that cost in for a few years but mid- What plans do you have for the future or for your retirement? dlemen are not prepared to do the same. I have no immediate plans to retire, but What changes would you like to see? when the time comes, I will be actively The logistics sector has not gained much involved in training and educating to give recognition from their respective gov- back to the trade what I gained from it, in ernments especially to regulate the cost the most difficult circumstances. 18 FIATA REVIEW NO. 106, MARCH 2015 Here & There Happy Birthday! FIATA congratulates three well known delegates on their birthdays. We wish them many more years of good health and happiness. Mr Sarosh J. Nagarvala (India) Mr Han Van Os (Netherlands) 75 on 13 January 2015 70 on 3 January 2015 Mr Han Van Os has been a FIATA Dele- Mr Nagarvala has been a FIATA Dele gate since 1986, was a Vice President from gate since 1987, was a Vice President 1999—2005, and has been an Honorary from 1989—1990 and again in 1994, Member of FIATA since 2007. and Treasurer from 1994—2005. He was Senior Vice President from 2009—2011, and has been an Honorary Board Member 140035FIATAReviewAd_FINAL.pdf 1 1/27/14 2:38 PM of FIATA since 2007. Mr Tullio Albarelli (Italy) 85 on 19 January 2015 Mr Albarelli has been a FIATA Delegate since 1981, was the Secretary General from 1989—1993, and has been an Honorary Board Member of FIATA since 1993. FIATA REVIEW NO. 106, MARCH 2015 19 Agenda Forthcoming Events March 19—22 2015, Zurich Switzerland FIATA Headquarters Session fiata.com/events/fiata-congresses-hq-sessions.html April 19—20 2015, Dubai/United Arab Emirates Africa/Middle East (RAME) Field Meeting May 18—20 2015, San Pedro Sula/Honduras ALACAT Congress 2015 alacat2015.com June 2—5 2015, Odessa/Ukraine International Transport Week transport-week.in.ua FIATA REVIEW Next Edition May 2015 Bi-monthly Magazine of the International Federation of Freight Forwarders Associations Circulation 6700 copies Published by FIATA International Federation of Freight Forwarders Associations Articles written by outside contributors do not necessarily reflect the views or policies of FIATA Editor International Federation of Freight Forwarders Associations FIATA Schaffhauserstrasse 104, PO Box 364, CH-8152 Glattbrugg/Switzerland Telephone +41 43 211 65 00 Fax +41 43 211 65 65 www.fiata.com, [email protected] Advertising sales FIATA Secretariat, Telephone +41 43 211 65 00 [email protected] Production Design: René Uhlmann Art Direction, Zurich Printing: Hürzeler AG, Regensdorf Copyright No article may be reproduced by any means in whole or in part without the written permission of FIATA June 3 2015, Odessa/Ukraine Xlll International Freight Forwarder’s Day ffd2015.plaske.ua June 24 2015, Bangkok/Thailand 9th Region Asia/Pacific (RAP) Field Meeting fiata.com/fileadmin/user_upload/documents/Meetings/RAP088_-_Circular__269kB_.pdf Reach the freight forwarders’ management executives September 8—13, 2015 Taipei/Chinese Taipei FIATA World Congress fiata2015.org October 3—8, 2016 Dublin/Ireland FIATA World Congress FIATA REVIEW Next Edition May 2015 Advertising Deadline: 10 April 2015
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