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YFN-50-2

In its first year, 741 individuals had attended 28 events organised by the YFN, which included regional launch events, airport and port tours, as well as talks by industry professionals.

In March 2020, COVID-19 led to the first national lockdown, which caused a temporary hiatus in planning, but events recommenced online in May 2020 with a virtual bake-off.

In the past 12 months, 1,222 participants have attended 23 online events with the 50th event, a virtual port tour of DP World London Gateway, taking place yesterday, attracting a record 108 participants.

The YFN was launched in March 2019 to create several regional networking groups, run by young forwarders and designed to help early talent and young BIFA members develop their knowledge and professional skills, but in a more social environment.

Carl Hobbis, BIFA Executive Director, who has management responsibility for BIFA’s training and development services, says: “When the YFN was launched, we said we thought it would prove to be a major step forward for the industry in developing its future freight forwarding ambassadors and leaders.

“The young people who are participating in the events are improving their knowledge of the sector, trends within it, as well as building their skill sets and learning from others.”

BIFA’s Young Forwarder Network (YFN) is committed to providing opportunities for those new to the industry to develop their knowledge and professional skills. Membership is free and open to any employee of a BIFA Member company.

Robert Keen, Director General of BIFA adds: “50 events in two years is a remarkable achievement and a clear sign of the attraction of the YFN to the younger generation within the freight sector.

“The YFN is really helping improve the promotion of the sector, making it more attractive to younger people and providing forums from which to learn.

“We now need more BIFA members to take heed of this opportunity by encouraging attendance at YFN events; and making greater efforts to promote the freight forwarding and logistics sector in their locality.”

Hobbis concludes: “As we aim for a century of events, hopefully, we will be able to hold some in a face-to-face, more social environment, just like in the first 12 months of the YFN.”

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Notes to editors

Currently, all YFN events, which are free, take place on Wednesdays in a virtual environment every two weeks approximately starting at 15:30 and lasting for one hour.

Details of the next event can be found at: https://www.linkedin.com/showcase/bifa-young-forwarders-network/?viewAsMember=true

For further information, or to offer your services as a speaker at an event, contact Carl Hobbis c.hobbis@bifa.org


8_HMM_Algeciras _Suez
The FMC met virtually and in closed session on 7 April to discuss developments in the ongoing FactFinding 29 investigation of challenges to the freight delivery system and possible Shipping Act violations, and to receive a briefing on the agency’s monitoring activities of ocean carrier alliances.

Commissioner Rebecca Dye reported on developments related to her investigation into the behaviour and practices of certain ocean carriers and marine terminal operators during the past six months where US supply chains have been stretched to the maximum.

“While most participants in the supply chain are doing their best to cope with the unprecedented import boom, there are reports of containership lines and terminal operators unfairly taking advantage of the situation or denying service to exporters in a way that may violate the Shipping Act. We must get to the bottom of this situation as soon as possible and that’s why Commissioner Dye’s investigation is crucial,” said the FMC.

In addition, the FMC is investigating alleged excessive tariff fees that ocean carriers charge shippers. The outcome could lead to new tariff regulations. An Advance Notice of Proposed Rulemaking (ANPRM) looking into the matter, published on 8 April, is the latest action by the FMC on container carrier billing practices, including an investigation into charges for services that may not have been part of the shipping contract.

The FMC said it is also concerned with “widely varying” interpretations and inappropriate application of “pass-through” charges to shippers without markup (not to exceed the charge the common carrier incurs) in connection with shipments moving under common carrier tariffs. Comments are due 60 days after publication in the Federal Register.

More information can be obtained from the longer news items that can be seen here:

Splash247

Freightwaves


HMRC are still looking into the problems but in the meantime, if you do not have access to statements but need to complete your VAT Return, you can estimate your import VAT figures for those months.

HMRC are also aware of the issues with January 2021 and February 2021 statements. The cause has been identified and can now give details on how to complete your VAT returns for the affected accounting periods.

If you take reasonable care to follow the guidance about how to complete your VAT return if you have problems with your monthly statements, but make an error completing your VAT return, there will be no penalty. 

We would also like to remind members that when using EIDR-based Delayed Declarations by VAT registered traders VAT has to be accounted for even if supplementary declarations have not been submitted yet. 

More information under the links below:

https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-import-vat#access

https://www.gov.uk/guidance/delaying-declarations-for-eu-goods-brought-into-great-britain


Please note that if you are:

  • moving goods under Common Transit Convention (CTC) with a Transit Accompanying Document (TAD); and
  • those goods are moving from EU to GB, or between NI and GB (in either direction)at a port that has adopted the Goods Vehicle Movement Service (GVMS), 

these movements and the TAD MRN must be pre-lodged with a Goods Movement Reference (GMR) by the haulier before you travel. 

Providing a GMR to your carrier at check in will notify the customs office of transit that goods have been brought into GB or NI under transit. This is a requirement of the Common Transit Convention.

The requirement for a GMR is in addition to any others needed in the country of departure - for example: SI Brexit system for movements from France or the Pre Booking Notification system for movements from Republic of Ireland.

A list of ports that have adopted GVMS can be found here

Please note that utilising GVMS will allow for seamless movements through ports and will ensure hold ups are kept to an absolute minimum. Registration for the Goods Vehicle Movement Service is straight-forward and you can register via the link below:

https://www.gov.uk/guidance/register-for-the-goods-vehicle-movement-service

Once registered for GVMS you can obtain a Goods Movement Request via this additional link:

https://www.gov.uk/guidance/get-a-goods-movement-reference 

If a GMR is not provided at port of Exit

Please be aware that failure to provide a valid Goods Movement Request for Common Transit Convention movements at check-in may result in:

  • Drivers being turned away at the port of Exit until a valid GMR is presented or 
  • The Office of Transit not being completed to mark entry into GB or NI. This is a breach of the CTC requirements and may cause further delays to your journey upon arrival at the GB or NI port or at your Office of Destination due to additional processing/checks.

Therefore, when moving Common Transit Convention goods into GB or NI Ports adopting GVMS, please ensure you always provide a valid GMR which contains your TAD MRN at the port of exit. 

Line of Sight between HQ and Drivers

In addition to the above a reminder to all hauliers of the necessity for a clear line of sight between your Headquarters (HQ) and drivers to ensure that cleared/held messages from GVMS are passed to the person in control of the goods and that they attend for checks where GVMS indicates they are required to do so. Failure to report for inspections means that hauliers have failed to meet customs control and transit requirements.

Haulier businesses/HQ’s should therefore check that mechanisms are in place to ensure messages are provided to drivers including processes for escalating messages outside of office hours. You should also stress to drivers the importance of meeting the customs control requirements. HMRC are working to improve the medium for sharing information to hauliers/drivers and will provide more information in future. However, for now please ensure you are familiar with your responsibilities for the sharing of held/cleared messages and ensuring the person in control of the goods attends for checks where required.

More information around haulier responsibilities including line of sight and moving goods under Common Transit Conventions in our recent GVMS Haulier Webinars. These can be accessed via: the following links:

  • EU>GB Haulier Webinar 1 - available on YouTube Link here
  • GB>NI GVMS Haulier webinar 1- available on YouTube Link here
  • GVMS Haulier Webinar 2 -available on YouTube Link here

 


Screen Shot 2021-04-12 At 07.31.15

Employers will now receive £3,000 for new apprentices of any age who join their organisation from 1 April 2021 to 30 September 2021.

Carl Hobbis, BIFA’s Executive Director, who has management responsibility for BIFA’s training and development services, says: “The latest increase in funding support is a further reason for our members to consider the apprenticeship pathway as a means of adding fresh talent to the industry.”

Having been actively involved in the creation of an International Freight Forwarding Specialist apprenticeship, BIFA has committed to promote its availability since it was introduced in 2018.

Hobbis adds: “Given the much publicised shortage within the sector of staff with Customs processing knowledge, we are reminding members that whilst there are ten apprenticeship standards in the transport and logistics sector, the International Freight Forwarding Specialist apprenticeship is the only one with Customs as a mandatory module.

BIFA Director General, Robert Keen says: “Whilst our members are currently rightly focused on significant business continuity issues, we welcome the additional funding.

“As one of the largest providers of freight forwarding and Customs-related training courses, we are ready to help any of our members that are seeking to take advantage of the additional funding being made available to recruit apprentices.

“There is also a dedicated area of the BIFA website – https://apprentices.bifa.org/ - that can help both employers and potential recruits to better understand apprenticeship opportunities in the freight forwarding industry.”

Hobbis concludes: “For SMEs, the apprentice programme can cost as little as £450 per apprentice, and includes a BTEC qualification for the apprentice as well, which makes it great value. BIFA is committed to encouraging its members to capitalise on apprenticeship opportunities.”

Further details can be seen on the government website here: https://tinyurl.com/2b8b7wna

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Because comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted all comparisons to follow are to February 2019 which followed a normal demand pattern.

  • Global demand, measured in cargo tonne-kilometers (CTKs*), was up 9% compared to February 2019 and +1.5% compared to January 2021. All regions except for Latin America saw an improvement in air cargo demand compared to pre-COVID levels and North America and Africa were the strongest performers.

  • The recovery in global capacity, measured in available cargo tonne-kilometers (ACTKs), stalled owing to new capacity cuts on the passenger side as governments tightened travel restrictions due to the recent spike in COVID-19 cases. Capacity shrank 14.9% compared to February 2019.

  • The operating conditions remain supportive for air cargo:

    • Conditions in the manufacturing sector are robust despite the recent spike in COVID-19 outbreaks. The global manufacturing Purchasing Managers’ Index (PMI) was at 53.9 in February. Results above 50 indicate manufacturing growth versus the prior month.

    • The new export orders component of the manufacturing PMI – a leading indicator of air cargo demand– picked up compared to January.

    • Supply chain disruptions and the resulting delivery delays have led to long supplier delivery times – the second longest in the history of the manufacturing PMI. This typically means manufacturers use air transport, which is quicker, to recover time lost during the production process.

    • The level of inventories remains relatively low compared to sales volumes. Historically, this has meant that businesses had to quickly refill their stocks, for which they also used air cargo.

“Air cargo demand is not just recovering from the COVID-19 crisis, it is growing. With demand at 9% above pre-crisis levels (Feb 2019), one of the main challenges for air cargo is finding sufficient capacity. This makes cargo yields a bright spot in an otherwise bleak industry situation. It also highlights the need for clarity on government plans for a safe industry restart. Understanding how passenger demand could recover will indicate how much belly capacity will be available for air cargo. Being able to efficiently plan that into air cargo operations will be a key element for overall recovery,” said Willie Walsh, IATA’s Director General.

February 2021
(% chg vs the same month in 2019)

World share1

CTK

ACTK

CLF
(%-pt)2

CLF
(level)3

Total Market

100%

9.0%

-14.9%

12.6%

57.5%

Africa

2.0%

42.3%

6.6%

11.9%

47.6%

Asia Pacific

32.4%

7.1%

-29.2%

23.5%

69.2%

Europe

22.3%

4.7%

-13.1%

10.9%

64.1%

Latin America

2.4%

-18.4%

-37.8%

10.2%

42.9%

Middle East

12.9%

8.7%

-14.8%

13.0%

59.8%

North America

27.9%

17.1%

1.9%

5.9%

45.3%

¹% of industry CTKs in 2020   ²change in load factor vs 2019   ³Load factor level  

February Regional Performance

  • Asia-Pacific airlines saw demand for international air cargo rise 10.5% in February 2021 compared to the same month in 2019. As the main global manufacturing hub, the region has benefited from the pickup in economic activity. Demand in the majority of the region’s key international trade lanes has returned to pre-COVID-19 levels. International capacity remained constrained in the region, down 23.6% versus February 2019. The region’s airlines reported the highest international load factor at 77.4%.

  • North American carriers posted a 17.4% increase in international demand in February compared to February 2019. Economic activity in the US continues to recover, supported by the rising demand for e-commerce amid lockdown restrictions. Demand grew 39% on the Asia – North America route vs February 2019. The business environment for air cargo remains supportive; the $1,400 stimulus checks to US households will likely drive further growth in e-commerce and the level of inventories remains relatively low compared to sales volumes. Historically, this has meant that businesses had to quickly re-stock for which they also used air cargo. International capacity grew by 4.4% in February compared to 2019.

  • European carriers posted a 4.7% increase in demand in February compared to same month in 2019. Cargo demand was largely unaffected by the new lockdowns in Europe and the operating conditions remain supportive for air cargo. International capacity decreased by 12.5% in February.

  • Middle Eastern carriers posted an 8.8% rise in international cargo volumes in February versus February 2019. Of the region’s key international routes, Middle East-Asia and Middle East-North America have provided the most significant support, rising 27% and 17% respectively in February compared to February 2019. February capacity was down 14.9% compared to the same month in 2019.

  • Latin American carriers reported a decline of 20.5% in international cargo volumes in February compared to the 2019 period; this was a deterioration from January when demand was down the 17.5% on 2019 levels. Drivers of air cargo demand in Latin America remain relatively less supportive than in the other regions. International capacity decreased 43.0% compared to February 2019. Weakness within the Central and South America markets, which dropped around 40% compared to February 2019, continued to outweigh the full recovery seen on North – Central America routes, which saw levels increase 10% compared to February 2019 levels.

  • African airlines’ cargo demand in February increased a massive 44.2% compared to the same month in 2019the strongest of all regions. Robust expansion on the Asia-Africa trade lanes contributed to the strong growth. February international capacity grew by 9.8% compared to February 2019.

View the February 2021 Air Cargo Market Analysis (pdf)


If you have containers on board you will be asked for an indemnity or a deposit. Any standard marine insurance policy will include General Average losses so if the goods have been insured the importer should obtain a General Average guarantee from the insurers.

If no insurance is in place, then a cash deposit will be needed.

Whatever the position, your first action is to give immediate notice to your customer. The appointed average adjusters will need to be in possession of a completed guarantee and bond form, or a cash deposit before release of cargo so it is vital that your customer takes immediate action.

Your customer indemnifies you against General Average costs in clause 20(D) of the BIFA Standard Trading Conditions.

If you have further questions, please e-mail Robert Keen r.keen@bifa.org or Robert Windsor r.windsor@bifa.org


NCTS is a system of electronic declaration and processing that traders must use to submit Common Transit declarations.
https://www.gov.uk/guidance/using-the-new-computerised-transit-system-to-move-goods-across-the-eu-and-efta-countries

When making a declaration into NCTS for Transit movements it is a requirement to provide an accurate guarantee reference amount in NCTS declarations, in line with the Common Transit Convention (CTC).

The Guarantee Reference Amount is the amount of duties that are suspended on the transit movement. Traders must provide a guarantee against this amount.

They can either use an individual guarantee against each movement or they can use a Customs Comprehensive Guarantee (CCG) to guarantee multiple movements.

If they use a CCG then NCTS keeps track of the amount of guarantee that they have used and does not allow them to start new movements unless they have enough unused guarantee.

What is changing

When making a declaration into NCTS for Transit movements traders are required to provide an accurate guarantee reference amount.

The UK NCTS system was upgraded on 14 January, so that if traders do not enter a value, then the NCTS system will enter a “default” amount in their declaration. This amount is set by the Common Transit Convention at the sterling equivalent of 10,000 euros for each transit movement.

However, many businesses were unable to enter an accurate guarantee reference in their transit declarations. So HMRC temporarily reduced the default value of 10,000 euros to £1 so businesses could still make transit movements.

This was only a temporary measure until businesses and software developers could ensure that they were able to enter accurate Guarantee Reference Values into their declarations and HMRC will be resetting this value to the sterling equivalent of 10,000 euros on the 4 May.

Traders must now ensure that they are able to enter accurate Guarantee Reference Amounts in all of their transit declarations. If they do not enter a value, NCTS will automatically add a value of 10,000 euros in sterling, and will hold 10,000 euros of their guarantee against the movement. NCTS keeps track of the amount of the guarantee that traders have used and does not allow them to start new movements unless they have enough unused guarantee.

The changes being made in order to comply with CTC requirements have also been published on Gov.uk:
https://www.gov.uk/government/publications/the-new-computerised-transit-system-supporting-guidance/ncts-guarantees

What are the next steps for traders

Update their software

Traders must ensure that they can enter an accurate guarantee reference amount with each transit declaration. If they are able to enter a guarantee amount then they should already be doing so.

If traders use software to make their transit declarations into NCTS they must make sure that they have applied any updates from their software provider to allow them to make this entry.

If they cannot enter an accurate guarantee reference amount using their software, then they should contact their software provider immediately to upgrade their software.

If traders are starting movements in Great Britain, then they may want to make their declarations manually using the NCTS web portal until their software has been upgraded.

Enter a guarantee reference amount in every declaration.

Traders must ensure that they are entering an accurate guarantee reference amount with each transit declaration.

If their NCTS software does not enter this amount in their declaration automatically then they must make sure that they enter it manually.

In most cases, traders should be able to calculate an accurate guarantee reference amount, based on the value of the customs and other duties on the goods that are suspended whilst they are in transit. Traders must enter this value as the guarantee reference amount. If they are using software to make their transit declarations into NCTS a value below £1 will not be accepted.

In some exceptional cases, it may not be possible to calculate an accurate amount at all. In these cases only, traders may enter a value of 10,000 euros in sterling. They should enter this amount into NCTS themselves if they are able to.

Make sure their guarantee is large enough

Traders must continue to monitor their actual guarantee usage and ensure that they have sufficient guarantees in place to cover all of their open transit movements. This requirement applies regardless of whether or not they are able to enter an accurate amount on NCTS.

If traders reach the limit of their guarantee, then they will not be able to start any new movements, until either some of their open movements are closed and the guarantee released, or they arrange for their guarantee limit to be increased.

Increase their guarantee if they need to

If traders reach their limit of guarantee, then they will not be able to start any new movements, until either they apply for their guarantee limit to be raised, or until open movements are closed and the guarantee released.

To increase the amount of their guarantee, traders should follow guidance on how to apply for a Customs Comprehensive Guarantee including considering applying for a waiver using form CCG1F.
https://www.gov.uk/guidance/apply-for-a-customs-comprehensive-guarantee-to-cover-customsdebts


All actors in the global supply chain must be increasingly alert to a range of risks due to criminal activity targeting vaccine supply. From theft and illegal sale of authentic vaccines to counterfeiting, substitution with fake pharmaceuticals and contamination, the threats posed by criminals attempting to take advantage of this very high -value cargo, are widespread.

Mike Yarwood, TT Club’s MD Loss Prevention, warns the risks should not be under-estimated,

“It is probable that the market for counterfeit pharmaceuticals is worth US$400 billion a year and the World Health Organisation (WHO) estimates that up to 1 million people die annually from counterfeited drugs,” he points out.

“The current and future supply chain challenge to distribute the COVID-19 vaccines, in all their forms, from various countries of production, will mean that these figures are likely to grow. Multiple incidents have already been reported,” said Yarwood.

In the Netherlands, upon opening the trailer doors of a full truck load of pharmaceutical products, the consignee was faced with ten male migrants who had been hiding in the trailer. The cargo was contaminated and destroyed. While in the UK, three arrests were made following the theft from a truck of COVID-19 lateral flow testing kits worth over UK£100,000.

Recently two counterfeiting organisations focusing on COVID-19 vaccines were successfully broken up. In one case more than 3,000 saline filled vials were being sold as authentic vaccines and seized in Chinese police raids. Another report noted that 400 vials, the equivalent of around 2,400 doses, were discovered as containing fake vaccine in a warehouse in Gauteng, South Africa. While in both cases a quantity of counterfeit goods was seized and arrests made, it remains unclear what volume of fakes had already been manufactured and shipped.

Latin America is the latest region to report extensive serious malpractice. In Mexico a variety of Pfizer vaccines and others from three Chinese manufacturers (both genuine and counterfeit) have been offered for sale at up to US$1200 per dose. Many have been subsequently administered. And in Brazil, water-filled and empty syringes have been found on the black market.

A range of COVID-19 vaccines have been posted for sale on the dark net. The prices, in Bitcoin, ranging from US$250-300. There is no way to determine whether these vaccines are genuine, or even exist at all, placing potential users at huge risk.

As the WHO and altruistic charitable organisations such as the Gates Foundation, with its Global Alliance for Vaccines and Immunisation (GAVI), strive to ramp up vaccine supply to the poorest nations, there needs to be appropriate investment in the security of the subsequent supply chains, maintaining the integrity of the cargo. Indeed, TT urges equal attention by governmental agencies to the end to end vaccine supply chain to avert fatal undermining of the substantial R&D efforts globally.

Yarwood concludes, “Should the responsibilities of the pharmaceutical companies and organisations funding the supply, end at the point of production and sale, leaving local governments to manage security through the supply chain? A degree of uncertainty will prevail and security effectiveness differ from region to region. Operators who are called upon to transport, store and deliver such vital supplies therefore must be super vigilant in guarding against loss through theft and the infiltration of fakes into the supply chain.”

Source: TT Club


 

 

 
 
 
 
 
 

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