FIATA
International Federation of
Freight Forwarders Associations
The global voice of freight logistics

EU-CBER Review Commences, container storage news and more!

FIATA e-flash
12 August 2022

Maritime crisis, global supply chain status, labour shortages, the digital era and more at the FIATA World Congress soon!

You haven't met with your freight forwarding family for a while? Looking for the most up-to-date expertise from around the world on the logistics supply chain status? Can't decide whether South Korea is worth the visit? See this compiled information package to help you make your decision to visit the autumn logistics highlight you can't miss here.

If you have not yet registered to the event, we invite you to do so through the official website of the Congress on the dedicated registration page!

Travel to the 2022 FIATA World Congress (FWC) with Korean Air, the official carrier for the Congress! To benefit from 10% off on Economy tickets or 5% off on Business tickets, contact your Korean Air Regional Services Centre via phone. Check out the following webpage to find out which agency to contact in your region: www.koreanair.com/kr/en/footer/customer-support/service-center

If you experience any issues with registration or your accommodation selection, please contact the 2022 FWC host team at: fiata2022@kiffa.or.kr 

Alert for forwarders worldwide: the much awaited EU-CBER review has begun!

FIATA and related supply chain actors affected by competition concerns, and facing abuse of dominance by ocean carriers, made a joint submission to the European Commission to commence the Consortia Block Exemption Regulation (CBER) review in July. Subsequently, the European Commission has notified that the review commenced on 9 August 2022. The CBER is due to expire on 25 April 2024. As per the EU, this initiative aims to evaluate how it has functioned since it was last extended in 2020.

Affected industry associations and companies may give their feedback during an eight week window that ends on 3 October 2022. The Commission will then publish its findings at the end of the year. 

Helmed by the DG Competition, the assessment of whether the Regulation is still fit-for-purpose will take into account (i) the trend towards consolidation between carriers, (ii) their vertical integration and (iii) cross-membership between consortia since 2020.

FIATA calls upon its global membership to stay alert and participate actively. The effects of the alliances and consortia birthed in the EU have ripple effects globally. This is important given that carriers will continue to profit from high contract rates secured this year, despite spot rates seeming to come down. It has been reported that net income of shipping lines will likely reach $256bn this year. Coupled with beneficial tax regimes, this will continue to distort competitive conditions for forwarders as they integrate vertically. 

FIATA will organise sufficient consultations with its members and also with other affected associations to represent the forwarders best interests, and update members via the eFlash regularly. Stay tuned!

 Freight-Pay competition winners announced!

The Freight-Pay competition, which was launched on 18 May 2022, ended on July 31 2022. The scope of the competition was for National Associations to reach the highest number of registered users and we are happy to announce the winners of the contest:

1. EIFFA (Egypt) wins  2x flights + tickets for 2022 FIATA World Congress
2. PIFFA (Pakistan) wins 1x free pass for 2023 FIATA HQ Meeting + 4 hotel nights
3. UTIKAD (Turkey) wins a finest premium Swiss chocolate assortment

Congratulations to all winners and thanks to all National Associations which promoted the Freight-Pay platform to their members!

Tariff and Non-Tariff measures by country- now at your fingertips!

World Tariff Profiles, a recent publication by the WTO, the International Trade Centre and UNCTAD, provides comprehensive information on the tariffs and non-tariff measures (NTMs) imposed by over 170 countries and customs territories.

As the publication notes, NTMs are policy measures, other than ordinary customs tariffs, which can potentially have an economic effect on international trade in goods, changing quantities traded, or prices, or both. Therefore, it is an opportunity for forwarders to provide value-added services to help their importing and exporting customers with relevant compliance. 

The report examines product-specific non-tariff measures by Harmonized System-Chapters. Sectors most heavily regulated include, iron and steel, plastic, man-made fibres and manufactured articles. The report also furnishes statistics about anti-dumping investigations and their results in jurisdictions across the globe. Trends in measures affecting rules of origin and green and brown energy products in various countries have also been mapped. 

Forced to store and transport containers? Carriers must compensate you!

The US- Federal Maritime Commission has been undertaking a series of moves to increase accountability of dominant players in the supply chain.

It has announced that ocean carriers must stop forcing shippers and drayage truckers to store or transport their containers and pay them for it when they do as reported by Freightwaves. 

The untenable situation unravelled when too many containers flooded the United States, with carriers picking up only a fraction of what they brought in exacerbated congestions. 

Maintaining velocity of cargo movement through detention and demurrage charges should be equally applicable to all supply chain actors, including ocean carriers. FIATA encourages national associations to take note and bring positive developments to the attention of their regulators.

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