EDITION SUMMER 2018
ONLINE EDITION
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TRADE MAGAZINE FOR AND BY THE CARGO INDUSTRY
ChartAir
Young company with a historical Schiphol name
ISHARE: data sharing in logistical chain
BRUCargo: continually evolving
Swissport: updated concept for handling CARGO
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Contents
Logistics chain page 11
Thanks to participation in the CORE project, there is more cooperation and process optimalisation within the chain Royal FloraHolland
On 11 April 2018 the formal closure of the most extensive EU logistics research project ever, CORE - Consistently Optimised REsilient secure global supply chains - took place in Brussels. Seventy partners from government, business and education worked together for fours years on different CORE sub-projects. Royal FloraHolland – a cooperation of more than 4,000 plant and flower growers – took part and worked on the development of a so-called smart and secure trade lane between Kenya and the Netherlands
Cargo Slots page 20
Slot allocation: “Making difficulties” over the local rule Frans Vreede
For almost five months the Ministry of Infrastructure and Water Management (I&WM) has been tackling Schiphol Local Rule 1. This was prepared in December 2017 by KLM and approved by the advisory body for slot issues such as this, the Coordination Committee Netherlands (CCN).
Cargo Claims page 35
Industry Association page 42
IATA page 72
Digitalisation of the Cargo Claims process Polar Air Cargo
The need for the air cargo industry to aim for the absolute highest possible level of customer satisfaction in all aspects of service provision is increasing. Settling cargo claims is an important part of this. Until a year ago Dave would literally push kilometres of paper around managing claims for two airline companies. Now the process is completed entirely digitally.
Air Cargo Netherlands stepping towards the future ACN
On 1 February Maarten van As (47) joined Air Cargo Netherlands (ACN). He is succeeding Ben Radstaak as Managing Director. Radstaak, 63, will continue in the coming years as ACN’s Director, Innovation and Compliance. With this structure, the ACN Board wishes to guarantee the continuity of the organisation while, at the same time, modernising the industry association.
Femke Sickler wins the IATA FACE-UP air cargo career competition IATA (Femke Sickler)
On 15 March Femke Sickler (Dutch, 24) who recently graduated cum laude from Delft University of Technology collected the IATA FACE-UP air cargo career (face-up) prize. Her Bachelor’s thesis on KLM’s project, the European Green Fast Lane (EGFL), is innovative and transformative for the industry.
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In recent years, the air cargo supply chain has moved in an interesting and very welcome direction – becoming much more cooperative and collaborative. There are many reasons why this trend has emerged, and it is making an impact in many areas of our business.
Arthur van Dijk, Chairman of Dutch Association for Transport and Logistics “Sustainability: leading rather than following”
Further ChartAir 6 AMS Cargo Center 14 TLN 16 IPHandlers 18 Cargo Screeners 22 DACHSER Interlocking 25 Binnendijk-Bree Surveys 28 BRR Schadeverzekeringen 31 De Haan Advocaten 32 Brussels Airport Cargo 36 Air Cargo Belgium 39 Schiphol Group 40 iSHARE 44 Swissport Cargo 46 Air Promotions Agencies 48 Douanewetgeving 50 90 dagen termijn RTO 52 FENEX 55 Guus de Goeij 56 Fontys 59 Andringa Caljé Advocaten 62 Hogeschool Inholland 64 Wings! 67 TNO 68 Ron Blom 70
Foreword
Continuation of growth and success through collaboration
First and foremost, collaboration is essential to our continued growth and success. With the logistics business changing rapidly, the most effective way to serve customers’ evolving needs is to enhance communication between all participants in the supply chain. There are dedicated and creative people working in all segments of the business – manufacturers, forwarders and carriers – and we need all these perspectives to develop optimum solutions for new routes and products. The more we all listen and learn about what our partners need and can contribute, the better our service to customers will be. Nowhere is this dialog more important than in the growing pharmaceutical and life sciences industry. Transport of personalized or precision medicine, with products tailored to an individual patient’s characteristics and health factors demand flawless operational execution, so GDP, CEIV and other certifications and standards are becoming stricter. Another area of growth that demands innovation is e-commerce. We know we have the global capacity and experience to deliver shipments securely and safely. But we need to enhance our real-time tracking technologies and work with other transport modes to develop first mile and final mile solutions. Chain partners at Schiphol endorse the benefit of and the need for mutual cooperation. We wholeheartedly support initiatives being developed in this area from the Sector Council Airlines. Media such as Cargo Magazine provides an insight into the diversity enriching our industry and contributes to mutual cooperation. United Cargo collaborates more and more with other parties in de logistics chain. Joint ventures with All Nippon Airways and Lufthansa Cargo are focused on delivering benefits to the customers. Jacques Leijssenaar Vice President Sector Council Airlines ACN; Vice President Cargo Sales EMEIA United Airlines Cargo
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Brokerage
ChartAir: a young company with a historical Schiphol name Text Esther Kort-Boreas Photography Michel ter Wolbeek, Global GSA Group
Why does a renowned GSA want to have a little sister also engaging in air cargo but from a different perspective? With this question, Cargo Magazine spoke with Jasper de Bruijne, Director Global Airline Services with final responsibility for sister ChartAir and Martijn van Liempt, Sales Manager of ChartAir.
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995 marked the start of Global Airline Services in the Netherlands. An office in Belgium was also opened at the request of an important principal. As this proved successful, the GSA copied the set-up and operations and over the years opened offices throughout Europe. At a certain moment the company sought a connection with an Israeli partner whereby increasing its geo-
graphical cover many times over. And then came the economic crisis … Think-tank Everything happened in the air cargo world: airlines were declared bankrupt, fused or sought other ways of cooperating in order to survive. A few GSA’s could not keep their heads above water and went bankrupt. Global didn’t wait: a think-tank was
formed with colleagues from the various offices, complemented by external advisers knowledgeable and experienced in the air cargo industry. Various subjects were discussed by the think-tank: would the ‘traditional’ GSA even exist in a couple of years time? Should the focus be on other services? Should our service package be expanded? Jasper: “We realised that with several large “flag carriers” on board, and as each of these had experienced turbulent growth during our representation, we could call ourselves lucky. Finally the decision was taken: we would
add on another entity which would primarily be devoted to brokerage.” Taking a step back in time for our younger readers: ChartAir, property of air cargo veteran, Jos Busscher, was at the end of the 1980s an air cargo broker. Over time ChartAir switched from brokerage to forwarding with Philips being their biggest customer. In the middle of the 1990s, Jos sold his company to Panalpina who subsequently did nothing with it. Ismail Durmaz, founder of Global Airline Services, began his carrier at ChartAir under Jos. When Global decided four years ago to create a further entity, Ismail did not hesitate for a moment: he registered the name ChartAir that had been left unused and was ‘gathering dust’ and the company commenced its activities. “In hindsight the name ChartAir was perhaps not the best choice. Indeed: the name was inseparably associated with the forwarding business whilst we were setting out to be a neutral broker. We worked hard to put an end to this misunderstanding and here too, we would like to emphasise once again that we are not sitting on a forwarder’s seat but are operating as a broker. Chasing after the customers of our customers is just not done”, Jasper states decidedly. Jasper cites Blue Crown as an example of a successful in-house broker, in this case that of our national carrier, KLM. Even though Global has a
worldwide network, the GSA has few opportunities in the US. Via ChartAir this continent can also be offered to the customer. In 2016 Martijn van Liempt joined ChartAir and the Schiphol office now has a team of five. Since then the company has opened offices in Germany, Belgium, England and France and two further stations will be added within the next year. In the past two years, ChartAir has captured a place in the top 50 of IATA’s ranking. Broad service package At the commencement of ChartAir in 2014, projects were discussed that could sooner or later be taken on. “Brokerage in the broadest sense of the word” is how the core business was described, wherein the basis is
Jasper de Bruijne: “Chasing after the customers of our customers is just not done” entering into block space agreements (BSAs) with airlines and offering the best mix of agent loading. Martijn: “The air cargo market is changing and that is what ChartAir – and also ‘sister’ Global – sees. The expanded portfolio of the GSA is generating so many requests that the GSA is increasingly a little bit more of a broker”. Chartering ‘Every disadvantage has an advantage’ our nation’s best footballer once said. “That also applies to the name ChartAir”, says Jasper. “The younger generation not knowing the history of the original ChartAir think of chartering when they hear the name. So requests for charters started coming in to us. We recognised this as an opportunity to begin developing these activities. Recently we chartered a Saudi Airlines 747 for a Saudi businessman who had bought a complete kitchen in the Netherlands.” GSA becomes GSSA Since the global crisis it has become far more important to distinguish yourself from your competition. Airlines are expecting more from their cargo representatives for the same money. More services, reports
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A B C
D E
HHH
and market information as well as more dedicated personnel. Letting a GSA only do cargo sales is, of course, still possible. But, with the second ‘S’ standing for Services, far more than only making reservations is possible. However, as a GSA all the extra activities are done for free. “We too have had to invest more in personnel but immediately felt that a major part of the extra services would be better placed with a separate entity.” ‘One-offs’ Jasper recounts: “Immediately after the start of ChartAir we saw how many requests Global’s German sisterGSA was generating for our new inhouse broker. Working cross borders is usually contractually forbidden for a GSA. A broker may, however, stow a foreign shipment in another country. ChartAir handled these so-called ‘one-offs’ from Germany and straight away this became a good source of income and resulted in regular flows. The incentive scheme the major global agents have concluded with Global’s airlines is also applicable on a shipment booked via ChartAir.” Own prefix Another important project that has been recently realised is the so-called “Virtual Airline”. In cooperation with a small airline that had further nothing to do with cargo the company requested a cargo prefix from IATA. With this new prefix one may purchase space by other, primarily cargo companies. In this manner it is possible to code-share with other airlines under ChartAir’s flag. Pipeline ChartAir has even more projects in the pipeline: • Offering road transport, from Schiphol and Maastricht, both within the country’s borders as well as further into Europe. “The high volume
and often regular transport streams over the road from our GSA company, gives us enormous purchasing power with trucking companies. Other parties can also profit from this and together we can optimise truck occupancy.” •O ffering import services, both national and European, to smaller agents who themselves cannot handle import. Notably stand-alone forwarders often find it problematic having their import shipments pass through other countries rather than only to the airport where they are based. This service is already a success in Germany.
Martijn van Liempt: “The air cargo market is changing and that is what ChartAir – and also ‘sister’ Global – sees” added value that both airlines and agents seek. ChartAir sits down at the table with both parties. Can one party’s requirements be met by the services offered by the other party? “We call it our customer touch”, says Jasper. “We remain in dialogue with airline and forwarder, because for us 1 plus 1 is always 3.”
•O ffering rail transport from Europe to Asia as an alternative to air transport. Certainly in times when capacity falls short, such as the last quarter of 2017, the train can offer a very good alternative. More and more forwarders are beginning to specialise in rail transport. ChartAir’s strength The broad European network combined with Global’s contacts offers the
ChartAir E: martijn@chartaircargo.com T: +31 (0)20-760 3006
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“Thanks to participation in the CORE project, more cooperation and process optimalisation” On 11 April 2018 the formal closure of the most extensive EU logistics research project ever, CORE - Consistently Optimised REsilient secure global supply chains - took place in Brussels. Seventy partners from government, business and education worked together for fours years on different CORE sub-projects. Royal FloraHolland – a cooperation of more than 4,000 plant and flower growers – took part and worked on the development of a so-called smart and secure trade lane between Kenya and the Netherlands.
R
oel Huiden, Senior Supply Chain Consultant at Royal FloraHolland, was involved with CORE from the beginning and looks back on a successful participation. “Not only did we optimise a number of logistics processes but we also accrued know-how and experience about international logistics and have built lasting relationships with parties such as the Dutch Customs organisation and the NVWA (Netherlands Food and Consumer Product Safety Authority). Further it became clear that an effective trade lane could bring us enormous savings. Digitising the phytosanitary certificates that are required for flower imports are an example of this. Throughout the whole chain, this part can save several hundreds of thousands each year.” Internationalisation Royal FloraHolland is becoming more international and therefore participated in the CORE project. Through the years the members of the cooperation are no longer from the Netherlands only, but also active in countries such as Israel, Kenya and Ethiopia. “CORE appealed to us because it was a practical demo-project, aimed at tangible improvements in all processes in the logistics chain”, Huiden says. “Moreover it was wide-ranging with input from many different parties, including various knowledge institutions and government authorities. Contacts within these organisations are becoming ever more important
for us as our international activities grow.” Royal FloraHolland chose to focus on the transport flow between Nairobi, Kenya and Amsterdam Schiphol. “This is one of the major flows with nine million boxes of flowers annually coming to the Netherlands on 2,000 flights. Over 100 growers in Kenya and air carriers are involved in this process. The aim is to move the flowers from the Kenyan greenhouse to the European florist in four to five days.”
‘CORE appealed to us because it was a practical demo-project, aimed at tangible improvements in all processes in the logistics chain’ Objectives Huiden explains that Royal FloraHolland had three objectives when they began with the CORE project. “Our first objective was to create more transparency in the whole chain. In other words: we wanted visibility where the flowers were at any particular moment to be able to adjust our processes accordingly. In the second place digitalisation of processes was an important aim. The phytosanitary
certificates, for example, remain a fully manual process with paper documents being carried by aircraft crew in a brief case. This is not only labor intensive but also prone to errors. When a document is missing or incomplete the paper stream can disrupt the logistical process. The NVWA, also a CORE project partner, has worked this through technically and is currently testing certificates for roses from Kenya. The third objective was to make information available to other parties, such as Customs or the NVWA. This would make it possible to speed up import and export procedures, as these parties would have visibility about the flow of products at any moment which enables risk analysis at an early stage.” Dashboard To increase transparency in the chain, Royal FloraHolland worked together with Descartes Systems Group, supplier of logistic technology and known for its Global Logistics Network that offers a standard for multimodal exchange of electronic data and documents between companies. Huiden: “Descartes is one of the CORE project’s technology parties. We came together at the recommendation of CORE partners TNO (The Netherlands Organisation for Applied Scientific Research) and the TU Delft (Delft University of Technology). Descartes had previously developed a dashboard for smart trade lanes in relation to the EU’s Cassandra project that was a forerunner of CORE. This solution
Logistics Chain
Roel Huiden, Royal FloraHolland
Text and photography Royal FloraHolland
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Roel Huiden
tied in well with what we needed. Initially, we connected the Descartes dashboard to the applications of the Kenyan grower. Using the Customs dashboard the customs authorities have access to the data pipeline related to ‘optional multiple filing’. This allows secured insight in certain documents as part of a risk analysis upon request. Whereas previously only the number of boxes of flowers where visible, currently Customs can access details such as source and destination of specific cargo, as well as specific documents such as certificates. The detailed information allows Customs to make far better risk analyses. We have now implemented the dashboard into our strategic cooperation with KLM Cargo and Schiphol Cargo in the ‘Holland Flower Alliance’. Consequently, other parties are also linked, including Cargonaut, which collects information about all goods coming to and leaving from Schiphol.” Clearance at landing Thanks to the dashboard, Royal FloraHolland has been able to improve its personnel capacity, as the cooperation is informed in a very early stage about flight delays or planned import inspections. Huiden: “Customs regularly carries out inspections, previously we only knew about a scan when it took place. Via Cargonaut this is
now indicated in advance within the dashboard enabling us to adjust our staffing plan accordingly. A scan might result in late arrival of the products at the auction facilities. Having this knowledge in advance we can avoid bringing in people unnecessarily.” At a later stage of the project also a ‘clearance at landing’ process was set up, making it possible to process most of the import formalities during the flight and thus getting the flowers to the auction premises faster. After the formal project ending, Huiden looks back with a positive feeling. “We have gained a great amount of practical experience, increased our network and implemented sustainable process improvements with potential for major savings. We are continuing to further optimise our operations with our motto in mind: Flowering the World Together, Planting Seeds of Opportunity for our Members.”
‘A scan might result in late arrival of the products at the auction facilities. Having this knowledge in advance we can avoid bringing in people unnecessarily’
Royal FloraHolland is the major international market place for the horticultural sector with its 100,000 transactions daily and approximately 2,500 customers. Royal FloraHolland has an annual turnover of 4.7 billion Euros. The cooperation has 4,100 members of which 602 are non-Dutch. In 2017 a total of 11.7 billion flowers and plants were sold. At present there are 35 auction clocks spread across four locations (Aalsmeer, Naaldwijk, Rijnsburg en Eelde).
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Distribution Center
AMS Cargo Center: new distribution center at Schiphol “Achieving a building such as this in barely 17 months is really something special. It is only feasible if you maintain an incredibly tight planning and have the absolute cooperation of all parties involved. Everyone involved certainly deserves a compliment,” Joffrey Lagaunne of Proptimize says. Together with Michel Mulders of Built to Build, he describes how the brand new AMS Cargo Center at Schiphol Logistics Park came about.
Joffrey Lagaunne (left) and Michel Mulders
Text Anita Schregardus Photography Michel ter Wolbeek
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I
t’s mid-May and lorries and builders are coming and going at the AMS Cargo Center. It is the final stage as on 1 June the first three of the in total five units will be delivered with the final two following at the end of July. A high quality multi-tenant distribution center of around 34,000 square metres is on the 5.9 hectare plot. It is a development from Distri Development, a partnership between Proptimize and Built to Build. Since the start of this partnership in 2014, Michel Mulders and Joffrey Lagaunne have developed various projects. “In Distri Development we have pooled our expertise and skills in the area of logistical developments”, explains Michel. “I bring my technical and building
experience and Joffrey looks after the commercial side.” Ideal size Back in time. It is March 2017 when Distri Development struck up a dialogue with Independent World Services (IWS) about developing a logistical building of approximately 9,000 square metres. A Letter of Intent in May was followed by a signed rental lease agreement early in July and construction commenced in October. Joffrey explains that together with the first tenant they worked the plan through further. “We have chosen the ideal sizes and proportions for a distribution center and have gone for a maximum stacking height of 12.2 metres. In the first instance, many
parties may not use this height, but we are anticipating that, at a later stage, it will be very important to be able to optimally use every square metre.” Flexibility the priority The complex of about 34,000 square metres comprises five individual units each between 4,000 to 6,000 sqm. “However, it is so flexible that we can offer the remaining approximately 17,000 sqm as a whole,” explains Joffrey. Flexibility is a priority in a number of areas within the AMS Cargo Center. In order to be suitably responsive to a need for warehouse metres, the internal walls can easily be slid allowing ideal dimensions to be created. Extra space can easily be
created for office space on the mezzanine floor. Experience has shown that the need for office space is often limited but if, in the future, there is a need for more space then this can easily be achieved.
Michel. “The business park is right next to the A4, has its own entry and exit ramp on the N201 and is close to the A9 and A5.”
possibilities that results in people parking along public roads. That leads to messy and even dangerous situations.”
regarding Schiphol’s growth, the airport will remain a hugely important player”, Joffrey foresees. “Add to this that land is becoming scarcer and you can understand that it will be increasingly difficult for companies to locate to the area. The interest from potential tenants for the AMS Cargo Center therefore comes as no surprise to us”.
Significant growth in air cargo Joffrey and Michel expect the volume of air cargo to keep on rising in coming years. “We see significant growth in international e-commerce: consumers are increasingly shopping online and expect ever faster deliveries. Despite the increasing criticism Photography: Tim Stoffelen
BREEAM ‘Very Good’ The flexible layout is, according to Michel and Joffrey, a clear advantage of the new distribution center. They also chose to stand out with respect to sustainability. The building has
N201. “This is, of course, a bonus for our tenants”, says Joffrey. “It was one of the reasons we decided to develop this particular plot of land. A section of the ground may not be built upon because it is under the approach path for Schiphol. We have therefore used this space for an additional 184 parking spots. This has resulted in a total of no less than 229 parking places: where can you find that? At other similar areas around Schiphol there is a clear shortage of parking
“Consumers are increasingly shopping online and expect ever faster deliveries” been realised in compliance with the BREEAM standard and will be awarded a “Very Good” certificate upon delivery. Michel: “This BREEAM rating is very important for major companies and smaller companies will most likely also require it in the future. We have looked very carefully at the measures that are both sensible and feasible and, for instance, have invested in heat pumps, led lighting, high efficiency boilers and good insulation. These are all things that tenants will immediately see reflected in lower energy consumption.” Over 200 parking spots The new AMS Cargo Center is at a location directly visible from the
Airport around the corner With leasing to IWS and recently to ViaEurope, the AMS Cargo Center has its first two parties within its walls. The Distri Development gentlemen have high hopes that the remaining +17,000 sqm will be rented out very soon. “Schiphol Logistics Park is a very interesting business park”, Joffrey feels. “Only one kilometre from Schiphol, it is literally just around the corner of the airport. Many logistics companies are still in buildings from Schiphol itself: many are aging complexes for which a hefty rental must be paid. Some enterprises can function really well at a location that is a little further from the first line. If so, Schiphol Logistics Park is an attractive choice as a second line location. “Accessibility is also optimal”, adds
Distri Development B.V. Vughterweg 47 5211 CK ‘s-Hertogenbosch Tel: +31 (0)73-82 000 73 www.amscargocenter.nl
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Industry Association
Sustainability: leading rather than following TLN makes its mark on sustainability in the logistics sector Much has changed since Cargo Magazine last spoke with Arthur van Dijk, Chairman of Transport en Logistiek Nederland (Dutch Association for Transport and Logistics). In the past four years the organisation has undergone a transition: a reorganisation has modernised TLN, young talent has been engaged and TLN is working smarter. What remains unchanged, however, is TLN’s ambition: to be a reliable source for, and in, the logistics sector.
Text Esther Kort-Boreas Photography Nieya van Nie
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Cubicles gone
“M
uch has indeed changed recently,” Arthur begins his story. “An internal refurbishment allowed us to do away with the cubicles in the office, both literally and figuratively. Colleagues now work in one large space and this has significantly improved internal communication and cooperation. We have agreed our Strategic Plan for the coming years. We indicate that TLN is for the benefit of the whole sector rather than for individual members. Please note: we continue to lobby for our members, but collectively from a broader perspective for
all our members. We are doing this in national politics but also in Brussels where we are well represented.” Sustainability By impacting on the sustainability of the sector, TLN shows the level of its ambition. The organisation is, with regard to this subject, not a follower but a leader. TLN assists entrepreneurs, large or small, with respect to sustainability, electric trucks being a good example of this. The kilometre levy suggested by the government was not welcomed with open arms. On the contrary: there was vigorous opposition to it. However by “rethinking” about opportunities rather
than threats, an advantage was soon discovered: revenue from the levy would be flowing back to the sector. The government has pledged that revenue raised would be used for improving the sustainability of road transport. Sustainability thus became a business case. Sharing data Thanks to new technology chains are being optimised. Where previously a logistical chain was seen as the sum of all the separate links coupled together, the links now are completely locked together: it is not only about knowing your customer, but also the customer of your customer. All links are intertwined meaning data sharing is necessary. By sharing available data, the intermediate buffers independently kept by various links will become superfluous. This can generate considerable savings. It is important to evaluate the added value each link in the chain gener-
you can do with it and how you can add value for your customer”. Support from members According to Arthur TLN members support the development of digitalisation. For TLN, it is and remains important to link new developments with the business of its members. “As an example, I should mention the Cargocard we have developed”, Arthur says. “Where previously a driver had to report separately to each and every business site, he now has access to all business sites using just one Cargocard. This is an efficient application of digitalisation for our members.”
Arthur van Dijk
ates. Sharing information via a central platform optimises cooperation. “A new network society develops”, says Arthur. “Look at Uber en Airbnb. Providers and users come together on
these ever-growing digital platforms. This is also happening in logistics. Data is increasingly becoming available and it is being used for a whole range of services. It is important to realise how you apply this data, what
Strong together TLN works closely with other organisations concerned with transport and mobility. Arthur: “Together with the RAI, ANWB and NS we are looking at ways to better utilise existing infrastructure rather than always expanding further. We also have good cooperation with evofenedex and ACN. Recently, we all collaborated on the slots’ discussion. It became apparent in this discussion that there is still a great deal of ignorance of the importance of cargo for the Netherlands economy. Generally we can say that we intervened too late, including the government that has clearly indicated it attaches great value to logistics. We as TLN have a clear message for the new CEO of Schiphol: “Be aware that it is not only about our national airport but the Netherlands as a whole and thus also the members of Transport and Logistics Netherlands”.
TLN celebrates its 5th anniversary
Transport en Logistiek Nederland
as a merged organisation in June
Tel: 088-4567 111
by organising drinks to officially
info@tln.nl
open its refurbished premises.
www.tln.nl
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Perishable handling Mark Loos
IPHandlers building new Perishable Center Text Esther Kort-Boreas, Anita Schregardus Photography Michel ter Wolbeek, IPHandlers
In January 2019 IPHandlers will open a brand new center. Across from its current property on the Noordpolderweg in Aalsmeer, the newly established associated company APC Handling b.v. is building the Amsterdam Perishable Center. “With this capacity expansion of more than 50% we will be able to provide our customers with even better service,” says Mark Loos, General Director of Independent Perishable Handlers, i.e. IPHandlers.
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he new Perishable Center will comprise ten docks and a surface area of 6,000 m2. This will bring IPHandlers’ total warehouse area to 16,000 m2. “The APC will be a distribution station where the logistical flow of perishables will be more efficient allowing us to serve our customers even better. We will be able to set more different temperature zones. This will mean that our customers, as required, will be able to store their products – such as vegetables, fruit and flowers – for longer and under optimal conditions.”
Unique IPHandlers is constantly actively innovating and renewing. The company has already undertaken a major refurbishment this year. The entire roof has been insulated with cooling panels so
Flower handling process • Flowers are cut at the nursery and packed in boxes • The boxes of flowers are taken to the cargo agent and provided with an airwaybill • The boxes are taken to the airline and built onto aircraft pallets • The aircraft pallets are taken to Schiphol or other European airports • The aircraft pallets are taken by truck to IPHandlers • At IPHandlers the entire aircraft pallet goes through the vacuum cooler • They are then unloaded, sorted and stacked by airwaybill number • They are given a sticker and placed in the cool cell
are the distinctive characteristics of our company. The fact that we are dedicated to perishables underlines our commitment to all fresh produce”, Mark says. When you are aware that everything in air cargo is in a hurry then the speed required for perishable handling is the quadrant. That this has everything to do with the shelf life of the product is an understatement. What is in the warehouse today will be completely cleared within one or two days. There is good cooperation with the inspection authorities such as the Quality Control Bureau and the Netherlands Food and Consumer Safety Authority. Shipment inspections take place in a specially designed area in the warehouse. In this way IPHandlers again offers possibilities distinguishing them from their competitors.
• After the customs documents have been completed, they are transported to the customer
that the cold chain inside the building is completely unbroken. Flowers that come in are immediately cooled in one of four vacuum tanks in order to extend their shelf life. “We have put in high performance cooling technology. Two aircraft pallets can go into each vacuum tank. Within half an hour eight aircraft pallets are cooled and this continues 24/7. This is unique!” Mark proudly says. In his genes The General Director says that IPHandlers’ roots lie with father Loos who sold flowers at the auction. As a child, Mark went with his father to help. “As a young kid I was always busy with flowers, even abroad. It is, I think, in our genes.” Mark began as a clearing agent at Schiphol. After a few years he became warehouse manager and not long thereafter became part of the management team of Van de Put Fresh Cargo Handling. In 2013 Mark decided to start his own business: 30 June
marked the beginning of IPHandlers, a date that is proudly displayed on the very first airwaybill that has been framed and hangs on the wall. Market Flowers for the foreign market is the major part of the IPHandlers’ trade. The company is focussing on the growth markets of vegetables & fruit and plants & cuttings. “The market is changing”, Mark says. “Increasingly more is being purchased direct from the grower and no longer via the auction. Also there is direct trade with the retail market which involves direct deliveries to distribution centers and retailers.” The arrival of the Amsterdam Perishable Center is a direct response to this.
Innovation Besides expansion, IPHandlers is constantly active with innovations. Recently a new software system has been implemented allowing a direct link between forwarding and customs. Mark: “The new system connects our bookkeeping with our Warehouse Management System and the Customs’ declaration system. Apart from this working faster, a high priority for us is to control costs. We work with Cargo Claims to handle claims and this will in the future most likely be coupled with our system. You need to have a fresh view in order to innovate. We want to give young committed people a chance to develop in this industry. As they have grown up in a “digitalised” world, they have valuable input when it comes to innovation.”
USP What sets IPHandlers apart from its competitors? “Experienced employees, open 24/7, always reachable and available for our customers: these
IPHandlers has a terrain of 18,000 m2 of which 10,000 m2 is warehouse space. In
IPHandlers
2013 IPHandlers dealt with 40 million kgs, in 2017 this was 75 million kgs and the
Noordpolderweg 20
expectation is that the counter at the end of this year will be at 90 million kgs.
1432 JH Aalsmeer
IPHandlers has over 100 permanent employees and 30 flexworkers of 12 different nationalities.
info@iphandlers.nl www.iphandlers.nl
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Cargo slots Text Frans Vreede
Slot allocation: ‘Making difficulties’ over the local rule For almost five months the Ministry of Infrastructure and Water Management (I&WM) has been tackling Schiphol Local Rule 1. This was prepared in December 2017 by KLM and approved by the advisory body for slot issues such as this, the Coordination Committee Netherlands (CCN).
A
local rule is an instrument in which procedures are set down for the allocation of ad-hoc slots by the Slot Coordinator. In brief, Local Rule 1 foresees the allocation of ad hoc flights between the passenger and cargo segments along the line of a certain formula and method. Previously ACN had proposed a Local Rule on behalf of the cargo sector wherein the full freighter operators would receive a certain prioritisation in the allocation of ad hoc slots. My previous contribution to this magazine was about this. The proposal closely followed the situation at London Heathrow where a comparable local rule is applicable. Nonetheless the ACN local rule did not make it through the CCN.
The KLM version is now with the Minister of I&WM for approval. For almost five months already. According to the Minister, the delay has occurred due to “differences in interpretation” that demand further study. What differences these are, has not been said. It would seem that someone is just “being difficult” and playing a stalling game.
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Needless to say this is incomprehensible to the air cargo world. The Ministry must take the rap for this: it was indeed the Minister who asked for a local rule in October 2017 and gave just four weeks for the provision of a joint proposal? Why then now, five months after the provision of the approved joint local rule, has the same Ministry still not endorsed what it had requested? Internationally the reaction is one of incomprehension at the developments at Schiphol for air cargo. Some cargo carriers have had enough and
handling agents have actually moved their Schiphol hub abroad or are in the process of doing so. However, it appears that it may not be the Ministry that is the obstructionist for the approval of Local Rule 1. Neither is it Schiphol because the airport sees, with the departure of the full freighter segment, an important source of employment drying up and want to prevent that. It must be seen in connection with another development that is currently playing at I&WM. This concerns the proposed change to the legislative regulation for the ruling on the capacity of coordinated airports like Schiphol: the Slot Allocation Decree.
‘Why then now, five months after the provision of the approved joint local rule, has the same Ministry still not endorsed what it had requested?’ This capacity declaration forms the basis for the allocation of slots by the slot coordinator. In the system as it now stands, it is “the polder” that together decides the capacity declaration: Schiphol, Air Traffic Control the Netherlands, and the airline companies. From them, the Minister euphemistically has decided that, due to the growing scarcity at Schiphol, in the last years they have been incapable of deciding upon a capacity declaration. Under the new system Schiphol itself will decide the capacity declaration for the airport. But the Minister will also have a say: she shall expressly be given the possibility of intervening in (proposed) capacity declarations. This happens by a “binding directive”. As an example, if the Minister suggests a situation where a ceiling is set for 32,000 night slots and the capacity declaration shows that there are 35,000 slots that can be given away. In such a case the Minister can give a binding directive delegating Schiphol to reduce the number of
slots to be given. In the new allocation decree the word “cargo” does not appear nor in the explanatory notes. That is curious because it was the developments in air cargo that led the Minister to review the Slot Allocation Decree. Surely, during the slot problems last autumn, it became clear that I&WM were not happy with the situation around slot allocation for cargo aircraft. On the contrary, the Ministry was fully aware of the importance of the full freighter operators for Schiphol and The Netherlands Ltd. They were looking for ways to preserve this segment at Schiphol. Two paths were followed: the first being that of the local rule. Now that the ACN proposal had been shot down by the CCN, the Ministry asked itself if it should perhaps itself come up with a local rule. After advice from the State Advocate the former State Secretary concluded that she was not authorised to do so. Schiphol could and therefore the State Secretary gave Schiphol the task of compiling this. Ultimately it was KLM who came up with the new proposal. Not only for the cargo sector, but also – even primarily – for the passenger segment. And that proposal has already been months at the Ministry awaiting approval. The second path concerned intervention in the capacity declaration. Could the Minister do that on the basis of the current Slot Allocation Decree? No, deemed the Minister. The determination of the capacity declaration was legally restricted to the polder and the Minister did not have the authority to intervene. It is not appropriate here to go into whether that is correct or not: but it clarifies why the Minister is now proceeding to change the Slot Allocation Decree that explicitly would provide the Minister with this authority. And so the circle comes round: with this new Decree the Minister could help the full freighter operators with a certain degree of slot prioritisation. With the proposed Local Rule that would be possible, but what happened was what we mentioned earlier: being difficult.
glow of light at the end of the tunnel for the full freighter carriers. But the question arises if it is not already too late for the cargo branch that is already busy leaving Schiphol. A suggestion therefore for consideration: The interpretation differences over which the KLM local rule stumbled appear in particular to be in relation to the passenger segment. Not the cargo segment, because there the local rule seemed fairly clear cut. This being the case one can ask oneself: could Local Rule 1 not be partially approved? The limited slot prioritisation for the full freighter sector could then take immediate effect while the approval for the passenger segment could follow once the interpretation differences have been resolved. This partial approval could be temporary by linking it to the coming into force of the new Slot Allocation Decree, and the moment in time the capacity declaration would then be set with a reasonable assurance for the cargo sector’s slots. In this way the full freighter segment could be retained at Schiphol along with its employment opportunities, and the signal would be given that shippers worldwide have been waiting months to hear: Schiphol is and will remain a reliable cargo hub of the highest order.
Editorial note: In mid-June the Minister rejected the submission for a ‘local rule’. A new proposal will be prepared to work through and dispel the Minister’s objections.
Frans Vreede Legal Consultant Aviation & Logistics Law frans@vreede.aero
With the change to the Slot Allocation Decree there would seem to be a
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Security
Five years Cargo Screeners: From ‘new kid’ to mature player Pieter van Dijk
The first time Cargo Magazine spoke with Pieter van Dijk of Cargo Screeners, the company had existed only 1.5 years. On 1 May this year, Cargo Screeners celebrated its first lustrum. Together with Pieter we look back at the developments the company has made in the past few years and look ahead to the great things that are on the horizon.
Text Esther Kort-Boreas Photography Michel ter Wolbeek, Cargo Screeners
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hen Cargo Screeners started in 2013, the company was accommodated with BBV Logistics Support at Schiphol Zuidoost where immediately the first x-ray machine was placed. More than three years ago an x-ray machine was placed at handling agent Swissport in order for them to be able to improve efficiency for customers. After a recent thorough evaluation it appeared that the machine had not been fully utilised. At the same moment BBV, having moved to the Fokkerpark, requested an x-ray machine due to an increasing number of customers wanting x-ray screening. In April of this year the handling agent’s machine was moved from Schiphol Zuidoost to the Fokkerpark. Pieter: “You could say that we have come full circle: five years ago our first machine was at BBV and anno 2018 we are once again working closely together. We will also probably deploy our commercial services out of the Fokkerpark later this year with regard to x-ray and possibly also our own EDD service (Explosive Detection Dogs)
that we are now offering under the name Cargo Screeners Dog Security. We are training our dog handlers, 10 in total, to be x-ray operators. In this way they are multi-functional and their knowledge and skills can be used as efficiently as possible.” Making choices “Business is about making choices and adjusting your business plan whenever the situation so requires”, Pieter says. “Cargo Screeners Training and Consultancy had been a part of
Cargo Screeners’ service package from the start. This branch has grown explosively. Where we previously had the illusion that we could do it ‘as well’, it quickly became clear that this area of expertise needed far more attention. At that moment, we had to make a choice: should we opt for 80% of the whole package including Cargo Screeners Training and Consultancy or should we focus 100% on x-ray and EDD? We didn’t have to think about it for long and we chose for the latter.”
Cargo Screeners celebrated its 5th anniversary on 1 May 2018. Customers were surprised with birthday treats: cupcakes and a birthday box. No coincidence? “At the moment we were dismantling the Training and Consultancy branch, Trac came into play. Now called Workrate Training & Consultancy, Trac’s core business is training and providing advice in the very broadest sense of the word. We sat down together and quickly concluded that our Training and Consultancy branch was better suited to Workrate. Since Workrate took these services over from us, we have worked well together. We pass the ball back and forth to each other. Cargo Screeners still believes in working together, one of the base foundations of the business since its establishment in 2013”, says Pieter.
Screeners are both serving the same customer, we look at where the focus of service lies. When the focus is on Training and Consultancy, Workrate supplies the account manager but when it is about screening, the customer is designated an account manager from Cargo Screeners. Spreading wings Cargo Screeners is spreading its wings: the company’s working area is both at Schiphol and elsewhere. Cargo Screeners supplies dogs on a daily basis to a large handling agent at Eindhoven Airport and at Maastricht Airport, Cargo Screeners works together with MLS,
Maastricht Logistics Services. The ultimate objective is to be able to handle the airports at Brussels and Liège from the Limburg region. Points on the horizon “These are the points on the horizon upon which we will be focusing in the next phase. We continue to develop and take on challenges. We do this with a highly motivated, professional and enthusiastic team. What will never change are our company principles: what we do, we do with passion, we appreciate our customers and cooperation makes us stronger!”, concludes Pieter.
He continues: “Via Workrate we have customers from outside Schiphol. We are busy with a number of great projects for customers who like the fact that their suppliers work closely together. When Workrate and Cargo
Cargo Screeners & Cargo Screeners Dog Security Shannonweg 27 1118 LA Schiphol T: 020-405 5230 E: info@cargoscreeners.nl
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DACHSER Interlocking The unique cooperation between the air, sea and land transport divisions of logistics services provider DACHSER has become a true sport: a logistics triathlon. Three different disciplines performed by one organisation, under one roof and with one contact point. Ensuring absolute transparency at all levels.
strong focus on corporate management, always puts the customer first. The business model of DACHSER includes transport logistics, warehousing and customer-specific services in two business divisions: DACHSER Road Logistics (EL) and DACHSER Air & Sea Logistics (ASL). Until 2013 the emphasis in the Netherlands had been primarily on road transport. It was decided then to also establish a DACHSER Air & Sea Logistics B.V. in the Netherlands in order to be able to further develop air and sea freight.
Logistics
On land, at sea and in the air:
Text Dachser
Road transport Road transport in the Netherlands is organised from Zevenaar and Waddinxveen and falls under the responsibility of Aat van der Meer, Managing Director DACHSER Benelux, who joined the DACHSER family in 2006. “Whether it is distribution logistics, industry-specific logistics, procurement logistics or customised solutions such as contract logistics: the homogenous network of 396 DACHSER branch offices, various subsidiaries and reliable local partners offer comprehensive service with fast and flexible connections throughout Europe, North Africa and parts of the Middle East”, says Van der Meer.
Aat van der Meer (left) and Wilco Versteegh
Development and growth ver 40 years ago three employees started at the first Dutch branch of DACHSER that had been established in 1930 in South Germany. Anno 2018 the logistics services provider is represen-
O
ted in the Netherlands in Waddinxveen (Logistics Center Rotterdam), Zevenaar (Logistics Center Zevenaar), Schiphol and Maastricht with a total of about 440 employees. DACHSER characterises itself as an innovative family-owned company that, with its
Air and sea freight Under the leadership of Wilco Versteegh who was appointed Managing Director (ASL) in 2013 to further develop air and sea freight activities in the Benelux, the DACHSER Air & Sea Logistics division stands for global, integrated and efficient supply chain solutions. In the Netherlands international air and sea freight forwarding is organised by Maastricht, Rotterdam and Schiphol. “ASL carries piece goods and consolidated freight worldwide. Our locations cover our customers’ international distribution and procurement markets”, says Versteegh. “Maastricht is an important
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WORLDWIDE IATA INNOVATION AWARDED PLATFORM
TRANSPARENCY
COMMUNICATION
CONTRIBUTING TO AN INCREASED COMPETITIVENESS OF THE AIR CARGO PRODUCT
• Worldwide multi stakeholder platform • Standarized process within an industry platform • Claims management for Airlines, Forwarders and Shippers
+31 (0)6 4321 6457
support@cargohub.nl
www.cargohub.nl
Beechavenue 54 – 80 • 1119 PW Schiphol-Rijk • The Netherlands
region as we can service Luxemburg and part of Belgium from here and the positive developments at and around Maastricht airport certainly do play a role. The office space at Schiphol has recently been expanded and the sea freight location in Rotterdam will move shortly to a newly acquired property across from our current office. All these expansions will contribute to further growth in the future.” High departure frequencies and strict quality criteria for the selection of airlines within the “Preferred Carrier Program” ensure reliable quality in the air cargo division of DACHSER. There is close cooperation with Lufthansa Cargo via the Lufthansa Cargo Global Partnership Program: an important platform for the sustained growth of the airline and its twelve major customers. “By joining forces we deliver high quality to our customers, exactly what DACHSER stands for.”
Interlocking In recent years DACHSER has been increasingly focusing on the internal alliance of DACHSER Road Logistics with DACHSER Air & Sea Logistics. “We are seeing more and more demand for all-in-one solutions: one partner for air, sea and land transport”, explains Van der Meer. “By robustly combining the different divisions, we
can offer our customers world-wide logistical solutions, we call this ‘DACHSER Interlocking’. Using Interlocking it does not matter if we are dealing with a container to China or a pallet to Madrid. We create solid foundations for mutual win-win situations and long-term partnerships.”
DACHSER Netherlands B.V. DACHSER Netherlands Air & Sea Logistics B.V. Handelsweg 2 2742 RD Waddinxveen T: 0180 635 311 www.dachser.nl
JURIDISCH SPECIALIST OP HET GEBIED VAN HANDEL, TRANSPORT EN LOGISTIEK Beechavenue 178 1119 PS Schiphol-Rijk 020 21 94 639 schiphol@dehaanlaw.nl www.dehaanlaw.nl
Air
Quod erat demonstrandum Text Frans Vonk Photography Michel ter Wolbeek
The function and importance of the assessor’s report After a period of economic downturn the world economy has picked up again. Global trade is increasing and transport flows have recovered and are intensifying.
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e are seeing a development in the flow of goods that, due partly to government sanctions on products, other markets are being found. Other flows are commencing due to climatic developments that have resulted in products no longer, or insufficiently, being produced locally. In the transporters’ camp it can be
seen that, where maintenance had become bogged down in a morass, things have picked up again and new material is even being purchased. Parallel to these developments we can see modernisations being carried out in both trade and transport. Rather grandly, we call these innovations so that they carry more weight.
With changing patterns of consumption, but also due to climatic developments, products are being modified as well as completely new products being developed. Robot technology is developing dynamically. This is not only a product being developed but one that subsequently will have its own job function and will increasingly play a role in transport and logistics. In transport, we see that businesses are procuring advanced means of transport sometimes developed to their own concept.
choose not to insure the transport risk.
‘In general, transport operators are covered for liability by a P&I (Protection and Indemnity) Club or via their own liability insurance’ When goods are damaged or lost during transport then the owner of the shipment will have to find his way through the world of rules and treaties. If he has arranged good insurance for himself then he can rely on that. Otherwise he must do it himself. Frequently, just as with insurers, it is necessary to call upon a specialist loss adjustor. When handling damage claims the moment inevitably comes when the other party, whether or not via a court of law, asks for proof. The question is as old as time. And indeed, through the centuries this has developed as the basis of our legal system. The party seeking redress will invariably be told QUOD ERAT DEMONSTRANDUM, or, what has to be demonstrated.
case comes before a judge. It deals with the purchase/sales process, the realisation of a transport agreement, the circumstances during transport, it describes the condition of the goods upon arrival and whether they were properly packed or not. Of course, the damage assessment process is documented and the report contains a calculation of the amount of damage. Finally the report documents the cause of the damage and the possibilities for recovering damages from the guilty party. Sometimes, when an investigation is undertaken as outlined here, aspects can come to the fore that the parties will not have expected. Unimagined causes or product behaviour can lead to a separate investigation of risks during transport and handling in order to determine equitable insurance cover and premiums. Companies that are not insured can be deterred by the fact that preparing an assessor’s report costs money. It is often forgotten that the cost of the insurance premium has been saved. Certainly if it concerns a substantial claim it is well worth considering the pros and cons of investing in an assessor’s report.
It is precisely at this point in the handling of a claim that the importance of an expert assessor’s report is proven. New transport routes are being (re) developed, such as the Marco Polo Silk route. From China to Western Europe by train in half the time. In this globally revived but turbulent world of Trade and Transport, a small solar system is revolving, a world of Claims and Liability. It is fuelled by the world of Trade and Transport but has its own rules and practices. Increasing trade and transport is accompanied by ‘the law of large numbers’ in that more can go wrong. Most entrepreneurs cover their transport risks with a transport goods insurance policy and are expertly assisted to obtain customised cover. Yet there are still some sectors that
The specialised transport assessor knows exactly how to find his way in the complex and international world of trade and transport. Together with the consignee or the shipper of the goods, the products’ characteristics are examined against the backdrop of the actual circumstances of the transport in order, as accurately as possible, to ascertain the reason for the damage. Besides product damage the assessor knows where the case fits into the jungle of regulations and treaties so that the correct measures can be taken to guarantee the best possible course for the claim in the further process.
Frans Vonk Binnendijk-Bree Surveys Flamingoweg 6 1118 LE Schiphol, the Netherlands T: +31 (0) 20 653 1996 (24/7) E: schiphol@bbsurveys.nl www.bbsurveys.nl
An assessor’s report is an official document that can be used when a
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Transport Insurance
Cor van Maurik RMIA CII
Transport Insurance and Incoterms The way in which an export order is carried out, is determined by the agreed Incoterm. In practice this regularly causes problems between the seller and the purchaser, certainly if damage should occur to the goods during transport.
the arrival port to the place where the purchaser is established also, normally speaking, falls outside the insured route. Transport damage incurred on this last section of the transport therefore falls outside the cover of the transport insurance.
In some cases it turns out that no transport insurance has been taken out or, there is a transport insurance but, for example, there is confusion over the scope of the insurance cover because the seller and the purchaser evidently did not make satisfactory agreements with each other.
In some cases it is not possible to indicate exactly where damage actually occurred and this consequently brings more problems with claim settlement. All in all, in the case of such damage, these situations cause discussions between seller and purchaser.
Of the current eleven Incoterms, only two oblige the seller to take out insurance on behalf of a purchaser, these are CIF and CIP. The other nine Incoterms oblige neither seller nor purchaser to take out transport insurance.
It is therefore to be recommended that when the ICC set new Incoterms in 2020 that this be taken into account and the seller be obliged to arrange warehouse to warehouse cover on behalf of the purchaser. This would prevent many unnecessary discussions in the future.
According to Incoterms CIF and CIP the seller should take out a transport insurance for at least the minimum conditions listed in the Institute Cargo Clauses (C) of 1 January 2009. These cover only a very limited number of risks. The insurance cover should commence at the moment that the risk of damage and loss transfers from the seller to the purchaser. For Incoterm CIF this is the moment that the goods are loaded on board of a ship in the port of departure and for CIP at the moment that the goods are transferred at the stated loading place to the first carrier of the entire chain.
It would be even better if the cover under CIF and CIP were to be based on the Institute Cargo Clauses (A) of 1 January 2009 that offer far wider cover. I understand, of course, that such cover would not be possible in all cases, therefore, in such cases, it would have to be a question of good communication between seller and purchaser.
The CIF Incoterm states that transport insurance cover must continue until arrival at the agreed destination port. With CIP this is the agreed place of destination. With the latter Incoterm therefore, the insured route is more extensive than with the CIF Incoterm. BRR Schadeverzekeringen B.V.
In practice, under Incoterm CIF, we regularly see that the purchaser has been under the impression that he had cover from warehouse to warehouse. So as I have written above, this is not necessarily standard. The initial part of the route up to and including loading onto the sea vessel is at the expense of, and for the risk of, the purchaser. The transport risk from
P.O. Box 35033 3005 DA Rotterdam Tel: 0031 10 286 59 33 www.brrgroep.nl
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Legal
René de Bondt and Dolf van Gaalen De Haan Lawyers & Solicitors www.dehaanlaw.nl
Cross-border debt collection tools
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hen you have an outstanding claim for payment with a company in the Netherlands there are ample possible options enabling you to recover your claim. You can, for instance, choose to request a distraint on the debtor’s bank balances. The balance of the amount of the claim for payment is then “secured” until it is ascertained that you do have a claim on this amount. But how does this work out if there is a claim against a company outside the Netherlands? Ensure your Accounts Receivable is in good order No businessman needs to be told of the importance of the prompt payment of invoices by debtors. Good receivables management is vitally important for cash flow and thus a company’s viability. A complete, up to date debtor file comprising the invoices, correct debtor details and copies of all correspondence undertaken with the debtor in the form of reminders and warnings is a minimum requirement for the successful collection of your receivables. If a debtor, despite reminders, does not voluntarily proceed to pay, then legal action comes into play, including the issuing of a distraint order. In the Netherlands a distraint can be served without the creditor having received a ruling: this is called a preservation order. In doing this, the creditor has more certainty that, following a definitive court judgment, the outstanding amounts will actually be paid.
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Foreign debtors The following scenarios can be distinguished with regard to foreign debtors. A preservation order can be applied on a foreign debtor with no known place of domicile in the Netherlands if the debtor has goods, including bank balances, credits etc. that are located in the Netherlands; this is known as foreign attachment. It becomes more difficult if the foreign debtor has no goods or credits in the Netherlands. The new European bank attachment can help in this situation. European bank account preservation Since 18 January 2017 European Regulation No. 655/2014 applies to the preservation of European bank accounts. The intention of the Regulation is to simplify the freezing of funds in debtors’ bank accounts in other European countries. This is possible using a European Account Preservation Order (EAPO). In this way, permission may be obtained from a Dutch Court for the preservation of funds held in a debtor’s foreign bank account. The Regulation applies in all EU member States with the exception of Denmark and the United Kingdom. It must however relate to a cross-border claim. A claim is considered cross-border if the bank account relating to the funds preservation is held in a Member State other than the Member State where the request was submitted or the Member State where the debtor has his domicile. The Regulation is applicable only on monetary claims between companies or between companies and consumers.
René de Bondt
Standard form The request to the Court for an EAPO takes place by the submission of a standard form. After submitting the form, the Court decides within a few days upon your request. There are, of course, several requirements. The request must be accompanied by supporting documents proving you have a claim on the debtor. The Judge will often only give permission if you can sufficiently demonstrate that funds preservation is necessary due to a real risk that recovery would be impossible at a later date. An EAPO granted by a Dutch Judge is subsequently enforceable in the relevant Member State. As a general rule, the creditor is obliged to offer a form of security for an amount sufficiently high to avoid abuse of the procedure and also in relation to the potential damage that the debtor could suffer as a result of any unjustly applied preservation. The bank in question must advise within three working days of the preservation having taken place if it has been successful.
Dolf van Gaalen
‘Good receivables management is vitally important for cash flow and thus a company’s viability’ Conclusion The European bank preservation can, under certain conditions, be attractive for the recovery of claims against foreign debtors. If you are dealing with non-paying debtors, contact us (info@dehaanlaw.nl). We will be pleased to advise you on the legal options.
Main Proceedings When a pre-judgment attachment is the case, proceedings would generally be set within 14 days of the order being promulgated or within 30 days of the date of the lodging of the request. These proceedings are pending until brought before a competent Judge in accordance with another EU Regulation. With a purchase/sales agreement it would usually be with the Judge for the vendor, thus a Dutch Judge may handle the case.
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INTERNATIONAL AIRFREIGHT ASSOCIATES BV
Digitalisation of the Cargo Claims process The need for the air cargo industry to aim for the absolute highest possible level of customer satisfaction in all aspects of service provision is increasing. Settling cargo claims is an important part of this. Until a year ago Dave would literally push kilometres of paper around managing claims for two airline companies. Now the process is completed entirely digitally.
C
argo Magazine spoke with Dave Suhajda, Senior Manager Claims for Polar Air Cargo and Atlas Air, the first American airline companies to participate in the IATA Cargo Innovation award winning, Cargo Claims platform. Dave says: “About two years ago we came into contact with CargoHub BV, the platform’s developers. We indicated our wish to have our claim files, complete with all accompanying documentation, such as photographs, documents and other related information, brought together into one system. The challenge for CargoHub was to keep the processes for our Polar Air Cargo and Atlas Air customers separate whilst, at the same time, consolidating them for me as claims manager allowing the claims process for both airlines to be managed as one. In October 2017 the system was ready and we were the first American airline companies to make use of the Cargo Claims platform.” Transparent and efficient claims process “A major advantage of the Cargo Claims platform is the elimination of many paper files. All files are now digitally retained in one location. The overview for the claim handler is well structured and enables us to rapidly access all aspects of a file and to process information easily,” Dave says. “Communication with our customers can, with the help of the platform, also be simplified by using templates and all of our correspondence with a customer is saved digitally,” Dave explains. “Our customers can, of course, look up the claim status of their files within their own account and they can
Worldwide IATA awarded Cargo Claims Platform
Cargo Claims
Polar Air Cargo & Atlas Air
Texst Cargo Magazine
• Worldwide multi stakeholder platform • Claims management for Airlines, Forwarders and Shippers • Standarized process within an industry platform
Forwarder
Forwarder
Forwarder
Forwarder
Forwarder
Forwarder
Forwarder
Forwarder
upload supplementary documents. The platform has helped us streamline the claims process and we now handle all files digitally on the platform.” Striving for exceptional customer satisfaction Dave concludes: “That goods are sometimes damaged or lost is very irritating. In the interests of all involved parties these situations must be resolved promptly and the Cargo Claims platform helps us do this. We have reduced processing time for cargo claims and CargoHub has taken on board the suggestions we have made to improve the platform yet further. We look forward to further intensive cooperation with CargoHub to enable us to provide our customers with exceptional service whilst, at the same time, contributing to the further standardisation of the claims process within the air cargo industry.”
Dave Suhajda, Senior Manager Claims voor Polar Air Cargo en Atlas Air
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Airport
Brussels Airport Cargo: continually evolving the last two years. After a year of intensive brainstorming and testing, the Slot Booking App was introduced at the beginning of this year. Participating companies use this app to arrange slots for delivering and loading cargo. By using the app waiting times at the handling agents’ warehouses are shortened dramatically. The app coordinates the match between supply and demand of slot times at the handling agents, streamlines loading and unloading, leads to improved use of the available capacity and reduces ‘lost’ time. More and more companies have joined and are using this app.
Text Esther Kort-Boreas Photography Brussels Airport
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teven looks back at last year with satisfaction. “There was no question of sitting still”, Steven says. “As an airport you must accommodate growth and therefore we are very busy with excellent projects in the areas of real estate, IT and handling. We are doing this together with Air Cargo Belgium and all the parties in our cargo community. The community is highly committed to together finding innovative solutions for optimising logistical processes at BRUcargo and to be ready for the growth that is still to come.”
BRUcloud developed further BRUcloud is an open platform for the cargo community at Brussels Airport where data can be shared. In the first instance, when compared to other systems, it is not about existing messages or digitalising communication between parties, but rather to make data sharing in the cloud possible. It ensures that the various stakeholders in the logistical chain can operate as a more “integrated” network and
where new digital solutions can be developed. Data is stored centrally. The moment a company logs in to the cloud, it can exchange information using existing applications with other stakeholders instead of relying on separate 1-to-1 systems with each stakeholder. At the end of last year the first BRUcloud event took place with the aim of showing the cargo community the possibilities and advantages of the open data-sharing platform. Companies specialising in digitalisation engaged in conversation with forwarders, the airport and Air Cargo Belgium. “Given its innovative character, certainly there are hurdles to be overcome. But recently winning the ‘Information Technology for the Air Cargo Industry’ award in Shanghai shows that we are on the right path”, Steven says. Apps A few smaller apps went live during
“The app was developed through intensive cooperation between various stakeholders at BRUcargo and the province of Flemish Brabant; it is the first major step in the BRUcargo digital roadmap. In the third quarter of this year the app will be expanded with the ‘Central Driver Database’ and the ‘Freight Management App’, including block chain applications. Keep an eye on this on our special website www.brucloud.com“, says Steven. Focus on Pharmaceuticals Brussels Airport was the first airport in the world where stakeholders jointly worked on obtaining the CEIV Pharma certificate. The majority of pharmaceutical shipments handled at BRUcargo pass through a fully certified, uninterrupted cool chain. Time does not stand still and after obtaining the certificate, it is already time for a number of companies to be re-certified. The fact that all the certified companies will renew their licences says a lot about the cargo community’s commitment to the
CEIV program by which BRUcargo can retain its leading position as ‘Preferred European Pharma Gateway’. “The development of the Airside Pharma Transporter has been a great success but even in this area we are not sitting still”, Steven says. “BRUcargo remains in dialogue with the shippers of pharmaceutical products to determine their specific requirements and learn the expectations they have of air transport. The Airside Pharma Transporter was realised in this way and we will work very closely with the customer with regard to future amenities and facilities.” That pharmaceuticals are high on BRUcargo’s agenda is shown by the fact that the airport at the beginning of June was again host partner of the ‘FlyPharma’ conference in Brussels. The conference that is also held in Asia and the United States, aims to stimulate dialogue between interested stakeholders in the pharmaceutical industry. (For more information: www.flypharmaconference.com) Together with Miami, Pharma.Aero was set up to boost the focus away from local solutions to end-to-end solutions. The accession of airports such as Singapore, Mumbai, Basle and Hong Kong proves the importance and benefit of such an organisation.
E-commerce Brussels Airport is also seeing clear growth in terms of the volume of e-commerce. Here too the cargo community wants to be actively involved in the coming years in the area of customs procedures as well as infrastructure and operational arrangements. Within Air Cargo Belgium there is an active e-commerce workgroup and the airport will also be expanding the cargo team in the coming months with a new business development manager to facilitate the expansion of this segment. Real estate and infrastructure Brussels Airports is very conscious of the importance of logistics and the added value of this for Belgium. Up to 100 million Euros will be invested in hypermodern logistical buildings. Steven: “These investments will further strengthen our position by offering space to the top players in the cargo industry.” Currently there are more than 100 different players located at BRUcargo. BRUcargo is Belgium’s second logistic hub for international trade after the harbour of Antwerp. In the coming three years a first line cargo building of no less than 50,000m2 will be developed on the west side of BRUcargo. Three key players in cargo, both handling agents and forwarders, will move in. The new infrastructure
is particularly suited for the handling of high quality and temperaturesensitive products (for instance, pharmaceuticals), a segment wherein BRUcargo is already designated as one of the best airports in the world. In this way BRUcargo is supporting the major pharmaceutical companies based in Belgium. BRUcargo is also going to redevelop the existing first line handling warehouses. The building in which Swissport currently operates will be transformed into a modern and energy-efficient warehouse and office with a total 30,000m2 floor space. In addition there will also be a secured warehouse for very valuable goods that Brinks will occupy from 2019. Livestock will also be given a tailormade and equipped building. There will be an inspection area of more than 2,000m2 wherein both the temperature and lighting can be adjusted to the species of animal that is being temporarily accommodated there. “In summary I think I can safely say that developments at BRUcargo are really taking off. Due to the intensive cooperation between cargo parties both at the airport and beyond, we are achieving results that, without them, we could not have realised at this pace”, according to Steven.
brucargo@brusselsairport.be www.brusselsairport.be
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The organisation representing the air cargo industry in Belgium may be only two years old but it already has a respectable track record. The association is working at full speed on various projects. They are doing this together with cargo industry partners, each contributing their own expertise and perspective.
“C
ooperation within our community is very good”, Geert Keirens, the Director of ACB says. “The sense that it is all about shared interests means that we are all putting our shoulders to the wheel in order to achieve our objectives.” After barely two years ACB has more than 150 active members and the ACMAB and BAFI, formerly the Airlines’ and Forwarders’ organisations have been fully integrated into the ACB. BRUcloud “Digitalisation is a priority on our agenda. The BRUcloud developments are being closely followed internationally: recently Brussels Airport received the ‘Information Technology for the Air Cargo Industry Award’ at Air Cargo China in Shanghai. That is a real boost for the BRUcargo stakeholders, our partner Nallian and for the ACB”, Geert says.
the future and get inspired’. “Speakers from both within and outside the industry shone a light on innovative subjects and trends in the supply chain. That the government is also attaching importance to this theme was evidenced by the fact that Minister de Croo, whose portfolio includes digitalisation, closed the Forum.”
‘After barely two years ACB has more than 150 active members and the ACMAB and BAFI, formerly the ‘Airlines’ and Forwarders’ organisations have been fully integrated into the ACB.’
Industry Association
Air Cargo Belgium striding forward
second Speed Network event was well attended and there is much enthusiasm for forthcoming events specifically aimed at this group of young professionals in the cargo industry.
Text Esther Kort-Boreas Photography Air Cargo Belgium
Air Cargo Academy Air Cargo Belgium recently set up the Air Cargo Academy, a training and competency centre. The objective is, in addition to the traditional and certified air cargo training courses, to successfully inform and train all employees on the innovations being realised by ACB. Air Cargo Academy will also be a part of the Airport Academy, an initiative of Brussels Airport House. “And of course there is also time for relaxation”, Geert says. “Our annual Summer BBQ being a very good example of this.”
info@aircargobelgium.be
Innovation Forum Geert proudly speaks about the first Innovation Forum that ACB organised with the title ‘Take a digital flight to
YAN The Young Airfreight Network may count on considerable interest from BRUcargo’s younger generation. The
www.aircargobelgium.be
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Airport
Cargo is and will remain anchored in the Schiphol Group A restructuring has taken place within the Schiphol Group in recent months. The Cargo division has been merged with Aviation Marketing. Time to renew acquaintance with Maaike van der Windt who leads the division and Bart Pouwels who is responsible for Cargo.
M
aaike van der Windt has over 20 years’ experience in the aviation sector. After 10 years in various positions at Schiphol she left for Brisbane Airport in 2008 to take on several senior management functions in the strategic and aviation areas. Since last year she has been back at the Schiphol Group; since April in the position of Director
Aviation Marketing, Cargo and Customer Experience. The new set-up guarantees that cargo will be robustly represented in the future. Further we see the importance of belly capacity alongside full cargo capacity. Merging cargo with the passenger network and business developments allows us to take
Text and photography Schiphol Group
magazine
Communication with the cargo community will remain as it was. New developments can be followed via the online newsletter CargoNews and via LinkedIn. The Cargo Café will also continue. In addition Maaike and Bart are active in the various sector councils and the management board. Ensuring cargo interests Cargo remains an important element for Schiphol. Our focus lies on improving logistics at and around Schiphol. We continue to support the community with market-oriented sustainable solutions. These are under the umbrella of the Smart Cargo Mainport Program (SCMP). We will also continue to lobby in The Hague. One of the challenges for Schiphol and its users is to arrive at a new ‘Alders’ agreement and to gain clarity on the development of Schiphol after November 2020. Schiphol will, of course, actively take the interests of both passengers and cargo into these discussions. In order to be able to do this in the best possible way, we regularly consult with the various stakeholder organisations such as EVO-Fenedex, NDL and ACN.
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advantage of these opportunities. We are also seeing that passengers and belly flows are increasingly being integrated. This set-up can also better facilitate this. Full freighter airlines remain, of course, important for Schiphol and we shall work hard in the coming years to retain and facilitate all our airline customers.
Bart Pouwels
‘I would like us jointly to work more with our own community’
Plans for passengers and cargo Schiphol wants to retain its current Mainport network position in the coming years which means: retaining the number of direct passenger and cargo destinations and ensuring that in terms of cargo volume Schiphol’s position in Europe is maintained. Given the scarcity of slots until 2020 these are ambitious goals. In light of this, Schiphol is working hard on innovation with various market partners in the SCMP. In this way in the near future we will be able to process cargo at Schiphol faster, more efficiently and more reliably. Everything is aimed at digitalising the air cargo flows at Schiphol. Data sharing Schiphol is closely involved in the development of the Holland Flower Alliance (HFA), Pharma Gateway Amsterdam (PGA) and the SCMP. Our mission for the cargo area remains: ‘shaping Europe’s smartest cargo hub’ and we will continue to work hard at this. In particular, the importance of (digital) data and information sharing remains a priority. Only when all chain partners can share data with each other will we, as the air cargo sector, profit from this. We are committed to developing platforms upon which such data can be shared. An example of this being our information sharing platform in the HFA as part of the SCMP.
the Coordination Committee Netherlands at Schiphol. Infrastructure Landside congestion has our full attention. The project ‘landside pickup & delivery’ has been especially set up within the SCMP. This project is to ensure that we use digital flows. If you know what’s coming and when, then you can utilise your first line capacity in a far better way. Maaike’s first 100 days I will use my first hundred days to get to know the most important stakeholders in the cargo industry better. We are also going to take time to re-frame Schiphol’s cargo strategy in order to be able to ensure that our plans contribute to retaining Schiphol’s cargo position. We will also be continuing the Schiphol Cargo Mainport Program and hope we will be able to show more success in the short term.
Bart’s plans In the past we worked very hard to put Schiphol on the international map. This meant that too little time was left for us to focus on and around our own airport. I would like us jointly to work more with our own community. This has already been set in motion with gatherings such as the Cargo Café. However, we should also show our faces more on the first and second lines.
For more information: www.schiphol.nl/nl/cargo
Slots The IATA World Slot Guideline does not differentiate between slots for passenger or cargo flights. We will continue to organise events with experts explaining the IATA rules to all airlines. Schiphol will be present during the IATA slot conference to discuss Winter 2018-2019 with all companies. There is also a lot of attention for the problems relating to cargo flights in
‘Merging cargo with the passenger network and business developments allows us to take advantage of these opportunities’
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Industry Association Maarten van As
Air Cargo Netherlands stepping towards the future On 1 February Maarten van As (47) joined Air Cargo Netherlands (ACN). He is succeeding Ben Radstaak as Managing Director. Radstaak, 63, will continue in the coming years as ACN’s Director, Innovation and Compliance. With this structure, the ACN Board wishes to guarantee the continuity of the organisation while, at the same time, modernising the industry association.
Tekst ACN Fotografie ACN
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V
an As’ background is in public affairs. For a long time he has worked on the interface between organisations and their environment. Previously he worked as PA-coordinator for the research organisation TNO, amongst others. For the last five years he was Manager Communications and Public Affairs for Zeeland Seaports, the port authority developing and managing the port areas of Vlissingen and Terneuzen.
An important task for Van As is to modernise ACN’s strategy. For many years ACN has been active as the platform for the various links in the Netherlands air cargo industry chain. The branch organisation fills an important bridging function between the parties in the air cargo chain. Occasionally there are envious looks from abroad at this successful form of cooperation in the air cargo chains.
Much will change in air transport in the coming years. Major and rapid developments in information technology, but also, for example, the enormous growth in e-Commerce will have consequences for the whole sector. In addition, society is now viewing air transport in a different way – much more critically than previously. Huge societal challenges with respect to the environment will require clear responses. Also from the air transport sector.
Van As says he feels at home in his new role. The chain partners and the issues at hand are, according to him, comparable with those in a seaport, his previous working environment. “What makes the logistics sector so interesting is, I think, the commitment and enormous professionalism of all chain partners. With ACN the air cargo sector has created an extremely good instrument to keep itself both sharp and innovative by constantly having the chain partners communicating with each other. Even though the interests and requirements within the chain may, of course, differ. The challenge is to
In mid-June the Minister rejected the submission for a ‘local rule’. A new proposal will be prepared to work through and dispel the Minister’s objections.
remain on speaking terms. We sometimes forget how unique this form of cooperation is in the air cargo chain. If you speak with parties active at airports abroad then you regularly hear that the air cargo chain at Schiphol is looked upon with envy.”
Local rule At this moment a proposal for a Schiphol local rule driven by the sector is with the Ministry of Infrastructure and the Environment. The Minister recently told the Second Chamber of Parliament that a response, either positive or negative, would be advised before the summer recess. First they want to ensure that the proposal cannot be interpreted in a number of different ways. It is very important for the sector that clarity is given without delay. As ACN we are also sending out that signal.* Timely recognition, picking up on and absorbing technological developments and innovations is an important part of the new strategy. But societal questions will also be given a place. In order to retain society’s ‘licence to operate’, the air cargo sector must demonstrate the added value of air cargo for The Netherlands Ltd.: the high added value of air cargo and the considerable opportunities for employment in the air cargo chain. In addition – and this should not be underestimated – the presence of an innovative and efficient air cargo sector is one of the important location factors for international companies.
Pioneering role ACN will continue to remain the practical ‘go-to’ association for all parties active in the Netherlands air cargo community (airlines, handling agents, forwarders, truckers and service providers). In addition ACN will focus more on its pioneering role in the modernisation of the sector and on presenting a stronger profile to the outside world. In the transition from ACN 1.0 to ACN 2.0 the concepts visibility, impact and innovation will be central. ACN is currently working hard drawing up its new strategy. At its core are three levels: 1) The services ACN offers to its members. An example of this is the ACN pass allowing efficient access control to the terrain of handling agents, hauliers and freight forwarders. 2) The unifying activities that ACN organises for its members, such as the Sector Councils but also sector-wide innovation and compliance projects. 3) Lobby and agenda setting, in which the acceptance of air cargo in the Netherlands is a most important subject. Parallel to drawing up the substantive strategy, ACN is working on modernising the industry association itself. Points for attention include the decision making process
within the organisation and skills management. More than ever there will be many different irons in the fire. Maarten van As will primarily address the daily routine matters at the ACN office, association business and contacts with the outside world and politics. Ben Radstaak will have more capacity for his role as Director Innovation and Compliance to address important innovative projects for the sector. Ben will, in the years ahead, also be able to optimally transfer his knowledge to the ACN team. ACN is thus in a better position to tackle both current and future challenges in the interests of the whole Netherlands air cargo industry.
Maarten.van.as@acn.nl Tel: 06-1527 6115 www.acn.nl
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Data sharing Tekst iSHARE
iSHARE is ready for use at Schiphol Since 29 March this year everyone in logistics can work with iSHARE. This unique agreements system makes sharing data more efficient, easier and faster, also in air cargo. General Director Nanne Onland of Cargonaut is working closely with the airport and Customs on establishing a new data cooperative for the air cargo community at Schiphol. He calls on parties to work together with iSHARE. “We are going to have to digitalise further to be able to efficiently use the limited capacity we have here.”
S
uppose an air cargo carrier such as KLM Cargo submits an import declaration to the Netherlands Customs. The declaration receives a status report from Customs that is of interest not only to KLM Cargo but also to the other parties in the supply chain. Think of the shipper who gave the order for the shipment, or the handling agent, transporter or recipient of the shipment in the Netherlands. They could adjust their planning as soon as the status report shows that the shipment has been cleared and therefore may be transported. However, Customs may only issue this status report to the party submitting the declaration. In this case that would be KLM. The Schiphol Data Cooperative that is being established at the moment and iSHARE can help change this. Participants in this agreements system, such as KLM Cargo and Customs, can far more easily exchange status reports and other data between themselves. And thanks to iSHARE, also share these data with unknown parties further down the chain. “This is one of the many use cases that we have set up together with iSHARE and various other parties. Now that iSHARE is ready for use, it is time to put it all into practice”, says Nanne Onland of Cargonaut, that, together with KLM Cargo as co-creator partners, has been involved from the start in the development of iSHARE.
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Authorisation iSHARE is an initiative of the Top Sector Logistics to make data sharing
in logistical chains more efficient, cheaper and faster. Until now data sharing has often been restricted to parties who know and trust each other. This is no longer sufficient for today’s digital supply chains, let alone the future’s. Take a shipper who uses a forwarder for an airfreight shipment. The forwarder will make use of parties that the shipper does not know and often does not need to know. But the shipper will certainly want to know how far these parties
the Maestro logo”, Onland explains. “Thanks to that logo, I can pay with my cash card in every shop. I know for sure that the correct amount will be credited to the correct shop’s account but also that the shop will not receive any irrelevant information, such as the balance on my bank account. This is how iSHARE works.” Launching customers iSHARE is now ready for use. A beta version was launched last summer and was tested in practice by various parties. The experience gained during these practical tests has been worked into the definitive model that will be ready at the end of 2018. The first live transactions based on iSHARE agreements will then be shown to the public. There is growing interest from abroad in this unique agreement system.
‘Whoever wants to exchange data with an unknown air cargo handler knows for sure, thanks to SHARE, that this party is indeed the air cargo handler he says he is’ are in handling his shipment. He wants to be able to follow his shipment and pass this information on to his customer who is sitting waiting. iSHARE facilitates this process. In fact, iSHARE is nothing more than a series of agreements for identification, authentication and authorisation. Whoever wants to exchange data with an unknown air cargo handler knows for sure, thanks to SHARE, that this party is indeed the air cargo handler he says he is. Moreover, with iSHARE he can indicate the data the unknown air cargo handler may and may not receive. The owner of the data therefore always retains complete control over his own data. “Compare it to my cash card with
During the official launch at the Annual Congress of the Top Sector Logistics on 29 March it became clear that twelve companies were immediately going to work with iSHARE. These ‘launching customers’ include software providers, logistics service providers and Rijkswaterstaat (the Directorate General for Public Works and Water Management within the Ministry of Infrastructure and Water Management), as well as Portbase and Nxtport, the digital platforms of the sea ports of Rotterdam and Antwerp. “There is still much missionary work to be done but these first organisations are going to make real use of iSHARE. They can see the advantages for their own business, for the sector and for the environment.
I am expecting that they will be a source of inspiration and an example for others”, says Program Manager Michiel Haarman of the Neutral Logistic Information Platform, (NLIP), the data sharing platform of Top Sector Logistics. Better flows through digitalisation Cargonaut is not one of the launching customers, but as far as Nanne Onland is concerned, that will change shortly. “An era of scarcity is commencing at Schiphol. Scarcity in take-off and landing rights, in slots, in physical capacity and societal support. We shall have to work differently to make better use of the limited capacity we have. That means that we must digitalise. The Schiphol Data
Cooperative and iSHARE can play an important role in this.” Onland points to the European Green Fast Lane, a project of KLM Cargo, Swissport, Kuehne + Nagel and Jan de Rijk. A substantial proportion of the cargo that leaves Schiphol in the air with KLM is supplied from line stations such as Frankfurt. Replacing airfreight movements by road transport is accompanied by all sorts of inefficiencies that can lead to flights being missed due to late or unpredictable deliveries. The European Green Fast Lane should eliminate these inefficiencies by sharing data in advance, validating and correcting as necessary. “At Schiphol we would all like to only receive shipments that
have been registered in advance in order to facilitate the flow at Schiphol. Wouldn’t it be great if a pharmaceutical or high-tech producer made the data relevant to his air cargo shipment centrally available to all parties from the road haulier to the handling agent at Schiphol? Then we would only have one version of the truth.” Getting going The Schiphol Information Exchange that Cargonaut manages on behalf of the air cargo community, functions well, in principle, without iSHARE. What makes this agreement system particularly valuable, however, is the opportunity it offers to improve communication with other community systems. A party that, for example, is connected to GLS Hong Kong, Hong Kong Airport’s platform, can directly communicate with a party at Schiphol without first having to apply to Cargonaut for a new identity. “This requires an agreement system that is accepted internationally. This is iSHARE’s greatest challenge. At the moment we are in the middle of a ‘chicken and egg’ discussion and we need to break through this”, declares Onland. International or not: in the short term Cargonaut looks forward to working with Schiphol Data Cooperative and putting iSHARE into practice. He calls on the affiliated software providers to implement the agreement system but also asks airlines, forwarders, logistics service providers and handling agents to go ahead. “It’s time for us to take action.”
E: info@ishareworks.org www.ishareworks.org
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Cargo Handling
Self service check-in now at Swissport Cargo
Swissport Cargo introduces updated concept for handling What began as a pilot project has grown into a new concept in cargo handling developed by Swissport Cargo. Cargo Magazine has been given some background on this cutting edge development by Jeroen Giling, Director Cargo and Thierry Huizing, Project Manager of Swissport Netherlands. Text Esther Kort-Boreas Photography Michel ter Wolbeek
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“T
he concept of the self service kiosk is managed from our head office” Jeroen begins. “The idea behind it is to have cargo processes operating more efficiently by using automation and also to gain a better insight into the processes.”
shouldn’t a similar scheme work for cargo?”
Thierry explains: “We have introduced for cargo what has been common practice for passengers for years. There are kiosks in the departure hall at Schiphol where passengers go through the check-in process. This is well known by everyone. Why
Opportunities “We are convinced that our concept of a self service kiosk offers opportunities. By having drivers register via a kiosk, the expectation is that waiting times at the Cargo Office will decrease. Indeed, if all the scanned details
With this thought in mind, a Swissport team set about comparing the flight check-in process with the cargo handling process and this has resulted in the cargo kiosk.
and shipment documents agree, the visit to the Cargo Office will no longer be necessary”, Jeroen says. “There is a 100% check with the EU database for every export shipment. If, at the conclusion of the check-in process, there is something that does not tally the driver is directed to the Cargo Office for further processing. There are no grey areas any more: documents are in order or they are not. Another benefit is the link with the Customs and Cargonaut systems. All shipments are checked remotely, giving our employees the advantage of quickly and easily gaining an insight into the status of a shipment.” To make optimal use of this new concept, it is very important that the security status as well as the known haulier relationship is in order.
Soon there will be two options for the collection and delivery of cargo at Swissport. 1. By means of a pre-notification (web check-in) the shipments relating to a driver’s visit to Swissport can be specified. At the security box, the driver is assigned a door number by text message (hereby bypassing the kiosk). 2. The procedure via the kiosk: While presently drivers must often wait until they have been helped at the documentation counter, the kiosk makes self service processing possible. The driver registers using either an identity document or an ACN pass. The shipments being delivered or collected are then selected at the kiosk. As soon as the selection process is complete,
Next steps Jeroen: “A kiosk at the entrance of the Swissport Cargo terrain is our first step. But why not put a kiosk at TP3 (Truck Parking 3) far away from our site? Drivers could park at TP3 and scan everything via that kiosk. In this way, we would be creating a buffer zone so that parties would only be called once their shipment is ready at the correct dock. Congestion at the door would become past history”.
the Door Management System allocates a door for the driver. After docking, the driver reports to the warehouse office where any documentation can be handed over and the warehouse handling will be coordinated. There is no need for the driver to separately visit the Cargo Office - one of the great advantages of this new one-stop concept. The Door Management System also gives real time information on the number of drivers. We will be able to differentiate urgent cargo from less urgent cargo. This gives us the chance to even further improve cargo delivery coordination.
It does not stop at this next step. Swissport is thinking ahead and is studying the possibilities for a ‘remote’ buffer zone. “How efficient would it be if a trucking company’s computer system were to be connected to our system? By logging in, the company could perform all the operations of the kiosk and receive a signal when a particular driver’s cargo is ready
Together with the Royal Netherlands Military Police (Marechaussee) and ACN, this is being addressed for the whole Schiphol community. Security status is currently not often a part of digital communications. Furthermore, it appears from the first test period that the known haulier relationship has not yet been recorded into the central SmartLOXS system by a large percentage of parties. Eventually the ACN goods receipt will no longer be necessary for the delivery of cargo via Swissport. Initially the kiosk is printing this along with the transfer form. In the next stage this will be completely digitalized.
to be loaded”, Thierry says. “This may sound futuristic, but it definitely seems possible to us”.
Voor meer informatie over de self service kiosken kunt u contact opnemen met Thierry Huizing. E: thierry.huizing@swissport.com T: +31 (0)6-2330 0337
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Forwarding
In the cloud forwarding
How Air Promotions Agencies keeps growing with Logitude Air Promotion Agencies, a quality freight forwarder located in the centre of BRUcargo celebrates its 10th anniversary this year. “We have come a long way since we opened our doors on 1 February 2008. Much has changed for the better, especially with our next generation forwarding system, Logitude, which has proved to be both cost-effective and has improved our time management process.”
A
s a small to medium-sized forwarder shipping about 700 shipments per month, it is essential to have a straightforward workflow that allows APA to compete with the bigger network forwarders. CHAMP Cargosystems’ Bart Jan Haasbeek discusses the integration of the Logitude freight forwarder software with the owner of APA, Maria Cranshof. With Logitude, it is easy to create AWB’s, invoices and quotes - and share these directly with your customers using “Shared Logistics”. This feature allows you to easily create frequent shipments, simply by copying them!
‘With Logitude we have managed annual savings of 15% on our system costs’
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“Would you recommend Logitude to other Freight Forwarders?” “Oh, absolutely!” says Maria Cranshof. “With its wide array of features and possibilities, we feel Logitude keeps evolving with our changing needs. We have excellent communication with our support desk and account manager, Ruben Barendse (a native Dutch speaker), who always reacts quickly finding new solutions for our changing needs. We were looking for a system for the future and that is exactly what we found in Logitude; a platform that is continuously evolving.”
Logitude supports various eDocuments such as eAWB and APA is therefore printing fewer airwaybills with the Matrix printer. The eAWB module not only saves money by reducing paper but also prevents various airline fees. The module increases productivity and reduces human error. In this way, APA has seen significant improvements and simplification in the air freight supply chain process. APA uses Logitude as a true multi-modal freight forwarding application for both its air and ocean freight shipments. A most important aspect is that Logitude is economically priced and is quite affordable. Ms Cranshof says: “When compared to our previous solution we estimate that with Logitude we have managed annual savings of 15% on our system costs”.
‘We were looking for a system for the future and that is exactly what we found’ Logitude is so easy to use as Software as a Service (SaaS) multi-modal freight forwarding software solution that APA estimates shipping productivity has increased by 15%-20%. Logitude encompasses the latest freight management software for optimal functionality throughout the freight forwarding cycle from quotes and shipment processing to billing and Track & Trace. Logitude’s freight software wizards and personalised workspace help enhance efficiency and help to leverage business. The software is designed using state of the art technology for ultimate customer convenience, scalability, security and functionality.
• No need to purchase specific hardware. • No need for IT support. • New features are released and existing features automatically updated at no extra cost. • No obligation following a free trial.
Logitude is ideally suited to APA’s needs. By using Logitude, APA can be as competitive as the world’s largest freight forwarders. It gives APA a modern solution combining the latest technology, functionality and user-friendly interface. In addition, shippers and agents can improve their forwarding processes by using the “Shared Logistics” module.
‘Cloud-based, anytime, anywhere…’ Logitude e-AWB is a low-cost pay-asyou-go option for participating in IATA’s e-AWB program providing the benefit of electronic communication with your carriers. But Logitude is so much more than just an eAWB communication module. It manages your shipments end-to-end, including Costs and Profit/Loss analyses, quotes, invoicing and collections, Shared Logistics (Track & Trace), mobile access to customers, access to CRM, personalising and customising the system to your own needs and much more! The true power of Logitude is that it is so easy to set up, easy to own and easy to use. You are up and running in minutes and fully connected to your supply chain stakeholders.
‘Experience Logitude yourself and see if it is the right product for your business’ Air Promotions Agencies NV
Interested in Logitude?
Brucargo Building 720 1830 Machelen, Belgium
If you would like to know more about
E: info@apa-air.be
Logitude, you can request a free trial
www.airpromotionsagencies.com
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Customs Law
Are Customs collections on Entry Summary Declarations upon (airside) arrival illegal? Before goods are brought into the customs territory of the European Union, an Entry Summary Declaration (ENS) must be lodged for entry. In short, the ENS should be lodged by the airline and aims to give Customs an opportunity to undertake risk analyses primarily for security purposes. The risk analysis must be completed before the actual arrival of the aircraft.
Text Raoul Paul
A
s soon as goods are placed with Customs, a Temporary Storage Declaration (TSD) must be lodged. Within 90 days of the submission of the TSD the goods must either be placed under a customs procedure or be re-exported. Until this time the goods may be stored in a space for temporary storage (STS).
Discrepancies at clearing / Irregularities on the TSD As soon as the TSD has been lodged and the goods transferred to the STS the goods are checked on the basis of the available manifest. Given the nature of airfreight logistics and administrative processes, it can frequently be the case that the number of packages detailed on the manifest does not correspond to the quantity of goods actually present. The variation, whether more or less goods, is subsequently incorporated into the administration by the STS holder.
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Clearance policy The Netherlands Customs has, since the entry into force of the Community Customs Code in 1993, taken the view that when fewer goods are found than shown on the manifest these goods have been withdrawn from Customs supervision. The viewpoint of Customs currently is that, between the moment of unloading from the aircraft and the placing in the STS, these goods have been withdrawn from Customs supervision
and this results in a Customs debt arising for both import duty and value added tax. On the basis of this theory the Netherlands Customs presented in 1993 a “shortfall in clearance” policy whereby the airline must prove upon arrival that the goods ‘not found’ had not been loaded in the country of departure or had in some other way been placed under Customs control. Are collections on goods “not found” upon arrival legal? The question is: is it justifiable that the Netherlands Customs consider that goods not found to be present upon arrival have been withdrawn from Customs supervision? Is it plausible that large amounts of goods are being withdrawn from Customs super-
being able to misappropriate goods without impediment 365 days per year, 24/7. Furthermore, after collecting data for many years and having undertaken numerous physical checks, Customs should be able to conclude that 99% of the identified shortfalls were declared and that therefore the information on the manifest is not always correct. Moreover, a significant percentage of airfreight is built up on pallets and, in relation to air security, completely swathed in plastic and fastened with straps. If, upon opening the packaging of the pallet and counting the packages built on the pallet, a shortfall in the number of packages is detected, you can assume that a package is not actually present, was intentionally not included on the pallet and therefore was not on board the aircraft. Last but not least, how do other Member States interpret the formalities upon arrival and the moment that customs supervision begins for
‘The question is: is it justifiable that the Netherlands Customs consider that goods not found to be present upon arrival have been withdrawn from Customs supervision?’
vision on a daily basis after having been unloaded from aircraft onto the platform when the platform is totally under the control of government authorities? The answer is obviously negative as security measures are at a level that rules out malicious parties
arriving goods? Does the Netherlands stand alone in Europe in its interpretation and, if so, what are the consequences if it is determined that community law has been incorrectly interpreted?
Raoul Paul
Ruling in relation to shortfalls of goods in temporary storage A Supreme Court judgment from 2009 (HR43143 16-01-2009) states that if a detected shortfall cannot be explained to the satisfaction of Customs then Customs will consider that the goods, between the moment of unloading the aircraft and depositing in the customs warehouse, have been withdrawn from Customs supervision resulting in the levying of duty upon importation by the relevant party. I believe that this position is only correct if Customs, during a physical check, were able to establish that the goods were present during the unloading of the aircraft but were not present upon placing in the customs warehouse. As an actual check of goods being unloaded from an aircraft hardly ever occurs, it cannot be established that the goods were left on the aircraft and therefore were not brought into the customs area of the European Union. Thus the right to levy customs duty and value added tax upon importation would also lapse, as the General Prosecutor of the Supreme Court of the Netherlands concluded in the above-mentioned ruling.
Changing a TSD, the UCC offers a solution Indeed much can be discussed and written, but it is now possibly the right moment for Customs and the business world to seize upon the opportunity presented by the entering into force on 1 May 2015 of the Union Customs Code (UCC) for changing a Temporary Storage Declaration. A change is possible until 30 days after the submission of a TSD. Article 146 of the UCC offers this possibility and allows for Customs supervision of goods brought to Customs to commence from the moment that the goods have been counted, or ‘ticked off’ as one would say in Belgium. It will therefore not surprise you that in Belgium no customs duty and value added tax is levied on goods that have not been ‘ticked off’. A request to change the manifest has been common practice in Belgium for years. Raoul Paul
Efficient implementation of a request for a change to a TSD will contribute the most significant reduction in the administrative burden for handling agents, airlines and Netherlands Customs since the implementation of the electronic ENS.
raoul.paul@cargohub.nl CargoHub Quality & Customs Compliance Platform
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Customs Law Text Raoul Paul
Is monitoring the 90 day period in STS problematic for the chain? Since the introduction of the Union Customs Code (UCC) it is obligatory to monitor that goods from outside the European Union are not held in temporary storage for longer than 90 days. The legislation allows no possibility to extend this period. The period is terminated by either re-exporting the goods or placing them under a customs arrangement, such as releasing into free circulation, placing under special procedures or exporting. Non-compliance with this obligation incurs a Customs debt and the debtor is the person who had been obliged to fulfill this obligation. In this case, therefore, an important task for the licence holder of the Space for Temporary Storage (STS) as he will be held responsible by Customs for the customs debt.
Article 5 paragraph 16 UCC specifies three customs procedures: • Release into free circulation • Special procedures • Export Article 210 UCC details the special procedures: • a) customs transit, both external and internal • b) storage, bonded warehouse and free zones
play a more active role to enable market participants to be able to check the status of a shipment and consult the relevant declaration. In my opinion, every market participant should be able to check a declaration status without having to be connected to a system. Various examples can be found on the European Commission website.
For each individual shipment, Customs must work backwards to check that the 90-days period has not been exceeded
• c) specific destination, i.e. temporary importation and special end use • d) processing, both inward and outward
Problems monitoring the 90 days between STS holders he challenge for STS holders, but also for Customs in the context of their supervisory function, is to monitor the 90 days throughout the chain. In a simple example of when only one transfer between STS holders takes place with goods from outside the Union that have already had temporary storage status for 10 days. These goods may be held by the new STS holder in temporary storage for a maximum of 80 days. It is therefore important that the period of storage that has already elapsed is made known to the next STS holder in order that the remaining allowable period can be monitored as part of their internal process.
T
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As the starting date of goods being held in temporary storage is not shared in the chain, it can be chal-
lenging, especially for subsequent STS holders, to correctly monitor the maximum period of 90 days temporary storage. Last but not least, Customs also lacks a full overview of the timely termination of the temporary storage of goods that have been brought in. For this reason, many STS holders experience Customs undertaking regular inventory checks. For each individual shipment, Customs must work backwards to check that the 90-days period has not been exceeded. This is very laborious for all parties involved and it is for this (and other) reasons that work is currently being undertaken to redesign the DGVS (paperless cargo tracking system) with respect to air cargo. Unlocking information for market partners I often wonder if it could be simpler and if Customs themselves should
Does unlocking the initial STS date offer a solution? Suppose the starting date for goods in temporary storage is shared with a successive STS holder in the form of an “initial STS date”, for example, on a transfer document or by electronic message. This gives the individual STS holder the opportunity of entering this date field into his own warehouse management system therefore allowing the application to calculate the number of temporary storage days remaining. For example Initial STS date : 10-05-2018 Remaining storage : 85 days Customs regime : STS By using a code to indicate the regime, the STS holder can use his own warehouse management system to compile a stock list of shipments showing actual STS stock. The warehouse management system could subsequently assist the STS holder even further if the regime code
were to be automatically changed, for instance, to PCW (public customs warehouse) storage at, ultimately, 89 days. Keeping track manually on individual Excel sheets or relying upon an external environment such as a DGVS platform, would, for this particular issue, become things of the past. In my view, having your own internal process management in order, preferably in an automated way, remains an important principle. Automating Customs’ role with regard to unlocking information If we dream on, it could be even better and simpler ….
As the European Commission’s website indicates, Customs could make a database available allowing the initial STS date to be checked by entering an airwaybill number. If this database could be equipped with an application programming interface (API), then communication would be possible with the STS holder’s warehouse management system and the initial STS date automatically plucked from the web. STS within a European framework With an eye on cross-border STS locations and the possibility of being able to make cross-border declarations, it would not surprise me if such a solution could lead to sharing of the initial
‘Will Customs finally take the initiative to provide a system that individual market parties can connect to?’ In every instance, Customs holds information relating to the declaration for temporary storage (TSD) allowing goods from outside the Union to enter. (This information being part of the entry process airlines must fulfill).
STS date via a central European Commission database. This would allow, in a simple way, every STS holder to be able to meet his obligations regardless of his actual geographic location.
Raoul Paul E: raoul.paul@cargohub.nl See also: http://cargomagazine.nl/ blog/problematiek-overdrachtentussen-rto-houders-voor-goederenin-tijdelijke-opslag
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QUALITY & AEO CUSTOMS COMPLIANCE PLATFORM
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AEO re-assessment, mission impossible? Or maybe not?
As a result of the Union Customs Code (UCC) coming into force, all customs authorisations must be re-assessed by 1 May 2019 at the latest. Customs has therefore less than a year to undertake the re-assessments and there is no legal possibility of extending this period. The Netherlands Customs has chosen an integrated approach, i.e. Customs will in principle re-assess all authorisations in one go. Besides the fact that the AEO (Authorised Economic Operator) has now become an authorisation (it had been a certificate under the legislation prior to 1 May 2016), the bar has been raised for companies needing to meet AEO requirements. Stricter criteria Many companies will find the re-assessment demanding. This is due to the requirements set down in the UCC for eligibility for customs simplification. In order to obtain customs simplification, companies must meet certain AEO criteria or, at least, their equivalent. In many cases it has therefore become necessary to design processes based on stricter AEO requirements.
It need not involve very complicated measures. An example: when performing internal controls an error repeatedly made by a particular clearing agent is discovered. Mitigating action could be that this clearing agent be given additional training on the specific subject. For example, a refresher course on tariffs, valuations or origin. It is important that both the findings and the measures subsequently taken are recorded so as that these can be taken into account at the re-assessment.
Industry Organisation
Stefan Verhagen Policy Advisor Customs Affairs FENEX
‘AEO is, in many cases, a must have’ Finally, please note that there are various software suppliers around who could help with this. Such software can help you conduct and document audits, procedures and internal control measures.
Since the UCC came into force there is also a new requirement for practical competence. The so-called ‘5th requirement’. An AEO is required to have enough qualified personnel and they must have been trained to a satisfactory level. Design, existence and operation of the organisation’s administration Another difference between the re-assessment and the initial granting of the AEO is that, when granting AEO status, Customs had evaluated the design and existence of the organisation’s administration, the internal processes and procedures and the internal controls on these. Upon re-assessment their actual operations will also be looked at. Customs will request monitoring reports as well as details of measures taken to avoid identified irregularities re-occurring in the future. Regrettably, according to Customs, this is often lacking. Companies document their procedures and implemented control measures but the operation of these measures is often poorly controlled and acted upon.
Stefan Verhagen Policy Advisor Customs Affairs FENEX-TLN Team Logistics & Forwarding
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Clearing Agents
Guus de Goeij
‘Impending shortage of clearing agents is worrying’ “Clearing agents? Aren’t they the boring, strict people who are always the delaying factor when a shipment must leave? Guus de Goeij knows only too well what people think of this profession. For years he was himself a customs clearing agent and now as a lecturer he still conveys his passion for the profession. And this is certainly necessary as there threatens to be a serious shortage of these professionals. “So let’s clear away the misunderstanding that it is a boring trade; it is actually very interesting and varied”.
Text Anita Schregardus
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I
n 1978 Guus de Goeij began as a clearing agent at a small forwarder at Schiphol. He wistfully thinks back to the time when documents were produced with a typewriter and carbon paper and he would walk to pick up and drop off paperwork.
“Security was not up to much and you could occasionally cut a corner and walk over the platform”, he laughs. In the 1980s – the Golden Age of air cargo – De Goeij became interested in the customs clearing profession. For two years he studied one evening
each week and obtained his trade diploma at the Oram in Amsterdam. Develop specific courses We are now quite some years further and Guus de Goeij is no longer a clearing agent. He works with Gerlach & Co. BV as Business Development Manager Customs & Trade Compliance and lectures at TLN Fenex. De Goeij gives introductory courses on customs and trade compliance awareness. “As I can share real stories and experience from the field, I can spark the interest of students in the field of customs clearing agents. It is a discipline that is ‘in full swing’ and developing.” The former clearing agent advises that there are initiatives at varying levels to put the profession on the map. “Various schools have plans to develop specific courses and also within the EU there are calls for a recognised diploma to be made compulsory for clearing agents. Moreover, we cannot wait long for these developments. If we wait too long, we will have a real problem in a few years’ time. There is significant ageing within the profession and far too few young people are choosing the profession.” Significant fines While there is a threat of a shortage of clearing agents, De Goeij sees the requirement for well-trained professionals actually increasing. “This has to do with various geo-political developments”, he explains. “Think about Brexit, the looming trade war between Europe and the US and Trump’s decision to step away from the Iran Agreement.” Concerning this last development, De Goeij emphasises that business should not take the possible consequences lightly. In some cases, they could be faced with American legislation that is stricter in this area than the European. “They could not only be facing a serious fine but directors and management could
run the risk of a prison sentence. Every reason therefore for businesses to ensure they acquire sufficient inhouse knowledge!”
‘Compliance is not something you can do as a sideline’ AEO Certification De Goeij is also following with interest the developments around AEO certification (Authorised Economic Operator). He says that the Netherlands leads the way in the number of AEO certified companies but that, with changing European regulations, the certificate’s requirements are becoming stricter. “You can’t lean back once you have obtained the paper and may use the logo. A company must have both the people and tools available to be able to meet the strict requirements. Compliance is not something you can do as a sideline!”
More audits De Goeij notes that companies are not always satisfied with the situation around AEO certification. “The certificate should help companies with their international trade; the idea was that Customs would focus checks on companies without AEO status. The feeling, however, prevails with the AEO certified companies that they are actually being checked more often.” De Goeij attributes the growing number of checks on, amongst other things, capacity problems at Customs. There have been considerable cutbacks and many experienced Customs staff opted to make use of the governments’ separation scheme. Checks of AEO certified companies are “easier” to undertake. Certified companies that do not have everything in order are being confronted with extra checks as part of the re-evaluation. Testing your own meat De Goeij: “It is important to both apply and safeguard a good compliance program within an organisation.
In this way you avoid delays in the logistical process arising from extra checks. A compliance program must be regularly audited by an external party. A butcher may not inspect his own meat! In this way we can increase confidence - the basis of the AEO. I believe that this is the only way to reduce the number of checks; Customs must also have confidence in the management of procedures and processes. We really must do this together because we all stand to benefit.”
PMT is uw partner op het gebied van: • Opleidingen • Controle van Luchtvracht • Beveiliging • Advisering inzake Nederlandse Luchtvaartwet Kijk voor meer informatie op onze website www.cargosecurity.nl of neem contact op via info@cargosecurity.nl Advertentie 190x136 mm.indd 1
18-12-12 14:34
Education
New Bachelor course benefits business and Customs There is no shortage of highly educated people willing to work at Customs or in cross-border logistics. The current HBO (higher professional education) however does not offer employers precisely what they need. This is changing with a four-year part time Customs & Trade Compliance course within the Logistics Management curriculum at Fontys University of Applied Sciences, Venlo. This will prepare students to be definitive customs professionals.
Hans Aarts (left) and Frank Heijmann
“T
his Bachelor’s program addresses a clear need – not only for business but also within Customs”, says Frank Heijmann, Head, Commercial Relations of the Netherlands Customs. “We like to see well educated employees entering our service. Normally we prefer to select recruits ourselves. We have brought in graduates from various disciplines in this way. However, even at their level, they cannot start working until they have followed the internal ‘F’ course. This means sitting in class for a further two years even though they already have a HBO degree. Obviously this is not very efficient. And we had only a few
qualified academics. Plus the internal course is not accredited. Internally trained ‘F’ers’ who wish to grow to an academic level suffer due to the fact that the Bachelor degree is not officially recognised.”
September the third year began with nine Netherlands customs employees plus a few colleagues from Belgium, Ireland, Turkey and China. The other half of the participants came from the international business world.”
Fully-fledged course When the Rotterdam School of Management started its Master’s in 2014 this was a first step towards offering external education adapted to the demand for customs professionals. Heijmann: “That year 18 students started, over half of them worked for our service. It is great to see that each year the composition is becoming more diverse. Last
The Master’s study, however, is not for everyone. With the Bachelor – which is expected to start this year – there is now an additional conventional, publicly financed course. “It is a fully-fledged course, open to anyone qualified to follow HBO education”, says Heijmann. “And the best thing is: this accredited course stimulates the functional mobility of employees.”
Text Frank Heijmann en Hans Aarts
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Detachering & Consultancy
www.customsconsult.nl
De douane consultant die passende oplossingen biedt! European Customs Consult (ECC) is een detacheringsbureau dat gespecialiseerd is in het detacheren van douanedeclaranten en consultants. Al het personeel is ervaren en op korte termijn inzetbaar op diverse klantlocaties. Op tijdelijke basis, of juist voor een vaste invulling. Daarnaast verzorgen we oplossingen voor diverse douanevraagstukken en zorgen we ervoor dat de douanedocumenten van onze opdrachtgevers op orde zijn. Sven Lagerweij • Director • sven@customsconsult.nl • +31(0)6 39 21 10 78
De declaranten van European Customs Consult bieden extra ondersteuning bij afwezigheid van uw eigen personeel, of om piekperiodes in uw organisatie op te vangen. De consultants adviseren u bij ingewikkelde douanevraagstukken of bij de aanvraag van uw vergunningen. We werken met een grenzeloos enthousiast en specialistisch team wat elke dag alles op alles zet om het maximale resultaat voor onze opdrachtgevers te behalen. Madelon Popa • Sales director • madelon@customsconsult.nl • +31(0)6 42 41 83 70
European Customs Clearance uw douane-agentschap voor al uw documenten! Wij verzorgen de douanedocumenten voor uw bedrijf volgens de laatste EU en AEO normen, zoals: - Opmaak import- en exportdocumenten - Documenten voor douanevervoer (T1) en het afmelden daarvan - Opmaken van oorsprongsdocumenten - Fiscale vertegenwoordiging (Beperkt of Algemeen) - PD en VWA aangiftes (PB, KCB, NVWA) Tevens kunnen wij uw AEO vergunning aanvragen. Hierbij kunnen we ook ondersteunen bij het schrijven van uw werkinstructies. Sander de Valck • Office manager • sander@customsclearance.nl • +31(0)6 81 61 51 43
Door aanscherping van de nieuwe DWU eisen voor de gecertificeerde AEO ondernemingen zal er door de douane een herbeoordeling worden uitgevoerd voor mei 2019. Customs compliant zijn en blijven is een must bij het verkrijgen van een AEO status. Een AEO status biedt mogelijkheden om vereenvoudigde procedures toe te passen waardoor een onderneming met AEO status altijd een stap voor is op de onderneming zonder AEO status. Wij helpen uw organisatie en medewerkers op weg om compliant te worden en geven hulpmiddelen om compliant te blijven. Corné Mouwen • Compliance manager • corne@customsconsult.nl • +31(0)6 40 18 62 19
Douane software & Expertise
www.ecconline.nl
Om kosten te besparen is het raadzaam om douaneprocessen op een zo efficiënt mogelijke manier te laten verlopen. Echter worden door de eisen van gezondheid, milieu, veiligheid en fiscaliteit de aangifteprocessen juist steeds ingewikkelder. De manier om dit aan te pakken is gebruik maken van gespecialiseerde douanesoftware in combinatie met de dienstverlening die hierbij hoort. Daarnaast biedt ECC Online u ook open toegang aan tot het verkrijgen van kennis van haar specialisten en declaranten. Op deze manier kunt u uw huidige douanekennis binnen uw bedrijf aanvullen met de brede douanekennis die ECC Online u kan aanbieden. Peter Mol • Project manager • peter@ecconline.nl • +31(0)6 18 25 25 21. Heeft u vragen neem dan contact op met ECC. Ons team van specialisten staat voor u klaar om uw vragen te beantwoorden.
Employee of the future Common denominators had to be sought for the substantive content of the Bachelor’s. Heijmann: “What does the market need? What kind of employee will be needed in the future? With the support of Topsector Logistiek, Fontys Venlo together with industry organisation TLN/FENEX, evofenedex and Customs drew up a blueprint for the course. This rests on three pillars. Besides Customs legislation and related processes, these are compliance and supply chain management.”
‘It is a fully-fledged course, open to anyone qualified to follow HBO education’ The cooperation with the University is not new, according to Heijmann. “In 2015 third year HBO students following Logistics and Economy were given the option of an elective subject focusing on customs management and trade compliance. We contributed at the time to this minor and we are doing so again now. In the first place we collaborated on the curriculum. Secondly, experts from the Customs training centre tested the curriculum: does it respond to the demands that will be put on customs professionals in the future? At a later stage our employees will need different competencies and therefore we really need this new training course – it must be more than just a copy of our internal ‘F’ course. Thirdly, Customs has made a trainer available long term to Fontys for two days a week. He will ensure a good link to Customs practice. Finally, we will, just as with the Master’s course, delegate students to the Bachelor’s. Customs has already selected ten candidates; all are employees on a career development program. We are hoping of course that business will also supply a similar number of students.” “There are of course other Universities that could teach this subject”, Heijmann continues. “But Fontys Venlo distinguishes itself by having customs as one of the priority themes in their KennisDC Logistiek (Logistics
Knowledge Distribution Centre). This offers an innovative online environment combining all sorts of logistic and customs processes knowledge. We are pleased with the choice for Fontys.” Security and compliance The new course has, as well as the professional and educational profile Logistics, also the European Competence Framework for Customs Professionals as a base. Hans Aarts, Director of Fontys University of Technology and Logistics: “Customs are helping us satisfy the requirements of this framework. The Bachelor primarily concentrates on Customs law and business compliance. Companies are looking for personnel to add value in the areas of security and compliance. We can anticipate this with this course. To give an example: many containers that arrive in the port of Rotterdam go further inland unopened. The clearance of these containers is not a task that Customs per se needs to assume – certified companies can do it themselves. But not every company is aware of this.” Heijmann adds: “Customs will be facing various new challenges in coming years. One of these is Brexit that will bring a new dynamic. We need expert knowledge within our organisation in order to allow smooth implementation of modern processes. It is surely our task, as far as is possible, to remove unpredictability from the logistics chain.”
“Just as with the minor, it is not only our lecturers who will stand in front of the class but also professionals from the business world”, Aarts concludes. “By doing this you keep in touch with society and can also make use of actual cases in professional practice. The minor has been a success up to now. It is an optional subject for third year students but we have also made it available to external participants. Several students were hard-to-place unemployed people aged about 50 who came from the UWV Employment Insurance Agency’s records. Upon completing the course, they swiftly started employment with logistic service providers here in the region. This is also partially thanks to Customs. Without the customs service, we would never have got our minor course off the ground. And this would then, of course, never have been followed by this Bachelor’s.” For more information about this course, please contact Merten Koolen via m.koolen@fontys.nl
In touch with society “In recent months, together with Customs, we have held information sessions for interested parties”, Aarts says. “In the first year of the pilot we will start with about 15 students. Thereafter we would like to continue to grow to a few dozen students per year”.
Study load Similar to other Bachelor courses, this course takes four years. Students will need to study approximately thirty hours each week. It is anticipated that students will come together every two weeks for either an afternoon or evening of traditional education, undertake
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Legal
Mr. Roelof Andringa Andringa Caljé Advocaten B.V.
Reverse-charging VAT on e-commerce shipments
Telephone call from Customs “the reverse-charging of the value added tax on imports has possibly been incorrectly applied”. An audit will be undertaken shortly. Not a pleasant message to receive but one that is happening regularly these days as logistics service providers face problems due to the incorrect application of reverse-charging on imports, in particular with e-commerce shipments. In this short article, I will indicate what, from our experience, goes wrong and what logistics service providers should be aware of. Introduction Imports of e-commerce goods are gaining an important place in the total flow of goods to Europe. In particular products from Asian vendors trading via platforms such as Amazon and Ebay and selling direct to European consumers. The clearance of such shipments is often difficult given the wide variety of products and because frequently the sales price is not (or not yet) available at the time of importation, and also due to the (too) many claims seeking exemption for low value shipments (€22 for VAT and €150 for import duty). Clearing e-commerce shipments in the correct way is in itself a challenge.
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The e-commerce traders themselves also struggle to comply with their VAT obligations. This can be seen from the many reports on the “E-commerce VAT gap”. The European Commission has signaled the practical, as well as the less practical, problems relating to the obligations for e-commerce value added tax and customs and has recently made a number of proposals, on the one hand, to make it easier for foreign companies to make declarations and, on the other hand, to make the trading platforms partly liable for the VAT on sales via
their platforms. More on this can be found on the website of the European Commission but what I would like to touch on in this article is separate from this and concerns the reversecharging of VAT on imports. Typical mistakes Reverse-charging of VAT on imports means that the VAT due upon importation is not required to be paid directly upon importation but it can be included on the importer’s periodic value added tax return or that of his limited tax representative. As import VAT may also be included as a deduction on the same return, this results on balance in no import VAT having to be paid. As far as I can see, vendors outside the EU are aware that in the Netherlands there are opportunities not to have to pay import VAT and logistics service providers are letting themselves be coaxed into applying reverse-charging without fully complying with all of the legal requirements. From our experience it appears that there are four types of errors or mistakes being made. 1. Only the import is being declared A logistics service provider acts as a limited tax representative and charges the import VAT to his own value added tax return under his B.02 number. This return should not only declare the importation of the goods but the subsequent delivery of the goods must also be declared. This could be a delivery in the Netherlands, an intra-community transfer or possibly re-export. Dependent upon what happens with the shipment, the logistics service provider has to declare something. However, if the logistics service provider forgets to declare the subsequent delivery or does not have information available to declare the subsequent delivery then the Taxation Authority will assume that it had been delivered within the Netherlands and will retrospectively assess 21% VAT. In principle VAT is recovered from the vendor but, on the grounds of article 24c of the Implementation Decision, the limited tax representative is seen as partly liable for the incurred value added tax
and therefore the limited tax representative runs the risk of ultimately having to pay the VAT. 2. ‘Hijacked’ VAT number for the subsequent delivery What also occurs is that, although a subsequent delivery is declared, a VAT number has been used that was issued in a country (e.g. UK) other than that where the goods are being sent (e.g. DE), or possibly one from a ghost company or even from a random company from which the VAT number has simply been ‘hijacked’. In all these cases, the Taxation Authority will assume that the delivery took place within the Netherlands and will retrospectively charge 21% for which the logistics service provider is partly liable. 3. Reverse-charging only for the person to whom the goods are destined On the grounds of Article 23 Wet OB (Value Added Tax Law) import VAT can only be reverse-charged to the person to whom the goods are destined. “Destined for” is a difficult concept – not least for ourselves – and over which there is frequent litigation but usually it is the owner of the goods at the time of importation. If the logistics service provider acts as a limited tax representative for a person or company that is not the owner of the goods (such as, for example, a consolidator) then reverse-charging is not applicable and Customs may seek recovery from the customs agent or the direct representative. 4. Establishing a purchasing company To finish, I understand that some logistics service providers have established separate companies to act as the purchasers of goods. In my opinion, this risks the Taxation Authority Customs disregarding a purchase on the grounds that there is the possibility of a sham transaction. If indeed there is question of an improper transaction then Customs can recover the 21% VAT relating to the import and the Taxation Authority may subsequently reject deductions for import VAT because goods are not destined for this company.
How to do it Looked at in this light, it can seem that, with all the new legislation, applying the reverse-charging rules for import is a minefield and maybe this is the case. However, I do feel that the reverse-charging regulation is a very valuable simplification for the Netherlands business world and the regulation works well as long as logistics service providers are aware of their accountability for these pitfalls and are discerning when applying the regulation. Of course, we are more than willing to work this through with you and to answer your specific questions on this subject.
E: andringa@douane-advocaat.com T: + 31 (0)10 3070 171
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China
China, a fascinating perspective of the economy and logistics The Business Research Centre of the InHolland University of Applied Sciences sees developments in China having an important impact on our economy. Giovanni Douven, lecturer-researcher at InHolland, was recently a speaker and participant at an international logistics congress in the city of Zhengzhou in Henan Province. In this article Giovanni discusses, in general, economic and logistical aspects of China and, in particular, Henan Province.
Giovanni Douven Text Giovanni Douven
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Logistics infrastructure hina has a surface area of 9.6 million square kilometres compared to the EU’s 4.4 million square km. The rail network is just about comparable at 125,000 km of track but the road network differs enormously: China’s road network totals 130,000 km whilst the European Union has 7 million km. There are 2,347 airports in the EU while China has only 507. Daxing Airport (67 km from Beijing and planned to be operational from 2019) is being equipped to handle more than 100 million passengers. Beijing Capital Airport, Hong Kong and Shanghai, with respectively 93, 70 and 66 million passengers, are China’s largest airports. London and Paris, with 75 and 66 million passengers, are comparable to Hong Kong and Shanghai.
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Trade better in balance In 2017 Chinese GDP was almost 44 times larger than it was in 1990. China’s share of the total income from global trade is over 25%. There are more and more signals that China is changing to becoming an importing state whilst at the same time retaining its export interests. Chinese exports shrank in March 2018 by 2.7% while imports in the same month rose by 14%. China had, therefore, a trade deficit of US$5 billion in March. In February this had been a surplus of over US$33 billion. In the first quarter of 2018 exports rose by 14.1% whilst imports increased by nearly 20%. This still resulted in a quarterly trade surplus of US$48.4 billion. However, when compared with previous years, it showed a considerable shrinkage: in the first quarter of 2017 the
surplus had been US$65 billion and in 2016 US$110 billion. Driving consumption China with more than 1.4 billion people (Europe 515 million) is the world’s most populous country. The average number of inhabitants per square kilometer in China is 144, somewhat comparable to the EU’s 115 inhabitants per square km. Of the 1.4 billion people, the middle class is becoming increasingly affluent and consequently their consumption needs are increasing. China’s share of total worldwide online sales of $18.5 billion is 37% ($6.8 billion) and this is likely to continue to increase. The Chinese appreciate internationally renowned (luxury) brands and the population has an increasing requirement for raw materials, minerals, connectivity and food. In 2030 it is anticipated that China will have seven mega cities (Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Tianjin and Chengdu) in the world’s top 40 most populous cities, each with a population of between 10 to 25 million people.
International trade ambitions China is increasingly investing in the ‘underserved’ regions of the world. Important partnerships are being forged in areas that have lagged behind in economic development. A few forward-looking programs have been announced with interested partners, such as: • The 16+1 Program in which China and 16 East European countries
(from Estonia to Albania/Bulgaria) are pursuing far-reaching cooperation in areas of agriculture, infrastructure, logistics, technology and forestry. • The Belt & Road Initiative that connects Europe, Central Asia and South East Asia with improved, extensive rail connections. • China-Africa: many investments in the oil, minerals, agricultural and production-related industries. • The 21st century Maritime Silk Route concentrating on the South Asian region and the Middle East. China is investing substantially in infrastructural projects with nearby countries such as Sri Lanka, Myanmar, Pakistan and Iran.
Central control China is shifting from a planned economy closer towards a market economy. To a large degree China is a central, state-controlled society and, at this time, for the economy this appears to be a welcome form of government. The free market in the West is often driven by a pursuit of profit and striving for prosperity. Research into the circular economy indicates that we in the West really want an impartial central coordinating body to achieve greater efficiency and effectiveness in and between logistic chains. China’s form of government seems, therefore, to be better positioned with regard to the economy. Resounding initiatives Economic progress in China is being created with good (logistical) initiatives. There are plenty of good examples: hypermodern buildings, modern agglomerates, high speed trains, the
Maritime Silk Road and, last but not least, China’s ‘own’ digital landscape. China does not use Google but Baidu, no Amazon but Alibaba, no WhatsApp but WeChat and almost every Chinese person makes payments using his mobile telephone. These digital developments are forward-looking and are contributing to economic prosperity. Chinese companies and the people benefit and direct dependence on the West remains limited. Important disadvantages of this success, however, are pollution and a diminishing sense of freedom. Henan Province Henan Province is China’s manufacturing plant and is well positioned to
support the Beijing region. Henan has grown into the production plant of the world. Currently this province generates 1/3 of China’s national income. Capital Zhengzhou’s airport has grown in five years into a world-ranking airport with 25 million passengers and 502,000 tonnes of cargo (in 2012: 11.6 million passengers and
151,000 tonnes cargo). Zara (clothing), Apple and Lenovo (electronics) have all chosen to have manufacturing undertaken here. The ‘Belt & Road Initiative’ and the ‘Aerial Silk Road’ were initiated and agreed here.
China does not use Google but Baidu, no Amazon but Alibaba, no WhatsApp but WeChat One of the first partners was Cargolux. This company has made Zhengzhou its Asian headquarters and currently has 34 flights per week. All this growth, of course, puts pressure on the logistical supply and waste disposal systems and related infrastructure (road, train and air). The railway network of Zhengzhou integrates well with the new Silk Route from Chongqing to Duisburg. And, furthermore, the city is at the very heart of China’s 7,000 km high-speed train network.
Further information on the conference and the related presentations is available from giovanni.douven@inholland.nl, T: +31 (0) 6 1527 9873.
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Forwarding made e-zy No double input, no trouble output. Riege Software is a leading provider of cloud-based software solutions for the cargo industry. The privately-owned company provides Scope, the Transport Management System for Air Freight, Sea Freight and Customs to more than 350 customers worldwide with over 5,000 users in 34 countries. With an unrivaled one-entry-of-data concept, Scope accelerates all logistic procedures and makes forwarding real e-zy.
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When one thinks of urgent shipments in many cases one automatically thinks of airfreight. But what if, for example, an assembly line for cars in Mexico risks grinding to a halt due to a stock shortage of a specific part and the automotive spare parts must come, say, from the Far East within 36 hours? You can imagine what the (financial) consequences would be for both the supplier and the relevant car brand when a production line falls still.
Sander van Woesik
I
n most cases airfreight is then just not fast enough. It is therefore good to know that Wings BV, a neutral provider of onboard courier services, can offer an ‘emergency solution’ to a forwarder. The company, located in Hoofddorp, ensures that time critical goods are personally delivered to the place of destination within the agreed delivery time frame by an onboard courier (OBC). Wings, under the committed leadership of Sander van Woesik, focuses primarily on freight forwarders with networks in industries such as aerospace, automotive and the oil & gas sector. Industries that regularly need time critical products. Agents are enthusiastic about Wings’ neutrality but most especially the fact that Wings always puts the interests of the forwarder first. “Our strength does not really lie in our worldwide network – we have over 1,900 OBCs in 125 countries – but primarily in our expertise with customs declarations”, Sander says. “Everyone can do a ‘hand carry’ from A to B. We are well aware of that. What sets Wings apart is our specific knowledge of customs rules in the most diverse countries and the way in which declarations must be done. Furthermore our couriers are properly insured throughout the whole assignment.
Martijn van Duyvenvoorde
Regularly we hear that someone has been sent, a member of staff or acquaintance, but are they covered by insurance? If a forwarder so requests, we can also arrange transport insurance at shipment level.”
‘Any origin, any destination, we serve the globe’! The OBCs Wings uses are all equipped with the correct documentation and visa. Within 15 to 30 minutes of a request coming in, the Customer Service team responds. The team can be reached 24/7/365. Within 45 min-
utes of the customer’s confirmation the OBC is already en route to pick up the goods. Using a special, in-house developed app, the OBC keeps the customer up to date on his location and the status of the shipment. The tracking and tracing details are also very accurate (real time). For sales, Wings onboard works with reputable GSAs worldwide; in the Netherlands this is Air Logistics. Martijn van Duyvenvoorde, Managing Director of the GSA says: “As well as airfreight shipments, our customers often have urgent shipments for which airfreight is just not fast enough. Think here of crucial machine spare parts for the automotive, aerospace or oil & gas industries. For these specific shipments Wings is the most outstanding partner.”
Time critical
Fast, faster… Wings!
Text Esther Kort-Boreas Photography Air Logistics, Wings
For the requests for such urgent shipments every country or region has a dedicated email address. Sander: “Wherever you are in the world, when you look on our website for a sales office, based on your IP address you receive the details of the correct office on your screen. I would like to emphasise that Wings not only organises an OBC from and to the Netherlands but in principle: ‘Any origin, any destination, we serve the globe’! Even if, for example, a Dutch forwarder requests an OBC from Seattle to Izmir, Wings can offer a solution.”
24/7 OBC Desk: E: obc-ams@airlogisticsgroup.com T: +31 (0)23-5543 408 T. office hours: +31 (0)20-6484 861 www.wings-onboard.com
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Data Analytics
Gerwin Zomer Senior Business Consultant & Programma Lead Datagedreven Logistiek at TNO gerwin.zomer@tno.nl
Digital transformation in logistics: supply chains become demand chains
W
e are in the middle of a digital transformation. Not only is the pile of paperwork in trade and logistics rapidly being digitalised, real-time availability of relevant data is opening the door to a new logistical reality. One in which real-time visibility is a basic need, logistic chains are fully synchronised, waiting times are a thing of the past and just-in-time taken for granted. Technological developments such as IoT, 5G, blockchain and autonomous transport are rapidly bringing the new reality to hand. Where does your organisation stand in these developments? Cheap and easy accessibility of data sources works as a catalyst for the use of data analysis. It is an enormously powerful tool: it makes the air freight chains more predictable and soon we will just not be able to do without it. Logistics is no longer boringly uniform (having been driven by asset optimisation) but is finally becoming truly customised. The individual customer’s requests are central and service providers offer customised tailor-made services: supply chains are finally becoming demand chains! Data and process mining are already being used in aviation. Based on profiling and web surfing behaviour, booking sites consider readiness to pay and decide at what price they should offer a seat: yield management! As long as there is sufficient competition, there is nothing wrong in considering the value to the consumer.
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Ever smarter algorithms Data analysis is already widely applied in sea freight and hinterland transport primarily to increase visibility and to improve predictability. TNO has developed an innovative program for predictive analytics in logistics converting the power of analytics into value creation. Within this program TNO helps companies transform themselves into data-driven organisations. With the help of complex machine learning algorithms (deep learning), a prediction can be made as to when an ocean-going vessel will arrive in Rotterdam.
Amongst other things, this takes into account the position and speed of ships (AIS data), the weather forecast and currents. All these details come from publicly available data sources that can be accessed using a standard interface – an API. The algorithm becomes increasingly smarter and recognises more and more hidden patterns. Logistics already makes good use of artificial intelligence. Even opportunist behaviour by market players does not remain hidden from a self-learning algorithm despite a lack of transparency. In sea freight this concerns matters such as charter and demurrage conditions, bunker prices, quay occupation, booked return cargo percentages and future price developments in traded commodities.
‘The algorithm becomes increasingly smarter and recognises more and more hidden patterns’ Spectacular results Results are impressive: the deep learning ETA scores considerably better than the ETA shipping agents currently share with port authorities, terminal operators, pilots, shippers and forwarders. A ship owner, participating in the TNO program, has been able to bring the reliability of the arrival port ETA issued at the time of departure from the departure port back from 9 hours to 1.5 hours. This has led to slot management agreements with terminal operators and nautical service providers. As soon as arrival prediction is reduced to within one hour, slot management will become within reach of a large group of their customers. This business case is therefore a no-brainer for both the shipping company and the terminal operator.
In another sub-program spectacular results are also being achieved. Transshipment, stacking, inland waterway transport and onward carriage by truck can be seamlessly coordinated with the help of predictive analytics. The lead-time for a container, from the moment of unloading in Rotterdam until receipt in the recipient’s warehouse, can be reduced from ten to four days.
‘From the moment an aircraft lands, enormous profits can be realised by synchronising the handling process, the release to the regulatory authorities, transport to 2nd line warehouses and final distribution to the final customer’ Application in the air cargo chain Air cargo cannot, of course, be compared to sea freight and inland waterway transport. Nevertheless the same principles apply for high value or perishable shipments and predictable logistics and chain synchronization are crucial. End-to-end visibility in air cargo chains is still in its infancy. Booking data is hardly ever used by the handling agent; the forwarder is often unknown and data for export declarations is rarely reused for import declarations. Chain visibility is the low hanging fruit in air cargo chains but higher up the tree is bursting with ripe fruit that can be harvested with data analysis. Whether it is relatively predictable import flows, such as flowers from Kenya or fish from Canada, or more volatile e-commerce flows such as trendy gadgets from China or ad hoc deliveries of critical spare parts from the USA: reliability can be improved significantly using data analysis. Exchange rates, temperature logs, social media trend analyses,
inventories, but also data on disruptions within the chain or in alternate transport chains can help us be able to better anticipate what is coming. Think about predicting how busy a handling agent is going to be, smarter scheduling algorithms, clearance at landing and cross-docking of shipments between the handling agent, 2nd line warehouses and possibly DC’s or distribution centres located further in the hinterland. From the moment an aircraft lands, enormous profits can be realised by synchronising the handling process, the release to the regulatory authorities, transport to 2nd line warehouses and final distribution to the final customer. Sharing data is not bad There is still reluctance and unjustified resistance to taking steps towards a data-driven organisation: sharing data is scary, data-analysts cannot be found and we would be making our operational management vulnerable to cyber attacks if we were to be completely dependent upon artificial intelligence. TNO has a secure concept and experimental data-sharing platform. Self-service analytics software makes data analysis simple and easy to use: you don’t need to be a data scientist. Blockchain applications are making it possible to very easily and securely configure what data may be shared, and with whom, with the help of encryption and authentication software. So, hesitate no longer, discover the value of data for your organisation. We will be more than happy to assist you in this fascinating journey!
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Human interest Ron Blom
An air cargo icon retires In April of this year a period of 44 years employment – of which 42 years in air cargo – came to an end for Ron Blom: he has taken a well-deserved retirement. Cargo Magazine spoke with Ron at the Haarlemmermeersche Golf Club, just before he was to play 9 holes with his mates. A recap.
Text Esther Kort-Boreas Photography Esther Kort- Boreas
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R
on began his career in 1974 at Hoogeboom Security Services at Schiphol after having lived in the United States for a year and a half on a tourist visa. Under the supervision and responsibility of the national police force, he checked hand baggage and undertook searches. At Hoogeboom he met Christine, his rock and anchor for the past 41 years. On 1 April 1976 Ron began employment with Aero Gronddienst (AG) in Cargo Station 4. Air cargo was completely new to him. Ron: “What in
heaven’s name is an airwaybill? There were no computers or photocopiers. There was a “distance writer” a teletype. The older generation will know what that is. Essentially you wrote something on a machine that then rolled out of a machine at the recipient’s. A sort of fax but different. In those days as a handling agent you certainly had a bit of power: the forwarder needed us. The relationship then between airline, handling agent and forwarder has changed dramatically over the years. It was all very easy-going, the checks we know now
did not exist. No one had even heard of Service Level Agreements. If, at the last minute, an extra kilo of freight had to go on board then we pushed it onto the aircraft before the door was closed. You can’t believe it now but it actually happened like that then.” As the world changed, more and more rules, instructions and obligations came into effect. The cargo process shifted: previously it was predominantly about people, now it is all procedures and regulations.
“I do not want to come across as one of those old ‘you-know-whats’ who says “everything was better in the past” but recently I have missed unity within the cargo industry. From “we’ll do it together” to a culture of “everyone for himself”. Problems are no longer seen as something collective: everyone points the finger at each other if something goes wrong rather than seeking a solution together”, Ron aptly says. From racetrack to fast track Ron worked for AG for no less than 23 years. In 1989 the handling agent moved from Cargo Station 4 to 5. This was a huge step especially as they were also moving over to computerised systems. For the trade from Agresco, with its very large flow of vegetables and flowers, a racetrack was built whereby whole pallets could be transported from airside to landside. In 1995 AG uncoupled cargo from passengers and Ron was given the function of Terminal Manager responsible for freighter and platform handling. Three years later Ron was offered a position with rival Cargo Service Centre (CSC). There he was Cargo Manager and joined the management team. This was at the time that CSC, due to a handling technical defect, lost the Martinair flower flights to AviaTrading. The idea of the racetrack was still fresh in Ron’s head and, on the basis of this technology, together with his good friend Arnold Bosch, he developed the first electrically driven fast track which resulted in CSC getting back Martinair’s cargo flights. A nice detail: the fast track is still in operation in Cargo Station 9! When CSC – in the meantime renamed Fr8 – was taken over by Menzies in 2003, Ron left the company. “I don‘t want to dwell on it but a scapegoat was being sought for the declining quality of handling and I received that dubious title.” Trial and error Ron did not let it get him down and decided to take a risk and jumped in at the deep end: together with five partners he established PrimAir. Unfortunately it did not end well; a blowout during a fuelling stop in Cairo finished the company off. Then
Polar Air crossed his path. Polar was growing tumultuously and with no less than 21 flights per week the existing handling agents’ warehouses at Schiphol were too small. At a rapid pace a unique project took place: tents were erected on the platform that were fully fitted out as handling warehouses for the Polar cargo flights. When 49% of the shares moved into the hands of DHL Aviation, Ron wrapped up everything for Polar and, literally, was the last one to close the door at Schiphol. We know the saying “when one door closes, another opens”. That door opened in Leipzig where Ron set up the operation for the DHL flights to
A “people person” What shaped him into being the person he is? “That began with the independence I learnt growing up in a family owning a small business in Amsterdam-Zuid, followed by the period I spent in America as a young adult. The management development program I followed while I was at AG was defining for the way I see and do things. Most important of all were the people around me with whom I have worked closely in a fun and pleasant way, some of whom I can count as part of my circle of friends. I look back on my working life at Schiphol with both a big smile and a small tear; the ‘thread’ will remain for a while because I still thoroughly
‘I do not want to come across as one of those old ‘you-know-whats’ who says “everything was better in the past” but recently I have missed unity within the cargo industry’ be carried out by Polar. On behalf of Polar he lived in Leipzig for two years and welcomed the first wide-body aircraft at the German airport. Once back in the Netherlands, Airbridge Cargo requested Ron be their Branch Manager. It is from the Russian airline that Ron has just bid farewell to his working life and retired after 44 years of Schiphol.
enjoy playing golf with the nicest air cargo golf club: the Tee-birds”, Ron concludes. We say goodbye and, with his trolley and golf bag, he walks to hole 1 …
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IATA
Femke Sickler wins the IATA FACE-UP air cargo career competition On 15 March Femke Sickler (Dutch, 24) who recently graduated cum laude from Delft University of Technology collected the IATA FACE-UP air cargo career (face-up) prize. Her Bachelor’s thesis on KLM’s project, the European Green Fast Lane (EGFL), is innovative and transformative for the industry.
Text Cargo Magazine Photography IATA
IATA FACE-UP air cargo career competition ace-up is a competition organised by the International Air Transport Association (IATA) for recently graduated students to present their theses at the World Cargo Symposium (WCS). The subject of the thesis has to be innovative and transformative for air transport logistics (for example, air cargo, chain management, mobility, IT solutions, etc.). By organising this competition IATA wishes to focus on new energy and ideas for the fast growing air transport industry by arousing the interest of recent graduates for this discipline. An independent jury of three selected three finalists from all the entries received to present their thesis at the WCS before more than 1,200 top industry professionals. After the graduates’ presentations, the 1,200 attendees voted for the candidates via an interactive IATA app. The three finalists who were selected for the first face-up competition held at the 12th WCS in Dallas in 2018 were: Caroline Larisch, Danny Jonker and
F
Femke Sickler. The next competition will take place in 2020. European Green Fast Lane Project The European Green Fast Lane (EGFL) project is an initiative of KLM Cargo to increase quality by means of improved and faster supply chains. Inefficiencies and unpredictable cargo deliveries were characteristic of the old chain. Some of the problems were: late departures from line stations resulted in late and unpredictable deliveries of cargo thus requiring the proverbial “putting out fires” problem solving at Schiphol and eventuating in sub-optimal loading of aircraft. As 80% of KLM Cargo’s freight delivered to Amsterdam from European line stations arrives by truck, it is very important to make the delivery of cargo more reliable. The EFGL, part of the Smart Cargo Mainport Program and supported by the Neutral Logistic Information Platform, is a project wherein major players in the air cargo chain (Cargonaut, KLM Cargo, Kuehne + Nagel, Jan de
Rijk and Swissport) are collaborating to design faster, more reliable supply chains to Schiphol. A comparison was made to the passenger process: if a passenger arrives late for a flight, the flight does not wait for this passenger. If a passenger wants to take a too heavy suitcase with him then he must pay extra. If a passenger does not have a visa then he will be refused entry into a country. Why is it then so different in the cargo world? By the collaboration of the various partners, each party in the chain can, step by step, indicate what is required to deliver the desired results. Femke Sickler’s thesis 24-year old Femke Sickler recently graduated from the Delft University of Technology where she completed a Bachelor’s in Aerospace Engineering. She subsequently undertook a Double Master’s in Technical Management and Mechanical Engineering. Due to the many possibilities for innovation and transformation in the air cargo industry, she chose to research KLM Cargo for both of her graduation projects. Her first graduation project was on the EGFL project. The focus of Femke’s research lay with the trade chain from Denmark to Amsterdam and the line stations
De kandidaten
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Caroline Larisch
Danny Jonker
Femke Sickler
Corporate sustainability initiatives in the fast fashion industry – aspects of consumer awareness.
The average parcel size in e-commerce shipments – a variable in coping with congestion in carrier networks?
Enhancing the cargo value chain for KLM Cargo with regard to the acceptance process, trucking schedule and data communication. An in-depth case study for Denmark-Amsterdam.
Femke Sickler
of Billund and Copenhagen. The first proof-of-concept developed for Frankfurt was not fully applicable for these Danish stations due to different laws and regulations but also because other handling agents with different
out” with any deviations having to be resolved by the line station. The trucking schedule has been redesigned to ‘just-in-time”, so that cargo with the same connection time in Amsterdam is loaded into the one truck and the
‘I would encourage every student interested in air transport to submit his or her thesis in 2020 and to enjoy the WCS. It can open many doors for you!’ working practices operate at the line stations. The knowledge Femke had built up at the Delft University of Technology was used to adapt the EGFL blue print so that this could be implemented by these two stations with the result of 27% higher “on time” arrivals achieved for cargo from Billund and 30% for cargo from Copenhagen. During her research she looked at three aspects: the acceptance process, the trucking schedule and data communication. For KLM’s cargo acceptance process the cargo must first be weighed, measured, checked and all documentation must be in order “first-time-right” before it can be accepted into the KLM network. Indeed “rubbish in=rubbish
arrival time at Schiphol fits in with the departure times of the flights. Lastly data gathering and data communication between the various parties were looked at in order to gain a better insight into the performance of the various chain partners and to eliminate duplicated actions and “putting out fires”. It can be concluded that the EGFL project is an innovative, collaborative project that has led to a win-win end result. The blue print designed by KLM Cargo has resulted in a more efficient chain and is one that is usable for any (air cargo) transport company operating with road transport.
Femke: “It was a unique experience to be able to present at the WCS in Dallas; to be able to observe inspiring and innovative projects throughout the whole week and to meet the top of the industry. I would encourage every student interested in air transport to submit his or her thesis in 2020 and to enjoy the WCS. It can open many doors for you!”
For more information about this project, you can make contact with the Project Manager, Simon Spoor at simon.spoor@klmcargo.com
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Colophon Cargo Media Speenkruid 20 2408 LL Alphen aan den Rijn Magazine Management Esther Kort-Boreas
MEDIA PACK CARGO MAGAZINE
Advertising Email: redactie@cargomagazine.nl Design and layout SD Communicatie, Naaldwijk Photography De Beeldredacteur, Michel ter Wolbeek en PR diverse bedrijven en organisaties Circulation 4000 copies Subscription and address changes Subscription requests or address changes can be sent by email to: redactie@cargomagazine.nl The English version of Cargo Magazine is available online on www.cargomagazine.nl © Cargo Magazine, Summer 2018 No part of this publication may be reproduced and/or published by means of printing, photocopying, film or in any other way whatsoever without the prior permission of the publisher. The publisher shall not be liable for any inaccuracies in this publication and is not responsible for acts by third parties that potentially result from reading this publication.
www.cargomagazine.nl
ABOUT CARGO MAGAZINE Cargo Magazine is distributed completely free of charge amongst professionals within the cargo industry. The 4000 printed magazines in the Dutch language are distributed in the Netherlands and Belgium. The online magazine is in both Dutch and English language and distributed within our international network with over 35000+ business relations.
GEOGRAPHY AND AUDIENCE The printed version mainly Schiphol, Eindhoven, Maastricht, Rotterdam and Amsterdam and Brussels. The Online version is worldwide distributed amongst middle and higher Management cargo industry professionals. (Airlines, Handling agents, Forwarding agents, Road Truckers, Shippers import and export as well as Government and logistic service providers)
SUPPORT AND FREE SUBSCRIPTION Your support in textwriting, advertising, editorial or sharing our magazine within your network is highly appreciated.
Join our next edition or subscribe? Contact: redactie@cargomagazine.nl
PRICELIST 2018 Advertorial Price in Euro Interview 3 page + cover photo 3.950,3 pages 2.250,2 pages 1.950,1 page 1.250,Advertisement Price in Euro 1/4 Page full colour 300,– 1/2 Page full colour 500,– 1 Page full colour 900,– Innerpages 2-3 1.450,1 Page full colour | Backside 1.450,2 Page full colour 1.500,2 page spread 1.950,Insert per title 950,Dimensions and Format 21% VAT not included