Cargo Magazine - Winter 2017 (UK)

EDITION WINTER 2017

ONLINE EDITION

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PRINTED EDITION

TRADE MAGAZINE FOR AND BY THE CARGO INDUSTRY

Alban François

We go the extra smile Glyn Hughes: “Predicting the future of air cargo“

King Willem Alexander opens the Joint Inspection Centre at Schiphol

Steven Polmans: “BRUcargo in full swing” CARGO

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ENGLISH VERSION AVAILABLE ONLINE WWW.CARGOMAGAZINE.NL

De techniek om altijd de juiste mensen te vinden Continuïteit staat voorop in uw bedrijfsproces. Specialisten die uw personeelsbestand tijdelijk komen versterken moeten meteen kunnen meedraaien. Bij LabourLink heeft u altijd de zekerheid van een ervaren kracht. Bekend met de laatste regelgeving in uw branche. Doordat we verder kijken dan Nederland alléén, kunnen we ook voor úw vacature een perfecte oplossing waarborgen. En die perfectie vindt u ook terug in de samenwerking: persoonlijk en professioneel tegelijk. Zó beheerst LabourLink de techniek.

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Contents

Cold storage page 12

A solution for every mobile climate problem Dawsonrentals

From the local baker to the largest pharmaceutical concern in the world. From cooling to -40 to heating to +60 degrees, from a surface area of 6 square metres to over 50 square metres, Dawsonrentals has a suitable and superior solution for every mobile climate problem. Vincent Poll, Sales & Marketing Manager: “If you are looking for quality, attention to detail and service, then you should definitely come to us”.

Innovation page 20

Platform improves the quality of the air cargo product CargoClaims

From 11 to 13 October the 12th IATA Cargo Claims & Loss Prevention Conference (CCLP) was held in Brussels. Raoul Paul of CargoHub spoke with participants about the latest developments in the cargo claims platform. With a fascinating presentation he introduced the audience to the advantages of the worldwide Cargo Claims Platform.

Organizational psychology page 24

Organizational psychological support helps realize a business transformation faster Be Inezpired

Developments in our digital age offer business many possibilities for innovation. At the same time, adaptive capacity demands business and organizations become familiar with new technologies whilst continuing to fulfill the expectations of clients and personnel. Psychosocial development helps to create productive healthy growth and can transform a business.

Security page 32

X-ray screening: batteries not included PMT xray screening

The air transport of (Lithium) batteries is a hot item at the moment. Unfortunately, these can easily combust if they have been designed or assembled incorrectly, or if they have been incorrectly packed or are damaged. Although there are detailed regulations for packing and transporting Lithium batteries, unfortunately many are still being sent whilst not conforming to the statutory regulations.

Airports page 36

Schiphol Cargo Community pursuing Pharmaceuticals Pharma Schiphol

To be able to grow further Amsterdam Airport Schiphol must tap new markets. One aim is to profile itself as the pharmaceutical industry’s European turntable. Jonas van Stekelenburg, Head of Schiphol Group Cargo explains why.

Customs page 48

AEO and Monitoring: Risk or Opportunity?

AEO monitoring

Your company has had an Authorised Economic Operator licence for some years. You will have experienced desk audits and possibly even a field inspection. To complete these successfully, you must show the Customs auditiors that you are in control. You must be seen to be monitoring AEO processes. Most companies see this as a necessary evil. Companies want to focus on core business.

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Foreword

Dreaming together? Achieve it together!

Dear readers, First of all, I wish you all a healthy and successful 2017.

Geert Keirens Director Air Cargo Belgium: “Stronger together at BRUcargo”

Further: Glyn Hughes 7 ACN 8 Air Cargo Belgium 11 Hussein Hachem 14 Dobbe Transport 16 Brussels Airlines Cargo 18 Lithiumbatterijen 23 BRUcargo 26 SACO Airport Equipment 30 Frank Terpstra 35 iSHARE 38 Schiphol SmartGate Cargo 42 Cargonaut 44 Districon 46 Classificatie 50 Antipiraterij 53 Menzies Aviation 54 Jos Nuijten 55 Luchtvrachtvolumes 56 Hogeschool Inholland 58 Frans Vonk 60 Eric Both 61 Yanick Chevalier 62 Short Reports 64 Arjen Odems 65 Dr. W. Dewulf 66 Korte berichten 69

On a dark Friday evening in November 2016 at about 22:00 hours I was ready to go home after a long day. I hadn’t even left the street before I was confronted by a long queue of trucks. They all wanted to get into the premises of the handling agents on the Anchoragelaan. The tailback stretched past “our” new Joint Inspection Centre almost to the Rangoonweg. Where did this tailback come from? It turned out that, due to the handling agents being incredibly busy, trucks could only be let in in dribs and drabs. Some drivers had been waiting for more than four hours.

Although we continue to seek smarter working methods, one process remains unchanged: export cargo is moved physically from landside, via the ground handling agents, to airside and in reverse for import cargo. Is this method of handling still appropriate today?

Schiphol is at capacity with regard to flight movements. Is this perhaps also the case for our air cargo industry? It’s time we reviewed the infrastructure of Schiphol Cargo. We will have to do things differently.

The cargo community must join forces and together seek solutions to the congestion problems we share.

Who knows, is Schiphol ready to open up the cargo perimeter? Should we move to separating cargo at our airport’s “external border” rather than at the ‘front door’? Must import and export loads go through the same 1st line warehouses? I can hear a lot of you thinking: “This man’s dreaming”.

Well, let me be a dreamer. Jan Dellaert once had a dream that was realized and brought Schiphol to what it is today.

I challenge you all to dream together and act together. Combining knowledge and energy to shape a strong cargo community. CargoHub Magazine contributes significantly to our cargo community identity. It demonstrates that we not only dream together but also achieve things together. I’m happy that the industry feels involved and has given the initiators the necessary support in order to realize this latest edition.

On behalf of the editorial staff, I hope you enjoy some great reading!

Inver Gase Managing Director Airfrigo, and ACN Board Member

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Brussels Airport

Biggest number of CEIV pharma certified companies

Biggest concentration of dedicated pharma infrastructure

Controlled temperature through the entire cool chain at the airport

Excellent geographic location for pharma consolidation and storage

The Preferred Pharma Gateway

Predicting the Future for Air Cargo: Where Will the Growth Come from?

F

orecasting is an unpredictable affair these days, for validation we need look no further than the recent Brexit vote and US election. So, with protectionist rhetoric increasing, world trade flat lining and the global economic outlook remaining uncertain one could be forgiven for predicting a tough year for air cargo in 2017. However, in keeping with the recent upset trend, I propose a slightly more optimistic outlook for the industry next year.

While there can be no denying that world trade is flat and the pace of economic growth is subdued, it would be amiss to disregard the growing trend towards e-Commerce. This rapidly expanding industry is on-track to expand by 23.7% this year alone, with sales reaching $1.915 trillion, accounting for 8.7% of total retail spending worldwide.

The world has become a global cyber-store. Customers are ordering more and more online. They want their purchases as soon as possible and are willing to pay extra for the privilege of rapid delivery. As the fastest mode of transport for consumable products, this creates significant opportunities for air cargo in the coming year.

We are starting to see the industry evolve and adapt to the fast-paced, global world of e-commerce and shifting customer demands. Airlines are reviewing their fleet and network development plans in line with evolving market trends. And they’re starting to develop quality-focused, customer-centric, on-demand supply chain solutions that provide enhanced shipping quality and service, greater visibility through the supply chain and better predictability.

Another growth area for air cargo is the transport of timeand temperature-sensitive goods such as pharmaceuticals.

In 2014 this market was estimated to be worth $8.36 billion and it is projected to rise to $10.28 billion by 2018.

But in order for the industry to fully capitalize on the available opportunities, programs such e-freight and e-AWB that promote the development and implementation of end-toend paperless transportation processes must be accelerated.

And real-time interaction needs to be implemented through the next generation of air cargo technology interfaces such as smart data sharing and piece-level tracking.

International guest

Glyn Hughes Head of IATA Cargo

In parallel, to benefit from the full social and economic potential that air cargo can provide, governments need to support the development of the industry through reducing restrictive border tariffs, ratifying international enabling treaties and effective trade policies such as MC99, the revised Kyoto Convention and the WTO Trade Facilitation Agreement (TFA).

While forecasting remains unpredictable it is certain that if air cargo can seize upon the opportunities presented the future is bright.

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Industry Association Text Ben Radstaak

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Technically everything’s possible, let’s work smarter together When I think about air cargo, I see clouds hanging above our polder landscape. Dark clouds due to structural overcapacity, but also here and there a silver lining as once again there is some growth. In my view, these clouds are packed full of information about air cargo shipments from, to and via Schiphol. This information begins, of course, by the source of each shipment: the communication between sender and recipient (think of the purchase order, invoice, packing list). Combined with all the messages from/to the forwarder, airline and trucker, from the moment of booking via the transport order, proof of delivery and all other status information, the cloud is filling up. Add the communications with Customs and the other authorities and you have the complete picture. Unfortunately, in harsh reality, things do not go as smoothly as in my thoughts.

Food for thought … t is not easy to get all the data into the cloud, despite the general agreement to improve ground processes in particular and to speed up sharing of operational information with involved chain partners. The Smart Cargo Mainport Program that started in mid-2016 has a similar goal. In a series of meetings where this was on the agenda, program manager Teunis Steenbeek outlined a whole range of reasons as to why progress is slow with these sorts of initiatives. Liability is a foremost reason for not sharing data.

If you share data that is inaccurate, who pays for the damage incurred by incorrect choices and planning?

In addition, the cost of sharing data itself is an important factor, certainly if the benefit lies elsewhere. Allocating costs and revenue is also a considerable challenge. Varying standards can lead to misunderstandings and confusion between management and the work floor. Nor does possible tension between our own interests and

I

those of the community help promote speedy implementation. Finally, the focus often lies with ‘what’, rather than ‘who’ and ‘how’. Talking too much, for too long, does not help, you really must do something. This is certainly something to think about, although Teunis does point out that his experiences are based mainly around projects in the Rotterdam harbour.

Just do it?

The time-honoured Nike slogan appeals to us in the air cargo area.

With projects such as eLink and the Milkrun, we quickly switched from a pilot scheme to a still somewhat difficult reality. We are sometimes confronted by the complexity of current processes and the related paper-based procedures. Just the large number of different messages makes the process unnecessarily time-consuming.

Important for all innovative endeavours is the realisation that increasingly the same data must be available in the cloud for all relevant and interested

parties. CargoIQ (formerly Cargo2000) has been working for a long time (from the end of the last century) from the premise that all information relating to a shipment should be shared in real time with all involved parties. This is still not the case.

How to move forward?

Other sectors have overtaken us with respect to sharing data and they offer consumers an actual overview of what is for hire, for sale or otherwise what is available. They organise the order and payment at once and are rewarded by quality “stars”. New companies such as Amazon, Airbnb, Booking.com and Uber are frequently cited to underline the need for innovation. Otherwise disruption threatens. How must we react is the big question.

Technically everything’s possible So much comes our way from information technology. Data exchange via the internet is increasingly easy but in the air cargo sector we are still using

prehistoric computer systems and are wrestling with the transition from EDI to XML. ‘Everything must be in the cloud’, we have been both hearing and calling for for years, but how do we get it up and running? Smart is one of those vague terms that you cannot be against but that you cannot really get to grips with. For a few years we have been looking at this in the NLIP program - one of the Top Sector Logistics’ lines of action. NLIP stands for Neutral Logistics Information Platform, but that single platform is still not yet here.

There is an understanding that it is not about just one platform but rather about sharing data with other lines in the chain either directly or via multiple open platforms. Clear agreements must be made over precisely what and with whom. That is, controlled data sharing.

ACN and a few of our members are involved with the development of these agreements. This is happening in the iShare project (of which more can be read elsewhere in this magazine), which is being partially financed by the NLIP. Will we be sharing all data with iShare in the coming years as a basis for access but with perhaps something like a mini blockchain behind each shipment?

Everything on your mobile?

In the meantime things are developing at high speed. We can no longer imagine a world without smart phones and other ways of communicating in real time. KLM top man Pieter Elbers at the Autumn meeting of the Dutch Aviation Group in Noordwijk, said “Everything is going mobile, China is leading the way. Desktop investments will end”.

This process is being accelerated by the younger generations. Millenials are used to, and feel comfortable in, the online environment.

More transparency for a ‘better online customer experience’ We have been hearing for years that the shippers want more transparency, at least some of them. But, according to the forwarders I hear from, many air cargo customers want to be unburdened. Their shipments are often unplanned and as it were ‘drop out of the blue’. But even then information is unavoidable in order to be able to quickly shift and make optimal use of the available transport capacity. For advanced forms of chain management, digitalisation is necessary. This was

forecast at the end of the 1990’s, but we are still not good at it. It is now high time for us to move forward in metres rather than millimetres.

Is ‘online forwarding’ the answer?

In Logistiek.nl there was recently an interesting conclusion from a white paper from Drewry Supply Chain advisors: “Forwarders are facing great opportunities but also threats from disruptive new e-business models and innovative online platforms. The new players are winning popularity and are changing the way in which companies are buying ocean freight and handling.

Online forwarding, the cargo equivalent of Expedia or Booking.com, is growing quickly because shippers want a more ‘agile supply chain’ that connects to the dynamic ‘on demand’ economy, with shorter contracts and flexibility. For logistical service providers, the way to a better online customer experience is for them to make a difference and optimise costs”. New ‘online forwarders’ are, of course, anticipating this.

Flexport’s website: “Manage all your company’s global freight shipments through a simple online dashboard.

Your dedicated team of customs brokers and logistics experts will manage the movement of your goods from end-to-end”.

Quicargo, another newcomer, aims itself at ‘empty trips’: “We only do b2b and domestic transports, but offer an end-to-end solution which means that we also do the financial processing, monitor the payment and arrange insurance. Payment is per transaction, a 10% fee from the supplier and 10% from the requesting party”, said founder Trabelsi in Logistiek.nl.

What is ACN doing?

Air Cargo Netherlands was not set up to be disruptive. On the contrary some feel that an industry association should defend positions built up over time.

I agree with both statements. True innovations must be left to the market, especially when they are disruptive and can threaten the profitability or even the survival of existing market players. On the other side, companies can sell themselves short if they respond too defensively to proposals to improve the chain. It is not possible without pain. Avoiding unnecessary activities (such as manually checking paper documents) or avoidable interim storage (due to the absence of

adequate information and poor planning) means that more attention can be paid to the diverse wishes of our customers and to improving quality and efficiency. And rightly so, the market must do its job.

Making working smarter together possible Assisting with changes in the chain and monitoring the government is certainly our task, even our core activity. Not by forcing different ways of working, but by conviction and encouragement.

That is the central thread through ACN’s projects. This is why we support international initiatives such as eFreight and CargoIQ, interpreting these where possible to the local air cargo industry.

Digital information helps not only with eliminating irritations such as increasingly lengthy waiting times at the handling agents but also with compliance. Working smarter is an important incentive for projects such as eLink (more transparency, no longer having to visit the counter), the Milkrun (faster, better loading, fewer trucks and less CO2 emissions). We will continue along this way in 2017, together with other frontrunners in projects and programs such as SmartGate, NLIP and Smart Cargo Mainport. You can depend on us!

ACN Flamingoweg 13 1118 EE Schiphol Phone: +31 (0)20-3163940 Fax: +31(0)20-3163949 info@acn.nl www.acn.nl

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es i r t n u o C 8 2 es c ffi 36 O le p o e 180 P

M A E 1T

optimise aircraft utilisation yield management marketing - sales - reservations operational supervision charters 24/7

Your cargo GSSA Delivering personal service Kales Group B.V. The Netherlands Evert van de Beekstraat 46 1118 CL Schiphol The Netherlands T +31 (0) 20 655 3600 info@kales.com HEADOFFICE K ALES GROUP BV • SCHIPHOL, THE NE THERL ANDS A M S T E R D A M • A S U N C I Ó N • B A R C E LO N A • B E I J I N G • B I L LU N D • B O G OTA • B O R D E AU X • B R U S S E L S • B U C H A R E S T • B U D A P E S T B U E N O S A I R E S • CO P E N H AG E N • D U B L I N • D U S S E L D O R F • F R A N K F U R T • G E N E VA • H A M B U R G • H E L S I N K I • H O N G KO N G • K I E V LO N D O N • LYO N • M A D R I D • M A L M O • M I L A N • M O N T E V I D E O • M U M B A I • M U N I C H • O S LO • PA R I S • P R A G U E • Q U I TO • R I G A R O M E • S A N T I A G O D E C H I L E • S A O PA U LO • S H A N G H A I • S O F I A • S T O C K H O L M • V I E N N A • V I L N I U S • WA R S AW • Z U R I C H

T H E M O S T FAV O R I T E W O R L D W I D E G S S A

W W W. K A L E S . CO M

Air cargo companies at BRUcargo, Brussels Airport’s cargo area, have joined together with airline associations, GSA’s, forwarders and handling agents to form trade association, Air Cargo Belgium. The aim of the association is to further professionalize and improve the cargo area of the Belgian airport for the benefit of all the companies there. Five thousand people work at BRUcargo and a further 10,000 people are indirectly involved with the activities of the cargo area.

important chain partners such as Customs, the Directorate for Air Transport and the Federal Food Agency. Work groups have been established for, amongst others, e-commerce, digitilization, operational efficiency, AVI, fresh, customs and, of course, pharmaceuticals. ACB plays a supportive and coordinating role.

Industry Association

Air Cargo Belgium: Stronger Together at BRUcargo

“To achieve this we need a solid team that knows the air cargo industry inside out”

A

ir cargo companies at BRUcargo, Brussels Airport’s cargo area, have joined together with airline associations, GSA’s, forwarders and handling agents to form trade association, Air Cargo Belgium. The aim of the association is to further professionalize and improve the cargo area of the Belgian airport for the benefit of all the companies there. Five thousand people work at BRUcargo and a further 10,000 people are indirectly involved with the activities of the cargo area.

A formal organization has been set up with the establishment of Air Cargo Belgium. Geert Keirens, airport specialist at Voka (Chamber of Commerce), has been appointed director and is responsible for day-to-day management.

“We see more possibilities for the Belgian air cargo sector with this further professionalization. Not only are budgets larger but our influence in addressing issues is decidedly more significant”, says Geert.

Mission statement The association has embraced an ambitious mission statement: ‘ACB will represent the entire air cargo community and make BRUcargo the most attractive, efficient, innovative and successful logistical platform’.

“To achieve this we need a solid team that knows the air cargo industry inside out”, Geert says. “I know for sure that we can realize this aim with the present core team”.

Steven Polmans (Head of Cargo, Brussels Airport) has been chosen as Chairman. He will be assisted by two Vice Chairmen: Alain De Heldt (Chairman, Belgian Airfreight Institute BAFI, the forwarders’ organization) and Bas van Goch (Chairman, Association of Cargo Managers in Belgium ACMAB, the airlines and GSA’s organization).

Linking function ACB acts as the official representative of BRUcargo and links all the various companies who share one thing in common: offering an excellent air cargo chain with superior service.

Consultations are held with other

The preferred pharma gateway “Joint action: that’s how you achieve the best result. When airlines, handling agents, agents, the airport and other stakeholders all work together, BRUcargo cargo volumes will grow and Belgium will remain in position as a European air cargo hub that is not only ‘the preferred pharma gateway’ but also the most automated and efficient airport”, says Geert conclusively. “To achieve this, we will also reach out to other organizations, both domestic and abroad, from the Antwerp harbour to ACN in the Netherlands.

Air Cargo Belgium Bedrijvenzone Machelen Cargo 706 Box 68 – 6th floor room 610-611 1830 Machelen, Belgium info@aircargobelgium.be www.aircargobelgium.be

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ColdAirports storage

Left Rick Heijnen, right Vincent Poll

Dawsonrentals

A solution for every mobile climate problem From the local baker to the largest pharmaceutical concern in the world. From cooling to -40 to heating to +60 degrees, from a surface area of 6 square metres to over 50 square metres, Dawsonrentals has a suitable and superior solution for every mobile climate problem. Vincent Poll, Sales & Marketing Manager: “If you are looking for quality, attention to detail and service, then you should definitely come to us”.

Text Anita Schregardus Fotography Michel ter Wolbeek

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he Dawsongroup introduced the concept of moveable cold stores and freezers into Europe. Since being founded in 1935, the Dawsongroup has grown to be the market leader. The company has branches throughout Europe and has been active in the Netherlands since 1994.

Vincent Poll says “We were originally a family business and, although we have now grown significantly, you can still recognise the characteristics of a family business: short lines, customers with a fixed contact person, highly involved employees and low staff turnover.”

Inflatable cooling tent Dawsonrentals has an impressive fleet of cold stores and offers solutions for the most diverse climate questions.

The company has, for example, different possibilities for cooling and freezing. Poll: “Alongside traditional mobile cold stores, we also have a cooling/freezing tent. We developed this inflatable tent ourselves and are the sole supplier to the market. It is an ideal product for difficult locations. The tent is higher than a normal cold store and due to this, you can actually drive a forklift truck into it. Other advanta-

ges are low transport costs and fast installation.

HACCP standards The Rotterdam company not only rents cold stores and freezers. Companies can approach Dawson for blast freezers, climate rooms, tempering units and fruit ripening cells. “The equipment is all our own brand and high quality. The cells comply with specific standards – think about HACCP, BRC and GMP standards – and are therefore great for use in the food or pharmaceutical industries.”

Honest advice Vincent Poll likes to see customers put their questions to him at an early stage. “Then we can really think together about the most suitable solution. A customer might have a certain approach in mind that, in practice, does not supply the best result. Our consultants are very experienced, they will visit a location as necessary and always give honest and reliable advice.”

Various industries Dawsonrentals rents cold stores to companies in many different sectors

and Dawsonrentals employees therefore visit many companies. Think, for example, of the meat, fish and game industry, catering, flower and seed producers, wholesalers and logistics, the baking sector and pharmaceutical companies. “The breadth of our work is enormously valuable”, Poll believes.

“We stay on top of the latest developments and market requirements.

This gives us new insights from which other customers can also profit. We are always learning. This keeps us sharp and helps us keep a firm hand on our position as market leader.”

Dawsonrentals (Nederland) B.V. Geyssendorfferweg 66 3088 GK Rotterdam Phone +31 (0)10 495 29 55 Fax +31 (0) 10 495 29 55 info@dawsonrentals.nl www.dawsonrentals.nl

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International guest Text Hussein Hachem

Leveraging innovation A key accelerator for economic diversification Dubai is a remarkable place for many reasons. The city has effectively leveraged its geographic location, at a strategic crossroads between east and west, to become a leading, international hub for trade and commerce in a matter of decades. At the center of global growth and development, it is truly a main port of passage for connecting nations and people from all corners of the globe. With more people passing through its airport than any other in the world, overtaking London Heathrow last year, and its establishment of a dynamic, international financial center, there is no question that Dubai’s list of achievements is impressive.

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he UAE’s place on the world map however is only one reason for this recent, rapid development – there is another critical element for the country’s future growth.

This factor is the ability to effectively leverage innovation. I believe this is the key catalyst to facilitating growth and further diversifying the UAE’s economy. Groundbreaking, innovative technology solutions are being introduced every day around the world, propelling some countries forward and leaving others behind.

To accelerate the UAE’s growth and ensure its sustainable future, we must effectively leverage innovation.

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In my opinion, there are three areas of focus to closely watch for changing or evolving trends, which then determine how best a business can leverage innovation. 1) The industry they operate in, 2) Changes in

consumer behavior and expectations and 3) Wider global demographics. In the logistics industry for example, we routinely monitor these areas to find ways to effectively leverage innovation, both to develop the industry and better serve customers. Based on our findings and assessment, we identify the relevant technology and how best to deploy it. This is critical to implementing innovative technologies that are effective and sustainable.

From my experience, this approach to leveraging innovative technology has consistently had a direct, positive correlation to business performance and growth.

First, innovation in technology in the logistics sector is extremely important. Innovative technologies fuel e-commerce development, scheduling and delivering packages and maintaining exceptional levels of customer service. Drones and driver-

less trucks are even being considered for making deliveries in the near future, which would add an unparalleled element to cross-border trade.

These technologies underpin wider business performance and are key to a logistics company’s sustainable development.

There is no doubt that innovation in technology is critical for logistics players who strive to become market leaders, tap into new consumer bases or introduce new product offerings.

Second, consumers are changing the face of retail, which in turn drives change in the logistics industry. We are seeing customers quickly adopt a number of new technologies being made available to them, whether it’s through new phone apps for placing orders and deliveries, mobile banking options, or being able to track a package in real-time. As consumers quickly change and adapt their preferences to using new, innovative

Hussein Hachem CEO Aramex

technologies, logistics players must also be able to predict and successfully meet these demands. Not doing so could put their business at risk.

Third, global demographics are quickly changing and are influencing logistics companies’ business decisions.

Emerging markets are developing at a rapid pace, which has significant implications for the logistics industry.

The Asia-Pacific is the fastest growing regional e-commerce market in the world, with a 35 percent year on year growth rate. Africa’s e-commerce market is also gaining traction, growing at about 25 percent year on year.

This rapid emerging market growth is because of rising middle classes and increasing mobile phone penetration in highly populous countries and is transforming how people connect, communicate and shop - almost overnight. Because of this rapid growth, logistics companies must innovate faster than they would in

developed markets to cater to this online shopping boom. Cargo trade routes across the east and west are also now outpacing the north and south, as economies in the Africa and Asia-Pacific become highly attractive investment destinations for more developed markets in the US and Europe. Economies worldwide are better connected than they have ever been, which is putting pressure on the logistics industry to offer faster, more efficient services.

To respond to and benefit from these trends, I believe that logistics companies must continue to innovate their last mile delivery technologies. While there a number of components that make a logistics company successful, ensuring that our customers receive their packages on time and at their doorstep is key. If logistics companies make a concentrated effort to innovate their last mile delivery technologies, the benefits would be profound.

We would make better use of data and tracking to reach more consumers off the grid, deliver packages faster, reduce likelihood of error or delay and improve the overall customer experience. I am confident that logistics players will make a strong push to innovate their last mile delivery technologies, further diversify our economy for a more sustainablefuture and positively transform the face of global trade.

The author is Hussein Hachem, CEO of Aramex, a leading global provider of comprehensive logistics and transportation solutions headquartered in Dubai.

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Road Transport

Dobbe Transport Passionately doing business for customers, employees and the environment for over a century and a half From “tulip village” Roelofarendsveen, conveniently located in the Randstad, the fifth generation of the Dobbe family work with heart and soul delivering quality to their customers. Approximately 30 years ago Piet Dobbe, great-grandson of the founder of Dobbe Transport, started work in the family business. Five years later he took over the business and, together with his cousin Eric Dobbe, they continue the work of the company’s namesake. Dobbe is not only active in the Netherlands but also operates in Belgium, France, Germany and Austria. CargoHub Magazine spoke with Raymond de Jager, Airfreight Trucking Manager and Eric Dobbe, Logistics Manager.

Links Raymond de Jager rechts Eric Dobbe

Text Esther Kort-Boreas Photography Dimmy Olijerhoek Fotografie

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“D

istinctive quality, that’s what Dobbe Transport stands for”, says Raymond in answer to the question how the transport company positions itself in the market. “Moving as many shipments as possible from A to B for the lowest possible price is not our thing. Other companies are far better at that. We work for customers who want their shipment to arrive in both perfect condition and on time at the place of destination, that the driver handles the goods carefully and acts as an ambassador for the customer.

We are proud that almost 100% of the shipments we carry arrive without damage and are delivered at the agreed time. Our AEO certificate issued by Customs and our registration as “Recognised Haulier” in the EU database emphasise our quality ambitions.

Family Company pur sang The family company has been working for more than 150 years in Roelofarendsveen. Since 2002 Dobbe Transport has been located in business premises that are well located

on the A4. Four years later a second hall was purchased in the same industrial estate. A recent expansion now gives Dobbe 9000m2 warehouse space and the company went from 8 to 17 loading docks. 140 people work at Dobbe Transport including 85 drivers. The branch in Avignon, France, where Dobbe Transport performs its own cross docking, has 5 employees.

Not only have several generations of the Dobbe family worked for the company for years and years. When you look at the employee file, you see the same surnames appearing

multiple times. “That’s true”, says Eric “mothers and fathers work here and their sons and daughters. Roelofarendsveen is a small, close-knit community and it is quite normal to go to work at the same company as your father, mother or grandfather.

It almost just happens naturally. For instance, ever Saturday all our cars are washed. This is done by hand by youngsters from the village who want to earn some pocket money. They can be the next generation of employees: youngsters who were washing cars at 16, are working next to us in the office six or seven years later. It is great to see.”

A part of the induction program for new employees is to experience the workings of all sections of the business: they even go out with the drivers. In order to get a feel for the company and its work procedures, every newcomer must spend two weeks working throughout the whole operation.

Modern Vehicle Fleet Dobbe Transport has a vehicle fleet of over 60 trucks (this converts into about 80 units of available capacity) delivery vans to tarpaulin vehicles and volume combination trucks to vehicles for city distribution. Dobbe has them all. There are also trailers with double loading ramps in order to serve the customer even more efficiently. The city distribution vehicles are specially equipped for combined pallet-package-roll containers and for carrying hanging garments. The load spaces of these vehicles are electronically secured. “Obviously sustainability is a high priority for us”, says Raymond.

“Our trucks comply with the strictest environmental requirements regarding CO2 emissions and are fitted with Euro 5, Euro 6, EEV and dual fuel solutions. These are the European Union’s most environmentally friendly emission standards. Dobbe Transport is therefore one of the cleanest transport companies in the Randstad.”

Responding to Customer Requests and Market Developments Dobbe Transport offers its customers more than just road transport. The company has extensive warehousing possibilities on the A4 near Schiphol.

At the moment there is an increasing demand for GDP (Good Distribution Practice). Accordingly, the expanded

warehouse has been equipped with about 2,600 pallet spaces for lengthy storage, both cooled (2-8 degrees) and ambient (15-25 degrees). From February 2017 Dobbe hopes to be able to meet the needs of their customers with transport in accordance with GDP conditions. “We have a pragmatic mindset” according to Eric.

“No never-ending stories and paper analyses with us; we react directly to market developments and customer requests. React quickly and always take the extra step to satisfy the customer, that is what we do.”

Cool storage and transport As Dobbe Transport is certified for BRC (food safety standard) and Skal Biofood (standard for the storage and transport of biological products), many customers use Dobbe’s modern air-conditioned cold stores.

All fresh products are registered in the warehouse management system (WMS) upon arrival, shelf life is monitored and the products delivered as required in accordance with the FIFO (first in – first out) method.

Dangerous Goods “As we are all aware, the laws and regulations with regard to dangerous goods are constantly changing’, tells Eric. “It can be difficult for customers to keep up with these changes and modify their warehouse accordingly.

We therefore offer our customers the possibility of storing their dangerous goods in a responsible manner.

We have at our disposal a total of 1,300 pallet spaces for aerosols and/ or lithium batteries in our new PG15 warehouse. Of course, our employees hold ADR certificates (EU agreement regarding the international carriage of dangerous goods by road), which means they know how they must deal with these substances in a safe and healthy way. There are many strict rules for the storage of these products.”

Finally “It is difficult to describe all our services in just two pages” says Raymond. “Hopefully the reader has been able to peek into what we do and, of course, we are more than ready to receive anyone interested in our services and the possibilities we could offer them at our new office on the A4.“

Dobbe Transport Veenderveld 116 2371 TX Roelofarendsveen Tel: +31 (0)71-331 2974 sales@dobbetransport.nl www.dobbetransport.nl

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Cover Story

Brussels Airlines Cargo upgrades cargo to first class Brussels Airlines, operating from Brussels Airport, was founded nearly 10 years ago after a merger between SN Brussels and Virgin Express. The airline’s network covers more than 90 European, African and North American destinations. From March 2017 there will also be an Indian destination with 5 flights each week to Mumbai. Brussels Airlines Cargo is the cargo division of the Belgian airline.

Alban François

Text Esther Kort-Boreas Fotography Brussels Airlines Cargo

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VP appointed ith effect from 1 January this year, Alban François has been appointed Vice President Global Cargo. In his former function as the airline’s Strategic Purchasing Manager, he was closely involved with the GSSA tender process and contract negotiations with Air Logistics Group. From that moment he was also working on a new strategy for the cargo division. Alban trained as a civil engineer and began his career in the Belgian Air Force where he was responsible, amongst other things, for the maintenance of the C-130 air transport fleet and bringing the new NH90 helicopters into service.

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Main points of the new strategy Previously – in the old strategy – cargo was “the cherry on the cake” in its contribution to the airline’s results. The focus lay on filling the belly with as

much cargo as possible.

In the new strategy cargo is regarded as core business alongside the transport of passengers and, therefore as such, is “a second cake”.

“In short, our aim is to offer our customers air cargo solutions tailored to their wishes and requirements”, said Alban. “Our attention is no longer exclusively on filling the belly with as much cargo as possible. Our range of products has been adapted in accordance with the needs of our customers. We have restructured our organization and streamlined communication. We have settled the tension between commerce and operations. Both areas fall under my responsibility allowing harmony to be assured.” says Alban New strategy in practice What does the new strategy mean in practice? “As an example, we have adapted our European courier product

to the requirements of the customer.

Think of a cut-off time of one hour prior to departure and working with an accompanying voucher rather than an air waybill. Our central control tower always has sight of a package being flown as a courier shipment”, Alban says. He continues: “We have also overhauled our pharmaceutical product. We are represented in the BRUcargo pharmaceutical forum where discussions are held with pharmaceutical shippers regarding requirements for pharmaceuticals throughout the whole logistical chain. From shipper to consignee, every player in the chain is given an opportunity to contribute. Here too the customer’s wishes are pivotal and together we discuss the best solutions for the supply chain. The basic idea is that we are stronger together when there is transparency throughout the chain and we are, therefore, able to guarantee better quality than when

Brussels Airlines Cargo Management Team

individually everyone only looks at his own domain.

Role of CargoClaims Not only the product range and product features are being addressed. Operations and administration are also being re-examined in the new strategy.

An example of this is the “customercentric process improvement” program.

In this program, customer feedback and internal reports on process irregularities are grouped by function, importance and reciprocity. There is an important role in this program for the CargoClaims product that Brussels Airlines Cargo has been working with for some time. “This online tool gives us the possibility to collect customer feedback in one central place, group it by subject and rank it by relevance. As we cannot tackle everything at once, we are focusing on improvements with the most positive impact (increased customer satisfaction or increased efficiency).”

The CargoClaims platform, developed by CargoHub BV, supplies various modules for comprehensive quality management support. Recording, follow up and monitoring of root-cause investigations play an important part. The collected data can be used for quality/risk analy-

ses and targeted action can be taken to improve processes.

“After we have implemented improvements or changes based on customer input, the cargo claims tool offers the possibility of giving feedback back to the customer. Customers then know that something was actually done with their feedback. We intend to demonstrate that the phrase ‘the customer comes first’ is definitely not just a slogan“ according to Alban. In response to the question as to the timeframe for achieving Brussels Airlines’ goals, Alban responds with a smile: “It is a continuous improvement program so really we will never finish”.

Back in control In the past Cargo Management was outsourced to a GSSA that also serviced other airlines. In the new strategy a separate business unit has been set up at the GSSA, Air Logistics Group, with employees dedicated to Brussels Airlines Cargo. The creation of this new business unit provided an excellent opportunity to bring together people with a broad background in the industry.

The selection was undertaken jointly

by GSSA and the airline. In this way each company’s strengths could be

merged in order to be able to realize the transformation more quickly. The ultimate aim is that the employees will be employed by the airline. The transfer from GSSA to Brussels Airlines Cargo will be a gradual process with full integration in 2017. The European hub in Brussels will then be run completely

by Brussels Airlines with a team of very experienced employees.

‘We go the extra smile’ Promise Alban concludes: “Brussels Airlines Cargo wants to be the most reliable supplier of airfreight solutions for its customers. Everything that comes our way will be tested against this goal, including cargo claims. Only in this way can we prove that the Brussels Airlines slogan “We go the extra smile” also applies to the cargo division”.

Brussels Airlines Cargo Alban François Tel: +32 (0)2 723 82 35 alban.francois@brusselsairlines.com www.brusselsairlines.com Daphné Van Landuyt and Jill Ranquin, Business Excellence Manager & Assistent

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Innovation

IATA Awarded solution: www.CargoClaims.aero

Platform improves the quality of the air cargo product From 11 to 13 October the 12th IATA Cargo Claims & Loss Prevention Conference (CCLP) was held in Brussels. Raoul Paul of CargoHub spoke with participants about the latest developments in the cargo claims platform. With a fascinating presentation he introduced the audience to the advantages of the worldwide Cargo Claims Platform.

Raoul Paul

Text Anita Schregardus Photography Michel ter Wolbeek

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T

wo years after the introduction of www.CargoClaims.aero , the platform now has a large number of users. The platform offers a unique efficient solution for claims throughout the chain between shippers, forwarders, airline companies and other stakeholders.

Fast insight into damage The focus of CargoClaims lies in the optimal facilitation of the complete process from damage registration to claim handling in the logistical chain.

Raoul outlines the challenges the chain has to deal with: damage to goods, delays, missing goods and/or documents. “In order to handle the resulting claims, a significant communication stream is triggered. Collecting all the necessary information is difficult and a particularly time-consuming task.

To simplify the process, fast access to information relating to the occurrence of the damage is essential.“

Maximum service under all circumstances The CargoClaims Platform makes it possible to record incidents right from the start. The aim is to identify the cause of the incident at the earliest possible stadium and to submit it to root-cause investigations. “By approaching incidents in the correct way from the beginning, effective action can be taken. Customers can be informed more quickly and receive maximum service even when bad news has to be passed on. Acting on damage only after a shipment has been delivered or commencing an investigation only after a claim has been submitted, is far too late”, Raoul explains in his presentation.

Cost savings and higher quality service www.CargoClaims.aero is a very user-friendly and accessible system.

Raoul explains that the registration of claims and incidents is via standard-

ized forms and that, by completing these, a good and complete picture appears. “You get an insight into not only what has happened and what the consequences are, but also into how it could have happened. Was it perhaps human error or is there something wrong with procedures? This information is enormously valuable for risk analysis and delivers a treasure trove of information for the improvement of internal processes.” The founder of CargoHub emphasizes that the platform is far more than just an instrument to handle claims. “It is a tool that the whole logistical chain can use to work towards cost savings and providing higher quality service”.

Faster claims processing Claims entered by shippers, forwarders, insurance companies or other parties via the platform, are directly accessible in the protected account of the airline to which the claim is directed. The airline has access within this

account to extensive tools to efficiently manage the complete claim process.

“Whereas claims currently can take 90 to120 days, and some times even longer, in many cases we can bring this back to a maximum of 30 days.

Obviously, this is dependent upon all the required documentation being made available by the claimant.”

Support from forwarders CargoClaims can rely on ever more support from forwarders. By using the free portal, all airlines can be contacted to submit a claim. An increasing number of parties are switching to the paid version of the system in order to professionally set up a claim process within their own organizations. Raoul Paul: “The major advantage of the paid version is that more modules are available. Along with modules for Customs AEO requirements, audit management, document management and training records, the claim modules for road transport and sea freight are obviously also available.”

Contributing to an increased competitiveness of air cargo

Uniform and transparent Raoul advises that airlines with their own systems can also be connected to the platform. “We are happy to offer this possibility in order to be able to exchange data. Our aim is to commit the industry to uniformity for the benefit of the air cargo product. At present

weight, exchange rate calculations to local currency and management reports. “We have recently activated smartview dashboards within our platform that offer users and management an excellent tool for incident analysis and for monitoring the process. We are continually pushing our boundaries

“All support from forwarders is welcome to help us with our mission to speed up the claim recovery period by using our portal www.cargoclaims.aero” customers must cope with different systems and procedures. By cooperating together and using our platform we develop uniformity, transparency and efficiency and that is beneficial to the whole sector. We maintain good relations with virtually all airlines. They can see that we are not making things difficult for them, but indeed are contributing to the quality of their services.

Maximal customer satisfaction During the IATA Conference Daphne van Landuyt showed how the system had assisted Brussels Airlines Cargo with efficient claim handling. The online tool helped the airline centralize feedback from customers, order it by subject and sort by relevance. On the basis of this information, the company made improvements contributing to efficiency and maximum customer satisfaction.

Intelligent system with smartview dashboards The Cargo Claims Platform is continually being expanded with new applications to support users in their activities.

Consider, for example, calculating maximal liability on the grounds of

to supply users with the ultimate customer experience”, says Raoul Paul.

Improving the quality of the air cargo product Raoul looks back at Cargohub’s participation at the IATA Conference with satisfaction. “For some attendees it was their first encounter with our platform and others could see how the system has grown into a unique and innovative management tool for claims between partners in the chain.

Many users see it as an instrument to raise our business sector another level. And that is precisely the reason why we were rewarded with the IATA Cargo Innovation Award.”

CargoHub BV Beechavenue 54 – 80 1119 PW Schiphol-Rijk The Netherlands +31 (0)20 6586220 www.cargohub.nl

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Training Cyber Security & Privacy Awareness Speciaal voor de sector Luchtvracht, Transport -en Logistiek biedt Clarox in samenwerking met PMT een awareness training aan voor de thema’s Cyber Security & Privacy. In de vorm van E-Learning met een hieraan gekoppelde internationaal erkende eindtoets. De training is bedoeld voor organisaties om meer bewustzijn te realiseren op gebied van informatieveiligheid. Hierdoor kunnen veel problemen worden voorkomen en vervelende situaties worden bespaard. Deze is gebaseerd op de ECDL (European Computer Driving Licence) methodiek, met leerdoelen aansluitend bij de bedrijfspraktijk.

Hiermee kan gewerkt worden aan bewustwording, kennis en gevalideerde en erkende vaardigheden. De kwaliteit is nationaal en internationaal geborgd door de ECDL Foundation (www.ecdl.nl).

Voor meer informatie: Frank Terpstra - 06-23016200

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www.cargosecurity.nl

A

n airfreight forwarder received a request for a quotation from a shipper for an air cargo shipment from Amsterdam to Douala. The shipment would be general cargo.

The forwarder prepared a quotation on this basis and attached the Fenex Conditions of 1 July 2004. The shipper accepted the quote and gave the forwarder the instruction to organize the air transport.

The goods were delivered and proved to be a batch of batteries. Batteries are designated as dangerous goods and the airline refused to transport them.

The shipper had not recorded this on his request and he is therefore requested to pack the batteries correctly for transport, prepare a DDG (Declaration of Dangerous Goods) and ensure that the shipment shows the relevant Class label.

The shipment must also be recorded on the Notification to the Captain (NOTOC), the document that informs the Captain of the dangerous goods

on board the aircraft. All this resulted in delays occurring in sending the shipment.

Once all this had occurred and without any further intervention by the forwarder, the shipper delivered the shipment directly to the airline.

It then eventuated that the shipment had been packed for Carrier Aircraft only and the airline refused again to take the shipment. The International Civil Aviation Organization has an interim prohibition order regarding the transport of lithium-ion batteries in the cargo holds of passenger aircraft.

The shipment must therefore be transported on a special cargo flight and, as a result, further delays were incurred. The batteries were destined for a project in Cameroon and the delays resulted in various technicians losing a number of working days. The resulting financial cost for the shipper was estimated at Euro 13,000. The forwarder was called to account for this amount.

The forwarder denied liability based on the conduct of the shipper and the applicability of the Fenex Conditions of 1 July 2004. Fenex Conditions determine that the forwarder is not responsible with regard to his customer for damage resulting as a consequence of the (nature of the) goods, the packing thereof, and incorrect, inaccurate or incomplete instructions and information.

Dangerous goods

Air Carriage of Lithium Batteries

Shippers must understand that the carriage by air of dangerous shipments is bound by strict rules and they should, in the case of any doubt, seek advice from a specialist in this area.

Cor van Maurik BRR Schadeverzekeringen B.V. T +31 10 286 59 36 corvanmaurik@brrgroep.nl

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Organizational psychology Text Raoul Paul Photography Corine Zijerveld

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Organizational psychological support helps realize a business transformation faster Developments in our digital age offer business many possibilities for innovation. At the same time, adaptive capacity demands business and organizations become familiar with new technologies whilst continuing to fulfill the expectations of clients and personnel. Psychosocial development helps to create productive healthy growth and can transform a business.

“The human factor remains the key to success�

Implementing change successfully is largely determined by the internal relationships of the people and sections within an organization. Changes to policy, strategy or company goals are often prepared by management without considering the corporate hierarchy, corporate culture and the social hierarchy. Rarely mentioned is the question as to whether the objectives to be achieved are taking essential human factors into account? Are the people who will execute change, capable enough to guide people to achieve visibly better results?

Do organizations reflect on the question: who has personal authority and does this person have a management function? To what extent is personal development tested against personal knowledge? And, last but not least, does the present style of leadership and corporate culture suit the demands of change and what will be the best fit for the future? How does a businessman become a charismatic leader, inspiring and capable and how can this be achieved?

Inez van Boxtel

“Empowered leadership to coach the change process”

“Stricter requirements around governance and compliance”

Skills development processes and leadership training ensure that today’s employer can analyze both his own distinctive knowledge and his leadership behavioural traits. The first step is to understand the new direction, vision and changes to working methods.

Conveying this and positively influencing the environment is the next step.

A priority before change commences must be to create involvement and relationships.

Governance covers the processes, practices, policy, laws and rules significant to the way people steer, manage, operate and control an organization. The breadth of measures an organization has to meet to appropriately manage governance is both complex and increasingly important.

Legislation on security, customs and quality standards requires that organizations undertake risk assessments and monitoring with the aim of minimising risk as far as possible.

It is important that leaders take into account both the culture and emotion within an organization. To a great extent, it is very important to have sufficient emotional intelligence (EQ) and contemporary communication skills besides purely professional knowledge.

“Is inspiration necessary for your company to better perform?”

It is important that leaders of transformation processes convey their vision in a challenging, inspiring and enthousiastic way in order to motivate the team to independently realizing the new goals in a changed environment.

In combination with close attention towards employees’ individual qualities versatile and cooperative behaviour can be achieved within selfmanaging and self-sufficient (management) teams.

Be Inezpired Inez van Boxtel Organisational Pyschologist and Change Process Coach

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magazine

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Airports

BRUcargo in full swing In 2016, for the third consecutive year, the BRUcargo team under the leadership of Steven Polmans, received the prestigious Air Cargo World’s Best Airport award. At the end of 2010, Steven commenced as Cargo Marketing Manager for the Belgian national airport and his task was to ensure good service for the existing airlines, attract new customers and to promote BRUcargo internationally. Since 2012 Steven has been Head of Cargo and, together with his team, has strengthened the position of BRUcargo with the goal of making the cargo airport the most efficient in Europe.

Text Esther Kort-Boreas Fotography Brussels Airport

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inning this award is thanks to the achievements of all the people who have contributed to the development of BRUcargo”, says Steven. “I don’t just mean the improvement of the whole service and job creation in the cargo area but also infrastructural and property investments and developments in transport and storage of temperature sensitive goods. In short: cargo is in our hearts. It is enormously rewarding that our endeavours are recognized by the industry.”

Connecting and cooperating The airport’s success is the result of good cooperation between all the parties in the chain.

“Parties who cooperate with each

other, organize consultative structures in such a way that everyone understands each others’ positions and principles, are essential to allow an airport to flourish”, Steven says.

“I could say that the cooperation between companies in the BRUcargo logistics chain already worked well, but then we would have to orchestrate the story a little. Since the branch association Air Cargo Belgium has been set up cooperation is even better and the initiative lies with the BRUcargo community itself.”

It is quite remarkable to note that attracting new airlines with more flights and new routes was not the primary focus of the Brucargo cargo strategy. “In order to be able to grow, the logistical chain must, in the first place, be under control. Insights into

the needs and requirements of customers are a priority. We also intensified the relationship with all partners in the chain including the forwarders.

If you look at the encouraging statistics, you can see that this approach has borne fruit”, Steven says.

Centre of Excellence in Pharmaceutical Handling Through intensive consultations within the Belgian air cargo chain, it quickly became clear that there were opportunities in the area of the cold chain.

Recently, for example, the “airside pharmaceutical transporter” came into being, a cost efficient invention by the airport for transporting temperature sensitive products between aircraft and warehouse.

Since 2014, BRUcargo may call itself

the first CEIV Pharma certified airport community in the world. This certificate, recognised by IATA, was developed by Brussels Airport together with a few pharmaceutical shippers in 2013/14. The cooperation with IATA began during 2014 and resulted in the current IATA CEIV program. Twenty companies took part in the project that resulted in the BRUcargo project remaining the largest CEIV Pharma community in the world.

BRUcargo aims, partially due to the use of the airside pharmaceutical transporter mentioned above, to realize the shortest and fastest route to the end consumer in combination with a guaranteed continuous cold chain. The Belgian airport has also quite rightly received the designation ‘Centre of Excellence in Pharmaceutical Handling’. It is also logical that the organizer of the “Pharma Shippers Forum” during Air Cargo India 2016 and Air Cargo Africa 2017 termed Brussels Airport the ‘preferred gateway’ into Europe for pharmaceuticals and the cold chain industry.

Successful figures After a dip in cargo volume following the departure of DHL in 2007, there has been an upward trend since 2012 when we review cargo tonnage carried via BRUcargo. Nearly 20 cargo airlines, including well-known names such as Emirates Cargo, Qatar Airways Cargo, Etihad Cargo, Asiana and Singapore Airlines Cargo, together cover more than 60 destinations. Growth is

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INTERNATIONAL AIRFREIGHT ASSOCIATES BV

must embrace. And I mean not just the national community but also the international”. Steven is referring to The International Air Cargo Association, TIACA, to which he has recently joined the Board of Directors. In this global cargo organization, he is making the case for further cooperation in knowledge and information sharing between chain partners.

‘We have a heart for your cargo’

not only in the full freighter segment.

There have also been increases in the volume of belly cargo and cargo on integrators. Since DHL moved its hub from Brussels to Leipzig in 2007, DHL has reshaped its Brussels operation into a regional hub. Steven explains: “The growth figures are the result of the efforts of all the involved parties in the chain, from handling agents to GSA’s and forwarders. But we also work well with government authorities, for example, the Federal Agency for Food Safety”.

Digitalisation BRUcargo has been working for some years on making processes smarter and increasing the efficiency of the logistic chain. For example, there have been investments in a so-called ‘cloud-based’ community platform in which the companies operating at BRUcargo can exchange data and work together more efficiently. An advantage is that any IT system can be connected so companies may

continue to use their own applications and software. The focus lies, not so much on the whole of e-freight, but on processes to make BRUcargo more efficient. For example, a slot application for delivery and collection of cargo, dashboards for pharmaceutical shipments and a statistical application summarizing cargo streams.

Since taking up his duties with BRUcargo in 2010, Steven and his team have endeavoured to bring together all the various cargo stakeholders. The ability to bring people and companies together is useful as he is also chairman of the recently established sector association in Belgium.

“I think we find ourselves in challenging times. The cargo industry is developing rapidly. Think of the ever on-going digitalization of cargo processes and the emergence of processes that begin with ‘e-‘. These are developments that we should not only consider individually but are ones that the whole community

Strategic Vision 2040 The recently published Strategic Vision 2040 for Brussels Airport outlines the opportunities to retain Belgium’s strong export position, i.a. by opening up new markets and by both building and supporting a strong logistical network. Developments and investments in real estate fit seamlessly into this picture. The trend of reluctance to invest in warehousing has been breached.

The new DHL Express hub at BRUcargo is impressive. A new logistics building is also being developed for Panalpina at BRUcargo. In recent years both DHL Global Forwarding and Nippon have moved to new locations. In the coming years new buildings will rise on the first line for both handling agents and forwarders.

In conclusion “BRUcargo is evolving rapidly. The cargo sector has picked up and opportunities for further innovation can be seen throughout the whole chain. Our aim is certainly not to be the biggest but to further build on our position as a European hub and to be an industry trendsetter”, concludes Steven.

brucargo@brusselsairport.be www.brusselsairport.be

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Equipment

SACO Airport Equipment sparkling with energy!

Nearly 66 years old and full of energy: that is SACO Airport Equipment. The company was founded in 1951 and currently employs 70 people at two locations in the south of The Netherlands: Mierlo and Deurne. In brief, SACO specialises in the development, fabrication and supply of air cargo handling and storage systems. CargoHub Magazine spoke with Hans van Schaik, the company’s Sales Director.

Text Esther Kort-Boreas Photography SACO

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Health and Safety ACO develops smart systems for the handling and storage of air cargo whereby the health and safety of the cargo personnel has priority. “For a number of projects we have engineered specific equipment which lightens the physical burden on employees as much as possible therefore increasing safety”. Hans says “We feel it is important that the people using the equipment can do their work in a responsible and safe manner.”

A few examples are: • retractable steps for workstations to avoid personnel having to step up a half metre step each time to reach a unit load device (ULD), and also in such a way that the step doesn’t form an obstacle for forklift traffic; • automatic ULD stops at airside so that stops no longer have to be manually raised and lowered each time when transferring to and from dollies; • auxiliary drives in castor decks with mobile control panels to avoid overstressing personnel

S

whilst pushing heavy pallets; • hinged covers for lowering workstations to protect personnel from tripping or becoming trapped when building or breaking high pallets.

Growth in air cargo, growth for SACO! The International Air Transport Association (IATA) has forecast further worldwide growth in air cargo tonnage. In reply to the question if this growth will have an influence on the interest of airlines and handling agents in SACO’s products, Hans confirms this and explains: “SACO is doing well. I would even dare to say that we have seen an exponential growth

since 2012-2013 in the handling equipment segment. Airlines and handling agents want to be one step ahead of their competitors and be able to offer innovative and modern systems to customers and potential customers. The related IT systems which are constantly in development play an important role”.

Express operators are the major investors SACO’s client base includes the major express operators such as FedEx, TNT and DHL Express. “They invest substantially in ULD handling systems.

We supply equipment to FedEx for their hubs in Paris and Cologne-Bonn, to the TNT Eurohub in Liege and to

the DHL hubs in Amsterdam, Leipzig and Brussels”, says Hans. “But also the smaller hubs receive the correct material from us. For instance, we supply systems to DHL Express in Gothenburg, Arland and Västberga in Sweden, and to Tampere and Helsinki in Finland. The fact that the express segment is taking off in this way is partially due to the rise of e-commerce where speed of delivery becomes significantly important. The number of internet purchases has increased drastically and the express operators have become extremely busy. They also offer traditional air cargo operations within their existing network as door-to-door products.

So yes, that is, once again, good for SACO”, says Hans.

Solving your cargo handling challenges!

Work area Although rooted in the Netherlands, SACO frequently works across the border, not just in Europe but also further away. From Calgary to Vladivostok and from Auckland to Dhaka, everywhere in the world you will find SACO systems. Last summer for instance, SACO built and supplied the first Elevating Transfer Vehicle (ETV) to the South Pacific region. “Foreign customers see the Netherlands has knowledge, experience and quality when it comes to material handling systems. The

market is in the hands of only a few suppliers and SACO has both the know-how and technical teams to be able to offer a full service package to customers: from design to fabrication and installation of the equipment the customer needs. Our slogan is there for a good reason: Solving your cargo handling challenges!”

Airlines, handling agents and airports But it’s not only airlines and handling agents who find SACO. The airports themselves are investigating possibilities to invest in modern handling systems. The fully automated ETV system for storing aircraft ULDs is very interesting to this target group. SACO not only offers single storage level but also the more advanced systems up to five levels high. For example, these systems can store10-foot, 20-foot main deck pallets and LD3

lower deck containers and with the aid of an automated IT system, any particular ULD can be located and retrieved.

Future Asking how he sees the future, Hans replies: “We want to realise a healthy, organic growth for our company, to keep looking after our customers wherever they may want to fly in the world. Schiphol is, of course, one of the roots of our company and we are one of the very few suppliers who have been around for more than half of Schiphol’s 100 years’ existence. The increasing demand for our products in the air cargo world encourages us to be very positive over the future.”

SACO Airport Equipment P.O. Box 47, 5730 AA Mierlo Industrieweg 2, 5731 HR Mierlo The Netherlands Ph: +31 492 430059 F: +31 492 432713 info@saco.aero www.saco.aero

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Security Left Dick Meijaard and right Patrick Schoenmaker

X-ray screening: batteries not included The air transport of (Lithium) batteries is a hot item at the moment. Unfortunately, these can easily combust if they have been designed or assembled incorrectly, or if they have been incorrectly packed or are damaged. Although there are detailed regulations for packing and transporting Lithium batteries, unfortunately many are still being sent whilst not conforming to the statutory regulations.

Tekst Dick Meijaard en Patrick Schoenmaker Fotografie Cargo Magazine

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T

he IATA position, published in the Dangerous Goods Regulations (3.9.2.6) is clear: “Cells and batteries contained in or with equipment containing Lithium in any form must be assigned to a UN number as appropriate. They may be transported if they meet the following provisions …”. The legislation with respect to Lithium batteries details tests, weights, strengths and exceptions. The fact is ALL batteries are designated as Dangerous Goods. Non-Lithium batteries often fall under class 8.

Obviously following these regulations is an important task and this is the responsibility of the consignor as it is for all Dangerous Goods that are to be sent by air. Declare them and

simple otherwise all the discussion on this point would be unnecessary.

It appears that, in most of the incidents and fires with J Lithium batteries,

‘Declare and pack them properly according to the applicable rules and problem solved.

Apparently it is not quite so simple.’ pack them properly according to the applicable rules and the problem is solved. Apparently it is not quite so

the shipments had not been sent as dangerous goods and did not comply with the packing and labelling instruc-

In het bovenste plaatje staat de plaats van de batterij in de zending met de groene rechthoek aangegeven.

In het plaatje daaronder geeft het software algoritme met rood omrand de plaats aan waar een batterij ontdekt is. Het paars omrande gebied toont een valsmelding en de lichtblauw omrande gebieden geven aan dat het programma deze plekken heeft onderzocht en (terecht) OK bevonden heeft. (niet vertaald)

tions in Section II. In multiple cases, the description on the accompanying cargo documentation (such as the Air Waybill) was deliberately inaccurate in order to hide the contents from the airline or the agent.

What is possible and what not?

Aside from wilful breaches, there is a lot of murmuring querying what can you do and what can’t you do. Should the batteries be in the hardware or not and what is allowed? May batteries be loose, can only alkaline batteries be loose, should there be caps and if so, how? It is a tricky matter for everyone: the shipper, forwarders, carrier and handling agents. Just as with (compulsory) controls explosives, IED’s and IID’s (improvised incendiary devices), it is becoming ever more important to check for the presence of badly packed or incorrectly declared batteries.

The current screening methods of ETD (explosive trace detection) and EED (explosive detector dogs) are not good methods for tracing batteries. In practice, X-rays are the only hardware we have to try to solve this problem. With the current image quality,

source strength and software, it would seem possible to trace batteries in a shipment with the help of X-ray equipment. Problem solved?

Different sorts of batteries Unfortunately, the problems are only just beginning. Discovering that there are one or more battery power packs, batteries or button cell batteries in a shipment is phase one. Unfortunately in the regulations not every battery is equal. There are different requirements, exemptions or, indeed, enhanced measures for alkaline batteries, lithium batteries, potassium

are no restrictions. The accompanying documentation should be completed declaring batteries but showing the words “Not Restricted”.

Educating the consignor is a good thing. It is after all the consignor who knows what he is sending. He has the legal requirement to find out what it is, if he does not know this, either by means of a “Data Sheet” or from product information. Yet it is not unwise to check for batteries in airfreight.

For instance, think about a private shipment of packages (there was a news report recently that, for example, PostNL was expecting to process more

‘Open the packages and take the correct decision following a hand search and visual inspection.

Let’s leave the practical infeasibility of this to one side.’ batteries, batteries with sodium and nickel metal batteries.

For example, special provision A 123 tells us that if the poles of a dry battery are carefully isolated, there

than 5 million packages in December 2016). Luckily not all of them would have gone by air but a significant number will have done).

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We were considering X-ray checks to find the presence of batteries in a shipment. There is no visual information to assist the X-ray operator in deciding what sort of battery it might relate to and, therefore, also no information available on the regulations and packing instructions applicable for this shipment.

The solution: open the packages and take the correct decision following a hand search and visual inspection. Let’s leave the practical infeasibility of this to one side. We can all remember the lively discussion that took place about the opening of air cargo shipments to check for explosives. Not a sensible choice. (I have always been very surprised by the requirement to open a shipment to check for explosives or IED’s. Indeed, you find out very quickly if there are explosives/IED’s in a shipment, but it is a far from popular method with the inspectors who have to open the shipment.)

Solution?

There are, however, some developments that could bring a solution. The

UK Civil Aviation Authority published in October 2014 the results of an investigation with the encouraging title: “The Detection of Lithium Cells and Batteries through X-ray Screening”. It involves the development of a software algorithm to discover Lithium batteries in airfreight with high probability and a low percentage of false alarms. This method uses information from a dual view X-ray whereby discovering the atomic number (Z) of a substance.

The atomic number indicates the number of protons in the core of an atom; an element’s unique identification. Of course, this reminds us all of the periodic table, in which all known elements are arranged by atomic number. (Li is the third element after H (hydrogen) and He (helium)).

False alarm The results of this study proved that the automatic tracing of Lithium batteries was especially successful in bulk packaging of C and D type Li-metal batteries (success rate >70%) and with a low ratio of false alarms (<10%). For

other Li-batteries the success rate was significantly lower (between 40% and 60%). The difference between bulk packaging Li-batteries and alkaline and other non Li-batteries was not a success. Given the fact that the incorrect declaring of bulk packaged large Li-batteries (type C and D) for air carriage forms the greatest risk factor, the results of the study are very encouraging. It would seem to be just a question of time before an X-ray can tell us what sort of battery the X-ray operator is seeing on his screen. That will undoubtedly assist the training of the consignor.

PMT info@cargosecurity.nl www.cargosecurity.nl

fterpstra@clarox.nl www.clarox.nl

Security is still underestimated on the digital highway

W

hy is a digital driving licence important? Everybody knows that a driving licence is required to drive a vehicle and to participate in road traffic.

Participating on the digital highway does not yet require a qualification. But are you aware of all the risks and do you know how to act securely in digital traffic? Are your employees aware of the most important concepts for daily safe IT use? Are they aware of the concept of privacy and the new law on data leaks? Do they recognise dangers and act accordingly?

Data breaches and the Law on Privacy Recently more than 700 pages of confidential Europol files were on the internet for anyone to access. The investigative television program Zembla found the pages on a back up disk that was connected to the internet. A salient detail: access to the device was protected with a standard password that was easily found on the internet or which could even have been guessed.

I speak to more and more people in the air cargo sector whose computer, laptop or mobile phone has been hacked or infected with ransomware or other viruses. Investment in Security and Privacy skills and knowledge is more important now than ever before. Since 2016 it has been compulsory for organisations to actively report data breaches. Mistakes in this area can result in major financial losses. A data leak is when a breach in the security of personal data has occurred (as referred to in Article 13 of the Law Protecting Personal Data). The personal data details are exposed to loss or to unlawful processing after a breach – security measures should have protected against this.

Cyber Security

Frank Terpstra Clarox

own organisation. You cannot defend yourself if you are not aware of where you are vulnerable. An organization should also invest in an information security policy. This policy can be translated into a plan detailing, for instance, how access rights and authorisation management are organised, how incidents are to be dealt with and how data is protected.

The person: both the weakest and strongest link A person is one of the most important links when dealing with information security in an office. A person is often the weakest link but, if he knows what to do, he can also be the strongest link. Information security is vital for an organisation. Loss of, or damage to, information can endanger the future continuation of the operation if it is no longer compliant with laws and regulations and the organisation’s image can be harmed. Information protection is, to a great extent, dependent upon the behaviour of employees. How do employees deal with information? If you want to avoid undesirable behaviour in your organization and ensure correct behaviour, it is time to initiate a Security Awareness Program.

Security & Privacy Awareness Clarox has had a Security & Privacy awareness module specially developed for the Air Cargo, Transport and Logistics sector. This training is for everyone who works with personal data and/or other confidential data. In cooperation with PMT we will offer this training by means of e-Learning and it can be concluded with a European recognised examination.

For more information (under no obligation), please feel free to make contact with me. I will be happy to help you further.

Fines increasing When a company fails to report a data breach to the Dutch Data Protection Agency (DPA), it can be fined up to max.

Euro 820,000. The maximum fine will be increased from 25 May 2018 to as much as 20 million Euros or 4% of the company’s worldwide annual turnover.

Recognising risks To avoid such fines, it is important that an organisation recognises and controls their own risks. It should be clear where the organisation’s “crown jewels” are located, what threats there are to this crown jewel data and how the data is protected. It is, as it were, a thermometer in one’s

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Airports

The Schiphol Group targets pharma To achieve further growth, Amsterdam Airport Schiphol needs to target new markets. One of Schiphol’s ambitions is to position itself as the European hub for the pharmaceutical industry. Jonas Stekelenburg, Cargo director of Schiphol Group, explains why.

Text Schiphol Cargo

A

ir freight accounts for a quarter of Schiphol’s contribution to the country’s GDP. And of the 1.6 million tonnes handled annually, nearly five percent comprises pharmaceutical products. Add to this the high value and volume density of pharmaceutical products and the conclusion is clear: the handling of pharmaceuticals is profitable. Reason for Schiphol Group to further expand the Pharma Gateway Amsterdam programme, launched earlier this year with the aim of making Schiphol the preferred airport for pharmaceuticals.

According to Van Stekelenburg, all the elements are present to facilitate further expansion. “Schiphol is a high-quality airport with an outstanding network of destinations and hinterland connections. And it has an excellent reputation in terms of

Diploma When asked about the status of Pharma Gateway Amsterdam, Van Stekelenburg replies that bidding parties must first become IATA- certified. “Within the air freight sector, the pharma segment has stringent and specific demands in terms of handling. Through the certification, the party proves that it is capable to receive and handle pharmaceuticals and that it has implemented the required checks to guarantee quality.

Important, because the pharmaceutical industry wants to increase its control over how their products are shipped across the world: safely and well-cared for. But they also want to know exactly where the cargo is at the click of a mouse. As Pharma Gateway Amsterdam, we aim to deliver on that promise.”

the sharing of underlying data.”

Van Stekelenburg however is fully confident about a positive outcome.

“We have proven that we can achieve goals as a community. Recently, we managed to reduce the number of airside import-truck movements by 30%. The Schiphol cargo community also played a key role in that success.”

‘Schiphol is a high-quality airport with an outstanding network of destinations and hinterland connections. And it has an excellent reputation in terms of quickly handling freight, also when customs clearance comes into play’

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quickly handling freight, also when customs clearance comes into play.”

What helps is that thirteen parties, including KLM, handling company DNATA, freight agent VCK Logistics and carrier Nouwens are closely involved in this pioneering initiative.

That Schiphol Group is taking the lead is not surprising. Stekelenburg: “As the airport operator, Schiphol Group stands above the parties and focuses on the general interests of the airport on the whole.”

Constant quality Schiphol Group is currently still working hard on improvements though, continues Van Stekelenburg. “Bringing the quality and transparency up to standard through a quality programme and IT systems is relatively straightforward when one player is involved. But things become more complicated when various parties are transferring pharmaceutical products to each other. What matters is a uniform, constant quality, but also

Amsterdam Airport Schiphol Department Cargo Head of Cargo Mr. Jonas van Stekelenburg T +31 (0)20 601 45 30 E cargo@schiphol.nl I www.schipholcargoworld.com

How do participants feel about PGA? Renate de Walle

Air France KLM Martinair Cargo To be the frontrunner in carrying shipments that are time and temperature sensitive involves not only listening to customers and continuous improvement, but also especially good and effective cooperation with the various chain partners. This, combined with increasingly stricter regulations, makes effective cooperation within the chain a prerequisite in order to be able to guarantee product integrity for pharmaceutical products.

Besides a “standard” certification norm, the PGA is particularly targeting Schiphol’s expansion into becoming the best European pharmaceutical gateway.

As well as international marketing and communication, the PGA is focusing on quality assurance and the integration of knowledge and innovation. The PGA is a unique cooperation of various chain partners wishing to simplify and improve the supply chain to and from Schiphol. The platform is a strong ‘enabler’ and a ‘must’ for Air France KLM Martinair Cargo when you want to make a significant contribution.

Robert Kleppers

Jan de Rijk Logistics Pharmaceuticals are products requiring excellent cooperation between the partners in the logistics chain.

Without cooperation it cannot be guaranteed that a product will arrive

intact at its final destination. This cooperation is at the core of PGA and, in our eyes, makes this project very valuable for the pharmaceutical industry. PGA is an expansion of the total temperature controlled services offered by Jan de Rijk Logistics that begins at the airport and continues through distribution and storage until home delivery to the patient. “The law of evolution is that the ones that can adapt will survive”. In the case of pharmaceuticals the selection criterium is quality. Participation in PGA means you are with the frontrunners in striving for quality.

John Twisk

CyberFreight We are participating with PGA for two main reasons. The first is that we, as pharmaceutical specialists, wish to offer certified and innovative logistic solutions to our customers. To be able to do this for the air carriage sector, we need an Airport Community that not only shares this aim but can also execute it. As a logistics service provider, we cannot do without qualified airlines, truckers and handling agents.

It is also important for the mainport position of Schiphol. Brussels and Frankfurt are both ambitious in the pharmaceutical logistics area. Schiphol must not be left behind. By bundling our strengths in the PGA, and with the help of a very broad network, Schiphol can become the preferred Pharma Hub. We should not look only at certified

solutions, we must show that in the area of innovation we are ahead of the other airports. More participants in the PGA will mean that Schiphol can offer more lanes with the IATA CEIV Pharma standard. PGA has embraced this standard to be able to guarantee standardized, high quality carriage of medicines by air.

Ouke Koet Swissport

We are participating because we see an opportunity for Schiphol to become a pharmaceutical hub and to demonstrate the quality we deliver at Schiphol. The greatest advantage is in the cooperative character and the sharing of best practice. It is important that more parties join so that quality will spread like an oil slick.

Airlines can publicize the product worldwide. Participating in PGA offers an opportunity to improve quality and together market partners will offer a better product.

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Data sharing

Interview met programmamanager NLIP Michiel Haarman:

‘Met iSHARE gaan we het verschil maken’ Logistiek Nederland wil over 4 jaar de eerste positie op de World Logistics Performance index bekleden, en tegelijkertijd 68.700 ton CO2 reduceren of voorkomen. Programmanager Michiel Haarman van het Neutraal Logistiek Informatie Platform (NLIP) over hoe de sector moet veranderen om dat te halen.

Tekst iSHARE Fotografie iSHARE

M

ichiel Haarman heeft grote plannen. In 2015 trad hij aan als programmamanager van NLIP. Een interview over passie, innovatie en een andere kijk op data delen.

Wat doet het Neutraal Logistiek Informatie Platform?

Wij zijn hét platform ter bevordering

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Michiel Haarman

van data delen in de logistiek. Dat doen wij binnen het programma van de Topsector Logistiek, dit is een samenwerking tussen bedrijven, overheid en kennisinstellingen met als doelstelling de Nederlandse logistiek zo sterk mogelijk te maken. Door drempels weg te nemen, projecten en initiatieven voor data delen te initiëren en te stimuleren, wil NLIP de

positie van Nederland als logistieke topspeler versterken.

Is het werk van NLIP wel nodig? Er wordt toch al data gedeeld in de sector?

Data delen gebeurt weliswaar op grote schaal, maar dat is vooral met de directe business partners, minder met partijen ‘verderop’ in de keten

die we misschien minder goed kennen. Er valt nog een wereld te winnen wanneer ook dat op een simpele, veilige en gecontroleerde manier kan.

Nieuwe ketens kunnen dan ad hoc ontstaan, evenals nieuwe business partnerships, waarbij IT minder een belemmering is geworden. Hierdoor creëren we kansen voor zowel individuele bedrijven als de sector als geheel om processen efficiënter in te richten, kosten en tijd te besparen, de internationale concurrentie voor te blijven en de druk op onze infrastructuur en milieu te verminderen.

Hoe zie je data delen met partijen verderop in de keten concreet voor je?

Het is een andere kijk op data delen.

Niet beperkt tot een volgende schakel in de keten, zoals we dat nu doen.

Partijen zouden binnen communities op basis van relevantie moeten kunnen samenwerken en data delen, en ook met de partners van hun partners, zonder dat ze die zelf direct kennen. Ik realiseer me dat dat best een ingewikkelde stap is voor een sector die heel concurrerend is en waar de marges onder druk staan.

Want waarom zou je data delen met iemand, die misschien wel een concurrent is? En wat doet die ermee?

En hoe houd je de controle?

‘Het iSHARE afsprakenstelsel zorgt ervoor dat je als eigenaar van data te allen tijde de zekerheid hebt dat jouw data alleen wordt ontsloten aan partijen die je vertrouwt’ Daarom ben ik bijzonder gelukkig met iSHARE, een project van het NLIP dat aan betekenis aan het winnen is. Innovatief, omdat we met de uitkomsten van het project de ‘andere manier van data delen’ gaan faciliteren. We gaan het met iSHARE mogelijk maken dat je ook data kunt delen met partijen verderop in de keten, met partijen waar je eerder geen zaken mee deed. Terwijl je volledige controle houdt op wie welke data kan zien, waarvoor en voor hoe lang.

Wat houdt iSHARE in?

Een community waarin bekende en onbekende partijen met elkaar data delen, bestaat bij de gratie van vertrouwen. En voor vertrouwen heb je een heel belangrijke bouwsteen nodig, namelijk: eenduidige afspraken over identificatie, authenticatie en autorisatie. En dat is waar het iSHAREproject in gaat voorzien.

Het iSHARE-afsprakenstelsel zorgt ervoor dat je als eigenaar van data te allen tijde de zekerheid hebt dat jouw data alleen wordt ontsloten aan partijen die je vertrouwt, dat zij alleen zien wat jij wilt dat ze zien en dat je altijd kunt besluiten om de toegang tot jouw data ook weer dicht te zetten. Omdat we binnen het afsprakenstelsel ook gaan vastleggen hoe je rechten kunt delegeren, kunnen partijen straks ook data uitwisselen met partijen die ze nu nog niet kennen. Ik verwacht dat de impact van iSHARE op de logistieke sector groot zal zijn.

Kun je voorbeelden noemen van hoe iSHARE in de praktijk gaat werken?

Met behulp van iSHARE kan een binnenschipper straks op een veilige en gecontroleerde manier locatie-, lading- en reisgegevens delen met bijvoorbeeld een andere schipper, rederij of binnenvaartterminal. Een transporteur checkt of de lading van een klant meekan met een truck van een collega transporteur. Een community systeem kan met behulp van iSHARE identiteiten van andere

community systemen vertrouwen.

Of een luchtvaartmaatschappij of terminal kan met iSHARE correcties in aangeleverde data real-time laten goedkeuren door een verlader.

Een kleine greep uit een breed scala aan voorbeelden waarbij iSHARE bijdraagt aan het delen van data met derden.

‘WhatsApp, Facebook en email begonnen ook bij een kleine groep’ Wat is het directe belang van iSHARE voor een logistiek bedrijf?

In mijn toekomstbeeld maakt straks elke partij in de logistieke sector, van groot tot klein, gebruik van iSHARE, waardoor het voor iedereen makkelijker wordt om met iedereen veilig en gecontroleerd zaken te doen. Gelukkig zal niet iedereen zich daarvan bewust hoeven te zijn. iSHARE zal standaard in logistieke software worden ingebouwd. Individuele organisaties zullen daarmee enorme efficiëntieverbetering en tijdswinst realiseren en kosten besparen. Bovendien creëert het aangaan van nieuwe business relaties kansen voor nieuwe proposities.

Wanneer is iSHARE beschikbaar?

We hebben zojuist de marktverkenning afgerond. En die ziet er heel positief uit. De behoefte uit de markt blijkt er te zijn. Heel groot zelfs, want we hebben veel organisaties die zich

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hebben gemeld met een specifiek operationeel probleem waarbij iSHARE zou kunnen helpen. Op basis van deze eerste problemen ontwerpt de sector zelf hoe iSHARE er bij de geboorte uit komt te zien om telkens hetzelfde probleem op te lossen voor al deze partijen, namelijk: simpeler, veiliger en met meer controle over de data.

‘iSHARE zal standaard in logistieke software worden ingebouwd.

Individuele organisaties zullen daarmee enorme efficiëntieverbetering en tijdswinst realiseren en kosten besparen’ In 2017 gaan we het iSHARE-afsprakenstelsel samen met een aantal logistieke partijen en hun klanten in elkaar zetten, toetsen aan de praktijk en implementeren. Vanaf januari 2018 is iSHARE beschikbaar voor de gehele sector.

Pittig ambitieus plan, hoe zorg je ervoor dat iedereen in de sector iSHARE gaat gebruiken?

Ik realiseer me dat we ambitieus zijn, en dat er nog hard gewerkt moet worden voordat we volledige adoptie bereiken in de sector. Maar dat begint met een kopgroep van spelers die het belang van iSHARE onderkennen en bereid zijn om tijd en kennis in te brengen om hiermee een generieke sectoroplossing te ontwikkelen.

Daarna volgen andere groepen. Zo gaat het altijd met grote veranderingen. WhatsApp, Facebook en email begonnen ook bij een kleine groep. Ik heb er het volste vertrouwen in dat we gaan slagen. De aanpak van het project gaat voor het succes zorgen.

Ik geloof dat elke innovatie begint met ‘relevantie’. Als maar genoeg partijen dit willen, dan volgt de rest.

En relevantie wordt geborgd doordat we van meet af aan logistieke partijen die een goede afspiegeling zijn van de sector, laten meepraten en meedenken over het afsprakenstelsel.

Daarmee borgen we dat het afsprakenstelsel aansluit bij de praktijk, en ook wordt gebruikt.

Ik ben blij dat inmiddels een aantal belangrijke logistieke partijen, waaronderKLM Cargo, Rijkswaterstaat, Douane, Portbase en Transfollow, zich heeft gemeld en het initiatief tot het het ontwikkelen van iSHARE steunt.

Tot slot, wanneer is iSHARE voor jou een succesvol project?

Ik ben pas tevreden als we iedereen in de sector met iSHARE weten te bereiken. Bedrijven van groot tot klein, overheid, alle modaliteiten en uiteraard een goede aansluiting met wat er in het buitenland gebeurt. En dat hangt samen met mijn passie. Dat ik met mijn keuzes, acties en inzet daadwerkelijk het verschil kan maken voor individuele logistieke bedrijven en voor de sector als geheel. En dat ik bovendien een flinke steen kan bijdragen aan een duurzamere wereld.

iSHARE-projectorganisatie F-Tower, WTC Strawinskylaan 381 1077 XX AMSTERDAM +31 20 6580651 info@ishare-project.org www.ishare-project.org

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Customs

General Program Manager Renate de Vries on

Schiphol SmartGate Cargo The official opening of the Joint Inspection Center on 22 November was the culmination of the multi-year program Schiphol SmartGate Cargo. The key to the success of SmartGate was the cooperation between both public and private parties and between the government services themselves. General Program Manager Renate de Vries on the program.

Renate de Vries

Why did the Schiphol SmartGate Cargo (SSGC) program come about? e wanted to stimulate the competitive position of the air cargo industry at Schiphol as well as economic growth.

Cooperation not only between government and business but also between the government services themselves.

In order to be able to achieve this, cargo must be traceable at all times.

We can then undertake the various checks during the quieter moments in the logistics process and in the best possible way. This gives Schiphol, as mainport, an enormous advantage over other airports, where checks take longer as the local government organizations all operate independently. There are certainly other customs services in the world with great IT structures or offering excellent service, but it is the cooperation between Schiphol and commercial parties which makes this program unique. Nowhere

W

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else do government and business work together on such a scale in this specific area. Alongside increased security, faster throughput of trade has a positive influence on the competitive position.

It is a bold ambition with many stakeholders. Who is working on SmartGate?

Back in 2006 the Security and Public Safety Schiphol (BPVS) structure at Schiphol discussed air cargo related developments aimed at optimising the whole process around air cargo.

These initiatives were combined in the Schiphol SmartGate Cargo (SSGC) in 2009 as a joint initiative of the Netherlands Tax and Customs Administration, Air Cargo Netherlands (ACN) and Amsterdam Airport Schiphol (AAS). As the program quickly grew, home carrier KLM joined to take on a pioneering role and to be an active partner in the steering group. KLM is the forerunner

in the E-Airwaybill program and is active in the further digitalization of the sector. By exchanging information with the government, KLM has both speeded up and simplified processes.

Can you say more about the cooperation between the various government services?

I would like to emphasise in particular the importance of sharing knowledge and know-how between parties. The program came into being because of the cooperative basis formed between the authorities: the Human Environment and Transport Inspectorate (ILT), the Royal Netherlands Marechaussee (Military Constabulary), the Authority for Nuclear Safety and Radiation Protection (ANVS) and the Netherlands Food and Consumer Product Safety Authority (NVWA) and then expanded further with Schipholâ&#x20AC;&#x2122;s business community. We joined forces without taking over each otherâ&#x20AC;&#x2122;s responsibili-

ties. This is not purely a speech from the stage: we have realized this cooperation as enforcement bodies. This visible cooperation was the stimulus for business to get involved.

In practice, how is air cargo handled with SmartGate?

By designing an integrated control process in which Customs fills the role of director of information for the varying government parties, goods that are crossing the EU external border (incoming and outgoing) via Schiphol can be quickly and comprehensively checked. The registration and selection of cargo movements takes place at a central point (Customs National Tactical Centre). On the basis of advance information the various government checks are managed from here. A separation is made between the ‘green’ (known) flow of goods which are not directly marked as being potential risks and can continue on their way unhindered, and a ‘red’ stream which will be checked at only one checking moment (a one-stop shop).

Time is money in business. A safe, sound goods stream is top priority for the government authorities. These are not opposing interests. If the cargo stream is not safe and secure, then government authorities have to undertake checks at some stage during the transport chain. This results in delays. The danger is that airlines and carriers subsequently would begin to cold-shoulder Schiphol.

What is the function of the Joint Inspection Centre (JIC) in SmartGate?

The JIC plays a central role in one-stop shop checks. With a gross floor area of about 6,300 m2, the building offers facilities for the various government authorities. Inside the building are, amongst other things, an expedition floor, a scanning hall, storage and investigation areas, a garage for scanning vehicles, offices, a quarantine space for small animals, a dangerous goods store, a phytosanitary space and a multi-discipline training centre. The building has been designed so that checks of goods can, thanks to innovative techniques, be integrated as far as possible in the quieter moments in the logistics stream. There were a few years between concept development and actual commissioning. This was due to our aim of sustainability. We wanted to be sure that the JIC would

not be outdated by the time of the opening. Many permits had to be approved due to the specialist facilities.

During the preparations and build, we had to be able to react in a relatively simple way to unforeseen community developments. Think, for instance, of the growing threat of international terrorist movements.

Apart from the JIC, what else is in the program?

After we had designed the basis, the business world advised that a logical moment for checks for the outgoing cargo steam would be in their own warehouses. Together we brainstormed this and, as the government enforcing authority, we added two

What does it mean for “The Netherlands Ltd”?

Ultimately, all parties profit from the program. Logistics is a spearhead in the current Cabinet’s policy, and it’s a pillar of “The Netherlands Ltd.” Our reputation as a trading nation is of vital importance. If we drop the ball, we feel it straight away. Take a perishable product like cut flowers, one of our foremost export products. Flowers are almost always transported by air and not by road or sea. Lose such a stream to a foreign airport because things are more efficiently organised there and it is a sensitive loss – also with respect to employment. With the SmartGate initiative, we are supporting a better business climate so that our country

King Willem Alexander opens the Joint Inspection Centre

modalities into SmartGate. The socalled ‘remote scanning’ involves scanning in one’s own warehouse. Where, independent of time and place, the images generated in their warehouse can be read out at a distance and the goods released. These images have dual uses: aviation security checks as well as Customs checks. Of course, this possibility is linked to various prerequisites that have to be lodged in advance. If you cannot satisfy the necessary requirements, you cannot make use of this possibility. Customs retains the right to visit the warehouse. We have also placed nuclear detection gates at all of the handling agents at Schiphol so that all outgoing cargo is checked. All signals come into one central point and, using the available information, an assessment is made as to whether additional inspections are necessary.

SmartGate is an extensive program!

can again rise a few steps on the ladder of international business.

All the involved parties deserve a huge compliment for making a success of such a large and multi-layered program.

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Community Information Platform 44 CARGO

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Information flow coordi In 2015, the Smart Cargo Mainport program was launched under the leadership of Schiphol. Cargonaut, as the coordinator of the flow of air cargo information, is very closely involved for both the benefit of the community and Schipholâ&#x20AC;&#x2122;s position. Last year Cargonaut, together with various other participants in the Mainport program, contributed to the establishment of this new partnership and organization. The aim of the program is to improve and speed up transport chains resulting in an efficient and qualitative airport.

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s coordinator of the information flows at Schiphol, Cargonaut organized new processes and information services. Together the market and government are aiming for 100% data coverage for Schiphol. Cargonaut is also taking care of the updated design of the community information platform. Tracking and tracing throughout the whole chain will be possible with this platform.

100% data coverage: insights with Cargonautâ&#x20AC;&#x2122;s help Data coverage at 100% is necessary to create and optimize chain processes, both quantitative and qualitative. Think about insights into the manifests of all inbound and outbound flights. Trends become visible in statistical reports.

Schiphol, as the airport operator, would subsequently be able to take decisions in dialogue with the community.

100% data coverage, will give forwarders improved status information in eCargo receipts and eLink allowing the export process to run more smoothly.

With comprehensive information, Scanlog will provide further insights and information. This will be beneficial for the handling agents and Customs.

100% data coverage is a precondition for the success of the program. Only with this precondition can chain processes be optimized. Current chain processes need to be reviewed in order to be able to distinguish ourselves as Schiphol. Existing chains can be improved in new ways and put into operation.

inator ‘Increasing cargo volumes, combined with a rising number of passengers, mean that we must make efficient use of existing resources’ The Schiphol information exchange: everyone working with one community information platform Cargonaut manages the air cargo community information platform at Schiphol. All data from the air cargo chain is collected in this platform and reused. In order to ensure that everyone can participate by using the latest technology we ensure that the platform is ‘open’. Links to other platforms or systems is therefore made simpler and flexible and applications can be performed much faster. Customers can also develop links themselves in their systems with our API’s (Application Programming Interface) and so feed their own system with data from the communal platform.

Maximum value for the whole chain Ultimately all the activities ensure an optimal flow. With this we can improve and enhance the competitive position of Schiphol as a worldwide cargo hub.

Digitalization is an important weapon in the battle. That is also our contribution to the Smart Cargo Mainport Program.

Increasing cargo volumes, combined with a rising number of passengers, mean that we must make efficient use of existing resources. Using predictable processes more volume can be processed with the same footprint. This can generate more business for the various chain parties resulting in a better position for Schiphol. And so together we come full circle.

Text Cargonaut Nederland B.V. Photography Shooting Artists

Cargonaut Nederland B.V. Flamingoweg 54 1118 EG SCHIPHOL Tel. +31 (0)20 653 0204 sales@cargonaut.nl www.cargonaut.nl

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Business Analytics

Business Analyticsâ&#x20AC;&#x2122; breakthrough in the Logistics chain Focussed process-oriented approach with rapid payback Business intelligence, big data, descriptive analytics are all terms that in recent years have been appearing in logistics trade magazines. Districon has been active in this field for years and has seen a positive turning point. After years of caution, companies in the logistics sector are beginning to recognise its value.

Niels Veenman

Logistics overflowing with interesting data e have known for years that the logistics chain, like none other, is overflowing with data. The heavy usage of data systems from ERP, WMS, TMS to planning systems means there is transactional data, master data, status information and time stamps throughout the chain. What do we do with all this data?

The majority of companies work mainly with periodic standard reports of sub-processes to evaluate performance reactively and/or to make action lists. Excel is still used to gather daily control information and combine various data sources into management information. Although this approach can work quite well, it is often labour-intensive as well as being complex and prone to errors.

In recent years, companies in the logistics chain have increasingly been recognising and utilising the power of data. In the logistics chain, where margins are small, it is crucial that the information gained from data is used to help maintain profit sensitivity, improve it where possible and offer added value to customers.

W

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Descriptive Analytics Descriptive analytics analyses past data to gain insights for future action. Descriptive analytics looks at historical performance and through deep analysis of the data, ascertains the reasons for success or failure. This provides a better understanding of the backdrop to performance. Descriptive analytics differs from other analytic forms by investigating the

Frank Rotteveel

underlying relationships between various data sources and components.

How to begin with descriptive analytics?

Many logistics companies often want to do â&#x20AC;&#x2DC;somethingâ&#x20AC;&#x2122; with business intelligence and use the extensive data available, but often do not (yet) know how to do this. In this article, we would like to share six tips with you: 1. Think process-oriented (and not IT-oriented) A solid knowledge of logistic processes means that real management questions can be answered. This goes further than standard reports. Often, a project team will have prepared a

list of requests without having asked any relevant questions and without having logistical knowledge.

This results in the prepared reports and overviews not meeting the users’ needs and therefore not being used. Again, answers are sought in Excel. Don’t turn a Descriptive Analytics process into an IT project, but have business at the helm!

2. Look at complete processes Logistical processes comprise enormous amounts of data, often available from many different systems. It is very easy to link all these data sources using current technology. You can reveal the whole chain-wide process from production to customer. The term ‘control tower’ becomes reality. We can generate insights for our customers so that, for instance, production in Asia can be linked to the planning and contents of sea containers. These can then be linked to the planning and performance management of physical operations in Europe.

Chain-wide insights and cost savings become reality.

3. Repetitious work, use short sprints Scrum and agility are terms that are often used when it comes to implementing IT solutions. In the Business Intelligence area, it is certainly a very effective approach. At the start of a project, the various data sources must be defined as well as the most important management questions the client would like answered. Within a few weeks a first rough version of the dashboard is made and this is used as the basis for further discussion. Often this first version provides so many insights that we are able to define lots of new possibilities.

In weekly sprints the dashboard is further developed and, on average, within two months the dashboard is fully developed and ready for operational use.

4. Use detailed data Many reports contain only aggregated data when actually so much interesting information lies in the detail: the devil is in the detail. Aggregation draws the power out of the data! If the report delivers a Key Performance Indicator (KPI), then you will want to know this at once by being able to chart the underlying reasons for it and commence action. Immediate improvement. With intuitive dashboards this becomes easier for every manager.

5. Use unexpected (open) data Many logistical processes use data, or are dependent upon data, that is not always saved in the usual ERP, WMS or TMS systems. Think, for instance, of rate cards for logistic service providers or sea freight timetables. For some sectors, for

example, the weather forecast is a very important factor for planning of volumes and/or activities. This information can now be uploaded into a dashboard easily, directly, daily and automatically. Practical applications are, for instance, Cost to Serve dashboards where tariffs are combined with transactional data from the ERP and transport systems. Direct daily insights into costs per customer, product, transport lane, etc.

And, therefore, also direct intervention should a situation eventuate requiring this.

‘In recent years, companies in the logistics chain have been increasingly utilising the power of data’ 6. U se Descriptive Analytics in your Account Management process A good dashboard brings structure and balance to periodic meetings or a contract review. Performance is discussed based on facts and underlying causes can be displayed.

The Plan Do Check Act (PDCA) cycle makes the most of this. Indeed the logistics service provider has an enormous source of information. All orders in the physical operation are clearly transparent including all time stamps (such as scans): inbound from picking up, packing and outbound up to and including shipping. The logistics service provider also has insight into all stocks and stock movements. This gives a perfect opportunity to the service provider to provide a customer with added value. By monitoring obsolete stock and mapping useless transactions, the logistics service provider can work with the customer on possibilities for improving margins. A ‘must’ for a good continuous improvement process.

Want to know more?

Frank Rotteveel

Niels Veenman

f.rotteveel@districon.nl

n.veenman@districon.nl

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Customs

Sander van Lent Customs Knowledge B.V. sander.vanlent@douaneadvies.nl

AEO and Monitoring: Risk or Opportunity?

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our company has had an Authorised Economic Operator licence for some years. You will have experienced desk audits and possibly even a field inspection. To complete these successfully, you must show the Customs auditiors that you are in control. You must be seen to be monitoring AEO processes. Most companies see this as a necessary evil. Companies want to focus on core business.

“Customs”, let alone AEO monitoring, is not considered core business. But, delve into the philosophy behind AEO and it becomes logical to fulfill the AEO monitoring requirements as this actually offers your company opportunities. In this article I shall go into the opportunities that AEO monitoring can offer to your company.

From risk (control) to opportunities AEO has focused on risk management since its introduction.

Any good system begins with risk analysis. This is also the case with AEO monitoring (effectively, companies must now perform the checks themselves that previously Customs undertook). Once risks have been determined, steps can be initiated to prevent them occurring (procedures, work instructions, internal controls, etc.). Should a risk situation actually occur, it is not only recognized but measures are in place to both correct it and prevent re-occurrence. In short, a comprehensive risk management system using the ‘plan do check act” cycle. AEOs often do this because it is required but without really looking into the reasons for it. This is the crux of getting to the opportunities offered by AEO monitoring.

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Security in the logistics chain and Vision 2020 The AEO systematic was established following the attacks of “9/11”. Governments around the world saw the need to undertake advance security screening of parties in the logistics chain. By offering financial and operational advantages to screened and known parties, the enforcing authorities

received and keep control of these “approved” parties. This form of horizontal supervision has continued to increase in recent years.

Last year the Netherlands Customs authority published ‘Vision 2020’ its long-term vision report. It seems that trade facilitation will only be possible for companies holding an AEO licence. A company without an AEO licence will be subject to delays in the logistics process. Simplified facilitation will be restricted to companies with an AEO licence. In short, AEO – and compulsory monitoring – is a must.

Now the opportunities The first opportunity lies in Vision 2020. By satisfying Customs’ monitoring requirements, you can, at the touch of a button, show Customs that you are in control and pass the annual AEO desk audit. You retain your AEO licence and have unhindered access to the logistic chain. This could be a requirement of your chain partners but it is also something that you can offer: logistics without delays and a consistent (high) level of service.

Your company distinguishes itself in this way above companies without an AEO licence and those that have lost their AEO status due to inadequate monitoring.

Internal AEO monitoring also provides opportunities. In order to comply with Customs’ requirements during the compulsory desk audit, it is very possible that you might have to search for some information. This can be both timeconsuming and frustrating but necessary to comply with the annual information requests (not to mention the requirements Customs have for a field inspection (a minimum of one every five years)). If, however, you have set up an effectively functioning monitoring system then you will be continuously satisfying Customs’ monitoring requirements.

â&#x20AC;&#x2DC;It is not unlikely that you may have to search out something or other in order to be able to comply with Customs requirements in view of the compulsory desk auditâ&#x20AC;&#x2122;

Run one annual report and you have complied with Customsâ&#x20AC;&#x2122; requirements. Your company is always in control. Your customs section can focus on its work throughout the year whilst simultaneously keeping up with AEO requirements.

Should Customs request information, the report can be forwarded to Customs without any interruption to normal operations.

Companies often already have quality management systems in place. Maintenance of the AEO licence, controlling and, if necessary, correcting processes is actually nothing more than quality management. If possible, it is wise to link to AEO to existing quality management methods. In this way, all relevant sections of the company become involved in AEO monitoring. AEO is not solely a Customs matter.

Knowledge and expertise With the introduction of the Union Customs Code on 1 May 2016, every AEO must comply with educational requirements for employees. The legislation, however, does not clearly define what this requirement precisely encompasses and we will have to watch developments in the years ahead. However, with a monitoring system, your (customs) employees will, in any case, be further advanced than without a system. Employees literally have to become more capable due to the demands placed on them by the AEO. Monitoring systems have been developed with an in-built e-learning module testing employees on their knowledge.

One system integrating monitoring and employee training.

In practice, monitoring highlights the activities of the customs section and brings it into the main stream of the business. Traditionally the customs section was slightly obscure and relatively unknown to the rest of the company. The introduction of monitoring systems results in higher visibility.

The reporting tool presents management with a dashboard of financial risks. Even more important, it can highlight possible cost savings along with a prognosis as to whether these would be achievable on a monthly basis.

Smart automated solutions can set a company apart from the competition. And competition is fierce. AEO monitoring can be completely automated (e.g. by using an AEO control framework). All the opportunities mentioned in this article come together in a digital AEO platform: monitoring at the touch of a button; required input being delivered by all sections; employees receiving training and management and/or Customs being provided with reports at the end of a monitoring period. In this way, the company stays in control and ahead of the competition.

Conclusion AEO and the relevant monitoring are a necessity. There are plenty of reasons to see monitoring as an opportunity for your company. An effective monitoring model can give a company active in the logistical chain a solid competitive edge.

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Customs

Five myths about product classification Text Richard Groenendijk

The amount of customs duties companies pay for the import or export of goods depends on the commodity codes allocated to the products. In practice, the classification process does not receive the attention it deserves which can result in a high risk of heavy fines or strict sanctions. Richard Groenendijk, General Manager of AEB Nederland, highlights the five most common myths about product classification.

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id you know that the volume of EU trade with the rest of the world totaled at EUR 2,851 million in 2010? This is the sum of all imports and exports which Eurostat calculated based on the 2010 data.

These large movements of goods can only be monitored by the customs offices in each of the 27 member states when uniform processes are in place. Therefore, all goods are assigned commodity codes which are defined in the Combined Nomenclature (CN).

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1. The commodity code is not all that important. We only export.

Unfortunately, it’s not at all that simple. Businesses that assign the wrong commodity codes may suffer far-reaching consequences.

That’s because the commodity code determines the applicability of bans, restrictions, and foreign trade measures such as licensing requirements. The commodity code even determines which documents need to be submitted. Providing the wrong commodity code may result in an unauthorized export or payment of the wrong customs duty. Businesses may overpay their taxes and duties as a result – or worse yet, underpay.

It may also qualify as negligent or even punishable conduct, by the way, to simply accept the customs tariff data from an upstream supplier without verifying it. The declarant or exporter is responsible for providing the correct commodity code.

‘Classification plays an important role in the approval of simplified customs procedures for, as an example, AEO certification’

You should also keep in mind when determining the commodity code that giving the wrong information to your business partners can have consequences for them – at least if they accept it without verification.

2. We’ve already assigned commodity codes to our products – that should do it.

Sadly, it does not. The number of goods and commodity groups is constantly shifting. As a result, commodity code updates are regularly announced on October 31 with effect from January 1. Often, goods are consolidated under a (sometimes new) commodity code or split up into multiple commodity codes. It’s also common for CN headings to be discontinued altogether. This requires that you reclassify your goods. It may also result in a need to adjust the authorization for simplified customs procedures.

That’s why you need to regularly review your master data to make sure your products are properly classified.

This is the only way to be sure that you’re in compliance with all customs regulations, your goods will flow smoothly, and the correct duties will be paid.

3. The responsibility for classifying new goods lies with someone else – it’s not my problem.

Large enterprises typically leave the classification of new products to their local entities. In smaller businesses, however, it is often an individual with experience and familiarity with the product who manages this task from one central location. But here, as elsewhere, a team with collective knowledge is often a quicker route to success than a solo effort. Large enterprises face their own challenges in structuring their product classification processes. There is a need for support for a centralized global product classification, the product classification has to be integrated into various system environments (ERP and customs systems) and special provisions need to be accommodated at the regional and national level. This shows that product classification is still not a seamless process is many companies.

4. There isn’t any commodity code that matches our products, so there’s no point in looking.

There is a commodity code for everything. But did you know that there are different commodity codes for used shoes, orthopedic shoes, or if the shoes contain asbestos?

This shows that precise classification is a complex task. So the rule of thumb is that when two headings apply, choose the more precise. If none of the descriptions matches the goods, choose the heading that is the closest match.

A variety of special cases complicates the classification process. Textiles are a good example: The choice of a commodity code depends on whether the clothes or bed linens are part of a set, and even the size of an article of clothing can have an effect. The classification of alcohol depends on the type of packaging, among other factors. And parts of assembled products may be classified under the finished product.

Those seeking a certain measure of legal security can contact the customs authorities for binding information about the customs classification of goods.

‘The rule of thumb is that when two headings apply, choose the more precise’

This greatly simplifies product classification – not only for new products but also for the reclassification of existing products at the start of a new year. But when all is said and done, product classification remains a very time-consuming task with an equally great potential for risk.

‘Misclassification can mean that businesses pay too little tax and may be guilty of tax evasion’ Tax evasion Commodity codes are the basis for determining import duties, import/ export restrictions, and documentation requirements. Misclassification can mean that businesses pay too much tax – if they’re lucky! If not, they may be guilty of tax evasion.

Misclassification can also result in unauthorized exports with corresponding penalties.

Businesses who want to attain the status of Authorized Economic Operator (AEO) or want to benefit from simplified customs procedures must secure proper product classification and document their product classification process. Using the incorrect commodity code can quickly lead to delays in the supply chain – often at considerable cost. Software solutions can help to support, automate, and secure the classification process.

5. Even if the commodity code is in the enterprise-wide ERP system, each country must classify products on its own.

Fortunately, this is not the case.

Global players can centralize product classification as long as they take into account national and EU-wide variances. To put it another way: the first six digits are identical worldwide.

Only the seventh and eighth digits depend on EU guidelines. When it comes to imports, the same applies to the ninth, tenth, and eleventh digits, of course.

Richard Groenendijk, General Manager, AEB

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Regulation 608/2013 from another perspective Most logistic service providers and carriers have probably had something to do with it. Unfortunately, counterfeit products are turning up in various sectors and the right holders, together with Customs, are doing everything they possibly can to curb this persistent phenomenon.

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uch has been written about Regulation 608/2013 but usually from the position of the owner of the right. This is obvious, as the owner of the right is central being the party whose interests should be protected as much as possible.

Yet there are also other parties alongside the owner of the right who deserve attention. For instance, what rights and duties does a logistic service provider have when, in many cases, he is the first to be confronted by a Customs seizure. In this piece, I will restrict myself to two important points of interest for the logistics service provider.

Always object It is important that you, as the holder of the goods or as the declarant, always lodge an objection to a seizure

by Customs on the grounds of Regulation number 608/2013. Lodge this within 10 days for general cargo and within three days for perishable goods.

If a timely objection is not made then it is presumed that permission to destroy the goods has been given. This can be very frustrating if the goods have been given up for destruction and an interested party concerned

with the shipment can, at any time, prove that the goods do not infringe intellectual property rights. Prevent the risk of you being deemed liable due to failure of duty of care. It is expected a professional service provider and/ or carrier, with his knowledge and experience, will have taken sufficient measures to protect the interests of the client. And, last but not least, directly inform your client and request a disclaimer for any liability toward the owner of the right as a result of the seizure.

Article 28 Regulation number 608/2013

Right holderâ&#x20AC;&#x2122;s liability And what if, at any time, after goods have been seized or abandoned for destruction, it is established that there was no breach of intellectual property rights? Who pays the costs of the action or the storage costs involved with the seizure and who compensates the value of the goods?

Regulation 608/2013 notes not only the rights of the right holder but also their obligations. The hunt for presumed infringements must be performed carefully to avoid unnecessary costs being incurred in the logistic process.

Claiming damages In short, an initiated procedure can be stopped after a seizure or if, at any particular moment, it is ascertained that there was no question of an infringement of intellectual property right. In such cases, pay careful attention and ask yourself if it is desirable to hold the right holder legally liable for the damages. The possibility for doing so, in any case, is at your disposal.

Intellectual property rights

Anti-Piracy Where a procedure duly initiated pursuant to this Regulation is discontinued owing to an act or omission on the part of the holder of the decision, [â&#x20AC;Śâ&#x20AC;Ś.] or where the goods in question are subsequently found not to infringe an intellectual property right, the holder of the decision shall be liable towards any holder of the goods or declarant, who has suffered damage in that regard.

Raoul Paul

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Handling Agent

Airfreight process optimization offers many opportunities Airfreight handling rates are under pressure due to competition at Schiphol. Cargo handling agents feel forced to reduce (personnel) costs and increase employees’ productivity that often results in greater (work) pressure. How can one guarantee quality at the desired level? Erwin Roeleveld of Menzies Aviation explains how they are coping with the challenge of process optimization.

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rocess optimization in airfreight. Erwin Roeleveld, Project Leader Cargo Operations of the ‘Infrastructural Management and Maintenance’ section of Menzies Aviation deals with this every day. “At Menzies, we want to deliver our customers the best possible product. We also have to keep our productivity high and costs low. At Menzies we are therefore actively busy with process optimization.”

Approach But how do you approach something like this? “On the one hand we are actively participating in various sector initiatives such as the Milkrun and eLink”, says Roeleveld. “We are closely involved in both the development and further expansion of these initiatives as they can deliver significant benefits for Menzies and other parties in the supply chain. On the other hand, we are also looking critically at our own internal processes in order to be able to implement improvements and innovations.”

‘Implementing improvements requires insight into processes and customized solutions’

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“To implement improvements and innovations, it is necessary to have an understanding of all processes and it must be possible to measure output. In order to be able to realize this, we are actively busy with digitalization. We are, for instance, developing various customized applications for internal use.

We recently updated the whole administrative process around building up cargo. This has delivered significant benefits for the operation and also offers the possibility to measure production at various points in the process.”

Menzies has also developed new software to register ULD construction. “This new database software (Cargoizer) not only gives our airline customers and Menzies itself a better insight into the building process but aims, as far as possible, to prevent ‘human’ errors during the building process”, says Roeleveld. “In addition, we use CargoHub. We use various modules in the CargoHub platform. For example, registering damage to cargo and ULD’s. Along with photographic registration, the platform gives specific insights thanks to the possibility for ‘root-cause’ investigations”. On the basis of the available information and analyses, we attempt to reduce the number of damage incidents. Our ‘tracing’ section has also been totally

digitalized with the help of the platform. Where previously they were piles of paper files, now everything is digital. This way we have more understanding of the causes of incidents and, for example, the lead-time for our service recovery plus we have more instruments at our disposal to manage quality.

Future opportunities “All in all we expect that by the optimal use of digitalization, we can increase productivity and lower costs. At the same time, we are maximalising the quality of our services”, Roeleveld concludes. “Great challenges resulting in many opportunities for the future.”

Erwin Roeleveld Project Leader Cargo Operations Menzies Aviation

More information: info@descartes.com

The Intersection of Sanctions, Sourcing, and Compliance

Column

Jos Nuijten VP Network Integration Strategy van Descartes

Profit Potential and International Trade

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lobal trade sanction policies are continually evolving, which has significant impact on trade in ever-changing ways. This evolving sanction environment forces companies to find new opportunities to stimulate growth and profit. Take Iran, for instance: Now that the economic sanctions imposed on Iran have mostly been lifted, Western companies in various industries are interested in resuming business with Iran. Interested parties are visiting the country to explore the Iranian market and research which products would be in demand.

What would an initial hypothetical sourcing visit to Iran look like? Imagine a visitor who sees a potential to sell parabolic antennas. He establishes contact with a reseller to ship a batch of antennas to, by air. Although it sounds like a simple scenario, many factors come into play, such as: • Who exactly is this hypothetically interested person?

• What does a parabolic antenna consist of?

• Can the product be used for other purposes besides receiving television broadcasts?

• How does the exporter or forwarder generate the freight documents for the airline?

• Where is the reseller located?

• Where is the product manufactured?

• Will a transit country be involved in the shipment?

are examined properly, they will be reflected in the freight documents. It adds efficiency, and allows the company to better focus on its business development. Take the example of the global Security Filings (such as ICS in Europe and AMS/ ACE in the US) for shipments being transferred to a forwarder or a carrier. For countries that impose document regulations, brokers and/or carriers must record the required information from their shippers and submit this information to the customs authorities.

A technology vendor capable of providing a multitude of options in this area, will allow companies to: • reduce the risk of doing business with parties or countries included in sanctions lists; • reduce the risk of being penalized or sanctioned; • show compliance with audit trail functionality; • align results with pre-defined parameters to retrieve information more easily and efficiently; • scale technology to growth and supporting new demands.

Complex regulations should not result in trade barriers. Appropriate systems to standardize and automate procedures will reduce complexity.

Even though most buyers and sellers mainly focus on cost reduction and on-time delivery, the majority faces a regulation dominated market that could negatively impact the company’s image and bottom line. Anticipating these risks prior to shipment and purchase, however, ensures that complex regulations don’t hurt the profit potential. Successful companies weigh the appropriate trade and sourcing factors up front, regardless of the purchase and before transaction decisions are made.

Descartes’ technology is leading where management of

Although some countries may export certain products to Iran, it does not imply that all exporters are allowed to enter into all transactions with all parties in the country, or that specific products or parts will be permitted altogether. There is a direct relation between sourcing and possible financial restraints, practical distribution and transport. If all details

sanctioned, denied, and restricted party data is concerned.

Descartes’ technology also keeps companies up to date with evolving security, as more and more countries embrace the Global Trade SAFE Framework of the WCO (World Customs Organization).

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56 56 CARGOHUB 56

CARGOHUB CARGO magazine CARGOHUB

Voor Frankfurt en Schiphol liggen de volumes al een aantal For aHeathrow, number Frankfurt, of years,Schiphol the volume at Frankfurt and Schiphol Bron: jaar op het niveau van 2006/2007. Voor Heathrow geldt has been at theenlevel of 2006/07.

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Als stagnatie we diepervooral in de komt cijfersdoor van een Schiphol duiken, zien we van dat de tegenvallende groei de stagnatie komt door5een en naar Azië vooral in de afgelopen jaar.tegenvallende groei van en naar Azië in de afgelopen 5 jaar.

Gewogen Gewogen gemiddelde Gewogen gemiddelde gemiddelde groeigroei (j.o.j.)(j.o.j.) groei (j.o.j.)

Gemiddelde gewogen volumegroei voor en na de crisis laat opvallend beeld zien Gemiddelde gewogen volumegroei voor en na de crisis Gemiddelde gewogen volumegroei voor enand na de crisis Average volume growth by weight before after the laat opvallend beeld zien 4% laat beeld zien picture crisisopvallend shows a remarkable 3% 4% 4% 2% 3% 3% 1% 2% 2% 0% 1% 1% -1% 0% 0% -1%

Bron: CBS, ABN -1% AMRO

Azië

Europa

Azië

Europa

Azië

Europa

Bron: CBS, ABN AMRO

■■■

2000-2008

■■■

2011-2016

■■■

2000-2008

■■■ ■■■

2011-2016 2000-2008

■■■

2011-2016

In de periode voor de crisis waren de goederen van en naar Source:CBS, CBS,ABN ABNAMRO AMRO Bron: Azië de aanjager van de groei, maar na de crisis zorgden ze In de periode voor de crisis waren de goederen van en naar juist voor tegenwind. period before the crisis, goods andcrisis to van Asia were In the dede periode voorvan de crisis waren defrom goederen en naar Azië aanjager de groei, maar na de zorgden ze the catalyst for growth, aftermaar the crisis they actually Azië de aanjager van debut groei, na de crisis zorgden ze juist voor tegenwind.

Azië belangrijkste oorzaak stagnatie volumegroei showed downturn. juist voora tegenwind.

Een eenduidige verklaring voor de stagnerende volumeAzië belangrijkste oorzaak stagnatie volumegroei groei van en naar het Verre Oosten is er niet. Deels kan de Asiaeenduidige is the mostverklaring important cause of the stagnation in Azië belangrijkste oorzaak stagnatie volumegroei Een voor de stagnerende volumeverklaring gezocht worden in het feit dat het verschepen volume Een eenduidige verklaring de stagnerende volumegroei vangrowth en naar het Verrevoor Oosten is er niet. Deels kan de van goederen over de zee goedkoper is geworden sinds There van is not one explanation foristhe stagnation groei en naarclear het VerreinOosten er niet.

Deels in kan de verklaring gezocht worden het feit dat het verschepen de crisis. Slowsteaming (het besparen van brandstof door volume growth from Farfeit East. partial explanation verklaring gezocht worden inthe het dat het verschepen van goederen over deand zeetogoedkoper is A geworden sinds langzamer te varen) en overcapaciteit (door steeds grotere cancrisis. be sought in thede fact that the transport ofbrandstof goods sinds bydoor sea van goederen over zee goedkoper isvan geworden de Slowsteaming (het besparen schepen en lagere volumes) zorgden namelijk voor druk op hascrisis. become since thebesparen crisis. Slowstreaming de Slowsteaming (het van brandstof door langzamer techeaper varen) en overcapaciteit (door steeds (saving grotere de prijzen in de scheepsvaart. De tarieven daalden zelfs zo fuel by sailing slower) and over capacity (through ever bigger langzamer varen) en overcapaciteit (door steeds grotere schepen entelagere volumes) zorgden namelijk voor druk op ver, dat veel bedrijven rode cijfers schreven. Met -als voorloships anden lower are,zorgden of putting pressure schepen volumes) namelijk voor drukzoop de prijzen inlagere de volumes) scheepsvaart.

Decourse, tarieven daalden zelfs pig dieptepunt- het faillissement van Hanjin tot gevolg. Maar on shipping The rates dropped so much that-als many de prijzen inprices. de scheepsvaart.

De tarieven daalden zelfs zo ver, dat veel bedrijven rode cijfers schreven.

Met voorlowereldwijd zijn de vrachtvolumes afgenomen. Zowel voor companies intofaillissement the red.cijfers Resulting also intot the recent low ver, dat veelwent bedrijven rode schreven.

Met -als voorlopig dieptepunthet van Hanjin gevolg.

Maar de scheepvaart, als voor de luchtvaart. Voor een belangrijker pointdieptepuntof the zijn bankruptcy of Hanjin. van Worldwide cargo volumes pig hetvrachtvolumes faillissement Hanjin tot gevolg.

Maar wereldwijd de afgenomen.

Zowel voor deel is de verklaring dan ook te zoeken in het feit dat de have declined. sea transport but also inbelangrijker air transwereldwijd zijnNot de vrachtvolumes afgenomen.

Zowel voor de scheepvaart, alsonly voorinde luchtvaart.

Voor een wereldhandel al een aantal jaar relatief vlak verloopt. port.

A de major contribution to luchtvaart. this is that global trade hasde been de scheepvaart, als voor Voor een deel is verklaring dan de ook te zoeken in het feitbelangrijker dat relatively for number ofjaar years. deel is deflat verklaring dan ook te zoeken hetverloopt. feit dat de wereldhandel al aeen aantal relatief in vlak Lagere groei wereldhandel wereldhandel al een aantal jaar relatief vlak verloopt.

Lower growth in global trade Lagere groei wereldhandel 25% Lagere groei 20% wereldhandel 15% 25% 10% 20% 25% 5% 15% 20% 0% 10% 15% -5% 5% 10% -10% 0% 5% -15% -5% 0% -20% -10% -5% -25% -15% 2004 -10% -20% -15% -25% -20% Bron: CPB -25%2004 2004 jaar op jaarjaar op ontwikkeling jaar jaar ontwikkeling op jaar ontwikkeling

D D T D

e volumes over Schiphol zijn in de eerste negen maanden van dit jaar met 1,5% toegenomen ten e volumes over Schiphol zijn in de eerste negen opzichte van dezelfde periode vorig jaar. Van een The volume at Schiphol by 1.5% in the first nine e volumes over in de eerste negen maanden van ditSchiphol jaarrose metzijn 1,5% toegenomen ten sterk herstel na een paar jaar van stagnatie is dus nog geen months of 2016 as to the same the maanden vandezelfde ditcompared jaar met 1,5% toegenomen ten opzichte van periode vorig jaar.period Van een sprake. Begin dit jaar was die hoop er wel. Na een groei previous is stillvan nostagnatie signvorig of a jaar. strong recovery opzichte vanThere dezelfde periode een sterk herstel nayear. een paar jaar is dusVan nog geen van 5% in januari (j.o.j.) leek 2016 goed te beginnen en after aherstel couple of years of stagnation.

Atwel. the beginning ofgeen sterk jaar is dus sprake.

Beginna diteen jaarpaar was die van hoopstagnatie er Na eennog groei waren de verwachtingen hoog gespannen. Maar in februari 20165% there hadditbeen hope.

After growth of in January sprake.

Begin jaar wasleek die hoop er wel.

Na een groei van in januari (j.o.j.)

2016 goed te 5% beginnen en daalden de volumes ten opzichte van 2015. Deze volatiliteit (year5% on year) 2016 seemed to2016 begin wellteand expectations van januari (j.o.j.) leek goed beginnen en waren dein verwachtingen hoog gespannen.

Maar in februari zette zich door in de rest van het jaar, om per saldo uit te were high.

But in February volume dropped 2015.

This waren dedeverwachtingen hoog gespannen.

Maar februari daalden volumes ten opzichte van 2015.against Dezeinvolatiliteit komen op 1,5% volumegroei. Dit ligt in lijn met de gemidvolatility continued through thehet restjaar, of the coming daalden volumes ten van 2015. volatiliteit zette zichde door in de rest opzichte van om year, perDeze saldo uit out te delde luchtvrachtgroei na de crisis. Ter vergelijking: voor on balance at 1.5% growth. is line with zette zich involumegroei. devolume rest van het per saldo uitaverte komen opdoor 1,5% Dit jaar, ligtThis inom lijnin met de gemidde financiële crisis lag de groei op gemiddeld 4% en na age airluchtvrachtgroei cargo growth after thecrisis. crisis. comparison: before komen op 1,5% volumegroei.

Dit ligtAs inavergelijking: lijn met de gemiddelde na de Ter voor de crisis was de groei gedaald naar 1%. De afgelopen vijf thefinanciële financial crisis averaging 4% but dropped delde luchtvrachtgroei na was de crisis.

Ter vergelijking: de crisisgrowth lag de groei op gemiddeld 4% envoor na jaar stagneerde de groei van de luchtvracht over Schiphol to 1% after crisis. innaar air cargo hasafgelopen stagnated at financiële crisis lagGrowth de groei op gemiddeld 4% en navijf de crisis wasthe de groei gedaald 1%. De dus. Niet alleen Schiphol kampt met dit probleem. Ook op Schiphol during lastgedaald five Schiphol not alone in de crisis was dethe groei 1%. Deisafgelopen vijf jaar stagneerde de groei vanyears. denaar luchtvracht over Schiphol andere Europese luchthavens, zoals Frankfurt en Heathrow, struggling with this problem.

The pattern can over also be seen jaar stagneerde de groei van de met luchtvracht Schiphol dus.

Niet alleen Schiphol kampt dit probleem.

Ook opat is dit patroon te zien. otherNiet European such aszoals Frankfurt and Heathrow. dus. alleenairports, Schiphol kampt metFrankfurt dit probleem.

Ook op andere Europese luchthavens, en Heathrow, andere Europese luchthavens, zoals Frankfurt en Heathrow, is dit patroon te zien.

Al een aantal jaren laten de Europese luchtvrachten een European air cargo is dit patroon te zien.flat for a few years vlak verloop zien Al een aantal jaren laten de Europese luchtvrachten een Al een aantalzien jaren laten de Europese luchtvrachten een vlak verloop 250 vlak verloop zien ‘000n‘000n ton (12-maands ton ‘000n (12-maands ton (12-maands gemiddelden) gemiddelden) gemiddelden)

Tekst Fotografie xxxxxx xxxxxx Tekst Text xxxxxx NadiaFotografie Menkveld xxxxxx Fotografie xxxxxx

Al een aantal jaar stagneert de groei van de luchtvrachtvolumes over Schiphol. Met name de goederen van en naar Azië laten lagere groeicijfers zien. Met 5% volumegroei in het begin van dit jaar leek hier een einde aan te komen, maar al Al een aantal jaar stagneert de groei van de luchtvrachtvolumes over Schiphol. Met name de goederen van en naar Azië snel keerde de volatiliteit die we uit 2014 kenden terug. Nu, negen maanden later staat de teller op een volumegroei Theeen growth of air cargo volume at5% Schiphol been for ofMet years.

Goods from to Asia in partiAl aantal jaar stagneert groei van dehas luchtvrachtvolumes overaditnumber Schiphol. name de goederen van en maar naar Azië laten lagere groeicijfers zien.de Met volumegroei in stagnating het begin van jaar leek hier een einde aan and te komen, al van 1,5%. Een stuk lager dan de langetermijngroei van 4%. cular are showing lower zien. growth Atkenden the beginning of 2016 it maanden seemed that anstaat end to stagnation was in sight laten lagere groeicijfers 5%2014 volumegroei in hetNu, begin van dit jaar leek hier eende einde aan komen, maarwith al snel keerde de volatiliteit die Met wefigures. uit terug. negen later teller opteeen volumegroei volume growing at 5%, but quickly the volatility seen since 2014 returned.

Nine months later volume growth was at snel keerde de volatiliteit die we uit 2014 kenden terug.

Nu, negen maanden later staat de teller op een volumegroei van 1,5%. Een stuk lager dan de langetermijngroei van 4%.

1.5%.

This Een is farstuk lower than long-termvan growth van 1,5%. lager danthe deprojected langetermijngroei 4%. figure of 4%.

20042004 20052005 20062006 20072007 20082008 20092009 20102010 20112011 20122012 20132013 20142014 20152015

Market Lucht Lucht Lucht Analysis Tekst xxxxxx

Waarom stagneert de groei Waarom stagneert de groei Why has air cargo volume Waarom stagneert de groei in luchtvrachtvolumes? in growth stagnated? in luchtvrachtvolumes? luchtvrachtvolumes?

Source:CPB CPB Bron: Bron: CPB

2006 2008 2010

2012 2014

2016

2006 2008 2010

2012 2014

2016

2006 2008 2010

2012 2014

2016

volumegroei van de afgelopen jaren van goederen die van en naar Europese landen via de lucht werden vervoerd.

Structuur economie is veranderd This flat course of structuurverandering world trade is particularly Het vlakke verloop van de wereldhandel is remarkable vooral opvallend, Met name grote in de economie liggen because global economy has groei shown growth.

Global trade omdat wereldeconomie wel En dat terwijl hier aandethe ten grondslag.

Allereerst is invertoont. een aantal landen normally always grows faster than the global Why deAzië wereldhandel altijd de harder groeide danbelangrijker deeconomy. wereldeconoin (China voorop) dienstensector geworis that no the niet case? mie. is dat zo? den inWaarom de longer economie, danmeer de industrie.

In de afgelopen vijf jaar zijn de Europese volumes met Groei Europese luchtvrachtvolumes In thegestegen last five years European volumes risen by 50% 50% Dit laatste kan tevens een verklaring zijn voor de enorme volumegroei van de afgelopen jaren van goederen die van en naar18000 Europese landen via de lucht werden vervoerd.

8000

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

12000

2002

4000 18000 2000 16000 0 14000

2001

6000

10000

8000 Source: Schiphol Bron: Schiphol

40

Bron: Thomson Reuters, ABN AMRO

2016

2015

2014

2013

2012

2011

2010

2009

Bron: Schiphol

35

30 In China maakte de dienstensector in 2011 44% uit van de 2000 2002 2004 2006 2008 2010 2012 2014 2016 economie en de industriële sector 47%. In 2012 werd de Industrie Dienstverlening dienstensector voor het eerst groter en is nu uitgegroeid tot 51% van het BBP in China, terwijl het aandeel van de Source: Thomson Reuters, ABNAMRO AMRO Bron: Thomson Reuters, ABN industriële sector daalde naar 41%. Dit is een ontwikkeling die in meer landen gaande is. Doordat de dienstensector In 2011, the Chinese service sector was 44%44% of Chinaimport maakte dienstensector in 2011 uiteconomy van de minder endeexport intensief is, levert hetthe daardoor and the sector For the first in werd 2012 economie en de industriële sector 47%.

Intime 2012 de wel eenindustrial bijdrage aan de47%. economische groei, maar nietthe aan service sector was larger and itgroter has now to 51% of dienstensector voor het eerst en grown is nu uitgegroeid de wereldhandel.

Chinese the industrial backvan to 41%. tot 51%GDP, vanwith het BBP in China, sector terwijldropping het aandeel de This is a development thatoudsher is also happening in ontwikkeling other counindustriële daalde naar 41%. is een Daarnaast issector Europa van eenDitbelangrijke kracht in tries. the service sector less oriented die wereldhandel inAs meer landen gaandeinDoor is.

Doordat detowards dienstensector de geweest. de enorme groei import van deand export, contributes economic but het notindaardoor to minder itimport en export intensief is, opkomende landen istohet aandeelgrowth vanlevert Europa deworld wereldtrade. wel eenafgenomen. bijdrage aanHierdoor de economische groei, maar aan handel kan het gebeuren, datniet hoewel wereldhandel. de economie in Europa groeit, dit minder doorwerkt in de In addition, Europe traditionally an important power wereldhandel.

Een has derde factor diebeen de lagere wereldhanin world trade.

Due tovan theisoudsher enormous growth in developing Daarnaast is Europa belangrijke kracht in delsgroei kan verklaren de groeieen van de middenstand countries, Europe’s share in world trade hasproductie declined.

Thisdecan deeen wereldhandel geweest.

Doorneemt de enorme groei van in land als China.

Hierdoor de wel mean that,bevinden although the European itenhas opkomende landen is het aandeeleconomy vanzich Europa in grow, dezelf wereldtoe, maar de eindafnemers indoes China less effect world trade.

A third factor that could explain handel afgenomen.

Hierdoor kan het dat hoewel hoeven deon goederen dus niet naar degebeuren, andere kant van de lower growth in world trade is the the middle class de economie Europa groeit, dit growth minder of doorwerkt in de wereld gevlogen te worden. in countries likeeen China.

Production does increase but,gezocht as the wereldhandel.

Een derde factor die lageregroei wereldhanTenslotte kan verklaring voor dedelagere end usersinkan can found inis China itself, do notdichter have delsgroei verklaren de van groei vanthe degoods middenstand worden hetbe terugbrengen productiefaciliteiten to other side of the world. in be een land to alsthe China.

Hierdoor neemt de productie weldit bij deflown eindgebruiker: nearshoring.

Hoewel cijfers over toe, maar bevinden devinden eindafnemers in China zelf en onderwerp moeilijk te zijn, zijnzich er verscheidene Finally, explanation for low be found hoevenan degeweest goederen dus niet naarvan decan andere kant in van de enquêtes waarin de growth top het bedrijfsleven production facilitiesteeen being closer to the end users: wereldaangegeven gevlogen worden. heeft ofbrought meerdere productiefaciliteiten nearshoring. it is difficult to statistics on this Tenslotte kanAlthough een verklaring defind lagere groeihiervoor gezocht terug te willen halen naar devoor eindmarkt.

Reden subject, been wherein worden in hethave terugbrengen vansurveys productiefaciliteiten dichter is meer there controle over hetvarious maakproces enundertaken hogere lonen in top business people have indicated wishing to bring producbij de eindgebruiker: nearshoring.

Hoewel cijfers over dit bijvoorbeeld China. Maar ook het sneller bereiken van de tion facilitiesmoeilijk closer end market. reasons given onderwerp tethe vinden zijn, zijnThe er verscheidene eindconsument en to lagere transportkosten spelen een rolare greater control over the production process and increased enquêtes geweest de top van het te bedrijfsleven in de beslissing omwaarin productie in de buurt houden.

Oostwage in, geliefde for example, China. Being able to reach the in heeft costs aangegeven een nearshoring of meerdere productiefaciliteiten Europa is een locatie voor bedrijven end and lowering transport costs also terugconsumer te willenmore halenquickly naar de eindmarkt.

Reden hiervoor West-Europa. play a role in decisions to undertake production closer to the is meer controle over het maakproces en hogere lonen in market.

Eastern Europe is aook popular nearshoring location for bijvoorbeeld China.

Maar het sneller bereiken van de West European companies. eindconsument en lagere transportkosten spelen een rol in de beslissing om productie in de buurt te houden. OostGrowth European cargo volumes Europa isofeen geliefdeair nearshoring locatie voor bedrijven in This last point can explain the enormous growth in the last West-Europa. few years of goods being transported by air to and from European countries.

■■■

2008

Dienstverlening

2007

■■■

2006

Industrie

2005

■■■

2004

45

4000

The share in airincargo has grown is considerably in the Het European aandeel Europa de luchtvracht hiermee ook 2000 van 0 de last years.

In 2011, was the flinkfive gegroeid laatsteEuropean vijf jaar. goods Maakte in just 20115% deofEurowhole, in September 2016 to15%.in september pese goederen nog 5% uitthis vanwas het up geheel, 2016 was dit al 15%.

2003

30 50 2000 2002 2004 2006 2008 2010 2012 2014 2016

6000

2002

35 55

2001

Percentage BBP China %

45 Service sector ismaakt now more than dan 50%50% of the Dienstensector nu meer uit Chinese van de economy Chinese economie 40

14000

In de afgelopen vijf jaar zijn de Europese volumes met 12000 50% gestegen 10000

2000

50

16000

2000

Percentage BBP China %

Economic structure has changed Structuur economie isnu veranderd Dienstensector maakt meer dan 50% uit van de Large structural in the economyinare basis ofliggen this.

Met name grotechanges structuurverandering de the economie Chinese economie First in a number of Asian (particularly hier and aan foremost ten grondslag.

Allereerst is in countries een aantal landen China) industry has become more importantgeworfor in Aziëthe (China voorop) de dienstensector belangrijker 55service the than thedan industrial sector. deneconomy in de economie, de industrie.

ton (12 maands gemiddelden) ton (12 maands gemiddelden)

de wereldhandel altijd harder groeide dan de wereldeconomie. Waarom is dat niet meer zo?

■■■

‘Ever smaller electronic products Door het steeds worden van and parts result kleiner in less space being elektronische producten en of required for a similar quantity onderdelen,products’ is er minder ruimte nodig voor dezelfde hoeveelheid producten Door het steeds kleiner worden van

Het aandeel van Europa in de luchtvracht is hiermee ook flink gegroeid de laatste vijf jaar. Maakte in 2011 de Europese goederen nog 5% uit van het geheel, in september 2016 was dit al 15%.

Other challenges for air cargo Apart from the flat growth in world trade, the air cargo sector Andere has otheruitdagingen challenges toluchtvracht contend with. One of these is ever Naast een vlakkere groei van wereldhandel smaller electronic products andde parts result in lessheeft spacede luchtvrachtsector makenquantity met eenofaantal andere being required for te a similar products.

This uitdaginis a gen. Een development daarvan is hetassteeds kleiner elektronegative the load factorworden of cargovan aircraft is nische producten en onderdelen, minder ruimte relatively low. Alongside electronicwaardoor products, er perishables are nodig is voor product dezelfdegroup hoeveelheid producten.

Doordat de an important for air cargo that could possibly Andere for uitdagingen luchtvracht beladingsgraad vaninvrachtvliegtuigen al relatief laaganligt, account growth the future. Transport costs play Naast eennegatieve vlakkere groei van dedue wereldhandel heeftlow deprois dit een ontwikkeling.

Naast important role here for shippers to theelektronische relatively luchtvrachtsector maken met een aantal uitdaginducten bederfelijke waar belangrijke productengroep value ofisthe goods.teThere is aeen constant searchandere for cheaper gen. Een daarvan Another is het kleiner worden elektrovoor de luchtvracht, die steeds mogelijk voor kanvan zorgen transport options. challenge thatgroei the worldwide nische producten en spelen onderdelen, er minder in de toekomst. transportkosten hier, door ruimte de air cargo sector isWel wrestling with iswaardoor stricter border controls. nodig ispublic voorwaarde dezelfde hoeveelheid producten.

Doordatput derol relatief lage van goederen, een belangrijkere Recent opposition todeglobalization could possibly beladingsgraad vanHierdoor vrachtvliegtuigen al relatiefgezocht laag ligt, voor deliberalization verladers. constant naar further of trade wordt under er pressure. is dit een negatieve ontwikkeling.

Naast uitdaging elektronische goedkopere transportopties.

Een andere waarprode ducten is bederfelijke waar eenmee belangrijke wereldwijde luchtvrachtsector worsteltproductengroep zijn strengere voor de luchtvracht, die mogelijk voor groei kan zorgen grenscontroles en recente maatschappelijke weerstand in de toekomst.

Wel die spelen transportkosten hier, door de tegen globalisering mogelijk een verdere liberalisatie relatief lage waarde goederen, een belangrijkere rol van de handel ondervan drukdezetten. voor de verladers. Hierdoor wordt er constant gezocht naar goedkopere transportopties. Een andere uitdaging waar de wereldwijde luchtvrachtsector mee worstelt zijn strengere grenscontroles en recente maatschappelijke weerstand tegen globalisering die mogelijk een verdere liberalisatie van de handel onder druk zetten.

elektronische producten en onderdelen, is er minder ruimte nodig voor dezelfde hoeveelheid producten

Nadia Menkveld Economisch Bureau ABN AMRO

57 CARGOHUB

Economic Bureau ABN AMRO Nadia Menkveld Economisch Bureau ABN AMRO

57 CARGO

magazine CARGOHUB

MVO Tekst Giovanni Douven, research fellow & Han van Kleef, associate lector

Circular Profit for a Better Planet and Healthier People

People, Planet, Profit are the terms used by many companies as the guideline for corporate social responsibility. But does this work in the cargo logistic sector?

T

he strategy of the Hogeschool InHolland is focused on Sustainability, Health and Creativity. The Hogeschool’s Business Research Centre (BRC) has the circular economy in a central position in its multi-year plan. The BRC is currently investigating the ways in which SME’s can learn and innovate with the aim being the circular economy. 125 students from the Airport & Aviation course are actively seeking circular economy solutions for the cargo logistics sector. The BRC is also organizing “Knowledge Café’s” where participants from education, business, community organizations and government, further explore this subject. On 22 February the BRC will land at ‘The Grounds’ at Schiphol where they are organizing a Knowledge Café meeting for the Schiphol cargo logistics sector.

What is the circular economy?

The circular economy is an economic system that intends to minimalise the use of products and raw materials, to maximize their re-use and to minimalise value destruction.

This differs from the current, primarily linear, system where raw materials are converted into products that are destroyed at the end of their life. The Netherlands Social and Economic

58 CARGO

magazine

Council (SER) sees a circular economy as an economy that, within ecological conditions, efficiently and socially responsibly, uses products, materials and resources, so that future generations will retain access to material wealth.

The circular system recognizes two cycles for materials. A biological cycle where residual materials safely flow back into nature after use and then, later, are re-used as food for ecosystems or as new raw materials. A technical cycle for man-made materials, whereby product (parts) are designed and marketed that can be re-used at a qualitative high level.

They thus retain their economic value as far as possible.

It is important that artificial materials do not contaminate biological recycling and that both sorts of material are separated from each other and can be collected. The system is thus “restorative” both ecologically and economically.

McDonough and Braungart’s “cradle to cradle” approach is seen as an important basis for further study into innovations based on the circular idea.

The air transport sector must be CO2 neutral The Paris Treaty has set the ball rolling and formulated the need of circularity. On 12 December 2015 nearly 200 participants voted for a new binding climate agreement.

Greenhouse gas emissions must be reduced and global warming restricted to maximum 2 degrees, with the target being 1.5 degrees.

There has also been an agreement in the air transport sector. 191 members of the International Civil Aviation Organization (ICAO) reached agreement in October 2016 for the air transport sector. ICAO, the UN’s civil aviation organization, aims for air transport to be CO2 neutral voluntarily (from 2020) and compulsorily from 2027. The prognosis points to air traffic doubling by the year 2035. This means further growth for airline companies but also for the related cargo logistic sector: handling agents, truckers and forward-

ers. World wide, the sector is under ever-greater pressure from governments, community organizations, scientists and companies to take measures as climate change is seen as a huge threat to the lives and safety of millions of people.

This pressure is visible in government policy (an example for the circular economy; see the EU’s ‘Closing the Loop’) and is slowly but surely being expressed in legislation.

The circular economy is for idealists but also primarily for business?

We will earn money with the circular economy. The circular economy can be seen as a powerful instrument for innovation. There are various business models that are applicable.

To support SME’s, the BRC has focused on the Peter Lacy and Jakob Rutqvist’s five business models from their book “Waste to Wealth”. The five models being used are: • Right from the Start: use renewable raw materials and resources (e.g. wind energy) • Making History of Waste: Waste occurs especially in the design and process phases. Arrange with other companies for recycling of used products. (e.g. H&M takes in used clothing) • Products that are Built to Last: offer options to extend product life, for example, repair, maintenance, upgrades and refurbishment (e.g. leapp) • The Sharing Platform: the sharing economy pur sang.

Share products with others so that they are more intensively utilized (e.g. peerbym, floow2) • The Product as a Service: shift away from selling products to the supply of services. Leasing and rental lay the responsibility for maintenance, product life and recycling with the producer (e.g. ledsgogreener).

How does the circular economy work for cargo logistics?

There are many relevant examples but current, mainly linear, business models will need to re-assessed in a new light.

Drastic new solutions will need to be found in the cargo logistics sector if the supply of services is to be CO2 neutral.

Initially, the emphasis will have to be on core activities, the applied value and then on related business activities.

For every (partial) activity a solution will need to be found based on the circular economy angle and where the main purpose is earning revenue.

The motto could be “Circular profit for a better planet and healthier people”.

Outlook An early conclusion from the BRC investigation is that a circular economy cannot be realized without diligent cooperation between people and organizations whereby innovative ideas, subsidized or not, merit a platform.

A good example within cargo logistics is a solution found by the company Breytner. This company has developed a ‘valuable’ solution for CO2 free transport. This takes place with electric trucks that are used to supply various companies in the centre of Rotterdam. Breytner has split the logistics route into the ‘first’ and ‘last’ mile. This disconnection makes it possible for the most expensive kilometer to be carried out at times outside of the rush hour. The interchangeable bins used allow fast transshipment at a logistics decoupling point on the edge of the city centre where goods from the various industries are brought together.

With a shared vision, Hogeschool InHolland, together with ACN and the Schiphol Group, will be organizing a Knowledge Café on 22 February.

Master Airport Equipment ’t Veld 21 6666 MK Heteren T 026-4722 011 Info@masterairportequipment.nl www.masterairportequipment.nl

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Lucht Column

Frans Vonk Director Binnendijk-Bree Surveys B.V.

Insure risks? Don’t underestimate the ‘Black Swan’!

S

omebody once said that life is one huge risk. It is full of unexpected incidents, often ones you don’t want.

Which risks should you insure yourself against as a company and how do you chart these risks?

Tekst Inver Gase NBK Air & Ocean Fotografie Levien Willemse

Really, there are only two certainties when you are born: you will die and you will pay tax. The insurance business earns good money on life’s uncertainties. Companies do well to insure themselves against risks. But all risks? That would be an endless task. Which insurances should you take out and what risks can you potentially bear yourself? We all have to make a choice.

Every business must chart risks and decide what to insure.

A trading company will look at transactions concluded, delivery conditions, transporters, consider whether there is a risk and if so, what criteria are applicable. A logistics service provider will sooner look at his processes for liability and at storage risks.

What you often see when risks are being considered is that past events are used as a guideline for the future. The writer Nassim Nicholas Taleb wrote a few books on this subject that are well worth reading. In “The Black Swan” he gives a good example of a turkey that is well looked after every day. The graph of the bird’s wellbeing is therefore on a set line and should, based on the historical grounds of this method, continue for a considerable time. But, the very day before Thanksgiving, the bird died and the line on the graph plummeted.

zations deny these coincidences and continue to forecast using existing patterns.

It comes down to charting risks, distinguishing between known and unknown risks (which are often not directly related to operations). The problem is that businessmen often develop tunnel vision. It is therefore good if an outsider can also take a critical look. Various transport and liability insurers have switched to a risk inventory at the commencement of insurance cover. Particularly companies handling, or logistically involved with, theft-sensitive goods, need to chart risks in advance. The organization of the company and the implementation of security in the varying sections must be examined. What is good is management becomes committed and allocates the necessary financial means. In this way a working environment can be created that, whilst it cannot exclude damage, can limit it to only actual incidents and an unforeseen ‘Black Swan’.

Frans Vonk Binnendijk-Bree Surveys

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That was, according to Taleb, a ‘Black Swan’: an unpredictable event that can have an enormous impact but that, retrospectively, can be considered plausible and predictable.

With the growing complexity of the world, ‘Black Swans’ seem to be determining history more and more. Still organi-

Flamingoweg 6 NL-1118 EE SCHIPHOL T +31 (20) 6531996 (24/7) schiphol@bbsurveys.nl www.bbsurveys.nl

ebh@ecginternational.eu

Export Control and peanut allergy

I

n the past week I had a good discussion with a principal.

“You shouldn’t charge the organization with all theoretical wisdom about Export Control” was his position. “They will not understand it. They want to hear it in their own language, to the point and clear what to do”.

I partially agree with him. An instruction in the language and perspective of the employee will certainly help him or her to understand what needs to be done. But the why-question remains unanswered and with this it will lack true consciousness and acceptance.

Get in the bowl!

The position however triggered me. In a previous blog I wrote about the tidal waves of often legal and detailed information that will even drown the most hard-edged specialist. It should be possible to do this in a more accessible fashion. While I take a chocolate and sugar coated peanut from the yellow bag, it came to mind. I should think of a metaphor - peanuts!

The peanut is a notorious and most researched allergen.

Only 0,5 to 1% of all humans develop a peanut-allergy, but it seems to increase in time. A minimal quantity can cause severe reactions with some persons. It is almost a matter of life and death to know where peanuts have been processed in.

Peanut Control Export control is just like a peanut allergy. If you are yet not aware, the consequences can be very serious.

What. It is important to know what products you are dealing with. If it concerns the peanut itself it is quite obvious. You will recognize it immediately. It becomes more risky if peanut products are processed as ingredients in end-products. A proper classification of the product is therefore of importance.

Column

Eric Both Export Control Entrepeneur and Awareness Creator

Who and what for. A peanut allergy can appear in different forms. Sometimes just peanuts particles in the air can be sufficient to create an anaphylactic shock, in other cases eating peanuts can lead to a mild reaction. So it makes a big difference who the receiver is of peanut ingredients, and what this person is going to do with it.

Of course export control and sanctions are not the same a peanut allergy. The former is about avoiding goods, technology or information e.g. to be used for non-peaceful purposes, the production of weapons of mass-destruction or suppression. The latter is about the protection of the consumer against the unintended intake of products that may cause an allergic response.

It all starts with awareness But there are two important similarities though : awareness and behavior.

If you don’t know where to look for, you will never find it.

You are unaware of the dangers. Only when an incident takes place you will start to act, if it is not already too late and the company or the consumer literally went down.

Export control starts with creating the awareness that export control & sanctions regulations exist. The odds are realistic that also your products, in one way or the other, are subject to these regulations. And if you are finally aware then act accordingly!

While writing this blog I worked my way into the world of peanut allergies and became very much aware of the dangers these patients runs every single day. With the knowledge that my surrounding and me are safe, I take my favorite M&M from the bag - an orange one.

Where. Just as with the European dual-use regulation there is also a European allergen regulation. It contains labeling regulations and what obligations organizations like retailers and restaurants have to properly inform the consumer.

Some companies don’t take it too seriously. They provide no or insufficient information. As a patient you therefore need to double check where you are going. A restaurant where peanuts are being used in the menu is like an embargo to the patient. This is a no-go area.

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Legal

Yanick Chevalier Masters Student Civil Law, Leiden University

Forwarding or transport agreement? It is insufficient to only attach the Fenex conditions

I

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t is not always clear if a forwarding or a transport agreement has been concluded. The difference is, however, of great importance. It can influence questions of liability. In response to a recent ruling by the Court of ‘s-Hertogenbosch (ECLI:NL:GHSHE:2016:4752), I will explain how this difference came about in this particular case and how this relates in an international perspective to other countries.

Court’s judgement The Court judged that there had been a transport agreement.

How was this determined? The answer to this question must be found in the explanation of the concluded agreement.

Under the given circumstances, what could each party in fairness reasonably expect from the other.

Hekwerk en Handelsonderneming (H&H)/Transcargo B.V. H&H, via the website of Transcargo, sought a quotation for the transport of a 20ft container of building materials from the Netherlands to Greece. After a short email exchange in which a price and location were agreed, Transcargo sent a ‘forwarding confirmation’. In this Transcargo stated that they would be conducting this order exclusively as a forwarder, that the Dutch Forwarding conditions applied to all activities and that they would not be liable for any damage. Transcargo outsourced the transport to a Greek transport company but it arrived too late. This resulted in H&H suffering losses they wished to claim from Transcargo. Transcargo could not successfully appeal to the Fenex conditions and was designated the transporter.

Merely attaching the Fenex conditions is insufficient in order to be able to assess if it is a forwarding agreement because the Fenex conditions can also be applied by transporters A contractor who, in the context of a transport order, wants to act as a forwarder, must at the entering into of an agreement, present himself as such in a clear manner. In the absence of this, in principle, it has to be accepted that a transport agreement has been concluded. The forwarding confirmation sent by Transcargo was, in this case, sent after the agreement had already been concluded and there had been no previous mention of forwarding. Transcargo should have made it explicitly clear right from the start that the agreement related to a forwarding contract.

A contractor who, in the context of a transport order, wants to act as a forwarder, must, at the entering into of an agreement, present himself as such in a clear manner

Liability from an international perspective How is liability perceived internationally: is a forwarderâ&#x20AC;&#x2122;s responsibility the same all over the world? No, Prof. mr. F.G.M. Smeele gives three different views relating to the responsibility of the forwarder for (load) damage that occurred through no fault of his own during transport arranged by the forwarder.

English law The English view is the most favourable to the forwarder.

In the English approach the forwarder is seen, as it were, to be an intermediary, meaning that if he has satisfactorily completed his tasks, he cannot be held liable for any incurred damage. One could think of the comparable regulation in the Netherlands Civil Code concerning representation/agency where an intermediary who, on the satisfactory completion of his task, in effect, drops out.

French law The French view is far less favourable to the forwarder. In the French approach, it is stipulated that the forwarder must be seen as an expert, a specialist with only one task: to ensure that a shipment from A to B arrives intact. Accordingly, one may have complete confidence in his ability and his capacity to deliver at the agreed time at the agreed location. If he does not manage this, he falls short â&#x20AC;&#x201C; regardless of whether it is his fault or not â&#x20AC;&#x201C; and he can still be held responsible for the damage. If a contractor outsources the transport and a forwarder takes on this task, then the risk of load damage shifts as well. The French view is therefore diametrically opposed to the English view: the forwarder does not drop out, but rather by agreeing to the transport order he guarantees that the customer is excluded from the risk.

Dutch/German law The German and Dutch approaches tread a middle path. In principle, it is not assumed that responsibility for damage lies with the forwarder if the damage is not his fault (unless

it is a question of exceptions referred to in law). The Dutch regulations regarding forwarding are stated in Book 8 of the Civil Code and are mostly binding in nature, which means that deviating from them in an agreement voids them. The forwarding agreement is however very narrowly formulated as it concerns only an agreement for the transportation of goods. A forwarder often undertakes supplementary activities that are not directly supported in the rules of Book 8. It is therefore not surprising that discussions often occur questioning whether an agreement is a forwarding agreement or a transport agreement.

Avoid uncertainty Take great care in advance of concluding an agreement: make it clear to your client what sort of agreement is being concluded and what conditions are applicable. Merely attaching the Fenex conditions is insufficient in order to be able to assess if it is a forwarding agreement because the Fenex conditions can also be applied by transporters. Emphasise therefore which conditions apply, even in email correspondence. It might seem superfluous, but prevention is always better than cure.

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Short Reports

Schiphol 100 years On 19 September Schiphol celebrated its 100th birthday.

On this day in 1916 a small airplane landed on a piece of farmland in the Haarlemmermeerse polder for the first time.

On the occasion of this anniversary, our national airport was granted the designation “Royal”.

Interport BV sold to Van Duuren Shortly after the celebration of its 25th anniversary, Interport announced that the transport company has been sold to Van Duuren.

New Director Cargo Swissport On 1 December, Jeroen Giling joined handling agent Swissport as Director Cargo. Not long before this, it had been announced that Skylink had been taken over by Swissport.

Pharma.aero established Brussels Airport and Miami International Airport are the ‘founding fathers’ of Pharma.Aero, a new independent organization aiming at improving pharmaceutical handling and quality worldwide. See: www.pharma.aero

Bpost takes over Dynagroup Recently Belgian Post completely acquired Dynagroup.

Bpost will in this way strengthen its parcel delivery service.

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New operator Maastricht Aachen Airport Trade Centre Global Investments BV is the new operator of Limburg airport MAA. TCGI is the parent company of, among others, Global Airline Services. The company has been active for more than 20 years in the air transport world and represents two of the three cargo carriers (Turkish and Royal Jordanian) that fly to MAA.

info@cutraco.co

Impact ‘BREXIT’ op uw logistieke planning, verplichtingen en kosten al inzichtelijk?

O

p 23 Juni 2016 heeft het volk van het Verenigd Koninkrijk middels een referendum gestemd om de EU te verlaten. Dit is een ongekend precedent en heeft tot een schok geleid binnen en buiten het Verenigd Koninkrijk. Op dit moment is alle EU wetgeving nog van toepassing, maar de toekomst brengt een zekere mate van onzekerheid.

Om de uittreding onderhandelingen formeel te starten, moet het Verenigd Koninkrijk toepassing van artikel 50 van het Verdrag van Lissabon inroepen. De Britse premier, Theresa May, heeft aangekondigd dat zij van plan is artikel 50 eind maart 2017 in te roepen.

In november 2016 heeft het Britse gerechtshof, de High Court, beslist dat het Britse parlement moet instemmen met de uitkomst van het referendum alvorens de regering artikel 50 kan inroepen. Technisch betekent dit dat de Britse regering formeel niet eerder aan de uittreding onderhandelingen kan starten nadat het Britse parlement heeft gestemd.

Echter, de regering heeft bezwaar aangetekend tegen de beslissing van het gerechtshof. De Britse Hoge Raad, de Supreme Court, heeft begin december zitting gehouden over de vraag of de Britse wetgeving voorschrijft dat de regering toestemming moet hebben van het parlement alvorens artikel 50 in te roepen en aan de formele uittreding onderhandelingen te kunnen starten. De uitspraak wordt verwacht in januari 2017.

‘Er gaan geruchten dat het parlement zal trachten aanvullende eisen te stellen aan de uittreding onderhandelingen, zoals het behouden van toegang tot de interne EU markt’ In de tussentijd heeft een meerderheid van de Members of Parliament (MP’s) die zitting houden in het parlement, bevestigd dat zij de ‘stem van het volk’ zullen respecteren en zullen instemmen met de beslissing van de regering om eind maart 2017 artikel 50 in te roepen.

Column

Arjen Odems Managing Director | Customs and Trade Consultancy Ltd.

De verwachting is derhalve dat de formele uittreding onderhandelingen in de eerste helft van 2017 zullen starten; het Verenigd Koninkrijk zou dan in de eerste helft van 2019 de EU verlaten.

De Britse premier heeft aangegeven dat zij voornemens is het ‘Brexit plan’ aan het parlement voor te leggen alvorens artikel 50 wordt ingeroepen. Er gaan geruchten dat het parlement zal trachten aanvullende eisen te stellen aan de uittreding onderhandelingen, zoals het behouden van toegang tot de interne EU markt. Een dergelijke afspraak is uiteraard onderhevig aan goedkeuring van een ruime meerderheid van de 27 lidstaten en van het Europese parlement. In een dergelijke situatie zal de EU waarschijnlijk aanvullende voorwaarden stellen en een financiele bijdrage eisen voor een dergelijk toegang tot de interne markt. Voorts heeft een recente conclusie van de Advocaat Generaal van het Europese Hof van Justitie, Eleanor Sharpston, vragen doen rijzen of toestemming van de overige 27 lidstaten is vereist om te kunnen uittreden uit de EU alsmede de voorwaarden die aan de uittreding worden gesteld.

‘Bedrijven die betrokken zijn met internationale handel wordt aangeraden nu te starten met het beoordelen van de impact’ Er heerst nog steeds onzekerheid over het hoe en wanneer Brexit de internationale relatie met het Verenigd Koninkrijk zal beïnvloeden. Echter, bedrijven die betrokken zijn met internationale handel wordt aangeraden nu te starten met het beoordelen van de impact. Met name bedrijven die voornamelijk handel voeren binnen de EU en waarvan het Verenigd Koninkrijk een belangrijke markt is, komen in een positie waar zij worden gedwongen om douane en handels vereisten te implementeren en rekening te houden met douane aangiften alsmede mogelijke vertragingen van zendingen.

Het is essentieel dat voldoende aandacht wordt besteed het verkrijgen van inzicht in de gevolgen met betrekking tot verplichtingen en kosten welke Brexit met zich mee zal brengen.

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International guest

Dr. W. Dewulf Professor at C-MAT, University of Antwerp wouter.dewulf@uantwerpen.be

Where are the elephants in the room?

About markets, products and yieldâ&#x20AC;Ś

T

ypical discussion topics at air cargo industry gatherings are declining yields, tougher government regulation on security, modal shift to sea transport, and the lack of streamlined processes and IT systems. These concerns are legitimate, however, what surprises me is that some cargo executives do not seem to observe the elephants in the room.

The air cargo market has an a-typical supply market set up. While the top 50 airlines carry three quarters of the air cargo, the market shares of the top 10 airlines are still relatively small. In addition, the strategic objectives of these airlines are not aligned. There is lack of a â&#x20AC;&#x2DC;naturalâ&#x20AC;&#x2122; industry leader, or at least an airline who takes up leadership and carries the industry flag in front. Most similar industries with this supply side organization have at least one industry leader who stands up, dominates the discussions, and sets the standard. The three huge integrators FedEx, UPS and DHL work independently in expanding their market, pushed by the worldwide growth in E-commerce. In addition, these integrators are exploiting their year-by-year increasing economies of scale, scope and density in their respective door-to-door networks, making it increasingly difficult for

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a new player to enter the lucrative door-to-door market.

Emirates works hard on its impressive expansion, Lufthansa and Air France/KLM are fighting to get back in the black respectively, and Korean Air, Singapore Airlines and Cathay Pacific have their own issues. What about the US companies who traditionally like to take up the worldwide industry lead? The big three US airlines already lost the cargo game to the two remaining integrators in the US, UPS and FedEx, and play only a minor role internationally.

Most similar industries with this supply side organization have at least one industry leader who stands up, dominates the discussions, and sets the standard Another often neglected fact is that the air cargo industry product is a derived demand from the worldwide trade in merchandise goods. This means that we cannot really influence aggregate demand for air cargo by lowering the price.

According to the basic supply and demand economic theory,

a lower price creates additional demand. Low cost airlines like Ryanair and Air Asia prove that this works very well for the air passenger business. However, this economic rule does not really apply to the air cargo industry. This means that a cargo industry player can only expand by taking business away from its competitors, as the air cargo market is a zero-sum-game market. In addition, new wide-body passenger aircraft like the B787 and A350 are becoming increasingly cargo friendly compared to their predecessors.

This generates a close to zero marginal cost environment to transport additional air freight on board a passenger aircraft.

Hence, the reduction in yields reinforced by the expansion of a number of fast growing airlines in the Middle East and Asia. A small addition to the capacity in the air cargo industry leads immediately to an equilibrium with a disproportionate lower price.

The impressive expansion plans of the ambitious players in the Middle East and Turkey are well known. The big three Middle Eastern airlines alone will add about 10 million tons of wide body cargo capacity over het next decade. Only about 60 million tons of air cargo are yearly internationally transported. These 10 million tons will be added onto the only partly utilised worldwide yearly network capacity of 120 million tons of cargo. Not counting the additional planned wide body capacity growth by Turkish Airlines and some Chinese airlines, this additional capacity in the air cargo zero-sum-game environment will lead to even stronger yield reductions, as capacity growth significantly outstrips the demand growth.

The air cargo industry is still growing thanks to the increased worldwide trade and cross border E-commerce flows, mainly to and within Asia. However, the integrators seem to skim off the lucrative part of this E-commerce transport by dominating the total door-to-door supply chain both commercially and operationally. This leaves little room for the traditional cargo airlines to play a role, apart from selling their cargo capacity as general cargo to transport the overflows of the operators.

A cargo industry player can only expand by taking business away from its competitors, as the air cargo market is a zero-sum-game market The elephants are in the room and have no intention to leave. Results can already be found in the yields and cargo load factors of traditional airlines. The lack of an industry leader, the fact that the cargo product is a derived demand, the additional cargo capacity added into the networks, the production of this capacity in a close to zero marginal cost environment and the zero-sum-game market are very specific feature one hardly finds back in other industries.

Surprised the yields are declining? You ain’t seen nothing yet… Fasten your seat belts!

020-4059111 - info@wcn.nl WerkCentraleNederland

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WerkCentrale Nederland Fullservice uitzendorganisatie Gespecialiseerd in de Transport en Logistieke Sector

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Short Reports

I Love Cargo Gala 2016 At the end of November the first I Love Cargo Gala was held at Restaurant Den Burgh in Hoofddorp. During the walking dinner everyone had chance to catch up in a quiet setting before DJ Barry Brand turned up the volume at 21:30 and ensured that everyone could enjoy themselves on the dance floor. All photographs can be seen on www.ilovecargo.nl

Kuehne & Nagel opens new head office in Antwerp

China Southern Airlines 20 years Amsterdam At the end of 2016 China Southern Airlines celebrated a great milestone. It was twenty years ago that the carrier’s first flight to Amsterdam took place.

Kuehne & Nagel’s new head office in Antwerp radiates energy, dynamics and passion.

De Haan Advocaten & Notarissen opens Schiphol office The new office on Schipholboulevard specializes in trade, transport and logistics. Mr drs. René de Bondt and mr. Eric de Waart (formerly with Levenbach & Gerritsen) have associated themselves with De Haan Lawyers and Notaries. The company has a full service office and has been active for more than 35 years.

De Haan Lawyers and Notaries is prominent nationally in mass claims, such as the earthquake case against NAM and the recently launched truck claim against the cartel of truck manufacturers.

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Secure the Sky Medewerker Luchtvracht | MLV Donderdag 12-01-2017 Maandag 13-02-2017 Donderdag 16-03-2017

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Uiteraard geven wij al onze training ook In company bij de klant.

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NTCB | Nationaal Trainingscentrum Burgerluchtvaart | Luchtvracht biedt u de volgende opleidingen en diensten aan om te voldoen aan de eisen om opgenomen te worden als Bekende Afzender in de EU Cargo Database

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