INTERVIEW: No sign yet of great growth in 2018, but CPTPP is a potential winner for all - AFIF’s Lovell
- News Feed
- Tuesday, 20 February 2018
BRIAN Lovell has been chief executive of the Australian Federation of International Forwarders (AFIF) and its predecessor AFAFF for 23 years.
Lovell says while his job title is the same, his role has changed significantly because global events have altered the industry which is now unrecognisable from that when he began in the role.
While AFIF membership remains strong and the freight market is showing good growth, Lovell sees future issues, with the forwarder industry under threat from overseas outsourcing and technology replacing traditional roles, resulting in a loss of industry knowledge and experience in the sector. Lovell spoke to AirCargo Asia-Pacific about his priorities.
International airfreight markets were strong towards the end of 2017. What is your expectation for 2018-19?
Brian Lovell: We are familiar with IATA airfreight figures that indicate the industry is performing very well across all global markets including Asia-Pacific. However, time will tell if the momentum will continue. There is no indication of significant growth in our market in the first part of the calendar year. But the industry workplace remains positive and with new trade related agreements, there is always the opportunity for growth in this region.
What is AFIF’s position on the renamed Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the new deal announced on 24 January (without the United States). Is it a positive move for members?
The full details of the CPTPP are yet to be announced but my personal understanding of the deal is that it offers improved trading conditions with our major trading partners - and that should be a positive for Australia. Obviously I reserve judgement until all the details are known but my initial reaction is positive.
Technology has been a boon for the freight industry, but it is not without problems. The Department of Home Affairs is having a lot of problems with its ICS. Has this affected your members’ productivity?
The ICS has a chequered record, commencing with a disastrous start in 2005 which is well documented. Now it’s already in effect a ‘legacy’ system which is still operating. Therefore any changes required require both financial and manpower resources by the department.
We are continually frustrated with the system and its inability to be flexible in today’s market and as far as I know, there are no plans for a major overhaul. The ICS fixes are a patchwork applied on an ‘as needs’ basis. The next system needs to be a completely new model embracing the latest technology.
What is AFIF’s view of Australia’s new powerful mega ministry Home Affairs?
We believe the creation of the Home Affairs department needed to happen because there are so many government agencies with information that needs to be shared among them.
This required a major integration of the departments and will be far more extensive than that which we saw with the integration of the Immigration and Border Protection departments.
At this stage with Home Affairs we are dealing with mainly the same people in the same positions, however we envisage this will change in due course as integration proceeds.
Does AFIF have a good working relationship with the new organisation?
AFIF has good working relationships with a number of government agencies. When they are combined under one roof, so to speak, it will be interesting to see if those working relations continue to be as strong in the new regime.
Obviously we hope so, because we have worked long and hard to create good business relationships.
The Customs Brokers and Forwarders Council of Australia (CBFCA) has again suggested closer ties - even a possible merger - with AFIF to create a stronger voice and reduce operating costs. Is this something AFIF supports? Have any studies been done into potential savings if a merger were to go ahead?
Recent attempts to merge the two organisations failed for a number of reasons. However, it’s clear we communicate well and both already sit on a number of industry committees. We have a very good working relationship.
The prospect of a merger at some time in the future is possible, provided it is a good deal for our members and the wider industry in general. Opportunities (for efficiencies) will never be disregarded.
What is next in AFIF’s education and training programs?
Training and education in the freight industry has to move with the times. We monitor and examine each of our various courses to make sure they incorporate the latest industry technology and innovation for industry inductees as well as seniors seeking refresher training.
We have some areas of concern with some areas of business that are not covered by education and training that relate to the future of our industry. Our chief concern is that a lot of the junior positions are being outsourced not just to other countries but now with technology they are becoming centralised for processing.
Business is concerned there will be a resulting lack of expertise and working knowledge among those coming through to fill higher level management positions.
AFIF has taken the lead in researching to identify the future problems and seeking solutions to assist our membership and industry with future training and recruitment sources.
Is AFIF using the cloud-based technology that apparently is popular with millennials?
The AFIF ‘Crucial Skills’ project will identify the needs of our future workforce both in terms of education training and involvement. The proposed future industry induction training would involve cloud-based solutions but there will still be a need for a variety of training service applications both internet and face to face. Whatever works best for the profession.
What issues is AFIF focused on in 2018?
Security is a major focus in line with the government’s assessment of increased risk. AFIF is moving to fulfil its members’ requirements.
Globalisation and regionalisation have equal footing these days and we need to shift our emphasis in line with how they affect our membership’s operations in these changing times.
For example, Brexit, China’s Belt and Road initiative and the changed global interface policies from the USA have created new issues with a direct impact on global trade.
These events require monitoring and analysis to ascertain their impact on Australia’s trade and the forwarders who are responsible for a significant majority of freight movements.
In 2017 we saw big changes to international air cargo security requirements, particularly for US-bound cargo. Are more changes planned?
Yes, changes in security are likely to be constant and based on the national risk assessment. Implementation of the changes that took place in July 2017 was relatively smooth, but the next phase will require an expansion of those new rules to a wider community. At this stage we do not have clear details of the changes (the government has not released any). When they are known, AFIF will be involved in discussions with the relative government agencies and will provide advice on behalf of its members prior to implementation.
AFIF will be holding its 2018 conference in Sydney. How is the event shaping up?
We have changed the format for the 2018 event, which returns to Sydney after a long absence. In the past we elected to hold the annual event at a resort-type venue, but the Sydney show will be more in keeping with members’ desire to streamline the event, bearing in mind time constraints for many.
This year the conference will be held on one full day at the Novotel Brighton Beach, Sydney on 25 May but it will offer a Welcome Reception the night before the conference and will close with a Gala Dinner and have some fun functions and entertainment along the way.
The deputy minister for the Department of Home Affairs, Alex Hawke, has been invited to deliver the keynote presentation.
