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Thursday, 20 June 2019
THE AUSTRALIA-Singapore mutual recognition arrangement (MRA) on authorised economic operator (AEO) came into effect May 15.
Under the MRA, secure trade partnership (STP) companies certified by Singapore Customs as having robust security practices and lower risks can now avail themselves of facilitated Customs clearance for goods exported to Australia.
Likewise, Australian companies certified by the Australian Border Force under the Australian trusted trader (ATT) program will enjoy similar facilitation for goods exported to Singapore.
Singapore Customs has advised STP-Plus and STP companies importing from or exporting to ATT companies to obtain the relevant AEO code and declare it in the TradeNet declaration.
STP-Plus and STP companies should provide their STP code to business partners in Australia. Those partners need not be ATT-accredited companies.
Singapore Customs’ director-general Ho Chee Pong met with an ABF delegation led by the commissioner, Michael Outram, prior to the MRA coming into effect.
The two sides had what was described as ‘an insightful discussion on trade digitisation strategies and plans to leverage technology and automation to streamline trade processes’.
Singapore Customs shared updates on the Networked Trade Platform and how it enables a seamless and secure flow of goods and services by connecting parties along the trade value chain.
Also covered in discussions were ways to enhance bilateral and regional customs cooperation as well as views on strengthening trade security, facilitation and enforcement.
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Thursday, 20 June 2019
AUSTRALIA and most if not all of the Asia-Pacific region is likely to become increasingly affected - both directly and in many indirect ways - by the ongoing tariff spat between China and the United States.
Spat really is too gentle a word for a trade war that is not only costed in mega-billions of dollars, but also impacts increasingly on millions of people, affecting their well-being and also - potentially - their discretionary spending (and thus impacting air freight demand).
It’s not likely to spill over into actual war. But even tense encounters between patrol aircraft or naval units add to the unease. This sort of activity can also cause problems for air cargo as ‘no go’ areas are designated or carriers opt for extra caution despite added costs and time-in-air.
And while the China-US problem is to the forefront, there also are other danger zones, such as US/Venezuela, while the Middle East continues to display volatility, weakening the region’s role as a trading and cargo hub.
It all adds up to a downturn in airfreight, with a marked drop in shipper demand since February. As IATA director general Alexandre de Juniac said recently: “It will clearly be a difficult year for world cargo.”
To counter the downturn, there have been calls for business to take a positive stance, treating the current situation as just part of a trade cycle which has highs and lows. That is a simplistic ‘solution’ when actual shipments are dropping heavily because of tariff barriers. It is unrealistic to expect traders to generate business more or less out of the blue when all the indicators are veering towards the negative end of the scale.
Even worse, perhaps, is the underlying loss of business confidence. This is always open to debate because it is subjective, but quantifying tools exist that strengthen its credibility as a measuring figure.
Business confidence has the downside of being self-fulfilling. Point it in one direction for more than a month or two and it is a major challenge to turn around.
Interestingly, air cargo is being watched more carefully by economic pundits, largely because of the key role played by the sector in shipping computer, mobile phone and similar e-commerce units from China and elsewhere in the region to the West.
We’re beginning to hear the term ‘aero politics’ more. First raised only a few years back it is now chosen as shorthand for the relationship between aviation, trade and politics.
Many in air cargo wish the industry wasn’t on the front line of 2019 trade wars. On the other hand, at least we are no longer taken for granted or under-appreciated as a key player in global commerce.
- Kelvin King
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Thursday, 20 June 2019
IN a development seen as a positive indicator of refreshed industry participation, record numbers of delegates attended the 2019 Customs Brokers and Freight Forwarders Federation of New Zealand www.cbaff.org.nz conference in Queenstown.
As noted in an earlier e-news brief, the theme of this year’s conference was ‘Disruption’ with speakers on subjects ranging from blockchain technology and straight-through digital processing to the upcoming GST charges on low value imported goods.
Comedian, mental health educator and 2019 New Zealander of the Year Mike King was a very well-received keynote opening speaker. He urged employers to be more aware of supporting their employees’ mental health, to be understanding of errors and to share their own mistakes with their staff.
“Every time you make a mistake and come back from a mistake, you come back bigger and stronger,” he said. “That is how you build resilience. Resilience comes from failing and getting back up. Let your employees know about your mistakes, let your kids know about your mistakes.”
As always, biosecurity was a major focus of the conference, with Graeme Marshall, Biosecurity 2025 Steering Group member and chair of NZ’s Biosecurity Ministerial Advisory Committee, urging industry members to take a more active role in engaging Kiwis in biosecurity.
Biosecurity 2025 is a partnership between the public, organisations, Māori, and central, local and regional government. Its aim is to get all New Zealanders involved in pest and disease management, and make the biosecurity system more resilient and future-focused.
Marshall said very few businesses are currently participating in promoting these goals. “I challenge you: Do you have a biosecurity champion in your business?
“Why, when you play such a huge part in the biosecurity system, are you not more involved? There are many ways in which Customs brokers and freight forwarders can get involved. Upload news, have those discussions in the boardroom, sign up to the 2025 business pledge.”
Roger Smith, Ministry for Primary Industries (MPI) chief operations officer and head of Biosecurity New Zealand, acknowledged that biosecurity processing delays have flown through, hurting the sector, particularly during the 2018/19 Brown Marmorated Stink Bug season.
Smith outlined steps MPI is taking to address this, including boosting staff numbers, updating technology and improving its queuing systems and targeting ability and overhauling import health standards. He also said MPI aims to work more closely with its Australian counterparts, to enable trade to move more freely in the face of continued rigorous biosecurity measures.
Richard Bargh, NZ Customs’ group manager revenue and assurance, also outlined plans for several pieces of work aimed at improving services.
These include establishing a centre of excellence for temporary import entries, working with MPI on joint border analytics and a pilot project to extend the Secure Export Scheme to air.
The challenges of attracting young talented people to enter the industry were a major focus of the final day.
A panel including new CBAFF vice president Rachel Madden, 2017 CBAFF Young Achiever winner Phillip Burgess, 2019 winner Natarlia Harold and 2019 finalists Adela Bright and Henry Hawkins, shared their views on this – with a strong theme being lack of industry visibility among young people, careers advisors and the public.
Australian Federation of International Forwarders chief executive Brian Lovell talked about the steps AFIF has taken and the significant investment the Australian industry has made to address this issue through its Make Your Move career education campaign.
AFIF chair Paul Golland also addressed delegates, urging New Zealand industry support in addressing issues around the IATA FIATA Air Cargo Program ‘no responsibility’ clause.
The CBAFF conference traditionally has a strong focus on networking, including a speed networking event. Given the Queenstown location, the 2019 conference dinner had a ‘Southern man and woman’ theme. Delegates dressed appropriately for the occasion – with check shirts and all-weather shorts the order of the evening - and participated enthusiastically in a sheepdog whistle contest, revealing talents hitherto unsuspected.
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Thursday, 20 June 2019
IN the US Pacific Northwest it’s become as big a tradition as the annual global release of Beaujolais Nouveau in late November... and it is significant in air cargo terms, too.
This is the first shipment of fresh Copper River salmon for sale in the Pacific Northwest and beyond, marking the beginning of the salmon season.
On May 17 a B737-700F from the Alaska Air Cargo www.alaskair.com fleet – painted as a giant salmon and known as Salmon-Thirty-Salmon – touched down in Seattle with 18,000 pounds of the fish. By noon a total of 50,000 pounds had been dispatched from Alaska for Seattle and other US ports.
Following tradition, the first Copper River salmon was kissed on arrival.
“Supporting the Alaska seafood industry has been a core part of the airline's history,” said Jason Berry, managing director of Alaska Air Cargo. “We applaud the state of Alaska and our seafood partners for setting the standard for sustainable fishing practices, which allows salmon lovers to enjoy some of the best fish in the world.”
Seafood processors and Alaska Airlines follow rigorous cold-chain standards – including an annual training program - to provide a temperature-controlled environment for correct food handling. The goal is to keep seafood moving rapidly throughout the journey on Alaska Airlines and maintain a consistent temperature range from the time it leaves the water to when it arrives at stores and restaurants.
Alaska Air Cargo partners with the state’s three largest seafood processors - Trident Seafoods, Ocean Beauty Seafoods and Copper River Seafoods – on the annual salmon delivery operation.
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Thursday, 20 June 2019
EMIRATES SkyCargo has commenced handling pharmaceutical cargo at a new purpose-built facility in Chicago. The facility, dedicated solely to pharmaceutical shipments, is spread over 1,000 square metres with scope for additional expansion and provides comprehensive protection for pharma cargo through temperature-controlled zones for acceptance and delivery, pharma cargo build up and break down, storage and direct ramp access. The facility has a capacity of 15,000 tonnes of pharma shipments per annum.
“Having a dedicated facility at one of our busiest stations for pharma on our network is a big boost to our credentials and capability,” said Nabil Sultan, divisional senior vice president, Emirates SkyCargo.
“This was also a unique model wherein we worked closely with the ground handler and were involved in the planning for the facility from the very beginning.”
The facility offers temperature controlled zones (2-8 degree Celsius and 15-25 degree Celsius) for acceptance and delivery, pharma cargo build up, break down and storage. The proximity of the facility to the ramp also means that cargo has to spend less time in transit to and from the terminal and the aircraft.
Expansion of global pharma corridor network
The dedicated pharma facility in Chicago is part of the carrier’s broader strategy to enhance protection for temperature sensitive pharma shipments from origin to destination.
Emirates SkyCargo now has expanded its initial network of 12 pharma stations to 20.
Commenting on pharma corridors, Henrik Ambak, Emirates senior vice president, Cargo Operations Worldwide, said: “Pharmaceutical cargo being transported by air is growing in sophistication and complexity in terms of the strict regulations for handling and temperature control. We introduced the pharma corridors initiative because we wanted to expand the required high standard of handling for pharma shipments further into our network and serve markets better from origin to destination.”
GDP recertification
Emirates SkyCargo’s pharma operations in Dubai including the 24/7 trucking operations between its terminals at Dubai International Airport and Dubai World Central have been certified as compliant to EU GDP (Good Distribution Practices) guidelines this year.
The carrier first received GDP certification in 2016 which was then revalidated in 2017 and 2018. In 2019, the air cargo carrier went through a rigorous audit by Bureau Veritas where its pharma handling facilities and processes were evaluated completely from the ground up.
With over 8,000 square metres of dedicated pharma storage and handling space, the airline operates the world’s largest multi-airport GDP certified hubs in Dubai. During the financial year 2018/19, the carrier transported more than 75,000 tonnes of pharmaceuticals through its network.
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Monday, 29 April 2019
AIRPORTS Council International (ACI) World says February was a challenging month for the air transport industry’s freight volumes.
Global freight declined by 5.4 per cent, the largest monthly loss since 2013. The global 12-month rolling average stood at 1.8 per cent at the end of February, down more than four percentage points since mid-last year.
“While the passenger market has shown less vulnerability to geopolitical events than the freight market in recent years, it has posted moderating growth rates since November,” ACI World director general Angela Gittens said.
International freight was the most significant contributor to the industry’s decline in February, posting a 6.7 per cent loss on a year-over-year basis. Both international and total freight 12-month rolling averages have been inching closer to zero growth and now stand at one and 1.8 per cent respectively.
Domestic freight volumes posted a loss of 2.7 per cent for the month. The global domestic segment’s 12-month rolling average remains stronger, mostly due to North America’s 3.7 per cent growth rate for 2018.
Africa was the only region with positive freight volume growth in February, with 4.9 per cent growth which contributed to its 12-month rolling average of 10.8 per cent. Asia-Pacific’s freight volumes declined by double-digits in all segments.
The international segment fell by 11.6 per cent, while the domestic segment declined 13.1 per cent, resulting in a -12 per cent figure for the month. Unless the trend is reversed next month, the region’s 12-month rolling average will be brought below zero.
Europe and the Middle East fell by 3.1 and 2.9 per cent respectively. Both regions have limited domestic segments so their declines were fuelled almost entirely by the international segment.
North America’s total freight declined by 1.6 per cent in February.
The slowdown was driven first and foremost by a drop in international freight which recorded - six per cent for the month. The domestic segment, which had supported the region for several months while other markets saw declines, also started showing signs of difficulty, reaching 1.1 per cent after growing by six per cent in January. The region’s total freight 12-month rolling average remains the highest of the three major markets, at four per cent.
Latin America-Caribbean’s results followed the general trend, declining by 0.8 per cent in February. The region’s 12-month rolling average remains fairly high at 6.1 per cent, though it has been steadily losing momentum since benefitting from a particularly strong first quarter in 2018.
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Monday, 29 April 2019
CARGO Community Network (CCN) has partnered with Microsoft to introduce the world’s first blockchain-based air cargo billing, costing and reconciliation system.
The system promises to transform air cargo billing processes, minimise billing discrepancies, accelerate billing reconciliation and provide near real-time revenue recognition to enhance efficiency for airlines, cargo agents and freight forwarders involved in the entire supply chain.
Leveraging Microsoft’s fully-managed blockchain service on Azure, CCN is now able to deliver a single source of information for air cargo shipment rates (computed and updated directly to blockchain), shipment details and billing processes via blockchain, with real-time updates provided by stakeholders.
“The typical air cargo billing, costing and reconciliation process can involve many stakeholders along the entire supply chain. These processes are also manual, manpower intensive and prone to error.
“Using blockchain on Microsoft Azure shortens the billing cycle from up to three weeks to a matter of hours and can reduce discrepancies while enabling greater accountability and visibility across the entire supply chain,” said Teow Boon Ling, ceo at Cargo Community Network.
The system remedies problems including:
* A long wait for post-shipment billing, up to three weeks after the flight has departed.
* A long process to check complex freight rating rules to be applied for every shipment.
* Reconciliation by airlines and freight forwarders for shipments that were moved weeks before.
In addition, CCN’s partners had to engage with multiple parties to complete the air cargo billing process (see figure 1). The entire process – from requesting for rates to billing and reconciliation - could take weeks.
By using blockchain on Azure, stakeholders in the supply chain can now retrieve information from a single source in real-time, including shipment details from the flight manifest (FFM), freight status update (FSU) and airway bill (FWB) to facilitate downstream billing and costing processes. Airlines and freight forwarders can also update their shipments and compute charges in real-time through the built-in smart contract feature for upfront reconciliation.
This, says CNN, provides timely financial information to stakeholders while enabling greater agility in revenue recognition, decision-making, risk management and customer service.
“In the competitive air cargo industry where speed and efficiency are key differentiators, technology can play an important role to enable greater operational efficiency across the entire supply chain.
“By using a robust, blockchain on Azure hybrid cloud set-up with high availability, Cargo Community Network is well-positioned to help airlines and freight forwarders to be quicker and more efficient with their billing processes, which can translate into tangible value-add for the industry across the board,” said Kevin Wo, managing director at Microsoft Singapore.
“Delivering convenience and simplicity to our partners has always been at the core of what we do.
“With our blockchain-based air cargo billing, costing and reconciliation system rolling out to our broader user community, we believe it will bring added value to all our airline and freight forwarding partners, and strengthen our position as the leading provider of innovative solutions for the air cargo industry,” added Teow.
“To further solidify our commitment to make this world a safer place, the system recognises the threats and increasing challenges of today and provides the levels of border integrity that governments and their communities expect in such a way that sets world benchmarks for cross border trade,” said Nadya Kamali (pictured), Customs World’s chief executive.
