Archives For Logistics

Hamburg Sud_1

Durban-based Hamburg Süd is the first shipping line – and the first South African Revenue Service (Sars) client – to be granted exemption from the requirement to submit paper manifests to local customs branches, thus becoming the first fully electronic cargo reporter.

While the electronic reporting of pre-arrival manifests to Sars has been a requirement since August 2009, shipping lines are, to date, still required to present pre- and post-arrival paper manifests to local customs branches in order to account for cargo. This was also because the data accuracy of electronic submissions varied significantly between different reporters.

Sars’ implementation of the new Manifest Processing (MPR) system in June 2016, provided industry with the mechanism to also report acquittal manifests electronically. Additionally, the system is able to match customs clearances to their corresponding cargo reports (manifests) in order to identify instances of non-reporting.

Three months after MPR was introduced, the facility for full paperless cargo reporting was made available to shipping lines and airlines who submit both pre-arrival and post-arrival manifests to Sars electronically; submit complete sets of manifests without any omissions; achieve a reporting data accuracy rate of 90% or higher in respect of both their pre-arrival and acquittal manifests reported for each of the three months preceding any application for exemption from paper reporting requirements; and can maintain that level consistently.

A significant benefit to carriers reporting electronically is the cost-saving of hundreds of thousands of rands spent per year in the paper and administrative costs associated with submitting paper manifests to Sars offices. The process is now more efficient allowing for improved risk management, security and confidentiality.

“Hamburg Süd’s core business strategy is to deliver a premium service to our customer, and to achieve this, compliance is a core driver. SARS paperless reporting is in line with our compliance and sustainability strategy,” said Jose Jardim, general manager of Hamburg Süd South Africa.

For Customs, the mandatory submission of cargo reports forms a significant part of the new Customs Control Act (CCA) in order to secure and facilitate the international supply chain.

With the impending implementation of Reporting of Conveyances and Goods (RCG) under the CCA – targeted for 2018 – carriers of internal goods in the sea and air modalities are urged to follow Hamburg Süd’s example and ensure that they become compliant in good time so that they can enjoy a smooth transition to the new legal dispensation.

Paperless cargo reporting would bring an end to one of the last remaining paper-based processes in customs while further contributing to the expedited processing of legitimate trade through an enhanced and integrated risk management environment.

According to a Sars spokesman technical stakeholder sessions to implement the reporting requirements introduced by the new Customs Control Act are due to commence soon and carriers and other supply chain cargo reporters are urged to attend in order to ensure they adapt their systems in good time.

Source: adapted from FTW Online, Venter. L, “German shipping line first Sars client to become fully electronic reporter”, September 14, 2017.

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Customs_&_Central_Excise_DKBThe Indian Customs department (CBEC) has allowed self-sealing procedure as of 1 October for containers to be exported, as it aims to move towards a ‘trust based compliance environment’ and trade facilitation for exporters.

In a circular to all Principal Chief Commissioners, the Central Board of Excise and Customs (CBEC) said exporters who were availing facility of sealing at the factory premises under the supervision of customs authorities will be automatically entitled for self-sealing facility.

It said that permission once granted for self-sealing at an approved premise will remain valid unless withdrawn. However, in case of change in the premise, a fresh approval from Customs department will be required.

“The new self-sealing procedure shall come into effect from October 1, 2017. Till then the existing procedure shall continue,” the CBEC said.

It asked field officers to notify a Superintendent-rank officer to act as the nodal officer for the self-sealing procedure.

The officer will be responsible for coordination of the arrangements for installation of reader-scanners.

Earlier in July, the CBEC had said it will introduce the system of self-sealing by 1 September , as against the practise of sealing of containers under the supervision of revenue officials.

However, the CBEC now said that exporters can self-seal containers using the tamper proof electronic seals from 1 October 2017.

Under the new procedure, the exporter will have to declare the physical serial number of the e-seal at the time of filing the online integrated shipping bill or in the case of manual shipping bill before the container is dispatched for the port.

The exporters will directly procure RFID seals from vendors.

“In case, the RFID seals of the containers are found to be tampered with, then mandatory examination would be carried out by the Customs authorities,” the CBEC said.

From October 1, the exporters will need to furnish e-seal number, date of sealing, time of sealing, destination customs station for export, container number and trailer track number to the customs authorities.

In a circular in July, the CBEC had said it endeavours to create a trust based environment where compliance with laws is ensured by strengthening risk management system and Intelligence setup of the department.

Accordingly, CBEC has decided to lay down a simplified procedure for stuffing and sealing of export goods in containers. Source: The India Times > Economic Times, 5 September 2017.

Luc Castera founder of Octopi, a tech company in the logistics industry, has recommended a series books to broaden culture and learning about the shipping industry. Ninety percent of everything around you was carried over on a shipping container before it reached you. It’s the industry that puts food in your plate, clothes on your back and enables the success of e-commerce globally. Yet, very few companies are trying to solve the hard problems facing this industry, says Octopi co-founder Luc Castera. If you are new to this industry, or if you have been working it in for 20 years and believe that learning should be constant, Luc highly recommends the following books.

1. The Docks by Bill Sharpsteen

Focusing on the Port of Los Angeles, The Docks delves into the unseen world of this highly successful enterprise. Author Bill Sharpsteen paints a picture of the port’s origins, zeroing in on the people that helped contribute to its economic prosperity. While Sharpsteen emphasizes the Port’s success, he also talks about its vulnerability with security and labor, while including personal stories from industry insiders. One perspective he includes is that of one of the first women longshoremen. The Docks demonstrates the energy behind this incredible port through dramatic photographs and personal perspectives.

2. The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson

The Box tells the story of the container and its beginnings. What started as a simple box, changed the future of the shipping and transportation industries collectively. The container idea was slow on the uptake and economist Mark Levinson tells the story of how, after a decade of struggle, it came to fruition and changed the transport industry for good. Levinson includes key notes about how the inclusion of the “box” brought some ports back to life, whereas others suffered with its implementation. Thanks to this extraordinary box, costs were cut in the transport sector and the global economy is able to thrive, today.

3. Port Management and Operations by Maria G. Burns

Port Management and Operations has created a manual filled with insights and strategies into the world of shipping. Through examination of port management practices on a global level and deconstructing them on commercial and technological levels, this manual provides readers with a new set of skills and perspective. Port Management and Operations touches on 4 themes: “Port Strategy and Structure, Legal and Regulatory Framework, Input: Factors of Production, and Output and Economic Framework.” This book also identifies strategies and provides insight into the future of shipping.

4. Port Business by Jurgen Sorgenfrei

For veterans or those just starting out in the shipping industry, this book breaks down the meaning of ports and explains the role they play in the global supply chain. With globalization, exporting has increased exponentially, and the shipping market is changing. Port Business breaks down and analyzes the struggles for small to mega-sized ports, providing insight into the industry’s future.

5. The Travels of a T-Shirt in the Global Economy by Pietra Rivoli

Through the perspective of a T-shirt, this narrative has a lot to say about globalization and international business. Following a T-shirt from Texas to Africa, author Pietra Rivoli reveals political, cultural, economic, and moral issues associated with international business. The reader is challenged to view trade through an unconventional perspective while evaluating the complex layers of business crossing borders.

6.The Shipping Man by Matthew McCleery

Matthew McCleery tells the story of a hedge fund manager turned shipping man. After deciding to buy a ship on a whim, Robert Fairchild enters the complex world of shipping. A stark contrast to his New York life, Fairchild embarks on a journey where he learns about everything from Somali pirates to the wealthy folk of Wall Street. Though he ends up losing his hedge fund, he gains the title of shipping man along with the knowledge associated with it.

7. Ninety Percent of Everything: Inside Shipping, the Invisible Industry That Puts Clothes on Your Back, Gas in Your Car, and Food on Your Plate by Rose George

Ninety Percent of Everything unveils the invisible world of shipping to the commoner’s eye. Author Rose George divulges the secrets of the “invisible industry” through her incredible adventure sailing from southern England to Singapore. Five weeks aboard The Maersk Kendal and countless miles later, George lets readers into the shipping industry from the perspective of someone with little experience. Her objective in writing this tell-all piece is to shed light on the otherwise closed-door industry and to inform consumers about the shipping life and all that entails.

Published by Maritime Executive, Luc Castera, August 23, 2017

TEU Token

The creators of a new industry-specific digital currency that shippers can use to book ocean shipments say so-called “cryptocurrency” could help reduce carrier overbooking and shipper no-shows, which cost the industry some $23 billion annually.

The Hong Kong-based 300 Cubits recently introduced the TEU, not the container unit but rather a digital dollar that replaces traditional currencies as the deposit for shipment bookings, providing greater visibility to the booking process and allowing users to penalize bad behaviour. Whereas other tech startups have introduced digital management platforms to achieve the same goals, 300Cubits’ founders say they’re offering something different: not a place for transaction, but a means of transaction.

The company introduced the new TEU crypto currency to the market, putting some up for sale and giving others away to container lines and shippers “who actively promote the tokens for early adoption.” The TEU tokens are blockchain-based, which means they are tethered to a decentralized, distributed digital ledger used to record transactions across many computers so that the record cannot be altered retroactively.

Blockchain is a largely back-end technology, which means there’s very little change for the user, both shipper and carrier, according to Johnson Leung, a longtime shipping finance analyst formerly with Jefferies who founded 300Cubits with his partner Jonathan Lee.

“The biggest change is the acceptance of TEU tokens as a booking deposit, which is a more commercial decision than a technical call,” Leung told, “We do not plan on a substantial change in terms of user interface experience other than having one more option for the user to choose whether to use TEU tokens and the amount to put it before the shipper clicks on the book button.”

The tokens were named TEU to honor, in a way, the classical unit of measurement for container shipping, said Leung.

“TEU is a kind of a classical unit for container shipping that is getting less and less used,” Leung said. “We just think that the people in the industry would appreciate the name as TEU when naming something that could be the money for the industry.”

In an era marked by the buzzword “disruption,” Leung was clear that TEU tokens are not disrupting any existing system or process in the container shipping industry. TEU tokens are like an industry-specific bitcoin, another blockchain-based cryptocurrency. Put simply, Leung said, “We play part of what the dollar does today in container shipping.”

According to a white paper prepared by the company, once TEU tokens are used to book shipment their value could be lost if a customer does not turn up with cargo or a carrier does not load cargo according to a confirmed booking.

Trust, or lack thereof, is the biggest pain point in the container shipping industry, according to 300 Cubits.

“Unlike ticket booking in airlines, customers in container shipping do not bear any consequence for not showing up for bookings. Industry people complain the lack of trust between liners and customers,” the company said in a statement. The TEU token can change that.

While it is aimed at tackling overbookings and no-shows and providing greater visibility into the container shipping industry, 300Cubits should not be confused with other tech firms attempting to accomplish the same feat through different avenues. Leung’s company only provides the means of transaction. It does not provide the actual space for where carriers and shippers can transact, like the New York Shipping Exchange, an online portal through which carrier cargo space can be booked and which also monitors whether the booking is fulfilled by shipper and carrier.

According to Leung, the container shipping industry is a $150 billion industry that has been in “constant distress” since the economic crisis of 2008. Subtle technological innovations, like digital currencies and digital marketplaces to use them, are going to be the means to ease that volatility.

Frequently Asked Questions regarding TEU – 300cubits.tech

300Cubits White Paper – 300cubits.tech

Source: www.dailyshippingtimes.com, 3 August 2017.

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A new collapsible 20ft container, which is currently in development, promises to save operators both money and space both at the terminal and in the supply chain, according to Port Strategy.

Navlandis’s ZBox claims to be able to take the place of empty containers, which take up around 25% of sea traffic, slashing both logistics and transportation costs.

This is because five folded units can fit into the space occupied by a current standard container potentially reducing operating costs by up to 50% and CO emissions by up to 20%.

This container has the same strength as conventional containers. In addition, it can be handled with the same machinery at all freight ports and with minimum human resources, which will make operating costs much more competitive.

The technology is still at prototype stage but reportedly has the backing of the Port of Valencia. Navlandis said that a good number of shipping companies have shown interest too.

Navlandis said that the 20-foot container complies with all ISO and CSC certifications, ensuring all loading, resistance and watertightness requirements of the logistics industry, with the same dimensions as a standard container. In addition, it is manufactured with the same parts as the standards require. Source: Port Strategy

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Historically, a customs officer’s “intuition” backed up by his/her knowledge and experience served as the means for effective risk management. In the old days (20 years ago and back) there wasn’t any need for all this ‘Big Data’ mumbo jumbo as the customs officer learnt his/her skill through painful, but real-life experience, often under bad and inhospitable conditions.

Today we are a lot more softer. The age of technology has superseded, rightly or wrongly, the human brain. Nonetheless, governments thrive on their big-spend technology budgets to ensure the safety of their economies and supply chains.

No less, the big multinational corporations whose ‘in-house’ business is no longer confined by national boundaries or continents are responsible for the generation of huge amounts of data which need to extend  to the limits of their operations. When the products of such business are required to traverse national boundaries and continents,  their logistics and transport intermediaries, financiers, and insurers become themselves tied up in the vicious cycle of data generation and transfer, also spanning national boundaries to ensure those products arrive at their intended destinations – intact, in time and fit for purpose. Hence we have what as become known as the international supply chain.

It does not end there. Besides the Customs authorities, what about the myriad of other government regulatory authorities who themselves have a plethora of forms and information requirements which must be administered and approved prior to departure and upon arrival of goods at their destination.

Inefficiencies along the supply chain culminate in delays with added cost which dictates the viability for sale and use of the product during delivery. These may constitute what is called non-tariff barriers (or NTBs) which negatively impact the suppliers credibility in international trade.

The bulk of this information is nowadays digitised in some for or other. It is obviously not all standardised and structured which makes it difficult to align, compare or assimilate. For Customs it poses a significant opportunity to tap into and utilise for verification or risk management purposes.

The term ‘Big Data’ embraces a broad category of data or datasets that, in order to be fully exploited, require advanced technologies to be used in parallel. Many big data applications have the potential to optimize organizations’ performance, (and here we have it) the optimal allocation of human or financial resources in a manner that maximizes outputs.

At this point, let me introduce one of the latest WCO research papers – “Implications of Big Data for Customs – How It Can Support Risk Management Capabilities” by Yotaro Okazaki.

The purpose of this paper is to discuss the implications of the aforementioned big data for Customs, particularly in terms of risk management. To ensure that better informed and smarter decisions are taken, some Customs administrations have already embarked on big data initiatives, leveraging the power of analytics, ensuring the quality of data (regarding cargos, shipments and conveyances), and widening the scope of data they could use for analytical purposes. This paper illustrates these initiatives based on the information shared by five Customs administrations: Canada Border Services Agency (CBSA); Customs and Excise Department, Hong Kong, China (‘Hong Kong China Customs); New Zealand Customs Service (‘New Zealand Customs’); Her Majesty’s Revenue and Customs (HMRC), the United Kingdom; and U.S. Customs and Border Protection (USCBP). Source: WCO

EmptyTrips

Founder and CEO of tech start-up EmptyTrips; Africa’s first smart transport marketplace says she is aware that the introduction of her new transport concept could possibly disrupt the logistics industry as we know it.

Benji Coetzee’s “Filling spaces to places” is a similar concept to that of Uber and Airbnb. It’s based on convenience and inexpensive transport services that pick up goods and take them to a clients destination faster, and cheaper than conventional logistics and road freight services.

“The EmptyTrips concept is based on smart algorithms that match empty trips on trucks, trains and planes, to the demand. This opens up access to cross-border runners using vetted transporters for your transport needs,” Coetzee said.

Logistic often account for a large portion of product and service costs, with transporters often battling with the reality of empty return legs. EmptyTrips has opened up a platform for users to offer their empty trips, find an empty trip from current postings, and request an empty trip as a customer. It aims to bridge the gap for competitive rates, and fill these empty return legs allowing the transporter to recover fees on otherwise empty trips while the customer pays less for transport.

“For too long we have focused on hard infrastructure, when we could be using technology to reduce congestion, delays and assist in our goals of high regional trade.

The on-demand transport service is likely to help with these problems and provide an ease to transporting goods from one place to another.

Transporters and senders of goods can sign-up to www.emptytrips.com. The transporters can bid for cargo needing to be moved and shippers can get competitive open bids. Source: TransportWorldAfrica.com

Uber-Freight-Truck

Global transportation network company Uber has launched Uber Freight – an online booking application “which aims to empower truck drivers and small trucking companies to run and grow their business”, according to a blog on the new Uber Freight site launched last week.

Uber Freight has its own app, of course, which is available on iOS and Android. There’s a sign-up page for drivers, who will be vetted before they’re allowed to use the Uber Freight. The service “takes guesswork out of finding and booking freight, which is often the most stressful part of a driver’s day,” according to Uber, which says it’s dismantling a process that typically takes “several hours and multiple phone calls.”The blog explains that vetted users download the app, search for a load, and simply tap to book it.

“We send a rate confirmation within seconds, eliminating a common anxiety in trucking about whether or not the load is really confirmed,” said an Uber Freight spokesperson.

Another advantage of the new booking service is Uber Freight is committed to paying within a few days, fee-free, for every single load.

Drivers can browse for nearby available loads, see destination info, distance required and payment upfront and then tap to book.

The idea is to streamline something that used to take hours of back and forth negotiation via phone or other communication, putting it in a simple workflow with confirmation of job acceptance and rates paid within a few seconds.

Uber’s not the only company trying to change the trucking industry. Amazon is working on a similar service that would pair drivers with companies that need goods delivered. Manufacturers big and small are also working on bringing semi-or fully-autonomous technology to long haul trucks.

Uber Freight is currently only available in the United States.

Mozambique flagThe Maputo Corridor Logistics Initiative (MCLI) recently published a communication informing it’s stakeholders about the Single Road Cargo Manifest as received from the Mozambican Revenue Authority (MRA).

The MRA has informed MCLI that the 2nd phase of the Single Road Cargo Manifest process will come into effect from the 16th of June 2017, when all international road carriers transporting goods to Mozambique through the Ressano Garcia border post will be required to submit the Road Cargo Manifest on the Single Electronic Window platform in compliance with national and international legislation. MRA Service Order Nr 17/AT/DGA/2017, in both Portuguese and English, is attached for your consideration.

For information and full compliance by all members of staff of this service, both (National and Foreign) International Cargo Carriers, Clearing Agents, Business Community, Intertek and other relevant stakeholders, within the framework of the ongoing measures with a view to adequate procedures related to the submission of the road cargo manifest, for goods imported through the Ressano Garcia Border Post, in strict compliance to both the national and international legislations, it is hereby announced that, the pilot process for transfer of competencies in preparation and submission of the road cargo manifest to Customs from the importer represented by his respective Clearing Agent to the Carrier is in operation since December 2016.

Indeed, the massification process will take place from 15th of April 2017 to 15th of June 2017, a period during which all international carriers (national and foreign) who use the Ressano Garcia Border, are by this means notified to register themselves for the aforementioned purposes following the procedures attached herewith to the present Service Order.

As of 16th of June 2017, the submission of the road cargo manifest into the Single Electronic Window (SEW) for the import regime, at Ressano Garcia Border, shall be compulsory and must be done by the carrier himself.

International road carriers must therefore register for a NUIT number with the Mozambican Revenue Authority between the 15th of April and the 15th of June 2017 and the necessary application form is included. Road carriers are urged to do so as soon as possible to enable the continued smooth flow of goods through the border post.

Specific details can be found here! 

Source: MCLI

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Forget increasing the number of Free Trade Zones at and around UK ports, real thought should be given to whether Britain could become a nationwide FTZ, a panel discussion at Multimodal heard today.

The discussion, organised by the Chartered Institute of Logistics and Transport, weighed the advantages and disadvantages of setting up more FTZs as Britain’s starts its exit journey from the European Union.

While Geoff Lippitt, business development director at PD Ports, said that there was no “desperation for the traditional type of FTZ”, he conceded that as UK ports enter a new post-EU member era, any method that could improve the competitiveness of the nation’s exports should be considered.

Tony Shally, managing director of Espace Europe, added that FTZs would give the UK a great opportunity to bring manufacturing back to the country.

Bibby International Logistics’ managing director Neil Gould went a step further, calling for the creation of a ‘UK FTZ’, to facilitate a joined up environment in which it is easier to move trade. “We need to think how we work together as an industry and how we join everything up to make the UK more competitive,” he said.

However, Barbara Buczek, director of corporate development at Port of Dover, sounded a word of caution, warning that FTZs could actually be detrimental for ro-ros, an important cargo mode for the south UK port. “It’s a great concept, but we also have to be mindful of the guys on the other side who we have to ‘play’ with,” she said, adding that she is “a bit sceptical” about how an FTZ plan could pan out. Originally published by Port strategy.com

For thousands of years, maritime authorities have relied on tip-offs, patrols, investigations and random inspections to find smuggled goods. Today they have a variety of additional methods at their disposal, and one of the most promising is also the most intuitive: looking at every vessel’s historical behavior.

Israeli firm Windward was founded to collect, vet and analyze AIS, along with a variety of other commercial data sources on maritime traffic. Just having access to the massive quantity of data that the world’s fleet generates is not sufficient: it could take weeks for a human operator to sift through the records of just a few hundred ships, and law enforcement agencies need actionable intelligence in real time.

This is where Windward excels. Its system uses proprietary algorithms to find specific ships that may be involved in illicit activity based on a number of “red flag” behaviors. Loitering just off of a village or an uninhabited bay may be a sign that a vessel is engaged in tendering goods or passengers from shore. Similarly, when a ship turns off its AIS transmitter or changes its AIS reporting name near smuggling hotspots, it may be taking on contraband. And a ship with a well-established trading pattern that suddenly heads to a troubled region may be engaged in a new (and not entirely legitimate) line of business.

These behaviors are obvious when Ami Daniel, Windward’s CEO and co-founder, walks through a few examples in a live presentation. The novel development isn’t the signal pattern – it is the fact that his firm can automatically find it, without knowing which ships to examine in advance. It doesn’t matter if a vessel is operated by a reputable company or a known North Korean front – Windward’s system analyzes records for the entire fleet, and if a vessel looks suspicious, it gets flagged.

A few cases illustrate the potential of this approach. In Windward’s best-known example, a Cyprus-flagged reefer with a history of trading between Northern Europe and West Africa headed to a port in Ukraine – well outside its normal pattern. It returned towards the Strait of Gibraltar, but before passing through to the Atlantic, it lingered off of Algeria and Morocco for 12 days. It turned its AIS on and off multiple times in busy shipping lanes during this loitering period. Windward notes that this region is at high risk for the smuggling of arms and narcotics.

After passing through the Strait of Gibraltar, the vessel headed north towards Scotland, where it arrived on January 14. It loitered again for half a day in a small bay off the isle of Islay – an area without a port for a 4,200 dwt ship. Windward’s system flagged this behavior as a potential sign of a smuggling drop-off, though it is also possible that the ship anchored up to wait out foul weather or to time its arrival.

This particular case made headlines in the UK when Windward told media that hundreds of vessels with suspicious records entered British waters in the first two months of 2017. The story was picked up by the Global Mail, Sky News and the Daily Record, and Scottish politicians called on the authorities to look into the matter: “This requires investigation, certainly by the police and, I suspect, by the security authorities to clarify what’s going on,” said member of Scottish Parliament Mike Russell.

These results capture attention, and Daniel says that the firm is marketing the system’s abilities to multiple government agencies. The kind of smuggling/trafficking behavior that it can identify is often associated with organized crime and the financing of terrorism, so it has a great deal of appeal for intelligence applications as well as maritime security / maritime domain awareness. He suggests that for now, commercial users (traders, brokers and others) are not a target market, nor does he foresee branching out into similar offerings for trucking or air freight. Windward does one thing well – very well – and Daniel expects that it will invest in its core strength for some time to come. Original article published in The Maritime Executive.

The UK’s Daily Mail  reports the arrival of a freight train in east London has marked a new era for the 2,000-year-old trading route. It is the first freight train service from China to the UK. The route known as the ‘Silk Road’ once helped bring a wealth of goods from China to Europe.

The train pulled in to Barking after an 18-day journey from Yiwu, a wholesale market town in the eastern Chinese province of Zhejiang. It had passed through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France, finally crossing under the English Channel into Britain.

Laden with 68 twenty-foot equivalent containers, the train brought in a cargo of small commodities including household items, clothes, fabrics, bags, and suitcases.

The Silk Road Economic Belt and the 21st-century Maritime Silk Road, also known as The Belt and Road (abbreviated B&R), One Belt, One Road (abbreviated OBOR) or the Belt and Road Initiative is a development strategy and framework, proposed by Chinese paramount leader Xi Jinping that focuses on connectivity and cooperation among countries primarily between the People’s Republic of China and the rest of Eurasia, which consists of two main components, the land-based “Silk Road Economic Belt” (SREB) and oceangoing “Maritime Silk Road” (MSR). The strategy underlines China’s push to take a bigger role in global affairs, and its need for priority capacity cooperation in areas such as steel manufacturing. Wikipedia.

Ten containers were taken off at the German hub of Duisburg. The remainder arrived in London at Barking’s Eurohub freight terminal. The service is faster than sending goods by sea. Weekly trains will initially be run to assess demand.

A number of different locomotives and wagons were used as the former Soviet Union states have a larger rail gauge than the other countries involved. China Railway already has freight services to a number of European destinations, including Hamburg and Madrid.

They are part of China’s One Belt, One Road programme of reviving the ancient Silk Road trading routes to the West, initially created more than 2,000 years ago.

Run by Yiwu Timex Industrial Investment, the Yiwu-London freight service makes London the 15th European city to have a direct rail link with China after the 2013 unveiling of the ‘One Belt, One Road’ initiative by Chinese premier Xi Jinping.

UK Prime Minister Theresa May  said the relationship with China remains ‘golden’ as she seeks to bring in billions of dollars in Chinese investment as Britain prepares to leave the European Union. Read the full original Daily Mail article here!

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The U.S. National Retail Federation (NRF) and a coalition representing retailers, manufacturers, truckers, transportation intermediaries and other business groups has asked the Federal Maritime Commission to set new policy preventing terminal operators and ocean carriers from charging unfair fees when uncontrollable incidents such as storms and strikes keep cargo from being picked up from ports on time.

“Recent events involving port congestion, labor strife, an ocean carrier bankruptcy, inclement weather and other disruption events have had crippling effects on U.S. ports and the stakeholders who rely on the efficient movement of goods,” the 25-member Coalition for Fair Port Practices said in a petition filed with the commission. During the incidents, storage and use charges have continued “even though shippers, consignees and drayage providers had no control over the events that caused the ports to be inaccessible and prevented them from retrieving their cargo or returning equipment.”

Cargo owners and trucking companies are normally given a certain number of free days to pick up containers of imported goods from ports after they have been unloaded from ships. After that, they can be charged demurrage, a fee intended to ensure that containers are removed quickly and efficiently. In addition, detention and per diem fees can be charged if the cargo containers and chassis used to haul them are not returned within a specified time.

That system was thrown into disarray this fall when the bankruptcy of South Korea’s Hanjin Shipping left cargo owners unable to pick up containers on time and later prevented them from returning containers and chassis, says the NRF.

Delays have also occurred during other port disruptions cited in the petition, including the 2014-2015 labor slowdown at West Coast ports and Hurricane Sandy on the East Coast in 2012.

The coalition said millions of dollars in fees have been charged during such incidents:

  • A retailer was charged $80,000 because it took up to nine days to retrieve containers when only four free days were allowed.
  • A trucking company was charged $1.2 million after long lines at New York and New Jersey ports kept it from returning containers on time.
  • A transportation company was charged $1.25 million after containers it tried to return were turned away at West Coast ports. The amount was eventually reduced to $250,000 but only a year after the company was forced to pay the fees upfront.

“Shippers, consignees and drayage providers do not create and cannot avoid these events,” the group said. “They cannot control the weather. They do not choose the terminals that carriers use. They are not parties to port labor collective bargaining agreements.”

The federal Shipping Act requires that the fees and related practices be “just and reasonable.” The petition asks the FMC to adopt a policy that would require free days to be extended during times of port congestion, weather-related events, port disruptions or delays caused by government actions or requirements beyond the control of the parties picking up or returning containers. Demurrage and similar fees charged during such incidents would be declared “unreasonable.” In some cases, “compensatory” fees could be charged provided that they did not exceed actual storage or equipment use costs. The proposed policy would apply to ocean carriers and marine terminal operators. Source: Maritime Executive

dhl-3d-printing-study3D Printing is an interesting invention which foresees some radical developments in the manufacturing and logistics space in years to come. It also suggests that Customs administrators need to monitor these developments as they may likewise have a profound effect on how the actors in this space operate, including possible changes to legislative and compliance models.

DHL has released its latest Trend Report – 3D Printing and the Future of Supply Chains. DHL has been testing a variety of both 3D printing hardware and techniques for several years and has identified applications that have potential to redefine manufacturing and supply chain strategies. While the 3D printing market is estimated to grow between US$180 billion and US$490 billion by 2025, the report however finds it will not become a substitute for mass-production but a complementary process.

Ther report recognizes 3D printing as a transformative technology. However, it is not a magic bullet that will render factory mass production and manufacturing obsolete. Its exciting potential lies more in its capability to simplify the production of highly complex and customizable products and spare parts – and this could bring logistics and manufacturing closer together than ever before.

Also known as additive technology, 3D printing involves manufacturing products by layering heated plastic or metal injected from the nozzle of a 3D printer onto a plate to create a three-dimensional object, potentially replacing processes such as forging and molding at a fraction of the cost. It can lead to improved product quality, multiple products being made by a single printer, new types of products – and new supply chain strategies and models.

Factors currently limiting more widespread adoption of 3D printing – around since the 1980s – include lack of management knowledge, economic and technological issues. Many printers can use only one material and costs are still high for industrial-grade 3D printer. As well as facing warranty, liability and intellectual property issues, 3D printing needs to become faster, more agile and more advanced before it can become a core production technology.

Ther report highlights opportunities for companies to team up with logistics providers offering 3D printing. These areas include ‘spare parts on demand’, a model that would cut enterprise storage costs; ‘end-of-runway services’ for fast production of time-sensitive parts, and ‘product postponement services’ to increase customization options and simultaneously reduce lead time to the customer. Source: DHL

inland-port-7The World Customs Organization (WCO) organized a National Workshop on Inland Depots under the sponsorship of the Customs Cooperation Fund (CCF)/Japan and the Japan International Cooperation Agency (JICA). It was held from 20 to 22 September 2016 in Savannakhet Province, Lao People’s Democratic Republic.

Twenty six Customs officers from the Lao Customs Administration participated in the workshop, along with guest Customs experts from The Former Yugoslav Republic of Macedonia, Japan and JICA. Mr. Somphit Sengmanivong, Deputy Director General of the Lao Customs Administration, opened the workshop. He highlighted the importance of Inland Depots as a national strategy to secure his country’s economic growth and sought participants’ active participation in the discussions on this topic.

Presently, there is no clear definition of “Inland Depot” and many similar terms, such as Dry Port, Inland Terminal, Free Trade Zone and Special Economic Zones, are used in the international logistics. During the three-day workshop, participants discussed the functions and a possible definition of Inland Depot from a Customs perspective.

AmatiComment – Inland container terminals serve as important hubs or nodes for the distribution and consolidation of imported and export destined cargoes. There are 16 Landlocked countries in Africa, which signifies the importance of hinterland logistics development and its consequential impact on regional trade groupings. Consequentially, it behooves governments to understand and support the logistics supply chain industry in maximizing inland transportation (multi-modal) infrastructures to achieve a common and mutually beneficial economic environment. Furthermore, the more facilitative these arrangements, the better opportunity there is for success and longer-term economic sustainability.

The WCO Secretariat made presentations on international standards for relevant procedures, including Customs warehouses, free zones, Customs transit, inward processing, clearance for home use and temporary admission. Experts from The Former Yugoslav Republic of Macedonia and Japan described their national and regional experience of Customs warehousing, and Customs transit procedures. The JICA expert presented the bonded procedures applied by neighbouring countries to Lao People’s Democratic Republic. Lao Customs administration explained their national system for Inland Depots and a logistics company of Lao PDR shared its expectations on inland depots.

On the last day, participants discussed the challenges and possible solutions to enhance the functional and efficiency of Lao’s Inland Depots. Possible solutions, such as the use of modern information technology, further cooperation with the private sector, clear regulations on relevant procedures, coordinated border management and international cooperation were considered. Source: WCO

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