Archives For maritime transport

bascap

Leaders from global shipping firms, freight forwarders, brand owners whose products are counterfeited and industry organizations representing both industries signed a joint Declaration of Intent to Prevent the Maritime Transport of Counterfeit Goods in Brussels last week.

The event marked the first time the global shipping industry and brand owners have made a public commitment to work together to stop the transport of counterfeit goods on shipping vessels.

Initial signatories include the leading global shipping firms and freight forwarders and ten major multinational brand manufacturers, along with the International Federation of Freight Forwarders Associations (FIATA), and the International Chamber of Commerce’s (ICC) Business Action to Stop Counterfeiting and Piracy (BASCAP) and Commercial Crime Service (CCS).

More transporters, brand owners and their industry associations are expected to join the voluntary initiative as awareness grows.

According to the United Nations Office on Drugs and Crime, about 90 percent of all international trade is moved around the world in more than 500 million containers on 89,000 maritime vessels. While this represents approximately 90 percent of all international trade, UNODC says that less than two percent of these containers are inspected to verify their contents. This results in enormous opportunities for criminal networks to abuse this critical supply chain channel to transport huge volumes of counterfeit products affecting virtually every product sector.

According to a recent OECD/EUIPO report, $461 billion in counterfeit goods moved through international trade in 2013, with almost 10 percent being shipped on maritime vessels.

Maersk Line and CMA CGM Group, two of the largest global transport companies with approximately half of all global shipping, and Kuehne and Nagel and Expeditors, two of the leading freight forwarding and logistics companies with total revenues of more than $27 billion, were the first in their industries to sign the Declaration.

The non-binding Declaration acknowledges the “destructive impact” of counterfeits on international trade. It calls on the maritime transport industry to address it “through continuous proactive measures, and corporate social responsibility principles.” The Declaration includes a zero tolerance policy on counterfeiting, strict supply chain controls and other due diligence checks to stop business cooperation with those suspected of dealing in the counterfeit trade.

This commitment paves the way for new voluntary collaboration programs between intermediaries and brand owners to stop abuse of the global supply chain by counterfeiters.

“We are proud to be among the first in our industry to sign this historic Declaration,” said Michael Jul Hansen, Customs and Trade Compliance Lead for Maersk Line. “Maersk has been a leader in taking steps to prevent the use of our vessels for the shipment of counterfeit and other illicit goods, and this Declaration is a reaffirmation of our intent to do everything we can to ensure our ships are counterfeit free.”

The Declaration is a direct reaction to the concerns of brand owners that vessels transporting their legitimate products were also being exploited by criminal networks to transport fake versions. This phenomenon was summarized in a landmark report on the Role and Responsibilities of Intermediaries: Fighting Counterfeiting and Piracy in the Supply Chain, published in 2015 by BASCAP. Following publication of the report, BASCAP organized a working group of its members to initiate a cross-sector dialogue with the transport industry to discuss ways to work together to find voluntary solutions. Source: Maritime Executive 

Advertisements

Multimodal Freight

Just to keep them on their toes – the following will undoubtedly play a factor in many customs administration’s risk management and intel systems.

Air freight rates slipped in December as the trade returned to business-as-usual following the volume boost of earlier hi-tech product launches, according to Drewry’s new monthly report, Sea & Air Shipper Insight. Drewry’s recently launched East-West Air Freight Price Index, a weighted average of air freight rates across 21 east-west trades, fell by 1.4 points from November to reach 110.8 in December, bringing to an end four consecutive months of gains in the index. “The waning effect of new hi-tech product launches on traffic demand was the primary contributor to declining rates from Asia into North America and Europe,” said Simon Heaney, research manager at Drewry. “Drewry expects pricing on routes out of Asia to decline further, though the impact will be softened by an uptick in demand levels in advance of Chinese New Year.”

Evidence of a tentative recovery in air freight demand comes in the form of a 2% year-on-year rise (the first such increase in 16 months) in November of worldwide semiconductor sales, a traditional bellwether for air cargo. Air cargo demand could also see a temporary boost at the expense of the ocean market. With ocean currently facing capacity issues such as the looming threat of strike action at US ports and carriers cancelling voyages, some shippers, particularly those wanting to move higher-value goods, might well be tempted to shift some cargo to the air. Demand growth for air cargo has lagged behind ocean, which Drewry believes is due to a combination of shippers having access to better IT systems, leaner inventory strategies and greater faith in liner service reliability, which has been improving steadily in the last year or so.

Recent issues in the ocean sector are testing that faith, although of course shippers that do switch to air freight will have to pay a considerable premium. East-west air freight rates and comparable ocean rates have almost mirrored their ups and downs since May 2012, with air prices showing a steeper upswing since October. However, the fall in air freight pricing and a corresponding rise in container shipping rates in December sent Drewry’s east-west air freight price multiplier down 1.3 points to 11.8. The multiplier measures the relationship between the cost of shipping by air relative to sea. “Air cargo is not a viable Plan B for all shippers,” said Heaney, “but for those moving expensive goods it remains a justifiable alternative, particularly at a time when the reliability of the ocean supply chain is threatened.”  Source: Lloyds List