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BIFA: £8m funding for customs training ‘very welcome’

The British International Freight Association (BIFA) has welcomed the recent news of an £8 million government funding scheme for customs intermediaries and traders.

Grants have been made available for all customs intermediaries and traders completing customs declarations. The aim of the grants is to support training and the upgrade of IT systems.

According to BIFA, the government has actively engaged with freight forwarders, independent customs brokers, and fast parcel operators in order to understand the needs and challenges industry bodies face in supporting current and future clients.

This scheme is intended to help support the extra demand for customs brokerage services associated with the UK’s departure from the EU, as well as issues associated with the replacement of the current system used to process customs entries.

Robert Keen, director general of BIFA said: “During our meetings with both HM Treasury and HMRC, BIFA highlighted the concerns of our members regarding the capability of the Customs brokerage sector to increase capacity, at a time when that sector already faces a shortage of staff of suitable quality.

“We emphasised that it could take up to a year to train staff to be fully conversant to prepare a range of basic Customs declarations, even if there was a sufficient number of trainers to train those staff, as well as relevant courses for them to attend. So, the news of this funding is very welcome.”

The grant includes HMRC providing an investment of £3 million to fund increasing training capacity.

BIFA also notes that the grants include £2 million to fund training for intermediaries and traders completing customs declarations (or intending to complete customs declarations in the future). The grant will provide funding for up to 50% of the cost of training staff.

There is also £3 million available in IT improvement funding, available to small and medium sized employers in the customs intermediaries sector currently completing customs declarations on behalf of importers and exporters. The grant will fund investment in packaged software that increases the automation and productivity of completing customs declarations.

BIFA is encouraging those who believe they might benefit to apply early. Applications will close on 5 April 2019, or earlier once all the funding is allocated.

More information and grant applications can be found at: GOV.UK

Davies Turner completes fresh apprentice intake

Freight forwarder and logistics company Davies Turner & Co Ltd has recruited another 11 youngsters for its trainee programme – now in its ninth successive year.

The new recruits will learn all aspects of Davies Turner’s business during the two-year apprenticeship, with the hope they will progress into management and supervisory roles as with previous intakes.

During the company’s national trainee scheme, participants spend time in all surface freight, supply chain management and logistics divisions, as well as gaining an overview at Davies Turner Air Cargo, plus central administration, IT and the accounts department.

Davies Turner Group Chairman, Philip Stephenson, said: “Apprenticeships for young people wishing to follow a career in freight forwarding are firmly back on the agenda in the UK following the recent introduction of the Apprentice Levy and Trailblazer Apprenticeships.

“However, having launched our own apprenticeship scheme nine years ago, you could say that we have been ahead of the curve on this important issue.

“We have also played a key role as a founder member of a forwarders employers’ group, facilitated by the British International Freight Association (BIFA). This has helped develop the new Freight Forwarding Apprenticeship standard, approved by the Institute for Apprenticeships earlier this year, of which UK freight companies can now take advantage.

“Davies Turner’s trainee scheme is clearly thriving and we have an excellent retention rate at the end of each course due to our mentoring system and determination to expose trainees to interesting and responsible career opportunities at the end of the apprenticeship.

“An apprenticeship with Davies Turner with hands-on experience of our wide-ranging and multimodal freight services, as well as our international logistics operations, offers an excellent foundation in learning all elements of the forwarding, storage and distribution industry.”

Forwarders say Government statements on Brexit ‘leave questions unanswered’

The British International Freight Association (BIFA) has labeled the Government’s much talked about Brexit advice for companies as ‘patronising’.

In a statement, BIFA Director General Robert Keen said the freight forwarding industry was already well aware of the issues at stake, and instead needed more clarity on specific arrangements that will be put in place should a ‘no deal’ scenario occur.

He said: “As most of the visible trade that takes place between the EU and the UK is managed by freight forwarders and logistics professionals on behalf of traders, some of the content of the information could be considered rather patronising as those freight forwarders are already aware of many of the issues of concern to businesses trading with the EU in the event of no deal, says Robert Keen, director general of the British International Freight Association (BIFA).

“What BIFA members actually need is clarity on the arrangements that will be in place in the event of a no deal scenario.

“How will we deal with a massive increase in the customs entries that will be required in the event of a no deal; where will we source the huge number of extra staff that may be required to process such a large increase in entries on a new and as yet unproven computer system; where will HMRC source the extra staff that will be needed to process entries and expedite their training which would normally take up to one year, how do we deal with large increase in costs that our customers are unlikely to be expecting and might be unwilling to accept?

“These are just a few of the additional questions that today’s Government statement, which suggests that in a ‘no deal’ scenario full-blown customs controls will apply to two-way trade between the EU and the UK immediately, do not answer.

“BIFA has already been vocal on our concerns about the capacity and readiness of UK customs systems and port infrastructure to cope with that outcome.”

Freight forwarders ‘still suffering from Felixstowe problems’

Main Image Attribution: John Fielding

The British International Freight Association (BIFA) has issued a strongly-worded statement to the owners of the port of Felixstowe, which had asserted that its recently introduced new terminal operating system (TOS) was ‘stable’.

Robert Keen, Director General of BIFA, said that his members still face significant problems at the port with shipping lines cancelling calls; or operating a cut-and-run policy, where the ship leaves before all containers that are booked are loaded, or discharged.

He added: “Those members are also experiencing knock-on effects at other UK ports where vessels are being diverted, causing additional cost and disruption.

“Previously BIFA has expressed its disappointment that the port authority, which owns Felixstowe has made it clear that it does not consider BIFA members to be direct customers of the port, and would not be willing to have a discussion about possible compensation for the damage caused and the increased costs that have been incurred by those members.

“We have made it clear to the port authority that BIFA believes that many of its members are the port’s customer for the terminal processes that it undertakes after a vessel has been discharged for imports and prior to loading for export traffic.

“In our opinion, as the port authority produces a publicly available tariff detailing services being offered and the associated charges; and then either invoices the freight forwarder directly for these charges; or grants credit facilities, all the elements of a contract between the port authority and our members are thus in place.

“The port authority does not accept this line of argument and we remain very disappointed that it is not even prepared to discuss any kind of compensation for such a complete failure in customer service.”

Image: John Fielding

Brexit White Paper receives mixed response from supply chain sector

The White Paper outlining the UK Government’s proposed future relationship between the UK and European Union after Brexit has received a mixed, but mostly positive, response from leading supply chain industry figures.

The proposals include a facilitated customs arrangement, removing the need for customs checks between the EU and UK – a measure that, whether successful or not, has far reaching implications for supply chains across countless markets.

James Hookham, Deputy Chief Executive of the Freight Transport Association (FTA), said the solutions outlined offer encouragement for those tasked with keeping the nation’s complex supply chain moving freely, but will require a similar level of imagination and optimism from the UK’s European trading partners.

He added: “[The] White Paper includes positive proposals for many areas which have caused concern for the logistics industry, and should give businesses, which have been worried about a lack of clarity over future trading arrangements, some level of reassurance. It is now Europe’s turn to step up and deliver a similarly supportive, encouraging plan which will minimise the barriers to continued frictionless trading arrangements as the UK leaves the EU.”

Robert Keen, Director General of the British International Freight Association (BIFA) expressed mixed feelings about its contents. He said: “The White Paper addresses some of the issues that BIFA has highlighted over the past two years, including retaining something as close to the Single Market and Customs Union as is possible, with positive ideas on future Customs matters and international trading arrangements.

“But we have to remember that nothing in the White Paper is cast in stone. The proposals on Customs, where the UK is proposing to apply EU tariffs to EU goods passing through the UK, while having the freedom to set different tariffs on goods entering the UK, look complex and untested, something that has already seen negative comment from the EU.

“Other than a facilitated customs arrangement, I suspect that there will be other areas where there will be differences of opinion between the UK and EU.

“Notwithstanding the above, it is the most comprehensive and cogent proposal put forward by the UK Government to date and is a useful basis for negotiation with the EU.

“However, we need to be realistic. It still has to get through parliament, even before the negotiations in Brussels.”

The UK Chamber of Shipping, meanwhile, has given the Prime Minister’s White Paper its seal of approval, and demanded the European Union now ‘gets serious’. Director of Policy David Balston said: “The Prime Minister is to be commended for this detailed paper which shows the government has listened to industry’s concerns.

“This vision for the UK’s future relationship with the EU is bold, comprehensive, ambitious and robust. It is good for both the UK and the EU economy; it guarantees both that the referendum result will be delivered, as well as the free flow of goods over national borders.

“Just as importantly, it will put the UK at the forefront of global customs arrangements, making UK customs processes streamlined not just for European trade, but for trade with countries around the world – allowing the UK to further develop its status as a global trading nation.

“It is time now for the EU to get serious and stop being prisoner to its own dogma. The UK is being constructive, collaborative and realistic. If the EU dismisses these proposals, as it has previous iterations, or tries to push the UK even further, then the risk of a no-deal Brexit will rise dramatically. If that comes to pass it will be because of their own intransigence, and they should be under no illusions: a no-deal scenario would significantly damage the European economy as well as the UK’s.”

Susanne Oud joins BIFA Board of Directors

The British International Freight Association (BIFA) has announced that Susanne Oud has joined its Board of Directors, replacing Roy Baker who has stepped down after 13 years with the trade body.

Susanne is Operations Director EMEA – Verticals at BIFA member company, OIA Global, and is based at the company’s head office in London.

Born in Perth, Australia, she learned the trade through positions with an exporter, shipping line, freight forwarder, before establishing project forwarder and vessel agent, Westlink Shipping.

She emigrated from Australia to the UK in 1998 and joined Bellville Rodair, which she helped to build into an international company with 168 staff, and 21 offices on four continents, before it was acquired by OIA Global in 2013.

BIFA Director General, Robert Keen, said: “We welcome Susanne’s election to the BIFA Board. She has had an excellent record of achievement since she joined the industry and brings significant expertise in a number of areas to our Board.”

Freight forwarders told: ‘Don’t expect compensation for Felixstowe disruption’

Main Image Attribution: John Fielding

Freight forwarders that suffered operational damage and incurred additional costs as a result of the disruption to operations at the UK port of Felixstowe have been told by BIFA to not expect compensation.

The disruption occurred following the introduction of a new operating system in June, but it seems the port’s owners are only considering compensation for shipping lines caught up in the saga.

Robert Keen, Director General of the British International Freight Association (BIFA), said: “Having had a meeting with the port’s senior management, it is clear that the only companies that might receive any compensation are shipping lines.

“The port authority has made it clear to us that it does not consider BIFA members to be direct customers of the port, and would not be willing to have a discussion about possible compensation for the damage caused and the increased costs that have been incurred by those members.

“It is astonishing that a port authority, which owns the UK’s busiest container port and has been happy to market it as the ‘Port of Britain’, implemented a new and vitally important system with apparently no fall-back position if it went wrong.

“And it is very disappointing that it is not even prepared to discuss any kind of compensation for such a failure in customer service.”

BIFA reasserts call for an end to shipping line surcharges

The British International Freight Association (BIFA) is repeating the calls it has made previously for an end to surcharges imposed by shipping lines.

The latest call follows recent announcements by the world’s leading container shipping companies almost in unison that they would be levying “emergency” bunker surcharges in response to rising fuel costs.

Robert Keen, BIFA Director General, said: “Forwarders do not like shipping line surcharges of whatever nature and we have been challenging their legitimacy on behalf of our members – and their customers – for many years.”

“In the past, we have seen equipment imbalance surcharges, peak season surcharges and currency surcharges, in addition to fuel surcharges.

“The number of surcharges and fees continues to grow – often with no real explanation or justification. For instance, what does an extra ‘administration fee’ or ‘container sealing fee’ cover that is not in the standard service offered?”

BIFA explains that shippers can also be asked to pay surcharges when there is port congestion caused by labour unrest or bad weather, or haulage surcharges when there is a shortage of HGV drivers.

Forwarders do all they can to minimise the effects of the surcharges but in the end at least some of the costs need to be passed on to the customers “and there is sometimes an unfair perception that our members are to blame,” Keen added, before concluding: “If a shipper enters a contract to buy goods they should know exactly what they are paying and that price should not change. If they use Incoterms they can buy ex works or FOB and control the supply chain. If they let their supplier arrange shipping, they have no control over the charges applied. But in either case, additional surcharges imposed by shipping lines should not be allowed.”

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