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The global voice of freight logistics

ANNUAL REPORT

2018/2019

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CONTENTS

ANNUAL REPORT ......................................................................................................... 1

STRUCTURE .................................................................................................................. 3

PRESIDENT’S REPORT ................................................................................................... 4

DIRECTOR GENERAL’S REPORT ..................................................................................... 6

AIRFREIGHT INSTITUTE (AFI) ........................................................................................ 9

CUSTOMS AFFAIRS INSTITUTE (CAI) ........................................................................... 12

MULTIMODAL TRANSPORT INSTITUTE (MTI) ............................................................. 13

ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA) ..................................................... 17

ADVISORY BODY INFORMATION TECHNOLOGY (ABIT) ............................................... 19

ADVISORY BODY LEGAL MATTERS (ABLM) ............................................................... 201

ADVISORY BODY SAFETY AND SECURITY (ABSS) ......................................................... 23

ADVISORY BODY OF VOCATIONAL TRAINING (ABVT) ................................................. 26

FIATA FOUNDATION - VOCATIONAL TRAINING (FFVT) ............................................... 32

FIATA LOGISTICS ACADEMY (FLA) .............................................................................. 33

WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL) ............................................ 34

FIATA WORLD CONGRESS COMMITTEE ..................................................................... 35

REGION AFRICA MIDDLE EAST (RAME) ....................................................................... 36

REGION EUROPE (REU) .............................................................................................. 38

REGION AMERICAS NORTH AND SOUTH (RAMNS) ..................................................... 43

REGION ASIA PACIFIC (RAP) ....................................................................................... 44

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STRUCTURE

Presidency President of FIATA Babar Badat Pakistan Immediate Past President Huxiang Zhao China Secretary General Robert A. Voltmann United States Treasurer Francisco S. Parisi Italy Senior Vice Presidents Turgut Erkeskin Turkey Basil Pietersen South Africa Ivan Petrov Bulgaria

Extended Board Vice Presidents Krishnan Chelliah Malaysia Ole A. Hagen Norway Neil Taylor Montgomery Chile Jens Roemer Belgium Marc Bibeau Canada Byung Jin Kim Korea, Republic of David Nutakor Ghana Ahmed Mostafa Hamed Egypt Antonella Straulino Italy Oleg Platonov Ukraine Nadia Abdul Aziz United Arab Emirates Adelaide Yang Chinese Taipei Chairman AFI Keshav R. Tanna India Chairman CAI Steve Parker United Kingdom Chairman MTI Robert Keen United Kingdom Chairman ABLM Richard D. Gluck United States Chairman ABVT Thomas Sim Singapore Chairman ABSS David Fielder Denmark Chairman ABIA Paul Golland Australia Chairwoman ABIT Anne Sandretto France Chairman FLA Issa Baluch United Arab Emirates Chairman WG SL Heiner Rogge Germany Chairman FWC Stanley Lim Singapore Chairman RAME Basil Pietersen (Interim) Tanzania Chairman RAMNS Jorge Heinermann Uruguay Chairman RAP Chris Kanter Indonesia Chairman REU Turgut Erkeskin Turkey

Secretariat Director-General Hans Günther Kersten/acting Director-General Stephen Morris Manager AFI, CAI, RAP Daniel Bloch Manager FLA, , RAMNS Verena Schaer Manager MTI, REU Rene Zimmerman/ Joana Nunes Manager ABLM, ABVT Angela Song Manager ABIA, ABIT, WGSL, ABSS, RAME, Bassil Eid Manager Congress Elena Primitzhofer Head of Administration Barbara Wieser Administration Staff Araseli Torres, Gwenda Boschetti, Dominic Betz, Maria Vittoria Spallarossa

FIATA Foundation Jean-Claude Delen, President Barbara Wieser, Secretary

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PRESIDENT’S REPORT

Dear friends and colleagues I am happy that I am writing to you in the second year of my Presidency. It only seems like yesterday that I was elected to that role in Kuala Lumpur in 2017. My thoughts in relation to the past year for this annual report will be tabled at the Congress in Cape Town in 2019 at which time there will be a change in the seat of the FIATA President. Let me say at the outset that it has been an honour and a privilege for me to have led FIATA and having the opportunity to continue its work and tradition of this noble organization. Since the 2018 FIATA World Congress, FIATA has been engaged in a variety of initiatives. Three Best Practice papers have been released on

• Demurrage and detention

• Prevention of cybercrime

• Quality of containers respectively These papers aim to assist our members, the National Associations, as well as the international logistic service providers and freight forwarders, in dealing with challenges in the industry. I am glad to see that the papers have received positive feedback from the industry. I will continue to give my full support to various FIATA bodies in continuing their work in this direction. The negotiable FIATA Multimodal Transport Bill of Lading (FMTBL) is a critical transport document designed by FIATA to be used by forwarders in both multimodal transport and single mode transport. According to a survey FIATA conducted in 2019, the amount of FMTBL used every year is around 90,000 to 100,000. Apart from continuing the work on digitalization of FMTBL, FIATA on various occasions promotes the use of the FMTBL together with other non-negotiable transport documents in Letters of Credit transactions. A recent event includes the 52nd Session of UNCITRAL. The first digital courses of FIATA “Introduction to Global Logistics Management Theory and Practice”, “Maritime Transport” as well as the digital Train-the-Trainer Course for the FIATA Foundation Vocational Training were launched in the Headquarters Session 2019. In an environment of increasing globalization and increasing levels of customer expectation, FIATA believes that it is critical to provide the industry with training foundations that increase its competitiveness, incubate innovation and encourage the interest of youth to work in the industry.

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The 2019 FIATA World Congress will welcome the four Regional Winners for the “Young International Freight Forwarder of the Year (YIFFY) Award 2019” to various sessions and announce the Global Winner. I am encouraged to see these excellent candidates presenting dissertations that cover a wide range of logistic subjects, which demonstrate the challenges that forwarders face every day and the customized solutions they are able to offer. I look forward to meeting these outstanding young people in Cape Town and welcome more young professionals to participate in this competition. In the past year, the Presidency members have travelled to various FIATA events and events by other international organisations to promote our federation. I myself took part in the Field Meeting of Region Asia-Pacific (RAP) and Region Africa Middle East (RAME) to meet the regional practitioners as well as the local policymakers. I was delighted to highlight to the policy makers some of the pressing issues being faced by the industry. The Presidency also met the leadership of the ICC, CLECAT and TLF during the Presidency Meeting in Paris to discuss matters of mutual interest. I wish to thank my colleagues in the Presidency for their support, advice and involvement. The work of the Presidency is for all members as well as the Extended Board (EB) members over and above their normal “day job”. The members of these bodies contribute significant personal time for the benefit of FIATA and its Members. Their contributions cannot be understated as without this level of honorary work, FIATA policy creation with governmental and non-governmental international, regional and national organisations could not be achieved. I thank them for their continued involvement and support. I would also like to thank the acting Director-General Stephen Morris for his support to FIATA in 2019 when the previous Director-General (DG) Hans Günther Kersten went on long-term sick leave and that role needed to be filled in the interim. His work with the Presidency, EB and third parties has been complimentary. Stephen also handled the work in relation to securing for FIATA its future DG and his support to the organisation as a whole and the Secretariat in particular has enabled FIATA to meet its deliverables to Members and other parties. Under these difficult conditions some of the Secretariat staff also responded well. To the FIATA staff, thank you for your work. There are many new factors & global trends that will affect our industry and I renew FIATA’s commitment to keep our members informed about these issues as best as possible. At the same time, I will request our members to keep in closer touch with FIATA in an attempt for wider logistics industry remain connected via this platform. The future for FIATA is going to be challenging, with a new President, a new DG, changes in human resources within the

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Secretariat and substantial changes arising from the decisions which will be taken at the GM and in general the changing face of business and advocacy as a result of the changes in bilateral and multilateral trade arrangements. The future is not assured but what can be assured is that FIATA will continue to work for the benefit of its National Association members and the Individual Members, in supporting international trade logistics and supply chain management. My best wishes to you all Babar Badat President

DIRECTOR GENERAL’S REPORT

The year in review for FIATA was another of consolidation for the Association after the retirement of Marco Sorgetti with the appointed Director-General Hans Günther Kersten leading the Association through its Headquarters Meeting in Zurich in March 2018, and subsequently the FIATA World Congress hosted by the Federation of Freight Forwarders’ Associations in India in Delhi 26/29 September 2018. The FIATA President Babar Badat joined the General Meeting (GM) remotely by teleconference and supervised the GM Agenda.

This GM was of particular importance to the future of FIATA for a variety of aspects. One being the merger of the Advisory Body Vocational Training and FIATA Logistics Academy. Although the rationale for the merger was elegantly addressed by the Presidency Rapporteur for ABVT and FLA Mr Parisi, the motion was defeated by one vote. From the perspective of many delegates, there was lack of understanding as to the background for the suggested change to an Institute for the merged body and as to how the issues of ABVT and FLA would be appropriately resourced to deliver on training and educational skills development. From a Secretariat perspective the opportunity to vertically integrate finances and human resources to a specific task is always desirable with the limited resources available to FIATA either from the delegates to respective FIATA Bodies or in the Secretariat itself.

…From a Secretariat perspective

the opportunity to vertically

integrate finances and human

resource to a specific task is

always desirable with the limited

resources available to FIATA

either as to delegates to

respective FIATA Bodies or in

the Secretariat itself.

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There were other key issues which were approved by the GM in particular:

• A change to the Statutes at Article 5.5.1 as it related to auditors and the opportunity for FIATA to address contemporary business and regulatory requirements by the appointment of

• External auditors, and

• Change to the Rules of Procedures for the General Meeting (Rules) as they relate to electronic voting and the electronic lodgement of proxies. This change is reflected in revised FIATA Document 10/110.

Electronic voting will form part of the voting process for the GM in Cape Town on 5, October 2019 and it will be referenced to the delegates in the Call of Meeting for the GM which will include the FIATA Statutes and the Rules. These changes will require National Association Member delegates to understand the changes in notification as to delegates and proxy registration within the FIATA electronic voting system. During 2018, the Secretariat maintained its service delivery to Members and support to all the FIATA Bodies. The work of the Presidency, under President Babar Badat, has seen an expansion of interfaces with emerging economies and new National Association member opportunities. The Secretariat continued its level of external representation through a variety of key governmental and non-governmental regional and international bodies. As to Individual Members expansion, this remains work in progress and it is proposed to significantly refocus FIATA energy on this sector in 2019.

On another key issue, considerable time and resources have been absorbed by the IATA FIATA Air Cargo Program, and while it was hoped that this would be delivered in 2018, it still remains work in progress and its implications for FIATA will be reported on by the Treasurer and the Chair of the Airfreight Institute. The work of this Institute however exemplifies the work that is done by the Chairs of all bodies within FIATA, and for that commitment and support to FIATA per se and to the Secretariat in particular…thank you.

As to the FIATA of the future, there is always the burning question as to how the organisation encourages younger delegates to take on the roles of those who will eventually retire from a variety of positions. This challenge is not unique to FIATA, and it is also an issue for most National Association Members. The challenge for FIATA is for those National Association Members to provide the future support to FIATA by allowing and encouraging, in their own national associations, the interaction of younger generations, and for that

The work of this Institute

however exemplifies the work

that is done by the Chairs of all

bodies within FIATA, and for

that commitment and support to

FIATA per se and to the

Secretariat in particular … thank

you.

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younger generations to be able to participate in the affairs of that association and consequently to work through to a FIATA delegate or delegate support. If there is no focus on this important resource and budgetary commitment by each National Association Member for this younger representation, then FIATA will, in the next 5 to 10 years, be severely constrained as to its ability to meet the business or regulatory advocacy levels which form a core part of its raison d’être. It is therefore appropriate and necessary for initiatives such as the ABVT/FLA merger to again be critically examined for it is this type of arrangement which will support the next generation. In the closing months of 2018, FIATA was impacted significantly when the Director-General Hans Günther Kersten went on sick leave. While it was anticipated that this would be short term, it unfortunately moved to a longer term and as such, in order to support FIATA in meeting Member’s requirements, work on matters relating to the Presidency, the FIATA HQ and Congress in 2019, and to provide guidance to the Secretariat, an acting Director-General was appointed by the Presidency in late December 2018. To that end, I was proud to be n asked to fulfil that role pro tem and during 2019 work with the Presidency on a variety of matters with a focus on seeking a new Director-General. My thanks to the staff in the FIATA Secretariat for their support and perseverance during this disruptive time. Since commencing in January 2019, we have worked to ensure Members services are continued and I think that the Headquarters meeting in March 2019 showed the capability of the Secretariat in continuing to deliver on Member requirements. Steps have been taken to ensure staff position descriptions are closely aligned to deliverables and performance indicators put in place not just for the staff but for the Secretariat as a whole. We are addressing critical human resource deficiencies and seeking ways to make us more cost efficient, cost-effective and better able to deliver to Members. This has been augmented with certain software solutions and while these will provide long-term efficiencies and capabilities it is the lead in, and integration, which takes time. The realignment and refocus of the Secretariat has commenced however that task will not be finished in my tenure but more so in that of the next Director General. The foundations are being set to enable FIATA to maintain its relevancy not only to its members but to all of those other governmental and non-governmental organisations with which it interfaces. My thanks also to the Presidency, Extended Board and National Association members for their support, direction and guidance. There is much to be done in 2019 to set the foundation of the future. However, with patience and persistence, I am sure the tasks that we have set for ourselves in FIATA will be achieved. Stephen Morris Acting Director General

…FIATA will, in the next 5 to

10 years, be severely

constrained as to its ability to

meet the business or

regulatory advocacy levels.

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AIRFREIGHT INSTITUTE

“Change is slow and gradual. It requires hard work, a bit of luck, a fair amount of self-sacrifice, and a lot of patience.” - Robert Greene Dear Members, I would like to thank all those who assisted and contributed throughout the past year with their tireless support by spending their valuable time voluntarily time for our industry’s progress. Just to mention a few of key names besides the Airfreight Institute (AFI) delegates and the FIATA IFGB members which are mentioned further below. Want to thank the ABLM Chair Mr. Richard Gluck and the AFI Deputy Chair, Mr. Mike Jones. Not to forget my appreciation for the work done by the FIATA staff, the IFACP Governance Manager, Ms. Joana Nunes and the AFI Manager, Mr. Daniel Bloch. We were happy that FIATA was celebrating not only its 100th AFI Meeting but also its 50th birthday. There was progress made and the same had been reported periodically from work done by the IATA FIATA Consultative Council. The same was reported last March at the 100th AFI Meeting. In March, we also importantly highlighted some strong headwinds that were being faced by the IFACP/IFGB. IATA FIATA Air Cargo Program – IATA FIATA Governance Board The FIATA constituents of the IATA FIATA Governance Board (IFGB) overseeing the IATA FIATA Air Cargo Program (IFACP) spent tremendous time and effort to overcome some discrepancies as to the IFACP Forwarder agreement during a number of face-to-face meetings and by written communications made. The current IFGB Forwarders voting constituents are: FIATA Region, FIATA IFGB Voting Member. Company and Association RAMS, Mr. Rodolfo Sagel EAFF S.A., AAACI – Past AFI Chair REU, Mr. Markus Mücke Panalpina Management AG/Spedlogswiss RAME, Mr. Paul Cheetham Freitan Sa (PTY) LTD/SAAFF RAP, Mr. Brian Wu Bel International Logistics Limited/ HAFFA RAMS, Mr. William Gottlieb ITN Logistics Services/CIFFA Past FIATA President REU, Mr. Thomas Huber DHL Global Forwarding, In my capacity as the AFI Chair, I participated at the IFGB meetings as one of the two FIATA Non-Voting Members. The second FIATA non-voting member was occupied by Mr. Jean-Claude Delen, FIATA Past President.

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We are committed to building a new programme that reflects the amended IFACP Forwarder agreement, current day to day practices, and to cover every single circumstance that occurs today. It was agreed with the airlines that there would be no disruption in current practices of doing business. The program needs to satisfy the Commercial Air Cargo Business and the parties involved to a contemporary standard which would replace the old fashioned Cargo Agency Program. Such agreement would witness all sizes of forwarders to sign up to the new programme and exceed the threshold of numbers for IATA agents and CASS revenue that was unilaterally introduced by IATA after the Canada pilot had been launched as they were key multinationals missing. All continuation of a launch and a setting of new timelines of the IFACP can be made only once the constituents of the IATA FIATA Governance Board, consisting of both Airlines and Forwarder representatives, agree to a solution for paving the way forward. However, at the time of writing this annual report the status is:

• No solution was reached since the IFGB met at the 7th IFGB Meeting of last March 2019, post the 100th AFI Meeting.

• Negotiations still proceed in order to include the Shipper’s agent – Direct Air Waybill in the new program (something which the forwarders have been asking for from the beginning).

• The proposed version of the IFACP Forwarders Agreement achieved at the last IFGB meeting, in March, still raises legal concerns regarding its consequences and applicability.

• FIATA sent the proposed version to the forwarder constituencies worldwide including Association members and insurance companies for comments in an effort to address the issues.

• Based on the inputs received and the previous IFGB negotiations, FIATA submitted a revised version of the Agreement to the IFGB on April 30th.

• IATA and the carriers responded and ultimately recommended a meeting within the next two months, between IATA and FIATA in order to acknowledge irreconcilable positions of the Forwarder and Carrier constituencies, and to look towards a mutual withdrawal and disbandment of the program.

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FIATA doesn’t acknowledge the irreconcilable positions mentioned by IATA and the carriers and suggested an IFGB meeting to decide a way forward and/or the fate of the program. We are hopeful to find a solution that will enable us to continue the roll-out of the IFACP, as agreed by the IFGB, the airlines and forwarders and supported by AFI and IATA whereby FIATA’s AFI is representing all Air Cargo Forwarders and Logistics Providers from SMEs and major global players. IATA FIATA Consultative Council (IFCC) and European Air Cargo Program (EACP) At the 100th AFI Meeting the Deputy Chair Mr. Mike Jones provided an update on the deliberations made at the IATA FIATA Consultative Council (IFCC) held in Madrid. Members were notified of some positive achievements, which were promising significant improvements to conditions or in other words a relief of some cumbersome requirements, which will benefit the airfreight forwarding industry globally or regionally. However, some other topics were continuing to be painful and AFI continues marching on to overcome obstacles and to achieve a change, a withdrawal or improvement related to certain rules or measurements that were introduced by IATA and/or their members. We strongly opposed several proposals affecting the Global Forwarding Community in general such as the implementation of a late payment fee and new Rules to CASS Associates. The new rules for CASS Associates burdens cumbersome financial obligations imposed unilaterally by IATA without any prior consultation of airlines business partners. Outlook This year in Cape Town, South Africa, AFI will hold its 101st Meeting. I am happy to pre-announce that the upcoming AFI meeting will feature a real expert. Deloitte’s - Head of the Center for the Long View, Dr. F. Klein will join us and speak on: The Future of Air Cargo. How to perceive, manage, and monitor volatility and uncertainty around the Airfreight sector. We shall also be informing you about the progress of the IFACP related to IATA, the IFCC and other AFI related issues i.e. ICAO, GACAG. I trust you will continue to provide your support and input at and between AFI meetings for the continuity of the improvement and facilitation of the Airfreight Industry. Keshav R. Tanna Chairperson, Airfreight Institute

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CUSTOMS AFFAIRS INSTITUTE Dear Members, As it comes to the end of June it is time for this year’s annual report from the Customs Affairs Institute (CAI). It has been another busy year with topics like E Commerce, the Revised Kyoto Convention and even BREXIT to keep us occupied! I continue to thank Daniel for his support and welcome Ekaterina Stoyanova to our team. She has replaced Ferdinand as our “link” to the World Customs Organisation Membership I am pleased to say the group membership is steadily increasing. We now have about a good number from all FIATA Regions. My appreciation to those who have offered to give up their time to help and I look forward to working with you in the future. There is always room for more and if you have an interest in Customs and would like to join our exciting Customs family then let Daniel (bloch@fiata.com) or me know. WCO – World Customs Organisation We continue to work within the World Customs Organisation, where Ekaterina attends many meetings/workshops and seminars on behalf of FIATA. I can confirm that our standing and valued input is well respected, and our comments and advice is always listened to and often acted upon. In order to support this activity, I have been attending the PSCG (Private Sector Consultative Group). This is a key group within the WCO, where FIATA retains membership. Outlook The workload for CAI continues to remain high with many important topics being discussed at the WCO and with Customs authorities around the world. My plan is that CAI will meet that challenge and offer quality and compliant feedback and input to all topics in 2019. Steve Parker Chairman, Customs Affairs Institute

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MULTIMODAL TRANSPORT INSTITUTE The Multimodal Transport Institute (MTI) consists of three individual working groups for Road, Rail and Maritime transport. The three individual Chairs come together at the HQ session and at the World Congress to update FIATA Members on the main topics of activity. A brief summary of the past year’s work follows. Rail On 11 and 12 July 2018, the 2nd workshop of the enlarged Working Group FIATA / OSJD on Rail Transport was held in Istanbul, Turkey. Delegates of freight forwarders, railway companies and international organizations in rail transport, gathered together to discuss new possibilities on Combined Transport on the Eurasian rail link. This is the second event co-organized by FIATA and OSJD after signing cooperation memorandum in 2016. Another great step FIATA MTI Working Group Rail made under the leadership of Dr. Ivan Petrov, Senior Vice President of FIATA. The meeting was hosted by the UTIKAD the Turkish Association member of FIATA and attracted 55 participants from 18 countries. Under the theme “New possibilities of Europe – Asia – Europe multimodal transportation”, delegates discussed the critical aspects for development of Asia-Europe transport corridors, namely political support, unification of trade laws and trade facilitation, challenges and best practices. FIATA WG Rail is committed to work with partners like OSJD, UIC and other international organizations to help solve the existing bottlenecks and promote the development of rail freight worldwide. The UNECE has published a document that concerns intermodal transport, with a particular focus on the role of railways in intermodality and the importance of transport documents computerisation for intermodal transport. Ms. Angela Song has attended the meeting of UNECE Group of Experts towards Unified Railway Law. The Group of Experts towards Unified Railway Law (hereinafter “the Group”) works to unify railway law in the Pan-European region, especially to bridge the differences between the two legal regimes of COTIF-SMGS. In all rail transport meetings where FIATA delegates provided a presentation or speech, they highlighted and promoted that the most appropriated and convenient documents for rail transport (especially on the Eurasian link). These are the FIATA Multimodal Transport Bill of Lading (FBL) or the FIATA Multimodal Transport Waybill. The whole door / door transport from China to Europe and vice versa could be handled under one single transport document, either by issuing the FBL or the FWB document. The FIATA FBL and FWB facilitates the transport on the Trans Siberia route among other routes. FIATA was glad to join the CIT Multimodality Committee meeting on 16 November 2018, to learn about the initiatives undertaken to compare and connect internal railway laws with

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laws of other means of transportation. FIATA was represented by Mrs Angela Song and Mr René Zimmermann. The 11th OSJD International Freight Conference was held from 2 – 3 October 2018, in the city of Tehran (Iran). FIATA was represented by Mr Farid Saffarzadeh at this conference. FIATA has attended the meeting of the UNECE 61st Session of the Working Party on Intermodal Transport and Logistics from 19 to 21 November 2018. A Workshop took place under the topic- Intermodal Transport contributes to the realization of the goals of the 2030 Agenda for Sustainable Development. Since intermodality leads to economic, environmental and social sustainability. It also requests for border crossing facilitation, further increase of railways competitiveness and enhanced cooperation among the different stakeholders. With transport sustainability as an objective, the principle should be that freight is transported as far as possible with rail/inland waterways/maritime and collected or distributed by road, with road legs that are as short as possible. However, intermodal transport faces different operational challenges depending on the regions that we are referring to. The Working Party by organizing this workshop aims to identify those regional operational challenges, if possible, prioritize them and address them at its future sessions. Representatives from the different regions of ECE either from the member States and International Organizations or from the private sector had the opportunity to meet, exchange ideas and experience, discuss and list those operational challenges and possibly agree on common actions for the future. The INTERNATIONAL RAIL FREIGHT BUSINESS ASSOCIATION (IBS) Congress took place on 11 and 12 October 2018 in Edinburgh, Scotland. Mr Ivan Petrov provided a presentation: “Cooperation between FIATA and other railway-related organizations” among other topics. The CLECAT rail logistics Institute Meeting took place on 14 November 2018 in Brussels and was attend by Ivan Petrov and Hans-Günther Kersten. Sea The past year has seen a wide range of work undertaken by the Working Group Sea driven by the Chair, Jens Roemer. For the past year the WG Sea has been monitoring the following situations:

• FMC investigation into demurrage and detention charges by container shipping lines – Fact Finding 28; India: Amended service tax rules; Container shipping Alliances – vessel size and the higher peaks and demurrage and detention due to congestions and CTU Code.

• One important topic that has been discussed within the WG Sea during 2018 was the digitized FIATA Bill of Lading (e-FIATA FBL).

In the Q2 2018, the Working Group suggested FIATA should create a global platform for Forwarders acting as carriers (to exchange data of the supply chain: among others creating

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the end to end visibility), has now been merged with discussions involving the e-FIATA FBL of the FIATA Advisory Board Information Technology (ABIT). Whilst members may see the need to have a digital B/L at one stage, they may not see the immediate need to rush into it now. Other projects may have priorities and the papers are full of articles on disruptive developments in terms of technology and high tech start-up companies. The Working Group provided the following comments / recommendations:

• The FIATA FBL in its current form and distribution is insignificant and should be reviewed to increase its circulation.

• In addition to the (negotiable) e-FIATA FBL also a non-negotiable or FIATA Waybill should be considered in order to increase the critical mass. This should allow much easier trading conditions and functionalities due to the non-negotiable nature, without compromising the e-FIATA FBL in its negotiable form.

• The project must be seen in the wider context of achieving a critical mass, we must take along all companies that issue Forwarders B/L’s. A good start into this direction might be the development of an industry standard

• FIATA can add a lot more value and making them more usable by combining the e-FIATA project together with the supply chain visibility project. We are of the opinion that the immediate added value is much higher.

• Whatever platform FIATA uses it must easily be integrated with the major Transport Management Systems available.

The WG Sea is highly committed to support FIATA and ABIT with its vision in terms of digitalization. The WG Sea is also committed to promote the FIATA FBL in its current form as well as an e-FIATA FBL. FIATA must strive to have its FBL recognised in digital form and to take the lead in the trade. While working on many other issues mentioned above the WG Sea launched the “Best Practices on Demurrage and Detention”. The document was officially published during the FIATA World Congress in Delhi. Similar documents covering “Best Practices” on the relationship between Forwarder and Shipping Lines will follow. In the last quarter of the year the Working Group was informed by Mr. Buhmann about the new joint project initiated by IBM and MAERSK. They have launched TradeLens. This is an open and neutral supply chain platform poised to transform the industry. He explained that TradeLens is a different Company than MAERSK.

• TradeLens is built for the industry and offers benefits to trade participants from across the supply chain ecosystem

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• Responding to industry feedback, IBM and Maersk have revised the approach and are proceeding under a collaboration model, which offers greater flexibility and responsiveness to industry feedback

• An Industry Advisory Board will help to shape the platform and drive standards

• Maersk Line and Hamburg-Sud are participants under the same terms as other network members

Road The Road Working Group Chairman, Tomas Suhanyi, has had a full agenda dealing with the posting of workers within the European Union and the related impact on truck drivers; however, the usual topics of TIR, e-CMR and secure parking have occupied a lot of debate within the WG. The EU rapporteur proposed to introduce a derogation to the general rule of not taking weekly rests in the cabin, provided it is taken in Dedicated Certified Parking Areas. The Dedicated Parking Certificates should set forth the requirements for those Dedicated Parking Places, of various types, enabling drivers to take their rest in the vehicle. These requirements should ensure that all of the facilities necessary for good resting conditions are present, that is to say sanitary, culinary and others, and including the availability of a prepayment system. The rapporteur wants to ensure that the daily allowance of the drivers is used as intended for parking and daily subsistence. The rapporteur considers that various types of organizations, local governments or others, should be encouraged to become involved in building such parking places, to be then certified by the competent authority in the Member State. It could work either as a commercial model, or a social enterprise, provided the requirements are met. Hauliers are calling for more secure parking areas across the EMEA region after a report from the Transported Asset Protection Association (TAPA) found that 85.1% of all cargo theft reported to it in November occurred at unsecured locations. The report coincides with claims in the UK that London’s police may not pursue “lower-level, higher volume” crimes, including vandalism, vehicle crime and fuel theft. Citing news reports, the Road Haulage Association (RHA) said plans from the Metropolitan Police Force not to investigate certain crimes was a “worrying development”. The RHA claimed a lack of government action on providing secure lorry parks would only compound the issue. The Mobility Package and Brexit have been very much debated in the WG Road meeting and is fully detailed in the Region Europe Report. One other major issue debated by the WG Road was the pilot transport truck from China to Europe. The first TIR truck transport from China to Europe started its 7,000 km journey at the Khorgos border, entering Kazakhstan and travelling through Russia and Belarus to Poland in just 13 days – with a door-to-door cost and delivery time that is competitive with both air and rail. The truck left China on 13 November 2018, arriving securely at its destination in Poland without any disruption or customs issues on 26 November 2018. The system is secure and

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also highly competitive in terms of cost and time relative to other modes of transport on similar routes. It will boost trade between China and Europe, which will help China and the countries along the Belt & Road route to reap the economic and development rewards of international road transport. It is also a wakeup call to European hauliers – who can seize the opportunity to benefit from round trip operations. Robert Keen Chairman, Multimodal Transport Institute

ADVISORY BODY INTERNATIONAL AFFAIRS

The Advisory Body International Affairs (ABIA) celebrates its fifth year after being founded. In this short history, the body has worked to enhance FIATA’s visibility & presence with several relevant international and multilateral organizations advocating the importance of “Logistics & Connectivity” in achieving economic and sustainable growth on a global scale. This is my second year as ABIA Chairman taking on the body from our current FIATA President Mr. Babar Badat. I wish to thank Mr. Badat, the presidency and the extended board for entrusting me with this important and challenging role. This past year the recurring theme of protectionism come up consistently throughout international trade and the logistics community. We covered these topics heavily in our two annual meetings both at the HQ and World Congress meetings. Engaging with international bodies such as UNCTAD, WTO and ITC meetings helped instilled confidence that recent tariffs imposed by the U.S would unlikely result in prolonged and sustained protectionists’ efforts, as the world had tasted the many benefits that international trade has to offer. The International Trade Centre was present at the meeting and confirmed they were ready to mediate diplomatic trade discussions with bilateral states in order to minimize any further threats of a trade war and believed that other international institutions were also playing their part. History has displayed that those countries that take individual action in relation to trade without utilizing the WTO or an international body framework of discussion had resulted in repeals of such legislation. This enhanced the role of trade bodies such UNCTAD, WTO and others that acts a mediating body to settle such trade disputes. The international community’s work on trade facilitation becomes ever more important in the wake of tariffs as an alternative tool to combat protectionist efforts.

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I and others in the FIATA family believe all countries would ultimately suffer from a trade war and it is upon private sector groups and public sector to work together to find common ground. A collaborative approach is always the best approach and including partner states and relevant stakeholders like private sector in discussions prior to action will result in better trading conditions and opportunities for local economic growth. ABIA also tackled social issues for the first time. Gender equality and diversity cannot be stressed enough as our industry collaborate with vast numbers of cultures and countries. We tackled this topic directly at our World Congress in India inviting the Chair of the Women in Logistics and Transport Group. Our body wants to urge governments and private sector to recognize the benefits of a diverse workforce not just one focusing on women development but also racial and religion diversity as it cultivates varying ideas and allows for more opportunities of growth into new markets. Remaining on ABIA’s social agenda, we also examined the benefits of refugees to a local economy growth and how the private sector can be a great stimulus for refugee integration. We witness many key migrants put forth immense efforts to integrate into societies that are foreign to them and contribute to economic development to boost prosperity for all. Unfortunately, political agendas play a role in this affair by restricting immigration and using this topic as a tactic to gain popularity and garner votes especially as elections near. These anti-immigration political agenda also spill over into trade. When migrants are no longer able to cross borders, there is also a tendency to reduce importation of goods with less demand for those goods. In Europe, we discussed the political crisis which was focused on the influx of immigration from Eastern European and Middle Eastern states. This has resulted in a string of re-nationalistic policies and the rise of political movements that are centered on anti-immigration. Regardless of the facts and statistics, immigration is something that voters can see in their everyday lives and therefore easily relatable than statistics such as immigration’s contribution in raising economic wealth for example. Our annual meetings this year will look at modern slavery as governments start to discuss policy outcomes to help deter such activity recognizing it is grave issue which has the potential to escalate. We will also look at the legal obligations upon our industry as more and more countries create Modern slavery laws that effect a lot of FIATA members. With the accumulation of these initiatives and topics, ABIA aims to continue to extend its reach into the international community and deepen its access into discussions. As an international organization, we have an obligation to connect at the international level if we are to influence meaningful change throughout the logistics industry.

“All countries would ultimately suffer

from a trade war and it was upon

private sector groups and public sector

to work together to find a common

ground.”

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Moving ahead we look forward to working more closely with our Association Member network to take into account their local challenges & needs and identify how ABIA can assist at the international level. We very much appreciate the support from FIATA’s membership, and we look forward to dealing with the upcoming challenges with their continued support. Yours Sincerely, Paul Golland Chairman, Advisory Body International Affairs (ABIA)

ADVISORY BODY INFORMATION TECHNOLOGY The topic of Information Technology (IT) has witnessed a revival within FIATA and the body has grown and reshaped itself to meet the demands of FIATA members. This year the body shifted its focus on practical projects starting with recent works and development of the electronic FIATA Bill of Lading (eFBL) and inviting various software vendors at our HQ Session and World Congress to discuss the future of IT development in the logistics sector. In the 4th quarter of 2018, FIATA collaborated with vendor essDOCS to conduct five pilots with five Association Members (France, Vietnam, Romania, Netherlands and South Africa) whereby we on boarded a freight forwarder member to execute an FBL shipment on the digital platform. The pilot revealed the key requirements needed to move forward in developing a full-fledge solution. The primary component of the pilot was that not all the freight forwarder’s stakeholders (agents, banks, carriers, etc.) would be on the digital system. Therefore, it was required to offer a solution for forwarders to print the FBL after producing it on the system and through a secure barcode and chip be able to scan and track the FBL along the supply chain allowing those stakeholders to ensure its authenticity and ownership. This system would also allow FIATA members to use an eFBL without having all stakeholders on the digital platform. We also expanded on our partnership with GS1 whereby we confirmed that their technology was available to provide GS1 standards like a Global

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Location Number uniquely identifying each user in the system and enhancing security within the FBL. Throughout the year we also explored the use of blockchain and how such technology could be practically applied into applications that would enhance efficiency for our industry. We connected with IATA on their One Record Project to examine this functionality further. The essence of the ONE Record is to move from a peer-to-peer messaging model to data sharing model relying on a Virtual Single Record through a blockchain. Data is shared through an Internet of Logistics using existing web standards such as and HTTP and JSON relying on standard Application Programming Interfaces (APIs) to allow for example an airline who wants to have access to the shipment record of a particular AWB. The Advisory Body Information Technology (ABIT) has also continued its work in regard to the Digital Transport Logistics Forum (DTLF). DTLF has commenced their second phase creating two working groups; Paperless Transport and Corridor Information System. The concept today focusses on a European Generic Digital Platform offering third parties services for transport and logistics including the customs aspects. This work is immensely meaningful as it will pave the way for future IT developments that can be sustainably applied by all vendors helping the industry adopt technology that is compatible with all systems. Looking ahead, we are excited for the New Year and especially the upcoming 2019 FIATA World Congress in Cape Town. We will be hosting speakers from the cargo drone industry to discuss the future of air transport in infrastructure light economies and IBM who will highlight how blockchain technology is being implemented through their TradeLens project in collaboration with Maersk. Focusing on concepts such as transparency, reduced fraud, security, visibility, traceability, the session will have a didactical approach while opening the minds of delegates about how FIATA can implement this technology to optimize business transactions and trading relationships of its members. I am sure that you will notice that in all that we do as an advisory body, our ultimate goal is to inform and provide our members with the necessary insights and knowledge on how to use technology to achieve their mission and advance their services to unsurpassed quality. What is not readily described in these pages is the passion that all ABIT constituents bring to their work every day. We all feel the deep responsibility we have to this remarkable advisory body and it is a joy to be able to work with such extraordinary people. It is their dedication and passion for our mission that makes the ABIT successful. Anne Sandretto Chair, Advisory Body Information Technology (ABIT)

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ADVISORY BODY LEGAL MATTERS

Dear members, It is my great pleasure to deliver the report of The Advisory Body Legal Matters (ABLM) for the year 2018 – 2019, which is indeed is my last report as ABLM Chairman. Best practices on prevention of cybercrime The risk of cybercrime to the international transport and logistics industry is increasing in conjunction with the growing application of information technology. The past years witnessed a series of reports on cyber-attacks to leading enterprises in the industry, causing severe delays in the supply chain industry and financial loss. Apart from real threats of cybercrimes, legislation in many jurisdictions such as the EU’s GDPR now expressly stipulates that enterprises must protect personal data and/or confidential information. ABLM, with the indispensable work of Co-opted Member Mr Michael Yarwood of TT Club, prepared a best practice paper for FIATA members, international logistics service providers and freight forwarders on prevention of cybercrime. The paper mainly illustrated the following aspects: definition of cybercrime; the real threat of cybercrime; motivation and objectives of cyber attackers; major risks of cybercrimes, such as financial loss, business disruption, reputation damage, loss of intellectual property; assessment and mitigation of risk exposure; best practices in prevention of cybercrimes. ABLM hopes that this paper will help members to enhance their resistance against cyber-attacks and better embrace the benefits of new technology. The paper is free for download on the FIATA website: https://fiata.com/media/documents-for-download.html Best practices on prevention of bribery ABLM invited Ms. Brenda Mundia of WCO’s Capacity Building Directorate to the ABLM Session in FIATA Headquarters Session 2018 to share the WCO’s experience on combatting corruption. Delegates in the session raised a series of challenging questions, based on problems that have arisen in many countries. At the request of those attending, ABLM will be providing a best practice guide against bribery and corruption for the use of FIATA members and is working to release this paper during the FIATA World Congress 2019 in Cape Town, South Africa. This guide will compile useful advice from the conventions and guidelines of international organizations such as the United Nations, OECD, ICC, WCO and Transparency International, while taking into consideration scenarios that are specific for logistic service providers and freight forwarders. It will outline a series of processes and measures to be taken when establishing a comprehensive anti-bribery policy, implementing such policy in daily operation and management, and dealing with bribery solicitations.

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As the paper points out, corruption and bribery are a systemic problem deeply rooted in a spectrum of factors such as cultural heritage, legislation, law enforcement and the level of economic development. Only through joint efforts among public and private sectors can the industry lessen the negative impact of corruption, create a level-playing field and lower transport cost for the entire supply chain. Review of 1996 FIATA Model Rules for Freight Forwarding Services The current version of the FIATA Model Rules for Freight Forwarding Services was formulated in 1996, to assist associations and forwarders in those countries that did not have general terms and conditions for freight forwarding services at that time. ABLM conducted a survey among Association Members in 2018 and concluded that the FIATA Model Rules 1996 needed to be updated to reflect new legislation and practices that have emerged in the last two decades. ABLM members have identified several clauses for updating, including the introduction of a new definition for documents “in writing” so it covers a wider scope of electronic documents. Some members suggested adding provisions on data security and VGM requirements, which ABLM deems more appropriate to be included in the explanatory note of the Model Rules at the current stage. The explanatory note will include introductions to the revised provisions as well as suggestions for making the best use of FIATA Model Rules by associations and forwarders. ABLM has also invited Association Members to share their Standard Trading Conditions so that they could be made available as a resource for reference by the industry on FIATA’s website. IATA-FIATA Air Cargo Program (IFACP) In the past year the ABLM chairman has continued to assist the Airfreight Institute in the launch of the new IATA-FIATA Air Cargo Program, especially in relation to revision of IFACP Forwarder’s Agreement. During several meetings of the IATA-FIATA Governance Board (IFGB), the forwarder representatives have emphasized the importance for this agreement to reflect current business practice in airfreight without disrupting the same. After consulting the forwarders’ constituency, the forwarder representatives submitted a revised version of the Forwarder’s Agreement for consideration by the airlines, to date no consensus has been reached with the airlines on a final version acceptable to both forwarders and airlines. Because the remaining issues are largely legal, ABLM will remain involved until the negotiations are completed. Digitization of FIATA Multimodal Transport Bill of Lading and Use as a Multimodal Document for Rail Transport.

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ABLM supported ABIT’s leadership on the project to digitize the negotiable FIATA Multimodal Bill of Lading (FBL) so that it can be used electronically. The ABLM Chairman and Manager have attended regularly the briefing calls of ABIT and contributed input from the legal perspective. ABLM is working to identify whether the terms on front side of FBL will require changes to reflect more appropriately its essence of being a multimodal transport document, and whether the terms and conditions on the backside require any changes so that the FBL would be valid in its electronic form. ABLM has worked with the Presidency to establish the FBL as the preferred negotiable multimodal document for international rail transport. FIATA has supported the initiative of China at the UN Conference on International Trade Law to study the coordination of the FBL with the use of rail consignment notes to facilitate trade financing without disrupting current business practices. My term as ABLM Chair will end at the World Congress in Cape Town. At the beginning of my term, Dr Yang and I set as our goals to increase China’s involvement in the ABLM, to encourage more young people to become active, and to create programs that would allow greater audience participation. We also wanted to involve the insurance industry and other experts in specific projects that were directly responsive to needs expressed by FIATA member companies, its Institutes and Advisory Bodies. As you can see from this report, we have made progress toward all of those goals. Although I never expected to become so involved in the new IATA-FIATA Air Cargo Program, I have learned more about air freight in the past five years than in the previous thirty-five in this industry. I am confident that my successor will be able to build on this momentum. I would like to thank my deputy, Yang Yuntao and the ABLM Manager, Angela Song for their wise counsel and hard work. I am deeply grateful to our ABLM members, co-opted experts and everyone who has supported me as Chair—I have learned an enormous amount from you and you have made my job easier. You never refused to help when requested. We have also had some fun in the process. I could not have asked for more. Richard D. Gluck Chairperson, Advisory Body Legal Matters (ABLM)

ADVISORY BODY SAFETY AND SECURITY

This will be my last year as Chairman of the Advisory Body Safety and Security (ABSS). It has been a great honour to serve as this body’s chairman. After having dedicated 10 years, I will leave with many memories not only of the work we have accomplished but also the people that have embarked on this journey with me. I leave this body in strong hands as Mr. Brian Lovell of AFIF, Australia has graciously stepped forward to take on the role of Chair. Brian is currently my Vice-Chairman and I have full confidence in his ability to take ABSS forward.

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Moving on to the year that has passed we saw further developments in Australia for which ABSS has been keeping FIATA members abreast. As of 1 March 2019, all export cargo to any global destination needs to originate from a Known Consignor or receive technical screening before being loaded onto an aircraft. As of July 1st, 2019, all air cargo to US bound destinations had been processed under the new arrangements, but only represented 5% of Australia’s export air cargo. Everything has gone smoothly with many of the large forwarders implementing off-airport screening at their facilities and many larger exporters joining the Known Consignor (KC) export scheme.

In the U.S where security is taking center stage under the Trump Administration, a re-authorization bill was introduced in Congress to revive the C-TPAT program. In addition, US CBP’s Air Cargo Advanced Screening (ACAS) program went into effect on June 2018, requiring a set of pre-shipment advance data to be filed with CBP for analysis, before permission is granted for cargo to be loaded on aircraft bound for the USA. On a more positive note, turning attention to Europe where a German road freight initiative called ‘Project Cargo’ has proved successful in reducing road freight thefts. Organized by the German policy agency, policy units have managed to retain a crime fighting organization based in Poland which sent mobile teams throughout Europe. During 2018-2019, the project has so far resulted in an 80% reduction in road freight organized crime. The EU commission plans to expand this project throughout Europe. Onto Brexit where it will now be necessary to redistribute the responsibility for designations of ACC3, RA3, KC3 identified entities to the remaining 27-member states. These are entities handling cargo with destinations to the EU. FIATA will continue to follow developments here and keep members updated. At the recent 2019 FIATA HQ Session, ABSS addressed the growth of DG Software and how industry would incorporate this technology when handling DG sensitive goods. Speakers from DGM and IATA were present to demonstrate their software’s capability. Their products provided automatic insight into what is allowed and obligatory in trade, transportation, handling, storage and production and fulfils all the required documentation and labelling needs to ensure FIATA members stay compliant with legislation. The software is also updated constantly to continuously comply with the applicable rules and regulations of the ICAO Technical Instructions, which is released every 2 years. Looking at software from a commercial lens, IATA advised their software helped enhance the checking process time with an estimated 50% less time required. Their proposed solution improves regulatory

“Onto Brexit where it will now

be necessary to redistribute the

responsibility for designations of

ACC3, RA3, KC3 identified

entities to the remaining 27-

member states.”

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compliance and reduces airlines rejection and therefore reduces regulatory fines. They currently have a cohort of freight forwarding members testing the software which includes DHL, Panalpina, Kuehne + Nagel and others. Training was a key question of interest from many delegates with both speakers confirming that certified training would still be required by those utilizing their software. They advised that software should be viewed as a tool to supplement existing mandatory training requirements and the user of that tool is still required to meet DG regulations similarly to manual processing. Looking ahead, our 2019 FIATA World Congress will be my last as ABSS Chair and therefore will be covering a topic that ABSS started discussing in Kuala Lumpur back in 2017. Our session will build from the 2019 World Congress theme bearing the title “Where Security Technology and Logistics Meet”. We will be focusing on the latest anti-theft/robbery technology to combat the hi-tech and other cargo theft in South Africa. This will include helicopter support, drones, remote disarming trucks, real-time tracking and vehicle monitoring software and more. We have secured an interesting line up of speakers from G4S, Panalpina and the South African local police. We hope the session will further stress the importance of industry and governments to work together to achieve the right balance of protecting our industry against what has become a negative part of our daily lives affecting the way we live. FIATA and its members must work with governments to provide input on the industry’s practices, we must be vigilant of unusual freight requests and be proactive to accepting security requirements. Concluding this report, I wish to thank the members of ABSS who willingly dedicate their time to provide consistent feedback and input on related matters which affect our industry. As I move on as Chair, I look forward to future challenges in full assurance that ABSS, supported by Brian’s leadership, the Secretariat, and our members will continue to strive and enhance the safety and security of our industry. I therefore look forward to seeing you in Cape Town. As has become a trademark of ABSS and which will continue well into the future, we can promise you exciting presentations and speakers. One last sign off and Yours Sincerely, David Fielder Chairman, Advisory Body Safety & Security

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ADVISORY BODY OF VOCATIONAL TRAINING

Dear Members, I am glad to report to you the significant work undertaken by the Advisory Body Vocational Training (ABVT) during the year in this FIATA Annual Report 2018/2019. Apart from supporting Association Members in re-validating and improving training programs for FIATA Diploma and Higher Diploma, identifying and awarding outstanding young freight forwarders through YIFFY Award, ABVT is also seeking cooperation opportunities with other international organizations to deliver more diversified training programs for members. Validation of Training Materials As the provider of comprehensive logistics solutions, the freight forwarding industry is on one hand facing constant changes in international and national regulations such as VGM requirement, GDPR of European Union and safety & security programmes, while on the other hand confronted with challenges in changing business landscape like the rise of trade protectionism, forming of shipping alliances and online logistics platforms. The industry is forced to adopt quickly to changes and thus training programs for the practitioners also need to be updated on regular basis to meet the market demands. The ABVT’s Validation/Re-Validation Working Group met at the 45th Validation Session in March 2019, within the framework of the FIATA Headquarters’ Session, to successfully validate and revalidate Training Programmes conducted by FIATA Association Members around the world. Following associations validated their material:

• Customs Brokers and Forwarders Council of Australia Inc.– CBFCA, re-validated their FIATA Diploma in Freight Forwarding;

• Belarussian Association of International Forwarders –BAIF, re-validated their FIATA Diploma in Freight Forwarding;

• International Ocean Freight Forwarders & Logistics Association – IOFFLA, re-validated their FIATA Diploma in Freight Forwarding;

• Taipei Airfreight Forwarders & Logistics Association of Taiwan – TAFLA, re-validated their FIATA Diploma in Freight Forwarding;

• Transport et Logistique de France – TLF, re-validated their FIATA Diploma in Freight Forwarding

• National Association of Freight Forwarders of Georgia – AFG, re-validated their FIATA Diploma in Freight Forwarding

• Ghana Institute of Freight Forwarders – GIFF, re-validated their FIATA Diploma in Freight Forwarding

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• Polish International Freight Forwarders Association – PIFFA, revalidated their FIATA Diploma in Freight Forwarding

• Pakistan International Freight Forwarders Association – PIFFA, validated their FIATA Higher Diploma in Supply Chain Management

During this Session, the Working Group was encouraged to see significant improvement in the training programs of most associations. The Working Group wishes to maintain this momentum and calls for associations that do not have structured training programs yet or have not validated training programs in the last four years to approach the Working Group, whom will make the best efforts to assist in developing and improving training courses that comply with FIATA minimum standards and meeting local market demands. Currently, 47 Association Members in 43 countries have an up-to-date validated curriculum and are eligible to issue the FIATA Diploma in Freight Forwarding. 18 Association Members in 16 countries have validated the FIATA Higher Diploma in Supply Chain Management, out of which 15 have been duly validated and are entitled to issue this diploma. FIATA Diploma in Freight Forwarding From 1st January 1996 to 10th June, 2019 a total of 15’322 FIATA Diplomas in Freight Forwarding have been issued. Top ten countries in terms of number of issued FIATA diplomas include: France (1527), Islamic Republic of Iran (1064), China (836), Singapore (823), Poland (791), Kazakhstan (711), Ukraine (685), Egypt (675), Netherland (609), Ireland (587). FIATA Higher Diploma in Supply Chain Management The ABVT Validation Working Group is ready to validate programmes leading to the FHDSCM. It is strongly recommended that applicants for this qualification should be in possession of the validated and current FIATA Diploma Programme before enrolling and applying for the FHDSCM. Association Members from Netherlands, Singapore, France, Ukraine, Belarus, Kazakhstan, Russian Federation, Vietnam, Ghana, South Africa, Egypt, Nigeria, Chinese Taipei, Lithuania, Pakistan and Indonesia have successfully validated their programmes. From 1st January 2013 to 10th June 2019, 319 FIATA Diplomas in Supply Chain Management have been issued around the world. Trainer Certification The ABVT is also pleased to announce 412 Trainer Certificates have been issued so far. A special highlight is the development of the online Train-the-Trainer course that was conducted in conjunction with the FIATA Logistics Academy and the FIATA Foundation Vocational Training (FFVT) to develop a blended learning approach. We are very excited about the results and looking forward to more interactive classroom courses where trainers

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will have the opportunity to conduct more practical activities and design a collaborative environment. ABVT is greatly encouraged to learn that a large number of FIATA diploma holders now work as senior management personnel in transport ministries, logistics enterprises, freight forwarders and training institutes. This illustrates perfectly one of the main purposes of FIATA diplomas, to certify that the holders have studied diligently and passed necessary tests for courses designed based on FIATA Minimum Standards and encourage the industry to enrol and promote such well-trained students. FIATA/TT Club Young International Freight Forwarder of the Year Award (YIFFY) Award Competition 2019 The Young International Freight Forwarder of the Year Award continuous being a pillar of our congresses and now enjoys a wider presence in the social media. The four regional finalists for the 2019 competition were: Region: Europe (REU): Mrs Evgeniya Khokhlova Russia (FAR) Region: Africa/Middle East (RAME): Mr Enos Chapra Zimbabwe (SFAAZ) Region: Americas (RAMN): Ms. Rachael van Harmelen Canada (CIFFA) Region: Asia/Pacific (RAP): Mr Phillip Burgess New Zealand (CBAFF) The judges were impressed not only by the wide coverage of transport subjects in the dissertations, but also by young forwarders’ knowledge on transport regulations and practice, diligent and detail-oriented work attitude and close observation over freight forwarders’ role and responsibility in the global supply chain. The dissertations made a perfect overview of forwarders daily work, transport oversized project components, temperature controlled and time sensitive cargo, luxury cars, relief aid material, show jumping horses and daily commodities around the world. One can discover in these dissertations the complexity of forwarders’ work to provide best transportation solution while control various risks as well as the inseparable co-reliance of one nation’s economy over the others. We look very much forward to the YIFFY 2019 Winner who will be announced at the FIATA World Congress in Cape Town, South Africa. We hope to be joined by all delegates to celebrate with these splendid young professionals in the Congress. Joint training programs with other international organizations ABVT has been in contacts with the training committee of OSJD to seek the possibility of developing a joint OSJD-FIATA training program. A draft joint training program was

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approved by the OJSD working group in February 2019, which include the following modules:

1) OSJD's role and tasks in the organization of goods carriage in international traffic

2) General knowledge of freight forwarding industry

3) The Agreement on International Goods Transport by Rail

4) Multimodal Transport

5) SMGS Consignment Note for Multimodal Transport: practical application

6) Tariffs, charges and fees for Multimodal Transport

7) Customs procedures for Multimodal Transport of goods

8) Multimodal Transport: Dangerous Goods and Insurance ABVT is also working with ITC (International Trade Centre) to discover best ways to promote the ITC training programs among FIATA members on implementation of WTO Trade Facilitation Agreement (TFA). FIATA has been a strong supporter and advocate of TFA bearing in mind the critical opportunity it offers to achieve important trace facilitation commitments on a global scale, to reduce trade costs and boost cross-border trade. ABVT hope that ITC training courses will enable FIATA members as transport intermediaries to better manage and facilitate trade & transport flows to traders and manufacturers in the global supply chain. ABVT will report more details to the FIATA members in upcoming ABVT session in the Congress 2019. Final Reflections & Future Visions from Chairman, ABVT In conformance with the revised FIATA Statutes; I shall be chairing my final sessions of the ABVT Meetings in the upcoming FIATA World Congress 2019 and the 46th ABVT Validation / Re-Validation Session in Cape Town (South Africa). It has been a great honour and privilege for me to have the opportunity to serve under 9 FIATA Presidents, 3 FIATA Director-Generals, 6 ABVT Managers, and many senior industry-practitioners and experts, as well as interacting with so many great friends and acquaintances over the last 19 years in the World of FIATA. My long journey with FIATA and ABVT, especially in the area of Education and Training has been a very satisfying and fulfilling one, as we saw the great progress and achievements in every tenet of the FIATA vocational education and training developments since 2001, with the steady and increasing adoption of the FIATA Diploma distinctions, despite the development of more stringent standards and the introduction of compulsory regular re-validation of the training curriculums in 2004. FIATA saw the expansion of the FIATA Diploma programmes from a mere below 10% of the total FIATA Associations Memberships to a growing over 60% of FIATA Associations memberships (61 programmes in 53 countries,) whom have since adopted the FIATA Diploma distinctions, as a conduit to their industry’s Human Capital developments. By Congress 2019 in Cape Town, FIATA would achieve nearly 16,000 FIATA Diploma graduates in the count. ABVT evaluated the current transport logistics evolutionary landscapes, the needs and changes over the past years, and developed a learning pathway for the global transport

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practitioners to meet with the advancement of trade logistics by introducing the FIATA Higher Diploma in Supply Chain Management (FHDSCM) Minimum Standards and competencies in 2008. We are now bestowed with 18 FIATA Associations from 16 countries, with some national educational institutions using the FHDSCM standards as the benchmark for developing their Technical and Vocational Education and Training (TVET) programmes for their transport and logistics skills-sets. FIATA Association Members whom have validated programmes have also achieved cross-accreditations from renowned universities across the world recognising their FIATA Diploma and FHDSCM standards, with the acceptance of FIATA graduates into the tertiary degree programmes offered by these institutes of higher learnings. Many FIATA Associations have also gained tremendous tractions in garnering the support of their respective governments and workforce funding in pursuit of their delivery of the FIATA Diploma training programmes in their respective countries – these are clear evidences of the growing popularity and recognition of FIATA’s professional training standards and its relevancy to the current transport and logistics industry practices. In the area of trainers’ professional developments and upgrading; together with the FIATA Foundation Vocational Training (FFVT), ABVT has collaborated and continues to support in the area of extending pedagogical and andragogic knowledge and skills to FIATA Association members in their designs, development of training structures (academies and institutions), training executions and evaluation of curriculums in all the 4 global regions of FIATA. From the cornerstones of Mongolia to Morocco and stretching to Mexico City, the Foundation with the close assistance of ABVT continuously reaches out to FIATA Association Members extensively in building training capacities by expanding critical knowledge, skills-sets and professionalism in transport logistics and supply-chain to numerous beneficiaries. Together with parallel local self-funded Training-of-the-Trainers (TOT) Programmes, more than 2,000 of industry-professionals have been trained as FIATA facilitators and trainers, all ready to deliver the FIATA distinctions globally. As the lead master-trainer for these global TOT Programmes, I have been honoured in representing FIATA to orchestrate these projects with an international team of experts-resource persons since 2003. This has put a positive face of FIATA to our global FIATA Association members whom are direct beneficiaries to these programmes. ABVT has also played an instrumental role in the development of young professionals with the TT Club-FIATA “Young International Freight Forwarder of the Year” Awards since its inception in 1999. Supporting the development of the awards’ criteria, structures as well as the examining the epistemologies of the participants, the annual award has continued to attract steady streams of interested young people from the industry, and the standards of performances by the participants has continuously been on the rise over the decades, coming especially from the developing nations. ABVT’s joint-collaboration with the FIATA Airfreight Institute (AFI) on the development of the Basic Air Cargo Course and the ICAO-FIATA Dangerous Goods Programme (IFDGP) have been also positive demonstrations of the important initiatives of synergies between the different expertise domains that existed in the FIATA nomenclature for the benefits of our global FIATA community.

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It is my hopes and visions that FIATA will continue to support such capacity-building initiatives and efforts in this current fast-changing digital age and towards Education 4.0. We are all in the cusp of global industry transformation and moving forward, FIATA roadmap towards human capital developments will need to focus on preparing our transport logistics workforce to be future-ready by constantly equipping the necessary new skills-sets and competencies to be job-ready with technical and critical soft-skills. FIATA should continue to develop industry-focussed curriculum that mirrors our professions in our industry through strong industry engagements and partnerships to curate real-world projects for students’ learning. The FIATA minimum standards and curriculums should be further strengthened to include Business 4.0 tools and technologies, such as application of smart digital technologies (artificial intelligence, machine learning), the IOTs and the Cloud, human-centred design, workflow automation and making better decision using data analytics, so that our learners will be equipped with the knowledge and skills to navigate the rapid transformation brought about by digitalization. They will also be able to gain better insights into the dynamic behaviour of our global trade and businesses (i.e. with predictive analytics). Project-based learning and experiential learning could be a considered methodology for the future education & training team in FIATA, as it will seek to deepen their industry engagement in the curricula. We should engage and collaborate with FIATA Associations’ Members directly to create shared learning eco-system that enables learners to learn by enquiry and learn by doing in the industry and in the community (workplace learning). To prepare our industry-learners to be work-ready and future ready, FIATA can emphasize on Competency-based Assessment (CBA) in the future designs of the FIATA Minimum Standards requirements. Re-designing the assessments will allow a stronger alignment to the course learning outcomes with the change to continuous assessments to allow space for real-world simulations and practices build into the future curricula. I am confident that with the impending dissolution of the ABVT and the formation of the FIATA Logistics Institute (FLI), FIATA will continue to expand the FIATA Education and Training developments by transforming it into digital and blended learning methodology to empower more FIATA Associations and motivating them towards wider and inclusive training developments in their respective economies. Finally, I would like to take this opportunity to thank the FIATA Presidency and Extended Board for all your supports and guidance over the tenure of my Chairmanship with ABVT. I would like to also express my sincere and utmost appreciations to the FIATA Secretariat, ABVT Managers (particularly Markus Schoeni, Sabrina Bonacker, Ajay Pande, Bassil Eid, Verena Schaer and Angela Song), our FFVT Manager (Barbara Wieser) and most importantly, to ALL my fellow colleagues in ABVT & FFVT and the YIFFY Steering Group, and all FIATA Associations’ Trainers for all your perseverance, dedications and cooperation extended to me during my past 19 years with ABVT, without which such collective and unprecedented successes would not have been possible. I shall cherish and always remember these wonderful moments with all of you. Cheers and God bless all! Yours Sincerely, Thomas Sim, ABVT Chairperson

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FIATA FOUNDATION - VOCATIONAL TRAINING The Train-the-Trainer course in Iran which was foreseen to be held in 2018 had to be postponed to a later stage due to the U.S. Sanctions on Iran. This project will be re-activated as soon as possible. A Pre-Qualification for a Train-the-Trainer Course in Uganda has been conducted from 2nd until 6th of December 2018. The Pre-Qualification showed a positive result and all training needs analysis have been sent to the FIATA Secretariat along with a budget for the course. The budget has been approved and the Train-the-Trainer course in Uganda was held from 27th of April until 6th of May 2019. 33 participants registered and attended the course and 25 participants have passed. The new E-learning programme which has been developed for Train-the-Trainer courses has been successfully used for the first time. This resulted in reduced total costs to host the course. A next Train-the-Trainer course is in planning in El Salvador and the Pre-Qualification is foreseen from 27th until 29th of August 2019. The FFVT is expecting to receive the training needs analyses as well as the budget. Once the Pre-Qualification shows a positive result and the requested documents and budget is approved, this Train-the-Trainer course in El Salvador can be conducted in the second half of 2019. Further Train-the-Trainer courses in Cameroon and Mauritius are in planning and Pre-Qualification Evaluations will be organised as soon as the FFVT has all necessary documents on hand. The Foundation takes the opportunity to warmly thank its regular sponsors and all those FIATA Individual Members which have voluntarily increased their annual membership fee by an optional donation of 25 Swiss Francs (CHF) towards the Foundation’s initiatives. A large number of the members have chosen to donate this way. During the World Congress in Cape Town/South Africa, the Foundation will once again organise its traditional raffle during the Gala Dinner to help raise funds. Jean-Claude Delen President of the FIATA Foundation

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FIATA LOGISTICS ACADEMY What started as an experiment 4 years ago has now started to yield results and interest. This year we launched three digital courses after an inspiring journey. The FIATA Logistics Academy (FLA) Mentors and Members built everything from scratch, a great achievement!! The courses are on: Maritime Transport, Introduction to Global Logistics and Digital Train-the-Trainer Courses. That’s progress! I’m proud to say we’re not just aiming to use new technologies to support validated association members and members at large-- we’re actually doing it. This progress advances in an organic manner. We have received requests from our members. In China our member is planning on a sponsored a new digital course in Dangerous Goods by Sea. Our association members in South Africa and Thailand have expressed principle interest to sponsor other digital courses based on the FIATA Minimum Standards. Our member in Mexico has expressed interest in collaborating in the development of a digital course on eCommerce. We are planning the creation of a series of webinars and podcasts with experts from the WCO and FIATA association members. And finally, we have reached new territories with, as one example, the Chamber of Commerce in Afghanistan asking for enrolment to the courses which they would like to partake for their logistics fraternity. Along this creative journey I have come to realize that building digital skills, developing digital courses, is important in our increasingly digitalized world, but it is far from a sufficient solution. We also need to focus on building digital dexterity- the combination of beliefs, mind sets, and behaviours that accelerate digital business transformation. I am sure the digital courses we offer are a seed planted by our members in the brink of Industry 4.0. The secret to digital is analog: it lies in the freight forwarder workforce having a shared ambition and vision for what digital technologies mean to the industry. The FLA digital initiatives are there to motivate the FIATA constituency to have the ambition to learn digitally, to learn on-the-job, to view technology and digital proficiency as critical building blocks of career development be it technically or in soft skills education, which we are now well equipped with the best of educationists! FIATA association members together are building the world’s largest pipeline of freight forwarders of the future. The FLA aims at being the sounding board that supports their initiatives. Let me mention one of these initiatives. In last year’s congress in New Delhi we signed a Memorandum of Understanding with the World Customs Organization to collaborate in training matters. Our members value the importance of creating synergies with international organizations. In 2019-2020, we’ll focus on building our community — both physically and digitally. We’ll bring members together in a unified mission for education of the industry, growing FIATA’s footprint across the world. We’ll also expand access to the existing digital courses through FIATA association members. We’ll extend our digital presence, linking our members to e-learning and MOOCs created by the best universities. Finally, we’ll continue working of the digitization of the FIATA Diploma in Freight Forwarding.

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I am sure we can together leverage digital personas, create a North Star for the industry’s Learners 4.0 era.

Issa Baluch Chairman FIATA Logistics Academy

WORKING GROUP ON SUSTAINABLE LOGISTICS

It is an honor to recently have been given the role of WGSL Chair and to have an opportunity to compose my first and WGSL’s 3rd ever annual report to highlight some of the activities we have undertaken over the past year. This is my first year as WGSL Chairman and I would like to start by thanking the WGSL Immediate past Chairman, Mr. Heiner Rogge, the Presidency and the FIATA Membership for entrusting me with this important and challenging role. The scientific researches underline that the human being causes “the climate crisis” as a result of “global heating” by humans. Besides these, more and more we hear of the topic of sustainability being discussed at local and international levels with each stakeholder trying to understand where they fit in the equation and how they can contribute. Our industry, seen as a key driver of Greenhouse Gas Emissions, plays a critical role in identifying the sustainability measures that would allow us to strive in the coming decades and continue to be a stimulus for global economic growth and prosperity. One of the key initiatives for the WGSL this past year was to identify an emissions calculator that could help FIATA members measure their carbon footprint and promote sustainable logistics options for the betterment of climate change. At the HQ Session in March 2019, we were privileged to have an exclusive demonstration from TK Blue and NTM who showcased state of the art emissions calculators that could help members track their carbon footprint throughout their supply chains. Through these tools, shippers are able to require relevant performance meanwhile the transport service provider is able to improve its operation through actions best suited for them. In addition to emission calculators, we have also engaged with the Global Logistics Emissions Council (GLEC) group to better understand their standards and contribute with a perspective of the industry. As greenhouse gas calculations vary by country and region, GLEC’s work becomes important to standardize the calculation and ensure that all calculators are measuring GHG in an accepted and approved manner.

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Looking ahead, as the new chair of WGSL, I want to emphasize that sustainability is more than simply focusing on environmentally friendly practices. Certainly, this is a critical component of one’s business and should be looked at carefully however sustainability to me means to ensure the longevity of one’s company and industry, this includes in addition to environmental, economic and societal factors. I want to encourage FIATA members to have such a mindset when thinking of sustainability, we embark to highlight best practices around this theme. In 2019 and 2020, we are looking to partner with key accreditation bodies that can provide credentials to members which have progressed in the area of sustainability and try to establish an industry standard for others to benchmark towards. Before closing, I wish to thank all our members especially those which contribute directly to the work WGSL has undertaken. There is no question that sustainability has played and will play an even more important role in our industry’s and our planet’s future. We must therefore be proactive in seeking solutions that will help activate a dynamic and prolonged growth curve. Thanks again!

Yours Sincerely Cavit Ugur Chairman Working Group on Sustainable Logistics

FIATA WORLD CONGRESS COMMITTEE

I am pleased to write the fourth annual report as Chairman of the FIATA Congress Committee. FIATA is renowned for its diverse and exciting yearly World Congress, which brings together 800-1500 participants from the freight forwarding, transport and logistics industries as well as a significant number of global participants. The presence of traditional ceremonies with high profile world-class lectures and topical debates are an essential component of the Congress Programme. The FIATA World Congress offers business and networking opportunities as well as interaction with governmental and non-governmental organizations. One of the principal assignments of the Congress Committee is to provide recommendation of the host countries to the members of the FIATA Extended Board. After our initial review, we send the shortlisted potential hosts to the Extended Board for voting to select the winner. This is done annually, and the selection process of the host country is three years ahead of the actual congress.

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The host countries must fulfil 8 criteria to be considered as successful bidder. All potential hosts come from 4 regions, the Americas, Africa/Middle East, Europe and Asia Pacific. This vast variety in culture and prospective venues make the FIATA World Congress every year a special event. This past year we reviewed candidates to host the 2021 FIATA World Congress, which was awarded to Brussels, Belgium. The 2019 Congress will be held in Cape Town, South Africa and the 2020 Congress in Busan, South Korea. Another task of the Congress Committee is the continuous improvement of the event. Activities have been taken to restructure the Congress format, which will come into effect by 2021. Marketing and social media activities are under review, also a standardization of a Congress registration platform and a FIATA Congress App are considered. The FIATA Programme Committee is a working group within the Congress Committee, assuring world-class speaker’s contributions at all FIATA Congresses. You will certainly continue seeing results of the work of the Programme Committee. Members of the Congress Committee, chaired by Mr Stanley H.H. Lim, in alphabetical order: Mr Christopher J. Gillespie, Mr David Logan, Mr David Phillips, Mr Francesco S. Parisi, Mr Robert Voltmann, Mr. Turgut Erkeskin, Mr Stephen J. Morris. FIATA Manager: Ms. Elena Primitzhofer. Mr. David Logan, Chief Executive Manager Officer of the South African Association of Freight Forwarders has joined the Committee as a new member in 2019.

Stanley Lim Chairman, FIATA Congress Committee

REGION AFRICA MIDDLE EAST

I am saddened this year to be the one writing this Annual Report for Region Africa Middle East (RAME). With the sudden passing of my dear friend and RAME Chairman, Mr. Stephen Ngatunga simply a few weeks prior to our 2019 FIATA HQ Session in March, I have been called based upon FIATA’s statutes to retake this post as interim RAME Chair. Mr. Ngatunga was a highly grounded practitioner, a trainer and leader in the freight and logistics industry. He was a strong advocate for the international freight forwarding and logistics industry throughout the Region Africa Middle East (RAME) taking on the role of RAME Chairmanship in 2017. His contribution, personality and drive is a great loss to our world. I wish to start this report by once again extending FIATA’s deepest condolences to his family and friends.

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Although difficult, RAME has tried to move forward and continue the great work Stephen had initially embarked us towards. One of the key initiatives of Stephen was to ensure both Africa and Middle East maintained strong integration and therefore appointed our friend David Philips as a vice-president from the counter region of Middle East. I’ve enjoyed working with David and believe he is a great choice to help represent not only the interest of Middle East members but also all those throughout the RAME region. Policy has been a hot topic this year as FIATA follows both the African Continental Free Trade Area (AfCFTA) and the African Union’s Single Air Transport Market (SAATM). I am pleased to see that 52 countries have signed to date the AfCFTA with the exception of Benin, Eritrea, and Nigeria. The Agreement will come into force after ratification of 22 countries. As of 20 February 2019, 15 countries had deposited their Instruments of Ratification. In addition, 28 countries have signed the SAATM of which only 2 have fully implemented the agreement. COMESA, whom FIATA signed an official MoU with, is also working to their member states to implement the agreement. Implementation will require input from private sector and therefore FIATA’s Association Members can expect greater bilateral engagement from their local governments. I encourage members to be proactive and seek discussions with government to urge government to seek ratification and adoption of the agreements. In order to further strengthen our policy efforts with the AU, RAME has proposed to establish a presence directly in Addis Ababa where the AU is located. Our aim for 2019 is to hire a field expert and establish a satellite office as the AU has requested more consistent and in-depth feedback from FIATA and the private sector. Following Zurich in March, I must congratulate the Lebanese Forwarders Syndicate for hosting such a wonderful 2019 RAME Field Meeting in June. FIATA President Mr. Babar Badat also joined us in Beirut delivering the keynote opening speech alongside H.E. Minister of Transportation Mr. Youssef Finianos and His Excellency Minister of Telecommunications, Mr. Mohamad Choucair. The conference entitled “Towards 2025: emerging trends and initiatives vitalizing the freight & logistics sector in the MENA region” attracted high level speakers from TradeLens, UNCTAD, ECOWAS, the ILO and many others discussing topics such as IT development, infrastructure investment and policy formation. A note must be made to the FIATA Foundation in Vocational Training (FFVT) who have been very busy in engaging with RAME Association Members launching numerous train the trainer programs across the continent. Our Association in Uganda has launched a train the trainer courses this year and will move forward with validating their training at the upcoming 2019 World Congress in Cape Town. I encourage any and all associations interested in training to put forth their application to gain access to this capacity building mechanism from the FIATA Foundation. I also want to highlight RAME’s commitment in the coming year to grow our membership. We have already had strong interest from Rwanda and the Republic of Congo which have

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started to engage with the FIATA secretariat on establishing an Association locally. We are following up with both prospective members to ensure they are fully supported. I am calling on association heads in the region to take the lead in establishing new Association Members in nearby country where we do not have a presence and also encourage more individual members in their local countries to join FIATA. This is an important mandate if we are to grow our presence throughout the international community and have more heightened discussions with policy makers. I also wish to highlight FIATA’s contribution to the recently published “Emergent Africa” novel authored by the late Professor Calestous Juma. I want to encourage delegates to continue to push their governments towards integrating logistics into their policy framework. Each association has now received a hard copy of “Emergent Africa” to have on hand at their secretariat location in order to promote the novel’s concepts and ideas. I want to express my greatest of appreciation to FIATA’s membership over the years as our region continues to grow and progress through the challenges and opportunities. I must thank all who have assisted in this work and greatly appreciate their time and efforts Yours Sincerely, Basil Pietersen Chair, Region Africa Middle East

REGION EUROPE

A small deficit for extra-EU Trade in 2018 after five years of surpluses. EU-28 international trade in goods with the rest of the world (the sum of extra-EU exports and imports) was valued at EUR 3 936 billion in 2018 (see Figure 6). Both imports and exports were higher in comparison with 2017, with the increase for imports (EUR 123 billion) smaller than that for exports (EUR 77 billion). As a result, the EU-28’s small trade surplus of EUR 22 billion in 2017 turned into a small deficit of EUR 25 billion in 2018. After experiencing a sharp fall in both exports and imports in 2009, the EU-28 saw its exports rise 58.7 % over four years to EUR 1 736 billion in 2013. Between 2013 and 2016 exports remained relatively stable but in 2017 they increased by 7.7 % compared to 2016 and in the following year increased by 4.1 %. Imports followed roughly the same pattern as exports; they increased 8.7 % from 2016 to 2017 and 6.6 % from 2017 to 2018. The result was that for the first time since 2013 the EU-28 had a small trade deficit. Among the EU Member States, Germany had by far the highest share of extra EU-28 trade in 2018, contributing 28.0 % of the EU-28’s exports of goods to non-member countries and accounting for almost one fifth (18.6 %) of the EU-28’s imports (see Figure 7). The next three largest exporters, the United Kingdom (11.0 %), Italy (10.5 %) and France (10.4 %), remained the same as in 2017 and were the only other EU Member States to account for a double-digit share of EU-28 exports. The Netherlands (14.9 %), the United Kingdom (14.2 %), France (8.9 %) and Italy (8.7 %) followed Germany as the largest importers of goods from non-

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member countries in 2018. The relatively high share for the Netherlands can, at least in part, be explained by the considerable amount of goods that flow into the EU through Rotterdam, which is the EU’s leading seaport. The largest extra EU-28 trade surplus in goods, valued at EUR 360.9 billion in 2018, was recorded by Germany, followed by Ireland (EUR 70.0 billion) and Italy (EUR 67.5 billion). The largest trade deficits for extra-EU trade in goods were EUR 272.5 billion for the Netherlands and EUR 121.5 billion for the United Kingdom (see table B in the excel file attached below). Highest share for intra-EU trade in goods in Luxembourg and Slovakia Trade in goods between EU Member States (intra-EU trade) was valued — in terms of exports — at EUR 3 518 billion in 2018. This was 80 % higher than the level recorded for exports leaving the EU-28 to non-member countries of EUR 1 956 billion (extra-EU trade). Intra EU-28 trade — again measured by exports — increased by 5.0 % across the EU-28 between 2017 and 2018. Considering exports, double digit growth between 2017 and 2018 was registered for Malta (23.3 %), Greece (13.9 %), Ireland (12.3 %) and Slovenia (10.8 %) while only Luxembourg (-1.9 %) saw a reduction of its intra-EU exports. In imports Malta (20.8 %) and Ireland (13.2 %) had double digit growth while no EU Member State saw a decline of its imports. As with extra EU-28 trade, Germany was also the EU Member State with the highest level of intra EU-28 trade in 2018, contributing 22.2 % of the EU-28’s exports of goods to other Member States and also just over one fifth (20.9 %) of the EU-28’s imports of goods from other Member States (see Figure 8). The Netherlands (13.0 %) was the only other Member State to contribute more than one tenth of intra-EU exports, again a consequence of the Rotterdam effect, while France (11.5 %) was the only other Member State to account for more than one tenth of intra-EU imports. The importance of the EU’s internal market is underlined by the fact that intra-EU trade in goods (exports and imports combined) was higher than extra-EU trade (exports and imports combined) for each EU Member State (see Figure 9). The proportion of total trade in goods that was accounted for by intra-EU and extra-EU flows varied considerably across the Member States, reflecting to some degree historical ties and geographical location. The highest shares of intra-EU trade (around 80 % of total trade) were recorded for Hungary, Czech, Slovakia and Luxembourg with this ratio falling to 50.3 % in the United Kingdom. Strong increase of trade in goods with China in 2008-2018 Between 2008 and 2018, the development of the EU-28’s exports of goods by major trading partner varied considerably. Among the main trading partners, the highest growth rate was recorded for exports to China which almost trebled, while exports to South Korea almost doubled (see Figure 10). Exports to Norway grew more slowly and were only 23 % higher in

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2018 than they had been in 2008, while there was a decline of 19 % in the level of EU-28 exports to Russia over the period under consideration. On the import side, between 2008 and 2018 the EU-28 saw a decrease in the value of its imports of goods from Norway (-13 %), Japan (-8 %) and Russia (-7 %); for Norway and Russia these changes reflect, at least in part, changes in the price of oil and gas. The greatest increases were registered for imports from Turkey (+64 %), China (+58 %) and India (+55 %). Review of combined transport directive/1992/106 The scope was extended to all operations in the European Union, including all intra-national combined transport operations. The maximum distance of the road leg can be 150 km or 20 % of the total distance whichever is longer, irrespective of the non-road leg type (rail, inland waterways or maritime). Member States may allow the limit on the road leg to be exceeded where necessary to reach appropriate rail terminal, but cabotage exemption remains. Together with a number of other organisations involved in transport matters, CLECAT believes that investing in transport, and in particular in the TransEuropean Transport Network (TEN-T), is crucial for Europe’s growth and jobs. During the TEN-T days in Ljubljana, a coalition of more than 40 European associations stressed the need for more money for transport in the new EU Multiannual Financial Framework (MFF) for the period 2021-2027. More specifically, the Transport coalition called for more budget for EU transport provided through the Connecting Europe Facility (CEF). Brexit Negotiations draft withdrawal agreement A draft text on the post-Brexit relationship between Britain and the European Union was agreed paving the way for a summit on Sunday at which EU leaders could endorse the plan. The draft Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community was published on 14 November 2018. The draft Withdrawal Agreement sets out the provisional terms of the UK’s smooth and orderly exit from the EU. It reflects agreement in principle between the UK and EU negotiating teams on the full legal text. On 22 November, European Council President Donald Tusk sent the EU27 Member States the draft Political Declaration setting out the framework for the future relationship between the EU and the UK that has been agreed at negotiators' level and agreed in principle at political level, subject to the endorsement of the Leaders. It provides instructions to negotiators that will deliver a future relationship by the end of 2020 covering an economic partnership, a security partnership and agreements on areas of shared interest.

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The UK Government also published Explanatory slides on the Withdrawal Agreement and outline Political Declaration on the future relationship with the EU to support understanding. Rail The “Handbook for Intercontinental Contingency Management” was accepted unanimously by Rail Net Europe (RNE). The Handbook represents the direct result of the lessons learnt from the aftermath of the 2017 Rastatt incident. The measures contained in it will be applied from the start of the 2019 timetable in December. Rail Network Europe has approved the new guidelines for coordination and publication of planned temporary capacity restrictions (TCR Guidelines), which represent a revision of Annex VII of Directive 2012/34/EU. The TCR Guidelines will come into effect as of the timetable period 2019 with the aim of allowing traffic flow despite the capacity-reducing effects of re-investing into the rail infrastructure with the stakeholders’ specific interests in mind. As a result, all European infrastructure managers will be obliged to follow uniform rules when carrying out projects that temporarily affect the capacity on their network. Following these rules, infrastructure managers will have to involve known and potential applicants, main operators of service facilities and other infrastructure managers who are affected by the restriction at an early stage. Road Mobility Packages The TRAN Committee of the European Parliament voted on the following proposals of Mobility Package 1:

• Charging of heavy goods vehicles for the use of certain infrastructures -2017/0114 (COD) – Rapporteur Christine Revault d’ Allones Bonnefoy.

• Charging of heavy goods vehicles for the use of certain infrastructures as regards certain provisions on vehicle taxation – 2017/0115 (CNS) – Rapporteur Deirdre Clune.

• Interoperability of electronic road toll systems and facilitating cross-border exchange of information on the failure to pay road fees in the Union.

The Council adopted a general approach on updated electronic road tolling rules, which include a legal basis for sharing of information between Member States. This initiative was based on the wish of Member States to grant each other access to national vehicle registration data in order to facilitate the tracking of owners of foreign vehicles that fail to pay road tolls. The possible administrative or legal consequences followings this update will depend on the national law of the country where the failure to pay a road fee took place. The draft directive aims at improving the interoperability of electronic tolling systems across Europe through the removal of administrative barriers and by providing electronic tolling providers easier access to the toll collection market. This aims at allowing road users to travel across the EU while paying their electronic tolls with one on-board unit, one contract

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and one invoice. Furthermore, the Council has strengthened the provisions on data protection in this general approach. The first regional conference on the EU-funded ‘Study on Safe and Secure Parking Places for Trucks’ was held in Madrid, Spain. The conference, hosted by REPSOL, focused on two main topics:

• How to set up a coordinated network of safe and secure parking areas?

• What are the business and capacity needs for truck parking operators? During the conference the need for a common standard for truck parking areas was highlighted. This shall ensure the provision of reliable information on security, service and comfort levels of truck parking areas embedded in a reliable rating system. Furthermore, the need for faster administrative procedures for the setup of secure parking areas and more reliability for concession holders across Europe was emphasised. Thereby, the coherent deployment of safe and secure parking areas will be enabled, which will be facilitated by an EU-wide needs assessment mapping. Customs The existing legislative framework does not allow businesses to rely sufficiently on the principle of mutual recognition when they enter new markets in other EU countries. Goods which are lawfully commercialized in one EU country are still occasionally denied market access in another EU country for no good reason. As a consequence, businesses tend to adapt their goods to the various requirements of each national market when trying to enter new markets which leads to unwarranted costs and delays. The draft regulation is expected to improve the application of the principle of mutual recognition. It will clarify the scope of mutual recognition, introduce a mutual recognition declaration, establish a problem-solving mechanism, improve administrative cooperation and provide for the possibility of EU financial support. The provisional agreement will have to be endorsed by the European Parliament and the Council before it is formally adopted. Sea The European Consortia Block Exemption The block exemption regulation exempts certain activities of consortia from normal competition rules. The BER currently permits some operational collaboration related to sailing timetables, slot agreements, pooling of vessels and port installations, capacity adjustments and others. The current BER rule in EU is up for renewal in 2020 and stakeholder have been asked to comment. CLECAT is collating feedback from its members, but there is concern that any such block exemption must be clearly focused on the sea freight activities from port to port - only. In onshore activities related to the pre-carriage and on-carriage of containers, shipping lines

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compete with forwarders offering such services in merchant haulage – with forwarders not having such a block exemption. It must also be assured that only data are shared that are related to a port to port move. Air European FTKs growth falls to a 32-month low Year-on-year growth in international FTKs flown by European airlines fell to 1.3% in October – its slowest pace since February 2016. Wider weakness in European manufacturers’ export order books – notably Germany – finally looks to be visible in the air freight data. (Again, see Chart 3.) Indeed, having trended upwards strongly in SA terms across much of 2018, freight volumes fell sharply in month-on-month terms in September and did not bounce back in October. Source: IATA Air Freight Market Analysis Turgut Erkeskin Chair, Region Europe (REU)

REGION AMERICAS NORTH AND SOUTH

2018 was a defining year for Region Americas and our members. We continue meeting annually at the FIATA World Congress, the FIATA Headquarters Sessions and the ALACAT Congress, to discuss the circumstances under which freight forwarding is developing in the world. In these discussions, we also establish elements of analysis that allow RAMNS and its members to clearly identify the challenges facing our sector now and in the coming years. Logistics, with all aspects related to the industry, is fundamentally relevant because of the consequences it has on competitiveness. Time required for cargo loading, transportation and unloading is directly correlated to the final price of transported goods. For this reason, improving efficiency and effectiveness of the logistics sector globally is the biggest challenge. I immediately recall our discussion on demurrage. Especially useful for our region was the best practices paper on Demurrage and Detention in Container Shipping issued by FIATA last year, which our members helped develop. We continue working on strategic alliances and membership development. One milestone is adding a new association member from Brazil to ALACAT, and it will soon be integrated into FIATA as well.

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I must also mention the importance of using our sessions to dialogue about international trade dynamics. The success of a country’s commercial policy cannot be measured by the number of trade agreements it has, but by their content. We aim at supporting supply chain competitiveness as a joint effort between public and private sector and will continue inviting speakers to our FIATA World Congress sessions that can share these perspectives with us. Whilst outlining efficiencies we also have discussed e-commerce and some of our regional members are starting specific projects focused on building the tools freight forwarder businesses need in the 21st century. RAMNS is a sounding board where business transformations are discussed.

Jorge Heinermann Chair, Region Americas North and South (RAMNS)

REGION ASIA PACIFIC

It has been an honour and privilege for me Chair FIATA’s Region Asia Pacific (RAP) from 2009, as well as serve as FIATA Vice President from 2011 to 2013 and be a member of ABIA from 2015, which at that time ended due to rule change for which one person could not hold two functions. The position as RAP Chairman was firstly handed over to me by the former Chairman, Stanley Lim during the RAP Meeting in Vancouver, Canada on September 23, 2008. Until this time and including the RAP Meeting in Cape Town 2019, I would have chaired 11 RAP Meetings at FIATA World Congresses (FWC), 11 RAP Meetings at HQ sessions and 11 RAP Field Meetings. In sum, I have chaired a total of 33 RAP meetings, which seems like a lot of meetings but indeed it was always very productive in which important issues were being shared, discussed and decided. What is very special and memorable about those meetings is that it was a meeting with friends in which we became a big family. Along those 11 years, I have worked together and been supported by very capable members from the Presidency, Extended Board and Chairmen of Advisory Bodies. During these times, I have been guided and supported by 6 Presidents: William M. Gottlieb, Jean Claude Delen, Stanley Lim Hwee Hong, Franseco S. Parisi, Huxiang Zhao and Babar Badat. I am very proud that during my period, 3 of the Presidents I have served originated from the Region Asia Pacific. If I look back to those years starting from 2008, Asia Pacific has grown so fast and become one of the leading regions globally. Business has also developed very quickly from simple and traditional way of doing business to an era of digital economy. Now it is a very challenging world, especially for our line of business. We have the opportunity to develop quickly by taking advantage of the digital tools or face the possibility of fading away.

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In this RAP report, please allow me to also touch base on this year progress. Some main issues have arisen in this last one year (2018-2019) in RAP. In RAP Meeting during New Delhi, September 28, 2019, E-Commerce became one of the main issues. Steve Morris, Acting Director General and Past Customs Affairs Chairman advised that some issues were covered by the World Customs Organization (WCO). The WCO connected to recent work done to the establishment of Framework of Standard for E-Commerce. We all learned that all members of associations have to participate actively with their governments in order to ensure that there exist a level playing field between E-Commerce and traditional goods moving across the border. A strong position was taken by FIATA to ensure traditional Freight Forwarder is not put aside to satisfy the benefits of Express Carriers and E-Commerce Trade. Another issue was Air cargo Advance Screening that has been put in place by the United States and is being now pushed further to additional economies. This is covered through the WCO, ICAO and IATA partnership via the Pre-Load Advance Cargo Information (PLACI). This initiative entails data very similar to other data provided in other countries be made available to the regulatory authorities so they can screen the cargo before it is uploaded to an aircraft and dispatched. This, Mr. Morris explained, was to ensure the threat was neutralized. There are costs in relation to the complying with the initiative that are required to be taken into consideration. Furthermore, customs always becomes a big issue. E-Commerce tries to overcome borders however every Custom Administration establishes their own tools. E-Commerce logistic is basically their prime mover. The difference is always in logistic costs. On the goods itself, the margin is very low. Members should avoid to underestimate that impact. What we need from our members and our Association Members is to constantly work with regulators, whether it is the Department of Commerce, Finance or Customs Administrations, to find the best and most appropriate reality for E-Commerce solutions and also for traditional cargo. However, the end game will be the Associations work with their Government. During the last two years, Indonesia itself, already has four Unicorns. One of them is even worth 6 Billion USD. E-Commerce allows start-ups from this young generation to overpasses all other businesses in such a short period. One of the start-ups that is soon to become a Unicorn has planned to move goods all over Indonesia by drones. Our industry cannot stay and rest by doing things the conventional way, otherwise we will be left behind. The future and young generations must be given the room to develop in a very positive way. Like this, the logistics sector will always be ahead and important by supporting the business of trade.

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Besides that, Thomas Sim, Chairman of ABVT also advised that the ABVT WG for Validation and Re-Validation convened its 44th session on September 2018. They successfully revalidated eight countries. Of the eight, four were of within RAP. They are Indonesia for the Diploma in Freight Forwarding, Malaysia for the Diploma in Freight Forwarding, Singapore for the Diploma in Integrated Logistics Management and Diploma in International Freight Management, and Kazakhstan for the Diploma in Freight Forwarding and Higher Diploma in Supply Chain Management. In our RAP HQ Meeting in Zurich, March 28, 2019, we were honored by the presence of Dr. Mohammad Saeed, the Senior Adviser Trade Facilitation and Policy for Business, International Trade Centre as a speaker. He presented on the WTO (World Trade Organization) Trade Facilitation Agreement (TFA): 2019 and beyond. In details, he briefed us on the progress made and where it’s heading. He highlighted how FIATA members must conduct themselves and what we need to do. We can actually play a significant role in the outcome. Furthermore, he highlighted how forwarders at the Individual and Association level would have to engage in order to profit from the rise of legal commitments made by their Government on the National level. Participation of the Private Sector to the NTFC (the National Trade Facilitation Committees) is important. Based on my involvement and experience of representing my government, one has to understand that what competitors in other countries are doing. If they want to open your market, they will come through that. One has to equip themselves, which is why our sector needs to be in the NTFC, for which other countries will follow. If there is no issue made at your government, there is no issue to trade it with other pressure they want to require. We also raised issues surrounding ICAO regulations. In principal, not mandatory, they give recommendations to the Civil Aviation Authorities. The countries decide whether to enact the rules and to make them into law. Hong Kong was already going down that track for the year 2021 and gave the industry time to get prepared. They knew that some major forwarders had already equipment purchased. P.R. of China is already working under 100% screening. It is expected that this will grow rapidly especially in Asia. The 13th FIATA Region Asia Pacific Field Meeting held traditionally in conjunction with the UN ESCAP Regional Conference for Logistics Service Providers took place in Bangkok on the 10th of June 2019 for the seventh time. This location is where ESCAP has its Headquarters. This meeting was organized well by TIFFA. This was the seventh meeting held in Bangkok, where the previous six meetings were held in 2008 in New Delhi, India, 2010 in Bali, Indonesia, 2013 in Negombo, Sri Lanka, 2014 in Beijing, P.R. China., 2016 in Jakarta, Indonesia and 2018 in Busan, Republic of South Korea. What was highlighted in the meeting was The Review of the WCO Revised Kyoto Convention and the current progress made in the A/P Region. From Customs’ perspective presented by Dr.Tong Hua, World Customs Organization (WCO) Asia/Pacific Regional Office for Capacity Building (ROCP A/P), CCF/China Operation Manager and Program Manager (PI). In order for the RKC to remain a living strategic document for modern customs procedures in the 21st century, the comprehensive review would require an overall needs analysis to accommodate updated or new concepts contained in the WCO tools, as well as the WCO

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Member administrations’ best practices. He underlined the importance of stakeholders’ engagement which includes FIATA as a partner of the WCO, to further develop their proposals for the success of the comprehensive review. FIATA’s new location and the merger of FLA and ABVT was also raised, discussed and explained by the President Babar Badat. Regarding the new location, the plan is to move the FIATA secretariat from Zurich to Geneva. The merger was actually a graduation which built up on what has been achieved for the past years. Allow me to thank the Presidency, Extended Board, Chairman of Advisory Bodies, Chairman of Asia Pacific National Association and all my colleagues from our beloved region for all the support, cooperation and most importantly the friendships. Lastly, I would like to thank the FIATA Secretariat, especially Daniel Bloch, for all the support and help they have given me to conduct my job as Chairman of RAP. Without their support it would be difficult for me to carry my duty. I wish all the best and success for Region Asia Pacific as well as for FIATA. May God bless us all.

Chris Kanter Chair, Region Asia Pacific (RAP)

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Doc. 30 / 295 Glattbrugg 31 August 2019 Registered Office:

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