fiata review magazine of the no.106, march...

FIATA REVIEWMagazine of the International Federation of Freight ForwardersAs so ci a tions No. 106, March 2015

Slovakia – The Little Big Country

New Year, New Challenge – Train-the-Trainer Course in Chile

A Young Voice – Opinions on the FIATA World Congress

FIATA REVIEW NO. 106, MARCH 2015 3

Contents

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Editorial 5 From the President’s Desk

News 6 Train-the-Trainer Course in Santiago de Chile

9 Who’s Absent? Did you Validate your Training Programme Yet?

12 FIATA’s NextGen: Finished Product or Work in Progress?

14 The new CTU Code

Country Report10 Slovakia – The Little Big Country

Personally17 Meet Chelliah Krishnan Vice President of FIATA

Here & There18 Happy Birthday!

Agenda19 Forthcoming Events

FIATA HEADQUARTERS SESSIONZURICH, 18—22 March 2015

WEDENSDAY, 18 MARCH Time Location

Meeting of the Presidency* FIATA Secretariat: Marco Sorgetti 9.00–16.00 Swissôtel Room St. Moritz

FIATA Foundation Meeting*FIATA Secretariat: Barbara M. Wieser (for Members only)

16.30–18.30 Hotel SternenRoom Hans

THURSDAY, 19 MARCHAssociation Members of the Region: Swissôtel

• Africa/Middle East FIATA Secretariat: Bassil Eid 8.00–10.15 Room Zürich/Basel

• Asia/Pacific FIATA Secretariat: Daniel Bloch 8.30–10.15 Room Arosa/Davos

• Europe FIATA Secretariat: René Zimmermann 8.30–10.15 Room Bern

• America FIATA Secretariat: Verena Schaer 8.30–10.15 Room Vevey/Lausanne

Coffee Break 10.15–10.45 Swissôtel Foyer

Advisory Body Legal Matters FIATA Secretariat: René Zimmermann 10.45–12.00 Swissôtel Room Zürich/ Basel

Lunch (free disposal)

Advisory Body Vocational Training FIATA Secretariat: Verena Schaer 13.00–14.15 Swissôtel Room Zürich/Basel

Advisory Body Safety and Security FIATA Secretariat: Bassil Eid 14.30–15.45 Swissôtel Room Zürich/Basel


Airfreight Institute FIATA Secretariat: Daniel Bloch 16.15–18.00 Swissôtel Room Zürich/ Basel

FRIDAY, 20 MARCHAssociation Managers Conference FIATA Secretariat: Verena Schaer 8.30–10.00 Swissôtel Room Zürich/ Basel


Customs Affairs Institute FIATA Secretariat: Daniel Bloch 10.30–12.15 Swissôtel Room Zürich/Basel

LUNCH (FOR REGISTERED DELEGATES) 12.30–14.00 Swissôtel, 1st Floor Room Lakeside

Advisory Body International Affairs FIATA Secretariat: Bassil Eid 14.15–15.30 Swissôtel Room Zürich/Basel


Multimodal Institute FIATA Secretariat: René Zimmermann 16.00 –18.00 Swissôtel Room Zürich/Basel

SATURDAY, 21 MARCHFIATA Logistics Academy FIATA Secretariat: Verena Schaer 9.00–10.15 Swissôtel Room Zürich/Basel

Advisory Body Information Technology FIATA Secretariat: Bassil Eid 10.30–11.45 Swissôtel Room Zürich/Basel

Lunch (free disposal)

Open session on the future of FIATA FIATA Secretariat: Marco Sorgetti 13.30–15-30 Swissôtel Room Zürich/Basel


Open session on the future of FIATA FIATA Secretariat: Marco Sorgetti 16.00 –17.30 Swissôtel Room Zürich/Basel

Extended Board Dinner* FIATA Secretariat: Marco Sorgetti 19.30–22.30 To be confirmed

SUNDAY, 22 MARCH Meeting of the Extended Board* FIATA Secretariat: Marco Sorgetti(Coffee Break in the Meeting Room) 9.30–11.30 Swissôtel

Room Bern

*Please note that the meetings of the Presidency, the Extended Board and the FIATA Foundation are for members of the relevant Bodies only.

All meeting rooms (except for the Regional Meeting Asia Pacific which is on the 31st Floor) are on the first floor of the Swissôtel. The Meeting Room of the FIATA Foundation Meeting is located at Hotel Sternen Oerlikon – Room Hans.

Official Carrier


From the President’s desk

5

Dear Colleagues and Friends

At the time of writing this edito-rial the first month of 2015 was already coming to an end.

The Presidency held its traditional win-ter meeting in Singapore on the 11th and 12th of January with a strong and constructive agenda. My thanks go to the Singapore Logistics Association and to our Immediate Past President Stanley Lim for hosting us in style. Stanley has recently received an award for his achievements in Logistics: you will find an article on this in the following pages. Congratulations, Stanley! Your achievement reflects pro-foundly on FIATA too and we are all proud of your results.

On his way back from Singapore our Director General Mr Marco Sorgetti had an accident, which resulted in an operation to his legs. He is now undergoing rehabilita-tion, but we all know that his notebook is connected 24/7 and he is answering all messages in real time. Marco, best wishes for a fast recovery from all of us!

The world goes through turbulences: com-modity prices, especially energy prices, have collapsed, currencies are fluctuat-ing widely, some regions appear to have emerged out of the 2009 world recession, whilst some still struggle at zero growth. In this landscape most governments and institutions have acknowledged the im-portance of investing in infrastructure for improved connectivity. If this comes to fruition, it could reflect positively on sustainable economic growth: FIATA was first to strongly advocate for infrastructur-al investments, with a view to achieving better connectivity. Maybe it was written in the stars, maybe our voice has been

listened to, in any case, our advocacy work is strong and is growing stronger.

In this fast changing environment FIATA too is constantly on the move to improve and adapt to the changing needs of our industry. In the programme of our next Zurich HQ Session in March, you will see that an entire session has been reserved for an open discussion on the future of FIATA. As with any other organisation, we need constant innovation, and we have gladly taken on board the constructive sugges-tions some of you expressed at the FWC 2014 in Istanbul to open a debate on this crucial topic. Starting as brainstorming, we hope that new and constructive ideas will emerge from the debate.

Do not miss the report by Ms Verena Schaer on the recently concluded Train the Trainer course in Chile and the Advisory Body Vocational Training Validation ac-tivity: this is a clear sign of the importance of training and education for the entire FIATA constituency.

Another young sprout has made his pen available to us: Zein Baluch tells us about his first experience at the FWC. We really have to listen more to the young generation and are working on initiatives to attract more young professionals to our events, especially our World Congresses. There is more in this number: the new very important CTU Code, an interview with our friend and FIATA VP Krishnan Chelliah, and the country report on Slova-kia: a beauty stretching from the Danube to the Russian plains… Enjoy your read-ing and see you soon in Zurich!

Francesco ParisiFIATA President

6

News

Train-the-Trainer Course in Santiago de ChileThe FIATA Foundation for Vocational Training

chose a fine way to start this year. It spon-

sored a Train-the-Trainer course in Santiago

de Chile from January 2nd to 16th, 2015.

ALOG (Asociación Logística de Chile), FIATA’s Association Member in Chile, applied for this course, pointing to the im-portance of training and education in the field of freight forwarding and logistics in a country that is the world’s number one copper producer and the second largest exporter of salmon. The success of trans-portation and logistics operations depends decisively on the quality and qualifica-tions of its employees.

During two weeks, 13 course attend-ants obtained professional training in a condensed way. International facilitators included the following experienced per-sonalities: Thomas Sim, ABVT Chairman; Uwe Schick, Director of Studies, Head of Department for Forwarding & Logistics and Senior Teacher at Julius-Leber-Schule, Frankfurt am Main; Vincent Valentine, transport economist at the United Nations

Conference on Trade and Development (UNCTAD) in Geneva, Switzerland; and Dr. Peter Wong, Professor at the Depart-ment of Logistics and Maritime Studies at the Hong Kong Polytechnic Univer-sity. Certainly, the success of education at the FIATA Foundation is the result of an emphasis on selecting teachers, as well as prioritising investment in developing countries.

FIATA has a historical tradition of re-spect for education. Its foundation cares deeply about the sector’s professional de-velopment. Across the years a solid train-ing plan has been consolidated covering Andragogy, Road Transport, Air Trans-port, Rail Transport, Sea Transport, Multimodal, Dangerous Good Handling, ICT, Logistics, Warehousing, Safety and Security, Trade Facilitation, Insur-


Train-the-Trainer Course in Santiago de Chile

ance, and Supply Chain Management. The global character of the programme is then enriched by local lecturers to pro-vide students with national knowledge on Customs Procedures, Legal Matters, and specific modes of transport relevant to the country.

One of the aspects that render this pro-gramme distinct is its future-orientation, industry acceptance and recognition. Suc-cessful TOT graduates receive a Train-the-Trainer Certification that validates them as official FIATA Foundation Trainers. The course also includes strategic plan-ning to ensure that a FIATA Diploma in Freight Forwarding Course is ultimately implemented in the country. ALOG lies at the forefront of a determined educa-tion agenda – collaborating with national universities a course will be launched in Chile in March this year. Global economic competitiveness is the aim of this course, and ALOG knows that education is one of the drivers.

The TOT system values test-taking abili-ties, creativity and critical thinking. Stu-

dents are assessed in several ways includ-ing a challenging 6-hour examination on factual knowledge and individual presen-tations that evaluate their teaching skills. Participants learn how to teach other adults, acquiring the effective skills that are necessary for industry training. In such circumstances, teachers of adult learning who are working as facilitators are expect-ed to prove themselves as unobtrusive and learn how to identify learning objectives, create a lesson plan, and acquire presenta-tion skills that allow a natural flow and interaction among the learners.

The FIATA Foundation’s reputation as an educational powerhouse is well-deserved – as can be inferred from some of the par-ticipants’ feedback:

“I’m grateful for this chance and pretty amazed of what can be done with the knowledge hereby acquired. The pro-gramme was challenging and the lecturers were great!”

“The FIATA TOT is world class. It is a huge plus to have lecturers from the other

side of the world, with other points of view and experiences. It’s also good that modules include topics or modes of trans-port not usually used locally.”

“I really think this course was excellent in every aspect: excellent teachers and materials.”

“It was an unforgettable experience and it will contribute a lot to my future.”

In addition, to have a better overview of the transportation industry in Chile, facilitators visited the Port of Valparaíso. Valparaíso is a major city, seaport, and educational centre commune in Chile. Visiting this city was an instructive experi-ence for all.

Aware of the strong need for differentiated development options in the transporta-tion and logistics industry, the FIATA Foundation is planning two further TOT Programmes this year, one in Zimbabwe and another in Cameroon.

International Facilitators enjoying a guided tour at the Port of Valparaíso

News


Who’s Absent?

Did you Validate your Training Programme Yet?A lot has been said about the slow

development of talent that is of great

concern to the Supply Chain and Freight

Forwarding sector.

ACCORDING to the supply chain and logistics professional development asso-ciation CITT, only 8% of supply chain employees are under 30. A recent study conducted by C. John Langley Jr of Penn State University in collaboration with Capgemini Consulting, Penske Logistics, and Korn/Ferry International, states: “… the logistics industry continues to suffer a talent shortage, and isn’t doing enough to attract interest in the field. Unfortu-nately though, solving the supply chain’s talent needs requires more than simply attracting more talent, particularly for leadership roles. To succeed in a slow growth economy, shippers and 3PLs need leadership teams that demonstrate high levels of competency in the multiple as-pects of maturity and agility described above.” Similarly, Manners-Bell’s research evidenced that logistics managers around the world are experiencing difficulty in re-cruiting new staff with the requisite skills. Further, PWC’s study “Transportation & Logistics 2030” stated that “… future job seekers still won’t see transportation and logistics as a desirable industry. To stand out, transportation and logistics companies must proactively manage their company brand.”

And what are FIATA Association Mem-bers doing about this? Since 1996 the Advisory Body Vocational Training has aimed to encourage training in the freight forwarding industry and further develop the professionalism therein. The ABVT Validation/Re-Validation Working Group provides FIATA Association Members

with expert advice, tools and consulting services in order to support the execu-tion of educational programmes around the world. Currently, two programmes can be validated, leading to the FIATA Diploma in Freight Forwarding and the FIATA Higher Diploma in Supply Chain Management.

The contribution and involvement of FIATA Association Members’ in training and education is vital to the continued development of the freight forwarding industry. Underpinning the entire global economy, freight forwarding is a strong, mature and innovative industry that holds together the fabric of modern life in the developed world. It is also critical as a means to integrate emerging markets into the global trading system, thereby being an effective driver of development. The World Economic Forum’s Outlook on the Logistics & Supply Chain Industry 2012 pointed out that, “… despite the mas-sive investments needed in ports, airports, roads, trucks, ships and airplanes, the industry is essentially a people business. It is estimated that around a quarter of all costs are staff related.”

Industry knowledge is gaining impor-tance as shippers expand their supply chains in response to increasing complex-ity, globalization and ICT. Training and education are required to better align with market needs. Therefore, it is crucial that all FIATA Association Members around the world Validate and implement a pro-gramme. Currently, 72 programmes in 54 countries have been Validated. There have been significant improvements in the take-up rates of New and Validated programmes in recent years. However, there are some programmes which have

not been Re-Validated in the last four years and therefore are out-of-date.To facilitate the Validation process, the ABVT has: created a Validation Guide, it has compiled the 14 FIATA Minimum Standards into a FIATA Diploma in Inter-national Freight Forwarding, and it has also compiled the 7 FIATA Minimum Standards into a FIATA Higher Diploma in Supply Chain Management.

Twice a year the Validation/Re-Validation Working Group meets, within the frame-work of the FIATA Headquarters Ses-sion, taking place in March every year in Zurich, and the FIATA World Congress, which takes place annually in September/October and is hosted every year by a different Association Member. Prior to each session, the candidate for Validation (a FIATA Association Member) needs to fulfil a set of well-specified and important criteria that enable the establishment of an adequate, didactic education programme. Programmes need to be Re-Validated every four years.

It is our industry’s responsibility to part-ner with relevant bodies and amplify our commitment of time, resources, and passion to the end goal of creating better education and more competent freight forwarding and logistics human resources who are equipped to succeed in this chal-lenging world.

10

Country Report

Slovakia – The Little Big CountryRight at the heart of Europe and with a his-

tory intertwined with that of its neighbours,

Slovakia has proudly preserved its own lan-

guage and distinct cultural traditions.

IT HAS A POPULATION OF OVER FIVE MILLION and an area of about 49,000 square kilometres. Slovakia is landlocked and bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hun-gary to the south. The largest city is the capital, Bratislava, and the second largest is Košice. Slovakia is a member state of the European Union, Eurozone, Schengen Area, NATO, the United Nations, the OECD and the WTO, among others. The official language is Slovak; a member of the Slavic language family.

The country was part of Czechoslovakia until the “velvet divorce” in January 1993 and has made significant economic re-forms since its separation from the Czech Republic. After a period of relative stagna-tion in the early and mid-1990s, reforms to the taxation, healthcare, pension, and social welfare systems helped Slovakia consolidate its budget, get on track to join the EU in 2004, and adopt the euro in January 2009.

More Growth AheadThe Slovak economy slowed down in 2013 but growth is expected to gather pace, reaching 2.2% in 2014 and 3.1% in 2015. The composition of growth is to become more balanced as the main driving force shifts from net exports to domestic demand.

Employment is expected to grow only modestly and over the forecast horizon inflation will remain low. The government deficit is projected to remain just below 3% of GDP.

Slovakia is also an attractive country for foreign investors mainly because of its low wages, low tax rates and well educated labour force. In recent years, Slovakia has been pursuing a policy of encouraging foreign investment. FDI inflow grew more than 600% from 2000 and cumulatively reached an all-time high of $17.3 billion in 2006, or around $22,000 per capita by the end of 2008.

University EducationThere are 35 universities in Slovakia spread all over the country. In the academ-ic year 2012/2013, there were 210,263 students enrolled at Slovak universities and 67,343 students graduated (both data include Bachelor and Master Studies) in 2012/2013. The Programme for Interna-tional Student Assessment, coordinated

by the OECD, currently ranks Slovak secondary education the 30th in the world (placing it just below the United States and just above Spain).

National IndustryAlthough Slovakia’s GDP comes mainly from the tertiary sector, the industrial sector also plays an important role within its economy. The main industry sectors are car manufacturing and electrical engineer-ing. Since 2007, Slovakia has been the world’s largest producer of cars per capita, with a total of 571,071 cars manufactured in the country in 2007 alone. Slovakia was placed 1st in World production per 1000 inhabitants in 2013 with 181 cars/1000 inhabitants. There are currently three auto mobile assembly plants: Volks wagen’s in Bratislava, PSA Peugeot Citroën’s in

Bratilava panorama with village Devín


Slovakia – The Little Big Country

Trnava and Kia Motors’ Žilina Plant. From electrical engineering companies, Sony has a factory in Nitra for LCD TVs, while Samsung manufactures computer moni-tors and television sets in Galanta.

Ports and Transport Bratislava’s geographical position in Cen-tral Europe has long made Bratislava a crossroads for international trade traf-fic. Various ancient trade routes, such as the Amber Road and the Danube water-way, have crossed territory of present-day Bratislava. Today, Bratislava is the road, railway, waterway and airway hub. Brati-slava’s M. R. Štefánik Airport is the main international airport in Slovakia. It is located 9 kilometres northeast of the city centre. It serves civil and governmental, scheduled and unscheduled domestic and

international flights. The current runways support the landing of all common types

of aircraft currently used. The airport has enjoyed rapidly growing passenger traffic in recent years.

The Port of Bratislava is one of the two international river ports in Slovakia. The port connects Bratislava to international boat traffic, especially the interconnection from the North Sea to the Black Sea via the Rhine-Main-Danube Canal. Addition-ally, tourist lines operate from Bratislava’s passenger port, including routes to Devín and Vienna.

ALFF (ZLZ) SRThe Association of Logistics and Freight Forwarding of the Slovak Republic was founded in the year 1992. With 98 regular and 34 subsidiary members, it currently represents the largest number of for-warders in Slovakia. The Association is a member of CLECAT, FIATA and ICC NC SR. It cooperates with the Faculty of Operation and Economics of Transport and Communications of the University of Zilina in providing education to the university students.

Slovak Republic – Facts & FiguresOfficial name Slovak Republic

Abbreviation SR

Capital city Bratislava (pop. 452,608)

Form of government Parliamentary democracy

Area 49,035 km2 (18,932 sq.mi)

Population 5,420,763

Major language Slovak

Major religion Roman Catholic

Export partners Germany 22.3%, Czech Republic 14.9%, Poland 8.8%, Hungary 7.8%, Austria 7%, France 5.6%, Italy 4.9%, UK 4.1% (2012)

Import partners Germany 18.6%, Czech Republic 18%, Russia 9.9%, Austria 8%, Hungary 6.8%, Poland 6%, South Korea 4.1% (2012)

12

News

FIATA’s NextGen: Finished Product or Work in Progress?Zein Baluch attended a FIATA World

Congress for the first time in Istanbul held

in October last year. The Fiata Review asked

him to express his views from his unique

perspective. What follows is his own appraisal

of the event most of you have witnessed

in life size.

ZEIN WRITES: “Following my very first participation in the 2014 FIATA Congress, having been asked to express my impres-sions is indeed a great honor for me. The fact that a young professional like me was asked to write a review of the Congress shows that FIATA truly wants to continue growing and developing, and is also will-ing to remain open to input, suggestions and even criticism. As I said, I consider it a great honor, and a challenge.

What struck me most about FIATA and the Istanbul World Congress 2014 was the amount of technical, legal, commercial and organizational transfer of knowledge. Too much to absorb for a newcomer? Per-haps, I cannot vouch for others but it was certainly a lot to absorb for me.

The following are a couple of things that stood out to me. The networking amongst colleagues which I could see translates into business contacts that flourish and make companies thrive; up to date discus-sions on new laws and regulations in our industry provide a unique platform for professionals to exchange experiences and retain a wealth of precious information for their businesses.

The special focus on the host country was a real plus. I learned much about Turkey that I never would have if I had not attended the Congress. I am looking forward to Taipei for this same reason

now. And even Dublin makes me excited, although I must confess Dublin will not be such a discovery as the others. The FIATA unique feature of changing venue every year exposes new ideas and contacts and offers all associations the opportunity to portray and promote their country or territory to the others. An opportunity that is difficult to pass.

FIATA is an organization that is willing to adapt and change in the midst of so many challenges.

There is a willingness to welcome young professionals from across the globe un-paralleled in similar institutions. FIATA is a truly global organization that caters for all countries and territories on this logistic planet. This is really easier said than done. It has taken FIATA years if not generations to create and foster the regional representations in the Americas, Europe, Africa, the Middle East, and Asia-Pacific. FIATA’s board members represent each and every one of these regions, thus making it a marvelous kaleidoscope of the entire world’s logistic industry. I could go on and on describing the pros of the FIATA Congress and FIATA in general. However, I did observe some aspects which can be improved, for exam-ple, the format of the presentations can benefit from some streamlining. Power-Point needs to be used strategically and not obsessively. There is no point showing twenty page PowerPoints when half of the audience’s attention may be lost half way through it. Very few people can stay focused on the speaker while trying to read the long theory of slides he or she is showing on the screen. This makes the as-sociation look antiquated. Short and to the

point presentations are what people want, with room for questions and dialogue afterwards. Meaningful graphics, images, and videos should be expected and encour-aged. As a close associate commented: ‘why make a Power Point when you could make your point powerfully.’ Debate was an issue, because there was almost none of it where it could have been used constructively. FIATA needs to take advantage of having so many logistics professionals at one place at the same time, by throwing challenges for discussions. It would have been great to see the floor opened up and on fire in that area for more dialogue and real forums. Debates and exchange of ideas help to drive innovation. How can we begin to solve the problems we are facing in our industry if we never talk about them? Lectures and presenta-tions are great, but progress is achieved through dialogue and then action. I hope that FIATA will restructure the agenda for the Congress to ensure that dialogue is more prevalent.

Punctuality during the conference was a big challenge. Having grown up in the Middle East, I understand when events run 10 to 15 minutes behind schedule. Some individuals have a hard time with this, but I typically do not. However, during a conference proper timekeeping is essential. Please appoint time marshals and license to break the speeches if they become exorbitant.

The age range at the conference was 20 and up which is a remarkable result in an industry where ageing is perceptible. However, the activities, schedule, and ses-sions did not cater to young adults. FIATA needs to make it a point to keep the young


First-timer Zein Baluch in the company of Turgut Erkeskin, President of UTIKAD, Issa Baluch and Farid Saffarzadeh

FIATA’s NextGen: Finished Product or Work in Progress?

and upcoming talent in our association. If not, FIATA is giving up the chance to hear thoughts, ideas and feedback from the up-coming generation that are going to help drive our industry to the next level. In this regard I must do the honors to mention Fortunate’s performance at the RAME meeting, where she literally whisked her audience into outer space with her sugges-tive and powerful presentation.

Cost is a factor that may drive our youth away. I realize that I am in a privileged situation and my father covered my costs for the congress. That is not the case for everyone. Many people my age are not able to afford the attendance fees. I sincerely hope that FIATA forms a plan to make the congress more accessible for these younger professionals. It would be

a tragedy to see these young dedicated professionals having to stop from partici-pating due to the cost.

A lack of modernization is a drawback for young professionals. As I mentioned earlier, people want to see new graphics, exciting images, and captivating presenta-tions. For the younger generation, this is not a want but a need. This is the way they learn. Yes, textbooks and lecturers are still heavily used in academia. But more and more professors are unlocking the power of technology in the classroom every day. Why learn at the speed of sound when you could learn at the speed of light? The use of technology at the Congress should not be feared but rather embraced. Attending the FIATA World Congress was

a privilege and the opportunity of a life-time, but I surely intend to come again as an active participant. The individuals that I met at the conference have left a large impression on me. Whether it was attend-ing compelling sessions during the day, delectable meals, listening to professionals telling me their remarkable personal ca-reer stories, or having inspiring and mov-ing conversations with others in the hotel lobby restaurant, the 52nd FIATA World Congress has transformed my life. I hope that FIATA never views itself as a finished product, but rather as a work in progress, continually progressing to represent the moving interests and quests of the global logistics industry.

Thank you, FIATA, for this opportunity. Zein Baluch

14

News

A new set of guidelines dealing with the

packing of cargo transport units (CTUs) has

been issued under the auspices of The

International Maritime Organisation (IMO),

The International Labour Organisation (ILO)

and the United Nations Economic Commis-

sion for Europe (UNECE). The Multimodal

Transport Institute of FIATA was represented

at the drafting meetings held in Geneva.

MANY OF YOU may remember the TT Club video “Any Fool Can Stuff a Container” and are aware of the cata-strophic consequences of getting this particular discipline wrong so we urge all FIATA Associations to disseminate information to the forwarding industry regarding the CTU code.

We are grateful to solicitors Holman Fen-wick Willan for their permission to repro-duce this article which is one of the best summaries we have seen.

The 1997 IMO/ILO/UNECE “Guide-lines for packing of cargo transport units (CTUs)” (1997 Guidelines) are being re-placed by the new IMO/ILO/UNECE Code of Practice for the packing of CTUs (CTU Code), which is fairly comprehen-sive in nature. It imposes key common sense requirements upon many parties, including:

• Arrange for a safe working environment.

• Check that the CTU and any securing equipment are in sound condition.

• Select the most appropriate CTU type for the specific cargo.

• Pack dangerous goods near the doors of the CTU where possible.

• Do not concentrate heavy cargo over small areas of the floor.

• Do not use securing or protection equipment which is incompatible with the cargo.

• Affix required placards, marks and signs on the exterior of the CTU.

In order to counter an ‘out of sight, out of mind’ culture, the CTU Code sets out a clear chain of responsibility. This chain attaches specific obligations to the various parties in the maritime supply chain: con-signor, packer, shipper, road haulier, rail haulier and consignee. This is a positive change, as where the cause of the cargo damage can be identified then authorities will more easily be able to impose liabil-ity on a particular party. It is hoped that the increased likelihood of accountability

will promote higher standards of CTU transportation.

The CTU Code will be one step behind a mandatory UN instrument. It has been approved by the United Nations Eco-nomic Commission for Europe (UNECE) and received approval by the International Maritime Organisation’s (IMO) Maritime Safety Committee earlier this year. The In-ternational Labour Organisation (ILO) ap-proved the CTU Code earlier this month and accordingly the CTU Code will be officially published and replace the 1997 Guidelines. Critics however argue that as a code of practice it has little weight within the industry.

Nevertheless, it is hoped that legislators around the world will acknowledge the benefits of the CTU Code and enshrine its recommendations into domestic law, or at least use the CTU Code as evidence of best practice when CTU claims arrive at court. Bill Brassington, a consultant to the CTU Code notes that, “Codes of practice are intended to assist governments and em-ployers in drawing up regulations and can be used as models for national legislation.”

The CTU Code will enhance the safety not only of employees who come into direct contact with CTU but also the safety of

The new CTU Code

FIATA REVIEWNext Edition May 2015

Advertising Deadline: 10 April 2015

Reach the freight forwarders’ management executives


the cargo that is transported within them. If weight is distributed more evenly and cargo is properly secured in the CTU then it is likely that vehicle rollovers and consequential injuries and fatalities will fall drastically and reduce the fre-quent occurrence of damage to cargo. The need to properly pack a CTU cannot be stressed enough and failure to distribute and secure cargo appropriately will more than likely result in loss or damage to the cargo.

The economic consequences of this are not insignificant and shippers thus have a vested interest in the correct packing of their cargo to minimise losses and

claims they make per shipment. Efforts to improve safety standards without legal intervention have failed to make much progress thus far. It is for this reason that the movement towards the introduction of the CTU Code to promote safer packing of CTUs is to be welcomed. This measure should promote more responsible oper-ating and facilitate safer environments throughout the maritime supply chain. This will have the positive effect of en-hancing the economic efficiency of trade as the percentage of cargo that is damaged should drop significantly.

All concerned with the transportation of CTUs should welcome the introduction

of the CTU Code as it signals a change in the way those within the maritime supply chain operate. This is arguably a change that is long overdue and should bring with it visible and extensive benefits.

The CTU code is currently available on the United Nations Economic Commis-sion for Europe (“UNECE”) website in English: www.unece.org/fileadmin/DAM/trans/doc/2014/itc/id_07_CTU_Code_January_2014.pdf

FIATA is grateful to Matthew Gore of Holman Fenwick Willan

for permission to reproduce this article.

The New CTU code – Adhering to best practices decreases the risk of incident

SWISSWORLDCARGO.COM

I am Peace of Mind

Mambio RavezziSales Manager Cargo Italy

Of course, Swiss WorldCargo is a hallmark for quality, precision and a dedicated global team. But all you really need to know is this: the moment you hand over your cargo to us, you can stop worrying. This is the true meaning of: We care for your cargo.

130111_SWC_Mambio_EN_210x297.indd 1 11.01.13 18:09

News


Meet Chelliah KrishnanVice President of FIATA

Born in 1949 in Penang, Malaysia Krishnan

graduated from ABE/UK in Business Studies.

He began his career in 1969 in a junior posi-

tion at Harper Gilfillan, an English company

involved in trading consumer products,

where he was actively involved in operations

and gradually climbed the ladder to be a

manager.

In 1999, he decided to join a local company,

TransAirMarine, where he was able to share

his knowledge and be actively involved in

both Air and Ocean Freight Management

with global partners. He is now a senior

manager based in Kuala Lumpur managing

Global Accounts.

If you had not joined the transportation business, which profession would you have chosen?I always wanted to be a criminal lawyer as I lived near the court house and would listen to hearings and lawyers putting forward their defences citing various laws. This made me dream to become one too.

So what fascinates you about the freight forwarding industry?This industry is so vast in its scope of services. We learn and cope with customer expectations and deadlines especially in project management and communication with global partners around the clock. This gives me the satisfaction of fulfilling my customers’ deadlines.

And what was the motivation to accept your post with FIATA?Since I was actively involved in the local, national, and regional logistics associa-tions it was my desire to serve the pinnacle. There are numerous challenges in the Asia Pacific Region while the gap widens be-tween air and ocean forwarders. I want to see the gap diminished as unity is strength and FIATA needs this vision to lead its members to be their global mouthpiece and set policies affecting the trade.

How do you view the state of the industry today?The industry today is very competitive and challenging. It is a nightmare when customers want forwarders to control their supply chains at a competitive cost and lock that cost in for a few years but mid-dlemen are not prepared to do the same.

What changes would you like to see?The logistics sector has not gained much recognition from their respective gov-ernments especially to regulate the cost

elements of carriers. Granting them ex-emptions from the Anti-Competition Act is a mockery.

Looking at the future, what advice would you give a young person joining the industry today?Giving career talks in schools and polytech-nics to young aspirants with this starting pitch “a Forwarder is an Architect of Trans-port” and all the scopes of services which can also lead them to be an entrepreneur.

Generally speaking, what, in your opinion, has been mankind’s best in-vention (and why)?The evolution of express courier services in response to inefficient postal services which lead to the development of freight management to the point where multina-tional companies own aircraft and control at least 60% of the international market share.

Which famous person would you like to have met?Martin Luther King Jr. – “If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do you have to keep moving forward.”

Do you have any unfulfilled wishes (professional or personal)?I would like to see FIATA and IATA thinking outside the box and joining forces to be relevant to the pressing needs of trade especially in developing countries.

What plans do you have for the future or for your retirement?I have no immediate plans to retire, but when the time comes, I will be actively involved in training and educating to give back to the trade what I gained from it, in the most difficult circumstances.

FIATA REVIEW NO. 106, MARCH 201518

Here & There

FIATA congratulates three well known delegates on their birthdays. We wish them many more years of good health and happiness.

Happy Birthday!

Mr Han Van Os (Netherlands) 70 on 3 January 2015Mr Han Van Os has been a FIATA Dele-gate since 1986, was a Vice President from 1999—2005, and has been an Honorary Member of FIATA since 2007.

Mr Sarosh J. Nagarvala (India) 75 on 13 January 2015Mr Nagarvala has been a FIATA Dele-gate since 1987, was a Vice President from 1989—1990 and again in 1994, and Treasurer from 1994—2005. He was Senior Vice President from 2009—2011, and has been an Honorary Board Member of FIATA since 2007.

Mr Tullio Albarelli (Italy) 85 on 19 January 2015Mr Albarelli has been a FIATA Delegate since 1981, was the Secretary General from 1989—1993, and has been an Hon-orary Board Member of FIATA since 1993.

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