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ANNUAL REPORT

2016/2017

Doc. 30/299

Glattbrugg, August 31st 2017

Published by FIATA

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CONTENTS

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

THE STRUCTURE OF FIATA .......................................................................................................................................... 3

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

DIRECTOR GENERAL’S REPORT ................................................................................................................................ 7

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

CUSTOMS AFFAIRS INSTITUTE (CAI) ...................................................................................................................... 10

MULTIMODAL TRANSPORT INSTITUTE (MTI) .................................................................................................... 12

ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA) ........................................................................................ 16

ADVISORY BODY INFORMATION TECHNOLOGY (ABIT) ................................................................................. 18

ADVISORY BODY LEGAL MATTERS (ABLM) ........................................................................................................ 20

ADVISORY BODY SAFETY AND SECURITY (ABSS) .............................................................................................. 22

ADVISORY BODY OF VOCATIONAL TRAINING (ABVT) .................................................................................... 24

FIATA FOUNDATION OF VOCATIONAL TRAINING (FFVT) .............................................................................. 27

FIATA LOGISTICS ACADEMY (FLA) ......................................................................................................................... 27

WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL) ............................................................................. 29

FIATA WORLD CONGRESS COMMITTEE ............................................................................................................... 30

REGION AFRICA MIDDLE EAST (RAME) ................................................................................................................ 33

REGION EUROPE (REU) .............................................................................................................................................. 35

REGION AMERICAS NORTH AND SOUTH (RAMNS) .......................................................................................... 37

REGION ASIA PACIFIC (RAP) .................................................................................................................................... 39

Registered Office:

FIATA International Federation of Freight

Forwarders Associations

Schaffhauserstrasse 104

P.O. Box 364

CH- 8152 Glattbrugg

Switzerland

Phone: +41 (0)43 211 65 00

Fax: +41 (0)43 211 65 65

E-mail: info@fiata.com

Website: www.fiata.com

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THE STRUCTURE OF FIATA

Presidency President of FIATA Huxiang Zhao China Immediate Past President Francesco S. Parisi Italy Secretary General Robert A. Voltmann United States Treasurer Jean-Claude Delen Belgium Senior Vice Presidents Babar Badat Pakistan Basil PIetersen South Africa Ivan Petrov Bulgaria

Extended Board Vice Presidents Marc Bibeau Canada Krishnan Chelliah Malaysia Turgut Erkeskin Turkey Paul Golland Australia Robert Kingsford Kutin Ghana Stephen Parker United Kingdom David Phillips United Arab Emirates Jens Roemer Belgium Antonella Straulino Italy Jeffrey Wannamaker United States Keshav Tanna India Peter Yang Chinese Taipei Chairperson MTI Robert Keen United Kingdom Chairperson CAI Stephen J. Morris Australia Chairperson AFI Rodolfo J.C. Sagel Argentina Chairperson ABLM Richard D. Gluck United States Chairperson ABVT Thomas Sim Singapore Chairperson ABSS David Fielder Denmark Chairperson ABIA Babar Badat Pakistan Chairperson ABIT Anne Sandretto France Chairperson FLA Issa Baluch France Chairperson FWC Stanley Lim Singapore Chairperson RAME Basil Pietersen South Africa Chairperson RAMNS Jorge Heinermann Uruguay Chairperson RAP Chris Kanter Indonesia Chairperson REU Ivan Petrov Bulgaria

Other bodies Chairman WG SL Heiner Rogge Germany President, FIATA Foundation Aldo da Ros Italy Secretary, FIATA Foundation Barbara Wieser Switzerland

Secretariat Director-General Marco Leonardo Sorgetti Deputy Director-General Hans Guenther Kersten Manager AFI, CAI, RAP Daniel Bloch Administration Gwenda Boschetti Manager ABIA, ABIT, ABSS, RAME Bassil Eid Congress Coordinator Elena Primitzhofer Manager ABVT, RAMNS, FLA, WG SL Verena Schaer Administration Araseli Torres Head of Administration Barbara Wieser Manager MTI, REU, ABLM René Zimmermann

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FIATA PRESIDENT’S REPORT This is my second annual report and, as it happens, my last one as your President. FIATA has the healthy habit of renewing its own ranks periodically and I required to step down in October. Let me add that in 2016 renewal in the Board has also been firmly adopted: starting from 2019 a change in the Statutes approved in 2016 will limit the overall presence in any single positions in the Extended Board to ten years, the same would apply to all the members of the FIATA Presidency. This is a symptom of vitality, which at the same time responds to the intention to preserve accumulated knowledge. It must also be considered that the ten-year time investment to be elected as FIATA President makes it also practical for an active freight forwarder. This is a change that has been adopted since we published our last report and I consider it of great importance for FIATA. In terms of constituency our association members are substantially unchanged in numbers, with a certain increase in individual members. The number of applications we receive is impressive and we struggle to keep pace with demand. One could argue that we could make additional investments and increase the number of individual members more rapidly, but my impression is that a small queue at the entrance is testimony of how interesting the show is. This also allows for safe management from the point of view of balancing revenues and expenditure, on which side I wish to recognise the Treasurer’s achievements: we manage a strong constituency with a small secretariat the efficiency and effectiveness of which allows FIATA to maintain very competitive membership fees. In terms of the socio-economic landscape, we have found ourselves confronted with big political changes this year. Clear and unmistakable statements in favour of free trade, which FIATA punctually made in February1, were acclaimed by the Press and took the front line in many publications. Whilst winds have uncharted directions in these days, it has to be noted that business is starting to grow again, at least in quite a number of countries and territories

and this brings new hope for the future. Hope that we have tried to reflect in another important public statement2 on the evolving role of freight forwarders in the international trade, which was published in conjunction with UNECE’s Inland Transport Committee’s celebrations. Looking inwards, we are working on the review of our policy documentation, such as to represent our modus operandi in a fully transparent manner, which is mere good practice, but it is also in line with the demanding standards

of our advocacy work. I have best hopes that this work that the Secretary General has steered will be ready by the next General Meeting for members’ approval. This monumental work

1 http://fiata.com/fileadmin/user_upload/The__Building_Blocks__of_Free_Trade.pdf 2 http://fiata.com/fileadmin/user_upload/Changing_Logistics_-_Freight_Forwarders_Evolve_with_Trade.pdf

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which has been assembled by the Secretariat will be guiding us in the complex portfolios that FIATA is handling and assist us in the relationship between the Board and the Secretariat, as well as with regard to third parties and suppliers. Another big chapter which is under review is the Congress protocol. Again this review was kick-started by the Secretary General and the Chair of the Congress Committee, in whose working hands, tapping on his steering and experience, the job is being conducted. FIATA is looking at ways to improve the delegates’ experience and increasing attendance. Kuala Lumpur would probably be the last congress to be entirely organised in the current format. In training and education, we are harbouring our greatest hopes for future success and the three bodies dealing with this portfolio (ABVT, FLA and the FIATA Foundation) are busy with a proactive harvest of ideas. These new suggestions should come to fruit in 2018 with an entirely new proposal for members’ consideration. FIATA and IATA signed their agreement for the IATA-FIATA Air Cargo Program (IFACP) last year with a certain degree of high expectations; they are now moving their Cooperation Agreement into implementation: the required local negotiations have started in Canada. Let me wish our Canadian colleagues all the best in their endeavour. Numbers in airfreight business seem to indicate strong growth now and our members have reasons to rejoice that investments have been made in due time in preparation of this.

FIATA’s public presence is not limited to these high

level negotiations.

Countless have been the

opportunities to float the FIATA flag this year, but let me mention in particular one concerning my own role. I have been invited to

speak at United Nations’ ECOSOC in the springtime and my impression was that FIATA is growing in consideration at this level of contacts. There is movement in trade affairs, the WTO TFA has entered into force and we are in the implementing phase. All of you may remember how strong our support in favour of the TFA has been, and this without forgetting the United Nations’ Sustainable Development Goal, where we also produced considerable efforts. So FIATA backed two of the most significant agreements reached at global level in recent years.

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Today eCommerce is a buzz-word more than any other one and again FIATA has been on the front line this side of events by publishing a strong position paper in April3. Together with Safety and Security this is an aspect where we have worked with open eyes, and allow me to say, with an open mind. This is the future of our industry and we must be ready, or become ready, for the big changes ahead, both CAI and ABIT have been alert on this and we should be grateful to the delegates and Chairs of these bodies for the excellent work done. Speaking of the industry as it is today, nobody can ignore that the evolving standards FIATA has produced – and is studying to update – make the individual forwarder’s life easier in day to day business. FIATA standard tend to coincide with good business practice. No wonder the AB on Information Technology is working day and night to bring the standards of the future to fruition, which will be leaving a mark at the next World Congress in Kuala Lumpur. Last year I made a long list of thanks, only to realise now that you always forget somebody or something that is worthy of your attention when you do so. So this time let me limit myself to expressing the Presidency’s and the Board’s thanks to you all, dear members and delegates, for your contribution to FIATA and to our sector in general, for underlining our successes and making our experience here in FIATA so incomparable. A special mention to thank our retiring Director General for his significant contributions in these rampant six years and our best wishes to the incoming DG, who is working with him in perfect harmony. Moving to the next, successful step, your devoted Huxiang Zhao President of FIATA

3http://fiata.com/fileadmin/user_upload/documents/Position_Papers/Position_Paper_-_Ecommerce_Impact_International_Trade_Logistics.docx.pdf

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DIRECTOR GENERAL’S REPORT

One of the privileges of my positon as Director is that I have the possibility to read FIATA literature before it becomes public. I can therefore pick up the thread that President Zhao left in these pages and apply it to my own section. Re-reading my last year’s remarks makes me wonder on how we are actually making progress, sometimes one is led to believe it happens by magic. I was writing “FIATA has become more influential and more consistent in its approach both with regard to advocacy as well as to membership. We have done this without increasing costs and without rising our fees to members. This is a remarkable result that has been achieved thanks to the flexibility of our collaborators and the generous contribution in kind provided by the many qualified volunteers.” This year I could write more or less the same and when I look at FIATA’s condition now, I feel a sense of having done my duty, as I leave FIATA in good shape, both financially and operationally. This is surely not only of my own making, I can only thank all of those who have worked with me in these six years for having made this result possible. Many of you have been helping me, firstly and obviously our staff, who never let me down, sometimes against all odds, and then all the volunteers who so selflessly cooperate with FIATA, culminating with the personalities of the Extended Board and the Presidency, the two bodies with which the Director has most to work with. FIATA has indeed “become more flexible and more open to the world, less dependent on the level of the waters running in the Glatt (the river running by the office)”, so we have all together accomplished much of the work that was identified at the beginning of 2015 in the Future of FIATA exercise. There is still lot to do in the future, as logistics evolves with trade, and our members, which are both our owners and our customers, dictate the new challenging agendas. This is why my successor has been chosen among a wide selection of top-line executives. Hans Guenther is a worthy a man with high qualifications (a German “rechtsanwalt” with an MBA) and I am trying to pass the baton to him in the smoothest possible manner. He started working with me in June, the time when the photo below was taken, and he shall take this position starting from September 2017. So what have we done in the past 12 months? I was told by some that the Association Members’ Forum during the HQ this year was the best ever and I have to say that was also my impression. I also have to say that this was actually the one where I have done the least, I almost limited myself to letting it flow. So rich was the harvest of ideas and suggestions that we are still busy with these results. These are ideas that will shape the future of our association in the years to come offering a backbone of resources to our members. As our President already remarked the Membership base is growing without impressive increase, but regularly; one could argue whether regular and moderate growth is a remarkable result, but many compare our safe and secure growth with the meandering ways of others and find reasons to be happy not to be engaged in a one step forward and two steps back procession. Last year I was saying “FIATA is truly global, in a way that I have seldom seen anywhere else in my now relatively long experience.” When I explain to third parties that we have over 20 nationalities in the Extended Board and Presidency. FIATA’s President is from China, the Secretary General form the USA, the Immediate past President from Italy, the Treasurer from

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Belgium and three SVP’s from Pakistan, Bulgaria and South Africa; at this point many of my colleagues from other organisations show their bewilderment. That is what means “truly global” in FIATA. We live and work in global, balanced environment which should be an example for many other institutions. Today FIATA services run in a fairly smooth manner and we are just getting in gear to be able to offer more and more varied services by ramping up our IT and management system. We are also addressing security issues with the payments and website environments, as these are more and more regularly exposed to risks. Going back in time my first direct contact with FIATA was in 1992 in Florence, when I was heading the delegation from APSACI in Turin, my hometown. There followed a number of years of participation in FIATA’s activities as Fedespedi’s delegate and eventually as CLECAT’s director. So I am stepping down twenty-five years after stepping into FIATA for the first time. Working as an active freight forwarder for thirty years and then representing the interests of our sector for another fifteen years has been the mission of my life up to this point. I thank all those who have parted with their knowledge, experience, advice and even friendship in these long years. I hope I have contributed to this endeavour with merit and I am leaving as a happy person who has always been able to decently and timely take his leave. If you need me in future I shall always answer the call, but this is my last report as director and it is very well that this relationship ends well. Marco Leonardo SORGETTI Director-General of FIATA

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AIRFREIGHT INSTITUTE (AFI)

As to the state of the industry, I am leaving the numbers for the industry press economist: they provide more accurate and consistent statistics. However, I am very happy to note impressive growing trends of this year and I was reading that the global Sea and Air cargo markets shall increase more than 4% year on year by 2020. I am more than confident that our airfreight forwarding industry will be, as this has been always the case, finding ways to cope with the challenges of the future. It has been my privilege to have chaired the Airfreight Institute for nearly 12 years now and this is my last annual report. This has only been possible due to the full support I have received from all of you in the industry. There are many names to thank and many hands to shake in this long journey, none of the least is family. The cooperation I received from them for the extensive travels and time away from my own office is unrepayable. The unwavering support throughout the Cargo Agency Modernisation Program (CAMP) days from all those involved in trying to make it a reality has been greatly appreciated. Now after years of hard work, as they say, there is always a silver lining on every cloud, we have the IATA FIATA Air Cargo Program (IFACP) which has come to fruition. We have already held two successful IATA FIATA Governance Board (IFGB) Meetings, and the Canadian Pilot is, after some initial legal hiccups, still ahead of us and will be launched shortly. The governance body is jointly managed by forwarders and airlines; this reflects today’s market conditions and addresses properly the Principal-to-Principal relationship between Freight Forwarders and Airlines. The programme has indeed strong potential to face industry challenges and to achieve common industry goals. In this very long journey it was my privilege to work with my friends Bill Gottlieb, John O’Connell, Sarosh Nagarvala, Herman Donker. Keshav Tanna and all others of the entire AFI team, be it for EACP, CAMP, IFACP, IFCC Meetings etc. I relied on the assistance of our AFI Manager Daniel Bloch with his support, backup, care and guidance, which was of great help. I am also very grateful to FIATA’s Director General, Marco Sorgetti for his support I have received during the past six years. He retires this September and I wish him all the best. We welcomed formally at the recent HQ together with the IFGB members a new kid on the block, as they say, Mrs Joana Nunes Coelho, who acts as the Governance Manager for the IFACP. We are very happy to have her with us, excellently handling the duties in this new endeavour. The Presidency itself has supported AFI at all times. Mr Jean-Claude Delen, in recent years as Rapporteur of AFI to the Presidency together with ABLM Chair Mr Richard Gluck assisted to steer the boat into the right direction. I thank them both. The reason why I tell you all this, is because all good things must come to an end and so must this one. It has been a long 12 years and I have now the pleasure to hand over the reins of AFI to some younger blood. I am glad that Keshav Tanna, my deputy and Vice Chairman

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has agreed to take on this challenge. I had mentioned his candidature at the last Extended Board Meeting in Zurich to the Presidency and am glad that it was unanimously endorsed. I am sure this is a good choice. AFI has always been close to my heart and I am glad that I have been invited by Keshav to stay on the IFGB Board, which I have humbly accepted. Therefore, you have not gotten rid of me, just yet. Once again, a big Thank you to all of you. Rodolfo J. C. Sagel Chairman, Airfreight Institute

CUSTOMS AFFAIRS INSTITUTE (CAI)

So where to the world of service providers to international trade logistics and supply chain

management in 2017? Is it the more things change, the more they stay (or have remained) the same?

As commented to delegates in my Report in 2016, economies continue to struggle to break the cycle of trade downturn however, in 2017, we have seen some shifts in an upturn in world trade. International air freight has continued to improve albeit from what could be regarded as a low base noting the specific growth up until 2008. Other cross-border trade activity has also lifted. However, the position adopted by specific economies in relation to non-tariff barriers as well as ongoing anti-dumping activities signifies that economies are prepared to ensure that their respective domestic manufacturers receive appropriate, or in some cases inappropriate, protection from specific competition in international trade. Protectionist trends have continued to emerge. Long-term sustainability of economies can only be driven on the back of the expanded international trade. As reported in the 2016 Review, the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA) is a pivotal part of the agenda for reform for the future, and in early 2017, the requisite number of signatories were achieved in bringing into being the TFA Convention which will become one of the key drivers in trade facilitation for the future. In relation to the TFA, since the WTO meeting in December 2013, FIATA has taken a high level of interest in the development of the TFA and in particular, the opportunities for FIATA national associations to participate actively in TFA outcomes. FIATA has provided public comment on its position on the TFA as well as ongoing information to national associations in relation to private sector opportunities and participation in trade facilitation arrangements. These issues were highlighted to delegates at the FIATA World Congress in Dublin in 2016 in the Customs Affairs Institute plenary, as well as again to delegates at the FIATA Headquarters meetings in March 2017.

... the three (3) keywords of

that article to the effect

that NCTF were charged

with the responsibility to

facilitate, coordinate

and implement the

provisions of the TFA.

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As to the TFA initiatives, FIATA attended the first International Forum (the Forum) for National Committees on Trade Facilitation (NCTF), hosted by the United Nations Conference on Trade and Development, Geneva, 27th of January 2017. This Forum was attended by over 280 delegates, and in its presentation to the Forum, FIATA referenced from Article 23.2 of the TFA the three (3) keywords of that Article to the effect that NCTF’s were charged with the responsibility to facilitate, coordinate and implement the provisions of the TFA. FIATA also noted that, while the TFA was silent on what the NCTF should look like, there was a significant body of work that referenced best practice, benchmarks and standards in relation to NCTF construction and operation. FIATA sees that it is imperative members actively participate in NCTF arrangements in their respective economies and where such participation may not be appropriately driven by government or regulators, then it is the trade's responsibility to address that deficiency. While addressing trade facilitation in 2017, the elephant in the room in trade has finally been recognised by the WCO and other international governmental and non-governmental bodies that being the impact of changed practices and business models in relation to eCommerce. While eCommerce may have a variety of definitional aspects, governments and in particular regulators, have now seen fit to examine the changed circumstances in the availability internationally to a wider range of goods which are, in the main, enhanced by internet connectivity. Government and regulators in the first instance, perceived that the process of online purchasing, in an international context, would be driven by business to business (B2B). The reality is that the business to consumer (B2C) now drives the eCommerce revolution. Significant numbers of consignments are now carried across borders by postal authorities and international express carriers and Customs administrations are challenged, inter alia, by an ever-increasing level of consignments as to:

fiscal requirements (Customs duty and other indirect tax requirements (VAT/GST)),

import prohibitions and restrictions,

intellectual property right violations and,

biosecurity and transport security issues. Regulators struggle to meet the challenge of facilitated border clearance of consignments where a minimum of information is available to support the process. Governments at the same time are challenged by domestic disruptors as to revenue leakage, employment dislocation and business continuity. To support Customs administrations in this challenge, the WCO assembled a Working Group on eCommerce with the emphasis to address four (4) key issues:

Trade facilitation and simplification of procedures

Safety and security

Revenue collection

Measurement and analysis Representatives of both the public and private sector have participated in the Working Group meetings in September 2016 and January 2017 where at both over 100 delegates from Customs administrations and the private sector (including FIATA) participated. There has been significant sharing of information and the challenge of working in a changed economic environment where revenue has become a focus for intervention in cross-border transactions. The revenue leakage issue has been highlighted by Customs administrations looking at specific business models for revenue collection, either by way of a vendor, carrier

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or other intermediaries, becoming collection entities, noting in particular the work that has been carried out by Customs administrations in the Netherlands and Australia. What is clear is that there is no universal model and each economy must determine, on its own needs, the merits for the introduction, or otherwise, of any process to meet the challenge of eCommerce. Suffice to say that FIATA members will be impacted one way or another and there is, in this discussion, a key role for FIATA members through their respective economies’ NCTF. Pivotal in the outcome of any work being undertaken by government or Customs administration on eCommerce is the safety and security of air cargo. The work being undertaken by the International Civil Aviation Organisation and the WCO through its Joint Working Group on Advanced Cargo Information, will support the early information exchange to regulators so that they can appropriately risk assess eCommerce. The work of the United States Department of Homeland Security, through the work of the United States Customs and Border Protection (USCBP), and its trial of the Air Cargo Advance Screening (ACAS), which has moved from a pilot to a regulated environment in 2017 will be an interesting adjunct to air cargo report. This concept is being mirrored by the Canadian Pre-Load Air Cargo Targeting (PACT) and the European Pre-Loading Consignment Information for Secure Entry (PRECISE). It is extremely important that FIATA members are aware of these challenges for the future, where changes in business models will be needed to respond to regulator’s needs on advanced information as this will not only meet advanced cargo report requirements, but enable earlier air cargo clearance. This will need investment in communication and information technology as well as changes to traditional international air freight forwarding process to maximise business opportunities. This will be my last Report to you as the CAI Chairperson as I transition from the role and hand CAI to Vice-Chair Steve Parker. In leaving the role I would like to thank the outgoing Director-General Marco Sorgetti for his support and guidance on key FIATA policy issues and also to the Presidency for its support and direction on many international trade matters. My special thanks to Daniel Bloch, as the FIATA Manager responsible for the secretarial and member interface on CAI issues, for his support and patience with me. Finally, to you, the FIATA members, for allowing me the opportunity to represent you across a variety of forums – my thanks. It has been a privilege and pleasure to represent you, and FIATA. Thank you for that honour. Stephen J. Morris Chairman, Customs Affairs Institute

MULTIMODAL TRANSPORT INSTITUTE (MTI)

The FIATA Multimodal Transport Institute (MTI) consists of three working groups that join together each year at the Headquarters meeting in Zurich and at the World Congress. I have

There is, in this discussion,

therefore a place for FIATA

members through their respective

economy's NCTF.

This will need investment in

communication and information

technology as well as changes to

traditional international air

freight forwarding process to

maximise business opportunities.

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been privileged to be Chairperson of the MTI for the past four years and my role is supported by three excellent Chairs of the Road, Rail and Sea Working Groups. Year on year, progress on some topics seems slow with constant inclusion on meeting agenda while other subjects can be more dynamic. Our MTI meeting in Dublin last October was the best under my Chairpersonship and could have been extended if time had allowed. The quality of presentations and reports was excellent and the event was a great showcase for the work that we do. I am grateful to the Chairs for their comprehensive reports and also to the speakers that entertained the audience. Rail The growth in the rail sector has been truly remarkable and this mode of transport is stirring the interest of all sectors of logistics. FIATA is fortunate to have Dr Ivan Petrov as Chair of the Rail Working Group. FIATA has participated in the 3rd Meeting of the International Rail Transport Committee (CIT), Multimodality Committee. Various topics of Multimodality have been discussed. The meeting compared the legal regimes (CMR-CIM-SMGS) in collaboration with the International Road Union (IRU) and the results of the Comparative Table were presented to the meeting. The CIT is currently preparing the legal and functional specifications of the CIM electronic consignment note and the CUV electronic wagon note at sector level based on the principle of functional equivalence. The CIT is also actively supporting Rail Data and the International Union of Railways (UIC) in the work involved in finalising the technical specifications required for the e-Rail Freight project. FIATA also attended the UNECE - SC.2 Session on Rail where various rail (freight and passenger) items were discussed. Good practice on Public-Private Partnerships (PPP), implementation in railway infrastructure development as well as on the development of standards while implementing PPP projects are taking place. The working party adopted the draft resolution on the Unified Railway Law as well as approved the new terms of reference (for the group of experts towards Unified Railway Law). Turning to the EU, the Commission has launched a consultation process in the framework of the evaluation of the Rail Freight Corridor Regulation (Regulation (EU) 913/2010), including an open public consultation. After analysis of the numerous contributions, the Commission has established a list which gathers points which could be considered in the case of a revision of the regulation. On 12 and 13 May 2016, the second meeting of the enlarged FIATA/UIC Railway Contact Group was convened in Shenzhen. The meeting gathered more than ninety representatives from more than twenty countries and regions, including Europe, Central Asia, South-east Asia, South Asia, the Chinese mainland and Hong Kong. The Organisation for Cooperation of Railways (OSJD) and International Federation of Freight Forwarders Associations (FIATA) have signed a memorandum of cooperation.

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The memorandum of cooperation was signed by the FIATA President, Mr Huxiang Zhao and by Mr Attila Kiss from OSJD during the FIATA World Congress in Dublin, Ireland. Road The Working Group Road Chair is Mr Tomas Suhanyi of Slovakia who took the role following the World Congress in Chinese Taipei, and has capably steered the group since his appointment. In June 2016, the European Commission took legal action against the systematic application of the French and German minimum wage legislation to the transport sector, but the EC has not yet proposed specific rules for transport on posting of workers. The Working Group felt that uncoordinated national initiatives to protect workers may have an adverse effect on the internal market and are in fact protectionist measures. Cargo crime has reached a three-year high, according to the latest reports by the Transported Asset Protection Association (TAPA) especially in Europe, the Middle East and Africa regions. The number of incidents reported rose 115% year-on-year, to 444 across 19 countries, for the first quarter. Of the thefts, 56% were from trucks stopped at motorway service stations, lay-bys or industrial estates. TAPA noted that a lack of secure parking locations in Europe was evident, with losses from unsecure parking locations accounting for 55% of the thefts. While it is not clear whether the rise is due to better reporting or more crime, there does appear to be an increasing number of thefts, with a wide variety of goods targeted.

The situation in Russia regarding the TIR Carnet is getting back to normal. More than 60 border crossing points are open to use TIR, but the situation is not the same as it was before the start of the crisis. The People’s Republic of China has become the 70th country to ratify the United Nation’s TIR Convention, the global standard for international freight Customs transit. China’s ratification is an important step in improving land and multimodal transport between Asia and Europe,

and a sign of the country’s steady integration into global transport and trade norms. The TIR System should underpin China’s Belt and Road Initiative which aims to boost trade, development and cooperation along ancient Silk Road routes. This is an important step in harmonising standards and boosting transport, trade and development across the Eurasian landmass. A joint UNECE and IRU pilot project has been working on realising a paperless TIR procedure between two pilot countries which would constitute a first step towards the implementation of a full-fledged eTIR System. The first phase of this pilot project has been successfully

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completed after six real life eTIR test operations have successfully taken place between Iran and Turkey, involving four Customs offices. Maritime Transport Finally, we turn to the Working Group Sea Transport which has Jens Roemer as Chair. The Federal Maritime Commission (FMC) discussed a proposed rule that the Commission may act upon in the near future which would eliminate or reduce the requirements for ocean carriers to report amendments to service contracts. An Executive Order by President Obama, which requested the review of rules across all agencies to enhance efficiency and effectiveness, generated a proposed rulemaking by the FMC to simplify the amendment filing process for service contracts between ocean carriers and shippers. Industry groups generally supported the change, noting that it would allow more flexibility and more efficiency in the supply chain. On 1st of July 2016, the SOLAS amendment became law and it is illegal for shipping lines to ship a container without a valid VGM. As expected, rules and legal enforcement are varying among countries, ocean carriers and marine terminals. There are some issues that are specifically national, but overall the VGM has become a common procedure and document in global trade. On 31st of August 2016, Hanjin filed for receivership. The working group circulated a document in early September suggesting actions to deal with the various problems that were likely to arise. The Working Group raised concerns that through the alliance mechanism and slot charter agreements shipments travelling on non-Hanjin Bills of Lading were affected. The Working Group continues to discuss possible good practice routines and recommendations in dealing with various issues related to shipping lines, for example demurrage and detention charges. This item has not been concluded and will be discussed in further Working Group meetings. The Indian Government announced an amendment to its service tax rules. As a consequence, shipping lines announced collection of the service tax at origin for freight prepaid Bills of Lading. The Working Group was of the opinion that this was unacceptable for various reasons and issued a press release protesting against these practices. Robert Keen Chairman, Multimodal Transport Institute

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ADVISORY BODY INTERNATIONAL AFFAIRS (ABIA)

The Advisory Body International Affairs (ABIA) celebrates its third year after being founded. In this short time span, the body has worked to enhance FIATA’s visibility and presence with several relevant international and multilateral organisations highlighting the importance of “Logistics & Connectivity” in achieving economic and sustainable growth on a global scale. ABIA has continued its work with the UN receiving invitations to participate in a number of high level meetings from the UN High Level Political Forum to ECOSOC Partnership Forum in our efforts to highlight the important role logistics connectivity will play in achieving the 17 Sustainable Development Goals and 169 targets. In addition to our participation in key meetings, FIATA released two key positions this year. The first paper, Freight Forwarders, Logistics and the Building Blocks of Free Trade, outlines the importance of open trade policies and the need for greater collaboration between member states to help facilitate global logistics. The paper was published the week prior to the WTO Trade Facilitation agreement ratification achievement foreshadowing the outcome. The Second Position paper Changing Logistics - Freight Forwarders Evolve with Trade outlines the history of freight forwarding and how logisticians have evolved over time to contribute to the growth of global trade. The paper reveals how the industry has generally self-regulated itself to harmonise trading rules in order facilitate trade and encourages member state intervention only in times when called upon by private sector. To strengthen ABIA’s advocacy efforts towards the UN, ABIA played a leading role in two private sector associations one of which is the Global Partnership on Sustainable Partnership (GPST), a group of transport stakeholder. FIATA submitted a best practice document on training initiatives to the GPST for inclusion on their website and forwarding to the UN Global Compact. In addition, our work with the Global Business Alliance (GBA) has continued to gain further penetration in their interventions at UN High Level meetings to ensure that global policies are aligned with business interest. Being the logistics trade body on the GBA, FIATA’s input has been highly welcomed and included in positions submitted to the UN. ABIA participated in last year’s SDG Business Forum whereby FIATA and ICC coordinated on a press release based on comments by the ICC Secretary General, which emphasised the importance of logistics and trade in achieving the SDGs. Such interventions have been encouraging member states to provide a more exclusive track for business participation separate from civil society to ensure their voice is heard. ABIA has also continued to strengthen ties with the World Trade Organisation (WTO). The WTO Trade Facilitation Agreement (TFA) which was struck in 2013 in Bali has been successfully ratified this year. A congratulatory press release was sent by FIATA to show its support as the needle now turns to implementation whereby private sector will need to play a key role. Such a milestone agreement as the WTO TFA helps remind governments that trade, and logistics at its service, are key stimuli to economic growth.

“ABIA aims to continue

extending its reach into the

international community and

deepen its access into

discussions”

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ABIA has also extended its work with the Asian Development Bank (ADB). Following their participation at the 2015 FIATA World Congress in Taipei, ABIA coordinated with DSLV to appoint a speaker to participate at the ADB Transport Forum contributing views from the private sector. The ADB also participated in the FIATA UIC Working Group rail meeting in Shenzhen, China. FIATA look forward to more continued cooperation with the ADB in the areas of logistics investment and trade facilitation.

This year marked the first UN Global Transport Conference Summit in Ashgabat, Turkmenistan. The conference helped pave the way for more focus on transport initiatives and future conferences to follow up on the outcome document. The meeting stressed the importance of high-level meetings in Ashgabat that helped bring closer the positions of countries and international organisations in the sphere of sustainable transport systems. ABIA

followed the conference, closely engaging with the UN and private sector representative to stay on top of emerging outcomes and initiatives. We communicated our support to the conference and accepted an invitation to join a Policy Advisory Council (PAC) on the GPST consisting of high level representatives from heads of states and leaders from the private sector working together to formulate policy targeted towards the transport and logistics industry. With the accumulation of these initiatives, ABIA aims to continue to extend its reach into the international community and deepen its access into discussions. As an international organisation, we have an obligation to connect at the international level if we are to influence meaningful change throughout the logistics industry. Moving ahead we look forward to working more closely with our Association Member network to take into account their local challenges and needs, and identify how ABIA can assist at the international level. Surveys which seek to gather input on local issues has been launched this year to help gather information and assist in local improvements of the industry. We very much appreciate the support from FIATA’s membership and we look forward to dealing with the upcoming challenges with their continued support Babar Badat Chairman, Advisory Body International Affairs (ABIA)

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ADVISORY BODY INFORMATION TECHNOLOGY (ABIT)

I am very pleased to have the opportunity to write ABIT’s third Annual Report. In only its third year, the ABIT agenda generated an array of different topics from practical projects to standard setting initiatives. Within the field of IT standards, ABIT finalised its input to UNCEFACT’s Trade

Facilitation Monitoring Mechanism Project which aims to help states establish the right indicators to measure trade facilitation and the Single Window Vocab Project to help define what constitutes a Single Window. Both projects have passed public consultations and will be published. Following our consultation, FIATA invited two UNCEFACT experts to participate in our HQ session and shed light on the relevance of UNCEFACT projects in the overall development of the industry. This helped add a practical nature to the more technical work that is undertake by UNCEFACT and private stakeholder experts.

In addition, FIATA has been active in coordinating with CLECAT in its participation with the Digital Transport and Logistics Forum (DTLF) providing input into sub-group 1 on “Electronic transport” and Subgroup 2" corridor cargo flow optimisation in addition to active participation in the plenary. FIATA’s advisory bodies and institutes have been engaged in providing input to the DTLF in addition to ensuring that the other freight forwarding members in the DTLF (TLF, CLECAT, UPS, DHL, etc.) are aligned in a common voice when submitting input regarding the e-transport documents, the standard of exchange of the data, and the rules to be applied regarding the use of digital transport and logistics platforms. FIATA has been very engaged in regards to evolving standards taking into account the new technologies to be applied both in the industry and in our field of services to the international trade. The capacity to attract input from the industry is critical to ensure our industry’s future. Operational procedures have been also taken into consideration in each standard. In addition to UNCEFACT work, ABIT is working with GS1 to build an international identification standard for FIATA’s freight forwarding community in accordance and adherence with international standards. This would enable, in cooperation with essDocs, a future block-chain IT system for FIATA members ensuring our industry is ahead of this emerging technology. Within the field of practical projects: ABIT has been asked to provide more focus on

practical IT projects which include both software and hardware that can greatly enhance the efficiency of our industry and ensure sustainable transport networks.

FIATA’s ABIT is still working closely with our technical partner essDOCS to offer a platform called CargoDOCS which houses the electronic exchange of FIATA’s Electronic Bill of Lading (e-FBL). We are now in discussion to develop an interim solution that will help progressively lead the industry of transport and logistics into a full eSupply-Chain management initiative thanks to the collaboration of essDocs and GS1 in partnership with FIATA. There has also been additional interest shown by 5 other Association Members to start piloting the eFBL. ABIT has also continued its work with Kale Logistics seeing ongoing growth with and FIATA’s Thai International Freight Forwarders Association (TIFFA). The pilot project utilises Kale’s Logistics EDI system to facilitate the electronic data exchange between forwarders and

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airlines. We have also extended our work in the area in the ecommerce this year. FIATA was invited to join UNCTAD’s e-Trade for All initiatives which aims to facilitate the trading environment from ecommerce purchases. We have accepted the invitation and will start to contribute views from the freight forwarding perspective. In addition, FIATA released a Position paper on eCommerce’s impact to trade and logistics. This was followed up by a press release which gained momentum and our participation in a panel session during UNCTAD’s ecommerce week.

ABIT continues to strive to allocate more resources in identify IT solutions that would be suitable to fit our membership diverse characteristics for small and medium size enterprises. Our goal within IT practical projects is to offer an array of options for our small and medium members at reasonable prices. The recent two FIATA sessions, 2016 World Congress and 2017 HQ Session, where great opportunities for ABIT to showcase some of our work inviting innovative companies from Internet of Things, Block-chain and Drone Logistics to learn how technology will shape the future our industry. ABIT must play its part in

ensuring that logistics remains on top of the changing landscapes and early adopters of technical solutions. We must also be the voice to ensure that industry practices and value added services are taken into consideration throughout the development of technical standards as well as throughout the new legal rules implemented by government agencies. This year also witnessed deliberations undertaken between ABIT, AFI and ABLM. Great efforts have been taken to work cross sectional between the Airfreight Institute and Legal body on initiatives to advance the adoption of the e-AWB and other electronic projects. Both areas are allowing IT to provide recommendations into relevant fields and work with key FIATA delegates to ensure a coordinated message is brought to the appropriate individuals within international bodies. We very much appreciate the support from FIATA’s membership and its bodies and institutes in contributing to ABIT’s work. I personally thank all who have assisted in its work. We look forward to continuing this growth throughout 2017 and 2018 and improving results for the benefit of FIATA’s membership. Anne Sandretto Chairwoman, Advisory Body Information Technology (ABIT)

“ABIT to

showcase some of

our work inviting

innovative

companies from

Internet of Things,

Block Chain and

Drone Logistics.”

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ADVISORY BODY LEGAL MATTERS (ABLM)

IATA-FIATA Air Cargo Program (IFACP) The Chairman of the FIATA ABLM Mr Richard Gluck assisted the leadership of the Air Freight Institute in successfully negotiating a cooperation agreement between FIATA and the International Air Transport Association (IATA) to launch a new IATA-FIATA Air Cargo Program. The agreement was formally signed at the Dublin World Congress by the President of FIATA and a representative of IATA at a public ceremony. The ABLM Chairman is continuing to advise the FIATA members of the new IATA-FIATA Governing Board on the 24 month roll out of the new programme on a country by country or regional basis. The programme will begin with Canada, where FIATA is working with IATA to conclude a competition law compliance review of the programme’s forwarder financial criteria by an independent outside law firm. Efforts are also being made to address the concerns of other national associations about the existing IATA agency programme so that objectionable features will not be imported into the IFACP. An RFP has been issued jointly by IATA and FIATA to engage international competition law counsel to review the financial criteria in all of the countries and regions where the programme will be introduced, world-wide. The ABLM Chair also attended an IATA-FIATA Consultative Council meeting in Buenos Aires to advise FIATA delegates on other business and financial issues related to the transition to the new programme. Fraudulent activity involving FIATA Multimodal Transport bills of lading The joint Working Group ABLM / ABIT surveyed a cross section of forwarders and trade finance institutions world-wide to determine the necessity and market potential for an electronic registry that would capture specific, key data points from FIATA Bills of Lading (FBLs). The purpose of such a registry would be to allow forwarders, consignees, banks, and trade finance institutions to verify the legitimacy of an FBL before payment is made or cargo released. Based on the results of this survey, after much discussion the joint working group reached the conclusion that the continued use of the paper FBL without a digital or electronic alternative is creating a greater and more fundamental business risk to FIATA than just the fraud problem alone. It was observed that interest groups such as the ICC, IRU, European Commission, European Shippers Council and others are considering the promotion of multimodal electronic transport documents, which could challenge the use of the FBL, primarily due to the fact that the FBL had not yet evolved into a digital format. Inquiries have been received from banks and member forwarders about FIATA’s intentions on the future development of digital solutions to respond to market demands from financing institutions and shippers.

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In keeping with this consideration the Chairs of ABIT, ABLM and MTI, assisted by SVP Babar Badat, concluded that there was an interest for FIATA and a commonly shared objective to set an evolutionary step by step path for the migration of the FIATA document to a digital dimension, with the capability to be integrated with supply chain solutions. This evolution should preserve the ability to issue paper documents during a transition period to allow for progressive movement toward a fully electronic solution without disrupting existing business processes at the local or individual company level. The working group is proposing the creation of a certain number of pilots to test electronic solutions on identified trade lanes where FBL’s (used as documents of title) would be transmitted in a way that safeguards the control, integrity, reliability and authenticity of the shipment record. The pilots would be designed to include a range of countries and regions from highly developed to mid-range and emerging economies. The pilot projects will be overseen by ABIT with support from ABLM on any related legal issues. UNCITRAL Working Group on Electronic Transferable Records (ETRs) Prof Manuel Alba Fernandez represented FIATA at the final UNCITRAL working group meeting to complete a model law for the regulation of electronic transferable records, including bills of lading such as the FBL. The new law would create a legal regime for electronic transferable documents which would be a replica of the one for existing paper transferable records. Professor Fernandez reported to the ABLM HQ session that the Model Law, if adopted in many trading countries as expected, would open the possibility that a negotiable FIATA Bill of Lading could be issued in electronic form, and the Model Law would determine the conditions for its valid use. The Model Law does not apply to straight or nominative bills of lading. The UN expects that many countries will adopt it so that the same rule would apply in various countries in terms of recognition of electronic bills of lading that could be used for trade finance purposes. The activities of the ABLM included the admission of four new full members of ABLM, Mrs Veronica Taubas, Argentina and Beata Janicka, Poland as well as Messrs Tej Contractor, India and Gavin Magrath, Canada. The ABLM also invited several people to become co-opted experts of ABLM: Ms Caroline Gubbi, Belgium and Mr Michael Yarwood, TT Club United Kingdom as well as Prof Manuel Alba Fernandez of Spain and Prof Abhinayan Basu Bal, Sweden. They will assist in various projects that the ABLM has pending. ABLM covered a very broad variety of subjects during the past year, and the ABLM members deserve thanks for their active and hard work. Richard Gluck Chairman, Advisory Body Legal Matters (ABLM)

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ADVISORY BODY SAFETY AND SECURITY (ABSS)

There has been a number of interesting security topics in the past year which ABSS has had on its agenda, with several posing challenges to our industry. One particular area that has seen emergence is cybersecurity. At the recent 2017 FIATA HQ Session, ABSS covered this with an introductory presentation to shed light on some of the potential risks and best practices to help mitigate cybersecurity threats. Governments are also doing their part for example the EU is working to implement regulation through a directive on security of network and information systems which was adopted by EU Parliament. This would provide legal measures to boost the overall level of cybersecurity in the EU. ABSS foresees more countries and regional governmental bodies to take more stringent actions towards cybersecurity as this area continues be a threat in not only our industry but all industry. Another area of continuous development for which FIATA follows closely is dangerous goods. We highly advised the industry this year to remain informed and trained in this field and continue to encourage the use of proper classifications and stressing member to ensure ion batteries charge is below 30% according to regulations. We are also witnessing reports of accidents that have occurred while transporting lithium batteries by sea. This mode of transport is currently less regulated and therefore volume of battery transport could experience an increase in this mode which in turn could spur the need for regulator to impose stringent requirements. ABSS will be coordinating with FIATA’s Working Group Sea to stay on top of developments and spread awareness on the issue this year. The topic of e-Security Declaration (e-CSD) was reviewed closely. In the past, there were no harmonised formats for security declarations with the AWB being misused as a security declaration. As a reaction, the IATA Cargo Service Conference mandated the use of CSD/e-CSD by IATA members. Following this recommendation industry is encouraged to establish CSD/e-CSD capabilities in ICAO member states where a secure supply chain regime exists. In response, ABSS launched an initiative to gather information in hopes to identify a trend to encourage the implementation of ICAO’s CSD/e-CSD by ICAO Member States. With 57 respondents, the survey showed that 79% of countries had a Cargo Community System. Of those with a system, there was almost a 50/50 split between secure supply chain regime and 100% physical screening. Of those with physical screening, 59% were being conducted by a private entity while the remainder was being done by a government entity. The analysis showed that 51% of the countries with supply chain regimes were recognized by other states.

"Excellent opportunity for

logistics to work with

international institutions in

providing enhanced security “

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FIATA has already stated that they endorse the adoption of e-CSD and as we gather further information, we will be able to strengthen our position in the coming year. With the political landscape changing, ABSS continued to update members on the ACC3 programme for which air carriers need to gain validation in a third country and send to the EU administration office to label them as ACC3. The US has concluded the system is not secure enough which could impact mutual recognition between both regions. A solution was made that the RA3 and KC3 are no longer handled by ACC3 anymore but are sent to the competent authority in the EU country and submitted into a database. Mutual recognition has been extended for two more years. There were questions of what would happen to ACC3 after Brexit has been implemented. Nothing has been confirmed and ABSS will remain on top of the discussion and report back this year. In the US, it was still unclear what the new administration had planned in regards to logistics and trade but ABSS would provide updates to FIATA to distribute to members when they become available. At the 2016 FIATA World Congress in Dublin, ABSS invited TAPA EMEA. TAPA advised that 101,256 euros was the average losses reported from their members for crimes along the supply chain. It was added that 86% of crimes reported in Europe were truck related. In addition, over 57% of freight losses occurred at unsecured parking locations. This has prompted a robust secure parking programme that encourages a greater choice of locations and improved information for users seeking parking. TAPA has welcomed FIATA’s input on this initiative and various other initiatives to connect more closely in identifying areas of collaboration. This is a great example of how logistics can work with international institutions in providing enhanced security. 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. We look forward to future challenges in full assurance that ABSS, supported by the Secretariat, and our members can continue to strive and enhance the safety and security of our industry. I therefore look forward to seeing you in Kuala Lumpur and can assure you the high level of, and exciting presentations and speakers which ABSS has become known for, and which will continue well into the future. See you all in Kuala Lumpur! David Fielder Chairman, Advisory Body Safety & Security

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ADVISORY BODY OF VOCATIONAL TRAINING (ABVT) In 2016 we reached a milestone, our 20th anniversary, a celebration of two decades of passion for education and for development. But this achievement comes as our industry is at a crossroads. Expectations of FIATA’s ABVT are changing substantially as association members embrace new digital education trends, new competencies and the need of technology for education. We are on the brink of a ‘fourth industrial revolution’; a transformation of society that will be unlike anything we have experienced before, presenting us with challenges but also great opportunities. We are responding by sharpening our focus and strengthening our efforts to understand what our industry needs in terms of lifelong learning and building new professionals. Currently, the Validation/Re-Validation Working Group has qualified 60 programmes in 54 countries to issue the FIATA Diploma in Freight Forwarding, and 16 programmes in 14 countries to issue the FIATA Higher Diploma in Supply Chain Management. Additionally, 256 qualified trainers have successfully completed a “Train-the-Trainer” course and have received the FIATA Trainer Certificate in all 4 FIATA Regions. The “Train-the-Trainer” programmes are committed to deliver high quality training in freight forwarding, employing various learning modalities, methodologies, and techniques. FIATA Validation of Training Materials – The ABVT’s Validation/Re-Validation Working Group met at the 41st Validation Session in March 2017, 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:

China International Freight Forwarders Association - CIFA – (China) – re-validation of FIATA Diploma in Freight Forwarding

Irish International Freight Association – IIFA – (Ireland) – re-validation of FIATA Diploma in Freight Forwarding

Vietnam Logistics Business Association– VLA – (Vietnam) – re-validation of the FIATA Higher Diploma in SCM

Russian Association of Freight Forwarding and Logistic Organizations –FAR- (Russian Federation) – re-validation of the FIATA Higher Diploma in SCM

Association of Forwarding and Logistics of the Czech Republic - SSL - Czech Republic – new validation of the ‘FIATA Diploma in Freight Forwarding

Taiwan Freight Logistics Association – TFLA – (Chinese Taipei) – new validation of the FIATA Diploma in Freight Forwarding

Awarding of FIATA Diplomas – 2016/2017 has been another fulfilling year for ABVT. From 1st January, 1996 to 5th July, 2017 a total of 13'160 FIATA Diplomas in Freight Forwarding have been issued. Top ten countries in terms of number of issued diplomas include: France (1396), Singapore (778), Islamic Republic of Iran (809), Poland (689), Ukraine (651), China (576), Kazakhstan (586), Ireland (523), Ghana (494), and Canada (491). FIATA/TT Club Young International Freight Forwarder of the Year Award (YIFFY) Award Competition 2016 - During the World Congress in Dublin in 2016, the President of FIATA

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Mr Huxiang Zhao, and the Chairperson of the Steering Group of the Award, Mr Michael Yarwood, TT Club, were happy to welcome and award the four regional winners. The 2016 Regional Winners were:

Africa/Middle East: Ms Lorraine Zhou, Zimbabwe

Americas: Mr Evgeny Kapustin, Canada

Asia-Pacific: Mrs Shanon Gould, Australia

Europe: Mr Kostiantyn Hapii, Ukraine

They participated in the Young Professional Forum presenting about their career path and growth opportunities of the industry in their countries. The award is a good example of our determination to make a difference for young people. We have received feedback on how winning the award is an eye-opener as they get to see the global world of logistics by meeting the FIATA constituency at the world congress. In 2017, 17 dissertations were received from all 4 FIATA Regions. The overall winner will be announced at the FIATA World Congress 2017 in Kuala Lumpur, Malaysia and as a

prize the winner will receive a week’s training at one of TT Club's regional centres in London, Hong Kong or New Jersey, as well as attendance on the Thomas Miller "Insight into Transport Law and Insurance" course in London, in which TT Club is closely involved. All four winners will also receive a subscription to one of the industry’s leading media information sources: International Transport Journal (ITJ/ITZ). Part of the prize is also the complimentary invitation to the FIATA World Congress for four regional winners. FIATA Higher Diploma in Supply Chain Management (FHDSCM) ABVT Validation Committee is ready to validate programmes of 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 Singapore, France, Ukraine, Belarus, Kazakhstan, Russian Federation, Vietnam, Ghana, South Africa, Egypt, Nigeria, Chinese Taipei, Lithuania and Pakistan have successfully validated their programmes. A total of 206 FIATA Higher Diplomas have been issued. Trainer Certification The ABVT is also pleased to announce that 256 FIATA Trainer Certificates have been issued. So far, trainers were certified in the following countries: Ukraine (31), Malaysia (40), Belarus

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(1), South Africa (8), Ghana (10), Kazakhstan (12), India (1), Syria (1), Chinese Taipei (35), Vietnam (18), Chile (13), Brunei Darussalam (1), Myanmar (1), the Philippines (5), Singapore (4), Cambodia 4), Thailand (8), Zimbabwe (32), Morocco (16), Panama (14). A special highlight was the Train-the-Trainer Course conducted in September 2016 in Casablanca, Morocco. Empowered by their learnings, our trainers from our association member in Morocco (AFFM) participated at the Marrakech Climate Change Conference in November 2016. There shared best practices for green logistics focusing on the importance of training and education to achieve sustainability in transportation. Future Directions of the ABVT – Over the last 20 years the ABVT has faced constant change. Today is no different. This is the moment to put in place measures to ensure capacity building in our industry thrives in this new environment. So, in this anniversary year, we made choices that will shape the future and ensure your organisation’s continuing success. Thomas Sim Chairman ABVT

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FIATA FOUNDATION OF VOCATIONAL TRAINING (FFVT) A Train-the-Trainer Course has been conducted in Casablanca, Morocco between September 4th and 18th 2017. The course was attended from beginning to end by 17 participants. 4 local resource persons and 4 international facilitators participated. Participants included Customs brokers, employees at AP Moller, freight forwarders, 3 professors of the University, lawyers and a gentleman from the Ministry of Commerce. For the first time the online assessment was conducted. The course ended with a successful closing ceremony. The members of the Association were invited and also officials of the Ministry of Transport. An MoU was signed between the CASABLANCA PORT INSTITUTE and the ASSOCIATION DES FREIGHT FORWARDERS DU MAROC -AFFM. They formed 14 different Working Groups, one for each module to develop their training programme. Their target is to achieve validation at the FIATA World Congress 2017 Validation Session. The Participants appreciated the training greatly and assured it was a new experience to receive this kind of training. AFFM created a special newsletter about the TOT and sent it to all members as well as to the FIATA President. A Train-the-Trainer course in Cameroon is still in planning and a Pre-Qualification Evaluation 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 Swiss Francs (CHF) 25 towards the Foundation’s initiatives. A large number of the members have chosen to donate this way. During the World Congress in Kuala Lumpur/Malaysia, the Foundation will again organise its traditional fundraising raffle which in Kuala Lumpur will be called Lucky Draw. Aldo Da Ros President of the FIATA Foundation

FIATA LOGISTICS ACADEMY (FLA)

We are well aware of how fundamentally technological advancement is transforming society and the FLA is FIATA’s response to build the knowhow and talent to respond effectively and efficiently. Technology is changing not just how companies operate but also their relationships with partners, suppliers and how people buy products. It requires attention and strategy to seize opportunities. In 2016 we have designed our business plan to digitalise the FIATA Diploma in Freight Forwarding. The FIATA Presidency has already approved two pilot courses, and we also aim to digitalise all 14 Minimum Standards in Freight Logistics. In addition, we intend to introduce validation and revalidation on virtual bases saving our members costs and producing a Train-the-Trainer (TOT) for the Digital World to improve and complement the existing classroom TOT programme.

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During 2016, we started planning the first digital course “Introduction to Global Logistics Theory and Practice”, which targets young professionals seeking to enter a career in our industry. We are creating a digital-first culture. We also expanded our Steering Committee and FLA Mentors group. The FLA has worked to make training and education more accessible and widespread. This year we pursued a project to allow ICAO-FIATA Training Centres to issue the Air Cargo Basic Certificate through the FIATA Secretariat. In addition, two new certificates were launched: An International Maritime Dangerous Goods (IMDG) and an Air Cargo Security Certificate. Validated association members can request the issue of these two certificates. We believe that training needs to be flexible, blended learning, using desktops, laptops, tablets and smartphones to facilitate the likes of virtual training. As in the previous year we continued to support training initiatives by the University Alliance, edX, United Nations Institute for Training and Research (UNITAR), and MIT’s MicroMaster credential, a series of credit-eligible courses recognised by industry. Furthermore, as of September 2016, FLA broke new ground by displaying two of my books Transport Logistics: Past, Present, Predictions and Transport Logistics: The Wheel of Commerce available for free in e-format on the FLA Website: www.fiatalearning.com. In this fast-changing world our industry is more important than ever, logisticians are an engine for economic growth and job creation. The FLA is part of the fabric of society with its challenges and opportunities. A good example of our determination to make a difference is Intern Connect Initiative which we started one year ago. During 2016, we pledged to promote job offerings for young professionals, apprenticeships and traineeships in each of our four geographical zones. We believe that through these efforts to promote readiness-to-work we can make a significant contribution towards addressing the social cost of youth unemployment. We are aware of the challenges facing our dynamic, fast-growing industry. Challenges have arisen both in developing economies, where the sector is expanding faster than the required education can keep up, and in developed economies, where the workforce is ageing and more young professionals need to be trained. Through online education, we can help the industry take full advantage of global diversity, raise awareness of just how exciting and varied the freight forwarding industry is, and inform younger generations about the many possible career paths offered by the industry.

Issa Baluch Chairman, FIATA Logistics Academy

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WORKING GROUP ON SUSTAINABLE LOGISTICS (WGSL)

This year we made another progressive step forward in our sustainability journey. We have identified a sustainability definition and focus areas that are important to FIATA and our stakeholders, and are encouraged by feedback that we have been receiving about the quality of our work. We will endeavour to keep improving. In our last meeting we agreed in a self-understanding evolving around green logistics. The environmental aspect is and will be the main focus point while other aspects of sustainability such as labour rights, transparency and social issues will be monitored. The group aims at distributing information and gaining new members to reflect the global character of FIATA. The mission of the group is to help FIATA assist middle- and small-sized companies understanding the standards of carbon footprint. Customers come to freight forwarders expecting a sustainable perspective and they should choose their partners carefully. A sustainable logistics company takes care when selecting from the carrier point of view. There are different kinds of tools to measure emissions and forwarders need to understand what is out there, what companies should be looking at, therefore we shall make recommendations in this regard. An initial step is to offer answers to questions such as “how do I measure carbon emissions”. It is our task to share this information with FIATA for our members to use. In this light, the GLEC standard and the LEARN Project will be taken into account.

We have also been active representing FIATA internationally. For example, we participated in the UN DESA/DSD Expert Group Meeting (EGM). The meeting provided an opportunity

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for non-governmental actors, along with invited experts and member states, to discuss how to ensure their effective participation and contribution to the process of national level reviews of the 2030 Agenda and the Sustainable Development Goals. Furthermore, the Morocco’s AFFM delegation participated in COP22. At that conference AFFM made a presentation on the fundamental principles of its training initiative and how their courses encourage the development of green logistics and enable the creation of a multimodal cluster. Pillars of their project include reducing transport’s impact on the environment as well as using information technology to reduce carbon emissions. The WGSL looked forward to FIATA’s representation at COP23, which will be organised by Fiji and hosted at the headquarters of the UNFCCC Secretariat in Bonn, Germany. Currently, FIATA is applying for observer status at the UNFCCC and UNEP. I am sure that this Working Group will play an important role in FIATA’s history, helping to expand the international reach through FIATA’s wide network and reputation. The future is therefore an exciting future.

Heiner Rogge Chairman Working Group on Sustainable Logistics

FIATA WORLD CONGRESS COMMITTEE

I am pleased to write the Congress Committee’s (CC) second annual report. One of the principal assignments of the Committee is to provide recommendation of the host countries to the members of the Extended Board. After our initial review, we send the shortlisted hosts to the Extended Board for voting and selection of the winner. This is done annually and the selection I for the Host country three years ahead of the actual congress. This past year we reviewed candidates to host the 2019 FIATA World Congress, which will be hosted by our South African Association. The host countries must fulfil seven criteria to be considered as successful bidder. The CC members do their individual evaluations and then send their scores into the Congress Coordinator at the FIATA Secretariat for consolidation. Afterwards, the three top scoring host countries will be forwarded to FIATA Extended Board (EB) with the CC’s recommendations. The three host countries will then make a presentation separately to the EB during their bi-annual meeting. All our potential hosts come from 4 regions, the Americas, Africa/Middle East, Europe and Asia Pacific. This vast variety in culture and potential venues make the FIATA World Congress every year a special event opens to all our members and everyone related to the field of logistic.

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The second main task of the CC is to continuously improve the FIATA Congress. Thus activities have been taken to restructure the Congress format, which will be provided for endorsement to the Presidency members. Further the marketing and social media activities of future Congresses are under review, also a standardisation of a Congress registration platform and a FIATA Congress App are considered. The FIATA Programme Committee has been formed as a working group within the CC. Employment is concentrating to assure world class speaker’s contributions at all FIATA Congresses. You will certainly see result of the work of the CC this in the Congresses to come.

Stanley Lim Chairman, FIATA Congress Committee

Future of FIATA

The work of the Future of FIATA Committee has been on-going within the Presidency, Institutes, Working Groups, Advisory Bodies, and Committees. In the past, we have updated you on progress to enhance FIATA’s communication with members, improved staff support for Chairs, and improvement to the FIATA Document Delivery System. Work continues in these areas. At the FIATA World Congress in Dublin, the membership adopted Statute changes that impose term limits on Chairs and those serving on the

Presidency; these limits go into effect with the elections in 2019. In this report, we will highlight several developments. Establishment of an Association Manager’s Committee: during the Association Managers

meeting at the Headquarters session in March, we had an open and robust discussion about

issues associated with running a national freight forwarder association. As called for in the Future

of FIATA Plan, we will build upon the ideas expressed. To facilitate the future development of

the HQ session, a committee of members was established.

Changes to the Congress: the Congress Committee has taken up the Future of FIATA Plan

goal of improving the experience of the FIATA World Congress. The Committee is taking steps

to make the attendees experience the same from year-to-year, to improve the experience for

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forwarder attendees, to improve the quality of sessions. Because the Congress has been

awarded for the next several years, the Committee’s changes will be rolled out slowly over time,

but each change is anticipated to improve the overall meeting.

Training: the Presidency has been working with the Advisory Body Vocational Training, the

FIATA Logistics Academy, and the FIATA Foundation to streamline FIATA’s various training and

education activities. ABVT continues to validate and re-validate the FIATA Diploma for those

national associations already offering it. FLA is working toward a plan to begin introducing the

FIATA Diploma through eLearning for national associations to access and re-sell to their

members. The Presidency is working with both ABVT and FLA to bring the two bodies together

in 2019. Their individual efforts will continue, but the combination will allow for improved

coordination and improved use of FIATA staff resources. The Presidency is also working with

the FIATA Foundation to improve coordination of its training efforts with those of FIATA.

Bob Voltmann Secretary General of FIATA

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REGION AFRICA MIDDLE EAST (RAME)

I am grateful to have the opportunity to compose RAME’s very annual report and highlight some of the activities we have undertaken over the past year. This year has been RAME most active yet with accolades in training and policy making, the regional members have been very active in advancing logistics and trade. Policy has been taken centre stage among RAME the past 18 months. RAME has been engaging with developments on the Tripartite Free Trade Agreement (TFTA) and Continental Free Trade Area (CFTA). Both agreements aim to liberalise 100% of tariff lines, challenge non-tariff barriers (NTBs), and set out criteria and conditions for goods to qualify for preferential rules. The crowning of the TFTA created the bridge into negotiations for a 54 state CFTA aimed at creating a single market for goods and services in Africa covering a GDP of over US$3 trillion. With the aim to have a deal struck by 2017, RAME emphasises the key to regional agreements lie on regional bodies such as regional economic communities (RECs) and private sector involvement through RAME at every step of the discussion phases all the way through to implementation. RAME has therefore called for a track specially created for private sector logistics and RECs to contribute to the discussions early in the process to facilitate the implementation of these agreements later.

Furthermore, RAME has wanted to see more regional collaboration in the African aviation industry. Last year we had taken the position to support the implementation of ICAO’s Yamoussoukro Decision and the Lomé Declarations, which require a cooperative effort from all regional bodies to insert key elements of the aviation agreement into their regional agreements, such as the CFTA. An ICAO hosted meeting had unfortunately taken place during

the same week as the HQ Session in Accra, Ghana this year to promote the declaration. We had followed development closely and reported back to our members. A second meeting took place in June in Addis Ababa, Ethiopia for which FIATA participated and provided its contributions on behalf of the industry. Liberalising the air traffic market in Africa will be key to its trade growth and member states integration.

“Regional Policy has

taken centre Stage among

RAME the past 18

months”

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To reaffirm our engagement with policy makers, RAME initiated the signing of a Memorandum of Understanding (MoU) between FIATA and Africa’s Common Market for Eastern and Southern Africa (COMESA). I had the pleasure of flying to Lusaka to sign the document on behalf of FIATA’s President. The MoU will see both organisations working together to achieve more facilitated free movement of goods in a relationship that has sprung up and flourished in only a few months. Following the MoU, FIATA was invited to participate in a COMESA sub-working on trade meeting June 22nd-24th in Kampala, Uganda. The meeting was used to investigate collaboration opportunities between FIATA and individual member states. RAME also communicated an overarching policy in Africa through a coordinated position paper titled “The Keys to Unlocking Africa” which helped open the door into policy discussions and allow Association Members a leg to stand on when approaching national legislators. RAME’s regional field meeting took place this year in Casablanca, Morocco. The three-day programme attracted high government officials, World Bank, WTO, UNCTAD and executives from the private sector and many more. The meeting held in May produced a declaration and facilitated bilateral MoUs between RAME Associations. It was also the first of its kind to introduce a young logistics segment and host an all-woman’s panel that shed light on the challenges faced by woman and the youth in our industry. I must commend the Association Freight Forwarders of Morocco (AFFM) on a successful conference that has elevated the benchmark of future RAME Field Meetings. Next year’s RAME Field Meeting also looks very promising as the hosting country Cameroon have already secured their bid and started compiling a programme with a different format. A note must be made to the FIATA Foundation in Vocational Training who have been very busy in engaging with RAME Association Members launching numerous train the trainer programmes across the continent. The most recent being in Morocco with another one planned for Cameroon. On the topic of training, FIATA’s Logistics Academy have also actively promoted courses relevant to RAME and provide distance learning opportunities to those which do not currently have the set resources to launch their own programmes. I have very much appreciated the support from FIATA’s membership over the years as RAME Chair 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. As this will be my last year as Chair of RAME, I must emphasise it has been an honour to serve the members of the region and look forward to continuing to be a part of its development and growth. Basil L. Pietersen Chairman, Region Africa Middle East (RAME)

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REGION EUROPE (REU)

GENERAL The market place and market dynamics were changing rapidly. Following the 2016 referendum vote to leave, the UK government started the withdrawal process on the 29th of March 2017, putting the UK on course to leave by April 2019. There are political effects of BREXIT and it is expected that there will be economic effects as well. This will eventually effect the logistics chain and our business. The HANJIN Bankruptcy had a very serious and bad effect on supply chains. Today we see that shipping lines are now operating under three major alliances: 2M / THE ALLIANCE and OCEAN ALLIANCE The first impact on the market is tight space and increasing freight charges. In certain routes bookings are accepted not for next week, not for next month but as far as the following month. The refugee problem is existing and even increasing. It is causing kind of protectionism with increased border controls. This is again a major problem for supply chains. Time lost at border crossings is increasing, costs of border crossings and over all transport costs are increasing and in return this is causing an increase in our expenditures to all of us as consumers. A major milestone for the global trading system was reached on the 22nd of February 2017 when the TRADE FACILITATION AGREEMENT of the WORLD TRADE ORGANASATION entered into force. WTO has now obtained the two-thirds acceptance of the agreement from its 164 members needed to bring the TFA into force. ROAD The European Commission launched a new web-based portal that informs about the upcoming Road Transport Initiatives. It provides a single access point to all news and documents related to the initiatives. Users will be able to view ongoing initiatives and track the progress of each initiative as it progresses through the legislative process. The Road Transport Strategy is designed to produce a well-functioning internal market. The site gives a summary of the result of the consultation - Review of Regulation (EC) No 1071/2009 on access to the occupation of road transport operator and Regulation (EC) No 1072/2009 on access to the international road haulage market. The EU Commission briefed ministers on the road initiative which it is planning to present in the first half of 2017. The French and German delegations, which had asked for this item to be put on the agenda, expressed their concerns with regard to the current challenges in the road haulage sector and asked the Commission to address these issues in the upcoming legislative initiatives on road transport. Many delegations stated that they were against further liberalisation of road transport, while some were in favour of more market opening. A number of delegations mentioned the issue of working and rest times, fraudulent use of tachographs and letterbox companies, which were all found to be unacceptable. Several member states called for more harmonised inspections. The upcoming Mobility Package (no longer called the ‘Road Package’) covering ‘Post 2020 strategies on cars/vans and on lorries, buses and coaches; Euro vignette and European

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Electronic Toll Service (EETS) Directives’ was published on 31st of May 2017. The package is expected to address road charging including Euro vignette and electronic tolling, an internal market pillar and a social pillar. The social pillar will give clarification of the application of posting conditions to road transport as well as effective enforcement measures which do not impose disproportionate administrative burdens on companies operating in the sector or on their workers. RAIL On the 15th of June the technical provisions of the Fourth Railway Package entered into force. These are a series of measures adopted by the European Parliament and the 28 Member States to make European railways more innovative and competitive. They will in particular promote common EU rail standards and approvals, thereby contributing to the competitiveness of the rail sector and to the creation of a deeper internal market. The Commission has launched a consultation process in the framework of the evaluation of the Rail Freight Corridor Regulation (Regulation (EU) 913/2010), including an open public consultation. After analysis of the numerous contributions, the Commission has established a list which gathers points which could be considered in the case of a revision of the Regulation. The report shows that EU legislation on rail, which encourages competitiveness and market opening, has led to a more efficient and customer-responsive industry. In Member States where rail markets are opened, competition can result overall in lower fares for customers and better value for taxpayers. After adoption of the 4th Railway Package, the focus of the Commission will be on the implementation of existing legislation to bring about further performance improvement. CUSTOMS

The European Commission adopted on the 21th of December 2016 its long-term plan to give fresh impetus to the management of the Customs Union, a basic pillar of the European Union which supports and protects the Single Market. The communication sets out a strategic vision for the Customs Union, which would see cooperation among national authorities’ increase in order to meet the challenges of the 21st century. The European Commission recently published an updated version of the national planning for the development and deployment of the electronic systems foreseen by the Union Customs Code (UCC). The UCC Work programme establishes 'dates of the deployment' of the UCC trans-European and national systems from the

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entry into force of the UCC until end of 2020. According to the provisions of the UCC, the Member States have to further detail their national planning for the systems being developed and deployed within these time-windows and transmit it to the Commission for publication. MARITIME EUROPE-ASIA BOX CAPACITY SHORTAGES EASE Ocean freight capacity shortages on the Europe to Asia trade suffered by forwarders and shippers in March and April have finally begun to ease after two months of supply chain disruption. However, forwarders say continuing unusually high prices for the backhaul trade are pricing out low-value cargo, and shipper representatives claimed that peak-season surcharges imposed by lines were unjustified. A combination of higher-than-expected demand and a lack of capacity due to liner alliance restructuring as well as and blank sailings saw eastbound freight rates from Northern Europe to Asia accelerate, with shippers reporting a lack of slots throughout March and April. Turgut Erkeskin Chairman, Region Europe (REU)

REGION AMERICAS NORTH AND SOUTH (RAMNS)

In 2016 RAMNS refined the ways in which we add value in FIATA, in order to respond to the principal challenges facing the region and to contribute to its development. Our aim is to be an open platform for FIATA delegates from this region to express concerns, discuss developments and envision ways to improve in the future. In our deliberations at the FIATA World Congress in Dublin we discussed how supply-chains demand good infrastructure, logistics and trade facilitation between borders. We agree with our invited speaker from the International Trade Centre about the benefits of the Trade Facilitation Agreement (TFA). This year several countries in RAMNS have accepted the WTO TFA. We foresee reduction in trade delays and in trade costs, diversification of exported products and export destinations, as well as an increase in merchandise exports per annum. When it is easier to trade, more trade happens, and the TFA will make it easier than ever for businesses to sell to new markets. The costs to trade in Latin America are more than twice than in North America, according to a WTO analysis, and nearly 50% higher than in the Middle East. We highlight the importance of establishing national trade facilitation committees where all border agencies and representative from the private sector are represented to coordinate and facilitate trade facilitation reforms. Therein the importance of FIATA as the global voice of our sector. Most Latin countries began with the implementations of TFA regulations and eDocuments in order to facilitate Customs processes and computerised operations. New custom procedures were implemented in America, applied to express shipments (courier based) and to export and import logistic processes, in order to make them easier. Vuce (single windows) is an issue in our region, most countries are working hard trying to implement it as soon as possible, as it is an important tool used to reduce extra costs, transit time and smuggling

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while also bettering the risk-controls and therefore advancing in transparency. Governments like Argentina and Brazil decided managing this process directly from their presidency. Some countries decided to build a new electronic platform designed to reduce the actual administrative structure. Another example of our practical approach is how we shared our experiences regarding the SOLAS Regulations, which began on July 1st. Our dialogue helped us gather ideas on how to gather information in our respective countries and approach our governments to understand how the rules would apply. I believe RAMNS understands that knowledge is power and that is why we take listening to all delegates seriously. In our meetings we also discussed about how trend moving from commissions to net rates affects our business. In our last session delegates dedicated part of the time to talk about demurrage. After comparing the different situations in our countries we dialogued about ways to run an active and dynamic business and how to find the best to mitigate costs. In the future we will revisit our options concerning the merchant clause on the contracts of carriage. One of the learnings this year is that freight forwarders in the region need to look into the future and devise ways to reinvent ourselves, to learn from best practice, to facilitate value propositions and embrace technology. Part of our role is also watching out for developments that might change our landscape which range from developments like the consolidation or contraction of services and carrier line mergers to new political figures. In this region we also saw the implementation of the IATA-FIATA Air Cargo Programme pilot in Canada. We learned from CIFFA how they are testing it out. Following the pilot, we shall be able to look at Latin America and RAMNS and see if it continues to grow as a platform where national associations can find support. During this period, I was attending the COMALEP, Regional Meeting of Customs Directors, that took place in La Havana city, Cuba. I contacted some Customs Directors, representatives of our industries, like ASAPRA and CLADEC members, and other attendees. One of them was Mr John Edwin Mein, who was representing PROCOMEX, who told me that he was also a member of the Brazilian National Association; hearing this and remembering how important an association with Brazil is I asked him if it was possible for his country to become a member of ALACAT and FIATA again. To this he responded by organising a meeting with SINDICOMIS/ACTC in Sao Paulo as soon as I came back from Cuba. Fifteen days later, I visited Sao Paulo to attend the BRAZIL INVESTMENT FORUM and have the meeting with SINDICOMIS/ACTC. I was received by Mrs Maristela N. G. Moreira and Mr Aguinaldo Rodriguez in their office. During the three-hour meeting we analysed the actual situation in Brazil: a country that intends to leave populism behind, as it destroyed its economy, through political and economic aperture. In the light of these changes, they acknowledged Brazil’s need to seal new commercial international agreements. They explained that this new situation drives SINDICOMIS/ACTC to return to the international federations like ALACAT/FIATA. At the present time, we are still working the negotiations to make this possible. Due to our consternations about port services in our countries, we decided to invite Mr Ricardo Sanchez of ECLAC to our next RAMNS meeting during our coming congress in Kuala Lumpur. In his lecture he will be comparing the different regional American port services to those of the rest of the world.

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In conclusion, significant changes in international commerce are happening due to the implementation of TFA. Our companies, as the main global logistic operators, will have a central role in the development of these events. Considering the great opportunity this offers, we shall keep working side to side with the governments of the region to achieve actions that facilitates international commerce, reduced the chain-value, improves traceability and betters the productivity in commerce.

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

REGION ASIA PACIFIC (RAP)

Globalisation is not an issue for social inequities but prosperity, and people exchange associated with globalisation could be harnessed to achieve an equitable distribution of opportunities. Asia Pacific region has a concept of exclusiveness in globalisation which was declared by Asia-Pacific Economic Cooperation (APEC). The Asia Pacific region expanded by 3.5 percent in 2016 (slightly lower than last year gross domestic product (GDP) growth of 3.6 percent. Trade performance in the Asia Pacific region also started to improve in the second half of 2016. For the whole year 2016, the aggregate value of Asia Pacific’s merchandise exports contracted by 4.1

percent, which compares favourably to the 8.7 percent contraction in 2015. The same trend could be observed in imports. This improvement follows world trade which also performed better in 2016 compared to a year ago. Asia Pacific member economies constituted half of the top 10 foreign direct investment (FDI) recipient economies in 2016. Taken together, FDI inflows to those five APEC economies reached USD 710 billion, equivalent to 46.7 percent of global FDI flows in 2016. The entry of FDI into the Asia Pacific region was facilitated by investment-friendly measures, which continued to outweigh investment-restrictive measures in the period mid-May to mid-October 2016. Trade-facilitating measures also outnumbered trade-restrictive measures during the period. Near-term GDP projections point to a higher Asia Pacific growth of 3.8 percent for 2017-2018, above expected world GDP growth. The Asia Pacific region is anticipated to converge with the world economy at 3.7 percent in 2019. Forecasts of a higher trajectory for both the Asia Pacific region and the world in the near term are supported by expectations of more buoyant trade and investment activity; the implementation of fiscal stimulus measures, particularly from the US and China; and the gradual recovery of commodity prices. However, there is also significant uncertainty about

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trade, monetary and fiscal policies which could give pause to trade and investment activity, adversely affecting economic growth. The focus from RAP meeting in Dublin, Ireland on October 2016 was on the Evolution and Benefits of the Implementation of Trade Facilitation in Asia Pacific Area. It discussed about the importance of Trade Facilitation in the Region which will help logisticians make their job easier and also profitable to less developed countries, such as the Association of Southeast Asian Nations (ASEAN) Free Trade Agreement (FTA), the Regional Comprehensive Economic Partnership (RCEP), the World Trade Organization (WTO) Agreement of Trade Facilitation Agreement (ATF), etc. Some countries showed their actions to improve logistic connectivity for international trade. For example, China invested in The China – Pakistan Economic Corridor (CPEC), which will open new efficient and faster transport opportunities and transport routes; and also its China-Europe block train impacts Customs and other authorities in Asia Pacific. But we also have to be aware of certain implications to trade facilitation and such agreements process that may arise from governments with regard to the adoption and ratification processes. Rather than having a harmonised acceptance, some governments choose another bilateral or multilateral way to implement the FTA’s and this may not always ensure harmonisation. The RAP meeting held in March 2017 in Zurich deliberated about Custom Affairs on the Region Asia Pacific. We knew that World Trade Organisation Agreement in Trade Facilitation (ATF) has entered into force on 22nd of February 2017, following its ratification by two-thirds of the WTO membership to that convention. The formation of National Committees on Trade Facilitation (NCTF) has become the key issue, finding a government champ to champion their course. In relation to eCommerce, it is seen that NCTF play a real position about reacting to the emerging problems that are starting to be perceived by Customs Administration worldwide. Governments are starting to tackle such considerations. Looking at the statistics of members’ economies, one can see that the international eCommerce trade is rising quite quickly. Referring back to what was discussed in the last meeting in Dublin, where it was mentioned that governments with new developments should alert us to be proactive by talking amongst each other, or among associations to exchange views on how we should respond. If we do not take action, we might be pushed onto the losing edge. Very soon we could become liable and member associations should be very careful in this regard.

Chris Kanter Chairman, Region Asia Pacific (RAP)

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DUBLIN, 2016, FIATA IS 90 YEARS OLD.