Independent freight forwarders are bearing the brunt of ...

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4 APRIL 2011 SERVING THE INDEPENDENT FREIGHT FORWARDING COMMUNITY No.014 June 26 - 28, 2011 Venue : KICC Nairobi, Kenya See you in Nairobi, Kenya 2 nd African Regional Freight Forwarders Conference 2011 5 th Annual WCAPN Conference 2011 June 28 - 30, 2011 Venue : Intercontinental Nairobi Hotel Nairobi, Kenya For more information, please contact WCA representative or [email protected] New security regulations – ignore at your peril Independent freight forwarders are bearing the brunt of new rules THERE is no doubt that security has become the biggest issue facing the logistics industry in 2011. In the wake of the discovery of a potentially deadly terrorist attack, using fake printer cartridges as bombs aboard UPS freighter aircraft back in October, governments, regulators and industry bodies have debated formulated and implemented a whole range of new rules and diktats. These have ranged from the reasonable to the ridiculous, but all have to be complied with by an increasingly confused industry. Air cargo has born the brunt of knee- jerk legislation and rule changes, but ocean freight too faces it own challenges in implementing forthcoming measures. The US Transportation Security Agency (TSA) is at the forefront of the changes in procedures and rules, but its lack of understanding of the logistics supply chain, combined with poor communication and rushed and ill-conceived rules, has led to many problems. The latest emergency measure, announced on 4 March, dictated that regulated agents are required to provide a statement confirming that shipments tendered on a master AWB were received from persons having an established account with a physical shipping address and a payment, invoice or credit history of at least one year. Failure to provide such a statement would lead to shipments undergoing rigorous physical security measures. Unbelievably the TSA decreed that this new rule would be implemented less than a week after the rule was announced. Non-compliance would also lead to large fines for airlines and/or agents. This ambush of the industry is in complete contrast to the TSA’s stated aim of consulting with all parties to achieve workable solutions. This ‘comply or face the consequences’ approach is not new at the TSA. Earlier this year it changed the period in which 100 per cent of inbound air cargo to the US must be screened from 2013 to the end of 2011. Quite how it intends to regulate screening from over 100 countries around the world and enforce its ambitious timeline is unclear. Meanwhile, the agency’s National Cargo Security Program has so far judged only one foreign government’s air logistics security requirements to “be commensurate with those of the United States.” There are a whole host of other regulations that have also created great strain on agents, particularly in the independent sector. The rules regarding 100 per cent outbound screening and the establishment of the Certified Cargo Screening Program (CCSP), has been of great detriment to SME forwarders, unable to afford their own screening equipment. The US Government Accountability Office (GAO) has admonished the TSA over its claims regarding 100 per cent outbound screening, stating that there’s no way the TSA can know that it has worked. “Airline industry representatives report screening data to the TSA, but the government has no way to verify the accuracy of the data. TSA cannot cross- reference its local screening logs, which have information on specific shipments, with the reports submitted by air carriers to TSA.” The TSA measures affect every agent with inbound or outbound cargo to the US and many of its rules are being considered or enforced by other bodies, including the EU. Continued on page 3 NEW security regulations will be imposed on the industry. Some simple steps will help ensure you are prepared and stay one step ahead of the opposition. 1. Ensure you have contingency plans for physical screening/scanning of all cargo. 2. Get accreditation with relevant known forwarder or known shipper schemes. 3. Get accreditation with CCSP if within the USA. 4. Get customs accreditation, such as AEO in the EU or C-TPAT in the USA. 5. Ensure full security audit of all members of staff. 6. Acquire the ability for electronic transfer of documents and data and the provision of real time information. 7. Lobby for change to ensure unrealistic regulations are not enforced using local and international associations, the WCA and the media. 8. Keep fully abreast of all security rule changes and be ready and able to adapt to these. Stay one step ahead of security diktats

Transcript of Independent freight forwarders are bearing the brunt of ...

4 APRIL 2011 SERVING THE INDEPENDENT FREIGHT FORWARDING COMMUNITY No.014

June 26 - 28, 2011 Venue : KICC Nairobi, Kenya

See you in Nairobi, Kenya

2nd African RegionalFreight Forwarders Conference 2011

5th Annual WCAPN Conference 2011 June 28 - 30, 2011

Venue : Intercontinental Nairobi HotelNairobi, Kenya

For more information,please contact WCA representative or

[email protected]

New security regulations – ignore at your peril

Independent freight forwarders are bearing the brunt of new rules

THERE is no doubt that security has become the biggest issue facing the logistics industry in 2011.

In the wake of the discovery of a potentially deadly terrorist attack, using fake printer cartridges as bombs aboard UPS freighter aircraft back in October, governments, regulators and industry bodies have debated formulated and implemented a whole range of new rules and diktats. These have ranged from the reasonable to the ridiculous, but all have to be complied with by an increasingly confused industry.

Air cargo has born the brunt of knee-jerk legislation and rule changes, but ocean freight too faces it own challenges

in implementing forthcoming measures.The US Transportation Security

Agency (TSA) is at the forefront of the changes in procedures and rules, but its lack of understanding of the logistics supply chain, combined with poor communication and rushed and ill-conceived rules, has led to many problems.

The latest emergency measure, announced on 4 March, dictated that regulated agents are required to provide a statement confirming that shipments tendered on a master AWB were received from persons having an established account with a physical shipping address and a payment, invoice

or credit history of at least one year. Failure to provide such a statement would lead to shipments undergoing rigorous physical security measures. Unbelievably the TSA decreed that this new rule would be implemented less than a week after the rule was announced. Non-compliance would also lead to large fines for airlines and/or agents.

This ambush of the industry is in complete contrast to the TSA’s stated aim of consulting with all parties to achieve workable solutions.

This ‘comply or face the consequences’ approach is not new at the TSA. Earlier this year it changed the period in which 100 per cent of inbound air cargo to the US must be screened from 2013 to the end of 2011. Quite how it intends to regulate screening from over 100 countries around the world and enforce its ambitious timeline is unclear. Meanwhile, the agency’s National Cargo Security Program has so far judged only one foreign government’s air logistics security requirements to “be commensurate with those of the United States.”

There are a whole host of other regulations that have also created great strain on agents, particularly in the independent sector. The rules regarding 100 per cent outbound screening and the establishment of the Certified Cargo Screening Program (CCSP), has been of great detriment to SME forwarders,

unable to afford their own screening equipment.

The US Government Accountability Office (GAO) has admonished the TSA over its claims regarding 100 per cent outbound screening, stating that there’s no way the TSA can know that it has worked. “Airline industry representatives report screening data to the TSA, but the government has no way to verify the accuracy of the data. TSA cannot cross-reference its local screening logs, which have information on specific shipments, with the reports submitted by air carriers to TSA.”

The TSA measures affect every agent with inbound or outbound cargo to the US and many of its rules are being considered or enforced by other bodies, including the EU.

Continued on page 3

NEW security regulations will be imposed on the industry. Some simple steps will help ensure you are prepared and stay one step ahead of the opposition.1. Ensure you have contingency plans for physical screening/scanning of all cargo.2. Get accreditation with relevant known forwarder or known shipper schemes.3. Get accreditation with CCSP if within the USA.4. Get customs accreditation, such as AEO in the EU or C-TPAT in the USA.

5. Ensure full security audit of all members of staff.6. Acquire the ability for electronic transfer of documents and data and the provision of real time information. 7. Lobby for change to ensure unrealistic regulations are not enforced using local and international associations, the WCA and the media.8. Keep fully abreast of all security rule changes and be ready and able to adapt to these.

Stay one step ahead of security diktats

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Head O�ce: P.O. Box 99646, Mombasa. Tel: (+254) 041 2314150Nairobi O�ce: Siginon Cargo Centre, JKIA Cargo Village. P.O. Box 55953-00200 City Square Nairobi. Tel: (+254) 020 822600

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WCA FAMILY NEWS 3

HUNDREDS of freight forwarding companies from around the world have signed up to a unique new IT system that is already revolutionising the independent sector.

The Worldwide Information Network (WIN), developed by WCA Family and Kale Logistics, was launched at the recent WCA Family Conference Week in Vietnam and created a maelstrom of interest from forwarders keen to acquire its capabilities.

With the test phase complete, the first companies that have elected to adopt the platform will be operational on WIN by mid-April.

WIN provides freight forwarders, for the first time, with a way of communicating electronic data and documents to and from other agents using their own independent IT systems. Using the preferred XML rules format, WIN will also communicate electronic data and documents directly with airlines, ground handlers, Customs, shipping

lines, ports and shippers, and has been acknowledged by IATA as an ideal platform for e-freight compliance.

WIN has received widespread acclaim and approval from regulators, associations and logistic companies from around the globe.

Of 600 freight forwarding companies approached during the two-day launch a total of 337 freight (56 per cent) committed to acquiring the system, with a further 129 (21.5 per cent) expressing an interest. Many of the companies requested to be invoiced at the event to ensure that they received the capability as soon as possible.

Since then hundreds more freight forwarders have committed to acquiring the system.

Tens of thousands of man-hours and significant expense has gone into developing WIN over a two-year period.

IATA are backing the system to provide the perfect tool for freight agents. IATA Cargo invited WCAF president,

David Yokeum, to explain the system and the importance of new technology for independent forwarders to delegates at the World Cargo Symposium on 9 March.

A test phase involving Cargomind (one of Austria’s top 10 forwarders in IATA rankings) and San Francisco-based DW Morgan proved WIN’s ability to communicate effectively between companies using their own independent systems.

Cargomind’s managing director, Paul Glaser, told delegates that as of now they were seamlessly exchanging data and documents electronically with D W Morgan and that WIN would help them cut mistakes, errors and inputting

time and certainly provide the ability to increase revenue and lower costs. He added that Cargomind and Morgan were already forwarder-to-forwarder e-freight compliant.

WCAF President, David Yokeum, told delegates that launching WIN to the members was the most important speech he had made in the network’s 13 years. “WIN is a low-cost multimodal system that will place the independent sector on a technological par with the most sophisticated multinationals. In a stroke the advantages these companies had in electronic communication, track and trace and e-freight compliance have been nullified.”

Africa Gangadhar Iyer [email protected] +233 543 900 159Asia Kenneth Yokeum [email protected] +66 89 771 1797China Dominic Wang [email protected] +86 159 2166 2716 Europe Monica Tappi [email protected] +31 6 5554 4690

India Ajay Pillai [email protected] +91 22 2673 4225 Sanjay Bhoir [email protected] +91 22 2673 4225North America Bryce Barnhart [email protected] +1 702 586 7893South America Mark Mairowitz [email protected] +54 911 5334 6578

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10110 Thailand Phone: +66 2 726 9060 Fax: +66 2 726 9070Website: www.wcafamily.com

WCA Family Regional ContactsEditor : [email protected]

Security measures leave freight agents in the dark

NIGERIA has taken a significant step forward in its attempt to ‘clean up’ its image and create a professional and corruption-free environment in which logistics companies can thrive.

As part of the process, the governing Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has approved the Council’s maiden register. According to a statement signed by CRFFN Registrar, Sir Mike Jukwe, the approved register contains 3,570 individuals and 898 corporate bodies totalling 4,458 members.

Five Associations applied for accreditation but only one, Association of Nigerian Licensed Customs Agents (ANLCA) was cleared for accreditation having found to comply with the regulations of the council.

Another four, National Association of Government Approved Freight Forwarders, National Council of Managing Directors of License Customs Agents, National Association of Air Freight Forwarders arid Consolidators and Association of Registered Freight Forwarders of Nigeria were given provisional accreditation for six months to meet the requirements.

An investigation panel and disciplinary tribunal will soon be established to enforce compliance.

From page 1It is becoming increasingly apparent

that intelligence services will play an increasingly prominent role in the prevention of terrorist attacks on the logistics supply chain.

The UPS incident brought home to regulators that real-time data on the exact location of a consignment during its transport is a vital tool. There is little doubt that in the future forwarders and airlines will be required to provide real-time electronic data on the status of cargo to intelligence services.

At the present time few logistics companies have this ability, but low-cast options for forwarders to acquire this technology will become available.

WCA Family, having recognised the demand for an all-encompassing system that can transfer all data and documents electronically and provide track and trace capability, have developed the WIN system.

IATA, TIACA and FIATA have already identified this need, stating through the Global Air Cargo Advisory Group’s Security Task Force, that it will focus on the “advanced electronic information process and timelines to improve aviation security assessment”.

Port security is another area in which legislation is being drafted. At the recent National Shippers Strategic

Transportation Council Conference, delegates were informed of a range of new rules by which they must abide.

Col. Randall Larsen, executive director of the commission on the prevention of Weapons of Mass Destruction, Proliferation and Terrorism, said: “People are focussed on putting detectors on the seaside part of the port and are not putting anything land side. Congress is not taking heed and making the right decisions when it comes to port security”.

Beth Ann Rooney, chief of security at the Port of New York/New Jersey, is sceptical about the plans to introduce 100 per cent scanning of all shipping containers. She believed that terrorists could easily bypass these checks, even to the point of putting aluminium foil around a nuclear device would disguise it. She added that the measure would also have no impact whatsoever on the 700,000 or so automobiles that come off ro-ro vessels into the port.

CRFFN register is approved

WIN launch creates a surge of interest

Sir Mike Jukwe released the new CRFFN registerq

4 WCA FAMILY NEWS

RECORDS were broken and tens of millions of dollars of business was conducted at the record-breaking WCA Family Conference Week, held in Ho Chi Minh City, Vietnam from 20 to 27 February.

Now undisputedly the premier networking conference in the world for independents freight forwarders, the Family Week was held at the Saigon Exhibition and Convention Center (SECC), at the heart of one of the world’s fastest growing emerging economies.

The optimistic mood of independent freight forwarders, as the logistics industry grows rapidly following the worldwide recession, was evident as over 1,700 freight forwarder delegates attended during the week long event.

With over 100 countries represented, the global reach of the conference set a new benchmark in worldwide agent networking, combining over 50,000 individual One-on-One meetings, with many more informal associations formed at the range of social events including gala dinners, cocktail receptions and city tours.

The first part of the week was dedicated to members of the World Cargo Alliance, the first network formed by the WCA Family. With over 600 members attending,

the conference proved to be hugely successful and set the standards for the week. Networking sessions were reported as ‘among the most successful ever’ at a WCA conference and the companies that had acquired booths were delighted with the impact and extra profile provided.

The 13th World Cargo Alliance Conference was followed by the 3rd WCA Family Annual Conference, which brought together over 1,100 freight forwarders from every network within the WCA Family. The reputation of the event has grown to such a degree that bodies such as IATA addressed the delegates, as the influence and importance of the independent sector is finally gaining overdue recognition.

The introductory plenary session included the launch of WCA Family’s latest product, designed and developed solely to benefit freight forwarders. The Worldwide Information Network (WIN) is a revolutionary new system designed to allow freight forwarders to communicate electronically with each other whatever in-house system they use (see page 3).

The One-on-One sessions filled the vast SECC hall as thousands of meetings were conducted each day. The sheer scale and size of the event also attracted Vietnamese

TV, radio and newspaper journalists as the country’s major business story of the week. In addition, global industry publications attending for the first time were startled by the vigour and energy of the whole event.

Post event surveys revealed that delegates were extremely pleased with the opportunity for new business the conference provided and the quality of the delegates attending. The only complaint regarded the average quality of food within the

SECC, something that will not be repeated when the WCA Family Week returns to its spiritual home in Bangkok in 2012.

President of WCA Family David Yokeum said: “The 2011 Family Week was undoubtedly a great success. The attendance broke all records and the sheer amount of business generated by the members was breathtaking. I wish to sincerely thank all members who participate and I look forward to seeing you all at the next conference”

WCA Family Week in Vietnam declared “the most successful yet”

RUSS Steele, SR International’s CEO looks back to the very first conference.

“I am overwhelmed at how much our network has grown from the 1st WCA conference in Miami to the 13th in Ho Chi Minh City.

I remember back when we all gathered in a small hotel conference room and I was just grateful to be a part of a network. I had started my company a few years earlier and found it difficult to compete with local forwarders, because of a lack of known and trusted agents. WCA helped me through this difficult phase.

I am always happy to see old friend’s faces from that first year. They know what I know. My how far we’ve come! All of us are very proud to be charter members. I’ve made some lifetime friends through the WCA. It has given me the opportunity to know some of the finest people in the world. Conventions now are completely different and the products and services offered by the WCA Family are outstanding.

Last week’s convention was by far the most successful I have ever attended. Not only did we discover new business opportunities that only a very large meeting could provide, I met some new friends too. Working with friends instead of “just another agent” is what this is all about. Multinationals simply can’t offer that. Without the WCA’s continual growth and support, my company would not be where we are today. I would encourage all members to attend next year’s convention.”

Conference veteran looks at how the event has grown

Russ Steele (left), with WCA Family president David Yokeumq

IATA has elected not to allow FIATA or other organisations to be accredited to train freight forwarders. It will instead push its own training courses as a monopoly in theq

WCA FAMILY NEWS 5

“The conference was a great success for our Port and for our forwarding agents. We have many good contacts that will help us to grow in the near future.”

Rosa Puig Vidal, Directora, Port de Barcelona

“Our first experience at the conference with a booth and we are completely satisfied of our choice, everything was really great. The booth gave us a big opportunity to promote our company. It was my first WCA conference and everything was fantastic. I was very impressed by the great organization – perfect!”

Claudio Tiraboschi, Log Service International

“On behalf of the Delmar Group, my senior staff and myself I just wanted to send you a short note thanking you and your staff for a job well done. Our booth, banners and other considerations were done exceptionally well (and I tend to set the bar pretty high). Your people met and exceeded our expectations.”

Robert Cutler, President & CEO, Delmar Int’l

“It is always a meeting vibrating with business talks. If we get WIN in place WCA will dominate the market.”Johan Rosenkvist, AirLog Group

“The event is fantastic and extremely well organised, a credit to the whole WCA group. Congratulations on putting together such a slick, well organised event.”

Sean Bradley, Managing Director – Middle East, Barloworld Logistics

“The conference was perfect for building up the relationships with all the other family members. Also the meetings with companies located in Africa were all interesting and helpful.”

Stefan Wendl, Branch manager, Group7

“The conferences have proven to be excellent opportunities to meet many people, discuss business opportunities and for networking in general. The WCA Network truly has an added value for members doing business with their fellow members.”

Jos Swets, Sales Manager, Fast Forward Freight

“The conference itself was great. We really encourage all members who have never come to the Conference to attend next year. Putting a face to a partner is the best way to develop a long-term partnership.”

Bertrand de Carheil, Overseas Network Coordinator - Head Office, Philippe Fauveder

“The WCA Family Conference was an extraordinary success. Not only due to the impressive number of attendees, but for the spirit and power that impregnated the entire conference. There was not a single moment in which you were not discussing business with partners worldwide.”

Michael J. Voss, General Manager, Sparber Air Cargo

“This year again the WCA conferences have permitted us not only to meet during the same week, at the same location our key partners all over the world, but thanks to the large participation we have also created new contacts. We would like to thank the WCA family for the wonderful organization.”

Tarek Zaki Hegazy, Overseas Network Director, Qualitair & Sea

WCA Family Week in Vietnam declared “the most successful yet”What the delegates said:

6 WCA FAMILY NEWS

WCA APLN IGLNTop African agents Mathez Transports Int’l, Senegal Expolanka Freight, Kenya GIFCO, Egypt

Top Asian agents On Time Express, Hong Kong Everest International Logistics, China Everokgroup Int’l Forwarding, China

Top European agents Qualitair & Sea International, France Sparber Group, Spain Fast Forward Freight, Netherlands

Top India Sub Continent agents Dynamic Logistics Int’l, Pakistan Dynamic Shipping Agencies, Pakistan Atlas De Cargo, India

Top Latin American agents Greenwich International, Brazil DC Logistics, Brasil B&M Logistica Internacional, Brazil

Top Middle East agents Globalink Logistics Group, UAE Bin Yousef Cargo Express, Qatar Vertex Express, Egypt

Top North American agents Radiant Global Logistics, USA Advantex Express, Canada BTX Air Express, USA

ToP AGENT 2010 Radiant Global Logistics, USA DC Logistics, Brasil Everokgroup Int’l Forwarding, China

Top agents scoop WCA Family awards

WCA Family awards are the ultimate recognition from their peers for excellence and quality of service. Members of each applicable alliance cast hundreds of votes in each category.

The prestigious Top Agent for 2010 was closely contested in each network and the following companies emerged with the coveted title.

WCA: Radiant Global Logistics, USA; APLN: DC Logistics, Brasil; IGLN: Everokgroup International Forwarding, China.

Each network also presented regional awards to the top performing companies at the gala dinner event held at the SECC.

Our congratulations go to each and every award winner for offering outstanding service to other members during 2010.

Michael von Loesch (right) from Radiant Global Logistics receives the Top Agent for the WCA award from WCAF president, David Yokeum

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Everokgroup Int’l Forwarding won the top IGLN award

DC Logistics, Brasil won Top APLN Agent for 2010

q

q

WCA FAMILY NEWS 7

IATA has faced a onslaught of criticism from freight forwarders and industry associations following its refusal to adopt a new process dealing with the accreditation of freight forwarders and a lack of progress in reforming the CASS payment system.

Only a few short months ago the industry was told that all parties within the global logistics industry were coming together under the Global Air Cargo Advisory Group (GACAG). They would act in unison to confront the important issues facing the industry and heal the often-fractious relationships between airlines, forwarders, handlers and customs.

Yet two of the main parties of GACAG, FIATA and IATA, are already at each other’s throats. FIATA stated that IATA needed to “face reality” and recognise freight forwarders as its key customer group and treat them with the respect they deserve.

Forwarders urged IATA to talk on an equal footing about common standards and best practices in the areas of security, paperless cargo handling, financial transactions and other professional issues.

The anger emerged after the IATA Cargo Agency Committee at its conference rejected a recommendation from the IATA/FIATA Consultative Council to amend IATA resolutions dealing with the accreditation of

training for freight forwarders. And place FIATA and IATA on an equal footing.

Agents were dismayed that the launch of GACAG had led them believe that IATA was genuinely interested in changing its ways, and seek consultation and cooperation with other sectors of the supply chain.

Air Freight Institute chairman, Rudolfo Sagel was clearly incandescent at the snub, stating that: “IATA’s role should no longer be that of a regulatory body of the forwarder. The historical reasons for IATA Accreditation and Training of Forwarders dating back some 50 years, are no longer valid, as the air cargo industry has matured”.

He added that: “the industry relationship between forwarder and airline must evolve to reflect today’s reality. The forwarder is the customer of the air carrier, with over 80 per cent of international shipments contracted as principal and less than 20 per cent as agent”.

It is clear that a monopoly on the expensive and compulsory IATA training programmes is not a healthy situation. Other professional bodies or commercial companies, not just FIATA, should be empowered to provide accredited training courses to break this monopoly. This would provide the industry with much-improved value for money, accessibility and quality.

But here-in lies the crux of the matter. IATA has transitioned over the years from a regulatory body designed to promote and facilitate the industry to a money-making organisation, obsessed with monopoly control and revenue-generating.

This is why IATA is so determined to keep control. Flying Typers reported that IATA has instead launched its Air Cargo Professional certification. This is designed to recognise competence for cargo personnel of airlines and cargo personnel of freight forwarders. This was announced with no consultation with the freight forwarding community and could be interpreted as another way for IATA to ‘print money’.

With an application fee per person of

US$100, a certification fee of $300 and a renewing fee of £250 every two years it has the potential produce revenues in the tens of millions per year – no wonder IATA wants to exclude all competition.

Forwarders are also ready to rebel against increasing dissatisfaction at the current status of the CASS system. IATA has thus far refused to address concerns that they have no say in the future of the system and are told to just obey the rules. The system enforces rigid bank guarantees on forwarders with perfect payments histories. It takes no account of risk and disregards the realities of toady’s business practices enforcing mandatory collective credit policies and collective credit terms.

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IATA urged to ‘face reality’ and respect agents

EVEN more concerning is yet another IATA CASS cash-cow that is hurting the independent sector, provides an unfair competitive advantage to multinational forwarders and allows airlines access to highly sensitive data on each forwarder.

IATA collects all the data on air cargo shipments and then sells it back to the airlines at hugely inflated prices. One cargo airline commented to WCA Family that this was a hidden scandal: “They are taking our data and forcing us to pay huge sums to access it. IATA seems to be more concerned about increasing its revenues than helping its members”.

More worryingly is that this data is falling into the hands of multinational forwarders who are using it gain competitive data and a huge advantage over independents. This data is hugely detailed. It comprises statistics on every forwarder putting cargo through every gateway. It provides tonnage, revenue, yield and a host of other information that will allow them to work out a forwarder’s pricing structure on a per gateway-to-gateway basis. For example it can compare highly-detailed tonnage, revenue and yield data for every forwarder between, say, London and Athens. This allows companies with access to the data to tender for business and marginally undercut the current provider to secure the business.

WCA Family has seen evidence that multinationals have access to all this data, whether through a relationship or ownership of an airline, or having been passed the data by an airline partner. The information is not secure and other logistics providers and even the media have managed to access the data.

Even if this is not illegal it is highly uncompetitive, distorts the market and gives a huge advantage to companies powerful enough to access the data.

At least two WCA Family member forwarders have approached IATA to enquire about purchasing this data. One responded by saying “we have had nothing from IATA, we cannot access this level of information and despite requests have not received a price or details of if or how it can be obtained.

The data IATA compiles should be for the good of the industry, not a way to make money and allow the cash-rich or well-connected companies to unfairly benefit.

CASS data access labelled ‘unfair’

IATA has elected not to allow FIATA or other organisations accreditation to train freight forwarders. It will instead push its own training courses as a monopoly in the industry

q

8 WCA FAMILY NEWS

African business bonanza for freight forwarders

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BY THINKING OUTSIDE THE BOX!

THE 2nd African Regional Forwarders Conference is set to be the premier networking opportunity for independent freight forwarders in the fast-growing and vibrant African market.

Over 350 freight forwarding delegates will gather in Nairobi, Kenya, from 26-28 June for two days of highly-productive One-on-One business meetings and a host of social networking functions.

By ‘Bringing the World to Africa’, the conference will attract top independent companies from around the world to forge new partnerships and create highly profitable revenue streams with the best African freight forwarding agents.

The 1st African Regional Forwarders Conference, held at the same venue in December 2010, sold out well in advance and this second event is likely to be heavily oversubscribed. The feedback from the inaugural event was extremely positive and this second edition will provide opportunities for all agents, including those that failed to secure a delegate place in December.

In addition, a limited number of high-profile meeting booths are available for delegates looking to maximise impact and create a unique and invaluable profile for their companies.

The conference is open to all independent freight forwarding companies from around the globe looking to expand their business on the international stage. It is the only event dedicated entirely to the freight forwarding and logistics sector in Africa.

Support for the event is strong from every region within Africa and is supported and endorsed by a wide range of associations. These include the Ghana Institute of Freight Forwarders, the Council for the Regulation of Freight Forwarders in Nigeria, Kenya International Freight and Warehousing Association, the Walvis Bay Corridor Group as well as the China International Freight Forwarders Association.

With the luxurious Intercontinental Hotel venue only able to accommodate a maximum of 360 delegates, and the

next African Regional Forwarders Conference not scheduled until 2014, agents interested in attending are encouraged to secure their delegate place now.

For more information or to book you place visit: www.wcafamily.com, or email: [email protected].

ONE of the world’s leading providers of project and heavy lift shipping has all but ceased operations as Beluga Shipping and Beluga Chartering have filed for insolvency, alongside a significant number of other Beluga Group subsidiaries.

The collapse comes after the company was rocked by allegations of major financial irregularities. Unable to pay its charter bills over 50 of Beluga’s 72 vessels have been withdrawn by shipping

funds and vessel owners.Following the discovery

of the irregularities, Beluga’s main shareholder Oaktree Capital, which has a 49.5% stake, filed criminal charges against Beluga chief executive officer Niels Stolberg, who has a 48% share in the company. Stolberg has denied the charges.

German media reports state that on 23 March police raided the offices of Beluga shipping group, looking for evidence of possible fraud by Stolberg.

Prosecutors declined to say if police found anything during the search of Beluga’s waterside offices.

Following the initial insolvency filings for Beluga Shipping and Beluga Chartering, Beluga Fleet Management, Beluga Marine Service, Beluga Offshore Crewing and Beluga Sea Academy have subsequently filed for insolvency. Edgar Grönda from Schultze & Braun has been appointed preliminary insolvency administrator all Beluga companies.

Beluga files for insolvency

Radiant Global makes major acquisitionPROMINENT and progressive WCA Family member, Radiant Global Logistics, has announced it has agreed to acquire New Jersey-based DBA Distribution Services, a privately held company that commonly operates under the trade name Distribution By Air (DBA). DBA has a strong reputation for providing a full range of international and domestic transportation and logistics services across North America.

Distribution By Air services a diversified account base including manufacturers, distributors and retailers through 25 logistics offices located across North America. Based on historic financial statements, Distribution By Air generated approximately US$91.6 million in revenues for the 12 months ended August 2010.

On the acquisition, Radiant Chairman and CEO Bohn Crain remarked: “Our plan is to continue to operate the DBA brand alongside Radiant’s existing network brands while leveraging the increased and substantial purchasing power of the combined group. This transaction is the ideal next step to accelerate Radiant’s growth and

further strengthen our network with an expanded network footprint and enhanced service offering. Through the purchase of DBA, Radiant will operate more than 100 stations in North America, giving us one of the largest footprints in our industry.”

Michael von Loesch, Vice President of International Services at Radiant’s Corporate Office in Bellevue added: “In the international arena we will gain additional opportunities to strengthen our overseas partnerships”.

von Loesch eyes international expansion q