BILL S-211, an Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff, had a first reading November 24, 2021 in Canada’s Senate.
The Fighting Against Forced Labour and Child Labour in Supply Chains Act imposes an obligation on certain government institutions and private-sector entities to report on the measures taken to prevent and reduce the risk that forced labour or child labour is used by them or in their supply chains.
The Act provides for an inspection regime applicable to entities and gives the Minister the power to require an entity to provide certain information. This enactment also amends the Customs Tariff to allow for a prohibition on the importation of goods manufactured or produced, in whole or in part, by forced labour or child labour as those terms are defined in the Fighting Against Forced Labour and Child Labour in Supply Chains Act.
The Act states the following:
Whereas forced labour and child labour are forms of modern slavery; whereas Canada, as a party to the eight fundamental conventions of the International Labour Organization on fundamental labour rights — including the Forced Labour Convention, 1930, adopted in Geneva on June 28, 1930; the Abolition of Forced Labour Convention, 1957, adopted in Geneva on June 25, 1957; and the Worst Forms of Child Labour Convention, 1999, adopted at Geneva on June 17, 1999 — is determined to contribute to the fight against modern slavery; child labour means labour or services provided or offered to be provided by persons under the age of 18 years and that:
(a) are provided or offered to be provided in Canada under circumstances that are contrary to the laws applicable in Canada;
(b) are provided or offered to be provided under circumstances that are mentally, physically, socially or morally dangerous to them;
(c) interfere with their schooling by depriving them of the opportunity to attend school, obliging them to leave school prematurely or requiring them to attempt to combine school attendance with excessively long and heavy work; or
(d) constitute the worst forms of child labour as defined in article 3 of the Worst Forms of Child Labour Convention, 1999, adopted at Geneva on June 17, 1999
The definition of child labour was revised because the original definition was over-inclusive and difficult to manage (there are no uniform labour laws in Canada, and it may be inappropriate to apply Canadian norms abroad). The old definition was also under-inclusive because it only referred to the worst forms of child labour. For this reason, the new version of the Bill will limit the application of Canadian laws to Canada but will add new subsections (b) and (c), inspired by the ILO definition of child labour.
The purpose of this Act is to implement Canada’s international commitment to contribute to the fight against forced labour and child labour through the imposition of reporting obligations on:
(a) government institutions producing, purchasing or distributing goods in Canada or elsewhere; and
(b) entities producing goods in Canada or elsewhere or in importing goods produced outside Canada
The Bill has passed first and second readings, which means that it is now going to committee stage before the Senate Standing Committee on Human Rights.
Like earlier versions of this Bill, the goal is to improve transparency in supply chains. If adopted, businesses subject to the Act would be required to file and publish annual reports on the steps they are taking to prevent and reduce the risk that forced or child labour is being used in their supply chain.
According to the Canadian Chamber of Commerce, in an analysis of the Bill, the revised Bill provides greater certainty and clarity for business in several respects.
Some elements of these improvements are the following:
Other elements of note include:
A February 2022 whitepaper from DHL discussed the topic of circularity, and its role in fashion and consumer electronics.
At its heart, circularity describes a departure from the traditional produce-sell-use-waste paradigm toward more sustainability.
A circular economy could be thought of as a design for an ecosystem that builds on sustainability, visibility, and multidirectional flows. To move away from the traditional paradigm, production volumes and materials need to be optimized, product life cycles must be extended, new models for product use have to be developed, and solutions for end-of-life recycling need to be found.
According to research, this shift in the supply chain paradigm has the potential to cut emissions by up to about 40%, and it is more cost effective than any other approach to decarbonizing the supply chain.
Circularity can also positively impact other environmental and social issues, such as waste, land use, water use, and poor working conditions.
Because of its potential, circularity has received substantial attention across stakeholders and industries as a leading and holistic solution. Fashion and consumer electronics are at the center of the conversation and predestined as frontrunners in the solution given the characteristics of the products, consumption behaviors and usage-waste cycles within these industries. Since increased circularity builds on an increasing number of multidirectional flows of goods, logistics service providers are the needed enablers and accelerators of the transition.
As such, this particular stakeholder group is positioned to take on the task of redesigning these flows in highly efficient, user-friendly ways.
According to the whitepaper, the fashion and consumer electronics industries drive a large share of GHG emissions and other environmental impacts (including resource, land and water use, as well as waste).
Together, their carbon footprint makes up approximately 6% of global emissions. Consider that currently, around 20% of garments produced are never used, and smartphones are often exchanged after just 2–3 years.
Therefore, the positive impact that circularity in these two industries could have is pronounced, and industry front-runners are actively participating in the paradigm shift toward circularity.
WHY FASHION AND CONSUMER ELECTRONICS ARE IDEAL CANDIDATES FOR CIRCULARITY
Manufacturing in both fashion and consumer electronics requires vast amounts of often nonrenewable resources (including raw materials and energy inputs) and is the source of significant emission levels.
Compared to leading sectors such as automotive parts, for example, the reuse, refurbishing, and recycling processes in fashion and consumer electronics are less advanced and widespread.
Fashion and consumer electronics have high reach and relevance to almost everyone. Some sectors are relatively niche, others have larger consumer bases – and then there is fashion and consumer electronics: almost every consumer is active in these two retail categories in both their private and professional lives.
The supply chains of these two sectors are very complex and globalized. They cross many continents and companies, necessitating sophisticated coordination in the supply chain for maximum impact.
Fashion and consumer electronics have high visibility and multiplier effects. The industries are often in the focus of media attention and play a prominent role in the public dialogue. A move toward circularity in fashion and consumer electronics could therefore have broad signaling effects beyond the two industries, with both potentially serving as role models and helping other industries become more circular.
While fashion and consumer electronics represent particularly large opportunities in circularity, many of the circularity challenges are universal. Hence, the insights presented here can potentially be applied to other sectors, and industries across the board could certainly mitigate their environmental impacts by making circularity a bigger part of their product life cycles.
The global fashion and consumer electronics industries have a sizable impact on climate change. A conservative estimate for the fashion sector suggests that it is responsible for about 4% of annual global GHG emissions (up to 8%, according to other sources) and that the consumer electronics sector’s share of GHG emissions is approximately 2%. Combined, these sectors represent twice the share of GHG emissions of the aviation industry (3%).
At current consumption levels and under current approaches to managing the life cycles of these products, emissions from these industries would grow by 60% until 2030 and account for around 20% of the UN GHG emissions target for 2030, which is set at half of today’s emissions.
The fashion industry depends on non-renewable resources as well, as synthetic fabrics (such as polyester) are often produced using fossil fuels. Another major issue is the extensive land use required by these industries. Fashion clearly has the largest impact, requiring 40 million hectares, mostly for cotton farming. This means that an area larger than the size of Germany and Switzerland combined is used.
Waste from fashion products is often landfilled or incinerated – about 75% of the produced volume – causing additional emissions.
For example, in fashion, 71% of carbon emissions occur in the production phase, while around 20% of emissions are caused during product use (especially by washing).
The 5 Rs of circularity – reduce, repair, resell, refurbish, recycle – provide the critical dimensions along which circularity can be achieved.
REDUCE:
There is significant overproduction, especially in fashion (20-30%). “Reduce” is the circularity “R” that refers to production, and it does so in two ways. First, it aims to reduce the overall volume; fewer new products need to be manufactured when the lives of existing products are significantly extended, production is increasingly on demand and overproduction is limited. Second, circularity also means that the profile of product inputs changes, where a shrinking share of inputs are raw/virgin materials and the negative impact of resource and materials use shrinks accordingly.
REPAIR:
Fixing damaged products whenever possible, either via do-it yourself home repair or via professional repair services, is a clear intervention toward extending the life and maintaining the value of many consumer goods. Several fashion companies are already piloting offerings for fashion repair in combination with consumer education (for example, Patagonia’s free repair offering to end consumers). In consumer electronics, Apple recently announced an offering of spare parts for common phone and laptop repairs to consumers, albeit limited to selected models. Government legislation known as “right to repair” reinforces this activity by ensuring that goods – particularly household appliances – are manufactured with ease of repairability in mind.
RESELL:
The average time a fashion product is used is little more than 3 years. That length of time is just 2 to 3 years for smartphones. Reselling is the opportunity for a product owner to sell products that are still highly functional but that they no longer wish to use. The reduction in GHG emissions from resale is significant, but resale rates in fashion and consumer electronics are lower than they are in other sectors –for example in automotive, where reselling cars is the default.
In addition, there is a significant volume of totally unused fashion products (about $2.1 trillion) in consumers’ closets around the world. For example, the average UK consumer owns unused garments worth $270. These products could be put to productive use via resale. Strong moves in this resale direction are already visible today, for example, in the fashion industry.
A new ecosystem of digital resale-as-a-service offerings is emerging, where players such as Trove and Reflaunt operate the resell business on behalf of brands and retailers. In addition, both established (such as eBay, Zalando) and recently launched (such as Vinted) independent digital marketplaces allow for a peer-to-peer resale of garments.
Globally, use of recycled materials in fashion production remains low, with about 95% of garments produced from virgin materials. Some fashion retailers, however, are offering drop-off options for used
clothing in combination with shopping vouchers to motivate more sustainable consumer behavior (for example, H&M with its “Let’s close the loop” take-back program for used clothes).
B: CIRCULAR SUPPLY CHAIN
As circularity ultimately revolves around the movement and flow of goods, supply chains have to be redesigned and new supply models developed. Two main challenges arise, namely i) how to capture end-of-life products and unused items to reintroduce them into the cycle and ii) how to design product flows and cycles in the most suitable, efficient, and environmentally friendly way. Accessing end-of-life products will require convenient return flows and collection that incentivize consumers to participate.
The volume of return flows will increase as a result of circularity, implying that return flows need to be well integrated into the existing supply chain. As such, products with different post-sale interventions (for example, reselling, refurbishing, or recycling) or from both B2B and B2C flows (such as unsold items and consumer returns) can be transported and processed in a consolidated form to make the process convenient and efficient for consumers and logistics players.
During a strategy session in 2018, Vancouver-based Courtney Agencies brought its attention to building its business in a way that is conscious of its impact on the environment, its contribution to local and global communities, and its responsibility to its people.
“We know that we have a pretty small footprint,” said President Paul Courtney. “But we want to be counted with the companies who truly want to make a difference, and access any point of influence we may have to say that this is important.”
Every decision Courtney makes now runs through its lens of social purpose and social responsibility. To get started, Courtney worked to baseline its carbon impact at the operational level and set goals for reduction of paper use and electricity, earning them Climate Smart certification. That work provided a good launching point for its application to be certified as a B Corporation.
B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials.
Courtney participated in the “Getting to 80” program offered by Decade Impact – a consulting company that educates and supports organizations in advance of making a B Corp application. Eighty is the score that earns B Corp certification; to maintain certification requires the organization’s commitment to continue to make changes and establish programs to increase their scores year over year.
The assessment is divided into six categories: Governance (ethics), Workers (development and security), Community (diversity/inclusion, local purchasing, donations), Environment (facilities and carbon intensity), Customers (stewardship) and Disclosure (openness). Examples of how their commitments have been playing out – in the last two years, Courtney has earned a spot as one of BC’s Living Wage Employers, established a new RSP program for its staff, purchased offsets for its own operations-level carbon emissions, developed the plan to establish a carbon calculator and offsets for clients and, most recently, made a corporate donation plus matched giving for staff who want to support Ukraine.
Courtney’s data is now under assessment with B Corporation – and they are eager to get their report card. Even if this first application results in information about where they can strengthen the next one, Courtney is eager to learn where it can make positive change.
In addition, Paul is adding his voice to the larger conversation about the environmental impact of the shipping industry as a whole. He uses his blog and social media to amplify messages such as those about the World Trade Organization’s social responsibility and social priorities as articulated by Director-General Dr Okonjo-Iweala.
“This is not being done with a view to make us more competitive — we wholeheartedly invite others in our industry to join us. There is still a need for educating each other and our customers on how to balance price, planet and people.” Paul added.
There are stories of more and more companies stepping up to reduce their carbon impact — including what happens at the hands of their suppliers. Moves in this direction are good business practice and have the potential for good growth.
Paul Courtney is a member of the CIFFA Sustainability Committee* and welcomes the conversation with all members about why and how to think and act like a global citizen.
*The mandate of the CIFFA Sustainability Committee is to identify best practices in the areas of sustainability and to provide guidance on the development and implementation of sustainability goals to membership (Read full text). Discover the 13 CIFFA National Committees.
In some ways, given geopolitics, instability and the overall chaos of the last few years, it would seem like both the worst and the best time to talk “Sustainability.”
Greener fuels across all modes, a reliable and stable source of renewable power sources, the equal and humane treatment of all human beings, regardless of age, religion, colour, sex, etc., the reduction of waste and overconsumption across the world, a fair system to measure the offset of carbon consumption? All within reachable, attainable and universally agreed-upon timeframes?
At the time of writing the world we occupy has been distracted by war, pestilence, fear, scarcity and economic instability. Hardly a great climate for change, and yet, maybe a true catalyst for lasting change.
We’ve decided to dedicate a large section of our Spring Forwarder to the topic of Sustainability.
Host and CIFFA Eastern Committee Chair Angelo Loffredi launched the gala followed by opening remarks by CIFFA Executive Director Bruce Rodgers.
Julia Kuzeljevich, Director of Policy and Communications for CIFFA, presented the Donna Letterio Leadership Award to 2020 recipient Sylvie Vachon (award accepted in her absence by Angelo Loffredi) and to 2022 recipient Samara Millin.
CIFFA also honoured three of its departing directors: Paul Hughes, Larry Palmer and Edna Carr.
Heartfelt thanks go out to the Eastern Events Committee, headed by Angelo Loffredi, and to the evening’s Event Sponsors:
Diamond National Sponsors:
Ruby National Sponsors:
Thanks, too, to the CIFFA marketing and events team in the secretariat office for their contributions to this event. (View Pictures Here)
TORONTO, May 9, 2022. — CIFFA, the Canadian International Freight Forwarders Association, is pleased to announce the appointment of three new Directors to its National Board: Martin Schultz, Jodie Wilson, and Randy Hnatko. “We are pleased to welcome Martin, Jodie and Randy to our Board of Directors. They offer a wealth of knowledge and experience that will be indispensable to CIFFA,” said Bruce Rodgers, Executive Director.
Martin Schultz is the Global Procurement Manager with Manitoulin Global Forwarding (MGF). Although his forwarding experience is short, he spent over 20 years working as an ocean carrier (most of which were at a CIFFA Associate Member). His expertise is all facets of ocean transportation. He has recently completed both CIFFA and FIATA certificates.
He served for several years on the Toronto Steamship Association board of directors, including the presidency. He also served on special committees after the presidency. Over the course of his career, he served on several internal company committees, and on an advisory committee to Senior Management.
Jodie Wilson has been with Rhenus for almost 2.5 years, as Rhenus acquired Rodair where Jodie worked for several years before the acquisition. Prior to that she was with LCL Navigation for 17 years. Overall Jodie has been in the industry for approximately 35 years and in those years has worked as a freight forwarder as well as an NVOCC, mainly in a sales role. Jodie has volunteered on the CIFFA Central committee for approximately 22 years and has previously held roles on CIFFA’s National board as the Ethics Chair and Central Chair. Jodie has been involved in Charity events such as Habitat for Humanity and AllPaws rescue.
Randy Hnatko is President of Sphere 1 Logistics Inc. and Trainwest Management and Consulting Inc. Sphere 1 Logistics Inc is British Columbia’s First Logistics Management and Freight Consulting Firm located in Vancouver, Canada, providing International Shipping and Global Supply Chain Solutions incorporating Air, Ocean, Courier, Trucking and Intermodal Freight Services. Randy is a trainer, speaker, author and consultant to domestic and international companies. He has trained many organizations ranging from small/medium sized companies up to Fortune 500 companies. In 2017 he was nominated for Businessperson of the Year and his company was nominated for Business of the Year and Community Spirt Award from the Tri-Cities Chamber of Commerce; in 2019 he was nominated in the category for Business Innovation for the Burnaby Excellence Awards held by the Burnaby Board of Trade.
Meet the rest of the CIFFA National Board of Directors
CIFFA’s Ontario Young Freight Forwarder Committee held its first live event April 28 since the onset of the COVID-19 pandemic.
The event was a networking dinner in Mississauga, attended by close to 100 guests. Following a three-course dinner, four leaders in supply chain participated in a panel discussion:
(Tracy McLean, CAIB, Senior Vice President, Global Logistics Insurance, NFP, was scheduled on the panel but unfortunately could not attend.)
The panel was moderated by Julia Kuzeljevich, CIFFA’s Director of Policy and Communications.
Rachael van Harmelen, Chair of the Young Freight Forwarder Committee, introduced the speakers and was instrumental in coordinating details for the event over the course of several months, as were CIFFA’s Secretariat, Charlotte Clarke, Nick Lutz and Bruce Rodgers.
CIFFA thanks its event sponsors for their support of the event.
TORONTO, April 27, 2022. — CIFFA, the Canadian International Freight Forwarders Association, is pleased to announce the winner of the 2022 Donna Letterio Leadership Award, Samara Millin, Station Manager, AIT Worldwide Logistics (Canada) Inc. (Previously Connexion World Cargo).
CIFFA introduced the annual Donna Letterio Leadership Award in December 2015. The award is granted annually in memory of former CIFFA President Donna Letterio, who passed away in August 2013. The award recognizes a woman in the global freight logistics sector who has demonstrated, as Donna did, professionalism, commitment, leadership and a passion for excellence in her career and in her life. In addition to the award, CIFFA will prepare a cheque in Millin’s name for $1,000 which will be presented to Bladder Cancer Canada.
“CIFFA is very proud to continue with this very prestigious award, recognizing women of influence in our industry, which will also inspire the next generation of women leaders. We are very pleased to present this award to Samara, who exhibited all the qualities that the award represents,” says Bruce Rodgers, Executive Director, CIFFA.
Samara joined the British Army in January 1996 in a logistics role, and 26 years and many countries later, she says there isn’t a part of Logistics and Freight Forwarding she hasn’t had the chance to experience especially as in the military it was “all hands-on deck”. When offered the position of Canadian Route Development Executive, Samara saw this as a great opportunity to settle down and relocate to Canada. Next was the opportunity to open an office, hire and train staff and become a Station Manager.
“My passion for this industry has enabled me to train and manage numerous colleagues and see them succeed. I’m fortunate to have made some wonderful lifelong friendships with coworkers, customers and suppliers around the world. I think it’s due to my happy, friendly nature coupled with honesty and great communication. Volunteering has been an obsession and I have been doing it since childhood. One of my favorite things to do is use my planning and organizing skills to develop and take part in fundraisers and events. For example, a yearly haunted house, escape rooms and on the committee for local Canada day Celebrations. As a volunteer for Big Brothers Big Sisters I was partnered with a sweet 7-year-old girl that has grown up into a most amazing woman. She is currently running her own business while attending University with aspirations of becoming a Chief Financial Officer. She continues to make me proud and I am glad we are still in each other’s lives,” Millin says.
For several years, Samara has been on the board of directors for a nonprofit that provides recreation facilities and events for the surrounding area. It is an organization that helps bring the community together and supports and caters for children through to seniors.
“Through living a positive and happy life we can all inspire others to strive for the same or better. At work, embracing all the company’s core values especially in areas such as performance, community and valuing people and then encouraging others to do the same is such a positive way to lead by example and make work a pleasant and happy environment,” Millin says.
“Logistics is not a 9-5 job, you need to be dedicated, flexible and able to think outside the box. You also must love it as it can be stressful at times. Although workdays are extremely busy it is important to take time to talk to co-workers, show recognition, give thanks and praise when deserved,” she adds.
Millin was named AIT Volunteer of the Month October 2019, and volunteer work is close to her heart.
“We host international students in our home and this year it is a boy named Ian from Brazil. We hosted his brother three years ago and it was nice that Ian and his parents made a request to the school board for us to also be his family whilst he comes to Canada to study. We try to involve them in the community as much as possible and make their visit to Canada memorable,” says Millin.
Every year, CIFFA offers an award to a young logistics professional who best demonstrates industry knowledge and skills to become a true international logistics professional in the future.
In January 2022, after a review process of industry experience and a written dissertation demonstrating technical knowledge, CIFFA announced Karina Daniela Perez Perez as the 2022 Canadian Young Logistics Professionals Award recipient.
After completing an additional dissertation, Georgina entered the international competition and, following a review process by FIATA and the TT Club, on July 20, 2022, was announced as the Americas regional winner of the Young Logistics Professionals Award. Karina’s dissertations detail the transportation of two key products for the Canadian economy – an importation of over-dimensional generator engines from Germany to Northern Ontario for a mine expansion project, and an exportation of dangerous goods from Canada to Peru.
As the Americas regional winner, Karina will be invited to compete at the FIATA World Congress where she will present her dissertations to the Award Steering Committee that will subsequently announce the 2022 Young Logistics Professionals Award winner.
The prize to be awarded to the winner principally consists of practical and academic training, including a week based at one of the TT Club’s regional centres in London, Hong Kong or New Jersey plus a week in the TT Club’s Head Office in London. Additionally, a one-year subscription to the International Transport Journal (ITJ) is provided to all four regional winners.
Karina started her post-secondary education in Mexico, where she received a scholarship to study a semester abroad at Bishop’s University in Quebec, Canada. She obtained her Bachelor’s Degree in Biotechnology Engineering from the Instituto Politecnico Nacional. She continued her education in Canada and graduated with High Honours from Seneca College’s International Transportation and Customs Program. Karina was one of only a few students selected for the co-op program during which she gained experience handling import and export shipments via truck to and from Canada, USA and Mexico and went on a business trip to Queretaro, Mexico while working for First Frontier Logistics Inc. Karina has also completed the Authorized Cargo Representative and Customs Automation Certificate Descartes MSR Customs course, as well as the CIFFA International Freight Forwarding Courses and received the FIATA Diploma. Her passion for the logistics industry began in her hometown of Zamora, Michoacan, Mexico, whose main economic activity is the exportation of fresh and frozen fruits. She currently works as an inside Sales Coordinator at DSV Air & Sea Inc. Karina has also been part of the Air Import and Export Department, where she has won the data quality challenge award of excellence. She has volunteered with the Trade Commission of Mexico and the Daily Bread Food Bank.
Click here for more information on the Young Logistics Professionals Award.
CIFFA, through its Secretariat, represents the interests of the Canadian Freight Forwarders and actively participates on the various FIATA , (International Federation of Freight Forwarders Associations) Global Institutes and Advisory Bodies.
By Bruce Rodgers, CIFFA Executive Director
As a Regular Freight Forwarder Member firm your membership fees also include Individual Company membership to FIATA. This membership expands some 150 countries, consisting of approximately 5,800 individual members. Its mission objectives are fivefold:
The following is a summary of some of the many FIATA initiatives presented during the past year.
For more info on these many initiatives please reach out to admin@ciffa.com.
Airfreight Institute (AFI)
The ACFI held discussions around ACI multiple filing, particularly when reporting shipment data to customs authorities, as per pre-arrival and pre-loading Advance Cargo Information regulations. The Institute reviewed an IATA paper containing draft proposal recommendations to develop a common understanding of the self-filing issue and to establish a protocol for airlines to address it with their supply chain partners, noting the need to prevent duplicative, mismatching, or missing filings.
The AFI discussed whether the WCO (World Customs Organization) should work to develop a generic filing process at the global level, however it was raised that this could risk opening the door to using it as a mechanism to collect penalties and fines. The possibility of considering the mandatory data elements at the WCO level was discussed, linking to Single Window and safety and security data.
Customs Affairs Institute (CAI)
The CAI noted the importance of continuing to reinforce FIATA’s position on customs topics and actively work towards trade facilitation for the benefit of international trade, including by strengthening partnerships with International Organizations.
The committee agreed to work towards the following key priorities for 2021:
Specific work included:
AEO Validation and Implementation Guidance
During the WCO SAFE review cycle, FIATA noted the contentious aspect of the inclusion of policies on forced labour and social responsibilities such as a code of conduct into the AEO criteria. The committee positioned that those topics go beyond the intended scope of AEO programs whilst possibly excluding small and medium sized enterprises (SMEs) from AEO programs as a result.
Participated on the virtual AEO Conference on the challenges and best practices when exchanging data for the implementation of Mutual Recognition Agreement (MRAs) on AEO programs. FIATA highlighted the need for all countries to have the same opportunities to join the AEO program and for the application to be standardized around the globe. Also commented on the opportunity to modernize and digitalised the process.
WCO Capacity Building Committee
Reviewed a strategic initiative to support members and government worldwide in navigating their implementation of the WCO Trade Facilitation Agreement (TFA), especially through “tailor-made” assistance and capacity building support.
E-Commerce Annual Review
The committee reviewed the different revenue collection approaches cited in the WCO E-Commerce Package and agreed on a buyer-consumer approach as opposed to the intermediary-based approach, as the latter approach was considered to add an undue burden of collection on the freight forwarding process, particularly in the context of e-commerce shipments. In addition, under certain conditions, the absence of commercial relationship between the freight forwarder and the party importing the goods would render the intermediary-based approach impossible.
WCO Permanent Technical Committee
The committee noted that simplified procedures and paperless trade have become the new norm due to the pandemic and the importance to maintain those safeguards going forward. It underlined the importance to ensure that Advance Electronic Information as well as ensuring access that companies of all size can benefit from AEO Programs.
Coordinated Border Management
Coordinated Border Management refers to a coordinated approach by border control agencies, both domestic and international, in the context of seeking greater efficiency in managing trade and travel flows, while maintaining a balance with compliant requirements. FIATA positioned that customs administrations should enact bilateral or multilateral agreements or mutual recognition agreements of customs control. Highlighted the need for common standards and harmonization in terms of data gathering and sharing within the context of Coordinated Border Management.
Multimodal Transport Institute (MTI) – Working Group Sea Transport
Several key themes were identified, based upon the top priorities raised in FIATA’s Freight Forwarding Trade and Transport Survey 2021:
Spot contract vs. hedging: Freight Forwarders’ management of risk
The committee reviewed the ongoing issues being the unreliable and volatile container shipping market, the rising freight rates, the lack of accountability in terms of contracts and the exacerbation of all of these issues due to the COVID-19 pandemic. Discussed further the topics of spot contract versus hedging, whether forward agreements would be able to guarantee enforceable contracts on which conditions are present and potential digital solutions touching upon these issues. The committee discussed the possible solution to ensure enforceable contracts, that guarantees contract performance through two-way commitments with guaranteed price and service level. Underlined ongoing digital solutions which could aim at solving these issues related to unreliability and non-compliance with contract terms.
Advisory Body on Information Technology (ABIT)
Four key topics have been identified as priorities for ABIT members to focus on this year:
The scope of the first priority is to test the issuance of digital FBL through different software providers and to test FIATA’s document tracking solution, which will certify the validity of the document, the integrity of its content, as well as the identity of its issuer, through a unique QR code stamped on each document. The initiative started in February and was completed the end of June. The next steps for the balance of this year will be to develop the technology requirements.
The roll-out of the initiative will start in Europe in first quarter 2022 and commence in Canada during the fourth quarter.
Freight-pay platform
Develop a marketing plan that should be very transparent on the costs related to the use of the platform as well as the different transaction fees that will be applied on the platform.
Interoperability project
Provide a benchmark and analysis of existing data-exchange solutions, analysis of FIATA members needs and challenges in terms of data exchange and definition of a solution to facilitate the exchange of data between freight-forwarders and the different actors of the supply chain.
Share new technology advances with FIATA members
Update FIATA members on emerging digital technologies/solutions, help FIATA members to adopt new technologies, support FIATA’s digital strategy by informing members about the relevance of the different projects for their day-to-day business.
Working Group Sustainable Logistics (WGSL)
The seven WGSL work projects, which have been elaborated based on meeting objectives are listed as follows:
The project sequence and timeline were emphasized, with a focus on projects one- four to be completed this year. Participants agreed on the importance of communication, i.e., to make the message achievable and understandable was stressed as well as the necessity for FIATA to take a very clear lead on the issue. As regards the emission calculators, the need for didactic material (tutorials, graphic, etc.) was strongly stressed to overcome their complexity.
As described in detail above, there are several global initiatives that are being undertaken to improve the forwarder status and positioning within the global supply chain.
To obtain further information on the developments of these committees, please reach out to admin@ciffa.com.