98 th. Airfreight Institute Meeting AFI - March 15, 2018 Headquarters Session Crowne, Zurich, Switzerland

Transcription

1 98 th The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen Airfreight Institute Meeting AFI - March 15, 2018 Headquarters Session Crowne, Zurich, Switzerland

2 98th Airfreight Institute Meeting AFI March 15, 2018

3 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 1 Opening and welcome AFI Chairman Mr Keshav Tanna

4 98th Airfreight Institute Meeting AFI March 15, 2018 Delegates should note the FIATA legal statement FIATA policy strictly prohibits any discussion or other communication the purpose or effect of which is to set prices, allocate markets or customers, engage in tying arrangements or refrain from purchasing any goods or services from any particular supplier or vendor. It is mandatory that you familiarize yourself with FIATA s written antitrust policy which the secretariat has made available to all participants.

5 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 2 Approval of Minutes 97 th AFI Meeting, Zurich Kuala Lumpur, Malaysia 7 Octobre 2017 (Doc. AFI/389)

6 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 3 IATA FIATA Consultative Council (IFCC) Update Mr Keshav Tanna, AFI Chair and Mr Mike Jones, AFI Deputy Chair

7 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 3 IATA/FIATA Consultative Council (IFCC) The first meeting of the IFCC took place in Zurich in February 1980 The IFCC was constituted to initiate, consider and make recommendations to the Cargo Agency Conference (CAC) and the Cargo Services Conferences (CSC) The IFCC is a permanent body operating under the auspices of IATA (Resolution 801c). Objectives: review all proposals, including those submitted by mail vote, made to the CAC to introduce new, or to amend existing, provisions of the Cargo Agency Rules.

8 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 3 IFCC limited Powers The IFCC s actions are expressed as recommendations The IATA Cargo Procedures Conferences are under no obligation to act in accordance with such recommendations Should the Conference disagree with the IFCC recommendations, further consultation with the IFCC maybe sought before final action is taken

9 98th Airfreight Institute Meeting AFI March 15, 2018 Membership of the IFCC consists of: Agenda No. 3 Six IATA Members (three representatives from the CAC and three representatives from the CSC) IATA Members are appointed by the respective Cargo Procedures Conferences for a two-year term and are elected from persons occupying positions dealing with matters affecting the carrier/agent relationship Six FIATA members are appointed by AFI The IFCC has at least one meeting per year

10 98th Airfreight Institute Meeting AFI March 15, 2018 AFI representation at the latest IFCC The 79th and most recent session of the IFCC was held in Geneva on the 6th Feb 2018 AFI held a pre-meeting to review the CAC and CSC agendas (343 pages and 114 submissions) AFI also made 3 submissions to the 79th IFCC for consideration

11 Administration fee for late remittance costs recovery (Resolutions 801r and 851r) FIATA (AFI) objected to the introduction of the fee for several reasons: The legitimacy of the fee why the necessity for introducing such a fee that would apply to the whole industry? The lack of consultation (Regional ALWG S) that were required under IATA resolutions Why the mail vote process had been used for such an important topic? Suggested Solution or Resolution Amendment The IFCC should recommend to the CAC 46 that the changes should be reversed and the correct consultation processes should be followed

12 The outcome: No change to Late Payment Fee implementation as endorsed by CAC Opportunity to discuss Intermediaries late payment behaviours and possible solutions in EACPJC. Other comments EACP-JC blocked implementation of late payment fee for 805zz countries.

13 Hong Kong Annual Financial Review (AFR) and Local Financial Criteria (LFC) Submitted by: FIATA AFI and HONGKONG ASSOCIATION OF FREIGHT FORWARDING AND LOGISTICS LTD. -HAFFA- Background/Problem A decision had been made to implement AFR in Hong Kong with effect from 01 April 2018 Discussions between HAFFA and ICAP (IATA Cargo Advisory Panel) have focused on the revision of the current LFC as it contained some unreasonable criteria Some revised LFC have been proposed by ICAP, removing the unreasonable criteria but at the same time some new controversial requirements are introduced. The new proposed LFC is not supported by HAFFA members and if the AFR is introduced under the old LFC, almost all IATA cargo agents would fail the assessment

14 The outcome: IFCC recommends CAC to give ICAP and HAFFA a 6 month timeline to agree on Local Financial Criteria ICAP and HAFFA to meet and report outcome. If LFC cannot be agreed, it will come back to IFCC for recommending an action to CAC Conference to reaffirm to members the General Concurrence and what it means Clarify in Resolution the consequences of signing the General Concurrence/mirror language in PAC Resolution regarding bilateral bank guarantees

15 The Inland Revenue Authorities in Singapore (IRAS) have commenced the introduction of non-audited reports for SME s. Submitted by: AFI AIRFREIGHT INSTITUTE OF FIATA and SAAA - Singapore Aircargo Agents Association Background/Problem Companies in Singapore that can meet any two of the three conditions set by the IRAS, do not need to have their financial reports audited. Airlines want to maintain the requirement for financial documents certified by an auditor within the Annual Financial Review (AFR) AFI requested amendment to Resolution 801 to reflect this exception in Singapore and respect the changes that the IRAS has made

16 The outcome: IFCC jointly recommended to send a late paper to CAC 46th meeting to change the Resolution in Singapore for accepting un-audited statements, following the Singapore s Revenue Department directives. CAC action is pending the outcome from the ICAP dialogue meeting with SAAA.

17 You will find this article in the actual FIATA Review No. 121 March 2018 Upon AFI s initiative IFCC jointly recommended CAC not to take action on voting agenda items V/2 CASS Associates Global Model V/3 CASS Associates Agreement and V/4 Conduct of Review by Cargo Agency Commissioner in IFACP countries/regions. IFCC requested more time to consult in an IFCC working group Results to be reported to IFCC.

18 P/2 - V/2 AFI suggested discussion: CASS Associates Global Model What are the objectives of introducing these changes? Has there been an study done to ascertain how proposed changes envisioned by the introduction of the CASS Associates Global Model, will impact freight forwarders, both those currently participating as CASS Associates and those who may in the future apply to participate in the CASS Associate program? What industry benefits, opportunities, costs and disadvantages are anticipated should the CASS Associate Global Model be introduced? V/3 AFI suggested discussion: CASS Associates Agreement How do the proposed changes benefit freight forwarders, both those currently participating as CASS Associates and those who may in the future apply to participate in the CASS Associate program? From the onset of the CASS Associate program, the airline sponsor has always been an integral aspect of the CASS Associate relationship. What is the benefit to remove the airline sponsor?

19 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 4 IATA FIATA Air Cargo Program (IFACP) Update Mrs. Joana Coelho IATA-FIATA Governance Manager & AFI Team

20 The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen IFACP IATA FIATA Air Cargo Program Joana Nunes Coelho IFACP Governance Manager March 15 th, 2018 Zurich

21 Background information In October 2016, IATA and FIATA signed the Cooperation Agreement (FIATA World Congress, Dublin) There (in the Cooperation Agreement) the Parties acknowledged the need to develop and introduce a new air cargo program (IATA-FIATA Air Cargo Program - IFACP) which the Parties mutually intend to administer on behalf of the freight forwarder and carrier participants (the IFACP Participants ) as instructed by the IATA-FIATA Governing Board (IFGB). the global voice of freight logistics

22 Background information On August 15 th, 2017 IFACP Canada roll out was launched. IFACP Program Secretariat and CIFFA sent out two joint communications to the Forwarder s community informing IFACP would be declared fully implemented in Canada on October 31 st, No limitations to the number or size of Forwarders participating were previously determined by the IFGB. By October 31 st according to the IFACP CA Implementation update report, IFACP Program Secretariat had received 44% signed IFACP Agreement. IATA, FIATA and CIFFA decided to extend the deadline for another 30 days, before any cut-over to IFACP (new deadline was now 30 November 2017). By then none of the multinational freight forwarders had signed the agreement. the global voice of freight logistics

23 Background information IATA and FIATA were contacted by some multinational forwarders raising concerns about the legal implications of the new IFACP Forwarder Agreement. In order to sign the new agreement, the Forwarders would like to have some changes/amendments included in the current version of the IFACP Forwarder Agreement. These multinationals represent more than 49% of CASS value in Canada. By November 30 th, IFACP Program Secretariat received 77% signed IFACP Agreements representing 56% of CASS Sales. 5 out of top 10 big forwarders (based on CASS sales) had signed the agreement but some legal concerns remained, the IFGB agreed that IATA and FIATA legal should schedule a meeting with these Forwarders legal advisors during December, the global voice of freight logistics

24 Background information In December 2017, considering the importance of having the multinational Forwarders joining the new program the IFGB decided it was important to understand and eventually address the concerns raised by the multinationals. The IFGB agreed that Canada would be on hold until the next IFGB conference call scheduled for January 31 st and requested FIATA representatives to submit a proposal to revise the IFACP Forwarder Agreement in order for the IFGB to decide next steps. the global voice of freight logistics

25 IFACP Forwarder Agreement FIATA proposal The revised IFACP Forwarder Agreement submitted by FIATA was based on three clarifications: 1. Revisions to the definition of Forwarder to reflect the current way that Forwarders are doing business with the Airlines, sometimes as Principal and sometimes as Agent of the Shipper. The original draft of the Agreement would, in principle, have removed this flexibility by treating every shipment as if it were being handled only on a principal-to-principal basis, when in fact under current practice it is estimated that a large percentage of forwarder shipments worldwide (including most DG shipments) are handled by the Forwarders as Agent of the Shipper; Forwarder: in the context of this Agreement, is an entity which enters into air waybills as the Shipper on a principal to principal basis, or as the Shipper s Agent, as the case may be The Forwarder shall not indicate or imply in any way that it is an agent of the Carrier, unless authorized by the Carrier in writing and approved by the Shipper; the global voice of freight logistics

26 IFACP Forwarder Agreement FIATA proposal 2. Some provisions of the Agreement have been moved to the IFACP Handbook which is the appropriate place for the rules and procedures of the program to be set forth. 3. The proposed revisions have been suggested as a way for the modernization program to go forward, without jeopardizing valuable commercial relationships, and ways of doing business that are working well in today s industry. IFGB meeting March 8-9, Dallas, Texas The airlines rejected the proposal submitted by FIATA and Forwarders. IATA/Airlines have made a counter proposal that, at this time, is under consideration by AFI/FIATA and the Forwarder community. the global voice of freight logistics

27 IFACP Global Roll Out Region/Country IFGB members Launch End Date Pilot CA William Gottlieb (Forwarder) 15/Aug/ AU, NZ and South West Pacific William Gottlieb Ricky Yeung (Airline) st phase Hong Kong and Chinese Taipei Brian Wu (Forwarder) Markus Muecke (Forwarder) Ricky Yeung Europe (includes EACP, Russia Stefan Amann (Airline) and other European countries) Markus Muecke IN Keshav Tanna (Forwarder) Kirsten de Bruijn (Airline) nd phase Asia Pacific William Gottlieb Pat Donlon (Airline) CN Brian Wu Ricky Yeung LATAM Rudi Sagel (Forwarder) Angela Gaddy (Airline) Middle East Paul Cheetham (Forwarder) Kirsten de Bruijn rd phase Paul Cheetham Africa Randa Elessamy (Airline) Stefan Amann the global voice of freight logistics

28 Important to remember Local Financial Criteria being reviewed for competition law compliance by an independent global law firm A) Commencing after receiving inputs from FIATA and local associations Very important to receive inputs from local associations (if there are any) B) Draft review C) FIATA and IATA legal approval D) Final review and approval by the IFGB the global voice of freight logistics

29 Important to remember IFACP JOINT COUNCILS 10 Regional Joint Councils 6 members from Forwarders and 6 members from Airlines The Joint Council shall provide the IFGB with recommendations on: i) Standards of staff competence, experience and knowledge of air cargo products; ii) Suitability of cargo handling and processing equipment; iii) Products and services, and iv) Operational and financial criteria for endorsement of IATA-FIATA Freight Forwarders the global voice of freight logistics

30 Joana Nunes Coelho IFACP Governance Manager the global voice of freight logistics

31 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 5 Presentation by Swiss WorldCargo Mr. Alain Guerin Head of Cargo Product, Service and Technology Development.

32 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 6 ICAO and GACAG - UPDATE Mr Bill Gottlieb, FIATA Past President

33 ICAO FIATA DG by Air Training Program - Update The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen Bill Gottlieb Past Chairman AFI Past President FIATA March 15, 2018 HQ Meeting Zurich

34 2017 Statistics the global voice of freight logistics

35 Recent Additions Congratulations to new ICAO FIATA Training Centers: ASOCIACION COSTARRICENSE DE AGENCIAS DE CARGA Y LOGISTICA INTERNACIONAL -ACACIA- ASOCIACION PANAMENA DE AGENCIAS DE CARGA - APAC - the global voice of freight logistics

36 In the Pipeline Future ToTs South East Asia Greater Collaboration with ICAO Training Department Air Cargo Training Course bundled with DG Member Interest in Multimodal DG Certificate the global voice of freight logistics

37 In the Pipeline IATA Launches a new software DG AutoCheck Allows for the automated verification of compliance of the Shipper s Dangerous Goods Declaration, to ICAO regulations. the global voice of freight logistics

38 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 7 OTHER BUSINESS

39 Agenda No. 8 Date and Place of Next 99 th AFI Meeting FIATA WORLD CONGRESS 2018 in New Delhi, India September 28, hours

40 98th Airfreight Institute Meeting AFI March 15, 2018 Agenda No. 9 CLOSURE