BRITISH INTERNATIONAL FREIGHT ASSOCIATION. Minutes of the Surface Policy Group Meeting held at the Baltic Exchange, St. Mary Axe, London.

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1 1. Competition Statement The Chair read the BIFA Competition Statement to the meeting. 3. Agree Minutes of the Minutes of the Meeting of the 8 th June The meeting agreed that these as a true reflection of the meeting and signed by the Chair. 4. Matters arising for the Minutes of the Meeting of 8 th June Carried forward from the meeting of 17 th February 2016 The matter of insuring UK trailers had now been raised with CLECAT and FIATA and the German authorities now understood that UK insurance covered the tractor and trailer as a complete unit. It should be noted that in many EU countries the trailer had its own registration number and was insured separately, in the UK separate insurance often on a third party basis was only effective when the trailer was disconnected from the tractor unit. Matters arising from the meeting of 8 th June AP1 and AP2 had been rolled in together and would be considered by the Board on 20 th October AP 3 no comments had been received by BIFA to forward to the Liverpool Chamber Transport Committee 5. Surface Reports Road There was a discussion regarding the French Governments decision to close The Jungle outside Calais which BIFA had lobbied for and was welcomed by Members. The RHA had produced a guide regarding driver safety emphasizing the importance of putting the handbrake on. It was noted that approximately 25 drivers/warehouse staff were killed during uncoupling the trailer and tractor because this brake had not been properly applied. BIFA noted that in some cases the owners of the premises where the accident occurred were also prosecuted by the HSE for failing to ensure that safe working practices had identified and were being enforced.

2 The role of the Banksman was discussed, and although some logistics providers were now using them the sector lagged well behind the construction industry. It was noted that some IT systems used in conjunction GPS systems could identify potential hazards and advise the haulier/driver of them thus reducing risks. Maritime There was a discussion regarding the problems encountered when shipping dangerous goods. There was a clear view that shippers were the source of most problems and failed to identify such goods and produce the relevant paperwork. The carriers had invested in training and software to identify undeclared DG to some effect but the concern was that much still slipped through undetected. It was noted that Members did on occasion complete DGN, but always ensured that the shipper was asked to check that the information was correct and then sign it. Problems with placarding /DG signs were discussed. It was noted that in France and also Holland and Belgium that the authorities had stopped trailers because the hazardous signs were not the correct size. It had been established that these signs had not been purchased from a reputable source. BIFA s DGAG had noted issues with the placarding of containers where either the driver had been give the relevant signs but not fixed them to the container or cheap non-waterproof signs had been used. The meeting was reminded that:- The loading point was responsible to correctly placard the container The IMDG Regulations made it mandatory to train staff handling hazardous cargo All DG labels had to comply with certain criteria including that they had to be able to withstand immersion in sea-water for a period of 6 months. Discussion then turned to the problems caused by Hanjin s financial problems and the lines unexpected collapse. Many in the industry had been surprised many, it was noted that HMM had been in financial difficulty approximately six months previously but had been saved, largely by parties who had let Hanjin founder. Specific issues had been identified at Felixstowe:- The initial general lien imposed at the port was not legal and had been swiftly lifted The charges to secure the release of Hanjin containers were higher than levied by DP World at London Gateway. BIFA had taken legal advice and been advised that a court would probably view them as being reasonable

3 Members had shown little interest in pursuing legal action with regard to the costs BIFA had written to Felixstowe and received an assurance that return of the non-damaged empty container would conclude the forwarders obligations although it was noted that the port was slow refunding deposits. BIFA had put as much generic information as possible on its website. There was a discussion regarding the introduction of the SOLAS amendment requiring shippers to provide a Verified Gross Mass (VGM) to the carrier prior to loading. Carriers had noted a 95% compliance rate with this requirement, in the UK the ports ability to weigh containers has contributed to the successful implementation of this new regime. However, particularly with ex works shipments there had been problems identifying the correct billing party. 6. Dover Matters Clandestines Issues relative to clandestines had been adequately covered elsewhere in the meeting or would be by Border Force later. Consultation on Lorry Parking The DfT had launched a consultation regarding the proposal to build a lorry park near to Stop 24 just off the M20 to hold 3600 lorries in order to prevent/reduce the impact of Operation Stack. It was intended to have the proposed lorry park operational by mid-2017 It is understood that a less expensive counter-proposal has been or will be made by Motis. Any BIFA Member wishing to respond to the initial DfT consultation should do so directly It was noted that if BREXIT led to the need to re-introduce some form of customs declaration then this lorry park could have a wider function being where inbound and outbound cargo could be declared to Customs in order to alleviate congestion at Dover. 7. Members views on BREXIT Some Members felt that there would be positive benefits stemming from leaving the EU, especially if customs declarations were re-introduced for intra-eu transactions. For many Members especially those engaged in the deep sea sector it was felt that there would be few impacts, as potentially maritime would be less impacted by BREXIT than air or road. For the last mentioned potential problems relative to cabotage, drivers hours and tachograph regulations were all noted.

4 However, potential problems with feeder vessels transporting non-community and community cargoes were identified. Once community goods entered the UK territorial waters they could be deemed as being tainted although it was thought that using a T2L to prove their community status could provide a solution to that problem. It was felt that some parties were making the BREXIT issues over complex and that all problems could be resolved but it would probably require additional work and documentation which it was agreed would add complexity and cost to moving goods. Forwarders are pragmatists and are mainly concerned with moving their clients for reward. Regardless of the outcome of the BREXIT negotiations this would continue to be the case. The meeting did feel that Government should be made aware of the following concerns: There is a shortage of staff in the industry and it will take time to recruit and train staff to handle the increased volume of declarations that are likely if the UK leaves the Single Market There are infrastructure issues to be considered at the main east coast ferry ports There are IT concerns regarding CHIEF and its capability to process the anticipated increase in customs declarations associated with intra EU trade. The meeting concluded that the Government when negotiating BREXIT should aim to minimise delays and additional costs connected with moving cargo between the UK and the EU. 8. Terminal Handling BIFA had received a paper from FIATA regarding the billing of terminal handling charges by ports. It is believed that lines charge more than they are billed to make additional profit. After discussion the Surface PG decided that they did not agree to the suggestion:- There was no reason why ports would not charge the forwarder more than the line There is no contract between the forwarder and port Increase administration costs as more invoices would be processed Carriers will simply increase charges to recoup lost revenue. The view was this proposal would increase the Members costs but not bring any benefits. 9. IT and Customs matters The UCC had posed specific issues to the industry and BREXIT posed additional as yet undefined issues which would pose significant issues for IT design. The most significant potential issue is how to handle the potential increase in entry numbers should the requirement to make all customs declaration electronically be enforced. The second factor which could impact on levels of customs declarations will be if a form a declaration for intra EU trade is re-introduced. Whilst estimates vary,

5 BIFA has seen figures suggesting that the number of declarations could rise to 350 million per annum. On top of this was the requirement for Government systems to process increasing numbers of safety and security declarations. As JCCC members, the AFSS and BIFA had contributed to a JCCC paper covering key issues from trade s perspective when considering BREXIT. There is a concern that political issues will be given precedence over trade needs during the BREXIT negotiations, and a central theme would be to retain as much as is possible of the UCC which had been heavily influenced by the UK. CDS, which is CHIEF s replacement may only need to be compliant with HMRC s requirements and an implementation of early 2019 was being suggested for the new system. There was concern that such an early implementation date would cause issues and that the new system would have less functionality than the current one. 10. Regional Representatives Report Solent and the South Border Force, after consultation with trade bodies including BIFA were trialing changes to working hours. It was felt that the new arrangements would not cause problems to trade. DP World at Southampton had advised that SOLAS implementation from an operational viewpoint had gone well with approximately 50% of all shippers asking for the port to weigh their loaded container to establish a VGM. Also at the port the yard area would be increased in size to allow the storage of a maximum of 38,000 containers instead of the current 35,000. Average utilisation was currently 24,500 containers at any one time. The port was averaging 28 moves an hour when working a vessel and average vehicle waiting tome was 35 minutes. The North Whilst accepting Dover s importance in the ro-ro market was noted, when considering both BREXIT and the clandestine problems the meeting was reminded that there were significant ferry operation in the North East. There was a discussion regarding the alliance of the main ports on the Mersey, Humber and Tyne. This development links with Northern Powerhouse concept aiming to make the handling of seafreight cargo easier in the North, thus encouraging more vessels to call at these ports.

6 Kent and East Sussex Despite cargo being routed to different east coast ports, the port of Dover had recorded a 3% increase in trade on the Dover to Calais route. London Gateway The extension to the quay was due to be completed in Q4 of 2016, when it would open. Felixstowe Members were reporting on-going operation problems including significant congestion at the port and vessels being diverted, due in part to what some suggested was due to inefficient handling processes. Also the port had advised that they intended to commence Phase 2 of their expansion programme, however, existing planning requirements only allowed for this development once the port had paid for the upgrade of the Felixstowe to Ipswich line, checks would be made with the local planning authorities. 11. Any other Business Members agreed to a suggestion to invite a speaker on the subject of Cyber Crime. 12. Date and Venue of the Next Surface PG Meeting The next meeting will be held at the Baltic Exchange on 16 th November the guest speaker will discuss Letters of Credit. 13. Presentation by Border Force The meeting concluded with Border Force giving an overview of initiatives to improve security in the ro-ro sector.