INTRODUCTION TO THE FEDERATION OF NATIONAL ASSOCIATIONS OF SHIP BROKERS AND AGENTS

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1 INTRODUCTION TO THE FEDERATION OF NATIONAL ASSOCIATIONS OF SHIP BROKERS AND AGENTS

2 Who are we, what do we do? FONASBA: The international shipbrokers and ship agents association, founded in London in April Its objective: To promote and protect the professions of shipbrokers and ship agents worldwide ECASBA: The European committee of FONASBA, formally established in Its objective: To represent the views of the European Community shipbroking and ship agency professions to the EU institutions

3 CURRENT FONASBA MEMBERSHIP AFRICA: Algeria, Angola, Egypt, Ivory Coast, Kenya, Libya, Mauritania, Morocco, Nigeria, Senegal, South Africa, Tunisia AMERICAS: Argentina, Brazil, Mexico, Panama, Peru, USA, Venezuela ASIA/PACIFIC: Australia, China, Japan, the Philippines EUROPE: Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Great Britain, Hungary, Ireland, Italy, Malta, Montenegro, Netherlands, Poland, Portugal, Russia, Serbia, Slovenia, Spain, Sweden, Turkey, Ukraine MIDDLE EAST: Dubai, Israel, Jordan, Lebanon, Syria, Yemen

4 CURRENT FONASBA MEMBERSHIP The current FONASBA members represent: 3,702,255,479 people (51% of the global population) US$ billion of GDP (53% of the global GDP) and include: 6 of the G7 countries 7 of the G8 countries 14 of the G20 countries 20 of the 28 EU countries

5 IN THE BEGINNING IN THE 80 S IT COULD TAKE 2,3 OR EVEN 4 DAYS TO CUSTOMS CLEAR. TRANSPORT ARRANGEMENTS COULD ONLY BE MADE WHEN CLEARANCE WAS GIVEN TO AVOID WASTED JOURNEYS. THIS MADE PORT OPERATIONS INEFFICIENT. MY EARLIEST EXPERIENCES OF PORT COMMUNITY SYSTEMS FCPS80 REALLY THE WHOLE PORT COMMUNITY, STEVEDORES, LINES, AGENTS, FORWARDERS, HAULIERS, WAREHOUSES AND MOST IMPORTANTLY CUSTOMS. THE AIM WAS TO SIMPLIFY THE AMOUNT OF TRANSACTIONS AND VAST AMOUNTS OF PAPER BEING EXCHANGED. INVESTMENT WAS MADE BY ALL STAKEHOLDERS BUYING SHARES.

6 RAPID PROGRESS EVEN EARLY VERSIONS OF FCPS MADE SIGNIFICANT IMPROVEMENTS. IT WAS CLEAR THAT OTHER FACILITIES COULD BE ADDED TO THE PROGRAMME. THE INITIAL DOUBTERS SOON JOINED THE COMMUNITY SYSTEM AS THEIR COMPETITORS WERE CLEARLY GAINING AN ADVANTAGE. WITHOUT FCPS YOU WOULD LOSE GROUND, IT THEREFORE SHOWED CLEAR COMMERCIAL BENEFITS. THE SMALLEST USER BECAME JUST AS EFFICIENT AS THE LARGER/STRONGER COMPANIES THE CHARGES WERE STRUCTURED BASED ON INDIVIDUAL ENTRY COSTS, YOU ONLY PAID FOR WHAT YOU USED. THUS A LEVEL PLAYING FIELD.

7 ADDITIONAL BENEFITS AS LEGISLATORS THROW MORE AND MORE FISCAL RESPONSIBILITIES OUR WAY, SUCH AS CUSTOMS CODES, VGM, VESSEL STATISTICS THEY HAVE BEEN ENCOMPASSED WITHIN THE PCS. THIS ALLOWS USERS LARGE AND SMALL TO REMAIN COMPLIANT AT ALL TIMES. AS ALL VESSELS, VEHICLES AND CONTAINERS ARE MANAGED THROUGH THE SYSTEM, THE CONSIGNMENTS REMAIN SECURE AT ALL TIMES. THE PORT COMMUNITY SYSTEMS HAVE BROUGHT ABOUT GREAT EFFICIENCIES WHICH HAVE AIDED THE TRANSIT TIMES THROUGH THE PORTS AND BROUGHT ABOUT PREDICTABILITY AND CERTAINTY IN ARRANGEMENTS.

8 SPREAD THE WORD WHILST PCS S HAVE BEEN ADOPTED IN MANY PARTS OF THE WORLD, THERE REMAIN TOO MANY THAT ARE YET TO BENEFIT FROM THEM. SOME OF THE FONASBA MEMBER NATIONAL ASSOCIATIONS CAN ONLY LOOK ON IN ENVY AT THE PORTS THAT HAVE AN EFFICIENT PCS, BUT SURELY IT IS TO THE BENEFIT OF ALL ENGAGED IN INTERNATIONAL TRADE TO PROMOTE THEIR USE. THEY DO NOT NEED TO RE-INVENT THE WHEEL, MANY OF THE CURRENT SYSTEMS CAN BE BROUGHT IN AT MODEST COST. IT WOULD BE TO THE ADVANTAGE OF ALL TO HAVE THESE FACILITIES IN EVERY PORT, AND PERHAPS THE WORLD TRADE ORGANISATION CAN ASSIST TO FACILITATE THAT AIM.

9 IN CONCLUSION THINKING BACK TO THE 1980 S AND HOW WE USED TO PROCESS THE MOUNTAINS OF PAPERWORK, HOW DID WE COPE? THE NUMEROUS ERRORS IN TYPING, LOST PIECES OF PAPER, RUSHING TO GET TO THE AUTHORITIES OFFICE BEFORE THEY CLOSED. TRYING TO KEEP ABREAST OF LEGISLATION AND IT S IMPACT. IT S ALL A DISTANT MEMORY NOW. GONE ARE THE DAYS WHEN WE WOULD HAVE TO WAIT FOR A CUSTOM S OFFICER TO STAMP A PIECE OF PAPER. IT NO LONGER TAKES 3 OR 4 DAYS WAITING FOR CLEARANCE, WE NOW GET IMPATIENT IF IT TAKES 3 OR 4 HOURS!

10 BENEFITS TO SME S WITHOUT DOUBT THE PORT COMMUNITY SYSTEMS ALLOW THE SMALLER COMPANIES, PARTICULARLY AGENTS AND FREIGHT FORWARDERS TO COMPETE ON A PAR WITH THE LARGER PLAYERS. THIS HAS AVOIDED DOMINATION BY A FEW AND THEREBY PROVIDING THE ULTIMATE CONSIGNEE/CONSIGNOR WITH A GENUINE CHOICE. THE PCS ALLOWS COMMUNICATION TO ALL THE STAKEHOLDERS SYSTEMS SEAMLESSLY, STEVEDORES, TERMINALS, CUSTOMS, PORT HEALTH ETC. THIS SINGLE INTERFACE IS OF GREAT BENEFIT. WE ARE SEEING RADICAL CHANGES IN THE FREIGHT ARENA NOW DOMINATED BY A FEW MEGA- CARRIERS AND EVER ERODING FREIGHT RATES AND REVENUE, WE CAN SAY WITH CERTAINTY THE AT LEAST THE PCS S OFFERS THE SME S A FIGHTING CHANCE TO FULLY ENGAGE IN TRADE FACILITATION.