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B ULK D ISTRIBUTOR
Shipper
January/February 2019
No deal Brexit prospect
ƐĐĂƌĞƐůŽŐŝƐƟĐƐindustry
B
ritain’s logistics industry has voiced increasing concern
over the growing threat of a no-deal Brexit.
Following the defeat in Parliament of Prime Minister Theresa May’s
Brexit deal, trade bodies representing hauliers, forwarders, ports and
other supply chain actors have joined the chorus of other industries
in calling for an end to the uncertainty surrounding the UK’s schedule
departure from the EU at the end of March.
Freight forwarders say they are on standby to “clear up the mess
left by politicians”. Robert Keen, director general of the British
International Freight Association (BIFA) said: “With just a couple of
months to go before the exit date, the rejection of (Mrs May’s) deal
leads BIFA to recommend that our members, which are the
companies that handle the processing of most of the UK’s visible
trade, to prepare on the basis that there will be a hard Brexit.
“Speculating about any other outcome is inadvisable until UK
Government provides us with clear guidelines.
“A hard deal may well be very disruptive and damaging for the UK
economy as a whole, but freight forwarders – many of whom are
Authorised Economic Operator (AEO) accredited – will play a key role
in tidying up the mess left by the politicians by ensuring UK importers
and exporters can continue trading without undue disruption with
the rest of Europe after 29 March.”
BIFA has always stated its belief that a disorderly Brexit would be
the worse outcome, as it is likely to increase trade barriers and
impose significant restrictions on the exchange of goods between the
EU and the UK.
“Whilst BIFA’s executive management has engaged with various
government departments over the last two years in regards to issues
that affect the movement of visible trade post 29 March, our
members have also been discussing the possible impacts with their
clients.
“BIFA will be renewing our appeals to the responsible bodies in
London and Brussels to do the utmost to prevent this scenario. As far
as we are concerned, our members are focused on ensuring the
ongoing efficient flow of freight for our customers.
The Freight Transport Association (FTA) said it was advising logistics
managers to advance their preparations for a no deal Brexit.
Pauline Bastidon, head of European policy and Brexit at FTA,
commented: “With the rejection of the withdrawal agreement in
Parliament, the chances of the UK leaving the EU without a deal in
place increased significantly. As such, FTA strongly advises logistics
managers to ramp up their preparations for a No Deal withdrawal.”
Bastidon continued: “FTA has been at the heart of the debate on
їContinued from page 1
More on Flaminia
Concurrently, TT Club published an analysis* of the MSC Flaminia
fallout and the subsequent lessons in logistics.
Much can be learnt about the logistics industry – in terms of
complexity, practices and expectations – from the ‘MSC Flaminia’
judgment analysing and establishing the responsibilities in this
casualty, says the mutual insurer.
As with almost all litigation, there are findings in the New York
judgment that are specific to the particular facts, including, in this
instance, the precise characteristics of the cargo - DVB - in question.
Indeed, for DVB, classification under the IMDG Code has been
changed subsequently following the German Authority investigation.
Now, rather than classifying such polymerising commodities under a
generic Class 9 UN 3082 representing that the goods do not present
dangers covered by any of the other classes, DVB should be declared
under Class 4.1, UN 3532.
More than this, the latest amendment of the Code (38-19),
entering mandatory force on 1 January 2020, will require transport in
temperature controlled containers.
On a more generic level, however, the judgment provides a study in
logistics practices. The judge outlines the processes followed through
the booking request initiated by the shipper, through the NVOC and
engaging with the carrier, describing the instructions given in relation
to the sensitivities of the cargo, and the needs for particular stowage
and monitoring. The consequent booking confirmation given by the
carrier, and conveyed by the NVOC to the shipper inevitably has
broader significance but seemingly centred on a cut-off date for
documentation to be prepared.
It is interesting to ponder, says TT Club, the extent to which these
processes might be dislocated, or could be remodelled to strengthen
controls. Indeed, the bias towards the appropriate cut-off date on
cursory view may be more aligned to verified gross mass (VGM)
Trade Union Unite is alarmed that the focus has been more on roro ports when most goods are
brought into the UK via container ports. A no deal Brexit would result in significant delays in
transporting these goods and this does not appear to have been planned for
Brexit since the triggering of Article 50, standing up for the logistics
sector and lobbying government to keep Britain trading. A no deal
Brexit would be highly damaging for trade, for business and for
Britain. FTA is continuing to urge the government to reach an
agreement with the EU which will keep goods and services flowing
with minimal disruption, as no deal is no option for logistics.
Meanwhile, businesses should continue to plan for the worst to
mitigate against further problems as much as possible.”
Trade union Unite, which represents tens of thousands of lorry
drivers in Britain and Ireland, accused the UK government of a
planning failure as lorry drivers’ fears are ignored.
While the government has begun planning to stack lorries at
locations such as Marston Airfield and on the M3 in Hampshire,
Unite is concerned that the needs of the lorry drivers are being
ignored. As well as basic welfare facilities such as toilets, if delays are
extended then food and sleeping provisions will be needed, in order
to ensure drivers are fit and alert when required to start driving again.
Unite members have already been reporting that they are
increasingly being placed at breaking point due to long hours and
fatigue and the union is concerned that this is linked to a 50 percent
increase in driver deaths and a no deal Brexit will further exacerbate
those issues.
Unite is also alarmed that all the focus has been on ports with roll
on, roll off (roro) ferries, when most goods are brought into the UK
via container ports such as Felixstowe, Immingham, Grimsby,
Liverpool, London Gateway, Southampton, Tees and Hartlepool. A no
CINS acted in
response to a series
of polymerisation
incidents arising
from the carriage
of DVB by sea,
including the MSC
Flaminia in 2012
obligations than communication and control relevant to cargo
handling requirements.
“In a world that is increasingly digitised – and potentially
blockchained – there are considerable opportunities to add rigour to
the way in which instructions and information are captured,
communicated and used by the stakeholders,” the club states. The
court found multiple deficiencies in the underlying systems and
processes, the reliance on them being complete and accurate, and
apparent misconceptions about the significance of certain data that
revealed gaps in training. One specific example that has broad
relevance is the industry-wide reliance for dangerous goods
shipments on the Dangerous Goods Declaration as the “locus of
critical information and warnings” rather than the use of a bill of
lading to “convey necessary and critical safety information”.
While, inevitably, the judge was seeking to dissect the actions of
the various parties involved, by standing back from the specifics it is
possible to recognise that incidents both small and large are
uncomfortably close to occurring all too frequently.
All that is required is an alignment of mistakes, oversights, failed
deal Brexit would also result in significant delays in transporting these
goods, which will cause further traffic congestion, and which does
not appear to have been planned for, the union stated.
“Unite understands that the government has held discussions
about its plans with haulage employers who have been gagged by
signing non-disclosure agreements (NDAs) barring them from
discussing the government’s plans with the workforce or Unite,” the
union said, adding that long-term delays in the collection of goods
from ports is likely to result in drivers voting with their feet and
leaving the industry, further exacerbating the deepening recruitment
crisis.
Unite national officer Adrian Jones said: “The government appears
only to be interested in the management of the lorries and not the
health and welfare of drivers.
“The government’s last ditch planning for a no deal Brexit is
completely ham fisted and there has been a complete absence of
awareness of the needs of the lorry drivers who are fundamental to
keeping goods moving.
“All of the government’s focus has been on the roro ferry services
and they have failed to take into account the serious disruption a no
deal Brexit will have on container ports, where the vast majority of
goods are transported.
“The government has ignored the needs of drivers and has gagged
the employers, this will result in the chaos of a no deal Brexit, being
even greater.
“A no deal Brexit will create further misery for drivers who will vote
with their feet and either seek work on different routes or decide to
leave the industry, which will create further delays in the UK’s supply
chain,” Jones commented.
controls. Attention is rightly focused on incidents, but behind each is
a string of smaller issues that have come together to allow
something to happen. As the judge in the case explained, disasters
are only infrequent due to a “lack of a similar perfect storm of
events, and simple good fortune”.
Many times the errors are detected and corrected before an
incident occurs. This is both good and bad news; every time that an
economic opportunity succeeds despite an error, it reinforces errant
behaviours. The ideal would be that any one of the controls not only
prevents an unsafe situation persisting but also leads to corrective
action.
The complexity and diversity evident in the international freight
supply chain cannot afford to be over-simplified. TT Club statistics
indicate that as many as 66 percent of incidents related to cargo
damage in the intermodal supply chain can be attributed in part to
poor practice in the overall packing process, including not just load
distribution and cargo securing, but also the workflow from
classification and documentation through to declaration and
effective data transfer.
As a result, the Club has initiated its #Fit4Freight campaign,
collaborating with Global Shippers Forum, ICHCA and World
Shipping Council to promote awareness and use of the Code of
Practice for Packing of Cargo Transport Units (CTU Code).
Despite the broad on-going stakeholder involvement, including the
UN agencies, government representatives and industry associations
for those engaged in all modes of surface transport, four years after
approval awareness globally is low. Critically, many low level incidents
could be avoided by adherence to the principles set out in the Code
and similarly positively impact the occurrence of major maritime
casualties, such as ‘MSC Flaminia’. The overall economic cost to the
industry is estimated to amount to billions of dollars each year.
Furthermore, the human cost is substantial, with deaths and injuries
regularly reported. Supply chain stakeholders are thus incurring a
significant, largely avoidable burden.