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| Vol. 23 No. 39 | Tuesday September 24, 2024 |
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The theme of this year’s FIATA World Congress in Panama is: The Great Connection. I admit I have seldom heard a more appropriate, imaginative and yet concise motto for a FIATA event, and I have seen many of these slogans in my many years with FIATA. Connection is indeed the guiding principle in our work. What are forwarders doing in the end? Scout, establish and exploit each and every connecting opportunity that exists in the international trade, be it human, mechanical, digital, geographical or in any other form or manner. We are indeed “connecting” people with their goods, wherever they come from. Perhaps this could be another way of looking at freight forwarding services . . .  When
I started my work at CLECAT in 2003, both FIATA and CLECAT were having a
conversation on a possible definition for the freight forwarding services,
which was strongly demanded by the institutions we were working with. There
was a principal opposition to the idea of “definition” from
our lawyers, who were reluctant to use the term. In the end the solution
came from one of our most revered members, who said: we shall not use the
term definition, but we can surely describe what we are doing!  This
is the skilful “description” of freight forwarding services
that was invented in 2004 by Colin Beaumont (left) of BIFA and
still works perfectly today: "Freight forwarding and logistic services"
are services of any kind relating to the carriage (performed by single mode
or multimodal transport means), consolidation, storage, handling, packing
or distribution of goods, as well as ancillary and advisory services in
connection therewith, including but not limited to customs and fiscal matters,
declaring the goods for official purposes, procuring insurance of the goods
and collecting or procuring payment or documents relating to the goods.
Freight forwarding services also include logistic services with modern information
and communication technology in connection with the carriage, handling or
storage of the goods, and de facto total supply chain management. These
services can be tailored to meet the flexible application of the services
provided. This description is part of the statement still appearing on FIATA’s website, where you normally find materials produced only in the last few years, despite FIATA’s history dating back 98 years. FIATA was indeed founded in Vienna, AT on 31st of May 1926 and held its knowledge flame high and alive for almost a century now. From FIATA’s Congress organisers LinkedIn post you read that “the FIATA World Congress brings together logistics and freight forwarding professionals from around the globe to discuss current trends, challenges, and innovations in the industry. It serves as a vital platform for networking, knowledge sharing, and fostering collaborations among key stakeholders in the global logistics sector.” This has not changed much through the years I daresay. Today, on September 23rd 2024 I am sitting in my study in Turin and I am listening to SRF2 on the internet, as sort of celebration. SRF2 was the Swiss radio playing classical music in Zurich in my FIATA years, and it played in my office until I retired seven years ago. My 1980 Grundig portable stereo (with detachable loudspeakers) poured endless music and inflexible German accents onto the 5th floor of Schaffhauserstr. 104, Glattbrugg, CH since December 2011. Form Turin to Trieste, then to Brussels and Zurich and eventually back to Turin the little plastic wonder still plays beautifully today forty years after: in Turin it played RAI Radio3, in Brussels Musiq3 and in Zurich SRF2. Classical music helps my work, it always has. Precisely on the same day, in Geneva, IATA and FIATA release a PR announcing “FIATA’s endorsement of the IATA Cargo Handling Manual (ICHM). This follows an extensive one-year process of discussions, review and collaboration between the two organisations. The ICHM provides standardised procedures for airlines, ground handling agents (GHAs), and freight forwarders, ensuring consistency and efficiency throughout the cargo process. By adopting these standards, freight forwarders, airlines and GHAs will better align their operations, by leveraging their respective expertise in order to improve efficiency across the supply chain.” There is a bit more to read that tells you about the approach the association is taking now: "FIATA has worked closely with IATA in  reviewing
the ICHM, providing valuable input to ensure that it addresses the specific
needs of freight forwarders of all sizes around the world, including the
SMEs. The result is a set of standardised procedures that will enable faster,
more efficient processes, while also improving service to shippers. Crucially,
FIATA prioritises safety and security, and this collaboration ensures that
these key aspects are embedded throughout the handling procedures. This
strengthens mutual recognition across stakeholders, driving operational
efficiency, safety, and cost savings throughout the supply chain,”
said Stéphane Graber, (right) FIATA Director General. The
PR concludes that “FIATA’s endorsement of the ICHM aligns all
major players in the air cargo handling process around a single, consistent
set of global standards. It signals a new era of cooperation between freight
forwarders and airlines, underpinned by a shared commitment to operational
excellence.”I am not sure that all those who collaborated with the Air Freight Institute of FIATA for so many years would share this content word for word, but fact is that the two entities are back on the track of dialogue. Whether this evolves into a peer-to-peer conversation, as was desired for decades now, will be the subject of our subsequent studies. “Gerne werde ich mich überraschen lassen” (I shall be pleased to be surprised), as a good friend said when I asked him what he thought about this new development.  Congress
participants will come in from all corners of the earth as usual, the USA
will probably take advantage of the proximity with Panama and we know already
that “Board members of The
Airforwarders Association are viewing the Panama Canal Zone and the
city today, learning about this region's economic importance to our industry
and the world. We look forward to a Director's meeting on Monday, followed
by many of us attending the FIATA World Congress 2024 this week.”
This is what we read today from our friend Brandon Fried’s post on
LinkedIn. When serving as DG I would have arrived in Panama several days in advance and I guess Stéphane has been there in advance, as busy as one could imagine. So my best wishes to you, Stéphane for one more successful conference! As usual the programme is an exercise where diplomacy and sequence seem to sit on either side of the fence. This is indeed the most complicated thing to do when you organise the FIATA WC. Everything is important, the food, the entertainment, the networking opportunities, the hosting country’s flair, the Young Freight Forwarders Award, the technical meetings, the Board and Presidency meetings, etc. but the composition of the contents programme is quite a feat. Again, as I said on other occasions, it is a question of balance between the international nature of FIATA, the legitimate interests of the local organisers, the paramount requirements of the sponsors and supporters, who are all entitled to a bigger or smaller slice of the enormous interests the FIATA WC affords. All this must be mirrored in the mood of the times and trends that populate our agendas. It is a question of balance between interests, topics, personalities, abilities and a bit or supernatural intuition. For those who believe in the Zodiac, this congress opens its doors in the first decade of Libra, so it is bound to be balanced and distinguished. On Wednesday, 25th of September, the first Plenary presents the “View from the top: Emerging trends and forces shaping logistics” and we shall hear that “Logistics and trade are in a state of constant evolution, driven by shifting consumer demands, rapid digitalisation, and an ever-changing geopolitical landscape. In this dynamic environment, the role of logistics service providers becomes increasingly critical as engaged and active partners to customers. The session will gather high-level global actors to explore perspectives on the future of global trade and transportation, setting the stage for more in-depth discussions in subsequent panels. Attendees will gain insights into the current trends shaping the market, how the logistics sector is adapting to new realities and what strategies are being implemented to foster innovation and sustainability.”
One could argue that this is only relatively new, but then again the speakers are making the difference: Turgut Erkeskin, FIATA President; Philippe Isler, Director, Global Alliance for Trade Facilitation and Executive Committee Member, World Economic Forum; Rodolfo Sabonge, Secretary General, Association of Caribbean States; Ian Saunders, Secretary General, World Customs Organisation; Alberto Aleman Zubieta, Advisor to Panama Government will debate these popular issues and my hope is that some new insights will emerge, considering we are looking at these topics from an area where FIATA travels less frequently than usual: the Americas. Moderated by Michele Labrut, Americas Correspondent, Seatrade Maritime News, ça va sans dire… this debate will be one to follow. On the very same day there will be an “exclusive presentation of the B-READY report on Trade, the World Bank's flagship report benchmarking business environments and investment climates worldwide, presented by Nuno Mendes dos Santos, Private Sector Development Specialist, World Bank.” If the World Bank speaks, guess what? We listen.
“From Paper to Pixels” is the captivating title of the 4th Panel which will take place on the following Thursday in the morning. This panel will feature a conversation among the most knowledgeable speakers in this area: James Hookham, Secretary General, Global Shippers Forum; Peter Kern, Vice President Commercial, CargoX; and Yuntao Yang, General Counsel, Sinotrans, whose personal friendship is a reason of pride and honour for me. The panel will be moderated by José Angelo Estrella Faria, Principal Legal Officer, United Nations Commission on International Trade Law (UNCITRAL) with the following declared intention: “The role of freight forwarders has evolved from being purely an intermediary, to being architects of transport and logistics services acting as contractual carriers, assuming responsibility as principal for the entire goods transportation. The United Nations Commission on International Trade Law (UNCITRAL) has embarked on a pivotal project aimed at creating an international legal framework to support ‘negotiable cargo documents’, which could perform an analogous function as a maritime bill of lading for the carriage of goods in a multimodal or unimodal context. The project holds significant promise for freight forwarders as it will support and encourage the issuance of multimodal bills of lading (both paper and electronic versions). This session will explore industry needs for multimodal transport documents and the exciting opportunities that can be brought by this project for greater supply chain resilience.” Those of you who have read these pages in the past know that the path of digitization in logistics is long: it kept developing (or not?) over the years like a Echternach procession. In the end the universal digitization that we had hoped for at the end of last century has yet to take place, but things are moving forward and FIATA gave its substantial contribution to the process, participating at all levels of discussion for years. Fact is that the adoption of the MLTER has given the process some additional energy now and the end of the tunnel seems to get closer. From my point of view this debate is a must-see for all those who are interested in the future of our sector.
This year’s Congress boasts even a visit to the Biodiversity Museum, which is part of the entertainment package every attendee is entitled to enjoy. This is where the cultural night reception will take place. As tradition imposes there will be plenty of other meeting opportunities for all, such as the Welcome Cocktail and the Gala Dinner held at the Casa Veranda of the Grand Sheraton. One item that seems to have been handled with particular success by the organisers is the presence of partners, sponsors and exhibitors. If you peruse the page which lists their participation you will surely find some of the names that you are accustomed to deal with day in and day out. Within the many others – all worth mentioning several times – I think I need to pay a special tribute to the TTClub for its unconditional support of the FIATA Young Freight Forwarder’s programme and award, and to Avalon. Both entities provide insurance services and both have accompanied FIATA for so many years I cannot even remember when it all started. I know that all contributors are important, but these two guys have been there consistently for time immemorial. Credit to both, with thanks. I was not able to fly to Panama this time. This is unfortunate, but it is a fact of life. There is, fortunately, no reason to worry in terms of my personal health. This being said, I will be following the Congress from Italy and thanks to today’s technical means there are lots of ways to interact with my friends in FIATA. It would seem quite odd then that I urge you to fly out to Panama and join in the Congress, not having done so myself, but I do indeed! Please do join FIATA in Panama. The industry needs you, Panama needs you and all your friends in FIATA will want to see you there. It is the perfect opportunity to meet all your interests assembled in one place. And it will be fun, too. It has always been so and I am sure Panama will add an extra spice to the enjoyment. Remember that almost all FIATA Congress participants arrive tired from a long journey, often stressed by their tight schedules and their work chores. At times you can see in their faces the signs of pressure. Yet, through sleepless nights, long meetings, complex deliberations and the concentrated emotions they all leave at the end with a clear, happy face and the departing friends making promises to meet again soon, and this happens each and every year in a different location in a different country in a different continent. That’s FIATA! One of the PCO’s I talked with many years ago said to me (I was then FIATA’s DG): “Are you trying to tell me that we need to organise a 1000-pax conference with a different theme, a different organising team, in a different country, in a different continent every year? But, excuse me, that’s impossible!” I replied: “Yes, I know, you are probably right, but FIATA does it every year, and has been doing it for decades, so you should be thinking about it…” That is the magic with FIATA. If I cannot be there in person this time, I shall be there with my soul. Best wishes to my FIATA friends, the organisation, its Members, and all those who make this possible, the President, the Board, the Secretariat with its Director and everyone else. Best wishes to you all! Looking forward to seeing you all in Geneva next Spring. Marco Sorgetti |
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