#INTHEAIREVERYWHERE
Friday
March 14,
2025
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#INTHEAIREVERYWHERE |
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| Vol. 24 No. 14 | Friday
March 14,
2025 |
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FIATA Meetings Sláinte March 17 |
 The actor Gene Hackman died, together with his beloved wife, about a month ago after a long and successful life. One of his greatest performances was his role in The French Connection. His character as Jimmy ‘Popeye’ Doyle in the film represents the epitome of the intuitive and cunning detective, who is proven right against all odds and manages to successfully conclude his investigation. This was the masterpiece that our local TV decided to show to commemorate Gene Hackman’s life upon his death. When I was preparing for the FIATA Headquarters’, the film’s counterintuitive and intriguing plot came back to mind, because it exposes the incredible power of connections. In another understanding in Geneva this is precisely the meeting’s theme, but unlike the film’s underlying powerful criminal connections, appearing so strong as to even bend justice, FIATA’s interconnections are good – very good indeed – for international trade. That FIATA begins on Saint Patricks Day , with ‘Sláinte’ (to your health) to all, is not lost either, as these encounters in Geneva surely serve to energize the greening of logistics worldwide. The FIATA Headquarters’ meeting functions as a catalyst for FIATA Members to come together and discuss their interconnected interests as a global constitution, i.e. the only cooperation network that is able to reach all continents and markets without distinctions. FIATA covers more than 150 territories in the world with 40,000 plus companies, which entertain connections that took centuries to create and are worth billions. Having worked within the organization for so many years, it is mysteriously fascinating that all this comes to make sense in FIATA’s functioning, as though the association had a supernatural driving force from within.  In
preparing for this event I thought it was a good idea to explain how FIATA
is moving forward in this uneasy period for the trading community, so I
have daringly exploited my private connection with dr. Stéphane Graber,
the omnipresent Director General, whilst this is probably the worst period
to ask him, considering his schedule. I really appreciate that he was so
kind to accept my questions and reply with a series of statements showing
his professionalism and profound understanding of the situation. His answers
are always completely appropriate and insightful, without excess and with
reasonable hope for the future. This is the measured approach an organization
of this level requires. Kudos to Stéphane to timely return his thoughts,
which allows me to meet the Opening of the FIATA Headquarters on March 17th
with this article. If you wish to see how this inimitable bee-hive of initiatives
works . . .Well, serve the feeling you get, jump on a jet and come to FIATA in Geneva and see it with your own eyes! FT: Anything that will make a difference in this particular HQ compared with past editions? SG: Since we revisited the formula of the FIATA Headquarter meeting with its move to Geneva, its significance has steadily increased making it one of the key annual events to attend, along with the FIATA World Congress in autumn. Being in the heart of Geneva allows us to mobilize the main international organizations (IOs) leading the logistics framework, from the United Nations agencies to the ITF, WTO, WEF, UIC, OSJD, IRU, ITC, GSF, DCSA, ICC and DSI, to name just a few of the IOs that will interact with our members in a very unique format, through interactive working discussions on the challenges of modern logistics today. This year again, we ensured a high attendance of experts and leaders for our members. After having the momentous participation of Willie Walsh, IATA Director General in the 2024 edition, we will welcome this year the former Vice-President of Paraguay to discuss the Bi-Oceanic corridor, as well as the senior expert for logistics at McKinsey to give us a view on the market trends and dynamics and how freight forwarders can navigate the evolving environment. Another highlight will be the launch of the new FIATA Container Packing App to assist FIATA members in providing the highest level of practice in safety and security. FT: What is your priority list in addressing the major issues in multimodal transport logistics? Is there a specific outlook for freight forwarders in these issues, has FIATA common interests with other operators in the Supply Chain? SG: Collaborating with other operators in the supply chain to share best practices and resources is at the top of our priorities. It is essential for freight forwarders to stay updated with the latest trends, tools, and expertise to better serve their clients and being able to implement innovative solutions to enhance efficiency and security of logistics operations. In that respect, freight forwarders share several common interests with other operators in the supply chain such as the adoption of digital technologies and sustainable practices, the prevention of cyber risks, the building of resilience and optimizing logistics to withstand disruptions and improving the efficient flow of goods across different mode of transport. As the only pure multimodal operator, freight forwarders play a key role to interconnect different transport network systems. FT: Stéphane, after a few years on the job now, you are as busy as a FIATA DG can be. We see you are travelling to the four corners of the world. The necessity of keeping the public image of FIATA is surely worth your efforts, but perhaps there is more for FIATA Members they can use in their daily business that you wish to communicate and promote? SG: The world is global, and FIATA needs to be close to its members because our mission is to serve them. Developing tools, solutions, and expertise to help them navigate uncertain times requires that we bring this work to them and stay close to the reality of their day-to-day challenges. This is essential to understand how FIATA can create value for them. It is not conceivable for any successful organization to look at the world from its ivory tower and expect the world to come to you. Too often, we are confronted with logistics companies that ignore what FIATA stands for and how it can help them. We need to be present to support our Association members in getting visibility in their market, attracting new members, engaging with their politics, and addressing some of their challenges by sharing best practices. It is not about public image, but about partnering with our members and being relevant to them. Freight forwarding is primarily an industry of people, and personal contacts are key to any collaboration that aims to deliver value. Some examples of concrete results of recent FIATA visits to our members include: • The forthcoming implementation of the FIATA Diploma in freight forwarding in Saudi Arabia. • The support of the Vietnamese Prime Minister for the next FWC 2025 in Hanoi. • The launch of the ICAO FIATA Dangerous Goods by Air Programme in Peru with our new Association members APACIT. • The return of the Cambodia Logistics Association (CLA) to FIATA as an Association member and the work towards extending access to FIATA training to Cambodian logistics companies. By staying close to our members, partnering with them and understanding their needs, we can ensure that FIATA continues to deliver value and support their success in the logistics industry. FT: An example comes to mind: recently FIATA entered the sphere of the IMO, which in a way is a dream fulfilled for FIATA. What consequence would you register, save the additional work for you, in this development? Any new development in transport documents or contract conditions that we need to note? SG: Being engaged with the IMO allows FIATA, as the only observer organization representing freight forwarding and logistics, to express the voice of freight forwarders in important decisions that significantly affect their day-to-day operations. This includes IMO initiatives in data exchange within port single windows, decarbonization, and trade facilitation. Leveraging the tools put in place by FIATA in its Digital Strategy to gain better visibility on shipment information will also be important to ensure seamless data exchange while preserving data ownership and protecting sensitive commercial information. FIATA’s engagement at the IMO also allows FIATA to have a say in how the supply chain will become more sustainable and interconnected, leveraging the central role of freight forwarders in multimodal logistics. It enables better partnerships and collaboration with other supply chain operators such as IAPH or CIG Group, ensuring that the realities of the freight forwarding business and its constraints are well understood. This collaboration helps in working jointly with these other operators within IMO towards solutions that are mutually beneficial for all actors in the supply chain and make the movement of freight more seamless. Through its observer status, FIATA aims to contribute on key maritime supply chain advancements, aiming to enhance efficiency and security of logistics operators while promoting eco-friendly practices.
FT: FIATA is the leading organization representing freight forwarders in the world and one of the largest transport related associations. FIATA has launched a powerful digitalization agenda in cooperation with several partners. Is there any emerging sign of speeding up the adoption of modern technology in the sector? Which are the aspects of the digital agenda that seem to have best chances to come to fruition soon? SG: The question is no longer if digitalization of logistics will happen, but rather when. FIATA's mission is to ensure that every one of its logistics members is equipped to become digital freight forwarders and understand how to best use technology. The large constituency of SMEs within FIATA needs to be able to continue operating and competing in the market to preserve a dynamic and diversified freight forwarding industry that benefits the supply chain and the shippers. Last year, FIATA sold over 2000 electronic FIATA Bills of Lading (eFBLs), and we see a growing demand for unlocking access to the FIATA standard and digital services. With 42 freight forwarders onboarded and issuing eFBLs, and the eFBL available now through 48 software platforms worldwide, we have built a solid basis for demonstrating that eFBL can be used day-to-day by our members. We also recently completed fully digital pilots using the eFBL on real-life transactions – one being mainly rail transport with very short processing time which successfully received financing by a bank, which indicates some great opportunities for how the eFBL can significantly facilitate operations with short transit times. But modern technologies go beyond the digitalization of transport documents. We must consider the potential of AI, the generalization of data analytics and predictive models, the rapid development of robotics, and one day, self-driven transports. These advancements will further enhance the efficiency and capabilities of the logistics industry, ensuring that FIATA members are well-equipped to navigate the digital future. FT: Innovation in logistics is meant to benefit first and foremost the “originators of the trade”, who happen to be freight forwarders’ customers. In FIATA’s perception, are shippers showing visible interest in fostering innovation in their service requirements? SG: FIATA is very close to shippers and works hand in hand with them. We have noted that what is good for our clients is also good for freight forwarders. We share the same objectives for seamless logistics and for an efficient and resilient supply chain that optimizes the cost of logistics. When it comes to services, their quality is key in a competitive market like freight forwarding in best serving their customers, but unfortunately still leaves a significant margin of improvement when it comes to carriers, particularly with shipping lines. FT: Through the years we have heard the news that “freight forwarders are going out of business” so many times by now that we can probably no longer even remember who was the first to make such statement . . . What is your expectation regarding the future of freight forwarding, in this rapidly changing world? SG: More than ever the world is uncertain. Conflicts and disruption are the new normal and logistics operators that are adapting to the evolving world and are able to help their customers to optimize the delivery of their freight will always have a place. The industry will evolve and adapt, but its role to interconnect diverse transport mode and managing complex logistics systems integrating sustainable factors, in addition of time and cost, in a disrupted world, will continue to be valuable for shippers. FT: FIATA seems to be launching a serious regionalization agenda, multiplying its initiatives at regional level. Is this just a sign of Members focussing on their own areas or is it also a sign that in today’s day and age logistics is becoming more regional? Is this connected with the expectation that higher tariffs will accelerate reshoring and near-shoring? SG: This is more linked to the deglobalization trend observed over the past several years. While FIATA needs to adapt to this trend and stay close to its members, it also maintains the benefits of a global organization by connecting regional blocks and facilitating the exchange of best practices beyond regional boundaries. More than near-shoring or reshoring, we are already observing friend-shoring as a consequence of today’s economic policies led by certain actors. Like every economic cycle, the current tariff trends are not favorable to the global trade that has brought so many people out of poverty and will affect living standards. Freight forwarders will have to operate in a very challenging environment and enhance their efficiency to maintain affordable logistics. FT: In closing this interview, Stéphane, whilst thanking you for your patience and kindness, is there a message that you wish to send our readers to promote FIATA and its considerable constituency? SG: I would like to thank all FIATA members and partners for their great support and invite everyone who has an interest in supporting modern logistics and global trade to join FIATA in its efforts to create more sustainable, efficient, and resilient logistics. FIATA needs the expertise of the market to navigate the logistics industry through uncertain and disrupted times. The success of freight forwarding in the years to come will rely on our adaptability and the quality of our collaboration with other actors in the supply chain and among ourselves. By unifying all logistics actors globally and working together, FIATA will be able to drive the logistics industry forward serving its entire ecosystem and fulfil its vision to build a logistic without borders for a digital and sustainable world. Marco Sorgetti |
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