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Issue 5 2014 - Freight Business Journal Germany 777, Brazil...

Just days before Germany sent Brazil crashing out of the World Cup in Belo Horizonte, Luſthansa Cargo christened its fourth Boeing 777F ‘Olá Brazil’ – ‘Hello

Brazil’ in Portuguese - its

commitment to mark to the South

American country as well as an important occasion in the football calendar. The five brand new

Boeing 777Fs names all follow the theme, ‘Say hello around the world’. One hopes the Brazilians had the grace to return the compliment.


TAPA launches new standards to combat cargo crime wave

The Transported Asset Protection Association (TAPA) has launched what it says is the most comprehensive supply chain security standards for facilities and trucking in its 17-year history, to combat increasingly sophisticated theſts by organised criminal gangs. The new 2014 versions of the

Association’s Facility Security Requirements and Trucking Security Requirements are the result of a year-long review process by the 800 TAPA members worldwide. Cargo crime is no longer

Anglo-Irish height limit is safe, for now

In a report back to the UK Government, MP Robert Goodwill – who attended the Transport Council meeting in Luxembourg on 5 June – said that movements of trucks over four metres high between the UK and Ireland had been safeguarded, at least for the time being. However, he added that there

was still great legal uncertainty, with some member states pushing for legal clarity and others refusing to support any changes to the rules on vehicle dimensions. He said: “I strongly supported

a proposal which would have provided the legal certainty the UK was seeking in order to safeguard

the long-standing cross-border movement of vehicles of over four metres in height between the UK and Ireland. This was supported by several other member states. There was, however, significant opposition and as a result the Presidency had no option but to conclude that no changes would be made to Article 4 in order to secure a deal on the overall file.” However, following lobbying

in the margins from the UK and other like minded member states the Commission agreed to make a declaration reaffirming that their interpretation of the directive is that if two neighbouring member states both allow vehicles that deviate

from the requirements in the annex, then those neighbouring member states may permit the cross border movement of these vehicles, but not more widely. “This was a positive outcome for the UK as it confirmed that our existing cross-border practices could continue,” Goodwill said. Transport ministers also backed

proposals for new EU rules to allow manufacturers to develop more aerodynamic lorries which will reduce fuel consumption by 7-10% and improve safety, although the European Commission said it regretted that they are proposing an eight- year delay before the new rules come into force.

petty, opportunist theſt carried out by individuals. Today it is co-ordinated by organised and oſten violent international gangs who hijack vehicles or carry out fraudulent pick-ups, fake ‘police’ stops, bogus personnel, slash open trailer curtains or attack moving vehicles. Paul Linders, who leads TAPA’s

global standards committee, said: “Cargo crime as a whole is increasing. One of the biggest challenges we face is getting businesses and law enforcement agencies to report loss data, to help us understand the true scale of the problem and to provide intelligence that helps

companies plan their supply chains using the latest market information. “At TAPA, our analysis tells

us that losses suffered by our members are three times lower than the industry average, although that leaves absolutely no room for complacency. The cost of a single loss can be between 4-11 times its original value; the TAPA standards can significantly contribute to measurable supply chain risk management.” Cargo crime figures for the

Europe, Middle East and Africa region for 2013 showed a 66% increase in incidents reported to TAPA’s Incident Information Service (IIS), with an average loss figure for the 1,145 recorded

crimes of €235,000. The loss value of the 10 biggest cargo crimes in the region last year was over €55 million. In the first quarter of 2014,

TAPA America recorded a total of 196 theſts in the US. The largest single crime was

the theſt of a truckload of cowboy boots stolen from Carrolton, Texas, which had a declared value of $2.2 million. TAPA APAC recorded 215

cargo theſt incidents throughout Asia in 2013, a slight drop from the 2012 record high of 228. Of the 215 cargo theſts, 49% were hijackings, while 20% were theſts of loads from trailers. Clothing, footwear and metal

products accounted for 56% of the recorded incidents in 2013.

ASOS fire shows up global supply chain risks

The fire at the Barnsley

warehouse of online retailer, ASOS on the night of Friday 20 June highlights the risks to the modern supply chain, says the CEO of the Ti transport consultancy, John Manners-Bell. The global retailer kept 70% of

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its stock at its distribution centre in Barnsley and it is believed that the fire could have affected more than £30m ($50m) of inventory. ASOS suspended orders over its website for a time, although these recommenced three days later, on 23 June. Manners-Bell, author of the

recently published ‘Supply Chain Risk’ book, commented: “One of the problems of operating global distribution centres is the concentration of risk in one location. Centralisation of logistics operations makes sense on an operational basis in terms

of keeping stock levels low and reducing redundancy. However if you start costing in external risks such as fires, floods and security issues, then suddenly it doesn’t look so smart.” And as it is very difficult to

quantify the financial cost of such events, many companies pretend that they don’t exist, he said. He added: “To get back up

and running so quickly, ASOS obviously had exceptional contingency plans in place, no doubt helped by an earlier experience when its previous distribution centre in the UK was badly damaged by


oil depot blast. However this further disaster demonstrates the systemic fragility of many global supply chains and perhaps suggests that it would be sensible to spread risk over

a number of locations, despite an increase in internal supply chain costs.” Meanwhile, the Unite trade

union complained that Norbert Dentressangle, which operates the site, had refused for the last 12 months to allow it access to the workforce, despite the fact that it has recognition agreements with it at other UK sites. Unite says it wants to be

allowed to talk to the 1,200 workers on health and safety issues, following the fire. Norbert

Dentressangle, 1,200 workers at a

major European transport and logistics company, employs about


Grimethorpe site – but has no recognition agreement with Unite, although other company sites across the UK enjoy such recognition.

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