www.bifa.org


Policy & Compliance


is an indication that greater emphasis should be placed on the needs of freight when locating logistics parks and warehouses. The report highlights that the regulatory


environment is a driving factor in shaping the choices that freight operators make, in particular driving change relative to safety and emissions- related issues. For instance, the move to EURO VI compliant vehicles is driven by tighter emissions regulations, but these trucks are more expensive to purchase than the ones that they replace. Vehicles represent a significant proportion of a company’s operating costs, particularly for smaller operators. However, the fragmented implementation of Clean Air Zones over a five-year period is causing issues for truck operators trying to work out the impact relative to vehicle utilisation. It is argued that aligning the implementation date will increase compliance levels for business and improve enforcement for the applicable councils The other significant issue identified relates to the lack of reliable data, which makes planning difficult. The report highlights the complex nature of the freight system, with numerous alternative routings being available for the same piece of cargo, dependent on circumstances. Improved data and modelling are seen as a priority to allow planners to make informed decisions at national and local level.


Reducing emissions Like the UK report, the EU announcement places considerable emphasis on reducing emissions from HGVs in order to comply with the Paris Agreement. From 2025, compared with 2019 emission levels, new trucks and buses will have to emit on average 15% less CO2


they will be required to emit 30% less CO2


. From 2030, ,


unless decided otherwise following a review in 2022.


Manufacturers will be penalised for failing to meet the targets but rewarded where they do. Learning from previous emissions scandals, there will be specific measures to ensure the availability of robust and accurate data. It will be interesting to see the content of the


final version of the ‘Future of Freight’ report, because it does try to examine the impacts of planning and regulation on our sector, plus the sector’s impact on the wider transport system and environment. It is encouraging that the interim report does acknowledge the importance of our sector, but we have to accept that some of our activities do increase pollution and congestion. However, what is not addressed is who will ultimately foot the bill for paying for more expensive trucks’ emission charges.


February 2019


BIFAlink


The cost of containers abandoned overseas


Why you may be liable for containers abandoned overseas and how to safeguard your company against getting into such a situation


One of the most frequent questions regarding problems on maritime shipments that BIFA receives is about containers that are sitting at overseas ports unclaimed or abandoned. Often the BIFA Member has closed the file with the goods shipped and carriage paid, and is surprised and concerned to receive a demand for storage and quay charges from the shipping line. Often Members say “but I am only an agent”,


or “but my name is not on the bill of lading”. We also see a variety of phrases such as “acting as an agent only” on pre-printed forwarder bills of lading, or similar wording as footers on correspondence issued by BIFA Members. Whilst in general terms anyone who undertakes a task for another could be called an agent, in law it is not what you say you are but what you do that defines the role you perform. Although some BIFA Members act as an


agent from time to time, the majority of transactions that occur are where a freight forwarder buys space from a shipping line or airline at one price and sells from its own tariff. In this scenario, the freight forwarder is a principal. If there is a later problem, for example, if the goods are not collected at the destination, then the shipping line will look to the freight forwarder for quay rent, etc, as the party it contracted with.


Another issue is that if you have goods sitting overseas and neither the shipper nor the


consignee can be contacted, you cannot simply abandon the cargo. The shipping line will sometimes take lien if the commodity is something that can be sold-on easily, but many commodities need specialist handling and the shipping line will look to the contracting party, the forwarder, for payment of such charges. It is impossible to safeguard against getting


into this sort of situation if your file has been closed and the consignee does not take delivery at destination. Of course, your shipper has indemnified you against such outgoings under the BIFA Standard Trading Conditions and is liable for such costs, but if it has ceased trading or simply gone away without trace the forwarder may find itself liable for the unpaid charges.


Office procedures


It is less likely that consignments from a regular shipper to a regular consignee will cause a problem. However, if you have concerns regarding the standing of your customer, it is suggested that Members have office procedures to close files or keep a log of when goods have been discharged overseas, which we understand may be difficult.


Having looked at the enquiries that we have


received on this matter, the main commodities involved include scrap materials, personal effects and charity goods, all of which tend to be low value. On the first mentioned commodity, Members should be aware that countries such as China are tightening up regulations, which may lead to an increased amount of such goods being abandoned. When confronted by such a demand, our guidance would be to minimise any exposure by asking what the line will accept as a commercial settlement and look at the impact of the recent MSC v Cottonex case, which in certain cases limits the period that quay rent and demurrage can be charged for. In the final analysis, Members will be forced to seek legal advice to establish their legal position.


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