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Issue 1 2019 - Freight Business Journal The FTA Column


Brexit: where are we now?


By James Hookham, deputy chief executive, Freight Transport Association (FTA)


While it has been another dramatic time in Parliament, the UK and the EU are still no closer to reaching an agreement on their trading relationship post- Brexit. This ongoing uncertainty is the cause of much frustration and apprehension for the logistics sector. And with less than 60 days until Brexit, future trading and transport conditions remain unknown, making it diffi cult for supply chain managers to best plan their operations for the second half of 2019 and beyond. As negotiations continue to


stall, a no-deal withdrawal is becoming a real possibility. This


would be a highly damaging situation for Britain and the logistics sector. Theresa May said that frictionless trade would continue in her Lancaster House


speech in


2018 and this is a key priority for those charged with moving the goods and services which the UK’s economy needs for continued success. The logistics industry is at


the heart of that economy: 22% of UK companies are either directly involved in or highly dependent on logistics; these companies also employ a third of the UK’s workforce. A No Deal Brexit would leave


logistics


operators facing increased red tape, longer delays, rising costs and restrictions to access and to skilled staff . According to government-commissioned research,


just an 80-second


Customs check of each lorry at the border would lead to permanent gridlock across the South East, and further afi eld within days. Furthermore, the sector is heavily reliant on access to non-UK workers: there are currently 43,000 HGV drivers alone employed from the EU27 countries and with no permission to work, their absence would exacerbate an already acute skills shortage. While


the logistics sector


is known for its agility and fl exibility, time is now running out for it to make the necessary preparations for a No Deal Brexit. FTA is continuing to lobby


government to provide what the logistics sector needs – clarity on payment of tariff s and duty,


a frictionless border, and access for vehicles and to staff on both sides of the border. Effi cient logistics is vital to


keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move


Insurance No cargo is safe


Whether on the road or in the warehouse, thieves have your valuable goods in their sights, says TT Club senior claims executive, Mike Yarwood.


Smart Tracking Data Network for Shipment by Inland Waterway WORKSHOP


Join the ST4W Consortium for a workshop on the 20th February 2019 in Liverpool John Moores University, UK


Leading international transport and logistics insurer, TT Club in conjunction with BSI Supply Chain Services and Solutions has launched the fi rst joint 2018 Semi-Annual Global Cargo Theſt Intelligence and Advisory Report. It brings together threat and intelligence data from BSI’s supply chain security country risk intelligence tool, SCREEN and


TT Club’s insurance


risk management and loss prevention insights. Several key fi ndings from the report


TT Club/BSI highlight


This workshop is part of a series aimed at determining industrial needs, requirements and limitations of current Inland Waterways practices in the UK.


We address the following topics:


• Raising the awareness of the potential of inland navigation in the UK • Current policies in the UK IW sector • Future improvements and technological advancements


A great opportunity to network and to create awareness of the competitive advantages that UK inland waterways can offer compared to other modes of transport!


ST4W…


proposes a management solution for shipment by inland waterway transport, providing to SMEs a simpler and cheaper access to secure data, and enabling them to share a hierarchical track & trace service of shipment, complementing the RIS


the severe impact of cargo theſt . The food and beverage sector in particular suff ers from the highest rates of cargo crime across the globe, accounting for 27% of


all incidents with


1. Confirm attendance via Gergana.zaharieva@inlecomsystems.com 2. No registration fee for workshop participants


consumer products and hi- tech electronics industries also suff ering heavy losses. Transport by road is the most oſt en targeted mode for cargo crime across the globe, contributing to over 75% of all cargo theſt incidents, with warehousing the second most vulnerable target at 19%. BSI and TT Club


have


authored this report to help educate transport operators, importers, exporters and shippers about cargo theſt risks across the globe. By raising awareness, industry will be able to take a proactive approach to preventing cargo crime and minimise fi nancial loss and brand reputation damage. The aim is also to disseminate


loss prevention advice to counter the threats outlined in the report. The risk mitigation advisory sections have been co-authored by BSI’s Advisory


Supply Chain Security team and TT Club’s claims and loss prevention team. The report is available as a free download: https://preview.tinyurl.com/ y8cvur6f As


road transport


has been identifi ed as by far the most vulnerable mode it is worthwhile looking at actions that could reduce the risk of freight theſt , especially the need for clear instructions and a disciplined approach to ensure they are kept to. Theſt s occur mainly when


the vehicle and cargo are at their most vulnerable short breaks or daily rest periods. It is the driver who decides where the vehicle is parked during such periods, so what instructions should be passed to them? Many shippers are


increasingly risk aware and include prescriptive instructions


in contracts on


where they expect trailers to be parked at any given time. Instructions may include stipulations about ‘secure’ parking, exclusion zones, double manning the vehicle or the driver never leaving their


vehicle whilst loaded.


A common requirement is a restriction on sub-contracting without the shipper’s prior knowledge and consent; this can be particularly restrictive for many operators. Consider


also how this


information reaches the actual driver, who is ultimately in charge of the truck and where it is parked at any given time, as well as compliance with any working regulations. However, passing instructions to the driver does not eradicate


///NEWS


across borders and through the supply chain, logistics has never been more important to UK plc. A champion and challenger, FTA speaks to Government with one voice on behalf of the whole sector, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers.


the risk; a number of moral and physical hazards continuing to exist.


A ‘physical hazard’ is that


in many parts of the world there are not enough secure parking locations and demand outstrips supply. The cost of parking at such


a facility is a ‘moral’ hazard. Where profi t margins are particularly low, the truck operator has to decide whether to ensure the vehicle is parked within a secure but costly site or allow the driver to elect where to park; risk versus cost. Drivers will get to the


delivery point, hoping to be unloaded ahead of the scheduled booking time or date. Frequently drivers are turned away by the consignee for operational or capacity reasons. Moreover the consignee is


unlikely to have the available space on site to allow the truck to park. There may also be issues such as restrictions on insurance cover to store cargo in this way. This places the driver,


whose available driving and working time may be expired, in a challenging situation. They may now be obliged to park immediately outside the consignee’s premises and, since criminals invest hours profi ling the movement of goods through the supply chain, they may be well aware of the nature of goods being delivered. This clearly needs to be


countered by diligent security procedures, driver training and management awareness of the risks. Attractive cargoes must be particularly protected, driver parking options better resourced and professionally designed. Above all, appreciation of the true value of the ‘last mile’ link in lengthy supply chains must be fully appreciated.


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