FlyingTypers Logo
FlyingTypers Ad
   Vol. 13 No. 87  
Thursday October 16, 2014


Milan Prologue
As FIATA Meets

Milan Prologue As FIATA Meets
As FIATA meets in Istanbul this week, past interplay between shippers and their immediate partners—the forwarders—earlier last month at the 6th Annual Cargo Handling Conference (ACH) fits in nicely with the conversation stream of the moment.

Tjalling Boonstra     Vice President Air Product EMENA at UTi Tjalling Boonstra (left) and Director of Special Programs, Air Cargo Netherlands Ferry van der Ent spoke at ACH under the heading of Areas for Improvement, the forwarder/shipper view.
     In no-nonsense terms, Tjalling Boonstra touched areas that sounded to us like basic training to building the relationship.
Important and obvious factors like visibility/transparency fall under the header of what the shipper needs to know:
     Where is my shipment at which time (preferably on unit–box pallet); real-time information (automation, please); and under which conditions are goods stored (cool chain).
     The point was also made about the need for speed: What is needed to reduce the total transit time to within two days.
     “In many cases, releasing the goods two hours earlier could result in total reduction of one day for the delivery,” Mr. Boonstra said.
     “This is a key KPI for GHA and/or forwarders.”
     Cold chain GDP was touched upon: There is an increased need from pharmaceutical industry for control throughout the supply chain. “Cool chain products need to be handled separately (admin and physical) from other flows,” Mr Boonstra declares.
     “There is a need for trained people to work in a GDP compliant way.
     “The industry needs to be ready to be audited, but feedback should be taken positively.”
     Reduction of costs through integration of processes:
     “There is an opportunity for ground handling agents to provide services to smaller forwarders.
     “Instead of multiple parties pick up, delivering to GHA why not coordinate milk runs?”
     There is too much focus on reducing costs: (a little self-criticism of the shippers).
     Forwarder and, consequently, the carrier selection of the GHA is becoming more and more dominated by procurement departments with the number one intention of reducing direct purchasing costs.
     “One way of getting out of the selection based purely on cost can be to offer different prices for different services, for instance, express service vs. regular handling,” Mr. Boonstra said.

Ferry From Amsterdam

Ferry van der Ent      Mr. Ferry delivered the Amsterdam view at ACH by looking at some of the projects targeting freight forwarders and shippers.
     These include:
          •  a pharmaceutical center that can meet increasing demands of shippers
           •  additive manufacturing (3D printing) and identifying the impact on the future supply chain.
           •  fast lanes - optimized supply chain by minimizing checks and party dependencies.
           •  a consolidation center with a new definition for first and second line use that will decrease queues and waiting times.
           •  specialized engine handling and e-freight, meeting IATAs 22 percent e-AWB ambition in 2014.
     There are also plans to implement e-link, which will enable a faster shipment delivery process (no more paper handling and fewer personnel at the handler desk) and will shorten dwell time for the trucker with an average of 15-minutes faster handling times.
     The direct savings will result in millions of Euros.
     Shippers and consignees will also be involved in the information exchange through the digitization of first and last mile, including digital invoices, packing lists, certificates of origin, shippers letters of instruction, and dangerous goods certification.
     The solution recognizes that 75 percent of the data comes from the shipper and the plan is that the database can accept and EDI message from any system to the community portal, which can then format the data into XML based messaging.
     Ferry noted that success depends on “supply chain performance; space and IT infrastructure are key with safety and security also being key drivers.”
     Patrick Murray Head of the leading Dubai-based IT resource Calogi, offers his take on all of this:
     “Certainly more needs to be done to engage shippers.
     “More often than not, as direct customers, shippers drive forwarders’ behavior.
     “We at Calogi have long recognized that the data elements provided by the shipper make up a significant part of the shipment data, hence the development 6 years ago of an online shippers letter of instruction, which creates the forwarder shipment record.
     “A connected community where data is entered once and re-used has significant benefits; the challenge is how do we get there.
     “I have heard anecdotal evidence that suggests that shippers currently do not share data with forwarders, and even though forwarders offer portal services to allow shippers to capture the data, this approach has not been popular, presumably because the shipper has to create the data in both his own system and that of the forwarder.
     “Perhaps FIATA could take the lead at this shipper/forwarder data sharing aspect?”



If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Access complete issue by clicking on issue icon or
Access specific articles by clicking on article title

VOL 13 No. 84
Herculight S Lifts United
Quote Of The Day
Pistole Whips Talking Points
Chuckles For October 8, 2014
Cargo Cameo Reveals Incheon
Delta Cargo Delivers At ACF
Nabil Handicaps ACF
Seoul Searching DMZ
VOL 13 No. 85
TIACA Faces Bleak Winter
Chuckles For October 10, 2014
In The Picture