The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen Multimodality Legal, Political and Practical Environment FIATA provides practical tools for global logistics Marco L. Sorgetti, FIATA, Director General CIT Building, Bern September 5 th 2013

All below figures are dated 2011

 From the FIATA website: “Freight Forwarding and Logistic Services” means services of any kind relating to the carriage (performed by single mode or multimodal transport means), consolidation, storage, handling, packing or distribution of the Goods as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the Goods for official purposes, procuring insurance of the Goods and collecting or procuring payment or documents relating to the Goods. Freight Forwarding Services also include logistical services with modern information and communication technology in connection with the carriage, handling or storage of the Goods, and de facto total supply chain management. These services can be tailored to meet the flexible application of the services provided. Description of services

A collaborative environment  There are many ways LSP’s and/or Freight Forwarders manage to create a logistics collaborative environment:  As a partner of shippers and carriers the freight forwarder is able to conciliate the different interests and views of the parties involved in the transportation chain with its expertise and market competency.  The freight forwarder deploys a brokerage assistance by bringing the interests of shippers and carriers more in line with each other by drafting contracts and arranging transportation in accordance with the interests of both parties  The freight forwarder facilitates market access by providing consolidation and de-consolidation services, where it acts as principal for both shippers and carriers  The freight forwarder fills all possible service requirements to the full range of shippers’ demand, regardless of modes and domains

Need a specialist? Multimodal Transport does not happen by magic: Global logistics in most of the cases needs a combination of 2 or more transport modes and this needs some specialisation  Freight forwarders are familiar with different means of transport and are aware of the many differences that still exist  in the laws and rules in different countries or areas;  in the legal status of the different actors in the transport chain;  in the conventions and regimes in different transport modes;  in the liabilities of different actors of different transport modes.  In the working mores and habits of the SC parties/partners  Some see such differences as shortcomings, but freight forwarders take them as facts of life and work around them.

Let us be practical LSP’s and freight forwarders’ role in trade facilitation: With technical expertise, professional qualification and adequate investments freight forwarders are ideal “facilitators” and partners both for carriers and shippers. The forwarder’s facilitation tasks require flexibility, freedom of contract with shippers and carriers and the availability of reliable and competitive means of transport. In reality, regulatory requirements are not allowing great flexibility and the reliability of the means of transport is not always optimal. Good cooperation with air, maritime, rail and road operators is crucial for freight forwarders and for efficient SC’s The market requires a solution which is not only maritime, air, rail or road, but offers alternatives FIATA has a long history in providing same, but any contractual carrier can provide a multimodal bill of lading, as long as it is available to accept the increased liabilities.

FIATA’s statutes enshrine the following objective under article 2: Being active in the determination of customary usage/regulations in international business. This was already on the radar on April 24 th 1978 (ICC’s approval of FIATA Combined Bill of Lading) and in June 1993 (ICC’s confirmed uniformity of FIATA FBL meeting UNCTAD/ICC rules) Moving Targets FIATA encourages ALL efforts deployed to create additional facilitation for traders in general and logistics service providers in particular

FIATA has created several documents and forms to establish a uniform standard for freight forwarders worldwide Each document has a distinctive colour and carries the FIATA logo All FIATA documents will be made available electronically FIATA documents are multimodal native

Why digital FIATA documents FIATA branding is a powerful instrument to  Suggest accountability and good practice  Ensure adherence to state of the art international standard Today’s connectivity requires FIATA documents to be electronically  created,  distributed and  negotiated The ability to issue a document that is widely accepted as a multimodal document of title and can be thus negotiated is crucial in today’s trading environment:  With enhanced connectivity, cost savings and speed of operation e-logistics will open new market opportunities both for freight forwarders and their partners.

There are open questions  Black Sea ferries still covered by different conventions  Railway services China to Europe and vice versa still present uncertainties  Different regimes require transhipment in Urumqi  Two routes are used for the exchange of goods depending on the destination in greater China:  a northern route along the entire Trans-Siberian Railway and via northern Mongolia for the North and Northeast of China  or a southern route via Kazakhstan for the rest of the country  Differences exist between European and US railway companies, is the US system a viable example?  The railway system in the United States, where the modal split is almost 50:50, could be perceived as a better example if compared with Europe, but modal integration in the US is not exemplary either, it is predominantly ocean-rail or ocean-road.  Rail/air integration is still not as developed as it could be  Inland waterways integration with other modes is still not fully achieved

Multimodal transport chains show clear nodes where boxes can “naturally” pass from one custodian to the next one: ports, airports, terminals etc. There is an advantage for all SC segments to focus on their natural function in the chain with a view to increasing its efficiency Whose box is this?

In conclusion Seamless transportation in logistics is not yet achieved, but many are working in the right direction, despite persisting uncertainties FIATA took a practical approach to non-asset-based contractual carriage early in transport history and gave solutions which still facilitate both shippers and carriers The availability of FIATA documents works as a multiplier of shippers’ choices The electronic format will work for the advantage of trade in general –FIATA believes this is crucial step to ensure continued economic growth, greater integration and improved connectivity among FIATA Members and between Member and their customers as well as their service providers Collaboration with other transport related Associations is not only welcome, it is conducive to making the best use of FIATA DOCUMENTS

Thank you!