News
Paperless air freighting for New Zealand
Willie van Heusden, president of the Customs Brokers and Freight Forwarders Federation (CBAFF), has welcomed the announcement that New Zealand will adopt paperless air freighting by 2009.
The International Air Transport Association (IATA) announced at the end of June that New Zealand is among 11 new locations identified as ready for its e-freight programme following stringent assessments. “New Zealand’s freight industry has made great efforts to ensure it was prepared to become an early adopter of the IATA e-freight initiative,” Mr van Heusden says. “This will support the drive to improve sustainability in the supply chain as well as enhancing efficiency, reliability and speed and lifting productivity without adding cost to the supply chain.”
The move follows the successful implementation of e-freight in Canada, Sweden, UK, Hong Kong, Singapore and the Netherlands in 2007. Germany, Mauritius and South Korea have launched projects which will go live this year. The 11 new locations are New Zealand, Australia, the USA, Dubai, Luxembourg, France, Spain, Switzerland, Iceland, Denmark and Norway. Five will be selected to launch e-freight in 2008. The rest will be targeted for launch in 2009.
IATA’s e-freight drive – to eliminate the production and transport of paper documents for air cargo shipments – will be a major development internationally. When combined, documents used annually could fill 39 Boeing 747 cargo freighters. The target is to implement e-freight across the board internationally by 2010 and it is projected to save the industry an estimated US$1.2 billion annually.
IATA e-freight requires that business, technical and legal frameworks are in place to allow airlines, freight forwarders, customs administrations and governments to seamlessly exchange electronic information and e-documents instead of paper.
Teams of experts from participating airlines, freight forwarders, shippers and customs organisations in each location will now create local implementation teams. Their efforts will be supported and guided by IATA standards, e-freight operating processes and one-time data entry.
New Zealand and Japan sign MRA
From the NZ Customs Service Contraband magazine
New Zealand and Japan have signed a Mutual Recognition Arrangement (MRA) that will enable exporters in both countries to reap the benefits of a close working relationship that has developed into only the second MRA in the world – New Zealand signed the first with the US in June 2007.
The MRA with Japan, signed by Customs comptroller Martyn Dunne in Tokyo in mid-May, enables businesses in both countries to take advantage of the certainty offered by New Zealand’s Secure Exports Scheme (SES) and Japan’s Authorised Economic Operator scheme (AEO).
“About 106 New Zealand companies are part of the SES scheme, and in February this year a number of Japanese companies were part of the AEO scheme,” says John Wech, Customs manager of international programmes. “For these companies, the MRA offers the competitive advantage of a more efficient supply chain, as there is less risk their goods will require inspection at the border.”
This is possible because of the investment made by those companies in securing their supply chain. “This includes securing facilities and premises when packing cargo, providing the correct documentation for goods, and ensuring that those goods are packed in secure locations by employees who are no security risk,” says Mr Wech. “It’s important for us to know that what they say is in the shipment is actually in it.”
Once packed, the containers receive high-security seals, protected under New Zealand legislation, which mean the goods are under customs control. Truck drivers must ensure that nobody tampers with the shipments, from the point of pack until their loading at ports. Currently the MRA applies only to FCL (full container load) sea cargo and approved bulk cargo shipments, but the two countries will continue working to expand the arrangement to cover other forms of cargo.
“Arrangements such as this are vital in a world trade system where just-in-time inventory systems are prevalent and continuity of supply of goods is as important as speed of delivery,” Mr Wech says. “In the event of a disruption to world trade, the MRA means cargo carried by those companies covered by the arrangement will be expedited much more quickly than that of companies without the security clearance.”
Working group agrees VBS service fee
Ports of Auckland’s proposal to introduce a service fee for its vehicle booking system (VBS) has been accepted in principle by the New Zealand Road Transport Forum.
A service fee of $2.50 per container will apply effective from 1 August. Individual transport operators will incorporate the service fee and associated administration costs within their charging regime.
Ports of Auckland transport manager, Jon Ward, says he is pleased with the outcome achieved by working closely with the road transport industry. “Having established a sound working relationship and a basis for understanding operational issues, the port and the road transport community are working together to ensure the most efficient and cost-effective supply chain for
New Zealand,” he says.
“The VBS has been highly successful in achieving its aim of reduced truck queues and consistent turnaround times. The efficiencies created via the trial process and the working group provide real benefits for the transport community and the supply chain as a whole.”
The VBS has enabled improved resource allocation at Ports of Auckland, and therefore reduced truck turnaround times to within world-class standards. The average truck turnaround time since the system was introduced in November last year is 25 minutes (combined monthly average 1 November 2007 to 31 May 2008).
“Charging a service fee will enable Ports of Auckland to continue the management and development of the VBS and ensure consistent, fast and efficient service to VBS users,” says Mr Ward. “Likewise, transport operators and their customers will benefit from the consistent service delivery enabled by the system, thus helping hold transport costs.”
Simon Tapper, director for the Road Transport Forum New Zealand, says: “The supply chain industry, road transport in particular, is facing increasing cost pressures. The VBS and the associated service fee is the best option to help ensure reliable and cost-effective service.”
While the service fee will initially apply only to Fergusson container terminal, the system is also being introduced to Bledisloe container terminal, with an agreement to introduce the same $2.50 fee and conditions from 1 February 2009.