The UK election 2019 - Update
The UK general election on December 12, 2019 gave a clear result in favor of the Torries. As a result, it can now be assumed that the UK will leave the European Union on January 31, 2020 on the basis of the withdrawal agreement that was negotiated on October 17, 2019.
This withdrawal agreement includes a transition period until December 31, 2020. During this period, a comprehensive trade agreement between the UK and the European Union is to be agreed. Until the expiry of this period, no material effects of the withdrawal are to be felt. Thus, according to the current status, only marginal restrictions regarding deliveries to and from the UK can be expected during the transition period.
In case of any questions, please contact your contact person of DACHSER.
The new DACHSER magazine issue 04/19 is here!
Renowned as they are for innovation and quality paired with tradition and craftsmanship, many products from Switzerland enjoy an excellent reputation worldwide. Among them Ricola cough drops, a classic sweet whose special recipe contains 13 herbs from the Swiss mountains.
New regulatory requirements for lithium batteries and cells as of January 1, 2020
Before lithium batteries and cells can be transported, they must pass certain tests. These tests simulate various conditions with regard to, for example, pressure, temperature, crushing and impact that may arise during shipping.
On January 1, 2020, more stringent requirements concerning lithium batteries and cells will come into effect for all modes of transport worldwide. In future, a test summary compliant with UN 38.3.5 must be submitted for all lithium batteries and cells manufactured after June 30, 2003 (i.e. UN3480, UN3481, UN3091, UN3090), as well as for all battery-powered vehicles manufactured after June 30, 2003 (i.e. UN 3171). Doing so will be the joint responsibility of the manufacturers and the distributors of these goods.
According to the airlines, carriers and shipping companies, these documents can be requested from DACHSER. We therefore kindly ask our customers to make these documents available to us for all the lithium batteries and cells mentioned, so that we can, in turn, make them available throughout the entire supply chain. We hereby inform our customers that, as of January 1, 2020, it will no longer be possible to load the affected goods without these documents. For further information, please click here.
The new generation of Management
The first intake of management trainees to undergo DACHSER Asia Pacific’s Management Trainee (MT) programme have graduated, with all trainees having landed permanent management roles within the company.
“I was posted offshore where everything used to reach us via ships, including food and water”
Siddhant Palkhedkar was born and brought up at Nashik, a city close to Mumbai. After successfully completing his Degree in Mechanical Engineering in 2013, he shifted to Mumbai to work with the largest oil and natural gas company in India.
While working he had an instigation to get knowhow of logistics industry. He joined DACHSER as an Asia Pacific Management Trainee in June 2019, we discussed with him to know more. Let’s see what we found out.
DACHSER and terre des hommes step up their collaboration
In their joint grassroots projects, it is patience, perseverance, and establishing local and cultural roots that prove to be the recipe for success.
IMO 2020 regulations are making ships cleaner
Commonly known as IMO 2020, the new environmental guidelines from the International Maritime Organization for global shipping traffic will take effect in January 2020. From then on, all ships on the open sea will be required to reduce their emissions of sulfur oxides by 85 per cent. This applies worldwide to all fuels used on the open sea.
IMO 2020 is an important step towards achieving a better ecological balance sheet for the industry, as international sea transportation generates about one billion metric tons of carbon dioxide each year and is responsible for 3 percent of all fine particulate matter created by human activity.
Carriers will have a number of more environmentally friendly options available to them. For example, they may choose to continue using heavy oil but also install special exhaust gas cleaning systems (scrubbers); or switch to alternative fuels such as liquefied natural gas (LNG), very low sulfur fuel (VLSF), or marine diesel oil (MDO) sein.
The relevant country’s port authority is responsible for compliance with IMO 2020 and can check this with a detector and the ship’s logs. Violators will be subject to fines, ship detention, or even imprisonment.
Being a logistics service provider, DACHSER does not operate its own ships, but works with major shipping lines. “We, too, are interested in finding the most sustainable way to handle our transports,” says Rolf Mertins, Head of Global Management Ocean at DACHSER. “At the same time, we want to offer our customers scheduling reliability.”
Based on collaboration with partner carriers, DACHSER has now developed its own fuel cost model, the DACHSER Bunker Adjustment Reference Floater (DBAF). Replacing the Standard Bunker Factor (SBF) on mid- and long-term transactions, the DBAF is calculated based on the fuel prices of all relevant trades. Mertins concludes “On this basis, we can calculate customers’ fuel-related costs irrespective of the carrier option.”
Effective December 1, 2019, there will be a Transition Environmental Fuel Fee for all Less-than-Container-Load (LCL) Freight All Kinds (FAK) businesses until further notice. The fee is in addition to any bunker charges.
For more details, please get in touch with your local DACHSER representative.
"Without the corresponding culture, no real compliance is possible"
Numerous contemporary studies and research findings confirm that the best protection against white-collar crime and corporate malfeasance is a compliance approach based on values – such as responsibility, integrity, trust, and honesty – just like the one that DACHSER has been pursuing already for ten years.
DACHSER Air & Sea Logistics certified for pharmaceutical shipments on three continents
Atlanta becomes the next DACHSER branch to receive CEIV Pharma certification from IATA.
Following Frankfurt, Mumbai, and Hyderabad, Atlanta is now DACHSER’s fourth location to receive certification in ten months, further expanding the company’s network services for its customers in the life science and healthcare sector.
Delay of Brexit - What is still to be considered?
As is known, early general elections for the House of Commons are scheduled for December 12, 2019 in the UK. The EU has also agreed to extend the Brexit deadline to 31 January 2020. The danger of a no deal Brexit is thus averted for the time being. If an agreement on the negotiated contract is reached before 31.01.2020, the agreed transitional period will initially remain in force until 31.12.2020.
Regardless of whether it is a "soft" or a "hard" Brexit, a customs authority of the respective recipient is essential for the processing of shipments to and from the UK. Therefore, we ask our customers to continue to advise their recipients to provide us with the necessary customs authority.
We will keep you up informed about further developments.
DACHSER Thailand well prepared for the ASEAN-China Free Trade Area
Since the upgraded ASEAN-China Free Trade Area (FTA) went into effect in August, there have been some changes in the customs clearance regulations in Thailand. The changes have been put in place to facilitate trade between the ASEAN country and China. These changes also include a simplified and digitalized process which has had a positive impact on cargo arrival. The upgrade also means a reduction in tax for certain commodities.
DACHSER wins the 2019 IMD Global Family Business Award
IMD recognized DACHSER for robust corporate and family governance structures combined with operational excellence and a focus on quality.
IMD Business School, a top-ranked global business school headquartered in Lausanne, Switzerland, awarded DACHSER with the renowned IMD Global Family Business Award. On behalf of the company and the founding family, Bernhard Simon, CEO of DACHSER, and Birgit Kastner-Simon, Corporate Director Corporate Marketing, accepted the award at the 30th Summit of the Family Business Network International (FBN-I) in Udaipur, India.
Incoterms 2020 updates
A new version of the Incoterms will take effect on January 1, 2020, and will include a number of changes. The terms of delivery issued by the International Chamber of Commerce regulate essential buyer and seller obligations in international trade, such as transfer of goods to the buyer, transport costs, liability for loss of and damage to goods, and insurance costs.
With the adaptation of the Incoterms 2020 to current global trading practices, the new version is very up-to-date and practice oriented. The aim of the revision was to make the Incoterms clauses more user-friendly. For example, their presentation has been revised to make it easier for users to select the appropriate clause. In addition, the order of the clauses has been changed, and revised user instructions have been added to each clause.
In terms of contents, significant changes have been made to the Intercoms 2010, in particular the following:
- Different coverage levels in CIF and CIP: As in the past, the seller is still obliged in the Incoterms 2020 to take out transport insurance at their own expense in clauses CIF (Cost Insurance Freight) and CIP (Carriage Insurance Paid). In contrast to the Incoterms 2010, however, the two clauses now provide for different minimum coverages. The minimum coverage to be observed when the CIF clause has been agreed remains unchanged. The transport insurance to be taken out by the seller must continue to at least correspond to the coverage in accordance with the (C) clauses of the Institute Cargo Clauses or similar clauses (insurance of named risks). If the CIP clause is agreed, the seller must now provide insurance coverage in accordance with the (A) clauses of the Institute Cargo Clauses (all-risk coverage). Both the CIF clause and the CIP clause allow the parties to the contract to agree on insurance coverage that differs from this.
- Inclusion of security-related requirements: Security-related requirements for the transport of goods have now been included in Rules A 4 and A 7 of each Incoterms 2020 clause. As with other the Incoterms clauses, it should be noted that the Incoterms clauses only directly apply to the parties to the sales contract and are not the subject of the contract of carriage.
- The Incoterms 2020 contain regulations for transporting with one’s own means of transport in FCA, Delivery at Place (DAP), Delivery at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
- For goods sold under the FCA (Free Carrier) clause and intended for sea transport (such as goods in containers), FCA is stipulating a new option in the future. The buyer and seller may agree that the buyer shall instruct its freight carrier to issue an on-board bill of lading to the seller after the goods have been loaded. At the same time, the seller is obliged to hand over this on-board bill of lading to the buyer. This is typically done through participating banks.
- Renaming of DAT to DPU (Delivered at Place Unloaded). According to the Incoterms 2010 DAT clause, the seller delivered the goods as soon as they were unloaded from the means of transport at a “terminal.” However, according to the Incoterms 2010 application notes, the term “terminal” was not to be understood from a technical point of view but meant any unloading location. This fact was taken into account in the Incoterms 2020 by renaming the previous DAT clause to DPU (Delivered at Place Unloaded) for the sake of clarity. That means that in the future, any (agreed) place can be the place of destination.
- The Incoterms apply between the parties of a (national or international) sales contract and address – but are not limited to – special rights and obligations within this contractual relationship. On the basis of a uniform definition guaranteed in this way, subsequent problems of interpretation or discrepancies between the parties to the sales contract are to be avoided. It should be noted that the Incoterms, due to their character as GT&C-like provisions, do not constitute statutory provisions and thus only become legally binding if they have been effectively agreed between the parties to the sales contract by means of a corresponding reference (for the Incoterms 2020, this is also possible before 1/1/2020). Irrespective of this, in individual cases conflicting statutory provisions still take precedence over an Incoterm clause.
The Incoterms were revised by 500 experts from more than 40 countries.The clauses are recognized worldwide and are in use in more than 30 different languages.
Hard Brexit: Important measures beforehand
Even though there are some movements in the negotiations between EU and UK, still the “No deal” Brexit at the October 31st, 2019 cannot be excluded.
The consequences of a withdrawal without a deal on 31st October, especially for the movement of goods to and from the UK, are well known. First and foremost, longer waiting times would be expected due to border controls and customs clearance of all goods in accordance with WTO rules.
DACHSER will take appropriate measures to ensure that all goods arriving/leaving the UK after 23.00 GMT (00.00 CET) on 31st October are cleared and taxed accordingly.
With this letter we would like to summarize again the most important points and measures to keep the effects and delays in delivery for our customers as low as possible.
In case of Hard Brexit, the following information and documents must be available for customs clearance before the goods are collected:
- Consignment note
- Commercial invoice / pro forma invoice
- Packing list / delivery note
- Export accompanying document (can be issued by us if necessary)
- Preference documents and other product-specific documents, only if possible and required
Please make sure that these documents contain the following information: Sender with EORI number, recipient with contact details, importer if different to recipient with contact details, sequential invoice number, Incoterms, number and type of packages, description of goods, country of origin, Taric code, value of goods, currency, gross/net weight.
Please pay attention to a high data quality of the information - the documents must fit definitely to the respective physical transmission.
If the documents are made available to us in electronic form, they should correspond to a resolution of 300dpi if possible.
In addition, we need the contact person for customs including the contact details of your consignee/importer (e-mail address) so that we can contact them in order to obtain the necessary customs power of attorney. We need these in order to be able to carry out the necessary customs clearance. Without the power of attorney we can not do the customs clearance.
Please do also note, that we also will need more detailed shipment information like number and type of packages, description of goods, value of the goods, if you have got shipments to Ireland via UK territory, as we will have to issue a transit procedure through UK. For the beginning we also recommend that you add a T2L to those shipments as we are not yet sure, if Ireland customs will accept T2 as a proof for goods in free circulation of EU after transit via UK.
Within our eLogistics application the possible incoterms will be changed due to the customs. At the beginning only FCA/EXW or DAP are possible in eLogisitcs in order to ensure the process. Also the EDI information regarding the incoterms have to be adapted, the responsible person from your branch will contact you in order to align the necessary changes.
We ask for your understanding and cooperation so that DACHSER can make your flow of goods as efficient and trouble-free as possible in this exceptional case of hard Brexit.
The most important measures for preparation we have stated additionally in our Brexit checklist.
Please do not hesitate to contact your DACHSER branch if you have any further questions.
The new DACHSER magazine is here!
DACHSER’s European overland transport network has expanded over the years. The secret has always been putting the right pieces of the puzzle in the right places to complete the overall picture.
Singapore: Launch pad into Asia
Singapore is one of the busiest and most important logistics hubs in the world. Its advantageous location and long tradition of economic and political stability make the city-state the ideal starting point for international companies to develop business in the prospering markets of Asia Pacific.