We think online
is the way to go for
training. It’s faster and
more effective
Brandon Fried, Executive Director,
US Airforwarders Association
report, which predicts more
compliance pressure ahead.
This is especially so in
highly regulated sectors, like
pharmaceuticals, where wider
public awareness of quality
issues and stricter enforcement
by regulators is likely to turn
up the heat on compliance
and quality control, its authors
state. Arguably, security has
made the deepest impact.
“One of the biggest issues is
security programmes,” admits
Imbriani. Team Worldwide
has a compliance department
at headquarters level, and its
primary focus has been on
security. The rising number of
incidents involving lithium
batteries has put compliance
with hazardous materials rules
and requirements under the
spotlight. Fried points to two
incidents that occurred in July
and August this year, both of
which have been traced back
to lithium battery issues.
“This has made it clear that
we need to be vigilant of the
threat that lithium batteries
pose,” says Fried. “We need to
look collectively at hazmat,
specifi cally lithium batteries.”
He notes that ultimately
shippers are responsible
for proper declaration and
packaging of hazardous goods,
“but that doesn’t mean we
can’t be part of the solution,”
he adds.
To a considerable extent
the lithium battery challenge
has been driven by the rise of
e-commerce. Here, the deluge
of parcels is moving the goal
posts.
“E-commerce has defi nitely
changed the business to a
large degree,” confi rms Joe
Lawrence, President of GSSA
Airline Services International.
“Companies give you
boxes or bags with a mix of
commodities. Having to screen
these is not easy. Some of the
warehouses have to break
down skids and pallets.”
“The government is
struggling with how to control
and monitor e-commerce,”
chips in Imbriani.
Besides hazardous materials
like lithium batteries,
e-commerce has also come
into the crosshairs of law
enforcement agencies as a
conduit for the dissemination
of illegal drugs and
counterfeit goods. The US
government has repeatedly
warned about opioids being
shipped as e-commerce. Its
biggest concern is mail, but
e-commerce carried by parcel
companies or in consolidations
is also on the radar.
The question of liability
As with lithium batteries,
liability rests on the
shoulders of the shipper, but
authorities are looking to the
transportation sector to play
a part in its efforts to fi ght
this traffi c. The US Customs
& Border Protection agency
regards advance fi ling of
shipment information as one
critical tool to identify and
intercept such shipments.
The fl ow of data itself has
emerged as another area of
concern for compliance. One
catalyst there has been the
tightening of data security
legislation in the European
Union. Stephan Haltmayer,
CEO of Quick Cargo Service,
says that he had to designate
one person in his company to
look after data security. “That’s
a full-time job,” he adds.
And then there is cyber
security. As companies
move to exploit the tracking
possibilities of emerging
technologies like IoT and strive
for enhanced connectivity,
the danger of crooks and
malware fi nding access to a
host of connected companies
is elevating the risk for
transportation fi rms.
“A big aspect of security
is cyber security,” agrees
Imbriani. “We do have an
entire security protocol for our
IT department.”
Hardening positions against
liberalisation of trade have
added to the compliance battle
of forwarders. Compliance
with export and import
regulations has become more
prominent. “The government
is focusing more on these,”
says Imbriani. “There is talk
of making the forwarder
more responsible for licensing
issues.”
Mistakes are already a lot
costlier than they used to
be. Saphir notes that fi nes
for violations of import or
export clearance rules usually
amounted to a few hundred
dollars in the past but now
they are at a level where the
pain is tangible. The penalty
for a violation in fi ling
through the CBP’s Automated
Export System has gone up
from previously US$500 to
US$10,000.
Tariff implementation
The implementation of tariffs
is complicating matters
further. “Tariffs are really
having an impact on brokers.
There is also the matter of
sureties. They have to make
sure the bond is right,”
remarks Fried. “Forwarders
should be discussing the
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