Innovation and digitisation in intermodal transport

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Presentation transcript:

Innovation and digitisation in intermodal transport The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen Innovation and digitisation in intermodal transport 59th session of WP 24 Geneva, 31st October 2016 Marco Leonardo SORGETTI, FIATA, Director General

FIATA 90th anniversary in Dublin FIATA was founded on 31th May 1926 in Vienna. FIATA is the largest non-governmental organisation in the field of transportation. Its influence is worldwide. FIATA has consultative status with UN/ECOSOC, ESCWA, UNECA, UNECE, UNESCAP, UNCTAD, UNCITRAL, UNDP etc. FIATA is the recognised representative body of the freight forwarding and logistics industry for intergovernmental organisations such as ICAO, ITF, OECD, WCO, WTO, World Bank, etc. & private sector, e.g. GSF, IATA, ICC, IRU, UIC, etc.

FIATA’s Global, Unique Constituency 108 Association Members in 98 countries 5600 direct Individual Members in 160 countries Largest world wide NGO in Transport and Logistics

Innovating logistics with a plan Institutes, Advisory Bodies, Working Groups WG Incoterms Airfreight Institute AFI Airfreight Institute AFI Airfreight Institute AFI Customs Affairs Insitute CAI Customs Affairs Insitute CAI Customs Affairs Insitute CAI Advisory Body Safety Security Multimodal Transport Institute MTI Advisory Body Vocational Training WG Sea WG Road WG Rail Advisory Body Information Technology WG Sustainable Logistics Advisory Body International Affairs FIATA Logistics Academy

End to End Value Chains are Changing Freight Forwarders are common users of multimodal solutions from pick up to delivery, working with carriers, using all transport modes and providing trade facilitation International Trade and Commerce is rapidly changing: “more than half of our customers today did not exist ten years ago” Disrupting elements come into play: drone deliveries, 3D printing, more parcels than crates, less efficient packing – sustainability not always in sight speed and efficiency appear to be at either end of SUSTAINABILITY …. Or not?

FWC 2016 Dublin Chronicle Speed and efficiency at either end of sustainability “half of our customers today did not exist ten years ago”

EU: stable (?) share of modes http://ec.europa.eu/eurostat/statistics-explained/index.php/Freight_transport_statistics_-_modal_split

Intermodal Challenges & Opportunity Share from Sea and Road Transport to Rail New transcontinental Rail Freight Corridors FIATA and UIC met European and Asian operators in Shenzhen in 2016 MoU with OSJD and Chinese experts in the FIATA WG Rail Harmonisation of standards Digitising Transport Documents – eCMR, FIATA e-FBL, DTLF’s mapping exercise…. UNCEFACT, a Ferrari in the garage? Infrastructure Equality Initiatives Connecting Europe Facility, ASEAN intermodal initiatives, One Road One Belt, African corridors and Trade facilitation Environmental rules put pressure on transport UNFCCC Agreement encourage states to curb freight emissions and promote intermodal solutions http://ec.europa.eu/transport/modes/rail/infrastructures/rail_freight_oriented_network_en

Sitting on the Dock, looking at the (e)Bay Majority of containers in Europe arriving to North Sea ports Average port hinterland leg only between 10 - 20% of containers by rail  long and expensive deliveries Trend: ship’s dimensions in light of sustainable, efficient services Trend: geography vs. costs, is there a balance? Inland ports – some grow at 5% per annum, is it just business model? Innovation on the high seas, greener ships, ports, slow steaming, 20000+ TEU’s – is there a breakthrough customers will want to buy? IATA/FIATA principal to principal agreement, surely not a pie in the sky, but a lot of work to do as implementation starts. http://www.joc.com/rail-intermodal/international-rail/europe/mega-ships-spur-growth-europes-intermodal-rail_20160123.html

Strong Sustainability Focus Greenhouse gas (GHG) emissions on the rise >>>>>>>>>> FIATA’s Public Statement Asks policy makers to not only focus on enacting legislation that will set GHG emissions targets BUT also to enact policy that would enable enhanced connectivity and efficient transport operations which will lead to lower GHG emissions  SMARTER INFRASTRUCTURE FOR SMARTER, MORE SUSTAINABLE SOLUTIONS Environment: Key Aspect in Every CONTEMPORARY Logistics Project Source http://www.noaa.gov/ http://fiata.com/fileadmin/user_upload/documents/Position_Papers/FIATA_Statement_-_The_Need_to_Assess_Connectivity_Measure_for_Freight_Transport.pdf

Sluggish Technology Adoption Uptake of recent ICT advances for multimodal – So Slow, Why? Fragmented Industry, with real issues Financial and resource constraints to adopting ICT, uncertainty of results and mistrust of the new Authorities prudent in mandating rules they struggle to implement due to insufficient resources Human Capital Lack of ICT Specialists entering the field of logistics Vocational and life-long learning struggling to keep pace with technology changes Varying ICT Applications based on Mode Interconnectivity between different applications a barrier Interoperability still in wish-list phase Insufficient harmonisation of standards http://www.sciencedirect.com/science/article/pii/S0925527314002837

Opportunities in Technology Cloud Computing & big data ICT systems can be hosted by a third party and logistics companies can just “plug in and play” for SaaS solutions Tailored for SME lacking of resources to host own system, but TMS’s are trying to reach out – in Dublin 2/3 of exhibitors were technology related Internet of Things, driverless vehicles, smart, connected infrastructure may come to assist with new solutions, as many LSP’s maintain research centres and re-engineer the last mile delivery Web3.0 and social networking could be applied to enable the optimisation of the distribution flow of cargo http://www.sciencedirect.com/science/article/pii/S0925527314002837

FIATA’s at Work FIATA e-FBL FIATA’s e-FBL Promoting the digitization of documents and standardization across Europe to help enhance seamless shifts between modes WG Sustainable Logistics Positions asking States to push for a standard calculation method for measuring carbon footprint Participating in UNECE’s Euro-Asian Transport Links (EATL) project removing physical and administrative bottlenecks Unifying railway law DTLF at EU level Local association members (PK, CN) engaged in eTIR and eCMR

FIATA’s conclusions Trade patterns are changing at increased speed ICT Standards are challenged by new technology but both are required to provide innovative services, legacy systems will not go away in months and probably not even in years FIATA has structure in place to assist and lead the way, but need cooperation with all stakeholders, principally with shippers on the one hand and regulators on the other There’s no business like logistics…. or without it!

Work with us, please! www.fiata.com Thank you!