1. SHIPPERS’ AND FORWARDERS’ DEMANDS, one year after.... 8TH IRU TRANSEURO ROAD TRANSPORT CONFERENCE Tallin, May 18th – 21st 2005 Marco L. Sorgetti: sorgetti@clecat.org

2. CONTENTS Clecat & Fiata essentials Clecat & Fiata essentials Fiata and Clecat roles Fiata and Clecat roles Expectations of our sector Expectations of our sector SC engineering: a Customer driven mission in partnership SC engineering: a Customer driven mission in partnership Conclusions Conclusions

3. WHAT IS CLECAT A 2002 Belgian Law Aisbl, FOUNDED IN 1958 A 2002 Belgian Law Aisbl, FOUNDED IN 1958 Members are NATIONAL FEDERATIONS Members are NATIONAL FEDERATIONS –Freight Forwarders –Transport service providers –Logistic providers –Customs Agents COMPANIES COMPANIES –Global players –SME –Family businesses Clecat is the permanent representation of Fiata in Brussels Clecat is the permanent representation of Fiata in Brussels  CLECAT’s CORE BUSINESS is EU LEGISLATION in progress

4. CLECAT POWERS 25 European National Federations 25 European National Federations –Founding member states, –I, II, III process of enlargement and beyond (BG, RO, TR, UKR) REPRESENTATION for over 19,000 companies and businesses REPRESENTATION for over 19,000 companies and businesses Over 1 million workforce are directly represented by Clecat Over 1 million workforce are directly represented by Clecat

5. FIATA was founded in Vienna/Austria on May 31, 1926 by 16 founding Members. FIATA has consultative status with ECOSOC, UNCTAD, UNCITRAL and UN/ESCAP and cooperates with a number of other international NGO’s FIATA has –95 National Association members in 86 different countries –over 4600 Individual Members in 150 different countries.  FIATA IS THE UNIVERSAL VOICE OF FREIGHT FORWARDERS, i.e.:  ONE OF THE MOST IMPORTANT WORLDWIDE ORGANISATIONS IN LOGISTICS FIATA The International Federation of Freight Forwarders Associations Fédération Internationale des Associations de Transitaires et Assimilés Internationale Föderation der Spediteurorganisationen

6.  FWR (FIATA Warehouse Receipt)  FBL (negotiable FIATA Multimodal Transport Bill of Lading)  FWB (non-negotiable FIATA Multimodal Transport Waybill)  FCR (Fiata Forwarders Certificate of Receipt) FIATA documents

7. Last year’s Freight Forwarders’ Day (Brussels Dec 2 nd ) initiated a dialogue to draw the new picture of the SC, concluding that Last year’s Freight Forwarders’ Day (Brussels Dec 2 nd ) initiated a dialogue to draw the new picture of the SC, concluding that –Traders need measurable advantages to balance additional burdens in procedures with measurable benefits in performance –Clecat must claim a focal role for its Members as trade facilitators, enabling enhanced performance for clients and service providers alike EXPECTATIONS AND CHALLENGES as service providers

8. QUESTIONS FF’s INVESTIGATED: QUESTIONS FF’s INVESTIGATED: –Has demand grown for road transport-based logistics in quantity or quality? –Have hauliers and road transport logistics providers been able to meet shippers'/customers' changing qualitative & quantitative requirements? –What is more important: the freight rate or quality (rapidity, security, no damage...)? –Is there a real demand for value-added complex services? CHALLENGES AND EXPECTATIONS when working as partners

9. Has demand grown for road transport-based logistics in quantity or quality?  Increase in both quantity and quality  Quantity: impact of EU Enlargement Foreign exchange volumes (+300% figure), CZ For road transport volumes (30% – 40%), D  Quality From an administrative perspective, elimination of waiting time at borders Shippers are being more and more demanding, in particular as regards delivery time Quality could be improved if we had: - Better and more adequate infrastructure (congestion problem) - Better co-operation with shippers on one side and carriers on the other

10. Hauliers’ and road transport logistics providers’ ability to meet customers' changing requirements  Requirements generally met for quantities  As for quality of services, less successfully, some examples: UK: Extremely hard to find hauliers offering other than same hit and miss-type services. Need specialists for regions and commodity (e.g. pharmaceuticals) to be successful. UK: Extremely hard to find hauliers offering other than same hit and miss-type services. Need specialists for regions and commodity (e.g. pharmaceuticals) to be successful. Belgium: Delivery by 08.00 am not always necessary. Routine demands not always justified. Belgium: Delivery by 08.00 am not always necessary. Routine demands not always justified. JIT not always possible, due to the congestion problems in Europe. JIT not always possible, due to the congestion problems in Europe. 1 in 9 EU deliveries goes wrong because of congestion (FIATA) 1 in 9 EU deliveries goes wrong because of congestion (FIATA) The example of the German logistic market: 150 billion € The example of the German logistic market: 150 billion € –45% is in the hands of service providers –Transport, transhipment and storage counts for 65% of volumes –share of the GNP is 7,4%  among most important D industries

11. QUALITY (rapidity, security, no damages...) or LOW RATES?  Freight forwarders’ service (& challenge) consists in delivering the highest quality at the lowest price.  However… Shippers should understand both elements are interlinked – cannot rescind them Freight rates may impact on the overall cost of the final product, but logistic costs are often overestimated.  FF & carriers partnership = solution

12. Is there a real demand for value-added complex services?  Still a rather limited percentage, there is a real demand, usually coming from big shippers, and growing, therefore:  carriers may wish to offer a wider range of services than transport only  FF & carriers may work at common projects in partnership  New MS’s carriers may wish to brush up their transport service to meet more demanding standards  Adopt common best practices, share knowledge and pull barriers down!

13. CONCLUSIONS Fiata & Clecat represent full range of services, have numbers, influence and solid tradition Fiata & Clecat represent full range of services, have numbers, influence and solid tradition Fiata & Clecat are in active dialogue with all institutions, EU and worldwide Fiata & Clecat are in active dialogue with all institutions, EU and worldwide Fiata & Clecat are ideal brokers of information in all Trade Facilitation issues Fiata & Clecat are ideal brokers of information in all Trade Facilitation issues –With technical expertise, professional qualification and adequate investments Fiata & Clecat Members can be ideal “facilitators” and partners for carriers and shippers alike.

14. Thank you!